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of the
A meeting of the Federal Reserve Board was held in the office
a.m.
Federal Reserve Board on Monday, December 2, 1929 at 11:30
PRESENT:
Governor Young
Mr. Platt
Mx. Hamlin
Mr. James
Mr. Cunninham
Mr. McClelland, Asst. Secretary
November
The minutes of the meeting of the Federal Reserve Board held on
26th were read and approved.
ation of The
Matter approved on initials on November 29th, namely, applic
fid-lciary powers,
Genesee River National Bank of Mt. Morris, N. Y., for general
m State Bank of Mt.
effective if and when it is consolidated with the Bingha
Comptroller of the
llorris, with a capital of .100,000,and is authorized by the
National Bank and Trust
Currency to commence business as the Genesee River
Company of Mt. Morris.
Formally approved.
for the meeting
The Governor then stated that special order of business
ors of Fednext Monday, December 9th, will be the appointment of Class C Direct
and the desigeral Reserve banks and directors of branch Federal Reserve banks
nation of Chairmen and Deputy Chairmen for the year 1930.
He requested that the
with the Secretary before
recommendations of the District Committees be filed
that date.
of the Federal Reserve
Telegram dated November 26th from the Chairman
on November 25th of the
Bank of San Francisco, advising of the establishment
of bankers acceptances:
following schedule of rates for purchases
1 to 120 days
121 to 180 days
Repurchase
4(';
4l/2
42;
Without objection, noted with
approval.
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Letter dated November 27th from the Secretary of the Federal Reserve
Bank of New York, advising that the board of directors at a meeting on that
date made no change in the bank's existing schedule of rates of discount and
purchase.
Without objection, noted with approval.
Letter dated November 27th from the Deputy Governor of the Federal
Reserve Bank of New York, advising of operations in the open market during
the week ending November 27th and of conditions in the bill and securities
markets; the letter stating that the holdings in the open market investment
account and the New Yoxk bank's portfolio remain unchanged.
Noted.
Report of Executive Committee on letter dated November 30th from
the Comptroller of the Currency, recommending approval of a salary of
4,000
per annum for National Bank Examiner Robert S. Beatty, assigned to the Seventh
Federal Reserve District; the Board's Committee also recommending approval.
Approved.
Report of Committee on Salaries and Expenditures on letter dated
November 25th from the Governor of the Federal Reserve Bank of Kansas City,
requesting approval of a subscription of (A,000 to the credit protection
fund of the National Association of Credit lien, authorized by the directors
Of
the bank subject to the Board's approval; the Board's Committee recommend-
ing approval.
Approved.
Report of Committee an Salaries and Expenditures on list submitted
7
12/2/29
by the Federal Reserve Bank of New York of employees for whom the directors
Of that bank authorized leaves of absence with pay, on account of illness,
during the month of October, where the total of such absences since January
19 1929, has exceeded thirty days; the Board's Committee recommending approval
of the salary payments involved.
Approved.
Report of Committee on Examinations on letter dated November 26th from
the Federal Reserve Agent at Richmond, recommending approval of an application
Of the new Baltimore Trust Company, Baltimore, Md., for permission to accept
drafts and bills of exchange drawn upon it up to 10070 of its paid-up and unimpaired capital and surplus; the Board's Committee also recommending approval.
Approved.
Telegram dated November 29th from the Governor of the Federal Reserve
Bank of Minneapolis, inquiring whether the Board feels as it did a year ago
aS to the advisability of Governors of the Federal Reserve banks giving out
forecasts for 1930 for publication.
In this connection, the Vice Governor
reported a similar inquiry made of him over the telephone by Governor Norris
Of
the Federal Reserve Bank of Philadelphia.
Upon motion, it was voted to advise the Federal
Reserve banks that the Board still entertains the
view set out in its letter of December 10, 1928
(X-6194) on the subject "Articles for end of the
year publications".
Telegram dated November 30th from the Chairman of the Federal Reserve
Bank of Richmond, advising of the reelection of Mr, L.E. Johnson as Class
4 Director of the Bank, and Mr. D. R. Coker as Class B Director, both for
12/2/29
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S
.
terms of three years beginning January 1, 1930.
Noted;
Telegram dated November 30th from the Chairman of the Federal Reserve
Biank of Chicago, advising of the election of Mr. George J. Schaller as Class
A Director of the bank and Mr. Robert M. Feustel as Class B Director, both
for terms of three years beginning January 1, 1930.
Noted.
Telegram dated November 30th from the Secretary of the Federal Reserve
Bank of Minneapolis, advising of the reelection of Mr. J. C. Bassett as Class
A Director of the Bank and Mr. N. B. Holter as Class B Director, both for
terms of three years beginning January 1, 1930.
Noted.
Memorandum dated November 30th from the Board's Chief Examiner on the
matter referred to him at the meeting of the Board on March 13, 1928, namely,
the question of examining member banks operating numerous branches by simultaneous entrance at the head office and all branches; the memorandum stating
that the question was discussed in detail with the officials at the Federal
.Reserve Bank of San Francisco and it was the consensus of opinion that such
a procedure •is not practicable when the branch system has been expanded to a
Point that would require the services of a very large number of men, since
the concentration of a very large number of qualified men would entail an alMost prohibitive expense for transportation, subsistence and salaries and,
aside from the cost, it would be a very difficult problem to secure the reclilired number of men sufficiently qualified to conduct an examination of a
type that would fully justify the very heavy expense involved.
