A meeting of the 2ederal Reserve Board was held in the office of the

Federal Reserve Board on Thursday, November 21, 1929 at 12:00 o'clock noon.

PRESENT: Vice Governor PlattMr. Hamlin

Mr. Miller

Mr. James

Mr. CunninghanMr. McClelland, Asst. Secretary

Letter dated November 15th from the Secretary of the Federal Reserve

Bank of Kansas City, advising of the establishment on that date of the follow-

ing schedule of rates for purchases of bankers acceptances:

1 to 120 days121 to 180 days

4 1/4-d4 1/2,

Noted, with arproval.

Letter dated November 15th from the Chairman of the Federal Reserve Bank

of Dallas, advising of the establishment on that date of the following schedule

of rates for purchases of acceptances:

Bankers acceptances:1 to 120 days

121 to 180 days -

RepurchaseTrade acceptances OMR

4 1/4,;4 1/2,;4 1/47;4 1/2:;

Noted, with approval.

Telegram dated November 19th from the Chairman of the Federal Reserve

Bank of San Francisco, advisinr, of the establishment on that date of the follow-

ing schedule of rates for rarchases of bankers acceptances:

1 to 120 days - 4 1//1,;

121 to 180 days - 4 1/2,4

Repurchase * 4 1/4%

Noted, with approval.

Telegrams dated November 20th from the Chairmen of the Federal Reserve

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Banks of Philadelphia and St. Louis, advising that their boards of directors at

meetings on that date made no changes in the banks' existing schedules of rates

Of discount and purchase.

-iithout objection, noted with approval.

Letter dated November 14th from the Deputy Governor of the Federal Reserve

Bank of New York, with regard to open market operations durin . the week ending

November 14th and conditions in the bill and Government securities markets; the

letter advising that purchases were made during the week of .39,150,000 of Gov-

ernments in the market and .15,157,9E0 from the Federal Reserve Bank of Cleveland

and that „i25,000,000 were transferred to System Account on November 7th and

25,000,000 on November 14th, increasing the total in the Account to 122,500,000

and leaving a balance in the nortfolio of the Federal Reserve Bank of New York of

:)111,959,950.

Noted.

Telegrams dated November 18th and 19th from the Denuty Governor of the Fed-

eral Reserve Bank of New York, advising of reductions in dealers rates on ac-

ceptances on those dates, first to a minimum of 3 7/8 on ninety-day endorsed

bills and then to 3 3/4%.

Noted.

Letter dated November 13th from the Governor of the Federal Reserve Bank

of New York, referring to a conference with the Financial Commissioner of the

Japanese Government, during which he was advised that in conjunction with the

Bank of Japan it has been decided very shortly to make an announcement of in-

tention to remove the embargo upon the export of gold from Japan sometime in

January.

Noted.

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Letter dated November 19th from the jecretary of the Open Idarket Investment

Committee transmitting minutes of the meeting of the Committee held in Jashington

on November 12th.

Ordered circulated.

The Assistant Secretary then submitted for the record the following report

made by the Federal Advisory jouncil on November 19th on the topics submitted to

it by the*Soard:

"1. Discount rates, bill rates and open rozket operations.

NO .1.ECCE:ENDAT ION.

944 • Developments in branch, •chain arid group banking with particular

reference to the effects of bank stock ownership by investment

trusts and holding corporations.

.L.,'CGLI:EirDATION: The :ederal Advisory Council recommends

that the Federal Reserve 3oard appoint a committee to

study the merits of the branch banking system as practiced

in this and other countries, (conditions in Canada being

apparently more comnarable with our own) , the group or

chain banking system as developed in this country and else-

where, and the unit banking system of this and other coun-

tries; and further, the effect of ovmership of bank stocks

by investment trusts and holding corporations, in order

that the Federal deserve 3oard may be in possession of ac-

curate and authoritative information on this important

subject.

3. Desirability of liberalizing the requirements of the Federal deserve

Act as to paper eligible for rediscount by Federal reserve banks.

1ECOMENDA2ION: It is the feeling of the Federal Advisory

Council that consideration could well be given to liberal-

izing the provisions of Section 13 of the Federal eserve

Act, pertaining to eligibility of paper, in a manner not

inconsistent with the proper functioning of the Federal _le-

s e rve System.rai: 8. LGAINS2: 3, ALTEANATE, FOR, NO2 70TING.

4. Desirability of changing distribution of earnings of Federal reserve

banks as proposed in J. 5723, introduced by Senator Glass.

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"RECO2UFNDATION: The Federal Advisory Council approves

of the provisions of Senate Bill 5723, relating to the

distribution of earnings of Federal reserve banks, withan amendment providing that the earnings of all twelveFederal reserve banks, accruing: thereunder to memberbanks, shall be pooled and divided among all member banks

in proportion to their respective capital contributionsand their average annual reserve requirements.FOR: 6. AGAINST: 5. ALTERNATE, FOR, NOT VOTLNG."

Noted, and action deferred.

The Assistant Secretary then referred to the Governor's previous informal

advice to the Board of the desire of the lichita delegation, which is to ap-

pear before the Board regarding the establishment of a Branch Federal Reserve

Bank at .;;ichita, to postpone the hearing scheduled for November 25th. He

presented telegrams from the Governor of the Federal Reserve Bank of Kansas

City and Ni'. George H. Hamilton, President of the Fourth National Bank of

Wichita, advising that December 16th will be a satisfactory date for holding

the hearing.

Upon motion, the hearing was postponed untilthat date.

Letter dated November 11th from Mrs. Walter L. Eddy, expressing apprecia-

tion of the Board's action an that date in votin7 to pay Mr. Eddy's full sal-

ary up to May 31st, the termination of his present leave of absence on account

of illness.

Noted.

Report of Committee on Examinations on letter dated November 8th from the

Assistant Secretary of the Federal Reserve Bank of New York, transmittin7 and

recommending approval of an application of the International Germanic Trust

Company, New York, N. Y., for permission under Section 13 of the Federal

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Reserve Act to accept drafts and bills of exchange drawn upon it up to 100,;

of its paid-up capital and surplus; the Board's Committee also recommending

approval.

Approved.

Memorandum from Counsel dated November 8th, submitting,in accordance with

the action of the Board at its meeting an October 4th, a further report re-

. garding the proposed cancellation of the agreement entered into with the Board,

under 3ection 25 of the Federal Reserve Act, by the First National Corporation

of Boston.

Ordered circulated.

:EP° :TS OF STANDUTG

Dated, November 19th, Liecammending changes in stock at Federal 2eserve banks

21st, as set forth in the Auxiliary Minute Book of this date.

Recommendations approved.

Dated, November 12th, Recommending action on applications for fiduciary novers

13th, as set forth in the Auxiliary Linute 300k of this date.

18th, 'Recommendations approved.

19th,Dated, November 18th, Recommending aP)proval of the application of Mr. E. 7.

Jacob for permission to serve at the same time as of-

ficer of the Exchange National Bank of l'ulsa, Okla.,

and as director and officer of the First National Bank

of Nozrata, Okla.Approved.

Dated, November 20th, Recommending approval of the application of Mr. C.

Stanley Mitchell for permission to serve at the same

time as director of the Central National Bank of Yonkers,

E. Y., as chairman of the board of directors of the

Bank of United States, New York City and as director

of the Sharon National Bank of Sharon, Conn.Approved.

The meeting adjourned at on

Assistant Secretary.

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