19311201_minutes.pdf

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A meeting of the Federal Reserve Board was held in the office of the

GOVernoron Tuesday, December 1, 1931, at 11:55 a. in.

PRESENT: Governor MeyerMr. HamlinMr. MillerMx. JamesMr. Magee

Er. Morrill, SecretaryMr. McClelland, Assistant SecretaryMr. Harrison, Assistant to the Governor.

The following matters were presented for consideration and action

blr the Board:

Letter dated November 25 from the Chairman of the Federal Reserve

1144k of Dallas, advising of the establishment, on. November 27, of the follow-

iltg schedule of effective buying rates on bankers' acceptances:

1 to 45 days 3%46 to 90 days 3 1/8%91 to 120 days 3 1/4%121 to 180 days 3 1/25Repurchase

Without objection, noted withapproval.

Report of Committee on Salaries and Expenditures on a list sub -

kitted by the Federal Reserve Bank of Chicago of employees for whom the

rectors authorized leaves of absence with pay on account of illness during

thePeriod October 22 to November 19, where the total of such absences since

—417 1, 1931 has exceeded thirty days; the Board's Committee recommendins'.

411)13rovel.

Approved.

Report of Committee on Salaries and Expenditures on a letter dated

tove,41'per 24 from the Deputy Governor of the Federal Reserve Bank of Kansas

4tY,.Aecitlesting approval of a change in the personnel classification pipp

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

409

rrox

12/1/31 OW MIR

()t tile Omaha Branch to provide for the new position of"Statement machine

°Perator-Typistuin the accounting department of the branch, with a salary

range of .901 to 1,200 per annum; the Board's Committee recomrendins approval.

Approved.

Report of Executive Committee on a letter dated November 27 from the

C°1143tro1ler of the Currency recommending approval of a salary of ‘.20700 per

444114. for Mr. Lawrence B. Thurman, National Bank Examiner, assigned to the

Seventh Federal Reserve District; the Board's Committee recommending approval.

Approved.

Memorandum from Counsel dated November 25 recommending that the Board

41411°112e a subscription to the Congressional Service of the Corporation

at Company covering legislation of the first session of the Seventy-Second

C°11gre s 8 relating to banking and currency, at a cost of ',100.

Recommendation approved.

Memorandum from Cownsel dated November 28 with regard to a letter

cilltecl November 25 from the Federal Reserve Agent at Atlanta inclosing a form

Of resolution which the National Credit Association, No. 3, Sixth Federal

Rese 'Ire District proposes to have adopted by the boards of directors of banks

aPPlication for loans from the Association and which would authorize

the A

'''seociation to obtain from the Federal Reserve Bank, the Chief rational

miner, or the state superintendent of banks, any information con-

'" ln the records of the respective offices bearing upon the conditionOf

aPPlicant bank, including the report of the last examination; the

4481'al Reserve Agent stating that he is taking the matter up with the

tro11er 11of the Currency as to national banks and would appreciate advice

the Board as to whether, when such resolutions are adopted by the


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Of directors of state member banks, he may furnish to the loan

conimittee of the Association information contained in the reports of

e:cftlination in his custody. In his memorandum Counsel stated that the

Com ptroller of the Currency intends to advise Mr. Newton that he may dis-

close to the Association information contained in the reports of examination

°t national banks except that in the confidential section of the reports,

sIld he submitted draft of a telegram to the Federal Reserve Agent at

4tla1lta, advising that the Federal Reserve Board consents to his furnishing

the National Credit Association any information in reports of examination

state member banks except that included in confidential sections provided

that the boards of directors of banks concerned have adopted resolutions

ellthorizing this to be done; the telegram also stating that where state

sZaJniners made or participated in an examination such information should

ilcIt be disclosed without the consent of state authorities.

Upon recommendation of the Law

Committee, the telegram was approved.

410

Reply to letter dated November 14 from the Chairman of the Federal

Reserve Bank of Cleveland, advisinc, that the Board of Directors, at its

illeeting on. November 6, considered the matter of the assessment of pro-

8es8ive penalties for deficiencies in reserves, and, with the belief that

ressive Penalties are drastic and harsh in the face of the present

itIllItion and the difficulties which are confronting many banks, voted to

34sPend their application; the proposed reply stating that in view of the

"ti°31 of the directors the Federal Reserve Board has voted to suspend the

111'°.gressive penalty previously prescribed for the Fourth Federal Reserve

tistrict pursuant to the terms of Section IV(c) of Regulation D, and that the

l'edsl'al Reserve Bank of Cleveland should not resume the assessment of pro-

penalties without first applying to the Federal Reserve Board for the


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l'elnoval of this suspension.

