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A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Eonday, November 9, 1931, at 11:25 a. m. PRESENT: ALSO PRESENT: Governor Meyer Mr. Miller Mr. Tames Yr. Magee Mr. Morrill, Secretary. Mr. McClelland, Assistant Secretary. Mr. Harrison, Assistant to the Governor. Mr. Wyatt, General Counsel. The following matters of business were considered and acted upon by the Committee: Letter dated November 5 from the Jecretary of the Federal Reserve Batik ' 1 New York, and telegrams dated November 4 from the Chairman of the Pederai Reserve Bank of Boston, November 5 from the Chairman of the Federal PeServe Bank of San Francisco, November 6 from the Secretaries-of the Federal Reserve Banks of Cleveland and Kansas City, and November 7 from the Cheiralan of the Federal Reserve Bank of Dallas, all advising that at meetings °r tha-r Boards of Directors on the dates stated, no changes were made in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Reports of Committee on Salaries and Expenditures on lists subrIlitted by the Federal Reserve Banks of Philadelphia, Minneapolis and Dallas, °t employees for whom the directors authorized leaves of absence with pay °11 ""unt of illness, during the month of October, where the total of such tillsenees since January 1, 1931, has exceeded thirty days; the Board's e°Mmittee recommending approval of the salary payments involved. Approved. Report of Committee on Salaries and Expenditures with regard to a 6:D 11/9/31 1-N -2- letter dated October 29 from the Chairman of the Federal Reserve Bank of Dallas requesting approval of the appointment of LT. E. S. Chambers to the ePPraised position of Special Representative in the Loan Department of the bank) at a salary of (.:,i2,100 per annum; the Board's Committee recommending ePPrcval. Approved. :Iemorandum from Counsel dated November 6 with regard to an application filed by the receiver of the National Bank of Fayette County, Uniontown, Penna., r°r surrender of 600 shares of Federal Reserve bank stock held by the tietional bank; the receiver having failed to attach to the application a certified copy of his commission as provided in the application form. In his memorandum Counsel stated that inasmuch as the Board is formally advised bY the Comptroller of the Currency of the appointment of receivers of ti°flal banks, he is of the ()Pinion that it is not necessary for the l'eeeiverts application to be accompanied by a copy of his commission, and that the Board may properly approve the apPlication filed by the receiver of the National Bank of Fayette County. Upon motion, the application, having been informally approved by the Executive Committee of the Board on November 7, was formally approved. Telegraphic reply, informally approved by the Executive Committee of the 13°ard on November 7, to letter dated October 27 from the Chaimen of the ?eciel ' al Reserve Bank of Chicago transmitting the application of the Citizens 1\111°11.8`1 Bank, Hampton, Iowa, for permission to rediscount paper acquired tli°n1 n°nmember banks; the Board's reply stating that the Federal Reserve 441 °I' Chicago is authorized, in its discretion, for a period not exceeding 11)cilorithe from November 7, to rediscount for the applicant bank good and °ther.wiee elii;ible paper acquired from and bearing the signature or endorse a 67, kJ I. 11/9/31 -3- blett of nonmember banks, the Board's permission being granted with the under- standing that before such permission is availed of the Federal Reserve Bank Of Chicago will assure itself that proper measures to correct the unsatis- factory condition of the bank have been instituted and will be carried out. Upon motion, the informal action of the Executive Committee was ratified. At this point Mr. Pole entered the room and a meeting of the Board thereupon convened for consideration of the following matter: Telegram dated November 9 from the Governor of the F.pderal Reserve 8441t of New York, advising that the Board of Directors of the bank has "lorized the officers to send to the conference of South American central be-nks, which will be held in Lima, Peru, on December 2, Messrs. Allan Sproul, Aesistant Deputy Governor, and Eric Lamb, of the Foreign Department, and to 4gage Professor E. W. Kemmerer to go as one of the bank's representatives, h() are to take part in the discussions but in no way to commit the bank to 44' action, policy or program; the directors having also