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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, November 3, 1931, at 10:50 a. m. PRESLUT: ALSO PRESITT: Governor Meyer Mr. Hamlin Er. Miller Mr. Tames Er. Magee Er. Morrill, Secretary Mr. McClelland, Assistant Secretary. Mr. Harrison, Assistant to the Governor. Er. Smead, Chairman, System Committee on Reserves. Mr. Goldenweiser, Member, System Committee on Reserves. Mr. Wyatt, General Counsel. Mr. Snead indicated that copies of the report of the System Committee 01/Meraber Bank Reserves would be ready for delivery early next week. After 4 aiscussion of the circumstances in which the Committee was appointed, it eXpressed as the view of the Board that the Committee should submit its l'ePort both to the Chairman of the Governors' Conference and to the Federal Reaerve Bos17(1. In addition, the feeling was expressed that, since the Sub- 0°12r1ittee of the Senate Committee on Banking and Currency is studying proto amend the _olederal Reserve Act, it would be desirable to discuss tlie report with Senator Glass. Accordingly, Governor Meyer arranged for a discussion on the part of Mr. Smead, Hr. Goldenweiser and himself With Senator Glass this afternoon. After a short explanation of the views Ot the Committee reardinr , the features of the report involving Government clel)(Isits and the personal liability of directors of member banks, Messrs. Staeexi and G oldenweiser left the meeting. The minutes of the meeting of the Federal Reserve Board held on October 28 were approved. The following matters of business were then considered and acted 41)°4 by the Board: 11/3/31 -2Telegram dated November 2 from the Chairman of the Federal Reserve Bank of 1.:inneapolis, advising that the Board of Directors, at its meeting On that date, made no change in the bank's existing schedule of rates of discount and purchase. Without objection, noted with approval. Report of Committee on Salaries and Expenditures on list submitted bY the Federal Reserve Bank of New York of employees for whom the directors authorized leaves of absence with pay on account of illness, during the imilth of October, where the total of such absences since January 1, 1931, has exceeded thirty days; the Board's Committee recommending approval of the salary payments involved. Approved. Telegram dated October 30 from the Governor of the Federal Reserve 11814k or Kansas City referring to the present reserve position of "uhe bank which is below fifty per cent, and requesting that the Board authorize it tor ediscount .94,000 of paper offered by the Federal Intermediate Credit 841ak of Omaha, and telegram dated October 31 from the Deputy Governor of tile Kansas City bank requesting authority to rediscount paper which will 1)1'°13ablY be offered this week by the Federal Intermediate Credit Bank of °43alLa l in the additional amount of .500,000; the requests having been 13131 ' clrod informally by the Executive Connittee of the Federal Reserve Board °la October 30 and November 2, respectively. Upon motion, the informal actions of the Executive Committee were ratifed. Letter dated November 2 from the Federal Reserve Agent at Atlanta tlArisinittinr., with the favorable recommendation of his Executive Comndttee, 4° '1)pl1eation of the Canal Bank and Trust Company, the Hibernia Bank and 11/3/31 Trust Company, the Interstate Trust and Banking Company, the Whitney National Bank, and the American Bank and Ttust Company, all of New Orleans, Louisiana, for permission to rediscount paper bearing the endorsements Of n onmember banks. Upon motion, it was voted to authorize the Federal Reserve Bank of Atlanta, in its discretion, for a period of six months from this date, to rediscount for the member banks named good and otherwise eligible paper acquired from or bearing the signature or endorsement of nonmember banks. Letter dated October 29 from the Assistant Federal Reserve Agent at New York, submitting a recommendation of the Board of Directors that the 13(19'1'cl aPprove the designation, effective November 1, 1931, of Mt. Ralph U. Scheffett as a Federal Reserve examiner, and of Messrs. Loren B. Allen, lionler P. Cochran, James B. Cronin, Randolph V. Daly and Yohn T. fuinn, as Assistant Federal Reserve examiners. Upon motion, it was voted to approve the designations as recommended. Report of Committee on Salaries and Expenditures on letter dated October 23 from the Chairman of the Federal Reserve Bank of Dallas, recluesting that the Board approve a change in the personnel classification 11144 of the bank to proviae for the position of junior Stenographer in the L°a4 Departiiient with a salary range from $1,200 to 31,800; the Board's Ooralliittee recommending approval. Approved. Draft of reply, approved by the Executive Committee, to letter ted October 22 from the Vice President of the First-Farmers and Merchants liationta 1.1an3-, Troy, Alabama, advising that arrangements have been nade by the , L'ank to repurchase all of the City of Abbeville bonds sold to certain 11/3/31 -4- trusts administered by it, and