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246 A meeting of the Federal Reserve Board was held on Monday, September 19, in 4-.32, at 3:15 p. PRESENT: Governor Meyer Mr. Miller Mr. James Mr. Magee Mr. Pole Mr. Morrill, Secretary Mr. McClelland, Assistant Secretary Mr. Harrison, Assistant to the Governor. The following matters were presented for the consideration and action the Boara: Letter dated Sel)tember 15, 1932, from the Secretary of the Federal Reaerv 6 33114k °r of New York, and telegrams of the same date, from the Chairmen the ?ederal Reserve Banks of Kansas City and San Francisco, all advising that ) at loeetings of the boards of directors on that date, no changes were ragae the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Atiezt Letter dated September 9, 1932, from the Federal Reserve Agent at 8 '2 advising of the appointment of Kr. Sohn G. Farley of Birmingham, 11.1 beza as a director of the Birmingham branch for the unexpired portion of the terra end'ing December 31, 193,1-, to succeed Mr. Sohn H. Frye, recently -anaging Director of the branch. Noted. Letter to the Comptroller of the Currency, approved by four members °t the c)ar°1 on 3eptember 19, stating that, in accordance with the recom'114atie a c°ntained in the Comptroller's letter of September 16, 1932; the approved a salary at the rate of $2,700 per annum for National her 1j11j t. T. Vandoren, assigned to the Fifth Federal Reserve 9/19/32 -2Salary and letter approved. Reply, approved by five members of the Board on September 17, to a letter dated September 2, 1932, from the Federal Reserve Agent at Dallas, r813°rting that the City National Bank of Georgetown, Texas, has been cont14/1°1181Y deficient in its required reserves for the period of six months 811 ' 1131e August 15, 1932; the reply stating that, in view of the information slIbmitted, and in accordance with the agent's recommendation, the Board Will take uo action in the matter at this time other than to forward a copy or the agent's letter to the Comptroller of the Currency for the informatisnof his office. The reply also requested that the agent advise the 80ard, within a reasonable time, as to whether the bank has restored and is plaintaining its required reserves. Approved. Relay, approved by five members of the Board on September 17, 1932, t° letter dated September 7, 1932, from the Federal Reserve Agent at San w 81a°18e01 reporting that the Yakima Valley Bank Ec. Trust Company, Yakima, : 111411t°n, has been continuously deficient in its required reserves for 15eriod of seven months ending August 31, 1932; the reply stating, that i °r the information submitted, and in accordance with the agent's l'ee°11masiulation, the Board will take no action in the matter at this time, "L°11°1 it is suggested that, if the agent has not already done so, he 1.aider the advisability of calling the matter to the attention of the Nte banking authorities. The reply also requested the agent to advise the (Itxx,d, within a reasonable time, as to whether the bank has restored 4t1 18 Illaintaining its required reserves. Approved. 9/19/32 -3Reply, approved by five members of the Board on September 16, to a letter dated September 7, 1932, from the Federal Reserve Agent at Chicago, With respect to the question whether certain State member banks in rAchigan hich. are in the hands of custodians under the provisions of a recent amendut to the Ilichigan law are entitled to vote in the approaching elections or Class A and B directors of the Chicago bank; the reply stating that it ia the Board's understanding that, although the Federal reserve bank stock held by these bainkq has not been surrendered, each of then has been placed the hands of a custodian appointed by a court of competent jurisdiction 814E1 Plan of its depositors for reorganization or for the establishment of ewba is naw pending and may be consumnated with the approval of the coilrt, and that it is the Board's opinion that so long as the banks in C1Ile8tioll remain in the hands of such custodians they are not properly entitled, to nominate candidates for Class A and B directors or to vote in tIla election of such directors. Approved. Reply, approved by five members of the Board on September 16, to a letter dated September 9, 1932, from the Chairman of the Federal Reserve Bailit or inclosing a copy of the minutes of the regular meeting of the to 41'd or /'elllY at 4. directors of the Dallas bank, held on September 7, 1932; the that the Board has noted with interest and appreciation the l'ePoZ1 8 of the good results that are being obtained from the efforts of the orrieer 8 atmed t clf the bank to bring about operating economies. The reply also " the portion of the minutes