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0010 t<4•..) A meetinL; of the federal Reserve Board was held in the office of the della Reserve Board on Friday, :ovember 7, 1930, at 11:15 a. in. PRLZENT: Governor Meyer Mr. Hamlin 1Zr. Taller Mr. James Mr. Cunninu,ham McClelland, Assistant Secretary The minutes of the meeting of the Federal Reserve Board held on October 30th Weze read and approved. The minutes of the meeting of the Executive Committee held on I:ovember 3rd Were reed and upon motion, the action recorded therein was ratified. Letters dated October 30th and 1:ovember 6th from the Secretary and A.831 stant Secretary of the Federal Reserve Bank of Mew York and telegrams dated 1 b 5th from the Governor of the federal Reserve Bank of Bo ton; November GtIr„ela1 4. the Chairman of the Federal Reserve Bank of Philadelphia; Tovember 5th 11/ tile Chairman of the Federal Reserve Bank of St. Louis; 7Lovember 7th from 011airman of the Federal Reserve Bank of Kansas City and lovember 6th from tlleOhairraan of the Federal Reserve Bank of San Francisco, all advising that ' r boards of directors at meetins on the dates stated made no changes in the bknks 6413tin5 schedules of rates of discount and purchase. Without objection, noted with approval. RePorts of Committee on Salaries and Expenditures on lists submitted by '4cleral Reserve Banks of Boston and St. Louis of employees for wham the (illieetoza Of those banks authorized leaves of absence with Pay, on account of 1114e8s$ during the month of October, where the total of such absences since a'ab lt 1930 has exceeded thirty days; the Board's Committee recommending 41131 '°11€11 of the salary payments involved. Approved. 4147/30 _2- 11 Reports of Cammtttee on Salaries and Expenditures an letters dated October 17t4 alad 25th from Deputy Governor Gilbart of the Federal Reserve Bank of New York October 29th from the Secretary of the Federal Reserve Bank ofCleveland 14141 October 28th from the Chairman of the Federal Reserve Bank of Dallas, recilleetting agoroval of changes in the salary classification plans of the respective bank-, of the Board's Committee recommending approval in each instance. Approved. Report of Committee on Emiminations on letter dated October 30th from the Mts -4e,irman of the Federal Reserve Bank of New York, transmitting and recommend- tAg at -1511wal of an application of the Bank of Manhattan Trust Company of New loric OW York for permission to merge the American Trust Company of New York; the Iioard's Cammittee also recommending approval. / 11 Approved. LIalnoranlim from the Assistant Secretary dated October 31st with regard to : tter dated October 28th from the Federal Reserve Agent at Minneapolis _11/114nLitting a notice of intention to withdraw from the Federal Reserve System by the First State Bank of Stratford, S. D., and recommending approval "the application of the bank that the Board waive the customary six months' tewire talent and permit immediate withdrawal from the System and cancellation of 20 sha res of stock held in the Federal Reserve Bank of Minneapolis; the 4aeletani, Secretaryoutlining circumstances in connection with the application eAd ec)rmlending that certain technical requirements of Regulation H be waived 4114 the aPPlication of the bank for permission to withdraw immediately be 11 441,40 'red by the Board. Upon motion, it was voted to permit immediate withdrawal of the bank. 11/7/30 -3- Draft of letter to the Chairman of the Federal Reserve Bank of San Francisco aciralowled ing receipt of final report of the Bank's Building Committee on the c°rIatruction of the Los :Lngeles Branch Building, advising that the final 11131ete cost of the building is :a05,835.39 below the total of the bids and 3 previously submitted to and approved by the Board; the letter 111447E111 " tQti 'IC taut in accordance with the provisions of S. T. Iles. 142 authorizing the ecillstriletion of the building, the B - oard has approved the actual expenditures, 4114et1 ng :A,430,754.66, set forth in the report of the Building Gamaittee. . Upon notion, the actual expenditures in connection with the building were approved and the proposed letter was ordered transmitted. Report of Committee on Examinations on letter dated November 5th from the kairman Of the Federal Reserve Bank of iliclirnond transmitting and recommending 41)Dzsyni -4- of an application of the Bank of Darlington, Inc., Darlington, S. C., tol, a extension from 1,ovember 15 to December 15 of the time in which the 14stitti+4 v."