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1088 At a regular meeting of the federal Reserve Board held in the office of the Board at 11:00 a. m. on Tuesday, December 21, .L .L. T:r. Hamlin, presiding l7.r. Delano 7,,*.r. Williams Lr. 7arburg Harding Li.. 'sailer 11r. Willis, jecretary. The minutes of the meeting of the Board of December 17 were read and approved. The minutes of the meeting of the Committee on Operation of federal eserve Banks and the Execu- tive Claunittee in joint session, on December 17, at 4:30 p. m., wore read and approved, the. action therein taken being ratified by the Board with the understanding, howevei, that nothing therein stated with reference to amendments to the federal Reserve Act should be regarded as binding on the Board or any member thereof. The 3ecretary of the Board presented the minutes of a conference with the Executive Committee 1.089 of Governors held in the office of the Board on ThurSdp.y,December 16, and the minutes of a conference with the Executive Committee of the National .Bank Section of the American Bankers Association at the same place on December 15. The conference min. , utos were referred to Er. Delano for reading and report. On motion applications for Federal reserve notes, duly recommended by the Committee on Issue and Redemption, were approved as follows: For the Federal Reserve Bank of Atlanta, ;)500,000, as follows: 05 denomination 10 II 20 C100,000 320,000 80,000 For the Federal Reserve Bank of Richmond, A6809000 9 as follows: 51 ) 5 denomination 10 20 . 0200,000 240,000 240,000 For the Federal Reserve Bank of New York, 02,000,000, as follows: 05 'denomination 02,000,000. 1090 Reports from Chief of Division Broderick with reference to the examinations of the Federal Reserve Banks of Dallas and San Francisco, were referred to the members in charge of those districts. With reference to the Federal Reserve Bank of Kansas City, Er. Miller, the member in charge of the district, asked Mr. Harding for a statement relative to conditions at Kansas City. Er. Harding thereupon outlined the conditions prevailing in that bank as developed at a conference held by himself and Er. Miller an December 20, at which Mr. J. Z. Miller, jr.., Federal Reserve Agent at Kansas City, was present. Yr. Harding gave the substance of the exami- ner's report, and also impressions derived from the statements of Er. J. Z. Miller, Jr. After discus- sion it was voted that a letter be addressed to the Kansas City Bank following a form presented by Mr. Delano, wherein disapprobation of conditions prevailing at Kansas City was expressed, and request was made for action designed to locate the responsibility. The matter was referred to Mr. Miller and Mr. Harding 1091 with power to act, the letter, however, to be officially signed by the Governor of the Board. The reoort of the examination of the Federal deserve Bank of Kansas City was then referred in the usual course to Er. Miller. Mr. Warburg havinc reported regarding the question of guaranteeiac letters of credit, which had been referred to the Board by the Federal Reserve Bank of Boston, and having submitted a memorandum i)repared by Counsel, with his own approval, desined to regulate the conduct of business of this kind, it was agreed, after discussion, that the Board tentatively approve the proposed plan, and that it be referred to the Comptroller of the Currency with request for his opinion as to the methods therein suggested. The ;3ecretary of the Board informed the Board of action taken as follows: That the Secretary of the Treasury had designated the New Orleans Branch of the Federal Reserve Bank of Atlanta as a Government depositary, t()(1° ,>••41, the same to receive deposits now placed with all national ban'4s in the city of New Orleans. That investi:ation shows that one letter had been ordered written with reference to the question of tenure of office of ol'ficers and employees of Federal reserve banks, indicating the general opinion that the terms of such emrloyees were to be fixed by the boards of directors of the banks. That in response to inquiry he had written a letter to the Federal Reserve Bank of Richmond, and had sent copies of the said letter to all Federal reserve agents, stating that in the event of an appropriation for a Christmas bonus, the said bonus would be regarded as a part of the employee's salary, and as such, must be submitted to the Federal Reserve Board for approval. • On motion it was voted that the Secretary prepare a letter stating that it is the sense of the Board that both salaries and appointments to staff are to be submitted to and approved by the Board annually as a matter of routine., and that in the course • 1093 of any .particular year, all officers of banks