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At a reular meeting of the Pederal Reserve Board held in the office of the Board at 11 A. M. on ,i'riday, December 8, 1916. pRizIaMT: Covernor Harding, presiding, 1.1r. Delano, Mr. - arburg, 1.7.r. Hamlin, 17.r. Miller, Mr. —illis, Secretary. The minutes of the :_leeting of the Board held on December 6th and 7th were read and on motion approved. The minutes of the joint session between the Board L.,.01 the 2edera1 Reserve arents held OD Decft.:.lber 191C, were read and on motion referred to Mx. Delano as a special committee. Discussion the method of dealing with cert-in appeals under the Clayton Act, already brour,ht befcre the Board, was begun, and it was agreed to await additional data before taking any formal action. "On motion:a letter addressed to the 7inth rational Bank of Mew York .prepared for the signature of the Comptroller of the Currency, was referred back: to Mr.7arburg in whose hands it had previously been, vAth power to act in conjunction with the Comptroller of the Currency. 1244 Letters relating to dividends of certain banks in Oklahoma, were referred to Er. Harding and Mr. Delano as a special committee. A letter from secretary Curtis of New York with reference to certain questions relating to the present clearing situation, was referred to the Committee on Clearing. On motion the shipment of '2,030,0u0 of Federal Feserve notes to the Federal Reserve Bank of Kansas City, in specified denominations, was ul)proved. On motion the release of '1,000,000 of Federal Reserve notes from the Subtreasury at an Francisco, to the Federal Feserve Agent at that place, was approved. On motion the release of500,U00 in Federal Beserve notes from the Subtreasury at New Orleans to the New Orleans Brunch of the Federal Reserve Bank of Atlanta, was approved. On motion the release of 31,020,000 of Federal Reserve notes to the Federal Reserve Agent at Philadelphia from the Subtreusury at that place, was approved. The Secretary of the Board presented a notice freM the Comptroller of the Currency with reference to new assig11ments of National Bank :xaminers. On motion the notice wa5 i243 referred to the Committee on Staff. The Board proceeded to take up the proposed amendments to the Federal Reserve Act, and the following memorandum of amendments was considered:1. Advancing the date when reserve funds, excepting those in Federal Reserve banks, and in vaults of member banks, will no longer count as reserves. • 2. Reducing reserves and adopting simplified plan suggested by Federal Reserve agents. 3. Reducing paid-in capital of the banks. 4. Supertax on rational bank note circulation. 13. Renewing recommendation of last summer for branch banks in cities. 6. Provision for associate, or clearing membership in the Federal Reserve system. 7. 100 per cent acceptance power restored. 8. Fifteen day notes to secure Federal Reserve notes. 9. Section 22 - improvement and clarification. 10. Sixth exception to limitation of liability. 11. .:;100,000 gold certificates. On motion it was voted that Konorable Carter Glass be notified that the Board is not at present prepared to recommend that the Government assume the cost of printing Federal Reserve notes. On motion it was informally voted that the Board ) I' 46 Is unanimously in favor of the amendments listed above as (1) and (2) - advancing the date when balances in city banks will no longer count as reserves, and adopting a simplified plan for reserves as suggested by Federal ReServe agents. On motion it was informally voted that the Board is in favor of an amendment, listed as (3) above, granting the Board power to reduce the capital stock of Federal Re, of the present paid-in capital, the total serve banks to 50'24 on authorized capital remaining as at present, such reducti to take place upon the request of any Federal Reserve bank, such request to be made at the instance of member banks voting on the subject. Four votes were informally listed In favor of this amendment, and one against. On motion it was informally voted that the Board imposing is in favor of an amendment, listed as (4) above, cona supertax on Yational bunk note circulation so as to tract outstanding currency in view of the large inflow of gold. motion. All members were tentatively in favor of the On motion it was voted that the Board is in favor ban'a of renewing the recommendation for last year for branch in cities. The question of a provision for clearing membership of State banks, along the lines inuicated in the sixth amendment above, being brought up, it was found that there was no general agreement, two members being strongly in favor, while three were undecided. On motion it was informally voted that the Board is in favor of an amendment similar to that listed as (7), restoring the 100 acceptance power omitted through , error in last summer's measure. On motion it was informally voted that the Board is in favor of an amendment providing that fifteen day notes which are not now elitfible to secure Federal Reserve notes, under Counsel's ruling, should be made so eligible. Four members favored this change, while one was opposed. On motion it was informally voted that the Board Is in favor of an amendment designed to improve and clarify Suction L2 relating to the liability of directors, as irdi'cated in (9) above. On motion it was inoraliy voted that in the opinion Of the Board the Act should be amended so that rediscounts by member banks of bills of exchange and acceptances should not be considered a liability, as indicated in (10) above. 1248 On motion it was informally voted that the Board is in favor of an amendment to existing law allowing the issue of .,:4100,000 gold certificates, as indicated in (11) above. Discussion of the best mode of handling the preparation of these amendments ensued, and after various plane had been considered, it was on motion agreed to refer them to the Committee on Law with the aid of Counsel, it being understood that the various merabers of the Board would be called on as occasion might demand. It was informally agreed that the Committee on Law meet at3 P. L. this day. // The Governor of the Board read a draft of a letter addressed to Secretary Curtis of New York ruling against the discount of acceptances collateraled by other acceptances crowing out of the importation and exportation of goods. letter was approved subject to the joint action of the Committee on Law and the Comptroller of the Currency. V On motion at 12:40 P. M. the Board adjourned to meet on Monday, December 11th unless sooner summoned by the Chair. Jecre tarY• AP*. D: Chairman. -Or--7)
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