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584 At a regular meeting of the Federal Reserve Board held in the office of the Board at 11.00 a. m. on Tuesday, July 20, PRESENT: Mr. Hamlin, presiding, Mr. Williams Mr. Delano Er. Harding Mr. Willis, Secretary. The minutes of the preceding meetings were approved as follows: Morning meeting of Wednesday, July 14 Afternoon meeting of Wednesday, July 14 Executive Committee meeting of Thursday, July 15. On motion the action of the Executive Committee at . the meeting of July 15 was approved. On motion it was voted that the Governor should refer the recent petition of Mr. H. R. Fowler to the AttorneY General of the United Stated, asking that the Attorney General give special attention to the apparent threat of violent° contained in the latter part of the petition, informing tile Board what action should be taken. The special committee on cotton warehousing, Ur. conHarding,chairman, reported regarding the recent cotton ference at New York as follows: / Mr. Harding, Mr. Delano and Er. Warburg met on 585 July 16 at the Federal Reserve Bank of New York and Governor Strong invited them and a few bankers to have a confidential preliminary talk about moving the coming cotton crop. There were present: Mr. Woodward Mr. Cleverly Mr. Wiggin Mr. Thorn ' Mr. Alexander Mr. Perkins Mr. Hemphill Mr. Norton Mr. Frew Mr. McGarrah. The bankers seemed optimistic, saying that there need be no fear of their being unable to meet the situation directly without the assistance of the ' Federal reserve banks. They strongly approved the 'plan of the Board of encouraging legislation on the . subject of warehouses and especially satisfactory supervision of the same. As to the matter of the price of cotton, the bankers all agreed that this could not be regulated by either the national or the Federal reserve banks, but that satisfactory and safe methods of warehousing and supervising the crop, together with the fact that the Cotton Exchange is open, will insure the sales, although, of course, the matter of the price will have to be fixed according to con- 586 ditions prevailing in the market at the time: They all agreed that the vital question is the facilitating of credits in this country for immediate or deferred shipments. Governor Strong said that the collapse in foreign exchange had already more or less interfered with contracts, and that the matter must be put in satisfactory shape so that foreign credits can be opened here to take care of all purchases made abroad. On motion it was voted that a minute be entered Governor to the effect that the Committee of the Board with Hamlin considered the question of open market operations York with the directors of the Federal Reserve Bank of New York during the time that the Committee was present in New such and discussed the probable effect of the issuance of regulations. On motion the Old Colony Trust Company of BOStOn was admitted to membership in the Federal reserve system, the subject to the conditions laid down in the report of committee which examined its application. On motion the Broadway Trust Company of New York was admitted to membership in the Federal reserve cowsystem, subject to conditions in the report of the mittee examining the application. On motion it was voted that in future no State bank or trust company should be admitted to the Federal reserve system except upon agreement that they undertake to submit the question of establishing any further branches to the Board, for its approval. On motion the recommendation of Chief of Division Broderick approved by the Committee on State Banks relative to the method of examining into the condition of the Fruitgrowers State Bank of Saugatuck, Michigan, was approved, and steps ordered taken in accordance therewith. On motion proposed changes in procedure, to be used in passing upon applications of State banks, were approved as follows: 1. After approval by the Committee on Admission of State Banks, a letter or telegram, with the necessary instructions, shall be sent to the Federal reserve agent. 