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A meeting of the Federal Aeserve Board was held in the office of the Federal Aeserve Beard on Uednesday, 'Zovember 13, 1929 at 11:00 a.m. PRIZEljT: Governor Young Mr. Platt Mr. Hanlin Mr. Miller Mr. Cunninghan Mr. McClelland, Asst. Secretary The Board resumed consideration of the report and recommendations of the Open Market Investment Committee and the proposed letter to the Chairman of the Committee submitted by Mr. Miller at the meeting yesterday. During the discussion, Mr. Hamlin referred to the last paragraph of the proposed letter, cancelling the authority granted to the Open Market Investment Committee on September 24th to buy Government securities not to exceed .25,000,000 per week. He stated he would vote reluctantly in favor of the proposed letter but that, in his opinion, the authority referred to shoUd be continued and he would prefer to see the last paragraph of the proposed letter eliminated. Mr. Platt stated that while he would vote in favor of the proposed letter without the last paragraph, with its inclusion, he felt he must vote "no". • At the conclusion of the discussion, Mr. Miller's motion to approve and transmit the letter to the Chairman of the Open Market Investment Committee submitted at the meeting yesterday was put by the Chair and carried, the members voting as f011oas: Governor Young, "aye" ":r. Hamlin, "aye" Mr. Miller, "aye" Mr. Cunninjham, "aye" Mr. Platt, "no" Mr. Hamlin then moved that, in accordance with the letter just approved, the Governor, or in his absence, the Executive Officer of the Board, be authorized to give annroval to a purchase of Government securities in an emergency, should the 3oard not be immediately available, any such approval -2- 11/13/29 to be Promptly reported to the Board. Hamlin's notion, being put by the Chair, was unanimously carried. Application of the Old Colony National Bank, Boston, I:assachusetts, for additional stock (430 shares) in the Federal Reserve Bank of Boston, effective if and when an increase in the capital of that bank from :!200,000 to $1,000,000 is approved by the Comptroller of the Currency. Approved. Telegram dated November 12th from the Deputy Governor of the Federal Reserve Bank of New York, advising that as a result of continued investment demand, together with somewhat easier money conditions, bill dealers are reducing their bid and asked rates one-eighth on all maturities effective today, offering prime two name bills maturing up to ninety days at 4 1/2;3, four months 4 5/8%, and five and six months 4 3/4(:), with endorsed offerings up to CIO days at 4 3/8, four months 4 1/2:), and five and six months 4 5/85. Noted. Telegrams dated November 8th from the Secretaries of the Federal Reserve Banks of Cleveland and Atlanta, both advising that their boards of directors at meetings on that date made no chances in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Report of Executive Committee on letter dated November 8th from the Comptroller of the Currency, recommending approval of a salary of „„6,500 per annum for National Bank Examiner Gail J. Crossen, assigned to the Comptroller's office, the Board's Committee also recommending approval. Approved. 7 ) ( 11/16/29 Report of Committee on Salaries and Expenditures on lists submitted by the Federal Reserve Banks of Cleveland and Atlanta, of employees for whom the directors of those banks authorized leaves of absence with pay, on account of illness, aartng the month of October, where the total of such absences since January 1,, 1929 has exceeded thirty days; the Board's Committee also recommending approval. Approved. Report of Committee on Salaries and Expenditures on letter dated November 8th from the Chairman of the Federal Reserve Barf,c of Dallas, advising of the action of the board of directors of that bank in approving an additional leave of absence of ninety days on account of illness, xith full pay, for Lr. U. H. Doerner, Assistant lianager of the Accounting Department of the bank; the Board's Committee recommending approval. Approved. Bonds covering Lr. Frederic H. Curtiss, Federal Reserve Agent at Boston, executed on November 1st in the amount of ,25,000 and on November 5th in the amount of v75,000. Approved. Matter approved on initials yesterday, namely, reply to telegram from the Chairman of the Federal Reserve Bank of Dallas inquiring as to the validity of a nomination for Class B Director of that bank made by the President of the 6tate National Bank, Iiabel, Okla., in a letter advising that he did not receive a copy of the form famished member banks by the Federal eserve Bank of Dallas for nominating purposes; the reply stating that the nomination is -4— 11/13/29 valid if made on authority of a resolution of the board of directors of the member bank passed not later than -Zovember 12th, the date on which . nominations closed. Upon motion, the reply