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498 • A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Monday, May 26, 1930 at 3:30 p.m. PRESENT: Governor Young Ur. Platt Mr. Hamlin Lr. Ir. James Mr. Cunningham Mr. Pole Mr. McClelland, Asst. Secretary The Governor presented the following telegram just received from the Governor of the Federal Reserve Bank of New York, outlining the proposed reply of the New York Bank to a cable received by it from the Bank for International Settlements: lb "The Federal Reserve Bank of New York has received a cable from the Bank for International Settlemmts inquiring whether the Federal Reserve Bank of New York has any objection to the issue In this market of a tranche of a German thirty five year consolidated loan, the final terms of which are now in process of negotiation. It is understood, however, that the proposed American tranche is to be for approximately an effective net amount of 485,000,000 out of a total of about the equivalent of ,300,000,000 net. It is understood that the French tranche to be issued in francs will be approximately equivalent to the amount issued in this market and that the balance of the total loan will be issued in seven other countries in their respective currencies. Considering the matter quite apart from its political or Governmental aspects, which it is understood in this instance have come before the Department of State for its decision, our directors have today authorized the officers of this bank to inform the Bank for International Settlements when the loan is ready for issue in this market that, while the Federal Reserve Bank itself does not accept any responsibility as to the terms and conditions and issues of the proposed loan, the Federal Reserve Bank of New York uoes not wish to interpose any objection to its issue in this market. It was agreed by our directors that advice to this effect should be cabled to the Bank for international Settlements, unless the Federal Reserve Board advises us that it objects to the issue of a tranche of such a loan in this market." Copies of the telegram were furnished to the members of the Board, and, after some discussion, action on the matter was deferred for a full meeting 499 5/26/30 of the Board tomorrow to be arranged by the Governor. m9eting adjourned at 4:00 p.m. owweee(ka Assistant Secretary. Approved: Gove
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