450

X-9064

A meeting of the Chairmen of the I n d u s t r i a l Advisory Committees

was held i n Washington on Tuesday, December 18, 1934 a t 2:00 p . m*

PRESENT: Mr. A. M. Creighton, Boston Mr . • II. Pouch, New York Mr . J . E. But terwor th , P h i l a d e l p h i a Mr. F. A# Smythe, Cleveland Mr. John Sanford, A t l an t a Mr. Max Eps te in , Chicago Mr. W. K. Morris , S t . Louis lor. S. V. Yvood, Minneapolis Mr. W. J . Berkowitz, Kansas Ci ty Mr. Clarence Ousley, Dal las Mr. Ralph H. Burnside, Por t l and Mr• J . S. Walden, J r . , C o n t r o l l e r ,

Federa l Reserve Bank of Richmond Mr. S. F. Gilmore, C o n t r o l l e r , Federa l

Reserve Bank of S t . Louis Mr. Wo M. Hale, Cashier , Federa l Reserve

Bank of San F ranc i s co . Mr. E. L. Smead, Chief , D iv i s ion of Bank

Operations of t he Federa l Reserve Board Mr. S. R. Carpenter , A s s i s t a n t S e c r e t a r y

of the Federal Reserve Board Mr. A. M. Stone, Sec re t a ry t o Mr. Szymczak.

Mr. Sanford moved t h a t the minutes of the meeting of t h e r e p r e -

s e n t a t i v e s of the I n d u s t r i a l Advisory Committees held on September 27,

1934, and the minutes of the supper meeting of the Chairmen of the

I n d u s t r i a l Advisory Committees held a t the Car l ton Hotel on the even-

ing of December 17, 1934 be approved.

Mr. Sanford ' s motion was unanimously c a r r i e d .

Mr. Smythe p resen ted the fo l lowing r e s o l u t i o n which was unanimously

adopted:

"Resolved t h a t inasmuch as paragraph (d) of Sec t ion 13-B of the Federa l Reserve Act as amended e s t a b l i s h e s i n each Federa l Reserve D i s t r i c t an I n d u s t r i a l Advisory Committee of no t l e s s

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

- 2 - X-9064

" than t h r e e or more than f i v e members, and inasmuch as t he Fed-e r a l Reserve Banks r e q u i r e t h e recommendations of a p p l i c a t i o n s f o r loans by a m a j o r i t y of the members of such I n d u s t r i a l Ad-v i s o r y Committees, and inasmuch as i t i s a t t imes imposs ib le to secure t he a t tendance of a m a j o r i t y of the Committee, i t i s d e s i r a b l e t h a t such a c t i o n be au thor ized as w i l l permit the appointment of a l t e r n a t e s i n each Federa l Reserve D i s t r i c t t o serve when and i f the necessa ry m a j o r i t y cannot be p r e s e n t a t any meeting . "

Mr# Morris o f f e r e d the fo l lowing r e s o l u t i o n which, a f t e r some

d i s cus s ion , was adopted, Mr. Epste in vot ing "No.11

"Whereas the i s s u e of Dr. Theodore N. Beckman, Chief Economist i n Charge of Survey, U. S. Department of Commerce dated October 29th, has been brought t o the a t t e n t i o n of the I n d u s t r i a l Advisory Committee, i t i s f e l t t h a t t he Federa l Reserve Board should take a c t i o n when they thought a p p r o p r i a t e t o acquain t the pub l i c wi th the e f f e c t i v e work done by the Federa l Reserve System under the p rov i s ions of Sec t ion 13-B, leav ing i t t o the d i s c r e t i o n of the Federa l Reserve Board as to what a c t i o n they should t a k e . "

Mr. Pouch moved the adopt ion of the fo l lowing r e s o l u t i o n , and

h i s motion was c a r r i e d unanimously.

11 The Committee on P u b l i c i t y recommends t h a t the Federa l Reserve Board be reques ted t o take such s teps as may be neces -sa ry t o ^ive adequate p u b l i c i t y :

l l ) To the work of the Federa l Reserve Banks and the I n d u s t r i a l Advisory Committees i n extending loans i n ac-cordance wi th Sec t ion 13-B of the Federa l Reserve Act; and,

(2) To the o p p o r t u n i t i e s a f f o r d e d by Sec t ion 13-B of the Federa l Reserve Act f o r i n d u s t r i a l and commercial e n t e r -p r i s e s t o i n c r e a s e t h e i r working c a p i t a l upon advantageous terms and f o r banks and o ther f i n a n c i n g i n s t i t u t i o n s t o i n c r e a s e t h e i r earn ing a s s e t s through loans t h a t combine a high degree of s a f e t y and l i q u i d i t y wi th a s u b s t a n t i a l y i e l d .

