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1_74 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Thursday, October 4, 1928 at 11:30 a.m. PRESENT: Governor Young Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Yr. Eddy, Secretary Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on October 1st were read and approved. Telegram datpd October 3rd from the Chairman of the Federal Reserve Bank °f Ph iladelphia and telegram dated October 3rd from the Chairman of the Federal Etese 'ye Bank of St. Louis, advising that their boards of directors at meetings °4 the date stated made no changes in the banks' existing schedules of rates Of discount and purchase. Without objection, noted with approval. llemorandam dated October 2nd from the Director of the Division of Research and Statistics, transmitting the resignation of Mr. W. J. Carson and l'"°Mmending its acceptance as at the close of business October 4, 1928. Accepted. Memorandum dated October 4th from the Assistant Secretary, advising that mr. V. Ott, mail clerk in the Secretary's office, who has been absent T fl'°1111 his duties on account of illness since April 27, 1928, and has received salary during that period, will be unable to return to work for some tim and recommending that Mr. Ott be granted leave of absence without pay "fective October 1, 1926. Approved. 175 10/4/28 -2- Letter dated October 2nd from the Treasurer of the United States, adielag that no applications were received from National banks during the quarter el cl September 30, 1928 for the sale of bonds under Section 18 of the Federal " Reserve Act. Noted. Letter dated September 19th from the Federal Reserve Agent at .11inne4P0 11e With reference to continued deficiencies in reserves of the First llati°11a1 Bank of Aeeder, North Dakota and the First National Bank of Denton, Ilentana; the Agent stating that in accordance with the Board's Regulation D 114tvidual letters have been written to the directors of the banks and recomIlle ng that in both cases a further period of thirty days be allowed before 44Y action against the banks is taken by the Board. Noted, with approval. The Governor then stated that special order of business for this illeeting is consideration of the question of examination of state member banks, 1110e Particularly the scope of the work to be undertaken by the Federal Reserve through the office of Ur. Gilbert, Supervisor of Examinations. The 4°*Ireraor referred to a memorandum on the subject addressed to the Committee (11114Aminations under date of September 10th by Mr. Gilbert, outlining his . the informs141"E/w ith respect to the use which should be made by the Board of t104 as to the condition of state member banks now received by it through reOf examinations conducted by state authorities. He stated that a copy 0t 141'• Gilbert's memorandum has been furnished to each member of the Board. At the suggestion of the Governor, Messrs. Gilbert, Herson and Wyatt Werth called into the meeting. - 76 1 10/4/28 -3-- The Governor then requested consideration by the Board of several questions which he submitted relating to the responsibility of the Board in the matter of the examination of state member banks. Various questions were dis- allssed thoroughly and individual opinions were expressed regarding them, but formal action was taken only in the case of one, namely, "Is it the duty of the Federal Reserve Board to satisfy and keep itself informed as to the conOf state member banks?" This question being put to a vote was formally answered in the affirmative, Mr. Platt dissenting. ;Lt the conclusion of the discussion, the 'Secretary was instructed to furnish the various members of the Board with a report on the other questions discussed, the individual Opinions expressed by members of the Board and informal conclusions reached by the Board, consideration of the questions to be resumed at a meeting to be held on Tuesday, October 9th. .R.F.13011TS OP STANDING COM:ITTEES: Dated, September 29th, October 2nd, 3rd, Recommending changes in stock at ederal Reserve Banks as set forth in the Auxil' ry Minute Book of this date. Recommendations approv The meeting adjourned a D M Secretary. '4. 91Dreved:
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