(311 flay terrainate its membership in the System under the voluntary ii°tiee Of intention to withdraw filed on Larch 15, 1930; the Board's Committee tliao re° mending EID°royal. Approved. i''alalorandum dated November 7th from the Chief of the Division of Bank ODerat. —1°Ils with respect to telegraphic inquiry from the Deputy Governor of the lral , tl°11 Reserve Bank of Dallas as to whether, under the Board's amended ReguladeDesits at the openinr, of business or at the close of business on Should be used in determining reeuired reserves for Sunday; Mr. Smead *4t1-11C; a proposed telegraphic reply advising that required reserves of member b 04 SUnday- should be based on deposits at the close of business on Saturdays. c)rtc-P!_) 11/7/30 -4- 111hi8 memorandum Li]?. Snead also called attention to the fact that in the cir.°111411 the letters of the Federal Reserve Banks of Cleveland and St. Louis, announcing 411411thilent to Regulation D, it is specified that reserves for Sundays and 11(44days shall be the same as for the previous business day. After discussion, upon motion, the proposed telegram to the Deputy Governor of the Federal Reserve Bank of Dallas was approved and the Assistant Secretary was instructed to send similar advice to the Federal Reserve Banks of Cleveland and St. Louis. IlePort of Committee on Examinations and Committee on District No. 8 with. 9.:Eard to application of the Llercantile-Commerce National Bank in St. Louis, it11141 °31 Aucust 1, 1930 moved to a new location in an outlying district, for a I/ ` 4411"i'll in its reserve requirements from 10,40 to 7;,S of its denand deposits; thee recommending approval of a proposed letter to the Federal Reserve ktett at St. Louis advising that the Board feels that under a fair interpretation " ,t8 Alling that applicants for reductions in reserve requirements shall have 111411 it o peration as members of the federal Reserve System for a period of at 11441 one Year prior to the date of application, the Mercantile-Commerce National 1184* illc/Illd operate as a neighborhood bank at its new location for a period of 414 least one year before consideration is given to a reduction in its reserve teqvi 'teizerit8, Upon motion, the letter submitted by the Committee was approved. -' of proposed reply to letter dated October 31st from the Federal Re°Agent at Dallas reporting continued reserve deficiencies on the part of tIte 4-(14es --4z National Bank of Athens, Texas, and recommending that the Board S a letter to the President of the institution advising him that unless 0,710 11/7t60 these violations of law are discontinued it will recommend to the Department of 418tiee that a suit be filed for the cancellation of the bank's charter; the 131 (IIP°8ed relay a risin that before takin: the action suggested by the "Federal 've -:]ent, the Board is referring the communication to the Comptroller of Re8el the CIII'reney for an expression of his views on the recommendation. Upon recommendation of the Conrnittee on Lxaminations and Committee on District o. 11, reference of the matter to the Comptroller of the Currency was approved and the proposed letter to the Federal Reserve Agent at Dallas was ordered transmitted. Draft of letter to the *az , rare dated, October 31st Federal Reserve Agent at Dallas replying to letters reporting reserve deficiencies on the part of the lIational Bank of Del :do, Texas, the American National Bank of Paris, Tezas alld the First National Dank of Bennington, OklahomP; the proposed reply et4ti 11 that in view of the circumstances outlined by the Federal Reserve Agent lirrecti ag each case and in line with his recommendation, the Board has voted kt° tal:e no action at this time regarding the banks named, although it requests he keep it advised of future developments in each case. Upon recommendation of the Committee on Examinations and the Committee on District No. 11, the letter to the Federal Reserve Agent was approved and ordered transmitted. ft of reply Prepared by tire Governor to letter dated October 31st from the G_ u ernor of the Federal Reserve Bank of New York with further reference to etions in sterling. After discussion, the proposed reply in the following form: approved was "Reference is made to Governor Harrison's confidential letter of h Oct°-er 31st, in which the Board was advised that your Bank had about 121eted the purchase of L5,000,000 sterling previously authorized Your Board of Directors, all of