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310 A meeting of the Federal Reserve Board was held in the office of the 4cleral Reserve Board on Thursday, March 28, 1929 at 11:00 a.m. PilESEYT: Governor Young Platt L'r. Harlin Mr. James Mr. Cunninham Mr. Noell, Asst. Secretary Mr. McClelland, Asst. Secretary The minutes of the meetings of the Federal Reserve Board held on March 26th and 27th were read and approved. Letter dated :.:arch 26th from the Secretary of the Federal Reserve Bank Of aleveland, advising of the establishment on March 25th of the following schechlle of rates for purchases of acceptances: Bankers Acceptances: 1 to 45 days 46 to 120 days 121 to 180 days Trade Acceptances 5 5 5 5 3/8/, 1/2 3/4/, 3/4'/; Noted, with approval, Mr. James voting "no". Telegram dated March 26th from the Governor of the Federal Reserve Bank Of IT; ' - 44eapoli5, advising of the establishment on that date of the following 811(14ule of rates for purchases of acceptances: Bankers Acceptances: 1 to 45 days 46 to 120 days 121 to 180 days Repurchase Trade Acceptances - 5 3/8% 51/2; 5 3/4 b l/2 5 6/4,0 Noted, with approval, Yr. James voting "no". 1% Letter dated Larch 25th from the Secretary of the Federal Reserve Bank Of 1;.. all8as City, advising of the establishment on that date of the following (II all -2- 3/28/29 schedule of rates for purchases of bankers acceptances: 1 to 45 days 46 to 120 days 121 to 180 days 11••• 5 3/8,; 5 1/27; 5 3/4/0 Noted, with approval, Mr. James voting "no". Reserve Bank of Telegram dated March 26th from the Chairman of the Federal San the following schedFrancisco, advising of the establishment on that date of ule Of rates for purchases of bankers acceptances: 5 5 5 5 1 to 45 days 46 to 120 days 121 to 180 days Repurchase 3/8/; 1/2/0 3/4/0 1/2;0' Noted, with approval, Mr. James voting "no". of the Currency, Memorandum dated :.:arch 27th from the Deputy Comptroller upon all nationaaviaing that on Friday, March 29th, the Comptroller will call Hawaii, and all banks in al banks in the continental United States, Alaska and business the District of Columbia, for reports of condition as of the close of Wsdaesday, March 27th. Noted, and authority granted for a call for reports of condition from state member banks as of the same date. submitted by the 'lieport of Committee on Salaries and Exrenditures on list , Pea. 'rai directors of that eserve Bank of Chicago of employees for whom the bellk authorized leaves of absence with pay, on account of illness, during the since Pel 'iod February 21st to March 21st, where the total of such absences Board's Committee recommending "flilarY 1 9 1929 has exceeded thirty days; the aPProval of the salary paments involved. Approved. 812 3/28/29 -3- Letter dated March 21st from the Chairman of the Federal deserve Bank 3an Francisco, advising of acceotance of the resimation of rr. J. Y. :Jartori director of tne Los Angeles Branch and the appointment of Yr. F. J. Belcher, President of the First National Bank and Trust Cornany, San Diego, or the 44expired term ending March 31, 1929. Noted. The ssistant Secretary then reported that representatives of the Llbany member banks Jill be in :;ashington on Jpril 1st for the hearing regarding the termination Of -lbany as a reserve city, and that the Federal aeserve Bank of lIevi York will be represented at the hearing by Deputy Governor “xinas. 1:oted. :_arch deport of Committee on salaries and Expenditures on letter dated 2211A . Irom the Deputy Governor of the Fegeral deserve Bank of New York, recom- Illencting the promotion in rrrade, effective L.nril 1, 1929, of 1:_r. Donald itroeble Position where the grade is in excess of ,2,500 per annum, and. also recam- t° Meriai . ,ng the ,:staulishment of a new position of assistant examiner in the Bank aminations Department; the Committee reporting that both recommendations are lii acL:ordanco with the salary Plan in effect at the New York bank and should be '411Proved by the Board. .1.