Upon motion, the reply wasapproved.

Memorandum from Counsel dated Yuvember 16 submitting draft of a

l'ePlIr to letters dated October 24 and November 10 from lass Charlotte F.

a'°11e8) Paoli, Pennsylvania, requesting certain information with regard to

the trust powers granted by the Board to the First National Bank of West

Chester, Penna., and the National Bank of Chester County, West Chester,

Pelliaa• In his memorandum Counsel also called attention to the fact that the

8°41'dts records are not clear as to whether the so-called general power was

gl'ented to the two banks and he submitted drafts of letters to them request-

that the permits issued to the banks, or photostatic copies thereof, be

f1111)A8hed to the Board for its inspection.

Upon motion, the letters submittedwith Counsel's memorandum were approved.

Memorandum dated November 12 from the Chief of the Division of Bank

(IIItions, submitted in accordance with the action taken at the meeting on

ktle „and suggesting that in the future the supplements to the par list

showSO far as practicable, the names of the cities and towns in which the

of banks with respect to the par list has changed, rather than the

461-8 of the individual bapks, and that there be eliminated from the

414)Plements the reasons for withdrawals from the par list. With his MBED-

11Mr• Snead submitted drafts of letters to the Governors of all Federal

ve banks, enclosing specimens of the form in which it is proposed to

the par list and the monthly supplements, and requesting that they ad-V.i4e

Pl'optly of any suggestions as the Board would like to make the newrcyttot

effective as of January 1, 1932; the letters to the Federal Reserve Banks


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of St. Louis and Dallas also stating that the Board has been advised that the

°ther ten Federal Reserve banks have found it advisable to forward checks

°n closed banks in other districts to the proper Federal Reserve bank for

Presentation, Protest, or other action, instead of returning them direct to

the depositing bank, and suggesting that St. Louis and Dallas may wish to

eonsider the advisability of changing their practice in this respect.

Upon motion, the proposed letters

were approved.

There was then presented the following resolution adopted at the

Meeting of the Open Market Policy Conference held in Washington yesterday:

. "The Conference reviewed a preliminary memorandum sub-

matted by the Chairman. They discussed business, banking and

credit conditions both here and abroad and considered in

Particular the effects upon the American banking and credit structureof the recent huge withdrawals of gold and currency and possible

further withdrawals of currency for holiday purposes or for hoarding.

They further considered the heavy maturities of bills in the System

Portfolio before the end of the year. While the Conference was ofthe opinion that there is no occasion for any immediate purchaseOf Government securities, nevertheless they voted that in view ofall circumstances and in order to be prepared if and when occasion

arises, the executive committee be authorized in its discretion tobuy up to 200,000,000 of Government securities before the end ofthe year. It was the sense of the Conference that the committee

should also be authorized in their discretion to sell any securities

so bought after the turn of the year if conditions then permit.

The Conference felt that there should be another meeting of the

Conference early in Tanuary to consider the System's general

oPerations and policies in the light of conditions as they then

exist."

A general discussion followed, at the

conclusion of which the following letter,

for the signature of the Governor, to the

Chairman of the Open Market Policy Conference

was approved:

"The Federal Reserve Board has considered the recommendations

submitted by the Open Market Policy Conference following its meet-

ing with the Board yesterday, and you are advised that the Board

aPproves the granting of authority to the Executive Committee of

the Conference, in their discretion, to buy up to ';:,200,000,000 of

Government securities before the end of the year.


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"The Board also approves the granting of authority to theExecutive Committee of the Conference, in their discretion, tosell any securities so bought, after the turn of the year ifconditions then:permit. . It is understood that this authorityle to run until January 30 or such earlier date as anothermeeting of the Open Market Policy Conference may be convened."

The meeting adjourned at 1:00 p.m.

imocri-Eatary.


19311201_minutes.pdf

Documents

federal reserve board

federal reserve agent

report of committee

conditionofapplicant

national bank examiner

report of executive

federal reserve1144k

boards committee recommendins