The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
214 A meeting of the Executive Committee of the Federal aeserve Board was held In the office of the Federal eserve Board on Wednesday, October 24, 1926 at 11:30 a,m. PiESENT: Governor Young Mr. Platt Mr. Miller Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary The Governor reported a telephone conversation with the 2„cting. Chairman °f the Open Market investment Committee during which he advised that the 0:overny24,000,000" Illent 13011(1 market is improving and gradual sales have been made of ab.out "securities which had been taken over from foreign correspondents with the real-lit that to the by the end of the present week the System account probably will be back figure at which it stood at the end of August. The Acting Chairman also tatea that if an easy money situation continues for any length of time requests Wj1' Probably be received from other foreign corresrondents for the liquidation will of their security holdings but that it is believed the market at this time absorb them. Bank Letter dated October 18th from the Secretary of the Federal Reserve Of Ilew York, of the Federal aestelegram dated October 16th from the Chairman Bank Of Chairman of the Richmond, telegram dated October 17th from the l'eclerel Reserve Bank of St. Louis, telegram dated October 20th from the ChairOf October 18th the Federal 2,oserve Bank of Minneapolis, and telegram dated trora the Chairman of the that Federal Reserve Bank of San Francisco, all advising their boards of iirectors at meetings on the dates stated made. no changes thR 1, -ankst existing schedules of rates of discount and purchase. Without objection, noted with approval. 215 10/24/28 -2- Letter dated October 16th from the 1..ssistant Federal Reserve Agent at Dallas, advising that the board of directors, effective that date, established the following schedule of minimum rates for purchases of acceptances: Bankers: 1 to 90 days 91 to 120 days 121 to 180 days Repurchase Trade Bills 4 4 4 4 3/8 5/8 7/8' 1/4) 5;`,2 Without objection, noted with approval. rIemorandum dated October 22nd from the Chief Examiner, recommending accept exice of the resignation of lIr. F. H. Winkler as Assistant Examiner, effective October 24, 1928 and requesting that permission be granted to fill the leSelleY at a salary of not to exceed 44 000 per annum. Upon motion, the resignation was accepted and the authority requested was granted. Ileport of Committee on Salaries and Expenditures on letter dated October leth l'rora the Chairman of the Federal Reserve Bank of Richmond, transmitting list Of employees for whom the directors of that bank approved leaves of ebse/Ice with of September, where pay, on account of illness, during the month the total of such absences since January 1, 1928 has exceeded thirty days; the 44ra's Committee also recommending approval of the salary payments involved. Approved. Letter dated October 17th from the Chairman of the Federal Reserve 13411k °f St. Louis, advising of the election of Mr. T. D. Scales, President of the First National Bank, Boonville, Ind., as director of the Louisville Branch, 216 10/24/28 -3_ the unexpired term of la*. H. B. Jewett, deceased, endinr;. December 31, 1930. Noted. 2lemorandum dated October 22nd from the A.ssistant Secretary recommending, ill accordance with the suggestion contained in a letter •aated October 17th from the 48s1st3nt Federal Aeserve Agent at Dallas, that the Board rescind action taken it on October 9th in approving an application of the Collin County National Belik of LicKinney, Texas for six additional shares of stock in the Federal Bank of eserve Dallas; the suggestion being made in view of the fact that since submis- 81°4 Of the application for additional stock the member bank has reduced its capital. Upon motion, the Board's action of October 9th was rescinded. laemorandum from Counsel dated October 19th, submitting bill from Honorable Newton n - 4 Baker in the amount of cA0,065.09, addressed to the Federal Reserve , °4 Chicago, covering his fee and expenses in the case of the Neoga National 13arik v. Federal Reserve Bank of Chicago; Counsel recommending that the bill be 143r°ved and transmitted to the Federal Reserve Bank of Chicago,with the sugestion that if it is approved by the directors of that bank payment be made clirect to 1.1r. Baker and that the Board be advised of the fact in order that it ItIct arrange for the other Federal Reserve banks to reimburse Chicago for their ate shares. Upon motion, 