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A meeting of the Executive Committee of the Federal aeserve Board was

held In the office of the Federal eserve Board on Wednesday, October 24, 1926

at 11:30 a,m.

The

PiESENT: Governor YoungMr. PlattMr. MillerMr. Cunningham

Mr. Eddy, Secretary

Mr. McClelland, Asst. Secretary

Governor reported a telephone conversation with the 2„cting. Chairman

°f the Open Market investment Committee during which he advised that the 0:overn-

Illent 13011(1 market is improving and gradual sales have been made of ab.out y24,000,000"

" securities which had been taken over from foreign correspondents with the re-

al-lit that by the end of the present week the System account probably will be back

to thefigure at which it stood at the end of August. The Acting Chairman also

tatea that if an easy money situation continues for any length of time requests

Wj1' Probably be received from other foreign corresrondents for the liquidation

of their security holdings but that it is believed the market at this time will

absorb them.

Letter dated October 18th from the Secretary of the Federal Reserve Bank

Of Ilew York, telegram dated October 16th from the Chairman of the Federal aes-

Bank Of Richmond, telegram dated October 17th from the Chairman of the

l'eclerel Reserve Bank of St. Louis, telegram dated October 20th from the Chair-

Of the Federal 2,oserve Bank of Minneapolis, and telegram dated October 18th

trorathe Chairman of the Federal Reserve Bank of San

Francisco, all advising

thattheir boards of iirectors at meetings on the dates stated

made. no changes

thR 1,-ankst existing schedules of rates of discount and

purchase.

Without objection, noted with approval.

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Letter dated October 16th from the 1..ssistant Federal Reserve Agent at

Dallas, advising that the board of directors, effective that date, established

the following schedule of minimum rates for purchases of acceptances:

Bankers:

1 to 90 days 4 3/8

91 to 120 days 4 5/8

121 to 180 days 4 7/8'

Repurchase 4 1/4)

Trade Bills 5;`,2

Without objection, noted with approval.

rIemorandum dated October 22nd from the Chief Examiner, recommending ac-

ceptexice of the resignation of lIr. F. H. Winkler as Assistant Examiner, ef-

fective October 24, 1928 and requesting that permission be granted to fill the

leSelleY at a salary of not to exceed 44 000 per annum.

Upon motion, the resignation was accepted and the

authority requested was granted.

Ileport of Committee on Salaries and Expenditures on letter dated October

leth l'rora the Chairman of the Federal Reserve Bank of Richmond, transmitting

list Of employees for whom the directors

ebse/Ice with pay,

the total of such absences since January

44ra's Committee also recommending approval of the salary payments involved.

Approved.

Letter dated October 17th from the Chairman of the Federal Reserve

13411k °f St. Louis,

the First National

on account of illness,

of that bank approved leaves of

during the month of September, where

1, 1928 has exceeded thirty days; the

advising of the election of Mr. T. D. Scales, President of

Bank, Boonville, Ind., as director of the Louisville Branch,

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the unexpired term of la*. H. B. Jewett, deceased, endinr;. December 31, 1930.

Noted.

2lemorandum dated October 22nd from the A.ssistant Secretary recommending,

ill accordance with the suggestion contained in a letter •aated October 17th from

the 48s1st3nt Federal Aeserve Agent at Dallas, that the Board rescind action taken

it on October 9th in approving an application of the Collin County National

Belik of LicKinney, Texas for six additional shares of stock in the Federal eserve

Bank of Dallas; the suggestion being made in view of the fact that since submis-

81°4 Of the application for additional stock the member bank has reduced its

capital.

Upon motion, the Board's action of October 9th was

rescinded.

laemorandum from Counsel dated October 19th, submitting bill from Honorable

Newton n- Baker in the amount of cA0,065.09, addressed to the Federal Reserve

4 ,°4 Chicago, covering his fee and expenses in the case of the Neoga National

13arik -v. Federal Reserve Bank of Chicago; Counsel recommending that the bill be

143r°ved and transmitted to the Federal Reserve Bank of Chicago,with the sug-

estion that if it is approved by the directors of that bank payment be made

clirect to 1.1r. Baker and that the Board be advised of the fact in order that it

ItIct arrange for the other Federal Reserve banks to reimburse Chicago for their

ate shares.

