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15 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, January 8, 1930 at 11:45 a.m. PRESEN2: PRE= ALSO: Governor Young Mr. Hamlin Mr. Miller Mr. James Mx. Cunnii*ham Mr. McClelland, Asst. Secretary Mr. Smead, Chief of the Division of Bank Operations. At the ref3uest of Mr. James, the Board considered as special order of business a report of the CoMmittee on Salaries and Expenditures regarding Changes in the personnel plan at the Federal Reserve Bank of New York, effective January 1, 1930, reading as follows: "Attached hereto is a recommendation of the Federal Reserve Bank of New York for changes as of January 1, 1930 in its personnel classification plan, Form A, and for the payment to certain employees of salaries in excess of the maximum provided in the classification plan. • "The bank asks authority to create two new positions as follows: Chief AA with a salary range of .5,000 to ,,A,000 and Grade lA with a salary range of 41,000 to .)5,000. The bank proposes to classify in Chief AA the chief of the Paying Division of the Cash Department, the chief of the Money Division of the Cash Department and the chief of the Safekeeping Division of the Government Bond and Safekeeping Department, and as Grade lA - paying. tellers. "In addition to the creation of the above new positions and the adjustments in salaries in accordance therewith, the bank proposes to make the following promotions of employees occupying appraised positions. Louis Galantiere, in charge of research work of the Foreign Information Division of the Foreign 5,200 - ,?5,500 Department Arthur Phelan, senior clerk, Loan and Discount Department - .4,800 William Keepers, bill buyer, Receiving Division of Bill Department „:5,000 Dr. Mary M. Crawford, chief of Medical Division46,600 - 47,000 Harold Range, supervisor of Club Store 3,000 The salary of this position is paid from the profits of the store. "The bank also proposes to increase the salaries of the following employees above the maximum provided for their grade. 16 1/ 8/30 Frank P. Chapman, Service Division, I.d!:ainistration 4,000 - 4,250 Department The maximum salar:T Drovidea for this position is 4,000. Alfred Hudson, chief; Note Issues Division of Note 4,600 - 4,800 Issues Department The maximum salary provided for this position is jA,000. The New York bank id its letter rives its reasons for making these and Other prornotions which are referred to above and in its letter." Mr. Smead discussed the changes referred to in the report after which, u-9on motion by Mr. Hamlin, it was voted to approve all changes recommended by the directors of the New York bank. The Governor then reported that after communicatinir with 3enator Allen of :ausas, he has arranged at the request of representatives'of Wichita for a r!loetii.v, at 10:0 o'clockon January 20th. Of the nlatter to be discussed He stated, however, that in view n=ely, the question of transit times, he would like to suggest to the ,ichita delegation that it r-,..et in touch with the 2edera1 deserve Bank of Kansas City before the meeting and iron out as many differences 3,s possible. Ho objection was expressed to the Governor's suggestion. The minutes of the meetings of the Federal Reserve Board held on December 31st and January 2nd, :3rd and 7th were then read and approved. At this point, hr. 2latt joined the meetinrr. Telegram dated January 7th from the Ohairnan of the "Zederal deserve Bank Of Dallas, advisin-: that the board of directors at a raeotin on that date made no change in the bank's e:AstInc;' schedule of rates of .'.i.scount and mrchase. Without objection, noted with approval. enort of Committee on 2xaminations on letter dated December 31st from • 17 1/8/30 -3- the iisSistant Federal Ileserve Agent at Atlanta recommendiAg approval by the Board of the consolidation, effective December 23, 1929,of the Greenville Banking Company and the Peoples Bank, both state member banks located in Grenville, Ga., which was effected under the charter and title of the GreenVille Banking Company; the Board's Committee also recommending approval. roted, With approval. Matter approved on initials yesterday, namely, telegram dated January 7th from the Federal Aeserve Agent at Cleveland requesting permission to have a representative of his Department of Zaamination make the usual credit investigation of the Merchants Trust Company, Greensburg, Pa., without ex- pense to the member bank, at the time it is under