Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, June 6, 1927, Volume 14, Part 2

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Upon call of the Governor, a meeting of the Federal Reserve Board
waS held in
the office of the Federal Reserve Board on Monday, June 6,
1927) at 3:10 p.m.
PRESENT:

PRESENT ALSO:

The Chairman
Governor Crissinger
Mr. Platt
Mt. Egmlin
Mr. James
Mr. Cunningham
Mr• McIntosh
Mr. Eddy, Secretary
Mt. McClelland, Assistant Secretary
Mr. Goldenweiser, Director, Division of
Research and Stc.tistics

The Chairman stated that the meeting had been called for the purpose
c)f considering the following letter addressed to the Board by the Deputy
40vernor of the Federal Reserve Bank of New York:
"Washington, D. C., June 6, 1927.

!Ay dear Governor:
"The Nat ional Bank of Poland has advi sed us that they de83-re to obtain from the various banks of issue an arrangement
for one year for the sale, or in some cases the pledge, of
Pz:lrrie commercial bills up to the equivalent of twenty-five
1113.11ion dollars, in connection with the Polish program to
retabilize the zloty on a gold exchange basis.
"The directors of the Federal Reserve Bank of New York
have expressed their desire to be helpful in connection with
the efforts of Poland
to return to a gold basis, and after
careful ccnsideration they have authorized the officers of
the bank to arrange, for a period of
one year, for the purchase of not to exceed the equivalent of ten million dollars
ce prime commercial bills bearing at least two names and endorsed or guaranteed by the Bank of Poland.
"We should very much appreciate the Board's approval of

the action of our directors.




Very truly yours,
(Signed) GEORGE L. Iit:RRI,c,ON,
Deputy Governor."

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6/6A7

-2_

Mr. Hvanlin moved that the Board approve the
action of the directors of the Federal Reserve
Bank of New York, as set forth in the above letter,
with the understanding that all Federal Reserve
banks desiring to do so may rarticipate in the
transaction referred to therein.
Mr. James referred to the discussion by the
Board at the meeting on October 5, 1926 with reference to the proposal of the Federal Reserve Bank
of New York to charge a commission of 1/2 of 1%
in connection with a similar transaction between
the New York bank and the National Bank of Belgium,
and inquired whether the present proposal provided
for a commission to be charged against the Bank of
Poland.
Governor Cricsinger stated that from conversation this morning with Deputy Governor Harrison,
he understood that a =mission of 1A of 1. 7c would
be charged. He also stated that he understood that
all Federal Reserve banks would participate in any
commission and any bills purchased from the Bank
of Poland.
After discussion, Mr. Eamlin ts motion
was put by the Chair and carried.

The meeting adjourned at 3:30 p.m.

Secretary
Apprcrved:




Chairnan