The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
144 A meeting of the Federal deserve Board was held in the office of the Governor on Friday, February 10, 1928 at 11:30 a.m. Pqr]SIZT: Governor Young Platt 1:r. Hamlin Li'. Liner 2:.r. Cunningham lir. Eddy, Secretary Mr. McClelland, ilsst. Secretary The minutes of the meeting of the Federal deserve Board held on *.'ebruary 8th were read and approved. Matter approved on initials yesterday, namely, telegram dated February 9th from the Chairman of the Federal aeserve Bank of Kansas City, advising that the ooard of directors on that day voted to establish a rediscount Iltte Of on all classes of paper of all maturities, effective the first busin ess day following that on which approved by the Federal Aeserve Board. The rate of 4-/i, established by the Kansas City directors having been aEproved informally yesterday, effective as at the opening of business today, was formally ratified, Mr. Cunningham not voting. Mr. Cunningham stated that he has previously explained to the Board his position with regard to recent adjustments in Federal deserve bank rates. Telegram dated February 8th from the Chairman of the Federal deserve "San Francisco, advising that the Executive Committee on February 7th approved the following rates for purchases of bankers acceptances, " 'ere established February 3rd: Endorsed Bills: 1 to 45 days 46 to 120 days - 3 1/4o 3 1/2,; Without objection, noted with approval. 145 2/10/28 -2- Letter dated February 9th from the Secretary of the Federal Aeserve 13844k"New York, advising that the board of directors on that date made 4° change in the bank's existing schedule of rate of discount and purchase. Without objection, noted with approval. Memorandum dated February 8th from the Chief of the Division of Barn, v perations, recommending the appointment of Miss Felipa Moss cKey 43 COmptometer operator in the Division for a temporary period of three In°11t118 9 with salary at the rate of •,J00 per month. Approved. Ileport of Committee on Salaries and Expenditures on letter dated , Pebru. -IV 2nd from the Chairman of the Federal aeserve Bank of San Francisco, reTW5 in sting approval of the action of the board of directors of that bank veti ng to grant a leave of absence of three months from February 1st, with 1'411 pay, to mr. A. U. Svege, a guard at the Los Angeles Branch; the Board's Co ittee recommending approval of the salary payment involved. Approved. Report of Committee on Salaries and Expenditures on letter dated l'Sr 2nd from the Chairman of the Federal eserve Bank of San Francisco, req11"ting approval of the action of the board of directors of that bank in It°ttlig to extend for a period of two months from February 1st, with half leave of absence on account of illness previously granted Li.. Lee L. Laza 'a guard at the head office; the Board's Committee recommending approval 0±' the salary payment involved. Approved. 146 2/10/28 -3- Report of Committee on Salaries and Expenditures an letter dated February 9th from the Chairman of the Federal Reserve Bank of Richmond, l'equesting approval of the action of the board of directors of that bank 14 voting to extend for a period of thirty days from February 4th, with 1'1111 Pay, leave of absence on account of illness previously granted :Ass Viola Barnes, an employee of that bank; the Board's Committee recommendaPprovalo the salary payment involved. 4proved. -leport of Committee on Salaries and Expenditures on letter dated Jan„ ---ry 6th from the Chairman of the Federal _Reserve Bank of New York, tl ' alaemitting a report of all employees of the bank grouped according to cleart!lients, divisions and grades, the salaries paia each at the end ot 1926 and 1927 ana changes, if any, in salary or grade during the year each employee receiving a salary in excess of 2-b00 per annum; the }30avo, "& 8 Committee reporting that all of the adjustments made were in ac1ee with the salary plan approved by the Board on January 12, 1926 414 recommending that the salary schedule be approved as submitted. Upon motion, the recommendation of the Committee was adopted. Telegram dated February 10th from the Secretary of the Federal iteeerve Bank of ,Jleveland, advising that the board of directors at their ?4teetillig today voted to make no change in the bank's existing scheaule of 114'a5 Of discount and purchase. :dthout objection, noted with approval. Letter aated February 9th from the Federal Aeserve agent at New York 'advising of plans under