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A meeting of the Executive Committee of the Federal Reserve Board was ii held in the office of the Federal Reserve Board on Friday, October 2, 1931, at 12:00 o'clock noon. PRESENT: ALSO PRESENT: Governor Meyer Mr. Mier Mr. James Mr. flagee Mr. fleClelland, Assistant Secretary. Mr. Harrison, Assistant to the Governor. The Governor submitted a cablegram dated October 1st from the Banco Central de Bolivia requesting that a representative of the Federal Reserve aYstem attend a conference of representatives of the central banks of Bolivia, C°10mbia, Equador, Chile and Peru, which has been called for the near future, the cablegram stating that the attendance of such a representative will be a 1)l ' actieal demonstration of bank cooperation as well as mutually helpful, and that it has been suggested by one central bank that if some representative tl'om the United States cannot attend it would be better to call off the 0011 ference. The Governor stated he has discussed the natter referred to with vernor Harrison of the Federal Reserve Bank of New York who stated that the New York bank is inclined to request Prof. E. W. Kemmerer to represent the Pederal Reserve bank at the conference. After a brief discussion, action on the matter was deferred. The Governor then reported that the Central Bank of Colombia, which thua far has been successful in its efforts to maintain the gold standard, in 411ticiPation of the marketing in about 90 days of the Colombian coffee crop, 1141oh will involve between $15,000,000 and $18,000,000 of exchange, has now Eti3P11°ached the Federal Reserve Bank of New York for assistance in the form of eredit of 310,000,000. The Governor stated that the matter is still in the 10/2/31 -2- Preliminary stages and that no decision has been reached. The Governor then presented a letter dated October 1st from Deouty Governor Crane of the Federal Reserve Bank of New York stating that on September 25th, advice was received from the Banco Central de Reserva del Peru that it had instructed two New York City banks to deliver a total of 9-L,500,000 to'the Federal Reserve Bank of New York to be placed to the credit Of the central bank in an account which it requested be opened on the books of the New York bank; that these funds were received on September 26th following which, at the request of the central bank, they were converted into eold and earmarked. The letter further stated that the request of the Banco Central de Reserva del Peru was presented at the meeting of the Board Of Directors on October 1st and the officers of the New York bank were 44thorized, subject to the approval of the Federal Reserve Board, to open 411 account for the Banco Central de Reserva del Peru, to arrange for the establishment of relations with that bAnk along the general lines of arrangeWith other foreign central banks, and to appoint the bank agent and correspondent of the New York bank in the City of Lim, Peru, where its headquarters are situated. A brief discussion followed during which it was tile consensus of opinion that the same general considerations are involved in this case as in the recent reauest of the Bank von Danzig for an account 4it the New York bank, and that there is little likelihood that the New York /111k will, under present conditions, require the services of an agent and correspondent in Peru. At the conclusion of the discussion it was voted to approve of the Federal Reserve Bank of New York openin3 and maintaining a one-way account on its books for 10/2/3l -3- the Banco Central de Reserva del Peru for the,. purpose of carrying out operations in this market for the Banco Central de Reserva del Peru along the same general lines and subject to the same terms and conditions as they are handled for other foreign central banks having accounts with the Federal Reserve Bank of liew York. The Assistant Secretary stated that rather heavy demands are being 11lade on the Federal Reserve Bank of New York by member banks for gold certificates, and that at the request of the bank the Treasury Department has bean asked and has agreed to increase the Treasurer's stocks of certifi- ites in certain denominations. The Assistant Secretary then presented various natters of business Wllich were considered and acted uPon by the Committee as follows: Letter dated October 1st from the Secretary of the Federal Reserve Of New York and telegram dated October 1st from the Chairman of the Pederal Reserve Bank of San Francisco, both advising that at neetings of their Boards of Directors on that date, no changes were made in the bank's e isting schedules of rates of discount and purchase. Without objection, noted with approval. Draft of letter to the Governors and Federal Reserve Agents of all eciera1 Reserve banks advising of the appointment of Er. Chester L'Orrill as Secretary of the Federal Reserve Board. Upon notion, the proposed letter was approved. Report of Committee on Salaries and Expenditures on list submitted bY the Federal Reserve Bank of Chicago of employees far whom the directors eq1Proved leaves of absence with pay, on account of illness, during the :Pell-0d from August 28th to September 24th where the total of such absences 10/2/31 ainCe -4- January 1, 1931 has exceeded thirty days; the Board's Committee recommendinz approval. Approved. Letter dated September 29th from the Chairman of the Federal Reserve Beak of Dallas transmitting copy of the minutes of the special meeting of the 8°ard of Directors of the Dallas bank held on September 26th in connection with the resignation of Mr. Lynn P. Talley as Governor of the bank, effective on that date, and the election of his successor. Ordered circulated. Letter dated September 28th from the Federal Reserve Agent at the Federal Reserve Bank of San Francisco, advising that on September 23rd, because of conditions existing in the district, $10,000,000 of unissued Pede--, Reserve notes were placed in the vaults of the Salt Lake City Branch the custody of the Federal Reserve Agent and an officer of the San Francisco bank without a resolution of the Board of Directors of the bank authorizing such action, that it is not practicable to carry large supplies °I' issued notes at the branches and in all probability a similar custody will be set up at the Portland Branch; and that the necessary resolutions authorizing the custodies would be presented and adopted by the directors of the 1/614.1t at their meeting on October 1st. Noted. The Governor then stated that he communicated with Mr. Robert /44(1,4 u.ox, Chairman of the Resolutions Committee of the American Bankers '&880oiation Convention, and, although discussing the general situation briefadvised that the Board had no definite suggestions to make with regard to Possible resolutions which might be Presented at the convention meetings. 1D/2/01 Ii -5The Governor also reported that he attempted yesterday to communicate With the Governor of the Federal Reserve Bank of Atlanta by telephone with reTard to the Board's position as expressed at the meeting on September 30th In connection with eligibility for rediscount of acceptances drawn by 4nderson, Clayton and Company and secured by warehouse receipts issued by a subsidiary of that company. The Governor stated that Governor Black is out or the city at the present time but that he will take the matter up with him uPon his return. The Assistant Secretary then presented a tele-ram just received from the Chairman of the Federal Reserve Bank of Dallas, advising that as of October 5th, Er. B. A. McKinney has been appointed Governor of the bank and that, subject to the approval of the Federal Reserve Board, his salary has been fixed at ,I30,000 per annuu. Upon motion, it was voted to approve the salary fixed by the directors of the Dallas bank for Governor EcKinney. The meeting adjourned at 12:45 D. m. Assistant Secretary. 4PProved:
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