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A meeting of the Federal Reserve Board was held in the office of the ?lidera1 deserve Board on Thursday, March 7, 1929 at 11:45 a.m. PRESENT: Governor Young Yr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Noell, Asst. Secretary Mr. McClelland, Asst. Secretary The Governor reported a conversation yesterday afternoon with Deputy C"Illor Case of the Federal Reserve Bank of New York, in which Mr. James 41so Participated, regarding the condition of the government bond market. Ilrs "se stated that one bad effect of recent policy is that dealers are 134ctica1lY out of the government bond market. He stated that foreign banks have about to8 5,000,000 maturing on March 15th and that the System has only Wbollt ir4,000,000 in its portfolio of maturities which the foreign banks are 41g to take in replacement, in view of which it will be necessary to pur- chase tha remainder in the market unless the foreign banks should buy acceptinstead. Mr. Case, the Governor stated, expressed the opinion that the Pedal. 41 Reserve System should take about 1;25,000,000 of March 15th maturities fl‘c)14 thA - market, as offered, during the next week, although the proposal has 11°t been discussed with his directors. Governor Young stated that the matter w°41(1 Probably be considered at the directors' meeting today and invited an e:4)rea8 ion of opinion thereon by members of the Board. Some of the members expressed the opinion that the Federal Reserve %%telt Should take no action which would have the result of easing the money 1114rket , t f would be justified in 4- -uis juncture, while others thought the Board 3/7/29 -2- leaving the matter to the discretion of Deputy Governor Case subject, of course, to, -PProval by the directors of the New York bank. Formal expression on the proposal was deferred, with the understanding that the Board will hold itself in readiness to act should the New York directors submit the proposal with their approval later in the day. The Governor then reported a conversation this morning with Governor llgal of the Federal Reserve Bank of Chicago, regarding the credit situation ' 11°I)C 14 the Seventh District. The Chicago bank, he stated, is disappointed because of ita failure to secure liquidation of borrowings by its member banks. Govern- °I'Llel) oUgal, he stated, advised that eight of the directors of the Chicago bank are atisfied that the rate of the bank should be raised and inquired what the 4ttitila Of the Board would be. Governor Young stated he replied that, in his o1 1 --0 a majority of the Board would not favor an increase, and Governor i'°1)'311gal expressed the opinion that in view of that fact no action would be t14:e11 bY the Chicago directors. Ounningham then left the meeting. at Telegram dated Larch 6th from the Assistant Federal Reserve Agent Naaa the Federal Reserve -elPhia, telegram dated March 7th from the Chairman of , 4latle °f Richmond and telegram dated March 6th from the Chairman of the Federal Ileae rve Bank directors at meetof St. Louis, all advising that their boards of 0 of 11 the dates stated made no changes in the banks' existing schedules 11414 °f discount and purchase. Without objection, noted with approval. from the CompReport of Executive Committee on letter dated March 2nd 90 3/7/29 -3.- trcaler of the Currency, recommending approval of a salary of .2700 per annum 4r liation51 Bank Examiner George R. Wilson, assigned to the Seventh Federal ' . eserve District; the Board's Committee also recommendino; approval. Approved. Aeports of Committee on Salaries and Expenditures on lists submitted by the Pederal Reserve Banks of Boston, Philadelphia and St. Louis, of employees f°1* Whom the directors of the banks approved leaves of absence with pay, on lacc)tuit Of illness, during the month of February, where the total of such abseces since January 1, 1929 has exceeded thirty days; the Board's Committee re°01nMendtng approval of the salary payments involved. Approved. The Governor then presented a telegram dated February 6th from the Gove of the Federal Reserve Bank of San FranCisco, who is Chairman of the 00 vernore' Conference, suggesting that the Spring Conference be held the tirst Week in April or, if that is not acceptable, during the second week. After discussion, April 1st, 2nd and peared to be satisfactory to the members Board for the holding of the Conference, matter was referred to the Governor with 3rd apof the and the power. Letter dated ',larch 4th from the Federal Reserve Agent at Chicago, viei4g Of the resignation of Li*. D. B. Brann, of his Bank Relations force, ealci further, that the vacancy will not be filled, as this work is being carriec/ °II to a considerable extent by Examiners while not engaged in examining work. Noted. the Report of Executive Committee on letter dated February 27th from Kw4f-witi -4- 3/7/29 tasistant Federal Reserve Agent at St. Louis, transmitting and recommending approval of an application of the St. Louis National Bank, St. Louis, au reserve requirements from 134tlYing institution, for a reduction in its 1°70 t0 7, also recommending approval. of demand deposits; the Board's Committee the Upon motion, the application was approved, affirmative. the in voting all present five members 'Larch Ileport of Committee on Salaries and Expenditures on letter dated ist submit-om the Deputy Governor of the Federal Reserve Bank of New York, employees