are to hold office at the pleasure of their own board' of directors. L:r. Delano filed with the Board data furnished through him by the Conmittee on Red'stricting, the same being memoranda prepared by individual members of the conraittee in the preparation of their recent report upon the question of redistricting. Two identical sets of such rlemoranda were supplied. On motion the following resolution relative to the manaTement of the Gold Fund, was adopted: j:,LILID, That H. Parker Villis be appointed Settling Agent in charge of the Gold Settlement N'und of the 2ederal Reserve Board from Friday, December 24 to and including December 31 in the place of jherman Alien, and that the said Jherman Allen is authorized to deliver the combination of the safe and custody of the holdings of the said fund to Fr. Willis. On motion it was voted that the Federal aeserve Beard establish holiday on December 25 and January 1 for all omployes, and half holiday on December 4 and 31. 1094 On motion it was voted that the Board should adjourn from Thursday, December 23, to Wednesday, December 23, a stated meeting or the Board to be held on Wednesday, the 29th instant. On motion it was voted that the 2ederal aeserve Bank of Cleveland be authorized to retain the whole of an issue of 0130,000 of notes of the Board of Education of the City School District, of the City of Cleveland, subject to the approval of Counsel or the Board. The 3ecrotar77 of the Board read a letter written by Federal Reserve Agent Curtiss relative to the possible conversion of two rational banks into State banks in lassachusetts. The Secretary of the Board read a letter from Secretary of State Lansing requesting the appointment of a delegate to represent the Board at the Pan American Scientific Congress. The matter was laid on the table for the time being. A letter from the State Bank of Llewellen relating to reports of condition, was ordered re- [i 1_095 ferred to the Committee on Uomber and tate Banks. Ur. Harding read a letter from the representative of the banks of Louisiana asking transfer to the 2ederal Reserve Bank of Atlanta. On motion it was voted that the briefs of the Louisiana bank be sent to the Dallas Bank, the Louisiana interests to be informed that they may file briefs up to January 21. It was agreed that the 2ederal aesorve Bank of Dallas be informed of the action taken. The motion prevailed. On motion it was voted that the Connecticut banks may be granted a hearing before the Board in the matter of their transfer to the :Tow York District, or if they prefer, may file briefs. The Jecrotary was ordered to notify the representative of the Connecticut barks that such briefs should be filed, if possible, by January 20; or if a hearing be desired, that the hearing be fixed for some date prior to that time. It was informally agreed, how- ever, that in case of necessity, the Secretary may extend the time thus allowed. 1096 On motion it was voted that the banks of southern Wisconsin which had applied for transfer from District To. 9 to District No. 7, shall be polled by mail as in the case of the Louisiana banks, a suitable form of ballot to be prepared for the Committee on Redistricting by the Secretary of the Board. On motion it was voted that the Committee on 2edistrictin -: should present to the Board a draft of a letter to be sent to the Attorney General definitely inquirinc; as to the power of the Board to chance the location of a Federal reserve bank. Er. Hamlin presented a letter from the Clearing House Banks of Richmond with reference to the power of the Collector of Internal Revenue to examine the accounts of the Richmond banks, in order to ascertain their liability to income tax. After discussion it was agreed that the matter be presented to the (jecretary of the Treasury in order to ascertain his views. Delano presented a draft of a letter 1097 to Representative Moss relating to the action of the Federal Reserve Bank of Cleveland as to certain discounts granted to the National Bank of Clay City, Indiana. After discussion the letter was referred back to Mr. Delano with power to act. Er. Warburg and Mr. Harding reported a plan for the establishment of a definite system of code words for communication with Federal reserve agents, designed to differentiate their messages from those addressed to Governors of reserve banks. On motion the plan was approved. On motion a report of the Committee on Staff, dated December 21, and fixing the salary of H. Parker Mills, the Secretary of the Board at ' *9,000 per annum from and after January 1, 1916, was approved. On motion at 1:00 p. m. the Board adjourned to meet on Wednesday, December 41, at 3:00 pi, m. Secretary. APIROVED: Chairman.
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