The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
_76 A meeting of the Federal deserve Board was held in the office of the Federal _deserve Board on Wednesday, October 9, 1929, at 12:00 o'clock. Governor Young Mr. Platt Mr. Miller Mr. James Mr. Cunningham Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on October 4th were read and approved. The minutes of the meeting of the Executive Committee of the Federal deserve Board held on October 8th were read and, upon motion, the actions recorded therein were ratified. The Governor then referred to the special order of business for this meeting, namely, application for permission to exercise fiduciary powers filed an behalf of the American National Bank and Trust Company of Valley City, North Dakota, being organized by the Northwest Bancorporation of Minneapolis to succeed the American Exchange Bank and the Liddlewest Trust Company of Valley City. The Governor reported that he had commanicated with the Governor and the Chairman of the Federal Reserve Bank of Minneapolis over the telephone and had requested certain additional information, not yet received. A discussion ensued, luring which Mr. Gough, Deputy Comptroller of the Currency, joined the meeting. At the conclusion of the discussion, Mr. James moved that approval of trust powers for the proposed American National Bank and Trust Company of Valley City, North Dakota, be deferred until the bank shall have been in operation for sufficient time to give the Board some information as to the character of its management and its qualifications for handling trust business. -04141'1 -2- 10/9/29 At the suggestion of the Governor, action on Mr. was deferred. motion James' Mr. Gough then left the meeting. Lemorandum dated September 19th from the Director of the Division of liesearch and Statistics, trananitting one prepared by Lir. Gardner of the Division, under date of September 16th, on the subject of the .7)resent gold situation. Ordered circulated. Letter dated October 8th from the Secretary of the Governor's Conference, inquiring whether the Board has any topics which it wculd like to have includea in the program for the forthcoming fall conference. 2,eferred to the Assistant Secretary. Memorandum from Counsel dated September 30th, calling attention to the fact that the Board's form of certificate of membership of state banks which has been used for a number of years without change, is out of date in that it refers to the amendment to the Federal deserve Act of June 21, 1917 but does not refer to any other amendments; Counsel sur7gesting that the body of the certificate be changed to read as follows: "This is to certify that has become a stockholder in the Federal deserve Bank in accordance with the provisions of of the Act of Congress approved December twenty-third, nineteen hundred and thirteen, known as the Federal Aeserve Act, as amended, and that, subject to the provisions of that Act, as amended, it is a duly qualified member of the Federal Reserve System, entitled to all the rifts and privileges of a member bank." Upon motion, Counsel's recommendation was approved. Memorandum dated October 5th from the State Department, transmitting a telegram received from the American rlinister at Vienna, Austria, with respect -3- 10/9/29 111 to disturbing rumors current in New York and elsewhere r-ardin7 the solvency of the 3oden Credit bank; the telegram stating that while the bank has large frozen credits, it is quite solvent and will be supported if necessary by cash loans of a tempornry nature from other institutions in Vienna. Upon motion, it above communication inquire if there is tranamitting a copy Bank of New York. was voted to acknowledge the to the State Jepartment and any objection to the Board's of it to the federal _deserve Letter dated October 2nd from the Deputy Governor of the Aderal _ieserve Bank of New York, with regard to transactions in the open market during the week ending October and; the letter stating that holdings in the Open 1,:arket Investment Account remained unchanged but that System holdins of Government Securities decreased approximately .;)6,000,000 and holdings of bills increased about „54,000,000. .Aeports of Committee on Salaries and _3xpenditures on lists submitted by the federal Aeserve Banks of Philadelphia, Cleveland. and St. Louis, of employees for whom the directors of those banks approved leaves of absence with pay, on account of illness, during the month of September, where the total of such absences since January 1, 1929 has exceeded thirty days; the -Board's Committee recommending approval of the salary payments involved. Approved. -eport of Committee on Sxaminations on letter dated October 5th from the 2ederal _deserve Agent at Cleveland, requesting permission for rer,resentatives of the Department of LIxamination of the bank to conduct a credit investigation, along the lines of his letter of ,.:arch 22nd, of the Ohio Savings and 2rust Jom1,ew Philadelphia, Ohio, at the time that institution is under examination by _ —4.. 10/9/29 'State authorities, without expense to the member bank; the 3oard's Connittee recoranending approval. Approved. Latter referred. to the Comptroller of the Currency at the meeting on October 1st, namely, application of The National 1.3arik of North Kansas City, North 'Kansas Jit,-, 1o., for permission to exercise general fiduciary powers; • together with memo rondurn from the Act Inc. Comptroller of the Currency, advis— ing that if the Board is disposed to waive its requirement as to the ratio of surplus to capital, the sur_,11s of the bank being only 10J of its capital, he is inclined to recommend approval of the application for trast powers. After discussion, with reference to the condition of the bank it was, upon motion,voted to defer action on the application pmding the next examination. The Assistant Secretary then submitted a revision,prepared. in the office of the Secretor: of the Treasury, of the letter addressed, to the Chairman of the Connittee on Banking and Currency of the Senate for the simature of the Secretor: of the Treasury on 5. 1247, bill to fix and establish leal and contract rates of interest between persons, firms, associations and corporations when residents of different states, which was approved at the meeting of the Board on duly 18th; the revision consistin -i; of the inclusion of a narar7raph relating to the possible unconstitutionality of the uroposed bill. ted, with approval. Liemorandum from Counsel date September 24th, submitting draft of a sand proposed latter to all Federal ,teserve banks on the P.:uestion .:hether so that the storage and gravel may be classified as readily marketable staples of those materials may e made the basis of bankers acceptances under the _80 -5_ 10/9/29 provisions of Section 13 of the Federal Reserve Act; the letter stating that after consideration of the question in the light of memoranda prepared by the Federal Reserve Banks of Cleveland and 1:ew York, opinions expressed by members of the .ieneral Acceptance Corzaittee and information received from the Department of Commerce, the Board has reached the conclusion that sand and gravel are not articles of such usage as to make them "the subject of constant dealing in ready markets with such frequent quotations of price as to make (a) the price easily and definitely ascertainable and (b) the staple itself easy to realize upon by sale at any time", as required by the definition contained in the Board's Regulation A,and that accordingly they may not properly be classified as readily marketable staples. Upon motion, the ruling set forth in the proposed letter was adopted and it was ordered transmitted. itEPOaTS OF STA1MING 00:2T.ITTMS: Dated, October 9th, Recommending a change in stock at a Federal Reserve bank as set forth in the Auxiliary Minute Book of this date. Recomendation approved. The meeting adjourned at 1:15 p.m. Assistant Secretary. Approved:
@FedFRASER