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At a meeting of the Federal Reserve Board held in the office of the Board on Tuesday, August 26, 1919 at 11 Aix. PRESENT: The Governor Mr. Strauss Mr. Miller Mr. Williams Mr. Chapman, Acting Secretary. The minutes of the meeting of the Board held on August 21st were read and on motion approved as amended. Morning business was presented and disposed of as follows: The Governor reported the purchase, on August 21, 1919, of special 2% certificate of indebtedness of the United States for the Federal Reserve Bank of Chicago, for $1,000,000, for deposit with the Comptroller of the Currency as collateral for Federal Reserve bank notes. Approved. The Governor reported the reserve positions of the several Federal Reserve banks as at close of business August 23d, and the status of rediscounts between Federal Reserve banks as of the same date. The Governor reported rediscount transactions, pursuant to authority heretofore vested in him: member bank pramissory notes secured by Government obligations; rate -2- 11; on paper secured by certificates of indebtednebs and 4on paper secured by Liberty bonds or Victory notes, as fol- lows: Federal Reserve Bank.of_ With Philadelphia Richmond Dallas Richnond Dallas Chicago rinneapolis Chicago St. Louis Chicago Amotint. Aug. Aug. Aug. Aug. Aug. 21st 22d 23d 25th 25th Uaturities $17,000,000 11 to 15 days; 5,000,000 11 to 15 days; 2,000,000 11 to 15 days; 10,000,000 13 to 15 days; 1,000,000 11 to 15 days. Noted. Letter dated August 19th, fron. the Guaranty Trust Corpany of New York, in re effect on the silver market of gold shipvents to China. Ordered circulated. Applications of the following banks for authority to accept drafts and bills of exchange up to 1007! of their capital and surplus under the provisions of Section 13 of the Federal Reserve Act: Hibernia Bank of Savannah, Savannah, Georgia; The National Yarine Lank, Baltimore, Waryland; Approved. Recommendations for changes in discount rates at the Federal Reserve Banks of Chicago and Dallas as follows: Federal Reserve Bank cf Chicago; rate of 4% on customers' paper maturing within 15 days, secured by certificates of indebtedness of the United States; Federal. Reserve Bank of Dallas; rate of 4-e on lb-day rediscounted customers' paper secured by Govern- G52 -.3-. merit obligations other than certificates of indebtedness of the United States. Approved. Letter dated August 21st from Deputy Governor Peple, Federal Reserve Bank of Richmond, requesting authority - to install direct telegraph facilities between the Federal Reserve Bunk of Richmond and its Faltimore Drench, via the Board's telegraph office at Tashington. Approved. Letter dated August 21st from the Assistant Federal Reserve Agent at Cleveland, submitting for approval the application of the Cleveland Trust Company, Cleveland, Ohio, for pernission to establish two additional branches in Cleveland. Approved. Letter dated August 23d from Assistant Cushier Crane, Federal Reserve Bank of New "York, outlining the method by Which that bank, upon the recommendation of Governor Strong, proposes to deal with the detemination of the gold content of the Gervan gold coin held for it by Be Nederlandsche Bank. Voted to approve the method recommended by Governor Strong. Yemorandum by Vt.. Fleck of the Department of State, re possibilities for an Arerican bank at ConstantinoTle and at other commercial centers in the Near East. Ordered circulated. Letter dated August 12th from the Fur Dressers' and Fur Dyers' Association, Incorporated, Per York, requesting a ruling by the Board, classifying acceptances by memLars of that association. The Governor submitted for approval draft of reply by him under date of July 26th. Approved as amended. Memorandun by the Acting Secretary, dated August 25th, mem:lending the assignment of Rooms 268 and 288, Treasury Building, to the Division of Audit and Examination. Ordered tabled. Letter dated August 19th from the Chairnan of the Federal Reserve Bank of Atlanta, requesting approval of the appointment of the following Acting Assistant Federal Reserve Agents at branches of the Federal Reserve Bank of Atlanta: Mr. W. E. /liner, New Orleans, Louisiana; Mr. Thomas Eowron, Birmingham, Alabama.; Mr. V. H. Haughton, Jacksonville, Florida. Approved, subject to favorable opinion by General Counsel as to eligibility as Acting Assistant Federal Reserve Agents of persons not officers or employees of the Federal Reserve Systen. Letters dated August 20th, addressed to The President and The Attorney General by Mr. J. p. Strock, Reading, Pennsylvania, charging the Federal Reserve System with "profiteering". The Governor submitted for approval draft of a reply prepared by him under date of August 26th. Approved as amended. (72r:- 4, -5- RFPOPTS OF COWITTEE '10. 1: Dated August 26th, recommending admission of State institutiors as set forth in the auxiliary minute took of this date, subject to the conditions stated in the individual reports attached to each application. Approved. Dated August 26th, recommending action on applications for fiduciary powers as stated in the auxiliary minute book as of this date. Approved. Dated August 21st, recommending approval of application of Edwin B, alone for permission to serve at the same time with the Yensington National Bank and the Tenth National Bank, both of Philadelphia, Pennsylvania. Approved. Dated August 22d, reporting the employment of Er. 0, 'lc Ten Eyck in the office of the Consulting Architect, pursuant to authority heretofore granted by the Board. Noted. Dated August 23d, reconmending approval of the designation of the following as special examiners of the Federal Reserve Bank of Cleveland: Yr. L. J. Fleming, Er. George De Camp, Mr. 14, vr. yenning. Approved. Dated August 25th, recommending elimination of the names of Mr. Charles A. Peple and Yr. Charles A. Wyatt from the list of special examiners of the Federal Reserve Bank of Richmond, their present duties raking it impracticable for them to exercise such functions. Approved. \J Dated August 20th, recormending approval of the appointrert of Examiner, Mr. C. F. Miners as As Federal Reserve Bank of San Francisco, to assist in examindion of applying State banks in California, at the rate of t2,000 per annum, effective September 1, 19)9. Approved. -6- Dated August 25th, recommending ircrease in the salary authorization of July 31st from f2,000 to $2,400 per annum for ar Assistant Federal Reserve Examiner, and the appointment as such of Vr. Charles H. Cramer, effective at such date as rr. Cramer reports for duty. Approved. Other businese was presented and disposed of as follows: The Governor read telegraphic correspondence had by him with the Chairman of the Federal Reserve Ban', of San Francisco in re eligibility of certain acceptances of the Park Union Foreign Banking Corporation, and submitted for approval draft of telegrem to Ir. Perrin under date of August 26th. Approved. Letter dated August 22d from the Chairman of the Federal Reserve Bank of Atlanta, aivising of the impossibility of securing the consent of the State Superintendent of Banks of Louisiana or of the New Orleans Clearing house Association for the participation of examiners of the Federal Reserve Bank of Atlanta in examinations conducted by those bodies. Referred to the Governor for reply* Lotter dated August 21st, from the President of the Conmercial National Lank, Washington, p. 0., requesting re- view by the Board of its decision in the matter of the application of Wr. Cuy T. scott to serve at the same time as a director of the Continental Trust Company and the Commercial National Bank, both of Washington, D. C. ..,70. Referred to Ur. Hamlin for report. At 1 P.m. the meeting adjourned. Acting Secretary.
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