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A meeting of the Executive Committee of the Federal Reserve Board wa8 held in the office of the Federal Reserve Board on Tuesday, September 8, 1931, at 11:30 a. m. PRESENT: Governor Meyer Mr. Hamlin Mr. James Mr. Magee Mr. McClelland, Assistant Secretary. The Assistant Secretary presented the following matters of business were considered and acted upon by the Committee: Memorandum from Counsel dated September 5th with regard to letter dated August 27th from the Federal Reserve Agent at San Francisco, advising, 14 response to the Board's letter of August 17th, that in his opinion the public interest has not been so affected by the consolidation of the Security Trilst and Savings Bank of Los Angeles and the Los Angeles-First National Trust aild Savings Bank as to make it advisable to revoke the permits previously granted by the Board to Messrs. T. E. Newlin and H. W. OtMelveny to serve the Parmers and Merchants National Bank and the Security Trust and Savings Bank of L°8 Angeles under which they are now serving the Farmers and Merchants National laarkk and the Security-First National Bank of Los Angeles. In his memorandum C°1111sel suggested that the Federal Reserve Agent at San Francisco be advised that the Board will take no action on the matter at this time. Upon motion, draft of letter submitted by Counsel in accordance with his suggestion WEIS approved and ordered transmitted. Letter dated September 3rd from the Secretary of the Federal Reserve Bejak of New York and telegrams dated September 2nd from the Chairman of the 4ders1 Reserve Bank of St. Louis and September 3rd from the Chairmen of the Peder , al, Reserve Banks of Kansas City and San Francisco, all advising that at Meat' 1h ,, -08 of their boards of directors on the dates stated no changes were made 9/8/31 -2- ln the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Telegram dated September 2nd from. the Chairman of the Federal Reserve 41* of Philadelphia, advising that because of a quorum not being available the regular meeting of the board of directors of the bank was not held on that dalr and no change was made in the bank's existing schedule of rates of discount elld purchase. Noted. Letter dated September 4th from the Secretary of the Federal Reserve Bank of Cleveland, advising of the establishment by the directors of the bank °11 that date, subject to the approval of the Federal Reserve Board, of a minimum " lhorized buying rate of 1% on bankers' acceptances, and of the following schedule of effective buying rates on bankers' acceptances. 1 to 90 days 91 to 120 days 121 to 180 days Repurchase 1 % 1 1/8% 1 1/4% 2 1/2% Upon motion, it was voted to approve a minimum authorized buying rate of 1% for bankers' acceptances at the Cleveland bank and, there being no objection, the establishment of the above schedule of effective buying rates was noted with approval. Telegram dated September 2nd from the Federal Reserve Bank of New York, sing that the advances which were made to the Bank of England on August 29th 4111131st, totaling $18,249,750, against gold earmarked for the account of the New bank by the Bank of England, were repaid on September 2nd. Noted. Telegram dated September 2nd from the Governor of the Federal Reserve 11841k of New York, advising that the total amount of the $125,000,000 credit to 9/8/31 11 the Bank of England has been used and on that date $118,115,000 had been invested bills. In this connection the Assistant Secretary stated that sterling bills 118143 now been purchased to the total amount of the credit. Noted. Report of Committee on Salaries and Expenditures on lists submitted by the Federal Reserve Banks of Boston, Philadelphia, Chicago and St. Louis of em%see for whom the directors approved leaves of absence with pay, on account et illness, during the month of August at Boston, Philadelphia and St. Louis, eIld during the period July 24th to August 27th at Chicago, where the total of stleh absences since January 1, 1931, has exceeded thirty days; the Board's ComZittee recommending approval of the salary payments involved. Approved. Letter dated September 2nd from the Chairman of the Federal Reserve Bank "St, Louis, advising that to fill the vacancy at the Louisville Branch caused bY the resignation on August 22nd of Mr. Earl R. Muir, the directors of the bank °A September 2nd appointed Mr. Stanley B. Jenks, formerly Manager of the Transit tiellartment, as Assistant Cashier at the