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A meeting of the Executive Committee of the Federal Reserve Board 1148 hold in the office of the Federal Reserve Board on Thursday, May 7, 1931, at 11:40 a. PRESENT: Governor Meyer Yr. killer Mr. Tames Ur. McClelland, Assistant Secretary. The Assistant Secretary presented various reports and eommunica_ ti°118 which were considered by the Committee and acted upon as follows: Telegram dated May 6th from the Governor of the Federal Reserve Bank or Boston, confirming verbal advice of the action of the board of directors (It that bank in voting to establish a rediscount rate of 2% on all classes (3t Paper of all maturities, effective the first business day following that o which approved by the Federal Reserve Board; the telegram also advising that. 4., " 4ae directors voted, subject to the approval of the Board, to establish Et lair,4 4-114M authorized buying rate of 1:3 on bankers, acceptances, which latter eleti°4 was Informally approved by the Executive Committee of the Federal "Ire Board yesterday. Upon motion, it was voted to ratify the informal action taken by the Committee. Letter dated Nay 5th from the Secretary of the Federal Reserve Bank or -allsas City, advising that on that date its buying rate of 1 11/4 was ettem — ed to include all acceptances maturing up to 90 days; a rate of 1 3/4; Previously applied to maturities within from 46 to 90 days. Without objection, noted with approval. ratters approved on initials yesterday, namely, telegrams dated May °la the Governor of the Federal Reserve Bank of Boston, the Chairman of Pod,O ral Reserve Bank of Atlanta and the Chairman of the Federal Reserve 5/9/31 -2- Of Chicago, all advising of the establishment of a rate of 1 l/8-,; for IIIIrChases of bankers' acceptances maturing within thirty days. Upon motion, the informal action of the Executive Committee was ratified. Telegram dated ilay 6th from the Chairman of the Jederal lieserve Bank °rst, Louis, advising that the board of directors, at a meeting on that (14te, made no change in the bank's existing schedule of rates of discount 4t1q Purchase, except to establish a buying rate of 1 1/8P/, for purchases of bEtlak l's' acceptances maturing within thirty days. Viithout objection, noted with approval. Telegram dated May 6th from the Secretary of the Federal deserve Bank O —4Janeap0u3, advising of the establishment at that bank of a buying rate for purchases of bankers' acceptances maturing within thirty days. or 1 Without objection, noted with approval. Letter dated ivay 2nd from the Deputy Governor of the Federal 1--ie416 Bank of Boston, advising that on April 23rd that bank's rate for pur°116'13e8 of bankers' acceptances under repurchase agreement, was reduced from 14';' to 1 3/8'17; the reduction not having been Previously reported to the 130Eird. Without objection, noted with approval. 1:Lemorandum dated Dly 7th from the Chief Telegraph Operator, approved 4. the Assistant Secretary, recommending the acceptance of the resignation of h.ed„ Prick G. 3urrows, messenger in the Telegraph Office, effective at the 110 e °r business :„.:Ay 9th, and the appointment to succeed him of Walter faz,e at a salary of y,;720 per annum, effective May 11th. Approved. Report of Committee on Salaries and Expenditures on list submitted bl the, Federal Reserve Bank of Dallas of employees of that bank and its blItnoilee for wham the directors authorized leaves of absence with pay, on aecount of illness, during the month of April, where the total of such Iltbl oes since January 1, 1931 has exceeded thirty days; the Board's Committee 1'1301:amending approval of the salary payments involved. Approved. Report of Comndttee on District No. 8 on letter dated May 5th from tIte Federal Reserve Agent at St. Louis, reporting continuous reserve (leriolencies on the part of the First State Bank of O'Fallon, Illinois, 4/4114 the period from August 1, 1930 to March 15, 1931; the Federal Reserve " advising that since March 15th the member bank has maintained its rereserves and recommending that no action be taken at this time. Upon recommendation of the Board's Committee, it was voted to advise the Federal Reserve Agent that no action will be taken by the Board at this time, although he is requested to keep in touch with the situation and acquaint the Board with any important future developments. Letters dated April 25th and May 5th from the Secretary of the 4481'41 Reserve Bank of Cleveland, transmitting copies of the bylaws of the littabUrgli and Cinci ti branches, including amendments thereto made in tcrt°ber and September 1926, respectively, providing that any meeting of 41)1'440h boards held in any one month, on any day prior to the monthly 4511tillf, -4 of the directors of the Federal Reserve Bank of Cleveland, shall be 004414 al'ed as the monthly meeting of the branch board; except those especially Nae.. '4 as further provided in the bylaws. 5/7/31 -.4The Assistant Secretary reported that these amendments have not heretofore been submitted to the Board, and upon motion, they were approved. Memorandum from Counsel dated May 6th, submitting a digest of state 14718 relating to Private banks and banking, prepared at the request of the Ccomittee on Branch, Group and Chain. Banking; Counsel recommending that the iest be published in the next number of the Federal Reserve Bulletin. After discussion, upon motion, the matter was referred to the Governor with power. Letter dated May 6th from the Governor of the Federal Reserve Bank or p hIladelphia, requesting approval by the Board of an arrangement with Pata * Cret, architect, for the taking of measurements and the preparation "Pr eliminary plans for the erection of a two or three story building, °4Dable of being carried higher if need should arise in the future, on the ulte at the corner of Tenth and Chestnut Streets, which was purchased by the 444e1Ph1a Bank in June 1930; Governor Norris describing the crowded first 1'4°1 'and vault facilities in the Present building, which make the conion of an annex advisable. After discussion, upon motion, it was voted to approve of the Philadelphia bank taking the preliminary steps contemplated. The Governor then reported that the Governor of the Federal Reserve Bark ot °I York this morning advised him by telephone that at their meeting this ette 111°011 the directors will take action to reduce the discount rate of the bk4k rrom a% to 1 l/22:). The Governor stated that the New York Bank is qpetctt ing on daylight savings time and suggested that the Executive Committee - and that a meeting of the Board, with the Secretary of the Treasury 5/7/31 .-5— and the Comptroller of the Currency present, be convened for consideration °t the matter, in order that action may be taken promptly here upon receipt Of advice that the New York directors have acted. Accordingly, the Executive Committee adjourned at 12:10 p. nu PWare40_12, Assis-t—ant Secretary
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