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A meeting of the Federal Reserve Board was held in the office of the Pederai Reserve Board on Tuesday, June 30, 1931, at 11:30 a. m. PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. Tames 11±. Pole Mr. McClelland, Assistant Secretary. The Governor presented draft of reply to telegram dated Tune 27th from C°Ingressman B. 14 GhiperCield, reouesting telegraphic advice as to the authority under which the Federal Reserve bank joins in a loan to the German Reichsbank. A discussion ensued during which the proposed reply was amended a° as to advise that the Federal Reserve bark has agreed to purchase bills of exchange from the Reichsbank under authority of Section 14 of the Federal Reserve Act. At the conclusion of the discussion, upon, motion, the proposed reply as amended, was approved. The Governor then presented the following telegram dated June 30th troM the Governor of the Federal Reserve Bank of New York: "Confirming my discussions with the Board on Tune 26 our Board of Directors at its meeting of Tune 25 voted to authorize the officers, if and when requested and if and when it seems to them advisable, and subject to the approval of the Federal Reserve Board, to arrange for the participation of this bank in a credit to the National Bank of Hungary by agreeing to purchase n?t to exceed the equivalent of S5,000,000 of prime commercial bills endorsed or guaranteed by the National Bank of Hungary, it beina. understood that some of the Central Banks in Europe would Participate in the credit and that this bank's participation would not, in any case, be for more than one-third of the total . credit. I assume that you will forward to me for our records confirmation of the Board's approval of the action taken by our clirectors. As I informed you yesterday negotiations relating to this proposed credit are still going forward and I expect will be concluded today." At the conclusion of the discussion which ensued, the following telegram to the Governor of the Federal Reserve Bank of New York was approved and ordered transmitted: Ls. 2-10 6/30/31 -2- "Your telegram today. Federal Reserve Board has voted to approve action of Board of Directors of the Federal Reserve Bank of New York in authorizing the officers of the bank if and when it seems to them advisable QUOTE to arrange for the participation of this bank in a credit to the National Bank of Hungary by agreeing to Purchase not to exceed the equivalent of 5,000,000 of prime commercial bills endorsed or guaranteed by the National Bank of Hungary, it being understood that son of the central banks in Europe would participate in the credit and that this bank's Participation would not, in any case, be for more than one third of the total credit UNQUOTE STOP In approving this authorization the Federal Reserve Board does so with the understanding that the negotiations are being carried on at the present time on the basis of a maximum participation of 4,000,000 Stop It is understood further that proper safeguards will be taken for the custody of any bills purchased for the account of the Federal Reserve Bank of New York, and that all further details of the transaction will be arranged along the lines which have been usual in other like credits." The minutes of the meetings of the Federal Reserve Board held on Jute 23rd and 24th were approved. The Assistant Secretary then presented the following matters of btlabless which were considered by the Board and acted upon as set out below: Telegram dated June 26th from the Chairman of the Federal Reserve Bank °Ib Qhioago, advising that the Board of Directors, at its meeting on that date, letcles no change in the bank's existing schedule of rates of discount and 134rchase, Without objection, noted with approval. Matter approved on initials by the Executive Committee on June 26th, 114151Y, telegram dated June 26th from the Assistant Federal Reserve Agent at Chicago, requesting approval of the temporary designation of Mr. Henry B. 8171. M an employee of the bank, as assistant examiner for examination work III DeI. 8 '"°inea, Iowa, during the week of June 29th. Formally approved. Letter dated June 27th from the Secretary of the Federal Reserve Bank /30 8to1j, advising that in accordance with the usual practice of the bank, the b _ uard of directors has voted to omit the meeting which would ordinarily Of 11 6/30/31 be -3- held on Wednesday, July 1st, and to hold the next regular meeting on Wednesday, ally 