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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 Monday, June 3, 1929 at 11:00 et,m, PRESENT: Governor Young Mr. Platt Mr. James Mr. Cunningham Mr. McClelland, Asst. Secretary The Governor stated that a meeting of the Board was to have been held at this hour but due to the absence of one or two members suggested that the Executive Committee act upon certain routine matters* The reading of the minutes of the meetings of the Board held on May 28th, 29th and June 1st was dispensed with. Telegram dated May 31st from the Chairman of the Federal Reserve Bank of Chicago, advising that the Executive Committee of the bank, under authority of the board of directors, on that date voted to establish a rediscount rate of 64 ou all classes of paper of all maturities, effective the first business (4kY following that on which approved by the Federal Reserve Board; this action °t the committee to be automatically rescinded in case the Board does not apProve before the close of business on June 6th. The Assistant Secretary re- that under the authority granted by the Board on. May 23rd, the Vice Governor advised the Chicago bank that the Board had taken the action of its lleeative Committee under review and, in the meantime, had determinei the rate cn the bank to be 5-/;* Upon motion, the action of the Vice Governor was ratified. Letter dated May 29th from the Secretary of the Federal Reserve Bank °t New York, confirming telephone advice on that date that the board of di- 7i#1 I) )t) -2- 6/3/29 rectors made no change in the bank's e)'isting schedule of rates of discount and Purchase, Without objection, noted with approval. Letter dated :ay 28th from the Chairman of the iederal reserve Bank of Atlanta, with further reference to the Board's letter of May 2nd, requesting further and fuller cooperation by the Federal Reserve bank and member banks in the policy of preventing the misuse of the discount facilities of the System; the letter stating that the Governor of the Federal Aeserve bank has communicated with each of the larger member banks in the district was re- discounting, asking specific information regarding its loans on securities, alld has received thirty replies which bear out the statement that these banks are using Federal Reserve funds for commercial, industrial and agricultural PlIrposes, and that they are in accord with the policy of the Federal deserve Board and the Atlanta bank. Copies of the above latter having previously been furnished to the individual mombers of the Board, it was, upon motion, noted. amount of Matter approved on initials on May 31st, namely, bond in the 45°9300, executed under date of May 25th, by Lir. A. L. Wilson, recently desigbated as Acting Assistant Federal Reserve Agent at the Detroit Branch for a temporary period. Upon motion, the bond was formally approved. 450,000 each, executThe Secretary then presented bonds in the amount of ed iltder date of Eay 27th and 29th by Messrs. W. E. Miller, Thomas Bowron and 144c1 in P. Federal lieserve Agents Davis, recently designated as Acting Assistant temporary periods. at the New Orleans, Birmingham and Nashville Branches for 534 -3_ 6/3/29 Approved. Memorandum from Counsel dated LIa5 27th, submitting for the information of the Board, copies of two resolutions recently introduced in the Senate; one, S. R. 67, directing the Federal Reserve Board to advise the Senate what action it has taken, or proposed to take, to remedy "the existing unsettled condition relating to interest rates and credits", and the other, S. Li. 71, calling for 44 extensive investigation of the Federal reserve System by the Committee on Bankin and Currency of the Senate or a duly authorized sub-committee thereof. Noted. Report of Committee on Salaries and Expenditures on list submitted by the Federal Reserve Bank of Chicago of employees for whom the directors of that bank approved leaves of absence with pay, on account of illness, during the period April 26th to May 23rd, where the total of such absences since JanuarY 1. 1.29 has exceeded thirt days; the Board's Committee recommenaing approval of the salary payments involved. Approved. Memorandum from Counsel dated June 1st submitting, in accordance with the action of the Board at its meeting on May 23rd, draft of a letter to all Pederal Reserve Agents transmitting a copy of that addressed to the Board by the Assistant Attorney General on the subject of the preservation of records bY Member banks; the circular letter suggesting that the attention of member 13411ka be called to the communication of the Depar lent of Justice. Upon motion, the circular letter was 'approved. The Assistant Secretary then submitted the application of the Security tilte Bank and Trust Company, Beaumont, Texas, for membership in the Federal 6/3/29 Reserve System and for 81 shares of stock in the Federal Reserve Bank of Dallas. He stated that although Yr. Platt, Chairman of the Committee on Examinations, recommends approval of the application, Mr. Cunningham, the other member of the Committee, does not concur because of the fact that the bank is authorized Ilader its charter and by the laws of Texas, in addition to the usual banking and trust powers, to guarantee stocks, bills of exchange, bonds and mortgages, and. other securities. Ir. Cunningham stated that although several Texas institutions having similar power have been admitted to the 6ystem, the Board recently has been imposing special conditions to cover such unusual powers of banks in other states applying for membership in the System. After discussion, upon motion, it was voted to address a letter to the Federal Reserve Agent t jallas, advising of the recent policy of the Board, inquiring whether the power mentioned is being exercised by the Security State Bank and Trust Company of Beaumont and, if not, requesting an expression of his views as to the advisability of imposing a special condition of membership to cover. Discussion then ensued on the question of the policy which should be pu.r84ed by the Federal Reserve System in the present credit situation, which was continued after Messrs. Mellon and Miller had joinea the meeting and the 3eerst41V of the Treasury had taken the Chair. azn^. -...4,4;iTS OF STANDING COMMITTEES: D ated, May 29th, Recommending 31st, forth in the June 3rd, Detect, May 28th, Recommending set forth in Dated, May 28th, changes in stock at Federal Reserve banks as set Auxiliary Minute Book of this date. Recommendations approved. action on applications for fiduciary powers as the Auxiliary Minute Book of this date. Recommendations approved. Recommending approval of the application of Mr. Ira Jewell Williams for permission to serve at the same time as director of the Penn National Bank, Philadelphia, Pa., and as director of the Continental-Equitable Title and Trust Company, Philadelphia, Pa. Approved. if1 C2., 6/3/29 -5- APOIITS OF STANDING COMMITTEES: (Cont'd) Dated, May 29th, Dated, May 31st, Dated, May 31st, Dated, May 31st, 11 tad, May 31st, " Recommending approval of the application of Yr. George B. St. George for permission to serve at the same time as director of the Fidelity Trust Company, New York, N. Y., and as director of the First National Bank, New York, N. Y. Approved. of the application of Mr. John H. approval ng Recommendi to serve at the same time as dipermission for Thatcher Bank, Pueblo, Colorado and as National First the rector of Bank, Trinidad, Colorado. National First the director of Approved. Recommending approval of the arplication of Mr. Isaac Kershaw for permission to serve at the same time as director of the Bala-Cynwyd National Bank, Bala-Cynwyd, pa., and as director of the Hamilton Trust Company, Philadelphia, Pa. Approved. of the application of Yr. Samuel N. approval Recommending serve at the same time as director to Rhodes for permission Bank, Ridley Park, Pa., and as National of the Ridley Park Trust Company, Media, Pa. and Title director of the Media Approved. Recommending approval of the application of Mr. Alva B. Adams for permission to serve at the same time as director and officer of the Pueblo Savings and Trust Company, Pueblo, Colorado and as director and officer of the :iestern National Bank, Pueblo, Colorado. Approved. The meeting adjourned at 1:00 p.m. Assistant Secretary. A Pproved: a Al eovernor•
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