relating to Governor McKinney's 11 It o the branches of the Federal Reserve Bank of Dallas and to member kAa 40 14111eraber banks of the district during August has been noted by the 4arid that a detailed report which Governor YcKinney made to Assistant Federal Reserve Agent Evans on August 30, from which it appears that Governor UcKinney utilized his vacation period for the purpose of making the visits, has been brought to the attention of the other members of the 13°.azd by I. Sames. The reply expressed to the Chairman, and through him to Governor MeKinney, the Board's appreciation of Governor 11:cKinney's action 1:4 thus utilizing his vacation period and in submitting a detailed and inrormative report on each of the places visited. Approved. Letter tO approved by four members of the Board on September 15, 1932, x M. Steuart, Director of the Bureau of the Census, inclosing a etatement revised up to date showing the membership of the Federal Reserve Boerd anti Personnel of its staff occupying administrative and supervisory omitting individual salaries. The reply stating that, as (1-1cP1ai Iled to the Director over the telephone, although it is the view of 00111azei of the Federal Reserve Board that the law relating to the publicst 01 of the Official Register does not apply to the personnel of the Federal Raaet B°11rd and its staff, the occasion for the objection expressed in the llottrcits Previous correspondence was the proposal to list salaries of 4a1 officers and employees of the Board and no objection will be ti „ 14cle to PUblication of the statement in the form given, without comment 11114 the r.,4 -,Lussion of the salaries. Approved. bez, ae Telezaphic reply, approved by four members of the Board on Septem- 17, 193 2, to a telegram of that date from the Governor of the Federal e'Ak of St. Louis, advising that the flIssissippi Cotton Seed Products B' 250 9/19/32 -5- CcirkPanY has applied for a direct loan from the St. Louis bank up to the limit fixed by the Board and is also requesting a limit loan from the Federal Reserve Bank of Atlanta; the principal place of business of the company being 18 located at Xackson, Mississippi, although a large part of its business (1°Ile in the Eighth Federal Reserve District. The reply stated that the 113ard has no objection to the St. Louis bank's entertaining an application 413 to the limit fixed by the Board, but that it is understood that the St. Lolue and Atlanta banks will cooperate closely in the negotiations and in licicing out details in case the applications are granted. A telegram was ackiresaed to the Governor of the Federal Reserve Bank of Atlanta on the liaMe date quoting the wires exchanged with the Governor of the Federal Re- ealPaBank of St. Louis. Approved. Reply, approved by five members of the Board on September 17, to a letter dated July 14, 1932, from the Federal Reserve Agent at Atlanta, with ' 44--cL to the information contained therein that member banks located in kieti 'Fl°11.da, are not making charges in excess of 10V per 100 or fraction thereof for cashing out-of-town checks presented by depositors of the member baratc, but that they are in the practice of making charges in excess of 102' Der koo Or fraction thereof for cashing such checks when presented by nonthe Federal Reserve Agent having suggested that the member 444 , eheeka c b44ks, Permitted to make a charge of 10(- per a00 or fraction thereof on ashed for non-depositors when drawn on member banks or nonmember alld that as to such checks drawn on non-par banks, the member banks mitutu AllIn 4 be Permitted to charge the cost incurred in collecting the checks Ilel"ge not in excess of 10V per )100 or fraction thereof. The reply 251 9/19/32 -6- stated that under the express terns of section 13 of the Federal Reserve Act) a member bank may *100 not in any case make a charge in excess of 10c/ per or fraction thereof, based on the total of checks and drafts presented "anY one time, for the collection or payment of checks, and the Federal Reserve Board is not authori-ed to permit member banks to make charges in " 88 of that amount, and that, in these circumstances the agent is l'equested to advise the member banks in nismi, Florida, of the requirements (If the law and to obtain information and advise the Board as to the Q(3rrecti0ns which are made to bring the practices of these banks within th151311°Irisions of section 13 of the Federal Reserve Act. The reply further Stated that in this connection the agent is advised that when the checks 1141341ed for collection are drawn on non-par banks any exchange charge made the drawee bank for the payment of a check need not be included when ccl'211111tilig the charge which may be made