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At a regular meeting of the Feder' l Reserve Board held ir the office of the Board on Wednerdey, Februery 13, a eleven A. M., PREF,ENT: Mr. Harding, preeiding, Mr. Dirt, Mr. Hemlin, Mr. WnrLuri, Mr. Miller, Mr. Willie, Secretnry. The minutes of the meetinr of the Beare held on Februery 11 were reed and, on motion, npproved. The minutce of the mectirge of the Cold Expert Correnittre held on Februery 12 nd 13 ewe presented and, on motion, e!proved and the nctiol therein net forth rati— fied. The minutce of the meetings of the Cnpitel Iseues Committee held on February 7 end c were prer44ed rind, on motion, approved end the nction therein set forth ratified. A letter from Governor Lynch recommending thnt Federel Reserve bnnks be permitted to receive depoeits from stntes end cities, wns presented nnd noted. Correspondence with Governor Strong regarding the ecquirement of quarters for Federel Reeerve bails out of surplus, Wail reed nnd diecuesed. The Governor wee, on motion, nuthorized to reply e;<prereinp. the Board's viewr. A letter from Federal, :Reserve Agent Perrin re purchase of land for the Federal Reserve Bank of San Francisco, 10iF rend and noted. Correspondence between Governor Strong and President C. A. Hinsch re redemption of national bank notes, was presented nnd referred to Mr.. Miller. A lettor . from,Mr. Jortephilayno re .officers at the Federal Reserve Bank of Philadelphia was rend and noted. A letter from Federal Reserve Acent Perrin re the al:sorption of loss on abrnded gold, rns rend and noted. trmemorandum prepared by Mr. Warburg,re renewal of certain French railway neceptance credits, and recommending such extension, war read and referred to Committee No. J. A telegram from El Pane HCUre re n branch to be established at El PO, was rend and noted. An order authorizing the establishment of a branch of the National City Bank of New York nt San Juan with certain sub-branches in Porto Rico, was ordered ontered ns follows: . AT A STATED MEETING OF THE FEDERAL RESERVE POARD, held nt itt office in the City of Washinvton, District of Columbia, cu February 191. PRESEN T: HON. In the 1..:_tter :ORDER GRANTING LEAVE TO ESTABLISH A BRANCH 1.ITH tJiAIII OFFICE 1N THE Application of THE NATICNAL CITY CITY _OF JUAN, PORTO BANK CF NEW YORK, for leave to :RICC SUB-BRANCHa, open n Branch in PORTO RICO, vith AGFECIES OR OFFICES. its main office in the City of : SAN JUAN -of the- sAr .. The Natirnaa City Bonk of Ner York, havinF on or about February 9, 191F, filed an application rith thir Board, for the purpore of obtaining authority to ertablish Branch, with its main office in the City of Snn Juan, Porto Rico, and with sub-branches, agencies or offices in each of the Cities of Arecibo, Mnyavuez and Ponce, or in any of the raid places, and tl=e said application having been considered; and it appearing that the said application is rroperly made under the laws of the United States of America and should be Fronted, Now, therefore, it is ORDERED, that the said application be and it he-eby is approved, and that the said Bank be and it hereby is authorized to establish a Branch with the main office in the city of San Juan, Porto Rico, and to establish sub-branches, /igen- cies or offices of the said Branch in each of the Cities of Arecibo, Mnyaruez and Ponce or in any of the said Citics. FEDERAL RESERVE BOARD, BY (SFd) V. P. G. Harding, GOVERNOR Attest: (Sgd) H. Parker Willis Secretary. Reports of Committee No. 1 were presented and approved as follows: Dated Feb. 11 recommending the appointment of V. S. Vnryon nt 125 per month ordered serted in the minuter, of February 11. ft 13 " the appointment of National Bank Examill' ' -or J. Id.. McReynolds at $2400 of D. H. Barrows, Assirtant Sec-r retary Federal Reserve Bank New York, at t4,000 pox' snnum. ft Reports of Committee flo. 2 were presented end apprcved as follows: Dated Feb. 11 recommending neceptnce powers for the Nstiorl City Bank of Chicago.. " 13 " the Rdmispion of the following institutions on conditions named bY the Committce in each case: Birmi ghnm Trust th Savings Co., Birmingham, Alab ma, 690 sharer in the Federal Reserve Bank of Atlanta. The First Territorial Bank, Lovington, N. V. 30 shares in the Federal Reserve Bank of Dallas. Scandanavian-American Bank, Marshfield, Oregon. 18 shares in the Federal Reserve Bank of San Francisco. Bank of Camilla, Camilla, Georgia CO shares in the Federal Reserve Bank of Atlanta. Thompson Savings Bank, Hudson, Mich. 90 shares in the Federal Reserve Bank of Chicago. State Exchange Bank of Macon, Macon, Missouri. 72 shares in the Federal Reserve Bank of St. Louis. Citizens State & Trust Bank, Edwardsville, Ill. 56 shares in the Federal Reserve Bank of St. Louis. Exchange Bank of Jefferson City, Jefferson City, Mo. 72 shares in the Federal Reserve Bank of St. Louis. A report of Committee No. 3 re the status,of certain directors ef the Mattapan National Bank of Boston, and other institutions, was presented and, on motion, ripproved. Certain documents and correspondence re the trade acceptance situation were presented by Governor Harding and noted. A.draft of a letter to President Pease of the Canadian Bankers Associaticv re the export of gold to Venezuela, war presented rind, on motion approved for transmission. A memorandum fro.1 Mr. Hamlin re the mailing of the Index Digest, was presented, and it was ordered that the Governor be authorized to notify the ,Federal Reserve banks that orders for the Index Direst will be filled from the Board direct. The question of n co:Tlimentry list was refe-red to the Executive Committee with power. A letter from Mr. S. Watkins