19281025_Minutes.pdf

222

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

l'ederal Reserve Board on Thursday, October 25, 1928 at 12:00 o'clock noon.

The

17th were

The

24th Were

PRE3ENT: Governor Young'J.:xi. PlattMr. MillerMr. JamesMr. Cunningham

Mr. Eddy, Secretary11r. McClelland, lisst. Secretary

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

read and approved.

minutes of the meeting of the Executive Committee held on October

read and upon motion the actions recorded therein were ratified.

Telegram dated October 24th from the Federal Reserve Agent at Boston,

acivising that the board of directors at a meeting on that date made no change

the bank's eisting schedule of rates of discount and purchase.

Without objection, noted with approval.

Memorandum dated October 24th from the Assistant Chief of the Division

Of Bank Operations, transmitting statements of expenditures by the Federal

lieeerve banks for educational and welfare work, etc. during the month of

September and for the nine months' period ending September 29th.

Ordered circulated.

Letter dated October 22nd from the Federal Reserve Agent at Philadelphia,

with reference to a condition of membership imposed upon the Lycoming Trust

C°111PanY, Villiamsport, Pa. that it should dispose of certain real estate by

aell4ery 1, 1928; the Agent stating that because of the condition of the real

estate market in Williamsport the institution has been able to dispose of but

°Ile Of the five properties referred to in the condition of membership, and

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

223

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l'e°°11141ending that the conditioL be modified by extending the time limit thereof

to jillY l, 1929, it being understood that if satisfactory sales can not be ar-

ranged by the early part of 1929 it is the intention of the management to organ-

ize a h°1ding company for the purpose of taking over the real estate and certain

other 4Investments held by the trust company.

Upon motion, it was voted to extend the time limit

of the condition of membership ref3rred to until July

1, 1929.

Letter dated October 22nd from the Federal deserve ligent at Boston, ad-

g that the thode Island Hospital Trust Company of Providence has not furn-

ish0.1the trust department balance sheet requested in connection with the Board's

call for reports of condition of state member banks as of October 3, 1928;-the

statinf- that it understands the larger trust companies in New York

are liot furnishinc, the fiRures and that his bank is taking the same stand, be-

lie/ring them to be confidential.

The Governor informed the Board that he authorized inclusion in the Board's

.L'eport of the request for trust department figures inasmuch as the Jomptrol-

lerthe Ourrency was requesting the information from national banks and it

a1,-e.L1ved that figures for all member banks, both state and national,

would

v luable. He stated that the New York trust companies have advised that the

i/IforMation could only be furnished at considerable expense because of the fact

that their records are not so kept as to facilitate its compilation. He stated

he - hal"loved the present request should be waived and notice sent out in

advance

Of

he Ilext call stating that the information will be required.

lit the suggestion of L'ir. James, it was voted to re-

quest Counsel for an opinion as to the Board's right to


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require the information referred to from state member

banks, and if the Board's authority is upheld by Counsel

to submit the question of securing the data in the next

call to the forthcoming Conference of Federal deserve

Agents.

224

Letter dated October 24th from the Deputy Governor of the Federal deserve

Ballk 0? New York, with reference to developments in the program for doumanian

atEtbilization and the progress of arrangements for a central bank credit to the

Ratio

the.bederal deserve Bank of New York; the Deputy Governor transmitting copy

of a ,.letter being addressed to all other Federal deserve banks advising that

When arrangements are concluded they will be offered a participatio

n in the

eredit on the usual basis.

Ordered circulated.

The Governor then submitted draft of a letter to the Deputy Governor

nal Bank of Aumania, in which the Board has authorized participation by

or the m,- ,=ederal aeserve.Bank of New York, prepared in accordance with the

aetia,On of the Board at its meeting on October 17th, requesting clarification

et th0 last paragraph of his letter of October 10th regarding a p

robable in-

erea. .°e ln the bill holdings of the System and the effect thereof on mon

ey

4tee,

Upon motion, the letter submitted by the Governor

was approved.

The Governor then submitted a memorandum dictated over the telephone

bY 14'. Hamlin, with reference

13 '13cleral Aaserve

' -8achusetts

4 IntlInc3randum from Counsel

banks

to the eligibility for rediscount or purchase

of acceptarces

business trust.

issued by the Shawmut Associates, a

In this connection, the Secretary presented

on the question, which was raised in a letter ad-


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225

e'ased to the Board by the Governor of the Federal Reserve Bank of Boston

1144er date of October 6th.

Upon motion, it was voted that action on the

question be deferred pending 1,1x. Hamlin's return

to Washington.

Tele gram dated October 25th from the Governor of the Federal Reserve Bank

"Iltlenta, with reference to a proposal of that bank to rediscount for the

Pedera4

1Intermediate Credit Bank of Columbia, S. C., eligible paper secured

bycommodities up to 4,000,000; the telegram stating that the reserves of

Federal Reserve Bank of Atlanta at this time are slightly below 50;‘), and,

"re, the approval of the Board to the rediscount is necessary,under Regu-

lation

e

Upon motion, it was voted to approve of the Federal

Reserve Bank of Atlanta rediscounting for the Federal

Intermediate Credit Bank of Columbia, S. C. up to 42,000,000.

ItIL OF STANDING CO=ITTEES:

1)ated,October 25th, Recommending a change in stock at a Federal Reserve

Bank as set forth in the Auxiliary Minute Book of

this date.

Ntea, Recommendatim approved.

October 24th, Recommending action on application for fiduciary

powers as set forth in the Auxiliary Minute Book of

this date.

4tsa, Recommendation approved.

October 23rd, Recommending approval of the application of Mr. Harry

A. Gault for permission to serve at •the same time as

officer of the Armstrong County Trust Company, Kittan-

ning, Pa., and as director of the Farmers National Batik,

Kittanning, Pa.

i)atsa, Recommendation approved.

October 26rd, Recommending approval of the application of Mr. Peter

Graff, 3rd, for permission to serve at the same time

as director of the Farmers National Bank, Kittanning,

Pa., and, s director of the Armstrong County Trust

Company, Kittanning, Pa.Recommendation approved.


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OF STDING COMITTEES: (Cont' d)

Dated, n-ctober 23rd, Recommending approval of the application of Mr. Floy

C. Jones for pannission to serve at the same time as

officer of the Farmers National Bank, Kittanning, Pa.,

and as director of the Itrmstrong County 2rust Company,

Kittanning, Pa.Aecommendation approved.

415PrOVed:

4'

The meeting adjourned at 1:

Secretary.


Documents

19281025_Minutes.pdf