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43 A meeting of the Executive Committee of the Federal Reserve Board waS held in the office of the Federal Reserve Board on Monday, December 14, 1931, at 11:45 a. m. PRESENT: Governor Meyer Mr. Miller Mr. Tames Mr. Magee Mr. Morrill, Secretary Kr. McClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. The following matters were considered and acted upon by the Committee: Telegram dated December 11 from the Secretary of the Federal Reserve 8811k of Atlanta, advising that the board of directors, at its meeting on that date, made no change in the bank's existing schedule of rates of di scount and purchase. Without objection, noted with approval. Report of Committee on Salaries and Expenditures on a list subMitted by the Federal Reserve Bank of Kansas City of employees for whom the directors authorized leaves of absence with pay on account of illness during the Month of November, where the total of such absences since January 1, 1931, has exceeded thirty days; the Board's Committee recommending approval °t the salary payments involved. Approved. Report of Committee on Salaries and Expenditures on a letter dated 1)"eirlher 8 from the Chairman of the Federal Reserve Bank of Kansas City, l'egliesting approval by the Board of the payment of full salary during a of absence for the months of December 1931 and January 1932, granted bY the or Executive Committee of the bank to Mr. D. C. Meigs, clerk in charge the discount department of the Denver branch; the Board's Committee NCOMMend ng approval• Approved. ,14c.4 12/14/31 -2- Telegraphic reply to letter dated December 7 from the Federal Reserve Agent at San 2rancisco in which he referred to the Board's telegram of bece,A. .-auer 5 advising that the Board has no objection to an amendment to the 48 of the Portland and Seattle branches so as to eliminate therefrom the l*ecillireraent that at least one director appointed by the Federal Reserve bank, r()r the tern coniencing January 1, 1032, shall reside outside of the branch itY, and Inquired whether the Board would have any objection to a similar ellament to the by-laws of the other branches of the bank so as to make then 4hiro rm; the reply stating that the Board's telegram contemllated only a te 111'-9ca'arY amendnent to the by-laws of the Portland and Seattle branches and thai., " 4fle Board feels it would not be desirable to consider similar amendments to t'lle bY-laws of the other branches unless and until a situation arises that 14kez such action necessary. Upon motion, the reply was approved. Letter dated December 1 from the federal Reserve Agent at Dallas re13(41ing that the City Eational 3ank, Wichita Falls, Texas, has been continuously lent in its reserves during the period May 10 to November is, 1031, that ` L8 reached the conclusion that the deficiency is due either to managerial leiency or some unusual internal condition which has not yet been fully 1R A -e,A, and recommending that the bank be notified by the Comptroller of the C4rrency that unless its reserves be promptly restored to legal recluirements, it 'i11 he placed upon his special list for frequent examination. Upon notion, draft of letter to the Comptroller of the Currency, requesting that he write the bank in accordance with the federal Reserve Agent's reconmendation was approved. approved by five members of the Board on December 12, to letter W14/31 -3- clated iTovember 16 from Congressman Louis T. Ic7adden with further reference to his letter of October 28, 1931, in which he requested a list of syndicate accentance credits amounting to over one million dollars apiece which have been ' IeDcrted to the Board since February, 1018; the reply stating that during a Peri°d of two or three years following February, 1913, the Federal Reserve Board 1184 called upon in several cases to pass upon questions as to whether acceptof menber banks drawn under syndicate credits extending over a period of crie Year or more would be eligible for rediscount or purchase by Federal 11"erve banks, that with the exception of the facts submitted in connection 1144 such cases the Board's records do not contain information regarding LIIIclicate acceptance credits of this kind, and that the Board is, therefore, Unable to furnish the list requested; that the data received by the Federal ReBoard in connection with questions as to the eligibility of acceptances 1)elltains to individual transactions of particular member banks and, therefore, 148 confidential information submitted to the Board for its consideration in the performance of its official duties, and that in the circumstances the 1°41 'cl regrets that it is unable to comply with his request. Upon motion, the letter was approved. Reply to letter dated December 7 from the jhair-lan of the Federal lioaerve Bof Kansas City requesting advice of the Board's action with re- to tuu resolutions adopted by the Board of Directors of the bank on Seatember 7 the reply stAting that the Federal Reserve Board is in agreement With the Position taken by the Governors of the Federal Reserve banks at the of their rocelit conference, that, from the point of view of the System Eta 1711°10: it would be desirable that all Federal Reserve banks, at least for tile , . 00- 111,7);, continuo to pay the regular dividends and defer any general 4-10 IRA1/31 -4- tIltailment of services to meMber banks or flat reductions of salaries; that tilia does not mean, however, that economies and adjustments should not be ettacted in individual cases wherever it is possible to do so in the interest "efficient operation of the Federal Reserve banks, and that the Board will elPeot that such matters will continue to receive the close and constant Itt tention of the directors and officers. Upon motion, the letter was approved. Reports of Standing Committee dated December 14, recommending approval °t the following changes in stock at Federal Reserve banks: • A T1,_1 .i?ations for SURRENDER of Stock: 1414 . 9.1.119,"! ' 4 illand National Bank, Ashland, Ky. (Insolvent) Shares 600 600 st • elarity National Bank, Grand Rapids, Liich. (V.L.Abs. bY American Home Security Bank) 450 450 No. 9. zetional Bank, Fairmont, Lain. (V.L.Abs. by Fairmont National Bank of Fairmont) 36 36 bis triet No. 10. iii71-17 ii1O-nal Bank, Alliance, Nebr. (Insolvent) ' ' 4" 14 National Bank, Ord, Nebr. (V.L.Suc. by First National Bank in Ord, Nebr.) !P rqo. 11. liat • "tl'et national Bank, Turkey, Texas. (Insolvent) 105 90 195 18 18 4 1 ( 3trict 12. rican National Bank, Aberdeen, Wash. (V.L.Abs. ?tr bY First National Bank in Aberdeen) 8t National Bank, Port Townsend, Wash. (V.L.Abs. bY First American National Bank of Port Townsend) Approved. 300 60 Total 360 1,659 12/14/31 1 Report of Standing Corraittoe dated Decerber 14, recoramendin( that ktion be deferred on an application for fiduciary powers by the following buit: al.9.11!" 7. First National Bank in Sioux City, Iowa. Held. The meeting adjourned at 12:25 p.m. _ ecre t 101qtyed
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