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aft A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Monday, October 19, 1931, at 12:00 o'clock noon. PRESENT: .A.LSO PRESENT: Mr. Mr. Mr. Mr. Mr. Magee, Presiding. Miller Tames Morrill, Secretary. McClelland, Assistant Secretary. Mr. Harrison, Assistant to the Governor. The following matters were presented for the consideration and action Of the Committee: Letter dated October 15 from the Secretary of the Federal Reserve Bank Of New York, advising formally of the action taken by the directors of the on that date in voting to establish a rediscount rate of 3 1/2% on all elasees of paper of all maturities, which the Federal Reserve Board, on (let°1/er 15, upon receipt of advice over the telephone of the action of the New York directors, approved, effective October 16; the letter also advising that in accordance with the usual custom the rates on trade bills and Government 8"uritiee under repurchase agreements were raised to the discount rate, but hat no change was made in the bank's effective schedule of buying rates on h4rIkeret acceptances. Upon motion, the latter actions of the New York directors were noted with approval. Telegrams dated October 16 from the Chairmen of the Federal Reserve Iktia Of Boston and Chicago, advising of the establishment at each bank of l'ediecount rate of.3 1/24 on all classes of paper of all maturities, etteeti-ve the first business day following that on which approved by the Z`ede„, Reserve Board; the Executive Committee of the Board, in accordance With An+4 ---Lon taken at the meeting on October 14, having approved the rates i'llt°11411Y on October 16, effective October 17, 1931. 4-,(V) 10/19/31 -2Upon motion, the informal actions of the Executive Committee were ratified. Letter dated October 17 from the Chairman of the Federal Reserve Bank ct Boston, advising that the action of the Executive Committee of the bank in est ablishing a rediscount rate of 3 1/2% was taken because the close proximity of the Boston District to the New York bank made it desirable that the Boston rate be in line with the increased rates naw in effect at the New York bank. Noted. Telegrams dated October 15 from the Chairmen of the Federal Reserve Banks of Kansas City and San Francisco, advising that the Boards of Directors, lit meetings on that date, made no changes in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Letters dated October 13 from the Secretary of the Federal Reserve NI* of Banks Kansas City, October 14 from the Secretaries of the Federal Reserve of Cleveland and Atlanta, and October 15 from the Chairman of the Fed- eral Reserve Bank of Dallas, advising of the establishment on October 13 at Cia7eIand and Kansas City and October 14 at Atlanta and Dallas, of the Schedule of buying rates on bankers' acceptances made effective at the l'aderal Reserve Bank of New York on October 13, the Federal Reserve Banks Of At1Pnta and Dallas having also established a rate of 2 1/4% for purchases t banker_, u acceptances under agreement to resell. Without objection, noted with approval. Telegram dated October 14 from the Chairman of the Federal Reserve tatk ur San Francisco, advising that his telegram of October 13, reporting a rats p °A. 3 1/2% for the purchase of bankers' acceptances maturing within 10/19/31 13 —3— 91 to 180 days, should have shown a rate of 2 1/2% on acceptances maturing within 91 to 120 days and a rate of 3% on acceptances maturing within 121 to 180 days. Upon motion, the action taken by the Board on October 14 in noting with approval the schedule of effective buying rates reported in Mr. Newton's telegram of October 13 was rescinded, and, there being no objection, the establishment on that date at the San Francisco bank of the following schedule of buying rates on bankers' acceptances was noted with approval. 1 to 75 days 76 to 90 days 91 to 120 days 121 to 180 days Repurchase 2 2 2 3 2 1/8% 1/4% 1/2% % 1/4% Telegram dated October 16 from Deputy Governor Kenzel of the Federal Rese —me 1-v Bank of New York, advising that, following a further substantial illcl'ease in dealers' rates, the New York bank, desiring to give assistance toward at least temporary stability and to improve the distribution of bills, 414(16 the following schedule of buying rates on acceptances effective on that date: Bankers' acceptances: 1 to 90 days 91 to 120 days 121 to 180 days Repurchase Trade bills 3 3 3 3 3 1/8% 1/4% 1/2% 1/4% 1/2% Without objection, noted with approval. Telegrams dated October 16 from the Governor of the Federal Reserve 441, Of