which had been or was being con°Iled into bills. Clel 11/7/30 -0- "The Board notes that your Directors have voted to authorize the PUrchase of an additional 5,000,000, as and when it seems desirable to do so, in order to support the market for sterling exchange and with a view of avoiding imports of sold and improving generally sentiment reardinG the exchange situation. It is noted that such additional PlIzchases will be made cautiously and only as circumstances justify. "It is understood from Governor Harrison's letter of October 23rd, 19Rn that so far as these purchases have any influence upon the money !Ilaret or money market rates they will be considered by the Open 4arket Policy Conference, along with all other factors influencing the !redit position, in the execution of the policy agreed upon by the Conrerence and api)roved by the Federal Reserve Board." fr tlerandum Cram Counsel dated Kovember 6th submitting drafts of letters to Newton D. Baker and the Governor of the Federal Reserve Bank of Richmond, 1I1C of approval by the Board of Lir. Baker's employment to represent the 1. Reserve System as a whole in the case of the Federal Reserve Bank of .°14 V. Attmore and related litigation, in which all of the Federal Reserve e v signified their willingness to narticipate; the proposed letters 1511111za El4oato,t1nc, that in accordance with the usual practice iTr. Baker's compensation b ° determined upon after his services have been rendered, with the under''11G that any such compensation shall be subject to the approval of the Upon motion, the proposed letters were approved. ft of letter to the Comptroller of the Currency, ,)repared in accordance l't}1 a 4. -Ci()n taken at the meeting on October 30th, requesting that in future Qe•sez lliv°1vinz reductions in canital of national banks the Board be furnished 1'411 information as to the reasons for his recommendation and all circumztazees involved in the proposed reduction. Upon motion, the letter was amended and approved and the Assistant Secretary was instructed to forward a cony to the Federal Reserve 2117ent at Linneapolis. -7Letter dated October 30th, addressed to the Chairman of the Board by the n -resident, with regard to the organization of the Executive Departments and 4-fluent establishments of the Government in connection with the. forthcoming °4MPa Of the District Community Chest; the plan of organization contemplating the „ qPPointment of a chairman to be responsible Primarily for supervising the cletailn of organization and for soliciting subscriptions of higher executives. After discussion, upon motion, 1:11% Noell Assistant Secretary of the Board, was designated to serve as chairman of the Board's organization 11:01u0tandum from the Assistant Secretary, dated October 'Slat, submitting a Nort in accordance with instructions given at the meeting on October 22nd, on - dated October 20th from the Assistant Secretary af State inquiring as to ba„. —"lei-Dation by the Board in the exhibit of the Government in the Chicago 170114 17. ir of 1933; the report referring to exhibits of certain of the 7ederal banks at conventions of the American Bankers' Association which might be lls ea aE a basis for a 'dorld 2air exhibit and recommending that before any 4te], --...nation is reached by the Board two or three of the 2ederal Reserve bar::s have Prepared such exhibits be requested to designate members of a (1111114ttee, including some one from the staff of tlYe Board, to report on the t11-71bilitY of a System exhibit and in a general way the scope of such an After discussion, it was voted to advise the Assistant Secretary of State that at this time the Board is inclined to participate in the Government exhibit, and while the scope and details of such exhibit will be referred to a Committee for report, it is now estJmated that not more than 10,000 square feet of space will be required by the Board. 110/30 1)(1*ITS OF STAEDING CONIZTIrEES: kted, LoveMber 3rd 5th 6th 7th ktted November 6th Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Ninute Book of this date. Recommendations approved. Recommending approval of the application of Ir. Frank R. Loeffler, for permission to serve at the same time as officer of the Federal National Bank of Boston, lams., and director and officer of the Gloucester National Bank of Gloucester, liass. Approved. The meeting adjourned at 12:30 p. m. eNwerlim,"", Assistant Secretary. Oved: Governor.
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