19300606_Minutes.pdf

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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 Friday, June 6,

4930 at 12:30 p.m.

PRESENT: Vice Governer PlattMr. JamesEr. CunninghamMr. ,IcClelland, Asst. Secretary

Mr. Platt reported that under the authority granted the Executive Of-

ficer of the Board at the meeting on 7:7_a_y 1st, he had approved the action

taken -by the Board of Directors of the Federal Reserve Bank of Cleveland

today to establish a rediscount rate of 3 1/25 on all classes of paper of

all maturities, effective tomorrow, June 7.

Letter dated June 3rd from the Secretary of the Federal Reserve Bank of

Kansas City, advising of the establishment on that date of the following rates

for Purchases of bankers acceptances:

1 to 4!i days - 2 3A%46 to 120 days - 2 1/25121 to 180 days - 3%

without objection, noted with approval.

Telegrams dated June 4th and 5th from Deputy Governor Kenzel of the

Federal Reserve Bank of New York, advising of reductions of 1/8% in rates of

bill dealers to 2 1/15 bid, 2 05 asked on maturities up to 90 days, 2 3/85

bid, 2 1/45 asked on four months' bills and 2 1/25 bid, 2 3/85 asked on five

Irld six months' maturities, with endorsed bills 1M less.

Noted.

Telegrams dated June 5th from the Deputy Governor of the Federal Reserve

krik: of Boston, from the Deputy Governor of the Federal Reserve Bank of New

York and the Secretary of the Federal Reserve Bank of Uinneapolis, advising

Of the establishment of the following rates for Purchases of bankers accept-

(111Ces:

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1 to 90 days - 2 1/4%91 to 120 days - 2 3/82121 to 180 days - 2 3/4%Repurchase - 2 3/8%

Bank

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Without objection, noted with approval.

Telegrams dated June 5th from the Chairman of the Federal Reserve

of Chicago and the Governor of the Federal Reserve Bank of St. Louis,

advising of the establishment of the following schedule of rates for pur-

chases of bankers acceptances:

1 to 90 days - 2 1/4%91 to 120 days - 2 3/8%121 to 180 days - 2 3/4%

Without objection, noted with approval.

Telegram dated June 5th from the Chairman of the Federal Reserve Bank

Of San Francisco, advising that the board of directors on that date made

nc change in the discount rate of the bank but approved the following sched-

ule of rates for purchases of bankers acceptances:

1 to 90 days - 2 1/4591 to 120 days - 2 3/8%121 to 180 days -2 3/4%Repurchase -2 3/8%

Without objection, noted with approval.

Telegram dated June 5th from the Chairman of the Federal Reserve Bank

°I' Richmond, advising of the establishment of the following rates for mu'-

of bankers acceptances:

1 to 90 days91 to 120 days121 to 180 days

- 2- 2- 2

3/'8%1/2%7,*

Without objection, noted with approval.

Telegram dated June 4th from the Chairman of the Federal Reserve Bank

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of Boston and letter dated June 5th from the Secretary of the Federal

Reserve Bank of New York, advising that their boards of directors at

meetings on the dates stated made no changes in the bank's existing

schedules of rates of discount and purchase.

Mthout objection, noted with approval.

Reports of Committee on Salaries and Expenditures on lists submitted

by the Federal Reserve Banks of Boston, Philadelphia and Minneapolis of em-

Ployees for whom the directors of those banks authorized leaves of absence

with pay, on account of illness, during the month of May, where the total

of such absences since January 1, 1930 has exceeded thirty days; the Board's

Committee recommending approval of the salary payments involved.

Approved.

Letter dated June 5th from the Chairman of the Federal Reserve Bank of

New York, advising that the board of directors of that bank have granted a

leave of absence of two weeks to Mr. H. S. Downs, Assistant Federal Reserve

Agent and a leave of absence of one week to Er. I. W. 1mters, Manager of the

Cheek Department, both with full salary, in addition to their regular vaca-

tions of one month; the Board's Committee recommending approval of the salary

Payments involved in the action of the New York directors.

