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Upon call of the Governor, a meeting of the Federal Reserve Board was held in the Office of the Board on Saturday, January 12, 1924 at 11:45 a.m. Governor Crissinger Mr. Platt Mr. Hamlin Mr. James Mr. Cunningham Mr. roell, Assistant Secretary. PRESErT ALSO BY ETTULTION: Mr. Geo. W. Norris, Governor, Federal Reserve Bank of Philadelphia. Mr. R. L. Austin, Chairman, Federal Reserve Bank of Philadelphia. Jos. ':whyne, Jr. Edwin S. Stuart, Directors, Federal Reserve Bank of Philadelphia. PRESENT: Governor Morris stated that the committee of Philadelphia directors 11641 requested this opportunity to appear before the Board in order that they Illight explain to the Board the reasons which actuated them in voting to inthe salaries of certain junior officers of the bank, namely, the "sistant cashiers and the auditor, which increases had been disapproved, by the Board. Governor Norris explained the duties of the officers in question ata stated that in his opinion the salaries recommended were not out of line With those paid by commercial banks in Philadelphia for officers whose l'esPonsibilities are similar. Thereafter Directors Wayne and Stuart also urged the Board to 414)reve the increases recommended. The Governor then stated that the Board would take under advisement, and the Philadelphia matter the committee left the meeting. The Governor then presented a telegram dated January 11th received *°11a the Governor of the Federal Reserve Bank of Minneapolis, together with e°P Of a reply thereto. initialed by five members of the Board,rhich follow: -2- 1/12/24 "Sioux Falls rational Bank, Sioux 2a1ls, South Dakota found it necessary to close its doors this morning. I am afraid effect of the closing may be very far reaching and it may be necessary for us to lend a good deal of assistance through rediscounts in that territory. Mr. Gerry, our deputy governor is at Sioux Falls and wires me this morning to secure permission from Federal Reserve Board to use our own discretion in discounting for Member Banks paper originating in non member banks. Situation in my opinion may develop into a very critical one and prompt action upon our part may save a number of members that should be saved. If board can grant this permission to us our committee will assure you that we will only use it where absolutely necessary." "Your wire date. You are authorized to use discretion asked for in discounting 2or member banks paper originating in non-member banks." Upon motion by Mr. Hamlin, the telegram to Governor Young above quoted vas formally approved. Mr. James then stated his view that the Federal Reserve Bank of Minneapolis should have its attention called to the fact that the action above mentioned in no sense changes the Board's attitude in the matter of rediscounts for non-member banks, as set out in its letter of July 18, 1923 (X-3784). Letter dated January 10th from the Federal Reserve Agent at Richmond quoting a resolution adopted by the Board of Directors of that 440.k directing the salary committee of the Bank to proceed to Washington fOr the purpose of presentin!, , to the Board the views of the Directors of the 10_ 4>oullc with respect to its official personnel and the compensation of its Officers, and requesting that the Board set a date for a hearing about two Weeks hence. The Secretary was instructed to inform the Federal Reserve Agent at Richmond that the Board will be glad to receive the committee on a date convenient to it. The Board then ordered that Yr. Delano should to attend the meeting with the Richmond invited be Committee. salary The meeting adjourned at 12:40 p.m.
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