"The Committee on P u b l i c i t y e s p e c i a l l y has i n mind such a r t i c l e s i n n a t i o n a l , l o c a l , or t r a d e p u b l i c a t i o n s as may be of p a r t i c u l a r i n t e r e s t t o i n d u s t r i a l and commercial concerns and f i n a n c i a l i n s t i t u t i o n s , and a l so such a r t i c l e s as may tend to r e f u t e f a l s e impressions t h a t may be c r e a t e d by c r i t i c s of the Federa l Reserve banks and the I n d u s t r i a l Advisory Committees i n r e l a t i o n t o t h e i r l o a n s - t o - i n d u s t r y a c t i v i t i e s . "

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

4 5 2

- 3 - X-9064

The ques t ion was then r a i s e d as to what, i f any, p u b l i c i t y should

be given t o the meetings of the chairmen of the i n d u s t r i a l adv i so ry

committees i n Washington yes te rday and today, and Mr. Szymczak was i n -

v i t e d i n t o the meeting t o p a r t i c i p a t e i n the d i s c u s s i o n .

At the conclus ion of the d i s c u s s i o n , upon motion by Mr• N o r r i s , t he ques t ion of p u b l i c i t y was r e f e r r e d t o the p u b l i c i t y committee and Mr• Szymczak wi th the unders tanding t h a t a pub l i c s ta tement would be i s sued i n t h e i r d i s c r e t i o n as soon as p o s s i b l e c o n s i s t e n t w i th t he c i rcumstances•

Reference was made t o the supplementary l i s t of t o p i c s suggested

f o r d i s c u s s i o n by members of the i n d u s t r i a l adv i so ry committees, and

i t was agreed t h a t inasmuch as the t o p i c s had been covered l a r g e l y by

the a c t i o n taken a t the meeting yes t e rday evening, no f u r t h e r d i s c u s -

s ion a t t h i s t ime was nece s sa ry . In connect ion wi th the second t o p i c ,

however, Mr. Pouch led a b r i e f d i s cus s ion on border l i n e c a s e s .

Mr. Pouch inqu i red as t o the opinion of the o ther r e p r e s e n t a t i v e s

p r e sen t on the ques t ion whether a l i m i t should be placed by the indus -

t r i a l adv i so ry committees on the amount of the advance recommended i n

any i n d i v i d u a l c a s e . I t was expressed as the genera l consensus t h a t

no l i m i t should be a p p l i e d .

The t h r e e r e s o l u t i o n s r e f e r r e d t o above were read f o r Mr. Szymczak*s

i n f o r m a t i o n .

Mr. Szymczak expressed on behalf of himself and the o the r members

of the Board, t h e i r a p p r e c i a t i o n of the work being done by the i ndus -

t r i a l adv i so ry committees and the s a c r i f i c e s which t hey a re making and

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

4- X-9064

the t ime t hey are spending i n ca r ry ing on t h e work of t h e committees .

He s t r e s s e d the f a c t t h a t t he Board i s very much s a t i s f i e d wi th the

committees * work and i f i t f e e l s any disappointment i n connect ion wi th

the i n d u s t r i a l loan a c t i v i t i e s , i t i s i n the t o t a l amount of loans and

c ommitment s made.

Mr. Norr is s t a t e d t h a t t he Chairmen of the i n d u s t r i a l adv i so ry

committees f e e l t h a t a g rea t dea l of good i s accomplished by t h e i r

meetings i n Washington and he expressed the opinion t h a t the meetings

should be cont inued , p o s s i b l y on a q u a r t e r l y b a s i s a t a t ime mutua l ly

agreeable t o t he Federa l Reserve Board and the chairmen of t he com-

m i t t e e s •

Upon motion by Mr. Ousley, the fo l lowing r e s o l u t i o n was adopted

unanimously:

"We wish t o record our high a p p r e c i a t i o n of t h e informa-t i o n and i n s p i r i n g addresses of Governor Eccles , Messrs . Szymczak, Hamlin, Thomas, Mi l l e r and James of the Federa l .Reserve Board and Comptroller O'Connor, and of the g rac ious c o u r t e s i e s extended t o us by members of t he Federa l Reserve Board S t a f f • We e s p e c i a l l y acknowledge t h e h e l p f u l s e c r e t a r -i a l s e r v i c e of Messrs• Stone and Carpen te r . "

Thereupon the meeting ad journed .

(Signed) J . E. But terwor th Sec re t a ry*

APPROVED:

(Signed) A. M. Creighton , - ~ Chairman.

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