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1:p A meetin of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, "lovember 4, 1931, at 11:30 a. II. PRESENT: ALSO PRESENT: Governor I:byer Mr. Hamlin Er. Miller Mr. Tames Mr. Magee Mr. Morrill, Secretary Er. McClelland, Assistant Secretary. Mr. Harrison, Assistant to the Governor. The Governor stated that in accordance with the discussion at the fleet' k; yesterday, he, together with Messrs. Snead, Goldenweiser, Riefler ' j4cl Harrison, called upon Senator Glass yesterday afternoon and discussed blleflY the plan for the computation of reserves of member banks proposed 1/ the Coralittee on Bank Reserves. Governor Meyer stated that Senator Glass 4wed considerable interest in the matter. The Governor also presented, l'°Is the Board's consideration, a draft of a letter to Senator Glass trans1tt111C, in accordance with the latter's request, a copy of the Committee l'el)(3rt and of a Proposed bill incorporating the Committee's recommendations, 6" etatin.3' that while the Board has not had an opportunity to consider the l'ell°1 't and bill in detail, it felt that it should be brought to his attention 88 80 °a as possible, especially in view of the fact that it is understood that a sub-committee of the Senate Banking and Currency Committee will IIII°bablY meet some time in the near future. Upon motion, the proposed letter was approved. The minutes of the meetings of the Federal Reserve Board held on ()tober 2y and, 30 were approved. The following matters of business were then considered and acted 4111311 bY the Board: l i 11/4/3i -2- Telegram dated November 4 from the Chairman of the Federal Reserve 138 ' llk of St. Louis, advising that the Board of Directors, at its meeting on tIATA date, made no change in the bank's existing schedule of rates of discOlUlt and purchase. aithout objection, noted with approval. IlePorts of Coramittee on Salaries and Expenditures on lists submitted by the Federal ileserve Junks of Boston and St. Louis of employees for whom the ,. '41rectors authorized leaves of absence with pay on account of illness the month of October, where the total of such absences since January 1) 1941 has exceeded thirty days; the Board's Committee recommending e‘1391431ral O.L. the salary payments involved. APoroved. Telegrams dated November 2 and 3 from the Governor of the Federal 4se), ' Ire Bank of San Francisco referring to the present reserve position of the baak Which is below 50:), and requesting that the Board authorize it to Nu, count paper offered by the Federal Intermediate Credit Banks of 1 e4-eY and Spokane in the amounts of a,000,000 and -500,000, respectively; the Is equest having been informally approved by the Executive Committee on november 3. Upon motion, the informal action of the Executive Committee was ratified. Report of Committee on Salaries and Expenditures on letter dated , ( tobe ' 31 from Deputy Governor Helm of the Federal Reserve Bank of Kansas CitIr -4e2tinf,; approval of a change in the personnel classification plan the b uank to provide for a decrease in the salary range for the position tell°C;rapher to the Assistant Cashier in the Loan Department; the Board's 11/4/31 -3- C°11111ittee recomaending approval. Approved. Draft of reply to letter dated October 15 from the Secretary of the Pe Ueral Advisory Council requesting advice as to the topics which the Board (lesires the Council to discuss at its next meeting which will be held in ileau4 .".Jalgton on Yovember 17; the proposed reply stating that the Board believes that the meetin,; could be devoted most profitably to a survey of tile banking and credit situation and the outlook for business in each of the Federal Reserve districts from the point of view of their bearing upon ec1161tiona in the country as a whole, and that, in this connection, the Board Th le —vslrous, among other things, of having the benefit of the views of the fletli3er5 of the Council with respect to the manner in which the present facilities, including those of the Federal Reserve System, are -11-alg and to what extent there are legitimate needs that are not being et Upon motion, the proposed letter approved. was Report of Executive Comraittee with regard to a letter dated °0tobe „ 4. 00 from the Chairnan of the Federal Reserve Bank of Chicago, transWith a favorable recommendation, the application of the First 1\kti 1 Bank in Aurora, Illinois, for permission to rediscount paper acquired toltt t _10 Farmers State Bank of Samonauk, Illinois, a nonmember institution; the 8 ' cal'd's Committee recommendimg that the Federal Reserve Bank of Chicago be 4tlic)riled, in its discretion, for a period of six months from this date, -e(I18count for the national bank, good and otherwise eligible paper " g-411-nri from or bearinL, the signature or endorsement of the Farmers State .