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A meting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Saturday, October 24, 1931, at 11:35 a. in. PRESENT: ALSO PRESENT: Governor Meyer Mr. Taller Er. Tames Mr. nagee Er. Pole Ur. Morrill, Secretary Fa.. McClelland, Assistant Secretary. Mr. Harrison, Assistant to the Governor. The following matters were presented for consideration and action by the Board: Telegram dated October 22 from the Chairman of the Federal Reserve of Kansas City, advising of the establishment by the Executive Committee °t the bank of a rediscount rate of 3 1/243 on all classes of paper of all r114tIlrities, effective the first business day following that on which approved bY the Federal Reserve Board; the rate established by the Kansas City bank heAri, a.kg been approved informally by the Federal Reserve Board on October 22, erfeetive October 23. Upon motion, the rate of 3 1/0137 established by the Kansas City bank, effective October 23, was formally approved. Telegram dated October 23 from the Chairman of the Federal Reserve 441 'or Cleveland, advising of the establishment by the Executive Committee °14 the bank of a rediscount rate of 3 1/2% on all classes of paper of all 4111ities, effective the first business day following that on which approved bY the Federal Reserve Board; the Executive Committee of the Board, under the 411thoi+ /, -"Y given at the meeting on October 21, having approved informally on Ntob "23 the rate established by the Cleveland bank, effective October 24, 1931. Upon motion, the action of the Executive Committee was ratified. 10/24/31 -2- Letter dated October 22 from the Secretary of the Federal Reserve Bank of New York and telegram dated October 23 from the Chairman of the Federal Reserve Bank of Chicago, both advising that their Boards of Directors, at meetings on the dates stated, made no changes in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Memorandum dated October 22 from the Chief of the Division of Bank °Perations, submitting statement showing the expenditures of Federal Reserve banks for educational and welfare work, etc., during the month of September end for the nine months' period ending September 30. Ordered circulated. Telegram dated October 14 from the Federal Reserve Agent at nneaPolis requesting that, in accordance with it letter of October 7, the l'edel'al Reserve Board designate Y.r. J. E. O'Connell, director of the Helena bi*aileh, as Acting Assistant Federal Reserve Agent at the branch, and ilessrs. ' A T. Hibbard, Vice President of the Union National Bank and Trust Company, "d Fred Heinicke, Vice President of the First National Bank and Trust CamParlY, as Alternate Assistant Federal Reserve Agents at the branch; the XecUtive Committee of the Federal Reserve Board having informally approved the de signations on October 15. Upon motion, the informal action of the Executive Committee was ratified. Bond in the amount of '50,000, executed under date of October 17, 1'931 ' by LI'. J. E. O'Connell, as Acting Assistant Federal Reserve Agent at the lielena branch of the Federal Reserve Bank of !Anneapolis. The bond, having been approved informally by the Executive Committee on October 23, was formally approved. 10/24/31 -3- Drafts of replies to letters dated October 19 and 21 from the 4evernors of the Federal Reserve Banks of ilinneapolis and Kansas City, respectively, inquiring whether the Board would authorize subscriptions by the banks to the local Community Chests, the proposed replies advising that the Board sympathizes with the purposes of such contributions, and is Pleased to note that the officers and employees of the banks have subscribed 100% of their allotments, it still feels that it cannot authorize expendiIlilles of Federal Reserve bank funds by way of donations to further purposes, 4° Imatter how worthy, which are not directly related to the conduct of the artairs of the banks. Approved. Draft of telegram replying to a wire received from the Governor of the ecleral Reserve Bank of San Francisco under date of October 22, inquiring tte to the disposition of the Board at the present time with regard to the l'ediscount for member banks of paper acquired from nonrember banks which ttl'e eligible for membership in the Federal Reserve System, Governor Calkins 8t"in't; that he is inclined to the view that such permission should not be .0, ted unless a justifying situation exists in both the nonmember bank 41Lci the member bank. The proposed reply stated that the Board is granting /3ernlission for limited periods of time upon individual applications conb.,.; ---ng a satisfactory showing of facts and reasons therefor and accompanied the Federal Reserve agent's favorable recommendation, that the Board is 110t requiring that applications be restricted to cover paper of specified 4011131e/11ber banks, and that the Board will give prompt consideration to each 111(1;-• "idual case as it arises and will be glad to consider any expression of Ile "Which the Federal Reserve bank desires to submit in addition to the 1*"(Illtaendat1on of the Federal Reserve agent. 