2. After receipt of an application from the Federal reserve agent, reports digest and recommendation shall be submitted (a) to the Committee on Admission of State banks, for approval; (b) to Counsel, for approval as to legal form of application and as to the legality of suggested conditions; (c) to the Board for final approval. 588 On motion it was voted that each Federal reserve bank be requested to forward monthly reports of earnings and expenses as of the close of business on the last day of each month. On motion it was voted that applications for surrender and allotment of stock in Federal reserve banks, growing out of redistricting operations, be approved as follows: - DALLAS AND KANSAS CITY Merchants & Planters Nat. Bank City National Bank Ardmore National Bank First National Bank First National Bank First National Bank First National Bank City National Bank Mangum National. Bank First National Bank First National Bank National Bank of Commerce First National Bank First National Bank ' National Bank of Verden Waurika National Bank First National Bank First National Bank First National Bank First National Bank National Bank of Hastings State National Bank Farmers National Bank First National Bank First National Bank Marietta National Bank Farmers National Bank Shares 36 Ada, Okla. 33 Altus, Okla. 72 Ardmore, Okla. 18 Berwyn, Okla. 156 Chickasha, Okla. 18 Custer City, Okla. 66 Lawton, Okla. 33 McAlester, Okla. 48 Mangum, Okla. 45 Marietta, Okla. Paula Valley, Okla. 90 36 Pauls Valley Rush Springs, Okla. 22 26 Stonewall, Okla. 18 Verden, Okla. 16 Waurika, Okla. 22 Wetumka, Okla. 41 Altus, Okla. 18 Arapaho, Okla. 34 Okla. Elk City, 18 Hastings, Okla. 15 Heavoner, Okla. 16 Hydro, Okla. 30 Lindsay, Okla. 45 Mangum, Okla. 60 Marietta, Okla. 17 Maysville, Okla. 589 First National Bank Park National Bank Temple National Bank American National Bank Latimer County National Bank First National Bank State National Bank First National Bank Calvin National Bank First National Bank First National Bank Chickasha National Bank Citizens National Bank Farmers National Bank First National Bank First National Bank City National Bank First National Bank First National Bank National Bank of Marlow, State National Bank First National Bank First National Bank First National Bank First National Bank Farmers & Merchants Nat. Bank First National Bank American National Bank First National Bank First National Bank First National Bank of First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Peoples State National Bank First National Bank First National Bank Francis National Bank Farmers National Bank Peoples National Bank First National Bank First National Bank • Shares. Sayre, Okla. 20 Sulphur, Okla. 18 16 Temple, Okla. Wetumka, Okla. 18 Wilbarton, Okla. 18 60 Wynnewood, Okla. Cordell, Okla. 21 Hydro, Okla. 17 Calvin, Okla. 17 27 Alex, Okla. Blair, Okla. 18 Chickasha, Okla. 69 Chickasha, Okla. 54 Cordell, Okla. 18 24 Eldorado, Okla. 18 Grandfield, Okla. Hollis, Okla. 16 Kiowa, Okla. 22 McAlester, Okla. 81 Marlow, Okla. 18 Marlow, Okla. 17 Minco, Okla. 18 Mountain View, Okla. 18 Poteau, Okla. 26 Ringling, Okla. 31 Roff, Okla. 23 Snyder, Okla. 17 Stigler, Okla. 18 Thomas, Okla. 18 Verden, Okla. 16 Waurika, Okla, 17 Addington, Okla. 17 Anadarko, Okla. 36 Ardmore,. Okla. 120 Blanchard, Okla. 30 Comanche,Okla. 18 21 Clinton, Okla. . Custer City, Okla. 18 36 Davis, Okla. Dancan, Okla. 36 Francis, Okla. 18 17 Hammon, Okla. 17 Kiowa, Okla. Spiro, Okla. 18 Stigler, Okla. 36 590 First National Bank First National Bank Walters National Bank First National Bank First National Bank German National Bank First National Bank Stuart, Okla. Walters, Okla. Walters, Okla. Washington, Okla. Weatherford, Okla. Weatherford, Okla. Allen, Okla. Shares 18 18 24 16 18 36 24 PHILEIDELPHIA AND NEW YORK jeacoast National Bank First National Bank Citiznà National Bank Bound Brook National Bank First National Bank First National Bank First National Bank Citizens National Bank Califon National Bank First National Bank First Natidnal Bank Citizens National Bank