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A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, July 1, 1930 at 10:45 a.m. PRiSENT: Vice Governor Platt la'. James rr. Cunningham Lr. McClelland, Asst. Secretary Letter dated June 26th from the Secretary of the Federal Reserve Bank Of New York, telegram dated June 27th from the Chairman of the Federal Reserve 34411k of Chicago, and telegram dated June 25th from the Secretary of tine Federal Reserve Bank of Kansas City, all advising that their boards at of directors meetings on the dates stated made no changes in the banks' existing schedules Of rates of discount and purchase. ;iithout objection, noted with approval. Matter approved an initials yesterday, namely, request of the Federal 1teserve Bank of Chicago for authority to reduce the minimum buying rate of the bank for purchases of bankers acceptances from 2; to 1 3/47. Upon motion, the minimum buying rate of 1 3/4 was formally approved, mr. James concurring in the following statement made by Mr. Cunningham: "In view of the past attitude of the Federal Reserve Board an the question of bill rates (with which I was not entirely in harmony and for which I have not voted during the recent past) and rather than cause delay in the granting of the reduction requested by the Chicago Bank or roc:4.11re that the members now absent on vacation return to ,iashington, I vote to approve the reduction to 1 3/4 per cent requested by the Chicago Bank in its minimum buying rate, knouing as I do that a majority of the Board waild favor the reduction if there were a majority present. "Ordinarily it has been the policy of the Board as we approach the season for crop movements to offer aid thrauel a reduction in bill rates, so that in voting approval of the Chicago reduction I do so as a matter of courtesy to the absent members of the Board and also because i realize that I would favor a reduction in bill rates just as soon as the seasonal demand for credit begins." 7/1130 Telegramt dated June 30th froth Deputy Governor Kenzel of the Federal aeserve Bank of New York and Denuty Governor paddock of the Federal deserve Bank ofBoston, adViSin€: of the establishment of the followinp; schedule of buYing rates on bankers acceptances: 1 to 45 days 46 to 90 days 91 to 120 days 121 to 180 days Repurchase _ _ 1 7/8 2,; 2 1/8,; 2 3/8,; 2, Athout objection, noted with approval. Telegrams dated July 1st from the Chairman of the Federal Aeserve Bank Of Chicago and June 30th frOM the Chairman of the Federal oieserve Bank of St 1 Louis, both advising of the establishment of the following schedule of rates for purchases of bankers acceptances: 1 to 45 days 46 to 90 days 91 to 120 days 121 to 180 days - 1 7/8, 2 1/8i; 2 3/8 Without objection, noted with annroval. 2e1egram dated June 30th from the Chairman of the Federal eserve Bank °f Aiehmond, advising of the establishment of the following rates for tUrchases of bankers acceptances 1 to 45 days 46 to 90 days 91 to 120 days 121 to 180 days 2 1/8/0 2 1/4 2 1/2,0 Without objection, noted with approval. Letter dated June 27th from Deputy Governor 3urgess of the Federal :tee°rve sank of New York, reviewing conditions and operations in the Govern- 3 7/1/30 -3- ment securities and bill markets during the week ending June 27th. Noted. Matter approved on initials an June 60th, namely, request of the Federal Ileaerve Agent at Cleveland for permission to make the usual credit investigation, without charge, of 2he State Bank, Bowling uraen, Ohio, at the time it is under examination by State authorities. Formally approved. I..atter approved on initials on June 26th, namely, recommendation of the Federal deserve Agent at Jan Francisco, that the salary of Lr. Oliver P. Wheeler, recently appointed 21ctino. Assistant Federal Reserve Agent, be increased from 4,4,500 to „;5,000 per annum, effective July 1st. Formally approved. 241atter approved an initials an June 30th, namely, letter dated June 27th from the Governor of the Federal Reserve Bank of Richmond, advising that the, bidder on the proposed addition to the building of that bank was the I Jones Construction Company of Charlotte, N. C., whose bid, with a corj." Ilsoti°n for alternates ,amounted to .552,157; the letter stating that this bid aoes not include certain work such as elevators, coin lifts, :iletal screens f°P the uuilding and a few other incidental items, and requesting that the Itiohmond bank be authorized to proceed with the erection of the proposed ad.clit1c41 on the basis of a complete budget, ilicluding the general contract and these items, but excluding architects' fees, amounting to ,636,557. Upon motion, the action taken on initials in authorizing the Aichmond bank to proceed was formally concurred in by the Committee. 4 7/1/30 Latter approved on initials on June 27th, namely, letter to all ;ederal deserve oalv,cs, prepared by Counsel, requesting comments or sugestions on certain proposed amendments to .iegulation J, recommended by the recent Jon- ference of i'ounsel of the i - eserve banks. - ederal d Formally approved. ..:.emorandum dated June 30th, approved by the Assistant Secretary, requesting authority for the employment of an additional man on the night force Of the Gold jettlement Amision. Approved. Telegram dated June 26th from the Chairman of the 1,'edera1 deserve Bank Of Boston, advising of the death on that date of _xi. Charles H. Manchester, Clav,, L; Director of the bank. ..oted, with rcl ret. Upon motion, the mattr of the appointment of a successor was referred to the Cormittee on Jistrict •4,1 and the li.ssistant Secretary was directed to request Li'. Hamlin, who is now in Boston, to take the matter up while there. Report of Committee on Jalaries and 3xpenditures on list submitted by tile iederal deserve Bank of Chicago, of employees for whom the directors of that bank authorized leaves of absence with pay, in account of illness, during the P3r1A/c1 4- .:ay 23rd to