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INFORLIAL September 9 — December 7. 1_319 At an informal conference held in the oCfice of the Board at 3:20 p. m. on Thursday, September 9, PRESOT: Mr. EcAdoo, presiding Mr. Warburg Mr. Hamlin Lir. Harding Mr. Williams Mr. Willis, Jecretary. PRESENT AL30: Honorable H. Carter Glass, Chairman of the House Banking, and Currency Committee. The question of the present intra-district clearing system was taken up, and Mr. Glass asked to state his views in regard to it. Mr. Glass said that he had formally expressed his ideas in a letter to the Chairman of the 13aard, and that in brief he merely wanted to see that the intent oC the law was carried out. The Chairman asked 14r. Hamlin to state what had actually been done thus far, and Mr. Hamlin made a statement of the action taken on the clearing Taostion. :r. LIcAdoo said that he thought that Yr. Glass' position in brief was merely that the Board should put the clearing provisions of the law Into more complete operation at once. Discussion of the intent of the framers of the law and of the various articles and technical problems connected therewith ensued. Counsel of the Board was called into conference. 1embers of the Board expressed the view that it had proceeded as rapidly as possible in the development of the system of clearing and that various difficulties which had had to be met had caused unavoidable delay. The Counsel of the Board was asked to consult with Lir. J. P. Cotton with reference to the question of collecting non-member checks and to inform the Board whether it has the authority to require the clearing of checks drawn on nonmember banks and deposited with members and also "M1 whether the Board has power under the law to put into effect any system of clearance requirinc re- .1321 serve banks to clear member bankstchecks whether they choose to or not and finally whether reserve banks have the power to call upon member banks to require the latter, to keep on deposit balances adequate for the foregoing purpose. The Board also took steps to ascertain whether Counsel had in any way modified his former opinion on the whole subject. At the invitation of the Board, Yr. Glass agreed to join in another informal conference on Thursday, September 16. On motion, at 4:45 p. m. the conference was closed. Secretary. APPROVED: Chairman.
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