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500 A meeting of the Federal deserve Board was held in the office of the Federal Aeserve Board on Tuesday, May 27, 1930 at 12:00 o'clock noon. PRESENT: PRESENT ALSO: The Chairman Governor Young Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Pole Yr. McClelland, Itsst, Secretary Dr. Goldenweiser, Director, Division of Research and Statistics. The Governor stated that special order of business for this meeting is the telegram received yesterday from the S , overnor of the Federal Reserve Bank of New York, advising of receipt of an inquiry from the Bank for International Settlements as to whether it has any objection to a proposel issue Of reparations ponds in this market, and outlining the proposed reply of the Federal Reserve Bank of New York to the inquiry. The Governor stated that the Undersecretary of State, several days ago, informed him that the State Department had no objection to the proposed issue in this country, and the Chairman advised the Board that he talked with the Secretary of State at the Cabinet meeting this morning and was not advised of any change in the Position of the Department, although some question has come up regarding the form of the bonds to be issued which, however, is a matter entirely with the bankers at the present time. Ur. Hamlin then read to the Board the following proposed motion which, by unanimous consent, he then submitted for consideration: "That the Federal Reserve Board advise the Federal Reserve Bank of New York that it will interpose no objection to the proposed answer of said Bank to the inquiry made by the '3.1.3. as to whether it will express dissent to the placing of the particular issue of reparations bonds referred to in the markets of the United States. 501 5/27/30 -2- "That the Board advise the Federal Reserve Bank of New York that it construes the words 'terms, conditions, and issue' in said proposed answer to include necessarily a denial of responsibility for the worth of such securities, and that it understands that there is no difference of opinion between it and said Federal reserve bank that all rights of the iederal Reserve Board aril System over credit conditions in the United States remain unaffected by the failure of said Bank to dissent." The Governor suggested an amendment to LI'. Hamlin's motion so as to make it read as follows: "That the Federal Reserve Board advise the Federal _Reserve Bank of New York that it will interpose no objection to the proposed answer of said Bank to the inquiry made by the 3.1.3. as to whether it will express dissent to the placing of the particular issue of reparations bonds referred to in the markets of the United States; "That the Board advise the Federal Reserve Bank of New York that it construes the words 'terms, conditions, and issue' in said proposed answer to include necessarily a denial of responsibility for the worth of such securities, and that failure to dissent shall not be construed as a waiver of any of the laaful po-ers of the Federal Reserve Board or System to take appropriate action at any time to protect credit conditions in the United States." This amendment was accepted by lir. Hamlin and, after brief discussion, the motion as amended was put by the Chair and unanimously carried. Mr. James then referred to the year's leave of absence, with pay, granted by the Board to its Secretary, Lir. 7;alter L. Eddy, which expires an Llay 31st. He moved that the 3oard extend Lir. Eddy's leave of absence, with full pay, to the end of the current year. At the request of one of the members of the Board, Mr. '4att, the Board's Gen,aral Counsel, was called into the meeting and inquiry was made of him as to the legality of the action contemplated by Lr. Janes' motion. Li'. Wyatt stated that, while the question is not entirely free from doubt, he is of the opinion that the proposed action is within the Board's lawful Powers, he explained that the Board is authorized by the Federal Reserve 41, 5/27/30 -3- Act to fix the compensation of its employees and that this authority carries With it the incidental right to grant such leave to its emnloyees as the Board deems appropriate, unless the Board's richt to grant such leave is limited Jy other statutes of the United States of p-eneral application. qyatt stated further that he had examined the general statutes with reference to the amount of leave which may be granted to Government employees and found that such statutes are not by their terms applicable to the Federal Reserve Bord. He, therefore, is of the opinion that the Board may grant such reason- able leave to its employees as it deems appropriate. Mr. James motion was then put oy the Chair and carried, Mr. Miller voting "no". The Governor then referred to the request made by the directors of the Federal Reserve Bank of New York at their meeting on May 9th that the Board approve for that bank a