15th. Noted. Memorandum dated June 26th from the Director of the Division of Research and Statistics, recommending that Miss Mary M. Maroney, an employee or the Division, be granted leave of absence without pay during the month of Approved. Letter dated Tune 29th from the Governor of the Federal Reserve Bank "New York, advising of receipt of a cable from the President of the Reichsba4 expressing his thanks for the assistance rendered by the Federal Reserve SYsteM during the present period of strain on the Reichsbank. Noted. Letter dated June 19th from the chairman of the Federal Reserve Bank Of Trancisco, advising that in compliance with the wishes of the Board as ezpre seed in its letter of Tune 11th, he has submitted his resignation as ?res ident of the Union Oil Associates. Noted. Letter dated June 26th from the Federal Reserve Agent at St. Louis, 84vising that in accordance with the instructions contained in the Board's letter Of April 22nd, an examiner has checked the deposits of the Board of 4leetion of St. Louis held by the Security National Bank Savings and Trust 1ly of ' C°1/113e St. Louis, and that on the basis of revised reports of reserve l'ecIllirements furnished by the bank, penalties amounting to ,:;3,430.85 for l'eaerve deficiencies from February 11th to May 1st have been charged against its ' serve account, the deposits having been correctly reported since the latter date. Noted. 6/50/31 -4Letter dated June 29th from the Vice President of the First Federal Foreign Banking Corporation, advising that at the meeting of the directors on Xune 29th, the Counsel and officers of the corporation were authorized to take Proper steps for a reduction in capital; the letter also stating that formal aPplication will later be forwarded to the Board in accordance with its d irections. Upon motion, the letter was referred to Counsel. Memorandum from Coun5e1 dated June 30th, prepared in accordance with the action taken at the meeting on Tune 26th, with regard to ownership bY the Mercantile-Courierce Bank and Trust Company of St. Louis of the stock °I' the Mercantile-Commerce National Bank; the memorandum suggesting the courses Of action which the Board might follow in the matter. After some discussion, Counsel's memorandum was ordered circulated and the question was made special order of business for the meeting on July 7th. FITIPC2T'3 1)ated, June 26th 27th 29th 30th bat June 27th Dated, June 29th COP3.IITT.S: Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on an application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendation approved, Recommending approval of the application of Tlr. Williafli L. Sweet, for permission to serve at the same time as director of the Providence National Bank of Providence, R. I., and as a member of the Board of KnnAgers of the Exchange Branch, Industrial Trust Co. of Providence, H. I. Approved. ' The meeting adjourned at 12:30 p. m. APprOVed: Assistant Secretary. I. Atha:GLARY MINUTES (rune 30, 1931) Reports of Standing Committee dated Tune 26th, 27th, 29th and 30th, tseoMmending changes in stock at Federal Reserve Banks, approved as follows: A 1 ....P.t.tions for ORIGINAL Stock: 1)rittriot 1 st Natiorel Bank in Reading, Reading, Mass. No. 2. Pirst Natia.i. Bank in Avon-by-the-Sea, N. I. Virst National Bank in Montgomery, Montgomery, N.Y. ict No. 9. Natiorea Bfuric in Wheaton, Minnesota. p..1.strict No. 10. Zirst BnnIc in Ord, Ord, Nebraska. Shares 120 120 36 30 66 36 36 45 Total 45 267 lioations for SURRENDER of Stock: Pails National BFolic, Kezar Falls: Maine. (Decrease in surplus) llortal National Bank Rockland Maine. (V.L..Abs. by Rocklan.d National Bank) Wilton National Bank, Wilton, N. H. (Decrease in surplus) 21 120 9 150 -al Bank, Altoona: Pa. (Insolvent) 375 375 eitY Na•—tror---3.8.1 Bank, Bessemer, Ala. (Insolvent) 78 78 l'irsto. Bank, Crarit N. Dak. (Insolvent) 21 23. No. 11. 1Pirst Natio-2'7—a Bank, Borger: t Borger Texas` (V.L.Abs. by State Bank) 441bertY National Bank, Paris, Texas. (V.L.Suc. by Liberty National Bank in. Paris) 34 8eocal. Distriot No. 12* .Pirst National Bank, Mt. bagel : Oregon. (V.L.Abs. bY Bank of Mt. Angel) 95 129 22 Total 22 775 6/50/31 -2- Report of Standing Committee dated Arne 27th, recommending action on an aPplication for fiduciary powers by the following bank: APPROVED: DISTRICT NO. 6. ALABAMA: First National BMOC in Decatur. (3358. Powers 1, 2, 3, 6, and 7) Assistant Secretary. Prove
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