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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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