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_71 A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, October 8, 1929, at 12;30 p.m. PRESENT: Governor Young Mr. Platt Yr. James Mr. Cunningham Mr. McClelland, Asst. Secretary Matter approved on initials on October 7th, namely, application of the American National Bank in Winter Haven, Fla., for original stock (120 shares) in the Federal Reserve Bank of Atlanta, effective if and when the Comptroller of the Currency issues a certificate of authority to commence business. Formally approved. The Assistant Secretary then advised that the Comptroller of the Currency today made a call on all national banks for reports of condition as at the close of business October 4th and that a similar call was made by the Board on state member banks. Noted, with approval. Memorandum dated October 7th, approved by the Assistant Secretary, advising that the probationary appointment of Miss Anne B. Hacker, stenographer in the office of the Chief Clerk, expires at close of business October 7th, and recommending that the appointment be made permanent at the present salary of 41o00 per annum. Approved. Memorandum dated October 7th from the Assistant Secretary, recommending the employment of Simmie Washington as messenger on the Board's staff, for a 11 probationary period of three months, at a salary of ,,900 per annum. Approved. -2- 10/8/29 Aeport of Oommittee on 'Salaries and Exrenditures on list submitted by the federal aeserve Bank of Dallas of employees for whom the directors of that bank approved leaves of absence with pay, on account of illness, d',Arilv the month of September, where the total of such absences since January 1, 1929, has exceeded thirty days; the ioard's Jommittee recommending approval of the salary payments involved. Approved. 2elegram dated 0:tober 7th from the hairman of the federal eserve Bank of Dallas, advising that the board of directors at a meeting on that date ::Jado no change in the bank's existing schedule of rates of discount and purchase. ,ithout objection, noted with approval. Letter dated October ord from the nairman of the federal _teserve Bank of Atlanta, transmitting copy of a resolution adopted by the Jouthern Builders' Supply Association at a moetin::: recently held in Biloxi, ..ississippi, expressing the opinion that there is an excessive diversion of loanable funds to speculators because of anich productive industry is handicar)ped and urging the passage of such laws and enforcement of such regulations as are legally and economically sound and will restrict purely speculative 1o:ins, thus making available for industry needed funds at reasonable interest rates. After discussion, the resolution was noted and the Assistant ,.)ecretary was instructed to prepare an appropriate letter, advising that the problem referred to has concerned the Federal Reserve Board for some time, and that any suggestions the Association ni(-ht care to make in the way of proper leislation would be appreciated. _ 10/8/29 -3- Memorandum from Counsel dated October 7th, submitting draft of letter to Mr. Fred T. B- rd. of Hollywood, ,a1., in reply to an inquiry whether it would be violation of the Let of :lay 211, 1926, for a corporation organized uni.Jr the laws of California to engage in the business of buying and sellinr: trust ueeds and certificates of participation therein under the title "Pacific _Aeserve Company", especially since the title "California ::eserve Company" has been permitted and is no.: in use in that state; th proposed reply advising that the matter is one for determination by the Department of Justice and neither the 3oard nor the 2reasary Department could give any assurance against s prosecution for violation of the Let of May ;Yr, 1926 sho-ald the bizsines referred to be engaged in under th2. name "Pacific deserve Company', and also req.uesting further information regarding the "California eserve Jomrany" to ed drafts which reference 'ias made. .;ith his memorandum, Counsel also submitt the Federal of letters to the Att2rnej General of the -6nited 3tates and to Leserve ,,.1;ent at Can Francisco, transmittin copies Of the correspondence with to invstigate Syrd; the letter to the ,ederal Aeserve Acont recluesting him the Board. the operations of the "California -eserve Company' and advise .r,fter discussion, upon motion, the letters submittedwith Counsel's memorandum were approved and ordered Gransmitted. :-, joined the Lt this point, 1.1r. Gough, Jeruty Comptroller of the Currenc: permission to exmeeting and discussed with the Committee an application for n National Bank and ercise fiduciaru powers, filed on behalf of the Lmerica and when the Comptroller of 2rust Company of Valley City, M. D., effective if to commence business. the Currency issues a certificate of authority He stated rorthwest Bancorporation of that the new institution is being organized by the -4- 10/8/29 Minneapolis, which will hold all of the stock except directors' qualifying shares, to succeed the Iliddlewest Trust Company and the American Exchange Bank of Valley City, both of which are in unsatisfactory condition. The new institution, he stated, will have a capital of „100,000 and surplus of 425,000, the only other bank in Valley City being the National Bank of Valley City, with similar capital and surplus. He stated that favorable recommenda- tions have been received from the Chief National Bank Examiner and the Federal Reserve 2ent, as well as from the State Banking Department. The assets of the new institution, he stated, will include ,7,000 of doubtful and ,100,000 of slow assets and the proposed management will not be as strong as might be desired, but being under supervision of the Northwest Bancorporation, he expressed the opinion that the operation of the bank will be safeguarded and its organization will save an otherwise unfortunate situation in Valley City. After detailed discussion, during which one or two members of the Committee expressed doubt as to the advisability of approving the arplication, it was voted to defer action until the meeting of the Board tomorrow. REI30ATS OF STANDING CO=ITTEES: Ziecommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Dated, October 5th, Aecommending approval of the application of Mir. Willard H. pearsall for permission to serve at the same time as director of the Flatbush National Bank of Brooklyn, in New York and as officer of the Plaza Trust Company of New York City. Approved. Dated, October 7th, Recommending approval of the application of Mr. E. B. MacNaughton for permission to serve at the same time as director of the First National Bank of Portland, Oregon, as director of the First National Bark of Astoria, Oregon and as director of the Geo. W. Bates & Company, Bankers, Portland, Oregon. Approved. Dated, October 4th, 7th, _75 10/8A9 -5- AEPT2,TS OF T2ANDLP:G CO=I2TRP,S: (Oontld) _iecommending approval of the application of L:r. E. A. Wyld for permission to serve at the same time as director and officer of the .:'irst National Bank of Portland, Oregon and as director and officer (L.' the Teo. Bates & Company, Bankers, Portland, Oreopn. Approved. Dated, October 7th, decommendinc; approval of the application of Mr. J. H. Mackie Zor permission to serve at the same time as officer of the First National Bank of Portland, Oregon and as director of the k.k)o. ;;. Bates & Company, Bankers, Portland, Oren. Approved. Dated, October 7th, The meeting adjourned at 1:15 p.m. Assistant Secretary. Approved:
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