Colule

Upon motion, 1.ir. Baker's statement was approved and

a letter to the Federal Reserve Bank of Chicago submitted

by Counsel along the lines of his memorandum was ordered

transmitted.

Letter dated October 16th from the Secretary of the National Foreign Trade

ill advsing that the sixteenth National Foreign Trade Convention will take

Dlace .- in Baltimore on April 17th, 18th and 19th, 1929;. the letter requesting, in

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es" the Board has not already fixed dates for the Spring Conference of Gov-

that the date of the National Foreign Trade Convention be kept in mind

-04:der that the Governors who may wish to attend the Convention will be free

to do so.

Noted.

Letter dated October 16th from the President of the Foreign Trade Securi-

ties C°mPany, Ltd., requesting that the Board extend for an additional period

°f thirty days its approval and reservation of the title "Foreign Discount and

estment Trust" for the corporation proposed to be organized under Section 25

(a) Of the Federal Reserve Act.

Upon motion, the reservation was further extended

for a period of thirty days from October 20th.

Memorandum from Counsel dated October 22nd, recommending that there be

1°41311shed in the forthcoming issue of the Federal Reserve Bulletin, unless

there is some imperative reason why it should not be made public, the amend-

to sub-division (d) of Section VI of the Board's Regulation A, adopted

ell 41/gust 30th, pertaining to rediscounts for Federal Intermediate Credit

BsIlks and modifying certain restrictions thereon.

Upon motion, publication of the amendment was

approved.

llemorandum from Counsel dated October 20th, recommending publication in

th - forthcoming issue of the Federal Reserve Bulletin of the Board's recent

regarding eligibility of paper rediscounted for Federal Intermediate

QreAtAit banks as collateral security for Federal Reserve notes

and also a state-

4101It regarding the recent amendment to Regulation A, adopted on October 9th,

()11 th-8 subject of eligibility of bankers acceptances

against warehouse receipts.

Approved.

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Letter dated October 23rd from the Deputy Governor of the Federal Res-

Ile Bank of New York, with reference to a recent increase in the Federal Res-

er7e Bank's account with the Bank of France.

Ordered circulated.

Letter dated October 23rd from the Deputy Governor of the Federal Reserve

BaticOf New York, advising that all participants in the bank of issue

credit

atrallgeMent with the Bank of Poland, which expired on October 13, 1928, have

"Id to the renewal of the arrangement for one year from that date; the Deputy

4eilernor transmitting for the Board's files a copy of the renewal agreement be-

tween the Bank of Poland and the Federal Reserve Bank of New York.

Ordered circulated.

At this point, Mr. R. L. Austin, Federal Reserve Agent at Philadelphia

Zessra. Charles S. Calwell and H. A. Loeb, representing the Philadelphia

Clea„'1.110€ House Association, entered the room, and the Clearing

House representa-

tivesdiscussed with the Board applications which had been filed by

several out-

g member banks in Philadelphia for a reduction in their reserve requirements

fl'°111 107 to 7% of demand deposits. They advised of a resolution adopted by the

Clear.ing House Committee deeming it unwise and undesirable to

make any change in

thereserve requirements of outlying banks, and

pointed out that the banks fil-

it thA- applications and others which might be expected to

file similar applica-

tierisare now carrying reserves of only 6.1/0 of aggregate net

deposits which,

th- Opinion of the Olearing House Committee, should

not be reduced. They

„e4tim-"ieo. that were the applications approved by the Board the

average reserves

Of thA- outlying banks against aggregate net deposits would be but 4.7. They

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4180vo4nted out that certain of the applicant banks are not located in what,

14 the opinion of the Clearing House Committee, can properly be classed as

°Utlyingdistricts of Philadelphia.

At the conclusion of the discussion, the Governor in-

formed the representatives of the Clearing House that their

statements will be given due consideration by the Board in

acting upon the applications, and further, that before action

is taken the applicants themselves will be afforded an apportunity

to be heard. He pointed out that from the viewpoint of the Fed-

eral Reserve Board the question of approving reserve reductions

Is a national rather than a local one and stated the policy

Which has heretofore been followed by the Board.

111'°aTS OF 3TANDING 0:11L2TEES :

Bated, October 19th, Recommending changes in stock at Federal Reserve banks

20th, as set forth in the Auxiliary Minute Book of this date.

Bated, October

22nd, Recommendations approved.