10/24/31 Upon notion, motion, the proposed reply was approved. Draft of letter to the Federal Reserve Agent at Philadelphia, approved the Executive Committee, with regard to the action of the Equitable Trust Cb11111 "WV, Atlantic City, New J'ersey, a member bank, in acquiring on October 13, 1931, the business of the -Pacific Avenue National Bank of Atlantic City 414 assuming certain liabilities, and acquiring on a liquidation basis the 4s8ets of the Chelsea Safe Deposit and Trust Company of Atlantic City; the 'Pederal Reserve Agent stating that an investigation of the Equitable Trust e()ZPallY will be made within the next few days to ascertain the effect of the taerCsrs on the member banic, following which a report and recommendation will be forwarded to the Board. The proposed letter stated that the investigation 441d be made sufficiently broad to enable the Federal Reserve Agent to reOt definitely, on the basis of certain data specifically requested, whether the transactions have resulted in any change in the general character of the "sets Of, or in the scope of the functions exercised by, the member bank within the meaning of the general condition under which it was admitted to )zemberahip in the Federal Reserve System. Upon motion, the proposed letter was approved. Llemorandum from Counsel dated October 20, prepared pursuant to the 4°tioll taken at the meeting on September 30, and submitting draft of letter to the Federal Reserve Agent at Boston, requesting certain additional inWith regard to the purchase by the Carroll County Trust Company or °01171aY, New Hampshire, of 500 shares of stock of the Continental Bank 4114 TInast Company of New York City; the information requested being desired to Ilable the Board to determine whether the purchase referred to is a Irlolatien either of the bank's conditions of membership, or by the director 329 10/24/31 Of the bank who authorized the purchase, of the criminal provisions of Section 5209 of the Revised Statutes of the United States. Upon recommendation of the Law Committee, the proposed letter was approved. Telegram dated October 15 from the Governor of the Federal Reserve Bnnk Of Iiew York stating that, at a meeting of the Board of Directors of the New bank on October 15, it was voted, subject to the approval of the Federal Re8erve Board, to authorize the officers of the bank to arrange for the reOf its participation of 25,000,000 in the central bank credit to the Reichabank, on substantially the sane tems and conditions as heretofore, for a' Period not exceeding three months from the expiration of the present credit 041Tovember 4. In this connection consideration was given to a letter dated Oct °ber 23 from Deputy Governor Crane of the New York bank reviewing the eil*clunztances leading up to the original granting of the credit and the developments in the Reichsbank's position since that time. At the conclusion of the discussion, it was, upon motion, voted to approve the action taken by the New York directors, with the understanding that renewal of the Federal Reserve banks' participation is predicated upon a like renewal by all other participating central banks. STANDING COLLITTLILS: 44:teds October 22 23 Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Idnute Book of this date. Recommendations approved. The meeting adjourned at 12:35 p.m. 4131proved: Secretary. t_0•_)1.1 AUXILIARY MINUTES (October 24, 1931.) c Reports of Standing Committee dated October 22 and 23, recommending "a gee in stock at Federal Reserve banks, approved as follows: 4 14 -.-4.cation for ADDITIONAL Stock: el8 L4, LNio. 7. karican Home Security Bank, Grand Rapids, Mich. 4P4L...cations for SURRENDER of Stock:, 111"rieo, Labor National Bank, Jersey City, N. J. (V.L.Abs. by New ;ersey Title Guarantee and Trust Company of Xersey City) tist t*--6ietinZILEI-natat Line National Bank, Wayne, Pa. (Insolvent) Shares 438 438 342 342 45 45 150 36 186 38 Total 38 611 7. rSt National Bank, Kewanee, Ill. (Insolvent) pirst National Bank, Coin, Iowa. (Insolvent) ikt4IELAILJat olaal Bank of Claremore, Claremore, Okla. (V.L.Suc. by Bank of Claremore)
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