Branch, but that no change was made in his Present salary. Noted. Report of Committee on District T. 11 with regard to letter dated Septem" 14 211d from the Federal Reserve Agent at Dallas, advising that there has been no 411°1 ' °vement in the reserve record of the First National Bank, Jayton, Texas, which llow been continuously deficient for the period December 1, 1930, to August 15, 1931 but renewing his previous recommendation that no action be taken looking to the forfeiture of the bank's membership. Upon motion, draft of letter to the Federal Reserve Agent at Dallas, advising that, in accordance with his recommendation, 9/8/31 -4no action will be taken by the Board, and draft of letter to the Comptroller of the Currency, transmitting, for his information, a copy of the Federal Reserve Agent's letter and of the Board's reply thereto, were approved and ordered transmitted. Mr. James then submitted a letter received by him under date of August 318t from Mr. John G. Lonsdale, President of the Mercantile-Commerce Bank and TrUat Company, transmitting a memorandum covering his appearance before the 13°Elrd on August 12th. Mr. James requested that the letter and memorandum be a"e a part of the official record of the Board. Upon motion, it was voted to circulate the letter and memorandum among the members for their information before placing them in the files. The Executive Committee then went into executive session and, upon l'eturn of the Assistant Secretary to the meeting, the Governor stated for the record that it had been voted to appoint Mr. Floyd R. Harrison to the 1/0s1tion of Assistant to the Governor, effective September 16, 1931, with 811417 at the rate of '4'15,000 per annum. itpo OF STANDING C0111=ES: 4ted September 2nd 3rd 4th 5th 8th Ntted, September 3rd 4ted, September 8th Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendation approved. Recommending approval of the application of Mr. John Kean, for permission to serve at the same time as a director and officer of the National State Bank of Elizabeth, New Jersey, and as a director and officer of the Linden National Bank of Linden, New Jersey. Approved. 9/8/31 198 —5- The meeting adjourned at 12:30 p• m, Assistant Secretary. (Executive Committee) fk i99 AUXILIARY LIINUTES (September 8, 1931) Reports of Standing Committee dated September 2nd, 3rd, 4th, 5th and 8th, recommending changes in stock at Federal Reserve Banks, approved as follows: Shares AP2119ation for ORIGINAL Stock: District No, 2. l'irst National Bank in Rockaway, New Jersey. 72 72 1 1 2 3 3 Total 8 9 2:1 1 .211pations for ADDITIONAL Stock: District No. 2. Rochelle Park Bank, Rochelle Park, N. J. District No. 7. ,tory County Trust & Savings Bank, Ames, Iowa. ' e0Ples State Bank, Imlay City, Mich. 'igeon State Bank, Pigeon, Mich. ...?!Zlications for SURREEDER of Stock: District No. 2. Lebanon National Bank, New York, N. Y. (V.L.Abs. by Manufacturers Trust Co.) N4tional Bank of North Hudson at Union City, N. J. (Insolvent) TtMes Square Trust Co., New York, N. Y. (Insolvent) 360 990 1,200 2,550 75 75 , 1U,Istr1ct No. 3. 'irst National Bank, Beaverdale, Pa. (Insolvent) District No. 4. ?arners National Bank, Haviland, Ohio. (V.L.Abs. by Farmers & Citizens Bank Company, Payne, Ohio.) Second National Bank, Pittsburgh, Pa. (V.L.Abs. by First National Bank at Pittsburgh) District NO. 5. l'irst National Bank, New Windsor, Md. (Decrease in surplus) 1) ,istrict No. 6. 1 St National Bank, Greensboro, Ala. (Insolvent) ' kIrict No. 7. fL irst National Bank, Le Mars, Iowa. (Reduction in surplus) 4rst National Bank, Dillsboro, Ind. (V.L.Abs. by 11 Dillsboro State Bank) -0 1roe National Bank, Monroe, Iowa. (V.L.Suc. by Monroe , State Bank) 'eonto National Bank, Oaonto, Wis. (Insolvent) 20 900 920 24 24 90 90 15 21 49 44 129 9/8/31 -2- Cations Shares for SURRENDER of Stook: (Cont'd.) 1211 .1:1211.11. Bank of Henning, Henning, Tenn. (Insolvent) 60 60 District No. 9. Steele County National Bank, Finley, N. Dak. (Insolvent) 20 20 D istrict No. 10. National Bank of Marlow, Okla. (V.L.Abs. by First National Bank in Marlow) 18 18 132 Total 132 4,018 District No. 12. Central National Bank, Portland, Oreg. (V.L.Abs. by Citizens National Bank) Report of Standing Committee dated September 3rd, recommending action on 4PPlicat1on for fiduciary powers by the following bank: DISTRICT NO. 3. PENNSYLVANIA: The Harleysville National Bank, Harleysville. (3368) Assistant Secretary. %roved:
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