-,Tproved. Mr. Cunningham referred to the following statement, attributed to Clharles 2. Mitchell, President 01 the National city Bank of New York and Class D. lreCtOr Wednesday's issue of of the Federal deserve Bank of Eew York, in the Is *ew York Herald Tribune: we feel "So far as this institution is concerned, to any paramount that we have an obligation which is 4-0.4 t_)1.t) 3/28/29 -4- "Federal Reserve warning, or anything else, to avert, so far as lies within our po,rer, any dangerous crisis in the money market. While we are averse to resorting to rediscounting for the purpose of making a profit in the call market, we certainly would not stand by and see a situation arise where money became impossible to secure at any price." :4r. Cunningham inquired whether any action had been taken by the Federal 1"ve Bank of New York, regarding the statement, and the Governor stated that he dicl not think anything had been done. Cunnim-ham requested that inquiry be Ina(10 Of the Federal Reserve Bank of New York for an exact copy of the state" The Governor suggested that as he is well acouainted with 41°11 1361'83 41111Y, he will be glaa to call on the telephone and ask self to furnish the Board with a copy. L'Atchell him- The Governor called attention to the fact that the directors of both the Pleasral -- Reserve Banks of New York and Chicago are in session today and may take actio regardin their rediscount rates. Accordingly, at 11: 5 a.m. the Board recessed, and reconvened at 3:10 p.m. With the same members present as attended the morning session, and in addition the Secretary Pole. of the Treasury and nr. Mellon took the chair. he Governor reported advice received over the telephone from the Governor the Pederal Reserve Bank of New York that the board of directors of the bank at its me,Aing this afternoon again voted to establish a rediscount rate of 6",; °A all classes of paper of all maturities, subject to approval or disapproval 17 the Board today. A.fter discussion, Mr. Platt moved that the rate of 6„; established by the directors of the New York bank approved, on all classes of paper of all maturities be 3/28/29 314 effective tomorrow, March 29th. Yr. James moved, as a substitute, "That the Federal Reserve Bank of New York be advised that the Federal Reserve Board has received the advice that the directors of that bank have established a rediscount rate of 6d, with the understanding, however, that their action is predicated upon approval or disapproval by the Federal Reserve Board today, and that the Board disapproves the action of the New York directors and has determined that the rate of the bank be 5,,." Mr. James' 'substitute motion, being nut by the Chair was carried, the members voting as follows: The Chairman, "aye" Governor Young, "aye" Mr. Hamlin, "aye" Mr. James, "aye" Mr. Cunningham, "aye" Pole, "aye" Mr. Platt, "no" The Governor stated that he voted "aye", not because he is opposed to an increase in rate at this time, but to support the policy of the majority of the Board until he is satisfied that it can not bring about the desired results. The Chairman stated that Governor Young's statement also explains his own position. The Governor was later called from the meeting to talk with Governor 4gal Of the Federhl Reserve Bank of Chicago, who advised him that the ' to'°113 Of his bank, at their adjourned meeting today, took no action situation there %rige the rate of the bank, but that a letter regarding the 18 being addressed to the Board. Bank Telegram dated March 28th from the Chairman of the Federal Reserve Ji of .4nsas City, advising that the board of directors at a meeting today made 40 ch. (111 and purchase. in the bank's existing schedule of rates of discount Notea, with approval, Mr. Platt voting "no". 315 3/28/29 OMR OPP The Assistant Secretary then presented a memorandum from the Comptroller Of the Currency requesting, in connection with the redemption of old size Federal Reserve notes beginning July 1st, that the Board approve the employment Of three additional Money Counters with salary at the rate of 41200 per annum each in the Issue and Redemption Division; the Comptroller pointing out that it will be necessary for the Board to authorize an expenditure of only .3,000 for the remainder of the year. Upon recommendation of the Committee on Salaries and Expenditures, it was voted to authorize an increase of3,000 in the "Personal Services" budget of the Division for the year. OF UilTiDINGOOMMITTES: bated, March 27th, Dated, March 26th, Dated., Larch 26th, Aecommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. ecommending refusal of an application for admission Of a state bank, as set forth in the Auxiliary Minute Book of this date. .Aecommendation approved. Aecommending approval of the application of Mr. Charles A. McCloud for permission to serve at the same time as director of the First National Bank, Lincoln, Nebraska, as director and officer of The First National bank of York, York, Nebraska and as director and officer of the First National Bank, Bradshaw, Nebraska. Approved. The meqin adjourned at 4:00 p.m. Assistant Secretary. 113PrOveci: ' Govern or.
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