Approved.

Telegram dated June 5th from the Federal Reserve Agent at Minneapolis,

requesting permission to make a credit investigation of a State member bank

it South St. Paul, Minn., without cost, at the time it is under examination

by State authorities.

Upon recommendation of the Committee on atm-inatiors, the permission requested was granted.

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Bond in the amount of $100,000, executed under date of June 2, 1930,

by Mr. John S. Wood as Federal Reserve Agent at the Federal Reserve Bank of

St. Louis,

Approved.

Letter dated June 4th from Deputy Governor Burgess of the Federal Re-

serve Bank of New York, reviewing conditions and operations in the bill

and Government securities markets during the week ending on that date.

Noted.

Memorandum from Counsel dated June 4th with regard to letter dated

June 2nd from the Governor of the Federal Reserve Bank of Atlanta, trans-

mitting copy of comnunication addressed to the Secretary of the Treasury of

Cuba, setting forth Governor Black's understanding of the results of a con-

ference on Eay 31st relative to the question's raised by the Cuban Government

regarding taxation of the Havana Agency.

Noted.

Memorandum dated June 3rd from Counsel, submitting draft of reply to

an inquiry made by the Federal Reserve Agent at Philadelphia as to whether

the Pennsylvania Company for Insurances on Lives and Granting Annuities of

Philadelphia, Fa" recently formed through consolidation of the former

Pennsylvania Company and the Colonial Trust Company of Philadelphia, is sub-

ject to the conditions of membership imposed by the Board on the old Penn-

8Ylvania Company or those imposed on the Colonial Trust Company; the proposed

l'ePlY stating that according to the act under which the consolidation was

effected, the consolidated institution succeeds to all of the property, rights,

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Privileges and franchises of the constituent institutions and becomes

subject to the duties and liabilities of both, wherefore, the Board con-

siders that the consolidated institution is subject to all of the condi-

tions of membership to which each of the constituent institutions was sub-

ject when they consolidated.

Upon motion, the letter submitted by Counselwas approved and ordered transmitted.

RtPORTS OF STANDING COMLaTTEES:

Dated, June 5th, Recommending changes in stock at Federal Reserve banks asset forth in the Auxiliary Minute Book of this date.

Recommendations approved.Dated, June 4th, Recommending action on applications for fiduciary powers

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

Dated, June 3rd, Recommending approval of the application of Mr. F. O. Hale

for permission to serve at the same time as director of theHarris Trust Savings Bank of Chicago, Ill., as directorof the Terminal National Bank of Chicago, Ill., and as di-rector of the Madison-Kedzie Trust & Savings Bank ofChicago, Ill.

Dated,

Dated,

Dated,

Dated,

Approved.June 3rd, Recommending approval of the application of Mt. Charles L.

Campbell for permission to serve at the same time as di-rector of the City Bank & Trust Company of Hartford, Conn.,and as director of the Waterbury National Bank of Viaterbury,Conn.

Approved.June 3rd, Recommending approval of the application of Mr. L. B.

Kuppenheimer for permission to serve at the same time asdirector of The Terminal National Bank of Chicago, Ill.,and as director of the Madison-Kedzie Trust (3: SavingsBank of Chicago,

Approved.June 4th, Recommending approval of the application of Mr, Wm. M.

Potts for permission to serve at the same time as di-rector of the Philadelphia National Bank of sPhi]adelphia,Pa., and as director of the Fidelity-Philadelphia TrustCompany, Philadelphia, Pa.

Approved.June 4th, Recommending approval of the application of Mr. John C.

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

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Approved:

rector of the Real Estate-Land Title & Trust Company,Philadelphia, Pa., as director of the PhiladelphiaNational Bank of Philadelphia, Fa., and as directorof The Chase National Bank of the City of New York, N. Y.

Approved.

The meeting adjourned at one o'clock.

Vice Governor

wAssistant Secretar

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