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)1
A meeting
of the Federal Aeserve Board was held in the office of the
PedLe
"
11 -ieserve 3oard on dednesda;,,, October 22, 1930, at 11:00 a. in.
PRESENT:
,
Governor :eyer
Yr. Hamlin
Mr. .Miller
Mr. James
Mr. Cunningham
Li'. McClelland, Asst. Secretary.
The minutes of the meeting of the Federal Aeserve Board held on October
17t11
were read and approved.
the minutes of the meeting of the Federal Aeserve Board held on October 20th
read and approved as amended.
The Governor than referred to letters from the Governor of the Federal Ae-
4r" 3 'Of ',Aw York dated October 14th and 17th, and the discussion at the
I/
Illeetillg on October 20th, with regard to the transaction in sterling authorized
bY the
directors of the Federal _{eserve Bank of :Tow Yofk.
At the conclusion of the discussion Which
ensued, a letter to the Governor of the :, ew
York bank was approved and ordered transmitted
in the following form:
"Referring to your letters of October 14th
and 17th, so far as the purchase of foreign
bills helps the export of American products
at this time, the Board is in sympathy with
the program, as outlined.
"So far as the operation affects the open
market policy, the Board assumes that the
special operations in foreign exchanize will be
considered as part of the open market program,
subject, of course, to the policy agreed upon
by the Open :larket Committee and approved by
the Board."
The
'Llovernor also presented a letter dated October 21st from the Federal
erve
,Icent atriew York, making certain suggestions with reard to the Board's
411DO14
tmeat of a director at the Buffalo Branch for a term of three years
r
10/22/30
-2-
begianing January 1, 1931.
Referred to Committee on
District No. 2.
The Assistant Secretary reported that under authority granted by the
BOarli 4u
9
une Governor an October 17th, having received a favorable recommendation
tl7c the Executive Committee of the Federal Reserve Bank of Chicago, approved
c'PPlicatiaa for permission to exercise general fiduciary powers filed on
116/144 of the First National Bank and Trust Company of Bloomington, Bloomington,
1144°14 (organizing), effective if and, when the Comptroller of the Currency
a certificate of authority to commence business.
Upon motion, the action of the
Governor was ratified.
Pelegram dated October 17th from the Chairman of the Federal Reserve
klat
of Dallas, advising that the board of directors, at its meeting on that
4te.
no change in the bank's existing schedule of rates of discount and
1314thase.
dithout objection, noted with approval.
kie Ports of Executive Committee on letters dated October 15th and 17th from
the ,
'
40 ptro11er of the Currency requesting approval of increases in the salaries
of
I'lat lonal
•
Bank Examiners as follows:
J. L. Logan, from 44,500 to 45,500
F. R. Peterson, from „i4,500 to 45,400
D. V. Penn, from 43,600 to 44,500
Upon the recommendation of the Executive
Committee, the salary increases were approved.
aeziewai
bond in the amount of 450,000, executed under date of October 18th,
1:7 ,zzli
*Vim. H. dhite, Assistant Federal Reserve Agent at the Federal Reserve
41t
c't Chicago.
Approved.
1(1
/
42/30
-3-
Letter dated October 20th from the Governor of the Federal deserve Bank
or
Xew
York, submitting revised reports of the amount of short-term funds
41(1 in New York for foreign account as of August 30th and September 30th;
the l'evision being due to an error made by a member bank
in its reports to
the
Federal deserve Bank.
Ordered circulated.
Memorandum from Counsel dated October 17th, with
regard to advice received
tr1511411arreY, Aldrich and Uebb, attorneys for The Chase Bank, of an amendment
•
to 4.1,
""e articles of
association of the corporation providing for an increase
*14410 to 11 in the membership of its board of directors; Counsel expressing
tho
°Pinion that the articles have been properly amended and no action by the
Boerd is
required.
Noted.
Drafts
of letters to the Attorney General of the United States and to the
?oder,
cl4
4-41
Reserve Agent at Philadelphia, with regard to a report made by the
Aeserve agent covering possible violations of the provisions of Section
52°9 Of the Aevised statutes by Thomas L. Greely and Charles
Mahan, Jr.,
0°Illiect ion with a shortage of 49,180.22 in the City Division of the Non4811 e°11ect ion Department of the bank.
Noted.
Letter dated October 20th from the Assistant Secretary of state, requesting
on behalf of a Committee appointed by the
President, as to participation
IV the
Board in an exhibit to be made by the Government at the Chicago Uorld's
Pttir of 1933.
Upon motion, the matter was referred
to the Assistant Secretary for report.
(,)
10/22/30
-4Letter dated October 16th from the Secretary of the Federal Advisory
Counctil, requesting to be advised of topics which the Board would like to have
discussed at the next meeting of the Council, which is scheduled to be held
Lovember 18th.
It this connection LIr. Lliller stated that he understands the visit to
tIlia country contemplated
by Dr. Luther, President of the Reichsbank, has been
elkeelled and that, therefore, the idea of postponing the meeting of the Federal
4444°17 Council from November 18th to November 25th has been abandoned.
Upon motion, the matter of topics for
the next meeting of the Council was referred
to the Executive Committee.
Draft of
letter to the Federal Reserve Agent at St. Louis with reference to
11141crin__
"
v
11
correspondence regarding the indebtedness of Humphrey Robinson and
\\, Cip
"
IlY, private examiners, and members of that firm, to the Louisville Trust
ekth
r449 recently examined by them; the proposed reply advising that the Board
hat
ached the conclusion that the facts do not warrant reporting the case
to the
Attorney General as a possible violation of the provisions of Section
22 (a) Of the
Federal Reserve Act, and further that the Board notes that the
Peaer
41 Reserve agent deems it advisable for the Federal Reserve bank to make
ha owla
independent examinations of the Louisville Trust Company and other
8tEkte
14s tituti0n9 in Louisville similarly located.
Upon motion, the proposed letter was
approved and ordered transmitted.
IfI
he
Draft of letter to the Federal Reserve Agent at New York with regard to
4
Mication before the Board for the organization, under the provisions of
aectiola
(a) of the Federal Reserve Act, of the zomerican Banking and In'4
L;orporation for the Near East, on which the Federal Reserve agent submitted
141orable
recommendation; the proposed letter requesting that he more
10/22/30
—5_
clearlY and definitely state to the Board the reasons for his recommendation and
the —
u4act grounds on which he thinks the application should be disapproved.
Upon motion, the proposed letter, as
amended, was approved and ordered transmitted.
Q?-gATS 0F „,
01,1 NDING GOLIIITTEES:
ated.,
h
October 20th
ecommending ohanc2:es in stock at Federal Reserve Banks,
21st
as set forth in the Auxiliary Anute Book of this date.
Recommendations approved.
1)4eas October 18th
Recommending action on an application for fiduciary powers
•
as set forth in the uxiliary :Anute Book of this date.
Recommendation approved.
. tecis
4
October 21st
Recommending approval of the application of —r. A. A.
Vose, for permission to serve at the same time as director
of the First I:ational Bank and Trust Company, Oklahoma
City, Oklahoma, as director of the First :ational Bank
of Luther, Oklahama,and as officer and Director of the
First IIational Bank, Lone .olf, Okla.
Approved.
4teat
October 21st
tecommending approval of the application of Ll.r. John
3charoauer, for permission to serve at the same time as
director of the First "lational Bank, 1,:idland, Texas,
and as director of the First Ivational Bank, Fort jorth,
Texas.
Approved.
The meeting adjourned at 12:45 p. m.
Assistant 3ecretary
41)Pr(1
@FedFRASER