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G5 A meeting of the Executive Committee of the Federal Reserve Board wks held in the office of the Federal Reserve Board on Saturday, May 9, 19311 at 10:15 a. m. PRESENT: PRESENT ALSO: Governor Meyer Mr. Hamlin Mr. Miller Mr. Jsms Mr. McClelland, Assistant Secretary. Mr. Wyatt, General Counsel. Ni'. C. S. Newhall, Executive Vice-President, and Mr, William Voetsch, Co Ptroller, of the Pennsylvania Company for Insurances on Lives and GrantPhiladelphia, Pennsylvania, were also present in connection llith the request of that institution that the Board reconsider its ruling or J.41 4-Y 6) 1930 that as a result of a consolidation on March 29, 1930, with the p -°1°Ilial Trust Company of Philadelphia, the Pennsylvania Company is ekb 4to all of the conditions of membership previously prescribed for and "et EleeePtby eri both of the old corporations, including one imposed on the -041.1 Trust Company, that except after applying for and receiving the Dert,4 —.Lae ion of the Federal Reserve Board it shall not acquire an interest in other bank or trust company, through the purchase of stock in such other bazai or trust companyLIz. Newhall explained that through oversight, he was not acquainted 17111t the Board's ruling, and that in line with its previous policy the :1142Y11111111a n Company, which at the time of the merger with the Colonial -c811Pa-AY, held 100,000 shares of stock of the Real Estate-Land Title ik C°mPany, has since the merger acquired 8,930 additional shares of 4-1Qk ta that company, 2,000 shares of the stock of the Chase National Bank : 174 and 2,211 shares of stock in the Philadelphia National Bank 1141(1(1e1Phia. 5/9/31 -2The general Policy of the Board with respect to purchases of stock Other institutions by state member banks was discussed. Me Newhall stated that the Pennsylvania Company would like very 4.1011 to regain its richt to make investments in stock of other banks, and that it is not the policy to make purchases for the purpose of acquiring contra of other institutions. that Mr. Newhall advised the Committee, however, it would be agreeable to the Pennsylvania Comnany if it could be Permitted to carry out the investment Program which it has in mind, inlicaving further purchases of stock in the Real Estate-Land Title and Trust Ces ellY to bring its total holdings to not to exceed 125,000 shares - that is 100 additional shares, as well as the purchase of up to a total of 42000 I. 84ares each of the Chase National Bank of New York and the Philadelphia tl°11a1 Bank of Philadelphia. It Was suggested to Mr. Newhall that written application be filed With thn e Board for permission to make the additional purchases mentioned. Thereupon Mr. Newhall and Er. Voetsch withdrew from the meeting. The Assistant Secretary then presented the following communications Were considered and acted upon by the Executive Committee, as set elkt below. Ilatters approved by the Executive Committee informally yesterday, 114(1 "th -6 atithority granted by the Board, namely, telegrams dated May 8th rl‘c)111 the r!, -aairmen of the Federal Reserve Banks of Chicago and St. Louis, glAc; the o/1 that the Executive Committees of the banks, under authority of b°4rda of directors, voted to establish rediscount rates of 2 1/2:72 el saes of paper of all maturities, effective the first business r°114)winft that on which approved by the Federal Reserve Board. L-- Upon motion, the informal action of the Committee in voting to approve the rates of 2 1/2% established at the Federal Reserve Banks of Chicago and St. Louis, effective today, was ratified. Draft of letter to the Governor of the Federal Reserve Bank of Cleveland, with reference to information received by the Board yesterday, 11°I'tlY after two o'clock, that the local office of the Wall Street Journal r, `'eelved a report from Cleveland that the discount rate of the bank " 4 been reduced from 3'7) to 2 1/2',3, official announcement of which was not 414(le by the Board and, it is understood, by the Federal Reserve bank until t4ree o'clock. After discussion, upon motion, the proposed letter was approved. Vatter informally noted with approval yesterday, namely, telegram 8th from the Chairman of the Federal Reserve Bank of Chicao, 411718111Z. of the establishment, effective nay 9th, of the following 81144111e of buying rates on bankers' acceptances: 1 to 30 days 31 to 90 days 91 to 120 days 121 to 180 days 1 1 1 1 1/a6 1/4y, 3/3.5, 1/25g, Upon motion, the informal action taken yesterday was ratified. Telegvira dated nay 8th from the Secretary of the Federal Reserve tetlik of Atlanta, advising that the board of directors at a meeting on that kte no change in the bank's existing schedule of rates of discount p. (bail Dk11,o' -aa8e, Without objection, noted with approval. Telegram dated Vay 8th from the Chairman of the Federal Reserve 5/9/31 -.4- Of Kansas City, advising that the Board of Directors on May 7th adopted resolution accepting the resignation of Mr. W. Vt. Lagee as Class C bil ' ector of the bank, subject to the approval of the Federal Reserve Board; the Agent stating that Mr. Magee's resignation is being forwarded to the Board. A discussion ensued regarding the appointment of a successor to Er. Magee, at the conclusion of which the Governor was requested to consult with Mr. Magee regarding an appointment suggested by him. At this point Mr. Pole joined the meeting. The minutes of the meetings of the Executive Committee held on 4111 29th and 30th were approved and, upon motion, the actions recorded t4"tin were ratified. The minutes of the meeting of the Federal Reserve Board held on 451r 4th were also approved. The meeting adjourned at 11:30 a. m. Assistant p. Cecretary.
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