requesting that the Board now give further consideration to its application for trust powers; the proposed reply advisine: that, as stated in its letter of October 13, the Board is of the °Pinion that the apPlication should not be approved until it has been clemenstrated that the trust department of the bank is being properly anaged and that the conditions which Previously occasioned the criticism Of the national bank examiner will not again be permitted to develop, and that further consideration will be given to the application on the basis or the report of the next examination of the bank. Upon motion, the proposed letter was approved. Draft of reply, approved by the Executive Committee, to letter dated October 13 from the Assistant Federal Reserve Agent at Chicago transmitting Copy of an agreement under which the Farmers State Bank of Eureka, a member bank, on September 24, assumed the deposit liabilities ' e144 acquired certain assets of the First National Bank of Eureka including 8. cheek in the amount of 413,663.91 from the Homo Farming Corporation of Which latter institution advanced a total of .J22,663.91 to the 114t1°Taal bank under an agreement whereby certain additional assets of the ilati°nal bank were trusteed to secure payment of the advance; the proposed 1'8131Y requesting that, before the Board considers the question whether the "tion of the State member bank involves any change in the general character Of its aasets or in the scone of the functions exercised by it, the "ant Federal Reserve Agent advise whether the _farmers State Bank is el'IlYing any note or other obligation of the Home Farming Corporation, the t Uational Bank of Eureka, its trustees, or any other person, or persons, the vaYMent of which is dependent ultimately upon the liquidation of the 49 11/3/31 -5- trusteed assets of the national bank. Upon motion, the proposed letter was approved. In connection with the above, consideration was also given to draft Of reply, approved by the Executive Committee, to letter dated October 22 rr°m the Assistant Federal Reserve Agent at Chicago inquiring whether it is liecessarY for the Farmers State Bank of Eureka, Illinois, the liquidating €11311t of the -?irstl'.ational Bank of Eureka, to apply for cancellation of the Pederal Reserve bank stock issued to the national bank, or whether the trustees appointed by the national bank and who now hold the stock may make 1131111cation; the proposed reply stating that the application may be made b/r the trustees, but that it should be based on a resolution of the board O directors of the national bank snecifically authorizing the application, 44d that advice should be obtained from the Fa ners State Bank as to whether It ha8 any objection to the cancellation of the stock in question. Upon motion, the proposed letter was approved. Telegram dated October 29 and ICovember 2 from the Governor of the l'edellal Reserve Bank of Einneapolis, on the question whether the Grain 2tab11ization Corporation, which is owned and operated exclusively by e°°Perative marketing associLtions, may itself be classed as a cooperative 44liketinL; association so as to bring its pa)er under Section VI (b) of ae-tl1 ti°13- A; the cuestion having been raised by the possible offerirk; for l'ecliecount by a Federal Intermediate Credit Bank of a note of the Grain 'c3tilllization Corporation which will have a maturity making it ineligible le°1' l'ecliscount unless it can be classed as agricultural paper. After discussion, upon motion, it was voted to advise the Governor of the Federal Reserve Bank of idnneapolis that, in the opinion of the Board, the corporation referred to is a cooperative marketin7, 11/3/31 -6association within the meaning of Section 13(a) of the Federal Reserve Act and Section VI (b) of Regulation A. ,'TDDG CaillaTrEES: Dated, October 31 Recommending chunges in stock at Federal Reserve banks, November 2 as set forth in the Auxiliary lanute Book of this date. 3 Recommendations anDroved. The meeting adjourned at 12:20 p.m. 41111roved: 351 AUXILIARY MINUTES (November 3, 1931.) r Reports of Standing Committee dated October 31, November 2 and 3, °mmending changes in stock at Federal Reserve banks, approved as " follows: -43. -P-2-1.9_ .ations for ADDITIONAL Stock: Shares District No. 7. GerberState1 Bank, Argenta, Ill. TiPton National Bank, Tipton, Iowa. 3 LaPeer County Bank, Imlay City, Mich. 1 A lications for SURRENDER of Stock: Listrict No. 5. st National Bank, Fort Mill, S. C. (Insolvent) 5 30 30 37 156 193 District No. 9. Labo r National Bank of Montana, Three Forks, Mont. ( Pirst Insolvent) National Bank, Fairfield, Wis. (Insolvent) 18 19 37 istrict No. 11. Zirst National Bank, Bishop, Tex. (Insolvent) p7euritY National Bank, Bowie, Tex. (Insolvent) 'ret National Bank, Mathis, Tex. (Insolvent) 21 30 24 75 47 Total 47 382 District No. 7. 1,011111e State Bank, Moville, Iowa. (Insolvent) Ifteard State Bank, Monroe, Mich. (Insolvent) I)iet Ille Bank, Holtville, Calif. (Insolvent) Secretary. ApprOved:
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