19230927_Minutes.pdf

meeting of the Federal Reserve Board was held in the office of the

Federal Reserve Board on ,2hursday, September 27th, at 11:15 a.m.

PRESENT: Governor Crissinger

Er. HamlinUr. JamesEr. Cunningham

Mr. Eddy, Executive Secretary

The minutes of the meeting of the Federal Reserve Board held on

September 26th were read and approved, as amended.

Upon motion, two bonds of Mr. W. W. Hoxton as 'Federal Reserve Agent

at the Federal Reserve Bank of Richmond, in the amount of50,000 each,

were approved.

Memorandum dated September 27th, from Er. Herson recommending the

transfer of Mr. Ralph A. Bryans, clerk in the Division of Bank Operations

to the Division of EXamination, without change in salary, effective October

10, 1923.

Approved.

Letter dated Septumber 5th, from the Railway Loan Advisory Committee

Of the Federal Reserve Board, recommending approval of the form of obligation

submitted by the Seaboard Air Line Railway Company for a loan of.06,759,000

(in seven parts the carrier electing at this time to take over the fifth

Part Of the loan in the amount of 450,000), under the provisions of Section

210 of the Transportation Act, 1920, as amended.

Approved.

Letter dated September 24th, from Mr. C. G. Rives, Jr., President of

the Louisiana Bankers' Association, further in reference to the rational Boll

':;eevil Convention to be held in New Orleans under the auspices of that aisoci-

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ation on October 25-26, 1923.

Upon motion, it was voted that a copy of Mr. Rivet'

letter of August 18th be sent to those Federal Reserve

banks to which a copy was not sent on September 20th.

A

Letter dated September 24th, from the Federal Reserve /Agent at Dallas,

with regard to the acceptance of rediscounts from a state member bank during

the six months following the date of the filing of its notice of intention

to Withdraw from membership.

Referred to the Law Committee for ruling.

the Special Committee appointed at the meeting yesterday reported on

the matter referred to it, namely, the preparation of'a form of resolution

to be'adopted by the Federal Reserve Board to tne effect that debentures is-

Sued by Federal Intermediate Credit banks are a proper investment for Federal

Reserve bank funds.

After discussion, the adoption of a resolution as

follows was moved and carried:

"WHEREAS, the Federal Reserve Board has been requested

to express an opinion on the question of whether or not Federal

Reserve banks may purchase the debentures of Federal Intermedi-

at,e Credit banks isthied under the terms of the Agricultural Cred-

its Act of liarch 4, 1923,

"BE 12 RESOLVED, therefore, that the Federal Reserve banks

are authorized in their discretion to purchase the debentures

of Federal Intermediate Credit banks issue„A in accordance with

the terms of the Agricultural Credits Act of 1923, provided such

debentures have a maturity at the time of purchase not in excess

of six months.

In accordance with action taken at the meeting on September 14th, the Law

Committee submitted draft of a proposed preliminary reply to the letter of

September 6th, from the Chairman of the Congressional Joint Committee of In-

quiry on Membership in the Federal Reserve System in which the Board was ad-

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vised that hearings by the Comnittee 1,q1.1 begin on October 2, 1923, and was

requested to have representatives appear before the Committee on that date.

Approved.

The Governor stated that the term of Mr. James, as a member of the

Illteoutive Comittee, would expire automatically on September 30th, and that

in regular course Mr. Cunningham, the next rotating member of the Board, will

succeed Mr. James fo'r a term expiring December 31, 1923.

At this point, Governor McKinney of the Federal Reserve Bank of Dallas

entered the room and explained to the Board the method of handling cotton bill

of lading drafts in the Eleventh Federal Reserve District and the reasons which

actuated the Federal Reserve Bank of Dallas in recor2nending approval of appli-

clations of certain member barks in that District for permission to rediscount

such bills 'hen endorsed by or emanating from non-member banks.

RZ'ORPS OF S2ArDIrG CO:L1122E1' :

Dated September 26th, Recommending changes in s took at Federal Reserve

27th, banks, as set forth in the Auxiliary Minute Book

of this date.Approved.

Dated September 27th, Recommending action on applications for fiduciary

powers as set -forth in the Auxiliary Minute Book

of this date. *Approved.

Dated September 27th, Recommending refusal of the applic.Ation of Mr. W. P.

',/eber to serve at the same time as director of the

Calcasieu National Bank of Southwest Louisiana, as

director and Vice President of the F'rst National

Bank and as d eator and Vice Presjdent of the Lake

Charles ,rus and Savings Bank, t if Lake Charles,

0isiana.

e meeting adjourn,

P 0 111 ILLarkdimAIP likecutive Secreta y.

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