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168 4 meeting of the Federal .eserve Board was held in the office of the iieserve Board on Friday, February 15, 1929, at 2:15 p.m. PRESENT: Governor Young Mr. Hamlin Mr. Miller Mr. Cunningham Yr. Pole Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary DISCUSS ion ensued with respect to the following minute -:;hich the Federal Ivisory ' Council made at its preliminary meeting yesterday and delivered to the Board at the regular joint meeting this morning: "The Federal Advisory Council approves the action the Federal Reserve Board in instructing the Federal Reserve Banks to prevent, as far as possible, the diversion of Federal reserve funds for the purpose of carrying loans based on securities. The Federal Advisory Council suggests that all the member banks in each district be asked directly by the Federal Reserve Bank of the district to cooperate in order to attain the end desired. The Council believes beneficial results can be attained in this manner." Of It was voted that a copy of the minute be tele.1.aphed this afternoon to each Federal reserve bank. In view of the permission given the Board by the Council to use the above minute in any way which the Board might see fit, it was moved that the following statement be issued to the press at 3:00 o'clock this afternoon for immediate release. the fo7he Federal ,..dvisory Council at a preliminary meeting yesterday made the re 1°wing minute, which was delivered to the Federal deserve Board at Sr quarterly meetinz of the Council and the Board this morning: 'The Federal Advisory Council approves the action of the Federal Reserve Board in instructing the Federal Reserve Banks to prevent, as far as possible, the diversion of Federal reserve funds for the purpose of carrying loans based on securities. The Federal Advisory Council suggests that all the member banks in each district be asked directly by the Federal Reserve Bank of the district to cooperate in order to attain the end desired. The Council believes beneficial results can be attained in this manner.'" 2/15/29 169 -2- The above motion being put by the chair, was carried, Governor Young voting "no". ielegram dated February 14th from the Deputy Governor of the Federal Re4alle Bank of New York, delivered this morning, advising of the establishment t3f the following schedule of rates for purchases of acceptances, effective to- Bankers acceptances: 1 to 45 days 46 to 90 days 91 to 180 days Repurchase Trade acceptances _ - 53,, , 5 1/85 1/4% 5% 5 1/4% The Governor referred to previous discussion by the Board with respect to the procedure now in effect at the Federal Reserve Bank of New York of establishing buying rates for acceptances, which does not give the Board an opportunity of considering such rates before they are made effective. The Governor was authorized, on the occasion of his next visit to New York, to discuss with the directors of that bank the formulation of a procedure under which buying rates could be considered by the Board before they are made effective by the bank. Upon motion, the schedule of rates made effective today was noted with approval. Yr. Cunningham stated that he voted "aye" because the rates are already effective, but did so reluctantly because they had not been previously considered by the Board. or —am Teler.5., dated February 15th from the Governor of the Federal Reserve Bank B°8t°119 advising of the establishment today of the same schedule of buying %an, 4d4 effective at the Federal Reserve Bank of New York, as listed above. Noted with approval. tioak -ams dated February 15th from the Chairman of the Federal Reserve ' -5 °I Chicago and the Governor o.f the Federal deserve Bank of St. Louis, 4414111 e or the establishment today of the following rates for purchases of -4" P'Vint J I 'k 7 2/4/29 1$ -3- acceptances: 1 to 45 days 46 to 90 days 91 to 180 days ONO 5„'0 5 1/8p 5 1/4,0 Noted with approval. The Governor then presented letter dated February 13th from the Deputy C11411111e4 of the Federal Reserve Bank of Philadelphia, replying to the Board's letter of February 2nd with regard to the improper use of the credit facilities Of the Federal reserve banks by member banks. Ordered circulated. Letter dated February 14th from the Federal eserve Agent at New York, advisihg that the Bank of America, N. A., is planning to take over the Traders nenk in Brooklyn, which is near the FultOn Street office of the Bank Of Arnerlea Noted. The Secretary then announced that he was informally advised by the Secret111.17 ' 1 °I the Federal Advisory Council that the Council ye terday voted to hold its r, `igalar meetings hereafter on the third Tuesday in ebruary, :ay, September instead of the third Friday, as has bee The meeting adj the practice. ned at 3:00 p.m. Secrets APprOyeas Governor.
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