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A neetin,7 of the 71]xecutive Committee of the Jiederal lieserve Board was he] ci in Washington on ihursday, rovember 3, 1932, at 11:10 a. r6 PRES:LITT: Governor I.:eyer Hamlin I:111er Lagee Er. Ebrrill, Secretary DicClelland, Assistant Secretary la% Harrison, _Assistant to the Governor. 17-1% Goldenweiser, Chairman of the Committee on Branch, Group and C44111 RA, 4 I:esurs. Smead, Rounds and Clerk, I.:embers of the Oommittee, ai dc110, 3ecretary of the Camaittee, 1:_r. Greer of the Conuaitteets staff, 44c1 zaattner of the Board's Division of esearch and Statistics were 418° 14resent. Oil 8razieb. Goldenweiser reviewed briefly the activities of the Committee Group and Chain Banking since its appointment on 1:ebruary 26, 14')()) elld outlined the studies which have been made by the committee in )114etion with its wor and their status. He stated that these studies 17111be Presented to the Hoard as a part of the complete cormittee report; tIlEtt the c il1ttee is now in session Preuarin7 a short report which will Dteaellt TI:crY form the information developed by the detailed studies; 44(1 t4at it is hoped to have the short report in the hands of the Board Withill the next f ew days. A general discussion of a number of problems in the ield of the comaittee's investimtion ensued, at the conclusion of which theabers 141etir. 01' the committee and :lessrs. Riddle, Greer and Blattner left the lIxecutive Cannittee then considered and acted upon the following eLrQJII dated ilovember 2, 1932, from the Chairman of the .1jederal °I' Boston statinC that the board of directors, at its meeting 391 11/3/32 -2- ollthat date, made no change in the bank's existing schedule of rates of discount and purchase. Without objection, noted with approval. LeMorandum dated Tovember 2, 1932, from the Director of the Division Of re search and Statistics, -transmitting and recommending acceptance as of 11c)vcniber 1932, of the rasiSnation of Ers. Dorothy F. Belsley, an employee or tho D ivision; the reason given for the resignation being the Proposed by the Civil Service Commission as to 's., 3elsley who is employed it8 °wn erCAllization, of the provision of the Economy Act which requires that in reductions of personnel, married persons, living with husband or Wire, et112.°Yed in the class to be reduced shall be dismissed before ary Pers°ns employed in such class, if such husband or wife is also in the 4°10 of the United States. Resignation accepted as of the close of business November 0, 1932. Reply to a letter dated October 26, 1932, from the Federal Reserve et at Philadelphia with regard to the application of the Berks County Nat Reading, Pennsylvania, for membership in the Federal Reserve Yetera Iyhich has been under consideration by the Board. The reply stated that th e 1:31°3.I'd is deferring action on the application pending receipt of the , 4 ox.t Of tiae an examination of the trust company, suggested by the Board which :et stated could be made on or about November 15, 1932, together with e°121tta recommendation as to the action to be taken by the Board. Approved. 'letter to the Federal Reserve Agent at New YeTk referring to the Or the "President and Directors of the I.Tanhattan Company", ITela -eW York, for a reorganization of that company and its affiliated 392 11/3/32 illstit4tions, which plan includes an application to the Federal Reserve 8ofly.A on behalf of the company for menbership in the Federal Reserve System. The 1 etter stated that the Board does not feel that the examinations as of Ikrch 4 - and Earch 9, 1932, of the Bank of Manhattan Trust Company and the ' 10nal Acceptance Bank, Incorporated, the principal institutions in-' -Ls are sufficiently recent to provide a satisfactory basis for con"derat' ion of the company's application, and that the Board, in order that it lr have the benefit of current information which will reflect as nearly 84Practicable what will be the condition of the Manhattan Company as the te81Qt of its reoroanization, will require current examinations of the Bank L:a*lattan Trust Company and the International Acceptance Bank, Incorporateq, zita wea as of the assets of the Manhattan Company, to be participated illbY the Federal reserve agent's department. The letter also referred to the uoldin by the Manhattan Company of the stock of the County Trust °°t14Y3 Jhite Plains, New York, mid the Corning Trust Company and the Earth 44 State, '"ank, both of Corning, New York, and suggested that the agent 41ae the c°n1PanY of the Board's recent ruling regarding the acquisition another ban:: by a State member institution, so that the I:anhattan ' a(1141/11, C-I-ve due consideration to this aspect of the questions involved '17°I'lzing out the proposed reorganization. Approved. 114other 14 connection with the above, Mr. Hamlin raised the Question as to ,4ex. eo e Board iaay legally refuse a request made by a State member bank, .(N1111,e nclitions of membership prescribed by the Board, for permission to et°e1: in another banking institution, unless the Board has iv° inrormation that the acquisition will impair the condition of 393 11/3/32 the Purchasinc institution or violate some provision of law; also, whether "bell a State raenber bank purchases the stock of another bank, without obtainthe Board's Permission under its conditions of membership, the Board has Etilt4ritY to take any action in the matter when the Purchase does not impair the . "°ndition of the institution or violate some provision of law. After a brief discussion, the Secretary was authorized to discuss the matter with the Board's counsel and to request him to prepare a memorandum on the subject for the consideration of the members of the Board. Letter to the governors and Federal reserve agunts of all Federal Nerv, e banks transmitting a program for the meeting of the Board with the eolperno 12 and Federal reserve agents in Washington on November 14, 1932. The letter stated that it is understood that at the conclusion of the Board's IllraJa, which it is hoped will be completed on November 14, the Federal Nel"Te agents and governors may, if they so desire, discuss any other subJecta in which they are interested, and that at a session on rovember 15 or 14' rollowing such discussions, the Beard will receive any recommendations 7411ell the 2ederal reserve agents or governors nay have formulated for its Q°1'411cleration. The letter also stated that while a general discussion of Llarket policy will take 'place on November 14 as a part of the Board's the Board desires that a meeting of the Open 1.:arket rolicy Conference be while the rier.thers of the conference are in Washington. Approved. kte 0 TeleCraDhic reoly to a telegram addressed to Governor T:eyer under l'17°vell1ber 3, 1932, by Er. Robert A. Taft, Chairnan of the Hamilton C°11=Ity ReD111,14 ---"can Executive Committee, Cincinnati, Ohio, protesting against a'eci crImination which allows directors of the Federal Reserve Bank liciriz to enr ,ar,e in certain political activities while the directors of 11/3/32 394 -5- tile Cincinnati branch of the Federal Reserve Bank of Oleveland are barred PlIblie indorsement of President Hoover. The reply stated that the Board 110t undertaken to bar members of the boards of directors of Federal rebank3 or branches thereof in their individual capacity from indorsing 11°14ti0al candidates. The reply also referred to the Board's resolution of 23) 1915, which is still in force, and stated that, if Mr. Taft knows or activity on the part of any director which contravenes the resolution, t4 d will consider any facts he may desire to submit in respect thereto. Approved. RePorts of Standing Connittee dated November 3 1932, fecomnending 4111)z°7.41 of the following changes in stock at Federal reserve banks: it IM411. 9 . 11* of Stock: 4:4-ct No. 7, SURRITILIil Nat iOnal Shares Bank, Story City, Iowa. (Tnsolvent) 54 tlee National Bank, Negaunee, Lachigan. .Abs. by First National Bank of Negaunee) "4 1Tational Bank, Sisseton, S. Dak. (Insolvent) 75 60 135 270 Total 270 459 katzic, 1)1 1)1,e let 110. 12. e CitY National Bank, Boise) Idaho. (Insolvent) Approved. Thereupon the meeting adjourned.
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