was formally approved. Liemorandum dated -Zovamber 6th from the Commissioner of the Public Debt transmitting copy of a letter addressed to he cTovernovs of all federal te— serve banks under date of October 30th, advising of a change to be made in due course in the desin of Federal deserve notes, whereby the apPropriate letter will be substituted for the district number in the circle and the district numbers in the four corner positions will be slialltly reduced in size. :Toted. deport of :]xecutive Committee on letter dated November 8th from the Federal eserve Agent at Chicago, replyina to letter addressed to him in - ettn€,; of the Board on i;ovember 6th accordance with action taken at the m.) and recondinr; approval of the arplication of the Peoples National Bank and 2rust Company, Chicago, Ill., an outlying institution, for a reduction in its reserve requirements from le; , to 10,, of demand deposits; the 7.3oard's Committee also recommendinc; approval. Unanimously approved. Letter dated November 8th from the Deputy Chairman of the federal deserve Bank of ktlanta, transmitting copy of a. resolution unanimously adopted by the board 01 directors of that bank, excepting Jhairman Navton, 411 11/13/29 -5- who was not in the meeting at the time, recommending that 1.1r. Newton's salary as Federal Reserve Agent and Chairman of the board of directors of the bank be fixed for the year 1930 at „25,000, both in reconition of his past services to the bank and its members, and in consideration of the meritorious services now being readered. Upon motion, the resolution of the Atlanta directors was referred to the Committee on District =8. Draft of reply,prepared by Counsel, to letter dated 'Lovember 6th from the South Orange ?rust Company, South Oranr.e, N. J., referred to him at the meeting on November 7th, advising that the bank is prepared to accept the conditions of membership in the :ederal 2,eserve 3ystem imposed upon it Iwy the Board on October 28th, if it is correct in its understanding that the third condition - that except after applying for and receiving the permission of the Federal Reserve Board, it Shall not acquire an interest in any other bank or trust company, throu.r2h the purchase of stock in such other bank and trust company, - does not apply to such purchases made for investment purposes but only to purchases made with a view to obtaining a controlling interest in such other bank or trust company; the proposed reply stating that the condition of membership referred to applies to any purchase of stock in another bank or trust camoany, whether made with a viea to acquiring a controlling interest or for investment purposes only, and requesting advice whether the South Orange Trust Company accepts the conditions of mumbershin imposed upon it by the Board, including Condition 3 as interpreted. Upon motion, the proposed letter was approved. -6- 11/16/29 111 The minutes of the meetings of the Federal'Reserve 3oard held on November 8th and 11th were then read and approved. The minutes of the meeting of the Federal deserve Thard held on November 12th were read and approved, as amended. 273:201a3 OF STANDING CXIMIT1EES: Recommending changes in stock at Federal _leserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. 12th, Aecommen_Ling action on an application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendation approved. 7th, Recommending action on an application for admission of a state bank, subject to the conditions stated in the individual report attached to the application, as set forth in the Auxiliary Minute 300k of this date. decommendation approved. 9th, Aecommending approval of the application of Mr. L. J. Karcher for permission to serve at the same time as director of the First National Bank of Marshall, :Ach., and as director and officer of the old-Merchants National Bank & Trust Company of Battle Creek, Approved. 9th, 2ecommending approval of the application of Mr. :;endell L. Smith for permission to serve at the same time as director of the First National 75ank of Marshall, Lich., and as director of the Old-Merchants National Bank & Trust Company of Battle Creek, Mich. Approved. Recommending approval of the application of Mr. A. F. 9th, Church for permission to serve at the same time as Merchants 3ank of ,:atts, Cal., director of the Farmers aid as officer and employee of the Security-First National Bank of Los Angeles, Cal. Approved. Recommending approval of the application of Mr. Dennis 9th, B. Moynehan for permission to serve at the same time as director of the First National Bank of Glens Falls, N. Y., and as director of the Hamilton County National Bank of dells, N. Y. Approved. Dated, November 11th, Dated, November Dated, November Dated, November Dated, November Dated, November Dated, November The meeting adjourned at 1:10 p.m. Approved: Assistant Secretary.
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