of the vl'oposed changes in salary and grade classifications of that all changes effective March 1, 1929; the Board's Committee stating are , of salaries approved by In accordance with the plan for standardization the Board on by the Board. January 12, 1926, and recommending approval Approved. application on behalf of the Assistant Secretary then presented an . Stre4 Pa., organizing, for vational Bank and Trust Company of Pittsburgh, a recommendation -44ola to exercise general fiduciary powers, together with bY the ti application be approved, .ederal Reserve Agent at Cleveland that the Comptroller of the Currency. etteeti---ve if and when the bank is chartered by the lie al Comptroller of 80 submitted a letter dated February 27th from the Deputy ' the, application to organize the rrencw, NAladvising that on February 26th the 48trey, disapproved by the '43 National Bank and Trust Company of Pittsburgh" was Ccirl113trol1 er, required. Noted, no action by the Board being letter dated FebruMatter acted upon on initials on Larch 2nd, namely, transmit11T 27th from the Governor of the Federal Reserve Bank of St. Louis, 290 3/7/29 -5- tilag inquiry by Mr. Max B. Nahm, Class A Director of the Bank, as to whether 414er the Regulations of the Board he may also serve as member of the Kentucky liational Park Commission; the Board having advised Mr. Martin that there is no Objection to such service by Mr. Nahm. Upon motion, the Board's informal action was ratified. ?bitter approved on initials on March 5th, namely, letter dated March and *cam th -e Chairman of the Federal Reserve Bank of Atlanta, requesting permission to l'ealscount for the First National Bank, Lakeland, Fla. and the Snell National hlikl Winter Haven, Fla., paper acquired from non-member banks; the Board hayillgeTanted the permission for a period of thirty days, i1, in the judgment of the Atlanta directors, a situation exists requiring such action. Formally approved. The Governor Governor then referred to a letter received from the Deputy °I* the Federal Reserve Bank of New York, advising that member banks in Albany ars a4 -41aPPo1nted at the unfavorable decision of the Board on their application till' the termination of the designation of Albany as a reserve city, and have sted a hearing before the Board. to He stated that he addressed a letter th e co Board will be rrespondent for the Albany banks, advising that the "44 t0 grant a hearing and requesting that he suggest a date therefor. Noted. Letter dated March 5th from the Governor of the Federal Reserve Bank of condition --Pula, advising that because of a considerable change in the °t that not recommend bank since his letter to the Board of March 2nd, he would Eta 140 of the bank on rease in rate at the meeting of the board of directors -6- liarch 6th. Noted. Letter dated :March 6th from the Assistant Deputy Governor of the Federal Iteseme Bank of New York, advising that it is proposed to make an advance to the Reichsbank today of 47,562,398.97 against a consignment of United States bars valued at 0,960,419.97 going forward today; the advance being 95% Of tlig - value of the shipment interest to be charged at the discount rate of the Pederal Reserve Bank of New York and the duration of the advance to be the t411Bit time of the shipment. In his letter, the Assistant Deputy Governor "ea that participation in the advance is being offered to each other Federal ileserve bank. The Board having already expressed itself in favor of such an advance, the above letter was noted With approval. atNYeriQ OF sTANDINGCCallY21EES: 1)atea let, Aecommending changes in stock at Federal Reserve banks as 2nd, set forth in the Auxiliary Minute Book of this date. Recommendations approved. 5th, 6th, 7th, b4teci March 1st, Recommending action on applications for fiduciary powers 5th, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. 4tea • Lareh 2nd, Recommending approval of the application of Mr. William J. director Jones for permission to serve at the same time as Trust and officer of the Lafayette-South Side Bank and NationCompany, St. Louis, Mo., and as director of the First al Bank, Clayton, Mo. Approved. 4ter1.1 March 5th, Recommending approval of the application of Mr. Alfred K. director Foreman for permission to serve at the same time as director as of the Foreman National Bank, Chicago, Ill, and of the North-Western Trust & Savings Bank, Chicago, Ill. Approved. • Mare,h 47 ' C t 3/7/29 -7- COMMITTEES: (Cont,d) Dated-. March 5th, Aecommending approval of the application of Mr. Frank E. Lackowski for permission to serve at the same time as director of the North-:iestern Trust and Savings Bank, Chicago, Ill., as director of the Foreman National Bank, Chicago, Ill, and as director of the Second North-Western State Bank, Chicago, Ill. Approved. Datea. March 5th, Recommending approval of the application of Mr. J. E. Woodard for permission to serve at the same time as director of the Metals Bank & Trust Company, Butte, Mont., and as director of the Midland National Bank, Billings, Mont. Approved. Dated, March 5th, Recommending approval of the application of Mr. William A. Aeid for permission to serve at the same time as director of the Torrington National Bank, Torrington, Conn., and as director of the Union Trust Company, Springfield, Mass. Approved. The ting adjourned at 1:00 p.m. Assistant Secretary. Approvea:
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