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r:eetill trip of the T'ederal Reserve 3oard was held in the office of -'-!erAeral 7.eserve 3oard on ".:'riday, 7oveber 6, 192J, at 11:20 c.T. Governor CrissinL;er Harlin 1:r. Filler 1:r. James 1".r. Cunninhal.:1 Eddu, Secretary. The GoverAor stated he had called the Leetin; for the PurPose of "n3iderilv-: the recoirendation t're rilrectors of tie 2ederci.7.eserve 31?11127- of 3ostor, transmitted to the loard by telerar fro' tr Q Meirr.cn °11 30-eterber V recliscoont rate of that 3nni: be wqieh reco, re'ation the 3oard voted at its 1 eetin ly 23rd to table. • that tTle Tre stated that he called at on Selyteroer . attar lie for c( -Isioeration this ti,e in view of the ieL'or , - ation with rl-crd to the •3eneral busi- ess aid financil situatio develo-f)ed by the 3oard tin in eetings held witL. Gee pien 1-arket Investrent Colittee for the Federal Reserve System • 75.t7 the .federal Reserve .;.ients and Governors durin C011fe rericos. rollowin their recent Fr. Cunninffnam then suereitted and moved adoption of the resolutions: "Resolved, that an advance in the discount rate of the Federal Reserve 3ank of Few York froL its present rate of :three and one-half per cent (3) to four per cent (43), effective at the openinc; of business Mursdaz7 Triornin ), :Jove- her 12th, is here by approved. Resolved further, if the forego in resolution should be favorably acted upon by the Federal Reserve 3oard, the Governor o: the 3oard is requested to colimunicate to the Federal Reserve 3ank of hew York the substance of the resolution for such action as they ra.y deere necessary prior to its effectiveness." 27-lema'eoll followed a discussion of the relation of the rediscelznt '• s of t2:).e Federra reserve ban?..s to the henoral money market, follawinv '4115c-:' Dr. - iLler stated that - 11/6/25 "It is clear from eLet has been said here this mornin-: that the Joard is going to take some action ..rith Ir. LInninehat's increasing discount rates. in the rate at ew -ork increase seeking an resolution before the ioard, and win Tr. James' statement of intention to offer a resolution approving increase of the rate at 3oston, the euestion to be settled is whether Boston or 7ew York is indicated as the more appropriate Place for taking action. In my opinion the most appropriate place for rate action at this juncture is Few York. That was Try aninion last September then I sought to bring about action in Yew York; that is my opinion today. Two things are especially striking in the recent past and present credit situation: One is the unprecedented volure of the country's floating credit sir,:p1;,-; the other is the irrense proportion of that supply put The Federal into the call rarket in ::ew York City. not to responsibility Reserve System has a very ,:rave do an-,:thing which aiiravate the situation and not to omit to do anything it reasonably can to keep it fro). et ,in unhealthy. I a;ree with Tr. Cunnin?:har that ITew York is the place where action Should be taken to be effective. If we are goi2L, to raise the signal for psychological purposes, let us raise it where it will be seen and understood, where it has been expected by the 1 arket for weeks, and where it will be properly r_y interpreted by the greatest number of people. judgment is that that place is not Boston at this tiree, but Fey/York. Therefore, with both resolutions before the 3oard I shall vote for Yr. Cunningham's resolution if he will consent to brine; it into regular forr, and I would prefer if he would reframe his resolution as one expressing the Board's oninion that the Few York rate Should be increased and requesting an expression of views and a reco, rendation on the Question of discount rate from the Yew York Bank. If, however, Yr. Cunningham is unwilling to go this far in the amendment of his resolution, I will still vote for it. If his resolution carries, I shall not vote in favor of taking the Boston resolution off the table. 3eill; now on the table by vote of the Board taken last September, it will do no harm, in 1 - r oeinion, if the resolution continues to lie there until it may )e seer what effects follow the increase of the rate in .7e.,e York. If, however, Yr. Cunningham's resolution fails, I will vote to take the Boston resolution off the table and in favor of an increase in the 3oston rate to 4 per cent, as the next best thine: that can be done." re' 11/6/2,5 Fr. Cun-linjlar stated thrt ho was prel)rred to revise and Low_ adel-tion of ”Lis rr,sol-,tians as follows: the "Resolved, that the Federal Reserve 3oard, in of motion tiu crii exercise of it's power of review a fines :Lore9; rates,. Federal r:- serve banf:' discount Federal rodisco,Rnt rate of ;our -oer cent (4)) iOltTLe of oLeninE.: the at effective :Reserve 3anh of :0-.7 York, 12th. 1:averber busi]-ess 71.nrsda:,7 mornin,T, Resolved further,, if the 'oregoinh resolotion SO 11' e avora)1 - acted u -on by the Federal Reserve COT3oard, tn Jovernor of the board is rec,uested to municato to the 'Federal Reserve 3affic o; 7"ew Yor'.: the snstance of the resolution for such action as they doeT necessar: onion to its effectiveness." Yr. Cmininharts motion to adopt the resolutions as revised, being put by the chair was lost, the members voting as follows: Governor Crissinzer, "no" In. Tramlin, "no" Fr. jares, "no" Fr.. Filler, "aye" Yr. Clinnin::har, "aye" rr. dames then moved that the 302nd reconsider its action of senteber votinfT; to la7 on -Cle ta'91e the recor7-.en(7,2t1on of the board of directors of the Federal l'eseve Jan:: of 3oston that the cent to 4 per l'ecii30017nt rate of that ban':: be increased from 3i per dames' motion being put by the Chair, carried. unanirously Was recommendation rr. .Tames then roved that the 3oard approve the Of Vne board of directors of the Boston ban"7 that the rediscount rate be increased to 4 per cent. Jaest, motion being put by the Chair, was carried, Fr. Ounnham votin "he. -4- 7Acretar7 reported that 'Le had advised Yr. :lett over telePhone that at the reetin today consideration would b l'ec o'imenantiop of the directors of the 2edercl :eserve given to the f 3oston that 4.cie reOiscoult rate of that bank be increased to 4„; and that Fr. 11" r3tt 1.1r(1 reouested him to state to the 3onrd that he (Yr. Platt) is ill fever of n'oprovin': the reco,lrenation of the directors of the 3oston apin: he and tirt if it were --ossible for hir to be present at the leetin,_; wolll(t vote. so 2-1.f - ter disaqssiod as to the effective date of te rbove c-Jrn 'e, ilCii , I the Secretar:, erdeavoreo, to cortunicnte with the governor °f3o.)ton ,. bank over the telep,one but was unsuccessCul, Tr. Harlin 'ed th:t the rediscount rate of 4/3 be made effective Tuesday, roveC)er 10, 1 925, and that annowacerent thereof be rnde at the close of business Forldny, Levember 9th. Tr. -!amlints rotion beins. put by the Chair, was unanilonsly carried. The reetim adjourned at 12:40 p.m.
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