23rd, Recommending action on applications for fiduciary powers

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

Recommendations approved.Dated, October 16th, Recommending approval of the application of Mr. Hup:h H.

*Jard for permission to serve at the same time as director

of the Marcus Hook National Bank, Marcus Hook, Pa., and

as director of the Delaware County Trust Company, Chester,

Pa.

Dated,

Dated,

i)ated,

Recommendation approved.

October 17th, Recommending approval of the application of Mr. Jacob

France for permission to serve at the same time as di-

rector of the Commercial National Bank and Trust Company,

New York, E. Y., as director of the Equitable Trust

Company of Baltimore, Md., and as director of the Mary-

land-Virginia Joint Stock Land Bank, Baltimore, Md. .

Recommendation approved.

October 17th, Recommending approval of the application of Mr. George R.

Hann for permission to serve at the same time as director

of the Commercial rational Bank and Trust Company of New

York, N. Y., and as director of the Murray Hill Trust

Company, New York, N. Y.Recommendation approved,

October 19th, Recommending approval of the application of 1:r. J. Milton

Lutz for permission to serve at the same time as officer

and director of the First National Bank of Clifton Heights,

Pa., as director of the Lansdowne Bank and Trust Company,

Lansdowne, Pa., and as officer and director of the Bankers

Trust Company, Philadelphia, Pa.

Recommendation approved.

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itT,pORTS OF STANDING C01:MITTEES: (Cont,d)

Dated,

Dated,

Dated,

Datea,

Datea,

Dated.,

13atea,

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October 19th, Recommending approval of the application of 11r. E. E.

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

ficer and director of the First National Bank, Clifton

Heights, Pa., and as officer and director of the Lans-

downe Bank and Trust Company, Lansdowne, Pa.

Recommendation approved.

October 19th, Recommending approval of the application of 1:r. John

A. 1:cKenna for permission to serve at the same time

as director of the First National Bank of Clifton Heights,

Pa., and as director of the Lansdowne Bank and Trust

Company, Lansdowne, Pa.

• Recommendation approved.

October 19th, Recommending approval of the arplication of LI'. Nelson

Kershaw for permission to serve at the same time as

officer and director of the First National Bank of Clifton

Heights, Pa., and as director of the Lansdowne Bank and

Trust Company, Lansdowne, Pa.

Recommendation approved.

October 19th, Recommending approval of the application of 1Ir. Harry

Bloodsworth for permission to serve at the same time

as director of the First National Bank of Clifton Heights,

Pa., and as director of the Lansdowne Bank and Trust Company,

Lansdowne, Pa.Hecommendation approved.

October 19th, Recommending approval of the application of 1:r. Oscar L.

Auf der Heide for permission to serve at the same time

as director of the First National Bank of Jest New York,

N. J., as director of the Hamilton National Bank of Wee-

hawken, N. J., and as director of the Liberty National

Bank, Guttenberg, N. J.

Recommendation approved.

October 19th, Recommending approval of the application of Lr. Liogers

Caldwell for permission to serve at the same time as di-

rector of the Commercial National Bank and Trust Company

of New York, N. Y., as director of the Fourth and First

National Bank, Nashville, Tenn., and as director of the

Holston-Union National Bank, Knoxville, Tenn.

Recommendation approved.

October 19th, Recommending approval Of the application of 1:r.

Wrigley, Jr., for permission to serve at the same time as

director of the Commercial National Bank and Trust Company,

New York, N. Y., as director of the First National Bsnk,

Chicago, Ill., and as director of the Boulevard Eridge

3ank, Chicago, Ill.Recommendation approved.

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RIIPORTS OF STANDING COL-MITTEES: Wont d)

Dated,

Dated,

October Mad, Recommending approval of the application of Mr. Robert

Allerton for permission to serve at the same time as

director of the First National Bank, Monticello, Ill.,

as director of the Illinois Joint Stock Land Bank,

Monticello, Ill., and as director of the First National

Bank, Chicago, Ill.Recommendation approved.

October 20th, Recommending approval of the application of Mr. Y. J.

Scanlon for permission to serve at the same time as

director of the First National Bank, Minneapolis,

Minn., as director of the Lumbermens National Bank,

Bend, Ore., and as director of the Atlantic National

Bank, Jacksonville, Fla.

AOC ommendat ion approved.

The meeting adjourned at 1:00

APProved:

Secretary,

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