First National Bank First National Bank Hardyston National Bank First National Bank First National Bank Little Falls National Bank First National Bank Citizens National Bank Farmers &I Merchants Nat. Bank First National Bank First National Bank First National Bank First National Bank National Iron Bank Manufacturers National Bank Peoples National Bank Second National Bank First National Bank Second National Bank First National Bank First National Bank Second National Bank Asbury Park, N. J. 105 45 Belmar, N. J. 15 BlooMsburY; N. J. 36 Bound Brook, N. J. 75 BoUnd Brook, N. J. Bradley Beach, N. J. 17 66 Butler, J. J. 25 Caldwell, N. J. 19 Califon, N. J. 21 East Newark, N. J. 30 Edgewater, N. J. 90 Englewood, N. J. 36 Englishtown, N. J. 45 Guttenburg, N. J. 51 Hamburg, N. J. 20 Hope, N. J. 45 Jamesburg, N. J. Little Falls, N. J. 18 21 Lodi, N. J. Long Branch, N. J. 150 90 Matawan, N. J. 27 Milford, N. J. 53 Millburn, N. J. 90 Montclair, N. J. 240 J. N. Morristown, 150 Morristown, N. J. 450 Newark, N. J. New Brunswick, N.J. 150 180 Orange, N. J. . 660 Paterson, N. J. 210 Paterson, N. J. 180 Perth Amboy, N.J. 180 Plainfield, N. J. 135 Red Bank 591 First National Bank First National Bank First National Bank First National Bank First National Bank Irvington National Bank Peoples National Bank First National Bank Second National Bank Keansbury National Bank Metuchen National Bank Essex National Bank Merchants National Bank First National Bank National Bank of Peoples National Bank First National Bank Peoples National Bank Belvidere National Bank First National Bank Shares Ridgefield Park,N.J. 36 Rockaway, N.J. 18 Spring Lake, N. J. 45 72 West Orange, N. J. Westwood, N. J. 29 Irvington, N. J. 90 'Blairstown, N. J. 45 Dunnelon,N. J. 24 Hoboken, N. J. 240 Keansbury, N. J. 17 Lbtuchen, N. J. 33 Montclair, N. J. 113 Newton, N. J. 114 Secaucus, N. J. 15 Westfield, N. J. 75 Westfield, N. JG 48 Whitehouse Sta., N.J.29 Hackettstown, N. J. 60 Belvidere, N. J. 105 Belleville, N., J. 135 On motion applications for additional stock in Federal reserve banks, were approved as follows: DISTRICT No. 4. First National Bank Monroe National Bank Kenton National Bank First National Bank National Bank of Commercial Nat'l. Bank Tiffin National Bank First National Bank Second National Bank Sabina, Ohio Monroe, Ohio. Kenton, Ohio Glouster, Ohio Delphos, Ohio Tiffin, Ohio. Tiffin, Ohio Wilmington, Ohio Ashland, Ky. 1 1 3 2 3 3 15 3 12 DISTRICT No. 5. Flat Top Nat'l. Bank Clark National Bank Oil Field Nat'l. Bank First National Bank Matewan National Bank Nat'l. Bank of Commerce First National Bank Bluefield, W. Va. Clark, W. Va. Griffithsville, W.Va. Logan, W. Va. Natewan, W. Va. Williamson, W.Va. Worthington, W.Va, 6 1 3 4 2 2 3 592 DISTRICT No. 7. Wabash National Bank labash, Ind. Jhares. 51 DISTRICT No. 8. First National Bank Seymour, Ind. DISTRICT No. 9. First National Bank Amboy, Minn. DISTRICT No. 10. Germania National Bank First National Bank Bartlesville National Bank Ponca City, Okla. Carbondale, Colo. Bartlesville, Okla. 3 3 30 DISTRICT No. 1. Somerville, Mass. Somerville National Bank First National Bank of Smithfield •Slatersville, R. I. 6 1 DISTRICT No. 2. First National Bank First National Bank Peoples National Bank Sherburne National Bank Saranac Lake National Bank National Bank of Genesse River National Bank First National Bank First National Bank Lynbrook National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Washingtonville, N. Y. Tuckahoe, N. Y. Sidney, N. Y. Sherburne, N. Y. Saranac Lake, N. Y. Port Jervis, N. Y. Mt. Morris, N. Y. Rockville Center, N.Y. Marion Village, N. Y. Lynbrook, N. Y. Grand George, N. Y. Dolgeville, N. Y. Caledonia, N. Y. Brewsters, N..Y. Batavia, N. Y 2 1 3 6 3. 