minimum buying rate of 2';' for purchases of bankers acceptances. He stated that action an this request has been postponed for a meeting of the full Board. The matter was discussed briefly but it was the consensus of opinion that under existing: conditions action by the Board at this time is not necessary. AEPORTS OF STANDING COLNITTMS: Dated, 26th, 27th, Dated, May 24th, Dated, may 26th, Recommending changes in stock at Federal Reserve bank as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending approval of the application of Mr. S. Sloan Colt for permission to serve at the same time as airector and officer of the Bankers Trust Comnany, New York, N. Y., Y. and as director of the Tuxedo National Bank, Tuxedo, Approved. Recommending approval of the application of Mr. Edward H. A. Green for permission to serve at the same time as director of the First National Bank in Dallas, Texas, as director of the American National Bank of Terrell, Texas, and as director of The Chase National Bank of the City of New Yoek, N. Y. Approved. 1 5/27/30 -4- 503 aPOiT3 OF STA-DING 00=12-TEES: (Cont'd) of L.r. 2ranklin ay 26th, .lecommending approval of the application same time as director D'Olier for permission to serve at the Pa., as director of The First National Bank of Philadelphia, York, N. Y., of The Chase National Bank of the City of New :orrisand as director of the :orristown Trust Company, town, N. J. Approved. the application of Mr. Walter S. of val Dated, May 26th, Recommending appro ssion to serve at the same time permi for Carpenter, Jr., ny, as director of The Anglo-South American Trust Compa Trust n ingto New York, N. Y., as director of the ATilm of The Chase tor direc as and ijel., , ngton Wilmi Company, N. Y. National Bank of the City of New York, New York, Approved. the application of Mr. J. C. of val appro ng mendi , Recom Dated May 26th. time as Traphagen for permission to serve at the same N. J., , of Nyack director of The Nyack National Bank Company Trust & Bank as director of The Citizens 1\itional The of er offic and tor of Englewood, N. J., and as direc Y. N. York, New of Chase National Bank of the City Approved. the application of 1.1r. Albert G. of val appro ng mendi Recom , Dated May 26th, time as diMilbank for permission to serve at the same New York, ny, Compa Trust rector of the Title ;Ilarantee & of the Bank nal Natio N. Y., and as airector of The Chase City of New York, N. Y. Approved. Henry S. ated balv 26th, Recaalending approval of the application of Li-. D, member as time same the at serve Bowers for permission to Company, & 6achs an, Goldm of rs banke of the firm of private ny Compa ia ylvan Penns The of tor New York, N. Y., as direc ia, delph Phila ties, Annui ing Grant and for Insurances on Lives City Bank of the Pa., and as director of The Chase National N..Y. York, of New York, New Approved. the application of Mr. Geo. :elwood of val Dated, May 26th, Recommending appro as director Murray for permission to serve at the same time J., and as of the Montclair Trust Company, Montclair, N. of New director of The Chase National Bank of the City York, N. Y. Approved. the application of LT.. F. Rogers of val ng appro Dated, May 26th, Recommendi as director Parkin for permission to serve at the same time J., and as of the First National Bank of Bound Brook, N. of New York, officer of The Chase National Bank of the City R. Y. Approved. Dated, 1 1 504 5/27/30 -5- ORT3 OF STANDING COrirPTE: (Cont'd) Eaward J. Recommending approval of the application of as director time same the at serve to Cornish for permission N. Y., York, New Company, Trust American of The Anglo-South of City the of Bank National Chase The of and as director New York, N. Y. Approved. Dated, May 26th, Recommending approval of the application of Mr. James Li. ;hide for permission to serve at the same time as director and officer of the Union Center National Bank of Union, N. J., and as officer of The Chase National Bank of the City of New York, N. Y. ilpproved. Dated, May 26th, Recommending approval of the application of Mr. Howard Bayne for permission to serve at the same time as director of the Morristown Trust Company, i_orristoun, N. J., and as director of The Chase National Bank of the City of New York, N. Y. Approved. Dated, May 26th, Recommending approval of the application of Yr. Gideon M. Stull for permission to serve at the same time as director of the Ridley Park National Bank of Aidley Park, Pa., arid as director of the Chester National Bank, Chester, pa. Approved. Dated, May 26th, Recommending approval of the application of 1,r. Elmore I. LacPhie for permission to serve at the same time as director of the National Rockland Bank, Boston, Mass., and as director of the Appleton National Bank, Lowell, Mass. Approved. Dated, Liay 26th, The meeting adjourned at 12:15 p.m. GqWWreeer_dad Assistant Secretary.
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