I
12/2/29
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After brief discussion, the memorandum was noted
and action was deferred.
Memorandum dated November 30th from the Chief Examiner, submitting report of
an examination of the Shawmut Corporation of Boston, Massachusetts, made as
at the close of business February 21, 1929.
Referred to the Committee on Examinations.
Memorandum dated November 30th from the Chief Examiner, submitting report
Of examination of the Federal Reserve Bank of Dallas and its branches, made
as at the close of business March 6, 1929.
Referred to the Committee on Examinations and
Committee on District #11.
Memorandum
dated November 30th from the Chief Examiner, submitting report
Of examination of the Federal Reserve Bank of St. Louis and its branches, made
as at the close of business March 23, 1929.
Referred to the Committee on Examinations and
Committee on District it8.
Memorandum dated November 18th from Counsel, with reference to questions
regarding acceptances raised by Roosevelt & O'Connor, attorneys of New York
City, in connection with financing which the proposed Federal International
Banking Company 'expects to undertake upon completion of its organization under
Section 25 (a) of the Federal Reserve Act; Counsel submitting draft of a letter
to Roosevelt & O'Connor, suggesting that they consult with Deputy Governor Kenzel
Of the Federal Reserve Bank of New York on the questions they have in mind and a
letter to Mr. Kenzel requesting him to furnish the Board, after conferring with
Roosevelt and O'Connor, with a statement on the questions presented and an ex131'eesi0n of his views relative thereto.
1
12/2/29
Upon motion, the letters submitted by Counsel
were approved.
Memorandum from Counsel dated November 26th submitting, in accordance with
the action of the Board at its meeting on November 22nd, drafts of letters to
the Chairmen of the Banking and Currency Committees of the Senate and House of
Representatives recommending amendments to the Federal Reserve Act which would
Permit the cancellation of Federal Reserve bank stock held by member banks
Which have gone out of business without a receiver or liquidating agent having been appointed.
Upon motion, the letters submitted by Counsel
were approved.
Latter ordered circulated at the meeting on November 21st, namely, memorandum from Counsel dated November 8th with reference to the proposed cancellation of the agreement entered into with the Board, under the provisions of
Section 25 of the Federal Reserve Act, by the First National Corporation of
Boston; Counsel submitting draft of a letter to the Corporation advising that
the Board will cancel the agreement if the board of directors of the Corporation
will adopt a form of resolution submitted and file a certified copy of such
resolution with the Board.
Upon motion, the latter to the First National
Corporation, submitted with Counsel's memorandum,
was approved.
22,2g1T3
OF STANDING COYMITTEES:
Dated, November 27th,
December 2nd,
Dated, November 27th,
Recommending changes in stock at Federal Reserve Banks
as set forth in the Auxiliary Minute Book of this date.
Recommendations approved.
Recommending action on an application for almission of
a state bank, subject to the conditions stated in the
individual report attached to the application, as set
forth in the Auxiliary Minute Book of this date.
Recommendation arproved.
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.3gORTS OF STAnDING COM1ITTEES: (Cont,d)
Dated, November 25th,
Dated, November 25th,
Dated, November 25th,
Dated, November 25th,
Dated, November 25th,
Dated, November 26th,
Dated, November 26th,
Recommending approval of the application of Mr. Henry J.
Dew, for p3nnission to serve at the same time as director
of the Florida National Bank of Jacksonville, Fla.and as
director of the Florida National Bank at Lakeland, Fla.
Approved.
Recommending approval of the application of Mr. W. O.
Boozer, for permission to serve at the same time as officer
of The Atlantic National Bank of Jacksonville, Fla., as
director of the Palatka Atlantic National Bank of Palatka,
Fla., and as director of the :lest Palm Beach Atlantic
National Bank of Jest Palm Beach, Fla.
Approved.
Recommending approval of the application of Mr. J. S.
Moss, Jr., for permission to serve at the same time as
officer of the First National Bank of :iami, Fla., and
as director of the West Palm Beach Atlantic National
Bank of Jest Palm Beach, Fla.
Approved.
Recommending approval of the application of Mr. Willard
Hamilton for permission to serve at the same time an
director and officer of the Florida National Bank at
Lakeland, Fla. and as director of the Florida National
Bank of Jacksonville, Fla.
Approved.
Recommending approval of the application of Mr. F. B.
Childress, for permission to serve at the same time as
officer of the Atlantic National Bank of Jacksonville,
Fla., and as director of the Jest Palm Beach Atlantic
National Bank of West Palm Beach, Fla.
Approved.
Recommending approval of the application of Mr. Graham
Coventry,for permission to serve at the same time as
director and officer of the Utica Trust and Deposit
Company of Utica, N. Y., and as director of the First
National Bank of Trenton at Barneveld, N. Y.
Approved.
Recommending approval of the application of "Ir. Hillsman
Taylor, for permission to serve at the same time as
director of the First National Bank in St. Louis, Mo.,
as director of the Union Planters National Bank & Trust
Company of Memphis, Tenn., and as director of the HolstonUnion National Bank of Knoxville, Tenn.
Approved.
The meeting/djourned at 12:
APProved:
Assistant Secretary.
Governor.
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