The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
*)() A meeting of the Executive Committee of the Federal Reserve Board Was held in the office of the Federal Reserve Board on Friday, November 20, 1931, at 11:35 a. PRESENT: Governor Meyer Mr. Filler Er. Magee Er. Ebrrill, Secretary Er. EcClelland, Assistant Secretary Er. Harrison, Assistant to the Governor. The following matters of business were Presented for consideration 4104 action by the Committee: Letter dated Eovember 19 from the Secretary of the Federal Reserve 44k of New York and telegrams dated Kovember 18 from the Chairman of the Pede Reserve Bank of Philadelphia and November 19 from the Chairmen of the Federal Reserve Banks of Boston, Kansas City and San Francisco, all Etclvi 21ng that the Boards of Directors, at meetings on the dates stated, macle no changes in the banks' existing schedules of rates of discount and laurehase. Without objection, noted with approval. Telegram dated November 20 from Deputy Governor Kenzel of the Fed. -ral Reserve Bank of New York advisinc that in order to bring the bank's Srlbe c4lve buying rate for shorter bills a little nearer the market and to bsttel. - Provide for a partial replacement by short bills during the balance O the Year of maturities held for System account, the rate on bills Illat41"ing up to 45 days had been reduced today to 35, making the following he u-Le of buying rates in effect at the Yew York bank: 1 to 45 days 46 to 90 days 91 to 120 days 121 to 180 days Repurchase 3 3 3 3 1/8% 1/4 1/2;70 1/45 411 11/20/31 -2Without objection, noted with aPnroval. Telegrams dated November 20 from the Governors of the Federal Reserve Banks of Boston and St. Louis and the Chairmen of the Federal Reserve Banks (31 ' Richmond and Chicago, advising of the establishment, in accordance with the action taken at the Federal Reserve Bank of New York, of an effective 131111-33Z rate of 3;) on bankers' acceptances maturing within 1 to 45 days. Without objection, noted with approval. Letter dated November 1 from the Chairman of the Federal Reserve Bank °II Dallas requesting approval by the Board of the appointment of 7:1% John Earrai ild Young to the appraised position of special representative in the ill°11vent banks department of the bank at a salary of :)2,400 per annum. . Upon motion, the salary referred to was approved. Letter dated November 18 from the Chairman of the Federal Reserve tallk of Philadelphia advising of the resignation of Er. Arthur C. Dorrance, 48 a Class B director of the bank, effective November 15, 1931. Noted. Memorandum from the Secretary dated November 20, stating that advices 484 been received from the various Federal Reserve banks of the election of the f ollowing Class A and B directors, each for a term of three years beeinning January 1, 1932: Cle.ss A Directors 1 .*eclerick S. Chamberlain -413ell H. Wiggin Cosgrove Co!llezs Lamberton OS C. Braswell C. Melvin R. Estberg C. Martin F. R. Bank New Britain, Conn. New York, N. I. Johnstown, Penna. Franklin, Penna. Rocky Mount, N. C. Selmn, Alabama. Waukesha, Wis. Salem, Illinois. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis 11/20/31 Class -3irectors (Cont'd) Pala S. Leeman Frallk W. Sponable 17. H. Patrick X. 1,IcInto8b. F. R. Bank flinneanolis, Tann. Paola, Kansas. Clarendon, Texas, San Francisco, Calif. Minneapolis Kansas City Dallas San Francisco Springfield, Vermont. New York, N. Y. Philadelphia, Pa. Erie, Pa. Washington, D. C. Nashville, Tern. Detroit, flich. Little Rock, Ark. St. Paul, Minn. Kansas City, No. Houston, Texas. Iladera, Calif. