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_ meetinp: of the Federal Reserve Board was held in the office of the ' e°143111.1 Reserve Board on dednesday, October 15, 1930, at 11:00 a. m. PRES=: Governor Le yer Yr. Hamlin Eiller Er. James Mr. Cunningham Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board, held on October Lk Were read and approved as amended. IlePorts of Committee on Salaries and Expenditures on lists submitted by the 1-"eaeral lieserve Banks of New York and Cleveland of employees for whom the 4irectors of those banks authorized leaves of absence with pay, on account of 11111 . ' ss, during the month of September where the total of such absences since 4rftlary 1, 1930, has exceeded thirty days; the Board's Committee recommending 11 4k401ral of the salary payments involved. Approved. le13°Ist of Executive Committee on letter dated October 10th from the eral , eserve Agent at Chicago, submitting, with the favorable recommendsor the Executive Committee of that bank, a request of the Standard 1\18:t1°48.1 Bank, Chicago, Illinois, an outlying institution, for a reduction 14 it8 r(J2erve requirements under dection 19 of the Federal Reserve act rl'°111 12,:). to 10c- of demand deposits; the Board's Zxecutive Committee also 1 approval. 7non notion, the application was approved, present voting in the affirmative. Members all 011 The, ssistant Secretary then submitted, with the approval of the Governor, , ' 411 the matter was referred at the meeting on October 1st, a memorandum hteci Ctober 7th from the Chief of the Division of Bank Operations with rean agreement entered into between the Federal Reserve Agent at 1W15/30 -2- Atlealta and the Governor of that bank regarding the custody at the New Orleans Brarinl, of unissued 2ederal Aeserve notes and p;old coin and/or certificates held 48 collateral arminst federal reserve notes; the memorandum stating that the Plat aS regards ederal Heserve notes corresponds with that approved by the 8081,d for the Pittsburgh, Cincinnati and Jacksonville branches, and as the ew Orle.8rLnch is an important one and a considerable distance from the head it would seem hihly desirable to have u supply of unissued notes kept at th4 _ branch, and further that the keeping of a portion of the gold collateral held by the 2ederal 1.ieserve agent against outstanding notes under triple controi in the vaults of the 1ew Orleans 13ranch might at times be of material 8411antai'e to the branch and the community it serves, and, as Counsel for the ii()4 I'd has stated that there is no legal objection to such a plan, it would aeela ere is ample justification for its authorization by the Board. After discussion, upon motion, it was voted to approve the custody at the lew Orleans -3ranch of a stock of unissued 2ederal eserve notes up to 410,000,000 and gold and/or gold certificates up to 42,000,000, under the agreement submitted by the lederal deserve Agent at ,.tlanta. 1:enaorandum dated October 14th from the Board's -.xaminer in Charge with l'ard to the analysis of report of a recent examination of the Anson Ttate 1341,, 1 'Anson, ',:exas, which discloses a very unsatisfactory condition, and in t. le1it ting which, in reply to the question whether the examination reveals °I/clition that would warrant the 'ederal Heserve Board taking action to ; on/inue the membership of the bank, the ederal €s rye :ent at Dallas, Whoe e conclusion is concurred in by the Governor, states that based on the condition of the bank, the answer would have to be in the affirmative, bit that the doard might wish to take into consideration several other factors fled; the Board's Examiner suggesting, in view of the circumstances that / 10/3.5/30 -3- hcl "tion be taken by the Board at this time, but that the Federal lIeserve 48ett be requested to keep the Board advised as to developments and have an 131411er Participate in the next examination of the bank. Upon motion, the suggestion of the Board's Examiner was approved and a letter to the Federal Reserve Agent at Dallas, advising accordingly, was ordered transmitted. The Governor then presented a letter dated October 14th from the Governor c't the Federal lieserve Bank of liew York advising of considerations which led the directors of that bank at their meeting last Thursday to authorize the "of up to 1,5,000,000 sterling, as and when appropriate opportunity 1511rcha 4111cled, the funds so obtained to be received by the Bank of England on deDostt at interest with the understanding that sterling bills will be acquired lb(11% the account of the Lew York bank if and when the London bill market will cl(rITIit of such buying; the letter stating that TJ200,000 was purchased on 4414Y, October 10th, which has already been invested in bills; that a further -5°31000 was bought on October 14th and that further additional purchases will Drobably be made daring the next few days, with the bank watching developments 44 it Proceeds. III his letter, the Governor of the New York bank also stated that it is the 4 j'iltentiOn to offer participations in these sterling purchases, whether A veu, at interest or in sterling bills, to the other Federal Reserve banks. el411017 Mr. Miller suggested that the question of the expediency of the policy involved in the action of the New York directors and the extent to which purchases of sterling should be authorized, be discussed at a meeting of the Board to be held tomorrow. He also called attention to consideration given by the Board in 1927 as to the authority and responsibility of the Board in connection with the purchase and sale of bills of exchange and acceptances abroad. 10/15/30 -4- :TriT : 4 ES: Dated, October 13th lbth Li4tecil October 10th 11th Recommending changes in stock at :ederal Aieserve banks, as set forth in the Auxiliary , mute book of this date. riecommendations approved. Recommending action on apzdications for :'iduciary powers as set forth in the Auxiliary _inute 13ook of this date. Aecommendations approved. The meeting adjourned at 12:30 p. m. ....--", ' ii. i/ ,,/,(. Assistant Secretary
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