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0 A meeting of the Federal Reserve Board wu- held in the office of the Pectoral Reserve Board on Wednesday, March 13, 1929 at 11:00 o'clock. PRESENT: Governor Young Mr. Hamlin Mr. Miller mr. James Mr. Ounninptam Mr. Noell, Asst. Secretary Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on March 12th ' l ere read and approved, as amended. Memorandum dated March 13th from the Chief Examiner, recommending that lir '4. iq Chamberlin, Assistant Examiner, be granted a six months' leave of obBelic e beginning on or about April 1st, without pay, on account of ill health. Approved. aeport of Executive Committee on letter dated March 11th from the Compt'011e r °f tor xa the Currency, recommending approval of a salary of c6,000 per annum tiorial Bank Examiner Harold W. Black, assigned to the Second Federal Restrict; the Board's Committee also recommending approval. Approved. Letter dated March 11th from the Secretary of the Federal Reserve Bank 1.°1°x, advising of vacation periods for the year 1929, fixed by the diNtor, (3f that bank for officers and employees, subject to the approval of the 110atti• Noted, without objection. Letter dated March 12th from the Assistant Federal Reserve Agent at ew 27, 1929, 'advising that effective at the close of business April Npir St Trust and Deposit Company, Syracuse, N. Y., a member bank, plans to 3/13/29 -2- absorb the Liberty isrational Bank and Trust Company and the Third National Bank, bt)th of the same city. Noted. The Governor then reported a telephone conversation with Governor 11c1)°11gal Of the Federal Reserve Bank of Chicago, who advised that at a meet°f the Executive Committee of the bank held on Monday, it was felt that 44 illcrease in the rate of that bank is necessary. The Governor stated that he ea_. vlsed Governor LcDougal that he did not believe there had been any change 114,11 attitude of the majority of the Board toward an increase in rate at this time. He also stated that he discussed the matter yesterday :ith Yr. A. H. 74:11, Glass B Director of the Chicago Bank. He stated that Mr. Vogel ap- 411elltlY felt that a rate of 6,3 would be effective in the Seventh District 44a I,, not given much consideration to the possibility of it being necessary to -..erease the rate beyond that point once such a program was inaugurated. Governor Harding of the Federal Reserve Bank of Boston, the Governor stat„ ls satisfied with the results that have been obtained in the First Peaer al -lieserve District through cooperation of the member banks. He then referred generally to the borrowings of member banks through- t)lat -"° 3YStem and pointed out that reluctions have been effected or, at least, o rease in loans has taken place, since the first of the year in nine of then istriats - excepting Chicao, Minneapolis and San Francisco. The larger borrowing from the Federal Reserve Bank of Minneapolis, he sta ted, Is explained to him to be due to an increase in the amount of grain (-I 14 StOr -age in that District which, he stated, is not unusual at this time of reer, although the increase seems to be somewhat pronounced. A general discussion ensued with respect to a memorandum from Counsel ciated Uarch 7th, reporting, in accordance with the action of the Board on 444 ' 1111 5th, as to what powers the Board has under the Federal Reserve Act for the enforcement, should it become necessary, of the principles regarding the Pl‘°Per use of the credit facilities of the Federal Reserve Sstem, laid down 14 tlie Board's letter of February 2nd to all Federal Reserve banks. Particular t"en0e was made to Counsel's statement that the Board could, if it deems it 4175-sable, prescribe a regulation forbidding any Federal Reserve bank to recliacc)1111t for any member bank which at the time has loans outstanding to brokers aealers in stocks, bonds Or other investment securities or has unreasonably 14rgs amounts of speculative loans outstanding to customers secured by stocks, borici s or other investment securities, or the proceeds of which have been or are to be used for the purpose of carrying or trading in such securities'. There was discussion as to the advisability of addressing a circular 4etter to the Federal Reserve banks acquainting them with the position ta e In Counsel's memorandum, but after discussion, it was the consensus of °Pitt 04 that no such communication should be addressed to those Federal Re4ertr. banks which appear to be receiving cooperation from their member banks Pro Ventinr. the misuse of the credit facilities of the System. The matter of obtaining better results in the Seventh and Nelfth Pecle ' 1 41 Iteserve Districts was discussed. (11114 Of There was discussion as to the the Federal communication that might be addressed to the Governor of -4_ 48erve Bank of Chicago, and to other Federal Reserve banks if it should later be deemed advisable, requesting an opportunity for a committee of the Board to 'Itsellss the situation with the directors of the bank. The Assistant Secretary was instructed to furnish each member of the 8°Etr4iwith a form of letter dictated by the Governor, which it was understood 7/01041 be Board tobrought up for further consideration at the meeting of the morrow• STANDING COnMITTEES: Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. I/ated, March 12th, Recommending approval of the application of Mr. R. L. Stone, for permission to serve at the same time as director and officer of the First 'disconsin National Bank, Milwaukee, Wise, and as director and officer of the Second Wisconsin National Bank, Milwaukee, Wis. Approved. I.:arch 12th, 13th, The meeting adjourned at 1:05 p.m. Assistant Secretary. Approve
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