150 4 meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, February 14, 1928, at 12:10 p.m. PRESENT: Avernor Young Er. Platt Er. Hamlin Er. Eiller Er. Cunningham Er. Eddy, Secretary Er. McClelland, Asst. Secretary The minutes of the meeting of the Federal Aeserve Board held on ?ebruary 10th were read and approved. Matter approved on initials on February 10th, namely, telegram dated February 10th from the Chairman of the Federal Reserve Bank of 4tlanta, adv ising that the board of directors on that da - i voted to es- tablish a rediscount rate of 4 per cent on all classes of paper of all mat rj t effective the first business day following that on which by the Federal Reserve Board. The rate of 4 per cent established by the Atlanta a irectors having been approved informally on February 10th, effective as at the opening of business on February llth, was formally ratified, Er. Cunninham not voting. Er. Cunningham stated that the members of the Board are all familiar with his position with regard to rate ad- justments being made at this time. The S ecretary called attenticn to the fact that the above telegram also Nports tht the directors of the Atlanta bank at their meeting on FebrzLxy 10th made no (3f ball.>:r,rs acceptances. PobrIlar 10t4 from the nairman of the Federal Reserve Bank of :dchmond, Change in the barik's existing schedule Of rates for purchases dithout objection, noted with approval. leP°rt of Jonmittee on Salaries and Expenditures on letter dated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Transcript
150
4 meeting of the Federal Reserve Board was held in the office of the
Federal Reserve Board on Tuesday, February 14, 1928, at 12:10 p.m.
The minutes of the meeting of the Federal Aeserve Board held on
?ebruary 10th were read and approved.
Matter approved on initials on February 10th, namely, telegram
dated February 10th from the Chairman of the Federal Reserve Bank of
4tlanta, advising that the board of directors on that da-i voted to es-
tablish a rediscount rate of 4 per cent on all classes of paper of all
mat rjteffective the first business day following that on which
by the Federal Reserve Board.
The rate of 4 per cent established by the Atlantaairectors having been approved informally on February10th, effective as at the opening of business on Februaryllth, was formally ratified, Er. Cunninham not voting.
Er. Cunningham stated that the members of the Boardare all familiar with his position with regard to rate ad-justments being made at this time.
The Secretary called attenticn to the fact that the above telegram alsoNports
tht the directors of the Atlanta bank at their meeting on FebrzLxy10th made no
(3f ball.>:r,rs acceptances.
PobrIlar
10t4 from the nairman of the Federal Reserve Bank of :dchmond,
Change in the barik's existing schedule Of rates for purchases
dithout objection, noted with approval.
leP°rt of Jonmittee on Salaries and Expenditures on letter dated
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approval of a salary of fi;3,600 per annum for Mr. A. M. Brou0aton,
to /30 employed in the Bank'..ielations Department; the Board's Committee recom-
511cling approval.
Approved.
eport of Committee on 3alaries and Expenditures on letter dated Febru-
4/10th from the Chairman of the Federal deserve Bank of Dallas, reouesting
4.1)r°val of the action of the board of directors of that bank in voting to
from January 23rd to March 15th, with full pay, leave of absence on
aceilunt of illness previously granted Mr. C. H. )oerner, Assistant Manager
of the Accounting Department; the 'Board's Committee recommending approval
the salary payment involved.
Approved.
aeport of Committee on 3alaries anl Expenditures on letter dated
N)run--rY 10th from the Chairman of the Federal deserve Bank of Dallas,
t cm
e—esting approval of the action of the board of directors of that bank
°ting to extenu for a period of sixty days from February 1st, with half
leave of absence on account of illness previously granted Miss Erin
d'41.e37, Librarian; the Board's Committee recommending approval of the salary
ellt involved.
Approved.
Letter dated February 11th from the Chairman of the Federal Heserve
0f Atlanta, advising of the acceptance of the resignation of Dir. • 3.
a director of the New Orleans Branch and of the appointment of :.1r.4
01.4
•4i.
iJcuden, Jr., President of the Jhitney Central National Bank of New
4489 as a director of the branch for the unexpired term ending December
1930
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Noted.