examination by the State banking authorities. Upon motion, it was formally voted to interpose no objection to the arrangement. Telegram dated January 7th from the Chairman of the Federal Reserve Bank of Cleveland, advisin-: of the death on January 6th of Mr. Joseph B. Shea, one of the Board's appointees to the directorate of the Pittsburgh Branch. Noted with regret and referred to the Committee on District 44 for recommendation as to the appointment of a successor. Report of Committee on Salaries and Expenditures on list submitted by the Federal Reserve Bank of Philadelphia of employees for whom the directors Of that bank approved leaves of absence with pay, on account of illness, during the month of December, where the total of such absences since January 1, 1929, has exceeded thirty days; the Board's Committee also recommending approval. Approved. 1 -8 Memorandum from Counsel dated January 4th with reference to application Of the 1-tational Jity Bank of New Yorl: for nemission to establish branches at Manila and Cebu, Philippine Islands; the memorandum statin- that the anplication is in proper form but sru:vstinc. that before actin'? upon it the ;oard cernuniCate win the jeeretarzT of ,ar and ask him to ailifim the fact that the Philippine legislature recently nassed a statute -orovidin- that any law nfohibitini7 the use of the word "rational" by any bank shall not arply to any National bank el-7,,lized under the laws of the United 3tates, the name of which is so distinctive that it could not reasonably be confused with the Philippine National Bank. Upon motion, Counsel's recommendation was approved and a •letter to the Secretary of War aubmitted therewith was ordered transmitted. The Governor then presented a letter addressed to Dr. Goldenweiser Under date of December 16th by Mr. T. 2. Gregory of the London School of .. Economics and Political Science, inquiring whether it would be possible for him, if invited, to come to London for the purpose of 7.ivinf74 evidence on the Federal Reserve System before the Committee of Parliament on Industry and Finance. After considerable discussion, the Governor was requested to suggest to Dr. Goldenweiser that he reply to the inquiry that he could probably get a leave of absence from the 3oard for a short time if he were invited to come to London for the purpose of giving testimony relating strictly to the technical operations of the Federal Aeserve System, as distinguished from a discussion of System policy, provided the invitation did not came at a time when it would be inconvenient for him to be away from Washington. Totter dated Jaruary 2nd from the Deputy Govr7;rnor of the Federal Reserve Bank of New York, advising of conditions in the bill and Government securities markets and System operations since December 26th; the letter 1/6/30 -5- stating that holdings of securities in the Onen Market Investment Account increased „e15,125,000 during the week to a total of .277,500,000, that a temnorary increase in holdings of securities under sales contract agreement took place In the amount of ,,l2,675,000, and that System holdings of bills showed a net increase of „313,000,000,with a decrease of ,2,000,000 owned outright, but increases of A,000,000 in sales contracts and y10,000,000 in _:oreim suspense Account. The Governor then presented to each member of the Board a copy of H. R. 7966, introduced by Chairman McFadden of the House Committee an Banking and Currency, Which would place under the Comptroller of the Currency all examinations of Federal lieserve banks, member banks and affiliated corporations; would provide for payment by the Federal zZeserve banks of the expenses of such examinations; Would relieve the Board of the duty of passing upon salaries of Z - ational Bank Examiners and responsibility for the granting of trust tywers to i:ational banks and would provide a change in the distribution of Federal Aeserve bank earnings. After discussion, unon motion, it was voted to submit the bill to the Federal Advisory Council as a topic for consideration at its next meeting and to forward it to the Chairmen and Governors of all Federal serve banks for their comments. 11E ORT OF 52ANDINu iTdIT2EE: Dated, January 7 Aecommending action on an applicatidn for fiduciary navezs as set fo th in the Auxiliary Minute Book of this book. .lieaommendation approved. eeting acyourned at on .'clock p.m. Approved: Assistant Secretary. Governor •
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