19310507_1140a_Minutes.pdf

A meeting of the Executive Committee of the Federal Reserve Board

1148 hold in the office of the Federal Reserve Board on Thursday, May 7,

1931, at 11:40 a.

PRESENT: Governor MeyerYr. killerMr. TamesUr. McClelland, Assistant Secretary.

The Assistant Secretary presented various reports and eommunica_

ti°118 which were considered by the Committee and acted upon as follows:

Telegram dated May 6th from the Governor of the Federal Reserve Bank

or Boston, confirming verbal advice of the action of the board of directors

(It that bank in voting to establish a rediscount rate of 2% on all classes

(3t Paper of all maturities, effective the first business day following that

o

which approved by the Federal Reserve Board; the telegram also advising

that. 4.," 4ae directors voted, subject to the approval of the Board, to establish

Et lair, 44-114M authorized buying rate of 1:3 on bankers, acceptances, which latter

eleti°4 was Informally approved by the Executive Committee of the Federal

"Ire Board yesterday.

Upon motion, it was voted to ratifythe informal action taken by the Committee.

Letter dated Nay 5th from the Secretary of the Federal Reserve Bankor

-allsas City, advising that on that date its buying rate of 1 11/4 was

ed ettem—

to include all acceptances maturing up to 90 days; a rate of 1 3/4;

Previously applied to maturities within from 46 to 90 days.

Without objection, noted withapproval.

ratters approved on initials yesterday, namely, telegrams dated May

°la the Governor of the Federal Reserve Bank of Boston, the Chairman of

Pod,O ral Reserve Bank of Atlanta and the Chairman of the Federal Reserve

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


1:Lemorandum dated Dly 7th from the Chief Telegraph Operator, approved

Assistant Secretary, recommending the acceptance of the resignation of

5/9/31 -2-

Of Chicago, all advising of the establishment of a rate of 1 l/8-,; for

IIIIrChases of bankers' acceptances maturing within thirty days.

Upon motion, the informal action ofthe Executive Committee was ratified.

Telegram dated ilay 6th from the Chairman of the Jederal lieserve Bank

°rst, Louis, advising that the board of directors, at a meeting on that

(14te, made no change in the bank's existing schedule of rates of discount

4t1q Purchase, except to establish a buying rate of 1 1/8P/, for purchases of

bEtlak l's' acceptances maturing within thirty days.

Viithout objection, noted withapproval.

Telegram dated May 6th from the Secretary of the Federal deserve Bank

O —4Janeap0u3, advising of the establishment at that bank of a buying rate

or 1 for purchases of bankers' acceptances maturing within thirty days.


Letter dated ivay 2nd from the Deputy Governor of the Federal 1--ie-

416 Bank of Boston, advising that on April 23rd that bank's rate for pur-

°116'13e8 of bankers' acceptances under repurchase agreement, was reduced from

14';' to 1 3/8'17; the reduction not having been Previously reported to the130Eird.

4. the

h.ed„Prick G. 3urrows, messenger in the Telegraph Office, effective at the

110 e°r business :„.:Ay 9th, and the appointment to succeed him of Walter

faz,e

at a salary of y,;720 per annum, effective May 11th.

Approved.


Report of Committee on Salaries and Expenditures on list submitted

bl the, Federal Reserve Bank of Dallas of employees of that bank and its

blItnoilee for wham the directors authorized leaves of absence with pay, on

aecount of illness, during the month of April, where the total of such

Iltbl oes since January 1, 1931 has exceeded thirty days; the Board's Committee

1'1301:amending approval of the salary payments involved.

Approved.

Report of Comndttee on District No. 8 on letter dated May 5th from

tIte Federal Reserve Agent at St. Louis, reporting continuous reserve

(leriolencies on the part of the First State Bank of O'Fallon, Illinois,

4/4114 the period from August 1, 1930 to March 15, 1931; the Federal Reserve

" advising that since March 15th the member bank has maintained its re-

reserves and recommending that no action be taken at this time.

Upon recommendation of the Board'sCommittee, it was voted to advise theFederal Reserve Agent that no action willbe taken by the Board at this time, althoughhe is requested to keep in touch with thesituation and acquaint the Board withany important future developments.

Letters dated April 25th and May 5th from the Secretary of the

4481'41 Reserve Bank of Cleveland, transmitting copies of the bylaws of the

littabUrgli and Cinci ti branches, including amendments thereto made in

tcrt°ber and September 1926, respectively, providing that any meeting of

41)1'440h boards held in any one month, on any day prior to the monthly

4511tillf,-4 of the directors of the Federal Reserve Bank of Cleveland, shall be

004414

al'ed as the monthly meeting of the branch board; except those especiallyNae..

'4 as further provided in the bylaws.


5/7/31 -.4-

The Assistant Secretary reported thatthese amendments have not heretofore beensubmitted to the Board, and upon motion,they were approved.

Memorandum from Counsel dated May 6th, submitting a digest of state

14718 relating to Private banks and banking, prepared at the request of the

Ccomittee on Branch, Group and Chain. Banking; Counsel recommending that the

iest be published in the next number of the Federal Reserve Bulletin.

After discussion, upon motion,the matter was referred to the Governorwith power.

Letter dated May 6th from the Governor of the Federal Reserve Bank

or phIladelphia, requesting approval by the Board of an arrangement with

Pata * Cret, architect, for the taking of measurements and the preparation

" Preliminary plans for the erection of a two or three story building,

°4Dable of being carried higher if need should arise in the future, on the

ulte at the corner of Tenth and Chestnut Streets, which was purchased by the

444e1Ph1a Bank in June 1930; Governor Norris describing the crowded first

1'4°1' and vault facilities in the Present building, which make the con-

ion of an annex advisable.

After discussion, upon motion, it wasvoted to approve of the Philadelphia banktaking the preliminary steps contemplated.

The Governor then reported that the Governor of the Federal Reserve Barkot

°I York this morning advised him by telephone that at their meeting thisette

111°011 the directors will take action to reduce the discount rate of thebk4k

rrom a% to 1 l/22:). The Governor stated that the New York Bank isqpetctt

ing on daylight savings time and suggested that the Executive Committee

- and that a meeting of the Board, with the Secretary of the Treasury


5/7/31 .-5—

and the Comptroller of the Currency present, be convened for consideration

°t the matter, in order that action may be taken promptly here upon receipt

Of advice that the New York directors have acted.

Accordingly, the Executive Committee adjourned at 12:10 p. nu

PWare40_12, Assis-t—ant Secretary


Documents

19310507_1140a_Minutes.pdf