outlining a plan for the organization of a "Natiortal Discount Bank" in New York, was read and, on motion, referred to Counsel for an opinion. A.telegram from Assistant Secretary Allen re the signature of checks for the payroll was read end, on motion, the quertion of the bonding of the Fiscal Agent of the Board was referred to the Governor for consultation with Counsel. A memorandum of Counsel rogardin a propoved amendment to Section 22 oT the Federal Reserve Act pro,posed by Steteon t Rutisoll ci. flew York in con,- junction with White t Case of New York, WRS rend and it was agreed to give a hearing to the New York attorneys on Friday afternoon, February 15, at 3 P. M. The luer.tion of T1 readjustment of certificate assignments among Federal Reserve banks was brought up and referred to Committee No. 2 for a recommend-qdon. A memornndum from the Division of St-tistics re the redistribution of rediscounts among Federni Reserve brinks, wns rend. Five members being present end unnni- mously coocurring, it wns, on motion, voted to relieve the Richmcnd Bnnk of $10,000,000 of discounted pnper or necoptnnces, nt 4%, the rnme to be redistributed ameng other Reserve bnrks ns follows: Philndelphiti (;5,000,000 Chicago Minneapolis) Kansne City) (approximtely ',.),000,000 (evenly (divided Total t10,000,000 The Governor of the Board wns, on motion, charged vdth the duty of cnrrying out the redistribution provided for. A letter from Mr. J. B. Pike of the Federnl Reserve Bank of Atlnntn regnrding the extension of the per lint, wns rend nnd discussed ind, on motion, referred to Governor Harding. At this point Mr. Willinms entered the room. The question cf the Bonrd's ettitude on the preposed bill for the sale of the Treasury silver, rns considered Ind n proposed letter ns to the position of the Bond re the suggested issue of Federal Reserve benk notes, ims presented by Mr. Delni;o, modified ,3nd approved for transmissin. A letter from Secretary of the Trensury McAdoo Arnnomittinga letter from the Secretnry of State re sugar crop finnncing, wns presented and ordered entered in the minutes as follows: Secretary of the Treasury Washington. February 13, 1S18. Hon. W. P. G. Harding, Governor, Federal Reserve Board, Trensury Department. Dear Governor Harding: I beg to enclose herewith copy of a letter received from the Secretary of State, explaining the difficult situation in regard to moving and financing the Cuban sugar crop, nnd suggesting the necessity for the estnblishment of credits to relieve the situation. I understand that certain banks, it the suggestion of Mr. Hoover, are interesting themselves in the matter au6 I hop- that the Federal Revcrve Board will be able to cooper-to an facilitating a soluticn. Cordially yours, (Signed) W. C. McAdoo, Secretnry. 7.1nclosure. DI.41 T!.17F111T OF F TAT], WASHIHOTCN, February The Honornble The Secretnry of the Trensury. Sir: I have the honor to inform you thnt according to reports received by the Department from American Officials in Cuba there exists a situation in connection with the finnAcinE of the sugar crop, which may result in serious economic RV roll ns political difficIllties for both the United Stites nnd the Republic of Cuba. The Department underst-nds that the intornntionsl Sugar Commission has entered into a coutrct with the Cuban Government -Ind with the representntives of the Cuban sugar producers, which provides for a certain price to be placed on sugnr produced in Cuba and also co:aprires arrangements for the transportation of thia sugar to the United Stites. it now appears that on iccount of the lack of tonn-re existing it thir moment, due to conditions broliFht about by the wnr, tht thP sugar cannot be moved with that rapidity which is essential for the sntirfacory finnncinl operations custorvry in these transactions. It is therefore necessary th.tt credits be extended to the sug-r producers based on the sale of the sugir in order that they may continue to. pay the wages of their employees and to meet their other expense.. The Department understands that the various banking institutions of Cuba are unable on account of limited resources, to finftnce the present undertaking and very many of the mils cannot psi for their cane and discharge their on expenses during ihe harvest seasol, under present conditions, nevertheless the cane must be p.Iid for. In the past neither the laborers nor the colones have ever 7inite:' for their lioncr, nnd is they know that the world reeds suFar, the cane must bc paid for or it will not be hrvested. ‘iithout taking into con-ideritirn the serious difficulty which would undoubtedly be occnsicuM in this country, as well as in the countries of the Entent Allies should sug-r production come to an end in Cuba, it is necessary to give careful thought to the fact that if the groat qunntities of laborers, who have come to Cuba from different countries only on account of the harvesting of sugar crop, are not pqid, riots will undoubtedly tr.ke place together with the burning of cane and of sugar mills. Such • situation would most certainly bring in its train political unrest which would, in all probability be fostered by enemy agents who are only too desirous of seizing such an opportunity to embarrass Cuba, the United States and th ,- Entent Allied powers. The Department in bringing these facts to your attention trusts that you may be in a position to talc) whatever steps may be nocessa-y, to aid in arranging for the necessary credit . I have the honor to be Sir, Your obedient servant, (signed) ROBERT LANSING. On motion at 12:45 P. M. the Board adjourned. APPROVED: Secretor
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