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CICNV'4 r-.• 4 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on 7:ednesday, December 3, 1924 at 11:30 a.m. PIESE:2: Governor Crissinger Platt Hamlin Mr. Miller Mr. James Mr. Cunningham "r. 3ddy, Secretary Mr. Stewart, Secretary of Committee on Discount & Open Market Policy. The Governor stated that the first business of the meeting would be consideration of the following motion submitted by Mr. Miler at yesterday's meeting: "The Federal Reserve Board holds it to be necessary in the present situation of the money market that the open market rate of the Federal Reserve System shoUld be sufficiently above the level of market rates to be effective. The Board is of the opinion that Federal Reserve Bank rates on all classes of open market investments admissible to purchase by Federal Reserve Banks should in present circumstances be not less than 1/4 of 1 per cent above the actual current .(sales) rates on such classes of investments. The Federal Reserve Board would like an :expression of views and a recommendation of the Federal Reserve Bank of New York on the subject of a revision of its open market rates in order to bring about a better adjustment of such rates to the trend of rates in the money market and in order Lc) mke its rates effective." Dr. Stewart reported that while in New York yesterday in connection With certain matters pertaining to the statistical and reporting work of the Federal Reserve System, he discussed with /Timbers of the bank's Executive Committee and with officials of the bank the general credit situation and particularly the open market policy of the Federal Reserve Bank of New York. Dr. Stewart stated that as a result of the discussions he was of the impression that the bank intends for the present to pursue a p011-0 ey of gradually increasing its buying rate for bills up to a point where the CI( tc..0!.... j 12/o/44 buyin3 rte closely approximtes the present rediscount rte of the bank. He stated that the buying rate had been increased 1/8 of 1 per cent on yosterdry nd would probably be further increased today or tomorrow. 2ollov,ing a general discussion of Dr. Jtewart's roort and the relation of the policy being pursued by the New York bank to the purpose and intent of Jr. Miller's motion. Jr. Hamlin moved that action on Jr. Millcr's motion be postponed until tomorrow. Jr. Hamlin's motion being put by the Chair was lost, the members voting as follows: Mr. Hamlin, "Lye" Jr. James, "aye" Mr. Cunnin:ham, "aye" Governor Crissinger, "no" Mr. Platt, "no" Mr. Miller, "no" jtewart then left the meeting and upon his return stated that ho had been in communication with the 2ederr1 Reserve Bank of row York and that the Executive Committee had today further increased its open market to by 1/8 of 1 ,er cent, =kin: the rate 2 Vs per cent on short bills and 2 5/8 on 1042 maturities. 2ollov,ing a further discussion of the necessity it this time of the Board expressin any opinion; as contemplated in Dr. Miller's motion, that the open market rates of the 11ederal Reserve banks be maintained at a level above the market rates, the Members of the Board voted on the motion, which was lost by the following vote: Governor Crissinerr, "no" Mr. Hamlin, "no' Mr. James, "no" la% Cunninhim, "no" Mr. Platt, "aye" Mr. Miller, "aye" C3i'"Ar\ -3- 12/424 2he readin_: of the minutes of the _oard held on rovomber 21st ras dispensed v.ith. Zhe minutes of the meeting held on December 2nd yore then read End approved as mended. Report of Committee on faLminations on letter dated Jecember 1st from the Comptroller of the Currency, recommending a salary of :„:53J0 per annum for :TLtionl 15ank _Ixamiller L. C. Collins, to be assi -ned to the 11th Federal Reserve District; the Committee a_lso recommending approval.. Lpproved, 2elegram dated December 2nd from tne Federal Reserve ii;ent at Dallas, advising of the election of :Ir. J. L. Frost as Class A Director of the bank znd the re-election of 1.1r. Frank Ken as Class B Jirector. Noted. Letter dated December 1st from honorable Frederick LI. ackett tendering his resignation as a director of the Louisville ,3ranch of the Federal Reserve Bank of it. Louis, in view of his recent election to the United States Senate. Upon motion by hr. James, Mr. Sackett's resignation was accepted. Draft of letter to the JoverLors of all Federal Reserve banks trnsmitting coy of the stenographic report of the session o2 the May, 1924 aoverLors Conference with the Federal Reserve 3oard. Approved. Report of Committee on Salaries, :Ixpenditures and 7,:fficiency O n the matter referred to it at the meeting yesterday, namely, letter dated „ -4- 12/3/24 rovember 25th from Tr. A. B. 12rowbridce, submittin a statement for n1500, to cover rwrtial foe for his services as Consultirr; Architect in connection Nqth the buildin:s boins erected to house the Denver and Omaha br..nches of the L.,ederL1 Reserve Bank of Kansas City; the Committee recommendin7 payment Of the bill but further that the Board consider the question of the employment Of a special Consultin,, Irchitect as a matter of policy. After discussion, the payment of ,)1.500 to Hamlin moved approval of 2rowbridi;e. Carried. -. .At this point, Mr. Millor left the meetinL; 11110 November Jocretary then referred to the action of the Board on Reserve 19th in direct inL; him to ascertain the annual cost to the federal of Branch federal bLnks of tho proposed increase in the number of directors of 015,000 Reserve banks from :ive to seven and reported that an estimate had been made -hich he considered somerhat excessive. Counsel dated Mr. Hamlin then submitted a memorandum from general in Pascao.oula December 3rd on the subject of "Jtipulztions of Counsel Board should not tional Bank Case” and stated that in his opinion the outlined vhich should be left undertake to rule formally on the procedure to the discretion of its Counsel in the ease. After discussion Lir. Hamlin moved that the Board ofnote the memorandum submitted by Mr. 7:yatt and outlined. procedure the to fered no objection Carried. 2"1 C.3 -5- 12/3/24 The Secretary then called to the attention of the Board several matters consideration of -which 111 been postponed by the Board, regarding hieh the following actions were taken: (1) iThe question of the introduction of a bill.providing for the incorporation of a Federal Reserve Pension Fund, which was held over on November 20th for a meeting of the full Board, was postponed pending the appointment of a successor to the present Comptroller of the Currency, who, it is understood, has resined. (;.) .Lction of the motions made by Messrs. Hamlin, James and Miller at the meeting on NoveMber 20th, with regard to foes of Counsel of the Federal Reserve Bank of i,tlanta in the Pascagoula case, was deferred pendin7 discussion of the matter with Mr. Baker, the Board's Counsel in the case, on Friday, next. (3) The matter of a conference to be attended by a Committee of the Governors of federal Reserve banks, the Secretary of the Treasury or his representative, the Comptroller of the Currency and the members of the Board, for discussion of action looking to a reduction in the charge fixed by the Comptroller for copies of examination reports furnished Federal Reserve banks, was deferred pending the appointment of the new Comptroller. The Governor stated that the date for the proposed meeting of the Open Market Investment Committee would be fixed within the next few days. R1]1-0225 OF 6 .TA1TDING - COMMITTES: Dated, December 3rd, at federal Reserve Recommending chances in sto oaxiliary Minute Book Banks, as sat forth in t of this date. Approved. The m7!etinc adjourn; 12:50 SeeretIlry. Approved: t;
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