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1098 At a special meeting of the Federal aeserve Board held in the office of the Board at 3:15 p. m., Wednesday, December 22, PRE3ENT: Mr. McAdoo, presiding Mr. Williams Yr. Ilaralin Mr. Warburg Mr. Delano Mr. harding Miller Mr. Willis, secretary. The Chairman named Hamlin as off* ial delegate of the Board to attend the Pan American Jcientific Congress, 1:r. Warburg to ho named as alternate, Mr. Hamlin to have the power to designate t mporary alternates in lieu of hims6lf or Mr. Warburg. The 3ecretary of the Board read a telegram from Fedora Reserve Agent Tenison renewing his resignation of some months ago. On motion the matter was referred to the Committee on Operation of Reserve Bank, (Mr. Harding) for early report. The special order for t o day, the election 1099 of Class "0" directors of Aderal reserve banks, was thken up, and Lr. Harding stated the general results of the experience of the past year with reference to the choice of directors and officers of the banks. He said that some members of the Board had reached the conclusion that it would be, well to have the functions of Deputy Federal Reserve Agent less emphasized, while the functions of the chairman and vice chairman should be brought more prominently to the front, the effort being to appoint strong men as Government directors, while permitting Federal reserve agents to name assistants to help them do their work, ge pointed out that 2ederal reserve banks were gradually eliminating executive officers from their directorates. This was a tendency of doubtful soundness. He thought the Governors ought to have seats in the boards of directors, yet to secure such action through elective processes, would require amendments to the Act. Nevertheless, it would be pos- sible to strengthen the Class "C" directors by anuointing the Governors of the banks Class iC" di- 1100 rectors. :r. Harding's statement led to a general discussion of the situation as to the choice of directors; and the members of the Board engaged in a general interchange of views. It was informally agreed that Er. Harding should look over the present director, and rel)ort at a meeting on Thursday at 3:00 p. m. how the proposed policy would actually work out in practice.. 7:r. McAdoo read a tentative resolution forbidding directors of Federal reserve banks to serve, if it should appear that they were holding political offices for Federal, state, county or municipal government, or places of activity on political committees. Informal discussion was given the resolution, and the matter was laid on the table until Thursday afternoon, with the understanding that a revised draft of it would then be presented. The Secretary of the Board having read a telegram from Federal '/eserve Agent 1:cDoucal relative to action of the Reserve Bank of Chicago in applyin_; for the conversion of 2 bonds into 3; notes and bonds, there ensued a discussion of the general situation with reference to the issue of 2ederal reserve notes and national bank notes as affected by the refunding policy. lir. LcAdoo read a letter from Assistant Secretary of the Treasury Lalburn reviewing' the situation, and after full discussion it was acTeed to lay the matter on the table until Thursday afternoon in order, to afford opportunity for further study. Lr. Warburrs reported with reference to certain individuals as Class "3" directors at Philadelphia. The Jecretary of the Board having read a letter from Li'. E. W. Decker of Lanneapolis relative to certain statements alleged to have been made by United States Treasurer Burke, it was voted to send a copy to the Secretary of the Treasury for his information,, and also data as to the amount of agricultural loans made by the Bank of 1Tinneaoolis. 11r. Warburg called the attention of the Board to the decline in receilAs of banks in various cities, and the probable results of such decline. 1102 Mr. Delano called the attention of the Board to his recormendation made in the past, that all 2ederal reserve cities be made central reserve cities. It was agreed that this subject be made a special order for Thursday, December 23. Lae. Williams suggested as a possible amendment to Ia.. Delano's suggestion, that the Board recomiend to Congress that all reserves be transferred to reserve banks before July 1, 1916. On motion at 5:00 p. m. the Board adjourned to meet on Thursday, December 23 at 3:00 p•m• "ccrotary APPTIOVED: Chairman.
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