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A Ineetinf] of the Executive Committee of the -ederal Reserve Board was held in the office of the Federal Deserve Board on Saturday, December 3, 1930, 4t 1 110 a. m. PIESTIIT: Governor i.:,:eyer Lir. Hamlin Janes EcClelland, assistant Secretary. IPM1SI1T ALSO: flr. L. R. Black, Governor of the Federal deserve Bank of Atlanta. Letter dated December 4th from the _Issistant Secretary of the :ederal 'le 3ank of Sew York and telegrams dated December 3rd from the Chairman the gederal 1:teserve 3ank of Boston, December 3rd from the Chairman of th.e Reserve Bank of Philadelphia, December 5th from the Secretary of the Iteserve Bank of Cleveland, December 4th from the Chairman of the ]J'ederal 1:te el 've Bank of Richmond, December 3rd from the Chairman of the 7ederal ReOf St. Louis, December 4th from the Chairman of the Federal Rerlaroc of Kansas City and December 4th from the Chairman of the 4eel've 3, , of San Francisco, all advisin ederal that at meetin7s of their boards ' -`1"ector, on the dates stated no changes were made in the banks' existin;2; '4e`lui-e5 Of rates of discount and purchase. ',iithout objection, noted with approval. '01)o-I.,ts of Colmittee on Salaries and Expenditures on lists submitted by 'edezal iieserve Banks of Boston, Philadelphia, ilichmond, St. Louis and 4-tae of eMployees of those banks and their branches for whom the directors leaves of absence with nay, on account of illness, durin the month 11°IrerrIber, where the total of such absences since January 1, 1530 has , e'teeedeci 141 talrty days; the 3oard's Committee rocoienciing approval of the salary .t in 7olved. Approved. 4 I -A 12/6/30 -2- RePorts of Committee on Salaries and :xpenditures on letters dated Noir, 'woer 24th from the Deputy Governor of the Federal Reserve Bank of New York eNovember 26th from the Deputy Governor of the Federal Reserve Bank of St. requesting approval of certain chanres in the personnel classification 9 Naze at those banks; the Board's Committee recommending approval. Approved. Letter dated December 4th from the Chairman of the Federal Reserve Bank "iehmond, advisin,: of the reappointment of Mr. John Poole as a member of tile l'ecleral Advisory Council representing the Fifth District for the year 431 with /Ir. Charles E. Rieman as alternate, and the reappointment of clillectc)re at the Baltimore and Charlotte Branches of the bank as follows: BALTDIORE Fir. A. H. Dudley, Lanaging Director Col. H. B. Wilcox TERI.: =EMS December 31, 1931 December 31, 1933 CHARLOTTE Mir. Hugh Leach, 1:lanaging Director Ylr. Robert Gage December 31, 1931 December 31, 1933 Noted. Report of Executive Committee on letter dated December 2nd from the eckOtrol l ---Ler of the Currency, recommending approval of the application of the ktet tional Bank in Harper, Kansas, for permission to reduce its capital fitaok trom the Board's Committee recommending approval 50,000 to ,J25,000; 0)1 n it10n that the reduction be used to eliminate other real estate in the . 6,500, and to effect a reduction of . 9,801.65 in loans and dist °t ) °"448 Cash in the amount of only ::g3,698.35 to be returned to the shareholders. Approved. Letter dated December 2nd from the Federal Reserve Agent of the Federal lieserv. e Bank of Dallas, advising that the Madison National Bank, Tallulah, La., $ -3Was A "e4lcient in its reserves for a period of six months from Lay 16th to ember 1 5, 1930; the _;.,ent recomaending that inasmuch as satisfactory 41111011.ces have been received that the reserves of the bank will have proper 4ttention in the future, the :),oard tote no action pending further developments 14 Connection with the bank's reserve position. -Upon motion, it was voted to approve the Aderal .eserve .A:ent's recomendation and to request him to follow the matter closely and communicate with the :Board if future developments are unsatisfactory. CODy of the federal l'eserve letter was also ordered transmitted to the Comptroller of the Currency for his- information. L'tt-els dated Jecenber 2nd from the :ederal feserve Agent of the federal 114/ti e Bank of Jallas, advising that the first lational Bank of Herphill, Textis and the first rational Bank or Tayton, Texas, were deficient in their ta rves for the six months Period from I:ay 16th to Fovember 15, 1930 and co'qm,„ ' ' -d Ilu.inr; that the matter be broujit to the attention of the Comptroller or 'Alrrency with a view of enlisting the cooperation of his examiners `.urrecting the delinquencies. Upon motion, it was voted to refer the natter of reserve deficiencies of the two :member ban::s to the Corrptrollor of the Currency, in accordance with the federal deserve Agent's recommendation, with the recuest that when a report is received from the examiner the Comtroller advise the Board as to the result of his efforts. liatt-er aoproved on initials of the Z - xecutive Conmittee on December 3rd, Memorandum from :;ounsel, dated December lot, submitting draft of reply to e ter dated roveriber 24th from the a7ederal deserve -1,:ent of the -federal ye 8'llk of Dallas, with regard to the disposition of the trust business of i - th , e Jirst lational Bank of::6Kinney, Texas, which is now in receivership; the 131.