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988 At a meeting of the Federal Reserve Board held in the office of the Board on Tuesday, December 23, 1919, at 11 A.M., PRESENT: The Mr. Er. Mr. Mr. Mr. Mr. Governor Strauss Miller Hamlin Moehlenpah Williams chapman, Secretary. Minutes of the meeting of the Board held December 19, 1919, were read,and on motion approved as amended. Business was presented and disposed of as follows: The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations, rate 4-1/g70 on paper secured by certificates of indebtedness and 4-3/4% on paper-secured by Liberty bonds and Victory notes, as follows: Date Dec.18th Bank redis-With counti Amount Maturities (Chicago Philadelphia...(Dallas 4,000,U00 4,000,000 11-15 days Dallas Chicago 7,000,000 7,000,000 10-14 days 11-15 days Dec.19w1 Kansas City Dec.20th Philadelphia Noted. The Governor reported the reserve positions of the several federal Reserve banks as at close of business December 20tt, and the status of rediscounts between Federal Reserve Banks as of the same date. 989 The Governor reported the purchase of special certificates of indebtedness of the United States for deposit with the Comptroller of the Currency as co_lateral for Federal Reserve bank notes, as follows: For Federal Reserve Bank of: rew York, Date Dec.19th Amount 42u0,000 Approved. Telegram dated December 16th from the Chairman, Federal a Reserve Bank of San Francisco, advising of tne adoption of resolution by the Directors of that Bank, indorsing the Board's policy in postponing building operations by the Federal Reserve Bank. Telegram dated December 23d from the Chairman, Federal Reserve Bank of San Francisco, requesting approval of the following schedule of discount rates, effective December 26th: (A) Member bank collateral notes: (1) Secured by certificates of indebtedness,4-1/2% (2) Secured by U.S.bonds or Victory notes, 4-3/4% 4-3/4 (3) Secured by commercial paper, 5-3/4% paper, Finance War (4) Secured by (B) Rediscounts: (1) When secured by certificates of In4-1/2% debtedness, 4-3/41e, notes, Victory or ds U.S.bon by (2) Secured 4-3/4;1 days, 90 to one paper ial (3) Commerc days -90 4-3/4% paper,1 ck livesto or tural (4) Agricul 5-1/2 91 days to six months, 4-3/4 Trade acceptances, one to 90 days, Approved. 990 Telegram dated December 20th from the Governor, Federal Reserve Bank of Atlanta, requesting approval of rate of 4-1/2 on bankers' acceptances indorsed by member banks other than accepting banks, and rate of 4-3/4% on bankers' acceptances unindorsed, effective December 26th. Approved. Letter dated December 19th from the Chairman, Federal Reserve Bank of St. Louis, requesting approval of the declaration of a dividaud by that Bank for the six month period ; , per annum, payJuly 1 to December 31, 1919, at the rate of 6,; able December 31, 1919. Approved. Letter dated December 19th from the Chairman, Federal Reserve Bank of St. Louis, requesting authority to charge off on December 31, 1919, the sum of 4335,000 against its building account, together with memorandum by Mr. Hoxton dated December 22d recommending approval. Approved. Letter dated December 13th from the Chairman, Federal Reserve Bank of St. Louis, addressed to Lir. Moehlenpah, calling attention to advertisements of certain State member banks that they are under "United States Government protection". Eeferred to the Governor for reply. 991 -4Letter dated December 19th from the Secretary, Federal Reserve Bank of Chicago, submitting report of meeting of the building committee of that Bank, outlining details of certain preliminary plans in connection with its building project. Noted. Letter dated December 15th from the Chairman, Federal Reserve Bank of Philadelphia, in re status of permissions granted by the Board to directors of banks to serve as such under the terms of the Clayton Act. Mr. Hamlin stated that General Counsel was making a further study of the Philadelphia situation, and suggested withholding action on this matter for the time being. Letter dated December 20th from Lieutenant Colonel D. D. Gregory, enclosing report of operations of the Philippine National Bank, Manila, P.I. Voted to refer a copy of the letter to Mr. Leffingwell. Memorandum by the Governor, Federal Reserve Bank of New xork, dated December 19th, enclosing newspaper comment Upon the resignation of Mr. William B. Thompson as a Director of the Federal Reserve Bank of New xork. roted. -5(At this point Mr. joined the meeting) Voted that there be published in the next issue of the Federal Reserve Bulletin a copy of the Board's circular ro. 21, series of 1915, dated December 27, 1915, bearing upon political activity of directors of Federal Reserve banks, such publication to precede immediately notice of the resignation of Mr. Thompson. REPORTS OF COMMITTEE NO. 1: Dated Dec. 23d, recommending admission of State institutions as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the individual reports attached to each application. Approved. Dated Dec. 22d, recommending changes in stock at Federal Reserve banks as set forth in the auxiliary minute book as of this date. Approved. Dated Dec. 20th,recommending approval of increase in salary of Mr. P. J. Faulkner, Assistant Federal Reserve Agent at Cincinnati Branch, Federal Reserve Bank of Cleveland, from $2,700 to $3,000, effective January 1, 1920. Approved. Dated Dec. 22d, submitting resignation of Miss Bess Erin as Counter Clerk assigned to the rational Bank Redemption Agency, effective December 26, 1919. Accepted. Dated Dec. 23d, recommending temporary employment of 20 additional currency counters at salary of p'1,040 each per annum, to be assigned to the Redemption Division of the Comptroller's Office, for such period as their services may be required. Approved. 