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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, September 17, 1930 at 10:40 a.m. PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. .Tames Mr. Cunningham Mr. Pole Mr. McClelland, Asst. Secretary The Governor advised the Board of suggestions which have been made that the Fall Conferences of Governors and Federal Reserve Agents scheduled to begin on Monday, October 6th, be advanced to Wednesday, September 24th, and after discussion, upon motion, he was authorized to arrange, if possible, to have the Conferences convene on the latter date. The Governor then reported that he has designated Jr. Francis L. Fahy 48 his private secretary effective September 16th. He stated that Mt. Fahy's 8e1ary is .3,600 per annum and inquired whether there would be any objection to the payment of this salary in view of the limit of 3,000 per annum hereto- fore placed by the Board on secretarial salaries. Upon motion, it was voted that a salary of 3,600 per annum be approved for the office of Secretary to the Governor of the Board, with the understanding that it is not to establish a precedent for the payment of other secretarial salaries beyond .)3,000. The minutes of the meeting of the Federal Reserve Board held on September 5th were then read and approved, as amended. The minutes of the meetings of the Executive Committee of the Federal Reserve Board held on September 9th and 12th were then read and, upon motion, the actions recorded therein were ratified. At this point, Mr. Miller left the meeting. g/17/30 -2- Mr. Hamlin then referred to the recent resignation of Vice Governor Platt and submitted the following resolution, which was unanimously adopted 8.nd ordered spread upon the minutes: "WHEREAS, Honorable Edmund Platt, after a tenure of office of more than ten years, has resigned as a member and Vice Governor of the Federal Reserve Board, having been appointed to these positions after rendering several years of valuable service to the banking community as Chairman of the Committee on Banking and Currency of the House of Representatives of the United States, and "WHEREAS, Mr. Platt's service has been characterized by a deep appreciation of the responsibilities of the Board and an unfailing interest in all of its problems which have won for him the high regard of his colleagues, "THEREFORE BE IT RESOLVED, That the members of the Board extend to Mr. Platt all good wishes for success in his new responsibilities as Vice President of the Marine Midland Corporation, for which they feel he is admirably equipped by reason of his long experience and extensive study of economic and banking questions." The Assistant Secretary was instructed to transmit an engrossed copy of the above resolution to Mr. Platt. Telegram dated September 12th from the Secretary of the Federal Reserve Bank of Atlanta, advising that the board of directors' meeting scheduled for that date was not held due to lack of a quorum. Noted. Reports of Committee on Salaries and Expenditures on lists submitted by the Federal Reserve Banks of New York and Cleveland of employees for wham the directors of those banks authorized leaves of absence with pay, On account of illness, during the month of August, where the total of such absences since January 1, 1930 has exceeded thirty days; the Board's Comtittee recommending approval of the salary payments involved. Approved. 9/17/3o -3- Report of Committee on Salaries and Expenditures and Committee on Research and Statistics, on letter dated September 15th from the Chairman Of the Federal Reserve Bank of New York requesting approval by the Board or the action of the directors of the bank in fixing a salary of $7,500 Per annum for NI.. Woodlief Thomas, who is to be employed on the bank's research staff, effective September 23rd; the Board's Committees also recoMmending approval. Approved. Letter dated September 16th from the Federal Reserve Agent at Philadelphia, requesting approval of the designation as special assistants to EXaminers of ten employees of the bank named in the letter. Approved. Report of Committee on Examinations on letter dated September 15th fl'oM the Assistant Federal Reserve Agent at Cleveland, advising of a request received from the Guardian Trust Company of Cleveland for permission to purchase certain mortgages of the Vcela Building and Loan Association and to assume its savings and Christmas Club liabilities; the Committee l'eoommending that the Board interpose no objection to the transaction, ainoe the Federal Reserve bank is advised that the purchase will result ill no material change in the general character of the member bank's assets. Upon motion, the recommendation of the Committee was adopted. Letter dated September 12th from the Assistant Federal Reserve Agent 8't New York, advising of the proposed liquidation of the Broadway National Trust lel* and Trust Company, New York, N. Y., for merger with the Plaza ' 9/17/30 —4- Company and the Park Row Trust Company, also of New York City, which merger Will be effected at the close of business September 29th under the charter Of the Plaza Trust Company, a member bank. Noted. Letter dated September 10th from the Federal Reserve Agent at New York, transmitting notice of intention to withdraw from the Federal