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2893 A meeting of the Executive Committee of the Federal Reserve Board With the Governors of the Federal reserve banks was held in Washington on Friday, September 21, 1934, at 4:15 p. m. PRESENT: Mr. Mr. Mr. Mr. Thomas, Vice Governor Hamlin James Szymczak Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Wyatt, General Counsel Goldenweiser, Director, Division of Research enfl Statistics Mr. Smead, Chief, Division of Bank Operations Mr. Mr. Mr. Mr. Mr. ALSO PRESENT: Messrs. Young, Harrison, Norris, Fancher, Black, Schaller, Martin, Geery, Hamilton, McKinney and Calkins, Governors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco, respectively. Messrs. Rounds and Peple, Deputy Governors of the Federal Reserve Banks of New York and Richmond, respectively. Mr. Williams, Economist for the Federal Reserve Bank of New York, who left shortly after the meeting began. The Governors had held a meeting during the morning of the Federal °Peri Mal'ket C ommittee and during the afternoon as a Governors' Conference, alici this meeting was for the purpose of hearing reports from the Governors 04 the Industrial loan activities of the various Federal reserve banks. The Go,, vernc)rs made statements as to the number of applications for industrial °ans received by the respective banks and passed upon by the induetri al advisorY committees and the banks and the number of loans and el3ramitri " Its made, and they reviewed the steps taken to acquaint the public with the 4 3aldustrial loan program and to secure the cooperation of financing 2894 9/21/34 -2- institutions in the consideration of applications for industrial advances and their participation in such advances. The opinion was expressed that the success of the progrPm depends largelY on securing the cooperation of financing institutions, which is bei„ obtained in a satisfactory manner in many distrtcts, and that one Of the most effective means of accomplishing this has been through meet- ings of the Federal reserve banks with bankers. The Governors of banks districts where such meetings had not been held indicated that they w°111d be arranged for in the near future. All of the Governors stated that their industrial advisory committees „. "e giving a great deal of time to the work of passing on applications tor "ans and are giving careful consideration to the applications received, 48 are the Federal reserve banks in reviewing the recommendations of the e°mmittees on all applications. Some of the Governors indicated that the cillttlitY of applications being received is improving. It appeared that all the banks have received a large number of applications which offer no justification for the eztionsion of credit, for the various reasons given the wee107 reports sent to the Board by the banks, and that the field between this class of borrowers and borrowers who are in a position to get the necessary credit from banks is rather narrow and some of the Govexpressed the feeling that for this reason the total amount of indlletrial loans that may be made on a reasonably sound basis is very limited. The statement was also made by one of the Governors that the in'-cen activities had stimulated loans by banks and that some of St effective results of the program will not appear in the advances Federal reserve banks for the reason that the loans will be made cina institutions without participation by the Federal reserve During the statements by the Governors certain problems encdunt' ie4 bY the various banks in connection with applications for industrial 8 Vere discussed. At the conclusion of the statements the meeting adourred to re- at 10:00 a. m.
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