993 -GDated Dec. 23d, recommending approval of appointment of Mr. L. L. Ball as Telegraph Operator in the Board's telegraph office at an annual salary of $1,800, vice Mr. A.D. Blake, effective December 22, 1919. Approved. Dated Dec.20th, recommending increase in salary of Mr. Curtis L. Mosher, Assistant federal Reserve Agent at federal Reserve Bank of Minneapolis, from 84,800 to lb,500 per annum, effective January 1, 1920. Approved. Dated Dec.20th,recommending increases in salaries -of National Bank Examiners, effective January 1, 1920, as follows: To From $3,300 $3,600 T. A. Cooper, 4,200 3,900 H. W. Scott, 3,300 3,000 Baker, B. 7. 4,200 3,900 Cecil, B. K. 3,000 2,700 G.C.Congdon, 2,700 2,400 V. G. .;;nyder, 3,600 3,300 Robert Lontgomery, 2,700 2,403 J. C. Peightel, 3,000 2,700 Smith, C. F. 3,600 3,900 T. C. Thomas, 3,600 3,300 Aycock, R. Y. 3,300 3,000 W. B. Cloe, 2,700 2,400 Davis, T. H. 4,000 3,600 L. W. Hoffman, 3,300 3,000 D. R Wood, 3,300 3,600 H. E. Albert, 4,000 4,200 C. H. Anheier, 4,200 4,500 W. M. Buckles, 5,000 3,300 W. P. Dougherty, 2,400 2,700 P. J. Loran, 3,000 3,600 B. K. Patterson, 3,000 2,400 M. D. Smiley, 3,300 3,000 A. B. 4,800 4,200 Jno. H. Smith, 2,700 2,400 A. R. Bradley, 4,200 3,900 Sherwood Crocker, 2,700 2,400 Roy A. Cooper, 4,500 4,200 C. H. Filson 3,000 2,700 J. A. Guthrie, 2,700 2,400 B. E. O'Brien, ( r. - 7- S. A. Longmoor, W. W. McBryde, David Murphy, J. L. Penix, J. K. Woods, W. L. Gray, C. T. Maxey, L. M. Sawyer, Oscar Thompson, D. V. Harkin, John S. Wood, From ;?3,000 2,400 3,600 3,600 4,000 3,600 2,400 2,700 4,800 5,500 3,900 To 0,600 2,700 3,900 3,900 4,500 3,900 2,700 3,000 5,000 6,000 5,000 Dated Dec.2Uth, recommending increases in salaries of Chief National Bank Examiners, effective January 1, 1920, as follows: From To $ i 15,000 a16,000 Sherrill Smith, 8,000 7,000 Daniel C. Mulloney, 7,500 7,000 Fred Brown, 7,000 7,500 Stephen L. riewnham, 7,500 8,500 Richard H. Collier, 7,500 8,000 H. R. Gaither, 8,500 10,000 Silas H.L.Cooper, 7,000 5,00 Harry L. Machen, 6,000 4,500 Wm. J. Schechter, Approved. In connection with the action of the Board at its meeting on December 19th in referring certain increases in salaries of employees of the Board to him with power, the Governor reported that he approved the following of such increases: Present Present sal- Proposed inBasic ary including crease in Salary extra compen- basic salary sation. 3.20 41,440 ,;1,200 Ira J.Nichols, 100 1,640 Mary S. Evans, 1,400 1,400 180 Albert P. Freer,1,400 1,640 100 1,400 Julia Moore, Total proposed salary,including extra compensation. $1,560 1,740 1,580 1,740 -8and disapproved the recommended increase of $120 per annum in the salary of Liss Lucia M. Emery. Noted. Mr. Williams stated that he had received request from the Federal Reserve Agent at New xork to permit examiners of the Federal Reserve Bank of New xork to participate in the examination of national banks in the Second Federal Reserve District on the special list, and that he had complied with Mr.Jay's request. Letter dated December 22d from the Chairman, Federal Reserve Bank of New xork, requesting authority to increase from 450,000 to 4?250,000 the amount which it might charge off on December 31, 1919, and set up as a reserve for group insurance. Lpproved. On motion duly seconded it was voted that there be listed as a topic at the next conference of Governors of Federal Reserve banks the suggestion that there be created an inter-Federal Reserve bank insurance fund. Letter dated December 21st from Deputy Governor Case, Federal Reserve Bank of New xork, advising of the increase in holdings of United States certificates of indebtedness by the Bank of Japan. Ordered circulated. On motion duly seconded it was voted to extend to Larch 1, 1920, the term of office of Mr. Y. C. Liliott, Con- 996 -9-suiting Counsel, at his present salary of 4;5,000 per annum. On motion duly seconded there was referred to the Executive Committee for report, the question of the readjustment as of January 1, 1920, of salaries of Federal Reserve-. Agents and Governors of Federal Reserve banks. It was also voted to refer to Executive Committee for consideration and recommendation, salary schedule of the Federal Reserve Banks of St. Louis and Atlanta, recommended to be effective as of January 1, 1920. At 1-07 2.L., the meeting adjourned. Secretary. Approved:
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