Reserve System filed by the Orleans County Trust Company, Albion, N. Y., aS well as a letter from the member bank requesting that the Board waive the usual six months' period before withdrawal; the Federal Reserve Agent stating that it would appear that no exceptional circumstances exist in this case which would justify waiver of the six months' notice and he, therefore, recommends that the application be disapproved. After discussion, upon motion, the recommendation of the Federal Reserve Agent was adopted. In reply to an inquiry by the Governor, he was advised that it is Aot the practice of the Board to give publicity to the filing of notice by a member bank of intention to withdraw from the Federal Reserve System, although advice of its withdrawal, when completed, is issued in the Federal Reserve Bulletin. He raised a question as to the desirability of the Board's announcing in the Bulletin the filing of the six months' notice in order that depositors and the public generally may have advance information of the member bank's intention to withdraw. After discussion, the matter was referred to the Board's Counsel for an opinion as to any question of law which may be involved and made a topic for the forthcoming Conferences of Governors and Federal Reserve Agents for discussion as to policy. g/17/30 -.5- 11 Memorandum from Counsel dated September 17th, with regard to an inquiry made by the Chairman of the Federal Reserve Bank of Clevsland as to the eligibility for reelection as Class B Director of that bank of Mr. Samuel P. Bush, Who has recently resigned as President of the Buckeye Steel Castings Company of Columbus, which office he held at the time of his previous election, and has also retired from all other business connections except one railroad directorship; Counsel submitting draft of a telegraphic reply advising that the Board is of the opinion that Mr. Bush is ineligible for reelection. Upon motion, the telegram was approved and ordered transmitted. Memorandum dated September 11th, from Counsel, submitting draft of letter to the Federal Reserve Agent at Boston, with regard to a recent arshgement by the Atlantic National Bank of Boston under which stock in the Atlantic Corporation previously held in the name of the bank has been turned °ver to three trustees for the sole benefit of the bank; the proposed letter stating that the Board is of the opinion that the national bank has not effectually disposed of its stock holdings in the Corporation, as requested by the Board, since the entire beneficial ownership is still in the national bank, although the trustees hold legal title thereto. Upon motion, the letter submitted by Counsel was approved and ordered transmitted. .. 11'..PPRTS OF STANDING COMMITTEES: September 15th, 16th, I3ated, September 16th, 17th, Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendations approved. -6- REPORTS OF STANDING COMMITTEES: (Cont'd) Dated, September 11th, Dated, September 11th, Dated, September 11th, Dated, September 15th, Dated, September 16th, Dated, September 16th, Dated, September 17th, Recommending approval of the application of Mr. Edward Potter, Jr., for permission to serve at the same time as director and officer of the Broadway National Bank of Nashville, Tenn., as director and officer of the Commerce Union Bank of Nashville, Tenn., and as director of the Union Planters National Bank & Trust Company of Memphis, Tenn. Approved. Recommending approval of the application of Mr. James E. Caldwell, for permission to serve at the same time as director and officer of the Fourth and First National Bank of Nashville, Tenn., as director of the Union-Planters National Bank and Trust Company of Memphis, Tenn., and as director and officer of the Nashville Trust Company, Nashville, Tenn. Approved. Recommending approval of the applicatidn of Mr. Meredith Caldwell, for permission to serve at the same time as director of the Fourth and First National Bank of Nashville, Tenn., as director of the Union-Planters National Bank & Trust Company of Memphis, Tenn., and as director of the Nashville Trust Company of Nashville, Tenn. Approved. Recommending approval of the application of Mr. John L. Hall, for permission to serve at the same time as director of the Lee, Higginson Trust Company of Boston, Mass., and as director of the Merchants National Bank of Boston, Mass. Approved. Recommending approval of the application of Mr. Lloyd R. Maxwell, for permission to serve at the same time as director and officer of the South Ashland National Bank of Chicago, Ill., and as director of the Union Bank of Chicago, Ill. Approved. Recommending approval of the application of Mr. J. E. Brulatour, for permission to serve at the same time as director of the Liberty National Bank & Trust Company in New York, N. Y., and as director of the Chelsea Bank & Trust Company of New York, N. Y. Approved. Recommending approval of the application of Mr. Walter H. Bennett, for permission to serve at the same time as director of the American Trust Company of New York 9/17/30 -7_ iiEPORTS OF STANDING COTS: (Cont'd) City, N. Y., and as director of the Grace National Bank of New York City, N. Y. Approved. The meeting adjourned at 12:10 p.m. Assistant Secretary,' APProved:
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