by the collecting bank under the proIleicts of law described above, since such an exchange charge cannot properl'fle co nsidered a charge made by the collecting bank. Approved. Letter, approved by five members of the Board on September 17, to the Go vernor of the Federal Reserve Bank of San Francisco, advising that the eclerEll Reserve Board has approved the revised personnel classification plan, ?c3/171 A, for the San Francisco bank and its branches which was inclosed with Golrernor Calkins' letter of Tune 28, 1932, and that the revised plan has been ellbstituted for the one previously on file with the Board. The letter tEtted that it is that the summary transmitted by Governor Calkins noted ellowe the salary the head of the Transit and nail Department at range for f 9/19/32 -7- the Portland branch as '2400-3000, whereas Form A shows the salary range a3240013300; that the summary shows the salary range for government bookkeeper in the Transit Department of the Head Office as =00-4800, whereas Form A gives the range as .4200-4500; that a number of changes luwe been made in the personnel classification plan which were not included ill the summary, for example, no mention being made in the summary of the °°11801idati0n of the nail and Messenger and Transit Departments at the P°rtisild branch into the Transit and Mail Department; and that the Board "811111e2 that the personnel classification plan, Form A, is correct in each itat ance and that it has approved the plan with that understanding. Approved. Letter, approved by four members of the Board on September 17, 1932, tcl the Chairman of the Federal Reserve Bank of New York stating that the lloard ilas received the report of examination of the New York bank made by the 8 examiners as of Tune 18, 1932, and requesting that the report be br°11gh t to the attention of the directors of the bank and that the Board be aqvilsed as to their comments on the findings of the examiners. Approved. 118131Y, approved by five members of the Board on September 16, to 1114%.011111 rlee P. Fox, Mmtgomery County, Pennsylvania, referring to her letter °r 118t 310 1932, addressed to Governor Meyer, and returning the file of 13441)eravr.1,. Ich were sent to Governor Meyer, with the statement that they have beell e xaWaled carefully by Counsel to the Federal Reserve Board and that he hEt tvilr , leed that the matters referred to therein relate to the administratiollo_ 17 estates which are matters within the exclusive jurisdiction of the the State of Pennsylvania, and that the Federal Reserve Board has 253 9/19/32 -8- ao ju risdiction or power over them. Approved. Telegram dated September 19, from the Governor of the Federal Re8" "Bank of Minneapolis requesting approval of a rediscount rate of 75 established by the executive committee of that bank on feeder loans to be earlled until the regional Agricultural Credit Corporation is in position to f4laction, at which time they will be turned over to the corporation; G.°176111°r °eery advising that it is vital that these loans be made promptly, that the three large banks in Minneapolis and St. Paul and the Federal l'e8erve hank are planning to take the loans over temporarily and that the l'ate fixed by the regional Agricultural Credit Corporation is 7%, which "c°411te for the Federal reserve bank voting to establish this rate on the Dartietaar lo Upon motion, it was voted to approve for the Federal Reserve Bank of Minneapolis, effective SepteMber 20, 1932, a rediscount rate of 7 on feeder loans made in the circumstances described in Governor Geery's wire, with the understanding that such loans will conform to the requirements of the amendment to the Federal Reserve Act of Ally 21, 1932, and the n°ard's circular letter of Xuly 26, 1932. recolorie bezdza: RePorts of Standing Committee dated September 10 and 15, 1932, Ming aPProval of the following changes in stock at Federal reserve lications for ADDITIONAL Stock: w 8 Bank, Colfax, Washington. (IncNational e, ls --ee in surplus) /1.4 Z41c. and Trust Company, Salt Lake City, (Increase in surplus) Shares 3 7 10 9/19/32 -9- 4 lications for SURRENDER of Stock: D istrict No. 2. Lackavituana National Bank, Lackawanna, New York. (Decrease in surplus) Shares District No 7 .le ;Bank, Lavayette tiationai Fovi I Indiana. (Voluntary liquidation) 60 60 180 180 24- 24 District No. 9. arst National Bank, St. Lawrence, South Dakota. (Voluntary liquidation) District No. 12. Nevada -First National Bank, Tonopah, Nevada. , (Voluntary liquidation) i.x.st National Bank, Torrance, California. (Decrease in surplus) 72 87 351 15 Total Approved. Thereupon the meeting adjourned. aY2-e,pzot . 4) Secretary.
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