way which it is expected will be completed 147 V10/28 about -4- February 20th for the merger of the Terminal Trust Company, New Y°11c C. a nonmember bank, into the International Germanic Trust Company, a tember bank; the Agent advising that the Board was informed of the pending merger at the time the International Germanic Trust Company was admit- tea to membership in the System. Noted. The Governor then referred to the action of the Board on February 2nd *II requesting him to report as to the mnst suitable method by which to Se• e i nformation contemplated in the resolution submitted by Mr. Cunningham 0/1 that date with respect to loans to brokers and dealers on the security Of stock exchange collateral being made by member banks while such banks • re discounting with the Federal Reserve banks. He suggested that the Ilar‘thils Federal deserve banks might be requested to report to the Board 411 , '411ch cases of which they have knowledge and at the same time be asked tO . "lee the Board of the names of all banks having a capital in excess Of 00,000 claYs, which have been borrowing continuously within the last thirty he stated that when this list of banks has been compiled the Beard • lit request the member banks in New York City through which most of the lo.ealled brokers' loans are placed to check the list and advise it .7hat bah6 tamed therein are lenders in the call market. An informal discussion then ensued, but no action was taken. 'The Governor then presented a letter dated February 7th from the Act`iaairman of the Open. Market Investment Committee advising that since 148 2/10/28 -5- letter to the Board of January 27th .25,000,000 additional of securities have been sold from the Open Market Investment.Account, reducing that account to .,2,7 • 9 15,000,000, which is ;[i;150,000,000 less than at the first of the year, 41141 further that these sales of securities, together with recent advances the discount rates of some of the Federal deserve banks, have resulted 4 slightly firmer money; the Acting Chairman stating that in view of these facts it is believed that it might be wise for the present to continue the °Pen market investment account at about the present level and to watch the effect Of the sales already made and the changes in the rediscount rate before taking any further action. , The Governor reported a telephone conversation with Jr. Case during which he was advised that the situation was discussed by the directors of the New York bank at their meeting yesterday, and that the directors were of the opinion that no further sales of securities should be made for the next three or four days. . lifter discussion, the Governor was ,authorized to advise Mr. Case that the Board is in agreement with the conclusion expressed in his letter, although there is a feeling on the part of some members of the Board that further sales should be indefinitely suspended. k?1P0,iTS OP STANJING 002.1MITTEES: 3114tecl, February 9th, Recommending a change in stock at a Federal Reserve bank as set forth in the Auxiliary Minute Book of this date. Aecommendation approved, I3ated_ _ • ebruary 7th, Aecommending action on applications for fiduciary 9th, powers as set forth in the Auxiliary Minute Book of this date, decommendations approved. 4ted_ n • C ebrua,y 7th, Recommending refusal of an application for admission of a state bank as set forth in the Auxiliary Minute Book of this date. decommendation approved. 149 2/10/28 -6- PORTS OF STANDIN6- COMMITTEES: (Cont'd) Dated, Recommending approval of the application of Mr. Raymond Guarini for permission to serve at the same time as director of the Bay Parkway National Bank, Brooklyn, N. Y. and as President of the Madison State Bank, New York, N. Y. Hecommendation approved. Dated, ng approval of the application of Mr. ending Recommendi February 7th, for permission to serve at the same Shepard B. aoger time as director of the National Exchange Bank in St. Paul, Minn. and as director of the Merchants National Bank, St. Paul, Minn. Recommendation approved. Dated, February 8th, Recommending approval of the application of Mr. 11;. C. aomfh for permission to serve at the same time as officer and director of the First National Bank, Miami, Fla. as officer and director of the Miami Beach First National Bank, Miami Beach, Fla. and as director of the Coral Gables First National Bank, Coral Gables, Fla. Recommendation approv February 7th, The meeting adjourned at 30 p.m. Secretary 4PProved: Oat Govern
@FedFRASER