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco BDjrctors ilivard. S. French WilliamH. Woodin C. ll'rederick C. Stout R. P. Wright Bdwin C. Graham 3'• B. Hill S tanford T. Crap° L B. Plunkett W. O. Washburn Bernardin A. S. Cleveland H. Cox Noted. Letter dated November 16 from the Assistant Federal Reserve Agent at cag0, transmitting, with a favorable recomendation, the application of tlie Security National Bank of Sioux City, Iowa, for permission to rediscount 141Per acquired from nonmember banks; the Federal Reserve Board informally on "er 19 having authorized the Federal Reserve Bank of Chicago, in its etioll, for a period of six months from that date to rediscount for the 2"11111tY National Bank, good and otherwise eligible paper acquired from or bear4 'dig the signature or endorsement of nonmember banks. Upon motion, the informal action was ratified. Memoranda dated November 13 from the Board's Examiner in Charge, bniit -ng reports of examinations of the Federal Reserve Banks of Boston 411d ' 411adelphia as of the close or business on September 9 and October 10, Pe ctively Ordered circulated. 11/20/31 t.:0 v./ t) -4- 1:emorandum from Counsel dated November 14, with regard to a letter cl4ted November 10 from attorneys for The National City Bank of New York stating th t a question had arisen as to the extent to which certain laws of Porto Rico Might be interpreted by the local authorities as in practice curtailing the PO?lers properly to be exercised under the permit granted by the Board on July 151 1931 to The National City Bank of New York to exercise fiduciary powers at ita branches in Porto Rico, and that, unless the Board saw some abjection, it was the intention of the attorneys on behalf of the bank to ask the Attorney Geheral of Porto Rico for his opinion as to the extent to which the Porto laws are valid and restrictive under the circumstances. With his memo- Counsel submitted draft of a reply to the attorneys of The National City Bank, stating that the Board offers no objection to their making such a ' l equest but desires to receive a copy of any opinion which may be rendered by the Attorney General of Porto Rico on the question. Upon motion, the proposed letter was approved. Reply to letter dated November 12 from the Chairman of the Federal Bee Bank of Chicago, transmitting the application of the Commercial rational 13114k of I:adison, Wisconsin, for permission to rediscount a :115,000 note of the T'e'lldeeville State Bank, Pardeeville, Wisconsin, a nonmeater, due 90 days from Oct °13er 26, 1931, and secured by Government bonds; the proposed reply stating that 6fle Federal Reserve Board authorizes the Federal Reserve Bank of Chicago, it8 • discretion, for a period of six months from this date, to rediscount l'c)r the Commercial National Bank, good and otherwise eligible paper acquired from or bearing the signature or endorsement of the nonmember bank, upon the 101a recommended by the Chairman of the Federal Reserve Bank of Chicago " 111 hi -'s letter, that no such paper shall be rediscounted until the Commercial 11/20/31 -5- 1\1. tional Bank has first utilized all other comercial and agricultural paper in its Portfolio which is eligible and acceptable to the Federal Reserve bank for rediscount; also, that although the question in any case whether no:net c)ftered by a member bank should be rediscounted is to be determined by the Federal Reserve bank, the Board wishes to point out that if a note made by a 11°Innernber bank, secured by obligations of the United States, is rediscounted by 4 Federal Reserve bank for a member bank with a maturity at the ti7e of redise°11 "in excess of 15 days, the nonmember bank would thus be enabled indirectly to obtain credit from the Federal Reserve bank on its own note for a longer Period than is permissible in the case of a direct borrowing by a member bank. Upon motion, the proposed letter was approved. Reports of Standing Committee dated November 20, recommending changes 14 stock at Federal Reserve bank, approved as follows: : 1ications for SURRENDER of Stock: Shares -11 ' st National Bank, Fleischmanns, N.Y. (Insolvent) International Trust Co., New York, N.Y. (V.L.Abs. by Continental Bank ,Sc, Trust Co.) lOrlistrict No. 4. 41°1;11 Savings Bank ez Trust Co., Steubenville, Ohio. a nsolvent) 27 4,920 4,947 420 420 34 34 84 84 24 18 Total 42 5,527 .ttlzens National Bank, Prosperity, S. C. (Insolvent) lted Savings Bank, Tecunseh, Nichigan. (Insolvent) p,l'et National Bank, Hankinson, N.Dak. (Insolvent) 'rst N ational Bank, Pollock, S. Dak. (Insolvent) The meeting adjourned at 12:40 p.m. Ebz Govern Mr14,4-147 Secr tary.
@FedFRASER