1 1 1 6 3 1 6 1 1 DISTRICT No. 4. Farmers National Bank Haviland, Ohio 1 593 • DISTRI3T No. 5. First National Bank Citizens National Bank American Exchange Nat'l. Bank First National Bank First National Bank Silver Springs National Bank DISTRICT No. 6. Radford, Va. Gastonia, N. C. Greensboro, N. C. Tarboro, N. C. Williamson, W. Va. Silver Springs, Md. 3 6 27 3 6 2 , Phoenix National Bank First National Bank Columbia, Tenn. Boaz, Ala. 9 1 Bethany, MO. 3 DISTRICT No. 8. First National Bank DISTRICT No. 11. First National Bank State National Bank Haworth, Okla. El Paso, Tex. 2 21 DISTRICT No. 1. Foxboro National Bank Foxborough, Mass. 1 New Egypt, N. J. York, Pa. Philadelphia, Pa. 1 18 9 DISTRICT No. 3. First National Bank First National Bank Southwark National Bank DISTRICT No..4. First National. Bank Second National Bank First National Bank Peoples National Bank Peoples National Bank 3 6 2 Shelby, Ohio Ravenna, Ohio. Celina, Ohio. Adena, Ohio Lodi, Ohio 4 Raleigh, N. C. Marion, S. O. 15 3 DISTRICT No. 5. Merchants National Bank Marion National Bank 594 Citizens National Bank Ngtional Exchange Bank Union, S. C. Chester, S. C. Shares. 3 3 DISTRICT No. 7. First National Bank Merchants & Illinois Nat'l. Lacon, Ill. Peoria, Ill. 6 120 DISTRICT No. 10. Commercial National Bank Fremont, Nebr. 12 DISTRICT No. 11. First National Bank First National Bank Hugo National Bank First National Bank First National Bank Farmers National Bank Farmers National Bank Citizens National Bank Coggin National Bank Fort Sumner, N. II. Milburn, Okla. Hugo, Okla. Pampa, Texas Oakville, Texas Manor, Texas Lone Oak, Texas Memphis, Texas Brownwood, Texas 1 1 3 3 2 9 1 2 3 Bath, Me. Lakeport, N. H. Claremont, N. H. 1 3. 6 Cherry Tree, Pa. Erie, Pa: New Florence, Pa. 3 30 2 DISTRICT No. 1. First National Bank Lakeport National Bank Peoples National Bank DISTRICT No. 4. First National Bank First National Banx New Florence National Bank DISTRICT No. 5. National Bank of Farmers !4 Merchants Nat'l. First National Bank First National Bank First National Bank Citizens National Bank 1 Chesapeake, Md. 3 Easton, Md. 3 Frostburg, Md. 15 Hagerstown, Md. Hampstead, Lid. Havre-de-Grace, Md. 4 595 First National Bank First National Bank First National Bank White Hall National Bank First National Bank Fourth National Bank National Bank of Farmers National Bank First National Bank First National Bank Citizens National Bank First National Bank Peoples National Bank Shares. New Windsor, EA. 3 Parkton, Md. 3 Upper Marlboro, Md. 3 White Hall, EA. 3 Durham, N. O. 9 Fayetteville, N. C. 2 Greenville, N. C. 4 Louisburg, N. C. 3 Marion, N. C. 2 Morganton, N. O. 3 Anderson, S. C. 6 Bishopville, S. C. 4 Rock Hill, 3. C. 6 DISTRICT No. 6. First National Bank First National Bank First National Bank American National Bank Cumberland Valley Nat'l. Traders National Bank Plant City, Fla. Lavonia, Ga. Vidalia, Ga. Knoxville, Tenn. Nashville, Tenn. Tullahoma, Tenn. 3 1 1 1 16 2 Allendale, Ill. Percy, Ill. Chillicothe, Mo. 1 1 6 Atwood, Kans. 21 Dorado, Kans. 2 1 DISTRICT No. 8. . First National Bank First National Bank First National Bank DISTRICT No. 10. Farmers National Bank El Dorado National Bank On motion applications for the surrender of stock in Federal reserve banks, were approved as follows: DISTRICT No. 2. First National East Worcester Tiega National National State Bank National Bank Bank Bank East Islip, N. Y. 1 East Worcester, N.Y. 2 Owego, N. Y. 3 Troy, N. Y. 45 596 DISTRICT No. 4. First National Bank Fourth National Bank Canonsburg, Pa. Cadiz, Ohio. Shares. 30 9 DISTRICT No. 7. First National Bank Oregon, Ill. 48 DISTRICT No. 11. First national Bank Eunice, La. 5 All the foregoing being duly recommended by Mr. Harding as a special committee. Mr. Williams submitted a memorandum relating to the estimated cost of examining national banks, and after discussion and consultation with Counsel,'it was voted that on and after July 1, 1915, examinations of national bank should be made for a minimum fee of .25, plus two cents per thousand dollars of assets, provided that Counsel shall obtain from the Comptroller of the Treasury assent to the proposed plan as being in accordance with the requirements of law. On motion it was voted that the Secretary be authorized to inform Federal Reserve Agent 1:Aller in answer to a letter from the latter, that Regulation 0 need not be distributed to member banks, if, in his judgment, it