oune 26th, where the total of such absences since JanuIlrY 1, 1960 has exceeded thirty days; the Board's Committee recommending approval of the salary payments involved. Approved. Report of Committee aa ;1;xaminations on letter dated June 25th from -5the iederal Aeserve Agent at Philadelphia, recommending a further extension until (;uly 1, 19J1 of the time in which the Lycoming .rust Company, 4illiamsport, Pa. may dispose of a certain parcel of real estate, in accordance with One of the conditions under which it was admitted to membership in the ystem; the Joard's Committee also recanmending approval. A.pproved. Aepo t of Committee on Examinations on letter dated (June 25th from the iederal Aeserve Agent at Atlanta, transmitting with the favorable recommendation of the executive committee of that bank, an application of the Pec/Plee Bank of Evergreen, Ala., for permission to consolitate with the FirRf Aational 3ank of Evergreen under the charter and title of the ,tate Illember bank; the Board's Committee also recommending approval. Approved. draft of reply to letter dated uune 14th from the Assistant federal 4ieserve Agent at Jleveland, with regard to the interlocking uirectorates of J. H. Hillman, Jr.; the proposed reply advising that there is no way in which Hillman may lawfully continue to serve all four of the banks 14 -eittsburgh with which he is now connected.. Upon motion, the proposed letter was approved. Memorandum from Counsel dated july 1st, recommending that there be 1311131 J-shed in the Pederal Aeserve Bulletin the ruling approved by the I>oard -ttue 25th, with reference to the effect of consolidations on Clayton Act 13"mita. Approved. 7/1/30 -6- Llemorandum from Counsel datea June 24th, advising formally of the Passage by the liouse of iepresentatives of four bills previously passed by the denate, three of which were recommended by the Board and one by the Comptroller of the Currency, i. e., 5. 485 amending section 9 so as to make it discretionary with the Board to assess the costs of examinin5r 3tate member banks; B. 4096, to amend 6ection 4 to clarify the meaning of the phrase "electors votinr.:" in the provision regarding the election of Federal 4eserve Bank directors; 3. 3627, authorizing the voluntary surrender of trust powers by 1,ational banks; and . 486, specifically authorizing 1:ational banks receiving deposits of public funds from states and municipalities to Pledge securities to secure such deposits. 2he issistant Secretary reported that these bills were approved by the President on June 26th - ederal and copies have been forwarded to all F information. serve banks for their Cemorandum from Counsel dated June 26th quoting a resolution (3.;. 305) tatroauced by Senator (lass, with further reference to the practice of the State Department to pass upon foreign loans in this country and the Depart- Mentt s alleged interference with the Federal 'eserve 3ystem in the same co nnection. Ordered circulated. :;lemorandum from Counsel dated June 23rd, submitting and commenting. - 4pot a ,, 47,5, a bill introduced by 3enator lass to amend the provisions of the Rational Bank Act and the Federal AeSerVe Act in a number of respects. Ordered circulated and copies sent to the liederal Aeserve banks. 4 . 7/1/30 -7_ ::*emorandum from Counsel datel June 24th, submitting draft of reply to an in(_iuiry made by the L;eneral Accounting Office as to why the agreem3nt for the lease of space in the Otis Building, coverinc- a period of six months fr°1m -:ay I, 1J30, was not executed on the standard form of Government lease. Approved. Lemorandum from Counsel dated June 24th, submitting draft of letter to the Federal eserve Agent at 6t. Louis, in reply to an inquiry whether certain monies paid into a United jtates District Court by private parties Pending the outcome of litigation between them and deposited by the court in a member bank are Liovernment deposits and, therefore, exempt from reserve reyuirents; the propose' reply answering in the negative. Approved. Al1P0iiTS OF STAI1DING Dated, June 26th, .tecommendinQ changes in stock at Federal _:eserve banks as 27th, set forth in the Auxiliary Linute Book of this date. Aecommendations approved. 30th, Dated, June 27th, ,ecommending action on an application for admission of a 3tate bank, subject to the conditions stated in the individual report attached to the application, as set forth in the Auxiliary 1:inute Book of this date. 2ecammendation apnroved. Dated, , I.:ay 13th, .Accriz:Lending approval of the application of ,r. Aawleirrh darner for permission to serve at the same time as director of the Central 2rust Comnany of illinois, Chicago, Ill., as director of 2he Drovers National Bank, Chicago, Ill., and as director of the City National Bank & ?rust Company of itanston, ill. Approved. Dated, June 24th, ,ecomn,ending approval of the application of :„r. Charles A. :ialgreen for permission to serve at the same time as director of the First National Dank of Chicago, Ill., and as director of the Dixon National 3ank of Dixon, Approved. 8 7/1/30 -8- itl--1-1P02SOF STANDING OOLIMI2TE.7,S: (Contid) Dated, June 24th, Dated, June 27th, Recommending approval of the application of :at. illarles 3. Veghte for permission to serve at the same time as director of the New Jersey National Bank & :2rust Company of Newark, N. J., as director of the First National Bank of Jayreville, N. J., and as director and officer of the New Brunswick 2rust ,Ampany of New Brunswick, N. J. Approved. Recommending approval of the application of I:1r. John B. Byrne for permission to serve at the same time as director and officer of the Hartford-Connecticut Trust Company, Hartford, Conn., as director of the First National Bank of Middletown, Conn., and as director of the First National Bank of Meriden, Conn. Approved. The meeting adjourned at 11:45 a.m. Assistant Secretary. A pprOyed: Vice Governor.
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