19310210_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 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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2/10/31

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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I/ (Xxecutive AUXILIARY MINUTESCommittee) (February 10, 1931)

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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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