Boston and the Chairmen of the Federal Reserve Banks of Richmond and Chic CO, and letters dated October 17 from the Secretaries of the Federal Rese Ilre Banks of Cleveland and Kansas City, advising of the establishment, 04 0 etober 16 at Boston, Chicago, Cleveland and Kansas City, and on October 04 10/19/31 -.4- 17 at the Federal Reserve Bank of Richmond, of the schedule of buying rates on bankers acceptances made effective at the Federal Reserve Bank of New Y°11k On October 16, 1931, the Governor of the Federal Reserve Bank of Boston a180 reporting a rate of 3 1/2,07 for purchases of bankers' acceptances and e"rnment securities under agreement to resell. Without objection, noted with approval. Report of Committee on Salaries and Expenditures on list submitted by the Federal Reserve Bank of Cleveland, showing the name of one employee of the Pittsburgh Branch for whom the directors authorized leave of absence with ic) Y, on account of illness, during the month of September, the total of whose "38floes since January 1, 1931, exceedsthirty days; the Board's Committee reecImmending approval of the salary payment involved. Approved. Renewal bond in the amount of 00,000, executed under date of Oct Ober 9, 1931, by Mr. Charles F. Gettemy, Assistant Federal Reserve Agent at 8°Elton. Approved. Telegraphic reply, informally ap2roved by the Executive Committee on Oct Ober 16, to telegram dated October 15 from the Governor of the Federal Reser* "Bank of Dallas, requesting approval of the appointment of Mr. T. E. Peaqp_ '"41 at a salary of 0,000 per annum, as Manager of the Insolvent Banks 1DePar tment; the Board's reply advising that it approves the restoration of the P"ition of Manager of the Insolvent Banks Department to the personnel elEt8eir1cation plan of the Dallas bunk, as an appraised position, and the Pled appointment thereto at the salary named. Upon motion, the informal action of the Committee was ratified. 10/19/31 iI -5- Memorandum from Counsel dated October 9, with regard to letter dated (Detober 1 from the Federal Reserve Agent at the Federal Reserve Bank of San 4ancisco, enclosing certified copies of agreements entered into by the Agent alld the Governor of the bank, covering the custody of unissued Federal Reserve ric)tee at the Salt Lake City and Portland branches. In his memorandum Counsel tated that the agreements submitted are in the same form as the agreement l'eeently approved by the Board covering the custody of unissued notes at the 148 Angeles Branch, and he submitted draft of letter to the Federal Reserve 4gelit at San Francisco stating that the Board has no objection to the establishniellt of the custody arrangements at the Salt Lake City and Portland Branches with the un derstanding that they may be modified or discontinued by the Board if at atY time it should see fit. Upon motion, the letter submitted by Counsel was approved. Draft of reply to letter dated October 10 from the Assistant Secretary °t the Provident Savings Bank and Trust Company, Cincinnati, Ohio, inquiring hether anything has occurred to change the ruling made by the Board in 1927 th "the Provident Savings Bank and Trust Company might not establish a branch in the town of Norwood, which is outside the corporate limits of Cincinnati, //Ill entirely surrounded by that city; the proposed reply advising that there 4 '8 been no change in the law on this subject since the matter was considered b/r the Board in 1927, end that a State member bank may not establish a branch €tt a Place not within the corporate limits of the city in which the parent bellk ie situated, even though the branch be in territory adjacent or contiguous to the corporate limits of such city. Upon motion, the proposed letter was approved. Letter dated October 16 from the Chairman of the Federal Reserve Bank 10/19/31 -6- Of Chicago, submitting, with his favorable recommendation, the application of the Iowa -Des Moines National Bank and Trust Company, Des Moines, Iowa, for Permission to rediscount notes acquired from nonmember banks. Under the authority given to the Executive Committee at the meeting of the Board on October 13, 1931, it was, upon motion, voted to authorize the Federal Reserve Bank of Chicago, in its discretion, for a period of six months from this date, to rediscount for the Iowa-Des Moines National Bank and Trust Company, good and otherwise eligible paper acquired from or bearing the signature or endorsement of nonmember banks. Letter to Mr. Vernon F. Taylor, Indiana, Pennsylvania, with regard to his eAPlication for permission to serve at the same time