voted, subject to the approval of the Federal Reserve Board, to pay Professor Kemmerer a fee Of 45,000, plus expenses, for the trip which it is estimated will consume in 411 about a month or six weeks. In this connection the Governor also advised the Board of a cablegram, addressed by Governor Harrison to the five South —44 central banks which will attend the conference s acquainting them 17ith the limitations which will be imposed upon the representatives of the 11"1 l'ork bank at the conference. Upon motion, the payment to Mr. Kemmerer authorized by the directors of the New York bank was approved, Mr. Miller not voting. Ur. Pole then left the meeting, which reconvened as a meeting of the 4e0Utive Committee° 11/9/31C;611-4Consideration was given to draft of a reply to letter dated October 28 from Congressman Louis T. McFadden to Assistant Secretary McClelland requesting "a list of the syndicate acceptance credits amounting to over one dollars apiece which have been reported to the Board since February, 191B, the name in each case of the accepting bank or banks, and the purpose Which the syndicate acceptance credit was arranged"; the Proposed reply 3t4ting that it is not clear from la% 11:cFadden's letter what transactions he has in mind and that if he will give a more definite description, further inquiry concerning the matter will be made with the view of ascertain- trig whether it will be possible to furnish the infornatien desired. Upon motion, the proposed letter was approved. Reports of Standing Committee dated November 4, 5, 6, and 9, ree °Irlending approval of the following changes in stock at Federal Reserve bazka: A -Lications for UIGINAL Stock: .04,_ute National Bank, Peru, Illinois: ., -.Luet National Bank in Tremont, Illinois. Shares 105 23 128 18 18 180 180 lication for ADDITIONAL Stock: National Bank, Locanaqua, Pa. 1)4 113 r SURRENDER of Stock: ic National Bank, Waterville, 1:aine. (V.L.Abs. by PeoPles National Bank of Waterville) 1044strict No. 2. t ÷ 4.114deli °nal Bank, Unionville, E. Y. (Insolvent) Ilational Bank & Trust Co., Linden, N. J. •-•-i•St1C• by Linden National Bfink) 270 306 1:)e1.1..etri sr ..Qt lie. 5. ti°nal Bank, Gary, VI. Va. (Insolvent) 17.4tirl.„ -Ld--1- Exchange Bank, Weston, 1. Va. (Insolvent) 60 120 180 36 11/9/31 -5- Iaications for SURRENDER of Stock: (Cont'd) .t130Ples National Bank, McMinnville, Tenn. (V.L.Abs. by city Bank & Trust Company) Shares 60 60 9-18tric".o. la!triers National Bank, Sunman, Ind. (V.L.Suc. by Farmers Bank of Sunman) 414ericala National Bank, Grand Rapids, Llich. (V.L.Abs. by American Home Security Bank) xlrst and Tri State National Bank and Trust Company, Fort Wayne, Ind. (V.L.Abs. by Old-First National 04,. Bank and Trust Company) "linua National Bank, Ottumwa, Iowa. (V.L.Suc. by .Union Bank and Trust Company) izen3 National Bank, Peru, Ind. (V.L.Abs. by Vabash Valley Trust Company) t National Bank, Ottumwa, Iowa. (V.L.Suc. by First Bank and Trust Company) 24 450 2,025 150 90 144 2,883 180 180 istrict No. 9. 48t N ational Bank, Gackle, N. Dak. (V.L.Suc. by .arst State Bank of Gackle) 21 21 -,13-119.ct No. 10. 1,' 'lta0 113-ici-Tonal Bank, Limon, Colo. (Insolvent) t National Bank, Deer Trail, Colo. (Insolvent) '-Lrst National Bank, Mina, Colo. (Insolvent) 36 17 36 89 12 Total 12 3,911 -M:,tSict No. 8. Irs.1a.--7i-c717-1a1Bank, Paducah, Ky. (V.L.Abs. by City National Bnnk of Paducah) 11.stri3t No. 11. National Bank, Sweetwater, Tex. (Decrease in eurPlus) Approved. Reports of the Law Committee dated November 7, recommending approval o the following Clayton Act applications: C. A. Vose, for permission to serve at the same time as ector and officer of the First National Bank and Trust Co. ' 13 Oklahoma City, Okla., as director of the Citizens National Natallk of El Okla. and as director and officer of the American Reno' ' °nal Bank of Fort Towson, Okla. Mr. M. A. Arnold, for permission to serve at the same time as director and officer of the First Greenwood National Bank of Seattle, Wash., and as director and officer of the First Seattle Dexter Horton National Bank of Seattle, Wash. Mx. F. H. Brownell, Jr., for permission to serve at the same time as director and officer of the First Greenwood National Bank of Seattle, Wash., and as director and officer of the First Seattle Dexter Horton National Bank of Seattle, Wash. Approved. The meeting adjourned at 12:30 p.m. Is 1)15ZOIrea:
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