1.ir. Baker's statement was approved and a letter to the Federal Reserve Bank of Chicago submitted by Counsel along the lines of his memorandum was ordered transmitted. Letter dated October 16th from the Secretary of the National Foreign Trade Colule ill advsing that the sixteenth National Foreign Trade Convention will take Dlace . requesting,in - in Baltimore on April 17th, 18th and 19th, 1929;. the letter 217 10/24/28 -4- "the Board has not already fixed dates for the Spring Conference of Goves that the date of the National Foreign Trade Convention be kept in mind 04:der that the Governors who may wish to attend the Convention will be free to do so. Noted. Letter dated October 16th from the President of the Foreign Trade Securiadditional period ties C°mPany, Ltd., requesting that the Board extend for an °f thirty days its approval and reservation of the title "Foreign Discount and estment Trust" for the corporation proposed to be organized under Section 25 (a) Of the Federal Reserve Act. Upon motion, the reservation was further extended for a period of thirty days from October 20th. there be Memorandum from Counsel dated October 22nd, recommending that 1°41311shed unless in the forthcoming issue of the Federal Reserve Bulletin, amendthere is some imperative reason why it should not be made public, the to sub-division (d) of Section VI of the Board's Regulation A, adopted ell 41/gust 30th, pertaining to rediscounts for Federal Intermediate Credit BsIlks and modifying certain restrictions thereon. Upon motion, publication of the amendment was approved. llemorandum from Counsel dated October 20th, recommending publication in th- fo the Board's recent rthcoming issue of the Federal Reserve Bulletin of Intermediate regarding eligibility of paper rediscounted for Federal QreA tAit banks as collateral security for Federal Reserve notes and also a state4101It r on October 9th, egarding the recent amendment to Regulation A, adopted ()11 th -8 against warehouse receipts. subject of eligibility of bankers acceptances Approved. 218 11 1V24A8 -5- Letter dated October 23rd from the Deputy Governor of the Federal ResIle Bank of New York, with reference to a recent increase in the Federal Reser7e Bank's account with the Bank of France. Ordered circulated. Letter dated October 23rd from the Deputy Governor of the Federal Reserve Batic Of New York, advising that all participants in the bank of issue credit atrallgeMent with the Bank of Poland, which expired on October 13, 1928, have "Id to the renewal of the arrangement for one year from that date; the Deputy 4eilernor transmitting for the Board's files a copy of the renewal agreement between the Bank of Poland and the Federal Reserve Bank of New York. Ordered circulated. At this point, Mr. R. L. Austin, Federal Reserve Agent at Philadelphia Zessra. Charles S. Calwell and H. A. Loeb, representing the Philadelphia Clea„ representa'1.110€ House Association, entered the room, and the Clearing House tives several outdiscussed with the Board applications which had been filed by reserve requirements g member banks in Philadelphia for a reduction in their by the fl'°111 107 to 7% of demand deposits. They advised of a resolution adopted Clear. change in ing House Committee deeming it unwise and undesirable to make any the the banks filreserve requirements of outlying banks, and pointed out that it thA file similar applica- applications and others which might be expected to tieris are now carrying reserves of only 6.1/0 of aggregate net deposits which, th not be reduced. - Opinion of the Olearing House Committee, should They e4tim„ the average reserves -"ieo. that were the applications approved by the Board They Of thA - outlying banks against aggregate net deposits would be but 4.7. 219 10/24/28 4180 -6- vo4nted out that certain of the applicant banks are not located in what, 14 the opinion of the Clearing House Committee, can properly be classed as °Utlying districts of Philadelphia. At the conclusion of the discussion, the Governor informed the representatives of the Clearing House that their statements will be given due consideration by the Board in acting upon the applications, and further, that before action is taken the applicants themselves will be afforded an apportunity to be heard. He pointed out that from the viewpoint of the Federal Reserve Board the question of approving reserve reductions Is a national rather than a local one and stated the policy Which has heretofore been followed by the Board. 