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r<;,,:iI 'it_ Upon call of the Governor, a special meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, March 19, 1929 at 3:45 p.m. PRESElvT: Governor Young Mr. Platt Yr. Hamlin Mr. Miller Mr. James Yr. Cunningham McClelland, Asst. Secretary The Governor stated that he called the meeting at the request of Dr. Utile r9who submitted a proposed telegram to the Chairman of the Federal Re"a Bank of San Francisco as a substitute for the letter, discussed at the 14eat 4 this morning,with respect to the unsatisfactory results which have o btained by that bank in dealing with the present credit situation. discussion ensued, during Which the proposed telegram was amended to read as follows: "In going over reports since the Board's letter of February 2nd, the results obtained by your bank, notably in the City of San Francisco, do not appear to be commensurate with those of most of the other Districts. You still appear to have several banks that are simultaneously borvowers from your bank and lenders of speculative security credit. The Board desires to have your officers and directors consider the situation further and advise it whether there are special circumstances affecting the condition or operation of those of your banks which are simultaneously borrowers and lenders, which would explain why better results are not sbown by your bank. By order of the Federal Reserve Board." , After discussion upon motion the telegram, as quoted above, was approved, Governor Young and Mr. Platt not voting. 3/19/29 _2- Mr. Miller then submitted a revision of the letter to the Governors Of all Federal Reserve banks suggested by him at the morning meeting, reguesting consideration by the individual banks ard discussion at the forthefting Conference of Governors of the question of a regulation which might be issued by the Board, under the authority of the Federal Reserve Act as i nterpreted in the memorandum from the Board's General Counsel dated larch 7th ma the subject of the power of the Board to enforce the principles regarding the proper use of the credit facilities of the Federal Reserve System laid down by the Board in its letter to all Federal Reserve banks under date Of February 2nd. A discussion ensued with respect to the character of regulation which might be adopted under the opinion referred to. During the discussion, Yr. Wyatt, the Board's General Counsel was called into the room and questioned on the subject. .At the conclusion of the discussion, it nas the consensus of opinion that action on the matter should be deferred. The meeting adjourned at 5:15 p.m. Assistant Secretary* APProve
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