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427 A meeting of the Federal Reserve Board was held in the office of the Federal aeserve Board on Friday, December 28, 1928 at 11:15 a.m. PRESENT: Governor Young Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Pole Yr. Eddy, Secretary Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on December 27th were read and approved. The Governor referred to the inquiry mentioned in the above minutes as to the Present status of the Joint Congressional Resolution introduced at the last session in Congress which would authorize an expenditure by the Federal Reserve Bank of San Prancisco for the erection of a building to house the Los Angeles Branch. He stat- e that he was informed by the Chairman of the Committee on Banking and Currency °f the House that it would be impossible to do anything toward reporiing out the resolution until the first of the year and that it is understood that the Chairman will advise him when the matter is coming up in order that he may communicate with the Federal Reserve Bank of San Francisco and arrange for a representative of that bank to come to Washington. Letter dated December 27th from the Secretary of the Federal Reserve Bank Of 1Tew York, advising that the board of directors at a meeting on that date made 40 change in the bank's existing schedule of rates of discount and purchase. Without objection, noted with approval. Report of Executive Committee on memorandum dated December 27th from the Comptroller of the Currency, recommending approval of an application of the First Nation 1 Bank of JaCiksboro, Texas for permission to reduce its capital from 4150,000 to 428 12/28/26 -2_ y4vv,000 on condition that no money be returned to the shareholders, but that assets to the amount of the reduction be withdrawn and trusteed for the benefit Of the shareholders; the Comptroller also advising that simultaneously with the reduction in capital the bank will reduce its surplus from ,i;50,000 to .--ii;25,000 bY the declaration of a dividend payable in assets. Upon recommendation of the Executive Committee, the reduction in capital was approved subject to the condition recommended by the Comptroller. The Governor then referred to the matter ordered circulated at the meeting Oh December 3rd, namely, letter dated November 27th from the President of the First National Bank of Miami,. Fla., with reference to continuance of the revolving currency fund at that bank which expires January 1, 1929. He presented a let- ter dated December 24th from the Federal Reserve Agent at Atlanta transmitting a resolution adopted by the Executive Committee of the bank that the fund be extended for a period of six months from January 1, 1929, without the designation °fT.iami as a reserve city, as suggested by the Board at the time the fund was last extended on August 16, 1928. The Governor stated that, in his opinion, 40 emergency exists at the present justifying continuance of the revolving fund after January 1, 1929, and he submitted drafts of letters to the President of the First National Bank of Miami and to the Chairman of the Federal Reserve Balk Of Atlanta advising that the fund should be discontinued as soon as practicable after that date. After discussion, during which it was the consensus of opinion that the Federal Reserve Bank of Atlanta and the member bank should be given a reasonable length of time in which to make arrangements for discontinuance of the fund, it was upon motion voted that the revolving currency fund at Liami be discontinued as of January 15, 1929. 429 12/28/28 It was also voted to amend and transmit the letters to the President of the First National Bank of Miami and the Federal Reserve Bank of Atlanta submitted by the Governor. The Governor then referred to the tentative committee assignments, effective January 1, 1929, made by him following discussion with members of the Board at the meeting on December 21st. He read the revised list of committees for the information of Messrs. Miller and Pole who were not present at the meeting. Upon being advised by these members that the proposed committee assignments are satisfactory to them, the Governpr formally appointed the following committees, effective January 1, 1929 and until further notice: LAW: Mr. Hamlin, Chairman Mr. Platt EX/0.1INAT IONS: Mr. Platt, Chairman Mr. Cunningham RESEARCH AND STATISTICS: Mr. Miller, Chairman Mr. Cunningham SALARIES AND EXPENDITUEES OF FEDERAL ztESEHVE BANKS: Yr. James, Chairman Mr. Platt DIST,L1ICT COMV.I72EES: Boston: Mr. Hamlin, Chairman Mr. Platt New York: Mr. Platt, Chairman Mr. Young 430 12/28/28 -4- 2hiladelphia: Mr. Miller, Chairman 14.r. Platt Cleveland: Mr. Pole, Chairman Mr. Hamlin Richmond: Mr. Hamlin, Chairman Mr. Cunningham Atlanta: Mr. James, Chairman Yr. Pole Chicago: Mr. Cunningham, Chairman Mr. Miller St. Louis: Mr. James, Chairman Mr. Hamlin Minneanolis: Mr. Cunningham, Chairman Mr. Miller Yansas City: Yr. Cunningham, Chairman Mr. Young .Dallas: Yr. Platt, Chairman 1:r. James San Francisco: Mr. Miller, Chairman Mr. James The Governor then stated that the term of Mr. Cunningham 31, as a member of the Executive Committee expires on December for e committe the on serve to Hamlin Mr. 1929 and he appointed 1929. 31, arch the quarter endingM Upon motion, the Secretary was authorized to advise the membership of the Chairmen of the Federal Reserve banks of the out above. set district committees, as uf 1 4."1 -5.. 12/28/28 The Governor then reported consideration being given by the Treasury Department to a change in its policy in the matter of selling obligations of the government stating that it is desired to do away with the present depositary system which, however, can not be accomplished without an amendment to the law. He then brought up and the Board discussed the question of possible retirement of National bank note circulation, decision regarding which must be Made by the secretary of the Treasury by 1930. He stated that he has had pre- pared a memorandum on the subject which he will circulate among the members of the Board. 2.A.EDINGUOLMITI2EL3: Dated, December 27th, AeCommending action on an application for fiduciary powers as set forth in the lAxxiliary 1:inute Book of this date. aecommendation approved. The meeting adjourned at 12:45 Secrets A pproved: rt
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