(1113°8ed rely stating that the trusts should be closed UD in accordance with 2°ction XIII of the Board's Relation "F", which -)rovides that whenever a Iti°11.a1 bank exercising fiduciary powers becomes insolvent and a receiver is 1)1pointed therefor by the Comptroller of the Currency, such receiver, pursuant to 4 .LzI structions of the Comptroller of the Currency and to orders of the Court, Proceed to close the trust estates promptly and to transfer to substitute elkeiaries such trust estates as cannot be closed promptly. The memorandum sulymitted draft of a letter to the Comntreller of the Currency enclosing et)Pie.a. Of the corresnondence with the Agent at Dallas in order that he nay *11f3 appropriate instructions to the receiver of the bank for thewindin7 un trust business. Upon motion, the letters submitted by Counsel were for:-Ially approved. llatter approved on initials of the Executive Connittee on December 5th, Olid letter to the federal Reserve Agent of the Federal Reserve Bank of in reply to his letter of December 2nd, advising that inasruch as his Oorrlittee believes there is no need at the present time for establish- 111(a of unissued Federal reserve notes at branches of the Dallas Bank, t11()a1A-1 feels that it would be better not to h:tve any agreement in effect 11114 U°es not actually cover an ,stablished custody of unissued federal Re11°1-4 '2) the letter sugesting that the board of directors of the bank I t410,. ' 14e the Governor to enter into an agreement with the federal Reserve rit ' On oehalf of the Dank, if and when the establishment of reserve stocks of 141 2eder11 eserve notes at any of its branches is deemed advisable. 7orlially approved. co--41-) 12/6/30 -5_ Letter dated F.ovember 21st from i)eputy Governor Crane of the Federal Re8ercie Bank of Dew York, enclosing copy of letter sent to the Governors of 411 Pe deral 'Reserve banks, with regard to the program of the Dew York Bank the Purchase of sterling exchange. The letter having previously been circulated among the metbers of the Board, was noted. Letter dated November 25th from Deputy Governor Burgess of the Federal 1144"e Bank of Pew York, enclosing copy of a letter to the Governors of all NLsral Reserve banks, with regard to the proposed merger of the iralmufacturers' Nat coxpan y the Public National Bank and Trust Company, the Bank of United te1;08 and the International Trust Company; also letter, dated November 26th, 1.1111114r. Case, Chairman of the Dew York Bank, setting forth the circumstances it 41°14 baduced him to accept the position of executive head of the institution re"in from the merger of the four New York City banks referred to. The letters having previously been circulated among the members of the Board, were noted. L:emorandum dated December 4th from ra.. Snead, with regard to the question rEtise by certain federal Deserve banks in connection with the calculation of heer " 7 of member banks for Sundays and holidays; the memorandum recommendinG tt th -e Board approve reference of this question to the System Committee 011, io esm-'yes, which will meet in -Jashington on Monday, December 8th, for 4r4endation and _preparation , of drafts of suggested replies to letters rethe `I tram the Federal Deserve Banks of St. Louis and Philadelphia regarding ettsr. Upon motion, the procedure recomnnnded by 1:.r. Snead was approved. 1-i 12/6/30 C) -6- Governor Clack then took up with the 3oard a renuest which has been 41°1e that the -tlnta lank, through its hew Orleans Branch, act as custodian or yin , ' reaouse receipts coverinT cotton pled-ed to secure a loan to the American ec)Perative Cotton Association which is being made by federal Intermediate Credit 3anks. He expressed his own ()Pinion that the circumstances of this eUt • °(ilanship would be in the nature of colipetition with certain member banks 'lave acted for the Intermediate Credit Banks in other instances and that 111(1 come to Jashinton for the purbose of discussing the matter with the raetabeof the Board and to get their advice. Governor Beyer suggested that members of the federal farm Loan Board be 14\riteci uo particioate in the discussion and :::essrs. Bestor, Cooksey and -'", together with 1:r. Chester horrill, Jecretary and General Counsel of te ederal farm Loan Board, later joined the meeting. The discussion brought c'4t that a loan of .10,000,000 has been made to the American Cotton Cooperative Azzoe tic)n by a consortium of 7ederal Intermediate Credit Banks and that it lz the cleoire of the committee in charge for the Intermediate Credit Banks to warehouse receipts held by the federal _leserve banks. The members te f ederal _2'arm Loan Board stated that it is their desire, as a ;7;eneral to have the Federal Reserve banks and branches act as custodians for file Inte rmediate Credit Banks wherever feasible for them to do so and that they °ill( 'like to have the New Orleans Branch act in the case under discussion 4111" no other arran7enent has been made. It was Pointed out that existing t°41allshins on the Dart of commercial banks will not be interfered with, but t'rlt these custodians will hold the recei.ots involved in that portion of the 1.0Q11 e the -Lnerian Cotton Cooperative association which is being advanced reial in3titutions. -7_ CV°Icy ,) The members of the Board Present concurred in the opinion that it would be , °4-1-I. for the Federal Reserve banks to act for the federal Intermediate 41244 Banks wherever Practicable and Governor Black stated that he would 14Y the.request of the Federal Farm Loan Board before his Executive Committee 011 140 btallY, advising that it is concurred in by the Executive Committee of the 1304rd. 41POilTs. C011aTTEES: Dted, December 2nd 4th 5th 13th ikted, December 2nd December 2nd ii Recommending chances in stock at Federal Reserve banks, as set forth in the Auxiliary Iiinute Book of this date. Recommendations approved. Recomonding approval of the application of Er. Shirley S. Ford, for peruission to serve at the sane time as a director of the Great Falls National Bank of Great Falls, idontana, and as an officer and director of the United States National Bank of Omaha, Nebraska. Approved. Recommendinc approval of the application of ?./.. Edward Ball, for permission to serve at the sane time as director of the Florida National Bank of Jacksonville, Florida, and as director of the Florida National Bank at 3t, Petersburg, St. Petersburg, 71orida. Approved. The meeting adjourned at 12:45 p. Assistant Secretary.
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