Transcript
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A meeting of the Executive Committee of the Federal Reserve Board
was held in the office of the Federal Reserve Board on Tuesday, February 10,
1931, at 11:20 a.
PRESENT: Governor MeyerMr. HamlinMr. MillerMr. JamesNr. McClelland, Assistant Secretary.
Mr. James, as Chairman of the Committee on Salaries and Expenditures,
stated that in checking the annual salary list of the employees of the Federal
Reserve Bank of New York, it was found that the list did not conform in all
l'sapects with the personnel classification plan of the bankonfile with the
8c)srd, and that upon investigation it was ascertained that the differences were
due to the failure of the New York:bank to submit for approval of the Board
certain changes made during the year in its personnel classification plan.
lie also presented a letter dated February 4th from Deputy Governor Gilbart
ftloressing regret at the failure of the bank through inadvertence to submit
these changes to the Board before they were made effective and requesting formal
4PProval of the changes listed. Mr. Tames stated that he was unwilling, on the .
basis of the explanation given by the New York bank, to recommend approval of
the bank '3 request, and he submitted the matter for the consideration of the
b°ard.
After some discussion, Mr. Gilbart'sletter was ordered circulated among themembers before presentation to the Boardfor action.
The Assistant Secretary then presented various communications and re-
Which were considered by the Board, and acted upon as follows:
Telegram dated February 6th fram Deputy Governor Kenzel of the
dcral Reserve Dank of New York, advising that bill dealers on that date made
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a further reduction of 1/870 in their bid and asked rates on acceptances of all
taturities; the buying rates in effect at the New York bank remaining
Unchanged.
Noted.
Telegrams dated February 9th from the Secretary of the Federal Re—
serve Bank of Minneapolis and February 7th from the Chairman of the Federal
Reserve Bank of Dallas, advising that at meetings of their boards of
directors on the dates stated, no changes were made in the banks' existing
schedules of rates of discount and purchase.
Without objection, noted withapproval.
Reports of Committee on Salaries and Expenditures on lists submitted
by the Federal Reserve Banks of Cleveland, Kansas City and Dallas, of
employees who were granted leaves of absence with pay, on account of illness,
dllring the month of January, where the total of such absences since January
11 1931 has exceeded thirty days; the Board's Committee recommending approval
the salary payments involved.
Approved.
Memorandum from Counsel dated February 9th on letter dated February
ath from Deputy Governor Dillard of the Federal Reserve Bank of Chicago,
4clvising that in accordance with the suggestion contained in the Board's
letter of January 19th, the bank has placed an order for a workmen's
compensation insurance policy covering the leased wire telegraph operators
located in Washington, to be issued to the Federal Reserve Bank of Chicago
4401/or the Federal Reserve Board as their interests may appear, and the cost
to be absorbed by the Federal Reserve Bank of Chicago.
Noted with approval.
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Report of Executive Committee on memorandum dated January 30th from
the Comptroller of the Currency, recommending approval of the application
Of the Flat Top National Bank of Bluefield, W. Va., for permission to
reduce its capital stock fram ,3250,000 to :,;150,000, on condition that not
less than :.;i200,000 of estimated losses and doubtful assets be removed from
the bank, .)100,000 by the reduction in capital, ;350,000 by a reduction in
84rplus, and 450,000 by the purchase of doubtful assets by the shareholders
Of the bank.
Upon motion, the application wasapproved subject to the condition recommended
by the Board's Committee.
Letter dated February 7th from the Undersecretary of the Treasury,
4dvising that the rate of interest to be paid by depositaries on war loan
clePoeit accounts has been reduced from 1 1/25 to 1% per annum, effective
Pebruary 16, 1931.
Noted.
The Governor then reported that in a telephone conversation this
Morning, Deputy Governor Burgess of the Federal Reserve Bank of New
York reported that the bank has sold ;500,000 of the sterling bills held
for System account, and that he had advised la.. Burgess that it was his
114derstanding that the System's holdings of sterling bills will be disposed
Or, if possible, during February and March in accordance with the plan
Dreviously agreed upon.
The Governor also reported that in response to a request from Senator
4less, he had today advised the Senator by letter that there is every '
l'eason to believe that the Federal Reserve banks in the drow.ht stricken
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areas are in a position to make advances to meet all probable demands upon
them from their member banks; the letter setting forth the reserve positions
and excess gold reserves held by the Federal Reserve banks of Richmond, Atlanta,
Chicago, St. Louis, Kansas City and Dallas on 2ebruary 4th, and stating that
on the basis of these figures, these banks could extend approximately
A91,250,000,000 of additional Federal Reserve credit.
REPORTS OF STANDING COMIT=S:
Dated, February 9th Recommending changes in stock at Federal Reserve banks,
as set forth in the Auxiliary Minute Book of this date.
Recommendations approved.
Dated, February 7th Recommending approval of the application of Mr. G.
Albert Niles, for permission to serve at the same
time as a director of the Utica Trust & Deposit
Co., of Utica, N. Y., and as a director and officer
of The Oneida National Bank and Trust Company of
Utica.Approved.
Dated, February 9th Recommending approval of the application of
Wright, for permission to serve at the same
as a director of the First National Bank of
Ill., and as a director of the Upper Avenue
Chicago, Ill.Approved.
The meeting adjourned at 11:50 a. mu
Mr. WarrentimeChicago,Bank of
Assistant Secretary
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Reports of Standing Committee dated February 9th, recommending changesin stock at Federal Reserve Banks, approved as follows:
A Dlications for SUARLNDER of Stock: Distric No. 7.
Shares t
4aaklin National Bank, Franklin, Ind. (V.L.Abs.by Citizens National Bank, Farmers Trust Co.,all of Franklin, Ind.) 45
rirst National Bank, Rock Rapids, Iawa,(Insolvent) 84
District No. 8.Pirst National Bank, Brookfield, Mo. (Insolvent) 66Peoples Savings Bank & Trust Co., Halls, Tenn. (V.L.
Abs. by Bank of Halls.) S 21rirst-Columbus National Bank, Columbus, Miss. (Cons.
Columbus National Bank No. 12822, with the abovebank ) 60
District No. 9.
liational Bank of Adrian, Adrian, Minn. (V.L.Abs. by
11 Adrian State Bank) 18armors National Bank, Glenwood City, Wisc. (Insolvent) 19
District No. 10.Pirst National Bank, Harper, Kans.Oecrease in capital) 15
l istrict No. 11.hrris National Bank, Ferris, Tex. (V.L.Abs. by Farmers
& Merchants State Bank of Ferris) 51rirst State Bank of Savoy, Tex. (V.L.Abs. by First
National Bank, Bonham, Tex.) 21 Total
Proved:
R(,/w,igri
129
147
37
15
72400
Assistant Secretary.
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