- P 11/4/31 -4- Bahic of Somonauk. Recommendation approved. Draft of reply, approved by the Executive Committee, to telegram and letter dated October 28 from the Federal Reserve Agent at Dallas, advising that on October 31 the Commercial American Bank and Trust Company, Shreveport, Lotoc, • -alanu, would merge with the Continental Trust and Savings Bank of ShreveUnder the authority granted by the Board on Kay 11, 1931; the proposed requestinc, that a Federal Reserve examiner participate in the next e:"tIldnation of the consolidated bank with a view to determining whether all or the assets of the Continental Trust and Savings Bank which were classi- ried as doubtful or loss at the time of the examination of the bank on April 26 '1931, were eliminated before the merger became effective, as required by the B c lrcl, and that the Federal Reserve Agent forward to the Board certain 1-)eeified information concerning the consolidation. Upon motion, the proposed letter was approved. Draft of reply, approved by the Executive Committee, to letter dated °Qtob er 7 from the Federal Reserve Agent at Kansas City transmitting, in e°141eoti -on with the application of the First National Bank in Lamed, Kansas, . rot 1) - ermission to exercise fiduciary powers on which the Board deferred tion On July 2, 1931, Pending the next examination, a copy of an analysis Or n -rePort of examination of the bank made on August 27, 1931, together with 1.8 ndation of his Executive Committee that, for reasons stated in his ' the application be renised, the proposed reply stating 4e de? -initely raoh, cle tailed err ect or that before on the application, the Board would appreciate receiving observations from the Federal Reserve Agent regarding the the cri;icized policies awl practices of the President on the con- 11/4/31 —5— 336 clitl°11 of the bank, and with regard to the Federal Reserve Agent's opinion t113:t authority for the administration of trust powers Should be withheld. Upon motion, the proposed letter was approved. Reference was then made to previous informal discussions regarding te Wivisability, due to the congestion of the present wires, of contracting n additional leased telephone wire between the Board's offices and the Pede ral Reserve Bank of New York, and it was suggested that, for the time betk; at least, an additional wire be installed, and in order that there may 116110 question of its availability at all tines, that it be installed to tellninate in the Governor's office rather than the Treasury switchboard, as la the case with the Present wires. After discussion, upon motion, the Secretary was authorized to arrangp for a contract for a new wire for a period of three months, at a rental of :A.68 per month. OF STANDING COM:TITTEES: bal;ed,, november 2 Recommending approval of the application of Mr. Max Hirsch, for permission to serve at the same time as director of the Lincoln National Bank of Cincinnati, Ohio, and as director of the Cincinnati Morris Plan Bank of Cincinnati, Ohio. Approved. ipatea, 4ovember 2 Recommending approval of the application of Mr. E. W. Tones for permission to serve at the same tine as officer of the Iowa-Des Moines National Bank and Trust Company of Des Moines, Iowa, and as director of the Poweshiek County National Bank of Grinnell, Iowa. Approved. ikted, loovember 2 Recommending approval of the application of Mr. Ernest Griess, for permission to serve at the same time as director of the Lincoln National Bank of Cincinnati, Ohio, and as director of the Cincinnati Norris Plan Bank of Cincinnati, Ohio. Approved. to ove nmber 3 Recommending approval of the application of Yr. W. L. Hert, for permission to serve at the same time as director and officer of the First National Bank of Comanche, Okla., and as director and officer of the First National Bank and Trust Company of Oklahoma City, Okla. Approved. Dated, rovember 4 Reconnending approval of the application of lir. Richard Harte, for permission to serve at the same tire as director of the State Street Trust Company of Boston, Mass., and as director of the First National Bank of Easton, rorth Easton, Nass. Approved. kted, November 4 Recarnending approval of the application of /a.. Tohn A. Hulen, for Permission to serve at the same time as director of the Fort .;orth National Bank of Fort Yorth, Texas, and as director of the Second National Bank of Houston, Texas. Approved. kted, November 4 Recommending approval of the application of Mr. B. H. I:artin, for permission to serve at the sane time as director and officer of the Fort Worth National Bank of Fort Worth, Texas, and as director of the Alvord National Bank of .,11vord, Texas. Approved. The meeting adjourned at 12:45 D.m. 44°ved:
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