as director of the irst National Bank of Pittsburgh, Pennsylvania, the First National Bank of SYkeeville, Pennsylvania, and the First National Bank of Indiana, Pennsylvania; slid advising that the Board approves the application for permission to serve the first two banks named but has refused it insofar as it involves the First National Bank of Indiana, and thEt, u7on receipt of advice that Mr. 2sY1or has severed his connection with the latter bank, a formal certificate wil] be issued covering his services to the First National Bank of Sykesville the First National Bank of Pittsburgh. Upon motion, the letter was approved. Telegram dated October 19 from the Governor of the Federal Reserve Bank Dallas, setting forth the views of his directors with regard to circular12111g the member banks in the Eleventh Federal Reserve District concerning the m . "a-clonal Credit Corporation, as suggested by the Governor of the Federal Res.— 'I've Bank of New York; Governor McKinney stating that if the Board does II" agree with these views, the Committee will waive its objections and will ks immediate distribution of circulars and subscription blanks. 10/19/31 -7.After discussion, upon motion, Assistant Secretary McClelland was authorized to communicate rith Governor McKinney, advising him of the nature of the circulars issued by other Federal Reserve banks, and stating that the Board sees no objection to the Federal Reserve Bank of Dallas issuing to its member banks a carefully prepared circular on the matter along similar lines. Telegram dated October 19 from the Chairman of the Federal Reserve 1)Ellak Of Richmond, advising of the establishment of a rediscount rate of 4% Ohl all classes of paper of all maturities, effective the first business day following that on which approved by the Federal Reserve Board. In accordance with the action taken at the meeting of the Board on October 14, it was voted to approve for the Federal Reserve Bank of Richmond a rediscount rate of 4%, on all classes of paper of all maturities, effective October 20, 1931. OF STALDING COMM1TTEhS: riated, October 15 16 19 tated, October 14 1)4ted October 16 Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending approval of the application of Mr. Lemuel W. Young, Tr., for permission to serve at the same time as director of the First National Bank at Pittsburgh, Penna., and as director of the Peoples-Pittsburgh Trust Company, Pittsburgh, Penna. Approved. Recommending approval of the application of Mr. P. W. Morgan, for permission to serve at the same time as director of the First National Bank at Pittsburgh, Penna., as director of the First National Bank of Wilmerding, Penna., and as director of the East Pittsburgh Savings and Trust Company of East Pittsburgh, Penna. Approved. The meeting adjourned at 12:45 p. m. Secret ry. 41 0ved: http://fraser.stlouisfed.org/Chal Federal Reserve Bank of St. Louis Executive Committee. (Executive Committee) AUXILIARY MINUTES (October 19, 1931.) RA chant,. -Ports of Standing Committee dated October 15, 16 and 19, recommending 5 .as in stock at Federal Reserve Banks, approved as follows: A l ications for SURRENDER of Stock: istrict No. 2. (3ontinental Bank & Trust Co., New York, N. Y. (Decrease in capital and surplus) p g.1 .19.L__No. 4. 9-rst National Bank at Smithfield, Ohio. (Insolvent) L;itizens National Bank, Winchester, Ky. (V.L.Abs. by Be Clark County National Bank of Winchester) ()f Pittsburgh National Association, Pittsburgh, Pa. ( ' 1 st Insolvent) National Bank, Chardon, Ohio. (V.L.Suc. by r, Central National Bank of Chardon) OrrInerce Guardian Trust & Savings Bank, Toledo, Ohio. (Insolvent) I)istrict No. 5. ?I-rat National Bank, Elloree, 3. C. (V.L.Abs. by South Carolina State Bank, Charleston, S. C.) bistrict No. Pa1111 7. 01Ze National Bank, New Bedford, Ill. (Insolvent) lrst National Bank in Bluffton, Ind. (Cons. of Ro Old National Bank and First National Bank of Bluffton) 1147s Park National Bank, Chicago, Ill. (Insolvent) pi -L County National Bank, Joliet, Ill. (Insolvent) National Bank, Newton, Iowa. (Insolvent) 'ate Savings Bank, Fenton, Mich. (Insolvent) kstrict No. , v. National Bank in Alexandria, S. Dak. (Insolvent) llt!fict No. 11. pes' National Bank Lockney, Tex. (Decrease in surplus) arsell National Bank, Pearsall, Tex. (V.L.Suc. by Pearsall National Bank in Pearsall) Listrict mo. 12. I'lret National Bank, Bancroft, Idaho. (Insolvent) Shares 3,600 3,600 38 90 3,600 75 1,560 3,363 45 45 18 90 90 180 90 60 528 36 36 15 60 75 Secretary. Approved:
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