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316 of the meeting of the Federal Ieseie Board was hell in the office Federal _wserve Board on Friday, :,:arch 29, 1929 at 11:1:) a.m. Pit:]8ENT: Lovernor Young Yr. Hamlin :r. Mr. James Cunningham roell, Asst. -secretary Hr. ::cclelland, -sst. secretary yesterday at :A11.3r reporteu to the Board in detail the discussion the meeting of the board of directors of the Federal ieserve Sank of Hew York, which is being -" ue attended, regarding the credit situation, the nolicw W4 in 1, 1_ rs of that bank I°11°Ived in uealinr with it, and the nosition of the directo time. that an increase in rate is necessary and advisable at this re He also while in New York. Ported conversations which he had with individual bankers The principal sugestion comincr out of 1:r. Filler's visit to New York was that the Federal i,..dvisory Council, or at least the 7]xecutive Committee the Council, be called in and consulted by the Board as an intermediary th -onnection with the diiference of opinion which exists between the majority to the feces°f the Board and the directors of the Yew York Bank, with respect sit/ for an incrase in discount rates. The Governor reported that he talked with Er. Miller, while he was in 1.4111/ York yesterday, and in reply to an inquiry as to what, if any, action had been taken by the Board with rep:ard to newspaper rely)rts of the statement made 131 1:r. Charles C. Mitchell, advised him of the discussion of the matter at the Ineeting Yesterday. i°n th,L,t exeresse he stated that inasmuch as Hr. Miller the opin- should be in the nature of an ofany inquiry made of Mr. Mitchell would did not, as it was understood he uolTraunieation from the Board he at the Mitchell over the telephone. meeting yesterday, communicate with Ix. 41.1 t 3/29/29 f-Aq ( -2- discussion ensued during which the Governor questioned the advisability Of the Board making a formal inquiry, unless it is disposed and prepared to take . lurther action in the event the statement is confirmed. t 1:15 p.m., the meeting recessed and reconvened at 2:45 p.m., Mr. Pole "being present. 41 The discussion was resumed and it was the consensus of opinion, that unless the Board feels that the statement made by Mr. Mitchell should be ignored, the least it can do at this time is to ask for a confirmation of the statement quoted in the newspapers, or for a correct copy of Mr. Mitchell's statement in the event he was incorrectly quoted. It was felt that the question of further action to be taken by the Board should await a reply to its inquiry. At the conclusion of the discussion, upon motion, it was voted to address a letter to Lr. Mitchell, as follows: "The New York Herald Tribune of Wednesday, March 27, Published the following statement attributed to you: 'So far as this institution is concerned, we feel that we have an obligation which is paramount to any Federal Reserve warning, or anything else, to avert, so far as lies within our power, any dangerous crisis in the money market. ihile we are averse to resorting to rediscounting for the purpose of making a profit in the call market., we certainly would not stand oy and see a situation arise where money became impossible to secure at any price.' At the request of the Federal Reserve board and for its information, I would appreciate it very much if you would lot ow whether you were correctly quoted." The meeting adjourned at 5:15 p.m. „e&70 4i/7 /, 2ssistant 3ecretary. APProved: Governor
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