111'°aTS OF 3TANDING Bated, October 19th, 20th, 22nd, Bated, October 23rd, Dated, October 16th, Dated, October 17th, Dated, October 17th, i)ated, October 19th, 0:11L2TEES: Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending approval of the application of Mr. Hup:h H. *Jard for permission to serve at the same time as director of the Marcus Hook National Bank, Marcus Hook, Pa., and as director of the Delaware County Trust Company, Chester, Pa. Recommendation approved. Recommending approval of the application of Mr. Jacob France for permission to serve at the same time as director of the Commercial National Bank and Trust Company, New York, E. Y., as director of the Equitable Trust Company of Baltimore, Md., and as director of the Maryland-Virginia Joint Stock Land Bank, Baltimore, Md. . Recommendation approved. Recommending approval of the application of Mr. George R. Hann for permission to serve at the same time as director of the Commercial rational Bank and Trust Company of New York, N. Y., and as director of the Murray Hill Trust Company, New York, N. Y. Recommendation approved, Recommending approval of the application of 1:r. J. Milton Lutz for permission to serve at the same time as officer and director of the First National Bank of Clifton Heights, Pa., as director of the Lansdowne Bank and Trust Company, Lansdowne, Pa., and as officer and director of the Bankers Trust Company, Philadelphia, Pa. Recommendation approved. 220 10/24/28 -7- itT,pORTS OF STANDING C01:MITTEES: (Cont,d) Dated, October 19th, Recommending approval of the application of 11r. E. E. Dated, October 19th, Dated, Datea, October 19th, October 19th, Datea, October 19th, Dated., October 19th, 13atea, October 19th, Barry for permission to serve at the same time as officer and director of the First National Bank, Clifton Heights, Pa., and as officer and director of the Lansdowne Bank and Trust Company, Lansdowne, Pa. Recommendation approved. Recommending approval of the application of 1:r. John A. 1:cKenna for permission to serve at the same time as director of the First National Bank of Clifton Heights, Pa., and as director of the Lansdowne Bank and Trust Company, Lansdowne, Pa. • Recommendation approved. Recommending approval of the arplication of LI'. Nelson Kershaw for permission to serve at the same time as officer and director of the First National Bank of Clifton Heights, Pa., and as director of the Lansdowne Bank and Trust Company, Lansdowne, Pa. Recommendation approved. Recommending approval of the application of 1Ir. Harry Bloodsworth for permission to serve at the same time as director of the First National Bank of Clifton Heights, Pa., and as director of the Lansdowne Bank and Trust Company, Lansdowne, Pa. Hecommendation approved. Recommending approval of the application of 1:r. Oscar L. Auf der Heide for permission to serve at the same time as director of the First National Bank of Jest New York, N. J., as director of the Hamilton National Bank of Weehawken, N. J., and as director of the Liberty National Bank, Guttenberg, N. J. Recommendation approved. Recommending approval of the application of Lr. Liogers Caldwell for permission to serve at the same time as director of the Commercial National Bank and Trust Company of New York, N. Y., as director of the Fourth and First National Bank, Nashville, Tenn., and as director of the Holston-Union National Bank, Knoxville, Tenn. Recommendation approved. Recommending approval Of the application of 1:r. Wrigley, Jr., for permission to serve at the same time as director of the Commercial National Bank and Trust Company, New York, N. Y., as director of the First National Bsnk, Chicago, Ill., and as director of the Boulevard Eridge 3ank, Chicago, Ill. Recommendation approved. 10/24128 221 -8- RIIPORTS OF STANDING COL-MITTEES: Wont d) Dated, October Mad, Recommending approval of the application of Mr. Robert Allerton for permission to serve at the same time as director of the First National Bank, Monticello, Ill., as director of the Illinois Joint Stock Land Bank, Monticello, Ill., and as director of the First National Bank, Chicago, Ill. Recommendation approved. Dated, approval of the application of Mr. Y. J. Recommending October 20th, Scanlon for permission to serve at the same time as director of the First National Bank, Minneapolis, Minn., as director of the Lumbermens National Bank, Bend, Ore., and as director of the Atlantic National Bank, Jacksonville, Fla. AOC ommendat ion approved. The meeting adjourned at 1:00 Secretary, APProved:
@FedFRASER