is undesirable to do so. 597 The 3ecretary of, the Board having submitted a letter from Federal Reserve Agent Bosworth of Chicago relative to methods of adjusting his note account with the Federal Reserve Bank of Chicago, was directed that it, with other papers on the same subject now in possession of Mr. Delano, be transmitted to Counsel with a request for his opinion as to the legal aspects of the case. A report relating to the controversy between the Federal Reserve Banks of Dallas and Kansas City regarding exchange charges, was read, but it was informally agreed to take no action pending the receipt of a report from Federal Reserve Agent Tenison regarding the whole matter. On motion a letter from Federal Reserve Agent • Miller with reference to the restrictions on real estate loans under certain conditions by national banks, was referred to Counsel for an opinion as to the legal aspects of the matter. Applications for Federal reserve notes duly recommended by the Committee on Issue and Redemption, were approved as follows' IWIJAS CITY $10 denomination 40o,000 598 =LAS 42,450,000 in following denominations: 5 10 20 50 denomination denomination denomination denomination 4760,000 760,000 480,000 400,000 Letters from the Federal Reserve Bank of Dallas requesting a further printing of Federal reserve notes, were ordered referred to the Committee on Issue and Redemption. .In answer to a letter from Federal Reserve Agent Perrin regarding the obtaining of specimen signatures from member banks the Secretary was instructed to suggest that Mr. Perrin arrange with the several banks to furnish them direct. In answer to a letter from Deputy Federal Reserve Agent McCaleb asking for information regarding the dividends of member banks, the Secretary was instructed to say that no call for this information was contemplated for several months to come; but if it is desired to obtain these data with respect to any particular bank from the old records it would be well that he apply direct to the member bank. On motion it was voted that the Secretary of the Board communicate with all supervisors of banks in 599 the several states, and request from each of them a statement showing what proportion of state bank reserves is held in cash in vault; what proportion is held on deposit in other state banks and trust companies; and what proportion is deposited in national banks as of the latest date. A letter from Hon. A. S. Burleson regarding the selection of a successor to Mr. E. 0. Tenison, was ordered acknowledged, and laid on the table until the time comes for the selection of Er. Tenison's successor. A letter from Director Ralph of the Bureau of Engraving and Printing was ordered referred to the Committee on Issue and Redemption for report. A letter from Federal Reserve Agent Perrin respecting the payment of a salary to Deputy Federal Reserve Agent Claud Gatch was laid on the table. The application of the Federal Reserve Bank of Kansas City to buy :,185,000 of the City of Springfield, Mo., warrants, and the application of the Federal Reserve Bank of Philadelphia to hold 55,000 out of 090,000 of Atlantic County, N. J., warrants, were referred to the Executive Committee with power to act. 600 Questions relating to the handling of mutilated Federal reserve notes, were referred to the Committee on Issue and Redemption for report. Inquiry from the Old National Bank of Spokane, Washington, relative to its status under the provisions of the Clayton Act, was ardered referred to Counsel for an opinion. On motion the following opinions of Counsel were ordered released for publication in the forthcoming number of the Federal Reserve Bulletin: 1. 2. 3. 4. No. 164 as to drafts payable on arrival of trade* No. 98 as to "taxable property". No. 284 (June 25, 1915) relating to payment of dividends. No. 273 relating to surrender of capital stock when change in surplus is made. On motion at 1.00 p. in. the Board adjourned to meet at 11.00 a. in. on Wednesday, July 21. Secretary. APPROVED: Chairman.
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