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meeting of the Federal Reserve Board was held in the office of the Neral deserve Board on Monday, October 20, 1930, at 11:30 a. in. PRESENT: PRESENT ALSO: Governor Meyer Yr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. McClelland, Asst. Secretary. Governor Harrison of the Federal Reserve Bank of New York. The Governor stated that in accordance with a suggestion made during an 111/0, ' 1411 discussion at the meeting on October 17th, he had requested Governor ' On to come to dashington for the purpose of discussing with the members c/Irthe Board the transaction in sterling authorized by the directors of the lielt York bank. Governor Harrison explained in detail the mechanics of the operation, 14414g incidentally that to date f22,200,000 sterling has been purchased, or 111,200,000 has been invested in bills. bill He stated that the rate on is around 2 1/16/0 while the balances on deposit with the Bank of England clINW about 1 11/16. 11(1 significance of the transaction in the domestic and London money 11114""t8 Was discussed, as was its effect on the exchange position. Inquiry was 14148 48 to the nature and purpose of the balances on open account, and the tiltl(111881.011 developed that such balances are maintained purely for the purpose (11'%‘litions in the purchase and sale of sterling bills and not for the t)1 11°413411°clation of the Bank of England. a 8 It was also brought out that the trans- seasonal one, the expectation being that the sterling account will liclialaated around the first of :larch when the peak period of payments for kneri-ear/ exports is past. The meeting adjourned at 12:50 p. m. "eeelj tVie, / 1 (P. ,-1(7 Assistant Secretary 4proved:
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