Letter dated February 11th from the Chairman of the Federal .eserve Bank
Of ..t1 anta, requesting approval by the Board of a salary of ,6,300 per
annum,
effect' -lve February 11th, for 1,1r. 3. 1:cLarin, jr., who has been elected
;.t114P1,.r3-dc±; Oirector of the Jacksonville Bfanch, to succeed :r. Jeorge H.
be6a4ssure, deceased.
The attention of the Board was called to the fact
that Lclarin is one of the officers of the Federal
deserve Bank of ,,Alanta whose actions were under inv.isti-
ation by the Board following participation in the emer-
P.,ency shinmJnt of currency made by that bank to its Hav-
ana ;J,gency in 1926.
Upon motion, the proposed increase in :Lir. McLarin's
salary was laia on the table and the Secretary was in-
s;tructed to renort to the Board the activities which the
Board had under investigation and the results of the in-
vestigation as far as :cLarin is concerned.
Let"ter dated February 10th from the Chairman of the International ,,c-
cePtance Bank, Inc., advising of an increase to ;1,000,000 each of the
Pitaiand surrlus of the International 2,cceptance Trust
Company, a sub-
4rY institution.
Noted.
ille oecretary then referred to the fact that between the
dates of
the P"assar2:e of the so-called LcFadden ,ct and the promulgation of the
B°4111.'s n'w H, 3eries of 1928, twenty-eight state banks .:ere
4ftrIlittect tomembership in the Federal deserve System upon
acceptance by
tre°f the conditions of membership set out in the Board's
aegulation
1 of lBLt, and upon agreement by them to be supect to any chanres
couditions of membership which the Board miht find to be necessary
r.
ei the amendments to the Federal teserve ,,ct contained in the
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Ct. The Secretary presented draft of a letter to the Myerstown
-ompany, myerstown, Pa., whose application for membership was approved
bY the Board on March 24, 1927, advising that in accordance with the agree-
Meat made at the time the bank was admitted, it is subject to the conditions
menthership set out in the Board's Regulation "H", Series of 1928, in lieu
()f those contained in aelation H, Series of 1924.
The
Upon motion, the proposed letter to the Lyerstawn
2rust Company was approved, and the Secretary was direct-
ed to transmit a similar letter to each of the following
state member banks admitted under the same agreement:
Merchants Trust Company, Newark, E. J.
Pacific Coast Trust Company, New York, Y. Y.
Dime Bank Title and Trust Co., lilkes-Barre, Pa.
Ladoga State Bank, Ladoga, Ind.
Bank of Hoquia-,, Hoquiam,
Bank of Lvoca, Avoca, N. Y.
Pigeon State Bank, Pigeon, Mich.
Bank of Darlington, Inc., Darlington, S. C.
Wilkes-Barre Deposit and Savings Bank, Wilkes-Barre, Pa.
The Houtzdale Trust Co., Houtzdale, Pa.
4lakertown Trust Company, Quakertown, Pa.•
Peoples savings and Trust Co., kianticok3, Pa.
Temple State Bank, Temple, Pa.
Guardian Detroit Bank; Detroit, Mich.
dright Banking Company, Bellevue, Ohio
Columbus Trust Company, Newark, N. J.
The Guaranty State Bank of San Antonio, Tex.
The Miners Deposit Bank and Trust Company, Lykens, Pa.
The Peoples State Bank of Shannon, Ill.
The Peoples Bank and Trust Company, Seattle, :lash.
The Fordson State Bank, Fordson, Mich.
The Dollar State Bank and Trust Company, Scranton, Pa.
The Trust Company of Orange, N. J.
American xchange Bank, Portland, Ore.
The Fidelity Savings State Bank, Topeka, Kans.
First Security Bank of Rock Springs, :iyo.
Peoples Trust Company, Dunellen, N. J.
