The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, October 5, 1928 at 11:30 a.m. PRESENT: Governor Young Mr. Platt Mr. Hamlin Mr. Miller Yr. James Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on October ilth Were read and approved. The Governor referred to the special order of business scheduled for ' this meeting, namely, a conference with a committee of the Federal Reserve Barl: 0f Atlanta consisting of Chairman Newton, Director Lea aid. Governor 81ack regarding the resolution recently adopted by the board of directors f the Atlanta bank, requesting that the bank and its branches be permitted to discontinue the collection of noncash items. The Governor stated that llesalis. Newton and Black are in Washington today but because of the inability f D irector Lea to be present do not desire to confer with the Board. He 8t4ted that he discussed the question of noncash collections informally with them and was informed that the matter will be given further consideration in 4'tlal1ta after which it will again be taken up with the Board. Letter dated October 4th from the Secretary of the Federal Reserve 1144k Of New York and telegram dated October 4th from the Chairman of the Pea„ -"II Reserve Bank of San Francisco, both advising that their boards of cill'ectors at meetings on the dates stated made no changes in the banks' Elist ing schedules of rates of discount and purchase. Without objection, noted with approval. 178 10/5/28 &eport of Committee on Salaries and Expenditures on letter dated October 18t from the Deputy Governor of the Federal ttn,„ report of employees for whom the directors of that bank approved leaves °f absence the eserve Bank of Boston, transmit- With pay on account of illness during the month of September, where total of such absences since January 1, 1928 has exceeded thirty days; the 4ara's Committee recommending approval of the salary payments involved. Approved. Report of Committee on Salaries and Expenditures on letter dated October 1" from the Secretary of the Federal Reserve Bank of Chicago, transmitting retort Of employees for whom the directors of that bank approved leaves of 413887:Ice With pay on account of illness during the period August 24th to Septembell 27th, where the total of such absences since January 1, 1928 has exceeded thirty days; the Board's Committee recommending approval of the salary paytriellts involved. Approved: Report of Committee on Salaries and Expenditures on report from the l'ecieral Reserve Bank of Linneapolis, of one employee for whom the directors of that bank approved leave of absence with pay on account of illness during the month of September, whose total absences since January 1, 1928 have exEletclea thirty days; the Board's Committee recommending approval of the salary 134YMent involved. Approved. Letter dated September 25th from the Federal Reserve Agent at San Pra, . "41sco, transmitting copies of a letter addressed to the United States 148tr4 Attorney at Los Angeles reporting certain transactions disclosed it I _3by a n examination of the former Pacific Southwest Trust and Savings Bank made as cf February 5, 1927, between the bank and S. C. Lewis and the Julian Petrole/411 Co rporation as a result of which certain liabilities were apparently assumed by the Pacific Southwest Trust and Savings Bank. The Secretary stated that this Pre81411ablY is intended as a final report of certain apparent violations of Federal Statutes by officers of the bank, previously brought to the attention of the , .0oard although none of the officers are specifically referred to. Upon motion, it was voted to refer the report to the Law Committee. Letter dated October 1st from the Federal Reserve Agent at Dallas, with ‘vmce to a statement regarding the current cotton crop made by V. J• axis 'Assistant Federal Reserve Agent at Dallas, which has been the subject Of eriticial comment by the press and others in the Southwest. • Aeferred to the Committee on District #11 for recommendation. The Governor then submitted draft of a letter to the chairmen of all Feder al Reserve banks, prepared in accordance with the action of the Board at its cn September 26, 1928, requesting that the directors of the banks, in sub1-40 changes in discount rates to the Board, also furnish a statement o the reasons which actuated them in making the change. Upon motion, the letter was approved as amended. The Governor then reported a conversation with Mr. Chester Morrill, Secretap, _ uf the Federal Farm Loan Board, regarding the proposed reorganization of the uclnt Stock Land Bank at Kansas City, in connection with which stockholders are ' ' 44Pcsiting with the receiver of the institution about 1 44,000,000 of FedLand Bank securities. He stated that the receiver has no facilities for 180 10/5/28 -4- the s afekeeping of the securities and that Mr. Morrill made inquiry as to what the attitude of the Board would be toward the Federal Reserve Bank of Kansas Cji"J acting as custodian for the receiver, issuing a non-negotiable, non-trans- ferable trust receipt, and with reimbursement to cover expenses and release from all responsibility except for negligence . The Governor stated that he 1141. expressed the opinion that the Board would not care to interfere and would leave the decision in the matter entirely to the directors of the Federal Reserve Bank of Kansas Oity. R.1)°•FITS OF ST II EES: Hecommending changes in stock at Federal Reserve Banks as set forth in the Auxiliary Linute Book of this date. Recommendations approved. Dated, October 2nd, Recommending approval of the application of Mr. Robert O. Hill for permission to serve at the same time as director of the Bank of New York and Trust Company and as director of the Dunbar National Bank, New York, N. Y. Recommendation approved. D4tad, October 4th, The meeting adjourned at 12:15 A pproved:
@FedFRASER