The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
A. meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, October 140 1931, at 11:45 a. m. PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Tames Mr. Magee Mr. Morrill, Secretary. Mr. McClelland, Assistant Secretary. ALSO PRESENT: Mr. Harrison, Assistant to the Governor. The following matters were considered and acted upon by the Board: Letters dated October 13 from Deputy Governor Crane of the Federal Reserve Bank of New York, advising that at the request of the Bank of the el)1113110 of Uruguay (Banco de la Republica Oriental del Uruguay) and the 11614k of Lithuania (Lietuvos Bankas), the Board of Directors of the Federal Reserve Bank of New York had voted, subject to the approval of the Federal seerve Board, to authorize the officers to open and maintain accounts on the 15°01ce of the New York bank for the two institutions and to carry out °Perations in the New York market for them along the same general lines and 814)Jeet to the same terms and conditions as for other central banks having eccoUnts with the Federal Reserve Bank of New York. Upon motion, it was voted to approve the action taken by the New York directors. Telegram dated October 13 from the Governor of the Federal Reserve 1344k of New York, advising that the Executive Committee of the bank on that aate voted, subject to the approval of the Federal Reserve Board, to author— ize the officers to arrange for a renewal, for a period of three months from °Qtober 3.6, or the bank's participation of about 085,000 in the central bank "edit to the Austrian National Bank which expires on that date. Upon motion, it was voted to approve the action of the Executive Committee of the New York bank. N 10/14/31 —2— Telegram dated October 13 from Deputy Governor Kenzel of the Federal Reserve Bank of New York, reporting recent developments in the bill market and lng that the bank considers the following schedule of buying rates on acceptances as being in effect: Bankers' acceptances: 1 to 75 days 76 to 90 days 91 to 120 days 121 to 180 days Repurchase Trade bills 2 2 2 3 2 1/8% 1/4% 1/2% % 1/4% 2 1/2% Without objection, noted with approval. Telegrams dated October 14 from the Governors of the Federal Reserve 4.41— "of Boston and St. Louis and the Chairmen of the Federal Reserve Banks of Richmond and Chicago, advising of the establishment at those banks of the same 8chedule of buying rates on bankers' acceptances as was made effective at the Pede„al Reserve Bank of New York yesterday, the Governor of the Federal Reserve Bank. 0 f Boston also reporting a rate of 2 1/4% for the purchase of bankers' "cePtences under resale agreement and a rate of 2 1/2'13 on trade bills. Without objection, noted with approval. Telegram dated October 14 from the Chairman of the Federal Reserve °f 6an Francisco, advising of the establishment by the Executive Committee or th e bank of a minimum authorized buying rate of 1 3/4% on acceptances and the p 110wing schedule of effective buying rates: 1 to 75 days 76 to 90 days 91 to 180 days Repurchase 2 2 3 2 1/8% 1/4% 1/2% 1/4% Upon motion, the minimum authorized buying rate fixed by the Executive Committee of the k 10/14/31 -3San Francisco bank was approved, and, there being no objection, the establishment of the schedule of effective buying rates referred to above was noted with approval. Report of Committee on Salaries and Expenditures on a list submitted by the Federal Reserve Bank of San srancisco of ennloyees for whom the directors "lorized leaves of absence with pay, on account of illness, daring the month t SePtenber, where the total of such absences since Tanuary 1, 1931, has ezceeded thirty days; the Board's Committee recomaending approval of the aalarY Payments involved. Approved. Memorandum from Counsel dated October 7 with regard to letter dated °ct°10er 5 from the President of the First National Bank, Durham, I:orth Cr°1ina, requesting information as to the rights and duties of the bank in colinection with a request of the Commissioner of Banks of North Carolina that he bp - furnished with a copy of the report of the last examination of the bank 48 4 condition precedent to the issuance by him of an authorization to do a truz, uusiness without giving bond; such authorization being permitted under l'ecent North Carolina statute in the case of any bank which, in the opinion ot the Commissioner, after investigation, is solvent to the extent of 000 or more. In his memorandum Counsel reported that the office of the e°111,1)troller of the Currency has been in correspondence with the Commissioner 84-331 of Lorth Carolina regarding the administration of the statute l'erell.red to, and Counsel submitted draft of a letter referring to the troller of the Currency the inquiry of the First National Bank of Durham. Upon motion, the letter to the Comptroller, submitted by Counsel, was approved. remorandum from Counsel dated October 12 with regard to letter dated e--uer 3 from the attorneys of The Chase Bank, advising that the branches of 297 10/14/31 that -4- institution at Shanghai, Hongkong and Tientsin, China, which were author- ized by the Board on July 30, 1931, were opened for business on October 1, and enclosing certificates of the payment on September 30, of an installment of an additional 50,"; of the subscribed capital of the bank and of the amendment of its articles of association to provide for an increase in the number of directors from eleven to fifteen. In his memorandum Counsel stated that the "tions taken by The Chase Bank are proper under the law and are reported for the i nformaticni of the Board, and he submitted draft of a letter to the att °rneYo of The Chase Bank requesting that, when the new directors provided r°r by the amended articles of association have been elected, the Board be furnished with a list of the directors of the corporation, together with the e"tificate required by Section 25(a) of the Federal Reserve Act that each 18 a citizen of the United States. Upon motion, the proposed letter was approved. Draft of a reply to a letter dated October 10 from the Chairman of -taderal Reserve Bank of Chicago, transmitting an inquiry received from the -Q'laent of the I:.onticello State Bank of Lonticello, Iowa, as to whether an Etl'i'llngement by the bank with a druggist in Oxford, Iowa, where because of the l'ecent closingol - the only state bank in the community there are no banking raeilitiss available, to cash small checks and do any other business likely Ii t0 elP the people in the community, would be contrary to the Board's ruling °r APril 26, 1931, that a state bank while a member of the System may not eatablish a branch office beyond the limits of the city, town or village in 17111ch it is situated, in the manner permitted by a recent amendment to the 1"8 Of the State of Iowa; the proposed reply advising that the Board's ruling ig ba,sed on the provisions of Section 9 of the Federal Reserve Act and the 3.0A4/3 —5- " 11 la, therefore, unable to rule that a state member bank may enter into 411 arrangement such as that outlined without relinquishing its manbership In the Federal Reserve System. Upon motion, the proposed letter was approved. Reference was then made to the action taken by the Board on October 9 111 authorizing the Executive Committee to approve, for and on behalf of the Bo an increase not in excess of 1% in the discount rate of any Federal Reserve bank, other than New York. After discussion, upon motion, it was voted to amend the authority granted the Executive Committee on October 9, and to authorize it, for a period of one week from this date, to approve, for and on behalf of the Board, an increase not in excess of I% in the discount rate of any Federal Reserve bank, including New York. 1111PORTS OF STANDING COMMITTEES: lInted, October 14 Recommending changes in stock at Federal Reserve banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. The meeting adjourned at 12:45 p. m. Secretary. 4Proved, U-(4 299 AUXILIARY MINUTES (October 14, 1931.) II RePorts of Standing Committee dated October 14th, recommending changes 44A0, stock at Federal Reserve Banks, approved as follows: A lication for ADDITIONAL Stock: Shares No. 12. P4rrila 1147-1.6-7 n------ai Bank, Parma, Idaho. A lication for SURRENDER of Stook: No. 8. Old First Nel:-i-Tonal Bank, Mount Vernon, Ind. (V.L.Abs. by Peoples Bank & Trust Co.) 75 kr) 3 75 Crl-/ Sec tary.
@FedFRASER