Governor then presented a letter addressed to him under date of
Jarelh.„-- rY 26th by the Director of the Sconomic and Financial
Section of
the L()ague of Nations, requesting that a representativ
e of the Board
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attend a meeting to be held at the Bank of France on A.pril 11, 1926, for
the Purpose of considering suitable measures to adopt in order to attain
4 greater degree of comparability between monetary and bank statistics
Published in the different countries; the letter stating that the discus-
sien will be confined wholly to statistical problems and will in no way
tc/lIch upon questions of banking policy.
The Governor reported that the Federal deserve Bankof New York will be represented by Yr. Burgess, and thatne has discussed the proposed conference with the DirectorOf the Board's Division of csearch and 3tatistics who isof the opinion that information of value to the Board would
De obtained through representation at the conference.
. lifter discussion, Hamlin moved that r. .Toldenweiser,
Director of the Board's Division of desearch and 3tatistics,be authorized to attend the proposed conference as representa-
tive of the Board.
1,1r. Hamlin's motion being put by the Chair
was carried, Lessrs. Miller and Cunningham voting
"no". ,/
The Governor then referred to the fact that Mr. Platt expects to be
away from Jashington ,ednesday and Thursday, and that accordingly there
will be no quorum of the Board present. He suggested that the :]xecutive
°I4littee be authorized to act nnon any rediscount rate of 4 per cent
Which may ,eestablished by the directors of a Federal Eeserve bank during
the next two days. He stated he understood it is quite probable that the
l'hilacielphia directors will establish a 4 per cent rate at their meetingtomorrow,
Upon motion, the '-]xecutive Committee was authorized
to approve a rediscount rate of 4 per cent if established
by any Federal deserve bank during the next two days.
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Letter dated February 10th from the LIcting Chairman of the Open
1,1arket Investment Jommittee, acknowledging receipt of advice from the
Governor that the Board is in sympathy with the conclusion expressed
14 his letter of 2ebruary 7th that it might be wise for the present to
e°4tinue the Open larket Investment Account at about the present level
Of c275 ,000,000 and to watch the effect of sales already made and changes
t4 rediscount rate before taking any further action; tile Acting ,hairman
stating that if there should be any need of a change from this policy,
it isproposed to confer the Board before taking action.
Noted.
The Gover!,or called attention to the fact that the Federal Advisory
C°11n011 meets in ,ashington on Fridaci, February 17th.
IIT2PO4m'".3 OF ST.LIDING-COTIIITT7M:
bated, February 10th, Recommending changes in stock at Federal Reserve
11th, Banks as set forth in the Auxiliary Minute Book13th, of this date.
Dated, February
14th, Recommendations approved.10th, Recommending action on applications for fiduciary
13th, powers as set forth in the Auxiliary Minute Bookof this date.
Ipetea aecox.mendations approved.February 11th, Recommending approval of the application of
Charles A. Rowan for permission to serve at thesame time as director of the Bank of Pittsburgh,
N. A., Pittsburgh, Pa., and as director of the
First National Bank, Mmerding, Pa.
ated F
Recommendation approved.I •Cebrila 11th, Aecommending approval of the application of Yr.
Harry L. Machen for permission to serve at the
same time as officer of the AnP!lo & London Paris
National Balk, San Francisco, Calif., and as
director of the First National Bank of Hanford,
Calif.Recommendation approved.
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4EPO,:iTS OF (Cont,d)
February 11th, Recommending approval of the application of Mr.Walter H. Trumbull, Jr., for permission to serveat the same time as member of the firm of privatebankers of Kidder, Peabody & Company, Boston,Mass., as director of the National Shawmut Bank,Boston, Mass., and as director of the KidderPeabody icceptance Corporation, Boston, Mass.
Aecommendation approved.2ebruary 11th, .,;ecommending approval of the application of Mr.
John R. Chapin for permission to serve at the same
time as member of the firm of private bankers ofKidder, Peabody & Company, Boston, Mass., as di-rector of the Kidder Peabody kceeptance Corporation,Boston, Mass. and as director of the NationalRockland Bank, Boston, Mass.
Recommendation approved.February 11th, Recommending approval of the application of Mr.
H. K. Langworthy for permission to serve at thesame time as director of the Inter-State NationalBank, Kansas City, Mo., and as director of the
