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594 A meeting of the Executive Committee of the .Zederal .,eserve Board was held in the office of the Federal Reserve Board on Londay, June 23, 1930 at 4:15 p.m. RESENT: Vice uovernor Platt 11r. Hamlin Mr. James Mr. Cunningham Mr. McClelland, Asst. Secretary Report of Committee on Salaries and Expenditures on memorandum dated June 2ord, submitting dividend resolutions of the Federal Reserve banks, together with the usual statements in regard to probable losses on paper of failed and over-extended banks, and pointing out that four banks Boston, Richmond, Kansas City and San Francisco - will not have sufficient earnings to pay accrued dividends and, consequently, a portion of the dividend payments of these banks will have to be made out of surplus. The Assistant Secretary called attention to the fact that at the meeting of the Board on June 9th the Executive Committee was authorized to approve payment of dividends out of surplus by any Federal Reserve bank which may find it necessary to do so. Upon recommendation of the Committee on Salaries and Expenditures, it was then voted to authorize the payment of a semi-annual dividend by each Federal Reserve bank. Telegram dated June 21st from the Deputy Governor of the Federal Reserve 3ank of Boston and letter dated June 20th from the Federal Reserve Agent at Dallas, both advising of the establishment on June 20th of the following rates for purchases of bankers acceptances: 1 to 90 days 91 to 120 days 121 to 180 days Repurchase 2% 2 1/8;4 2 3/8,4 2 1/6"; dithoat objection, noted with approval. 595 -2- 6/23/30 deserve Bank Letter dated June 20th from the Chairman of the Federal following schedule of Kansas City, advising of the establishment of the of rates for purchases of bankers acceptances: 1 to 90 days 91 to 120 days 121 to 180 days - 2 1/8i, 2 3/8-i; Vathout objection, noted with approval. letter dated deport of Committee an Salaries and Expenditures on e Bank of New York, adJune 17th from the Governor of the Federal deserv ized the employvising that the board of directors of the bank has author at a salary, subject ment of Mr. Theodore M. Crisp as Assistant Counsel the Committee recomto the approval of the Board, of v6,500 per annum; mending approval of the salary. Approved, ing to letter deport of Committee on Salaries and Expenditures referr e Bank of New York dated June 20th from the Chairman of the Federal Reserv t of the position and recommending that the Board approve the establishmen Bank of New York and of Assistant General Auditor at the Federal deserve Mr. George d. a salary of „;6,750 per annum, effective July 1, 1930, for tee also recommendFerguson who is to occupy the new position; the Commit Er. H. V. Linniman ing that the Board note with approval the promotion of a salary of .;4,200 to the position of Chief of the Auditing Department at the Auditinz Deand Er. L. Crosby to the position of Assistant Chief of July 1st. partment at a salary of „;3,600 per annum, both effective Upon motion, the recommendations of the Committee were approved. 596 6/26/30 Heport of Committee on Salaries and Expenditures on letter dated June 21st from the Federal eserve Agent of the Federal Aeserve Bank of Atlanta, advising that subject to the approval of the Board the 2,xecutive Committee of the bank has ratified the action of the Lxecutive Committee of the New Orleans Branch in approving for payment a bill of Aalph J. Schwarz, attorney for services in connection ,15k)0 rendered by ....r. with the liquidation of the indebtedness of the closed First National Bank of 4-icadia Parish, crowley, La.; the Board's Committee also recommending approval. Approved. Llemorandum from Counsel dated June 20th, submitting draft of letter to -essrs. Shearman and Sterling, attorneys for the National City Bank of New Z'ork, with regard to the re-opening under date of Lay 2, 1950 of a branch which was opened in Buenos Aires on April 15, 1919, pursuant to the Board's order of January 29, 1919, and was closed on January 1, 1922; the letter stating that the Board regards the closing of this branch in 1922 as an abandonment of it and. a voluntary relinquishment by the National City Bank of the right granted to it by the Board's order of 1919 and that a new application should be filed for permission of the 3oard covering the establishment of the branch recently opened* Upon motion, the letter submitted by Counsel was approved. ..emorandum from Counsel dated June 13th, submitting draft of letter (11 to the President of the Commercial National Bank, '_adison, ,risconsin, with regard to the advertisement of that institution that it is 'Affiliated with 597 -4- 6/23/30 the U. S. Federal iieserve bank"; the reply stating that while the 3oard would much prefer that a member Dank advertise that it is a ''ember of the Federal Aeserve System' it has no material grounds for objecting to the phrase "Affiliated iith the Federal Seserve Bank" although the use of the words "U.S." is objectionable. fter discussion, upon motion, the proposed letter was approved. Llemorandum from Jounsel dated tune 17th, submitting copy of H. R. 10211 providing for a change in the distribution of earnings of the Federal aeserve banks ahich was favorably reported by the Eouse Committee on Banking and Jurrency on June 14th; Jounsel pointing out that although the bill was not reported to the Board, the Board may wish to go on record as opposin7; it either at this time or ;hen the bill is brought up for a vote in the liouse of ,epresentatives. In his memorandum, counsel pointed out, however, that if the Board should wish to oppose the bill it would be in a much better position to do so if it had a specific substitute to offer. lifter discussion, upon motion, it was voted to refer the bill to the Jhief of the Division of Bank Operations for a report and also to transmit a copy thereof to each Federal deserve bank for comment* AEPDX23 OF 3TAILDING UO2.2:122EES: Dated, June 23rd, Dated, June 17th, Dated, dune 19th, Aecommending a change in stock at a Federal Aeserve Bank as set forth in the Auxiliary Minute Book of this date. .decammendation approved* Aecommending action on applications for fiduciary powers as set forth in the Auxiliary l_inute Book of this date. liecammendations approved. Aecommending approval of the application of Lr. D. regg LcKee for permission to serve at the same time as director and officer of the Peoples-Pittsburgh 2rust 598 -5- 6/25/30 a:I-MATS OF STANDING COMMITTEES: on t d Company of Pittsburgh, Pa., and as director and officer of the Terminal Trust Company of Pittsburgh, Pa. Approved. The meeting adjourned at 4:50 p.m. Assistant Approved: Vice ,.;.overnor. (11 Secretary.
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