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At a meeting of the lixecutive Committee of the Federal Reserve Board held in the office of the Board on Tuesday, July 1919, at 11 A.M., PRESET: The Er. Mr. Er. Governor ;Arauss Hamlin Chapman, Assistant Secretary. The Governor reported rediscount transactions, pursuant to authority heretofore vested in him: member bank promissory notes secured by Government obligations; rate 4 on paper secured by certificates of indebtedness and 414; on paper secured by Liberty bonds and Victory notes, as follows: Bank Rediscounting Date July July July July July July 15th 16th 17th 17th 17th 17th July 21st Richmond Dallas Richmond Dallas Richmond Philadelphia Richmond Amount With Chicago Chicago Chicago Chicago St, Louis Chicago (Minneapolis (Chicago Maturities 5,000,000 3,000,000 10,000,000 3,500,000 5,000,000 20,000,000 11-15 days 15 days 11-15 days 15 days 12-15 days 11-15 days 15,000,000 5,000,000 15 days Approved. The Governor reported the purchase of special 27,; certificates of indebtedness of the United States for deposit with the Comptroller of the Currency as collateral for Federal Reserve bank notes, as follows: Date For Federal Reserve Bank of: Chicago, Boston, Boston, Uow York, Noted June June June June Amount 15,1919 ,;11,000,000 500,000 16,1919 4,020,000 17,1919 1,000,000 21,1919 Letter dated July 14th from Deputy Uovernor McKay of the 2oderal Leserve Bank of Chicago, inquirim: whether or not acceptances of the Iderchants Loan & Trust Company of Chicago, drawn by commercial export houses and secured by drav,ors' documentary bills on foreign buyers would be eligible for reviiscount, with the understanding that they could be renewed once or possibly twice. The Governor submitted for approval, draft of reply by him under date of July 21st. Approved as amended. Letter dated July 18th from John A. Garver of the firm of Znearman &Sterlin of 7ow York, suggesting the ad- visability of 4 further amendment of :',ection 5154 of the United States Revised Statutes as amended by Section 8 of the Vaderal Reserve Let, so as to provide expressly that trust companies organized under the laws of various states may become national banking associations upon complying with the provisions of said sections, and ezpecially so as to provide that upon conversion into a national bank, the institution shall continue to possess all the powers and privileges which it had previously possessed ac a trust company. rkeforred to Governor for report after consultation with General Counsel. 6trauss stated that the 2ederal Reserve Bank of -4New York desired to know whether or not a proposed credit nt by the National City Bank of rew York to the Omsk Governme neutral amounting to i15,Q(j0,000 to be secured by bar gold in a port, with a 5,1 margin over the amount of the credit, the proceeds of which to be used for exports from the United ' acStates to Vladivostock c(;uld be put in terms of bankers ceptance credit. Voted that the Federal :eserve Bank of New York be informed that the Board does not 5ee how bills drawn under the suggested transaction could be made eliible; that the transaction would seem to be one that should be handled. through the investment market and not by means of commercial credit. Letter dated July 15th from Chairman of the Federal 7.eserve Bank of San Francisco, enclosing correspondence with respect to export bills of lading. Ordered referred to the United States Railroad Administration. Applications of the follov;ing banks for authority to accept drafts and bills of exchange up to 10U, of their capital and surplus, under the provisions of Section 13 of the Federal Reserve Act: City National Bank, Bridgeport, Conn. First National Bank, Waco, Texas, Lamar State Bank & Trust Co., Paris,Texas. Approved. Application of the First 7ational Bank, El Paso, -4ge Texas, for authority to accept drafts and bills of exchan next reup to 10074 of its capital and surplus was deferred until port of examination is received. Letter dated July 16th from the Acting Director of the Division of Foreign xchange, submitting for approval out- the work line of procedure with respect to the termination of of that Division. Referred to Secretary with power. Letter dated July 16th from the Secretary of the War e Trade Board, enclosing copy of General Enemy Trade. Licens 1919, auissued by the War Trade Board under date of July 14, thorizing the resumption of trade between the United States and Germany. Noted. Letter dated July 16th from the Chairman of the Federal Reserve Bank of New York with reference to collection charges imposed by the New York Clearing House Association? Ordered circulated. Letter dated July 17th from the Acting Secretary of State, submitting copy of report from the American Consul field General at Zurich, Switzerland, in re Switzerland as a for American banks. Ordered circulated. -5- Uemorandum by Secretary dated July 16th in re the reserves held against outstanding acceptances by ForShawmut Corporation of Boston, and by the Park-Union eign Banking Corporation of yew xork City. voted to approve the following collateral as security for outstanding acceptances of the Shawmut Corporation of Boston: 4-3/4T0 U. 6. Victory Loan, 4 ,4-1/ bonds gold Baltimore & Ohio convertible Refund River New York Central & Hudson ing and Improvement mortgage bonds,4-1/2 Pennsylvania Railroad general mortgage 5; bonds, voted to approve the following collateral as security for outstanding acceptances of the Park-union Foreign Banking Corporation of New xork: State of New lark bonds, 1961; Province of Ontario bonds, 1919. Llemorandum by Secretary dated July 18th, recommending that, effective August 8th, member banks now submitting weekly condition reports on form 51 be requested to report separately the item "Loans secured by stocks and bonds other than United States securities". Letter dated July lbtn from the Chairman of the Federal Reserve Bank of Philadelphia, advising that the Board -6of Directors of that Bank desire to inagurate the practice of having portraits painted of the uovernors and Chairmen of the Board of Directors of that Bank,' to be hung in the bank building. Referred to the Governor for a negative reply. Memorandum by Secretary dated July 17th, recommending approval of increases in salaries of employees of the Federal Eeserve Bank of Minneapolis, effective July 1, 1919. Approved. Letter dated July 11th from Mr. J. Bolinger, Vice-President, National Shawmut Bank of Boston, with further reference to the question of accepting drafts for the purpose of creating dollar exchange in Switzerland. Referred to the uovernor for reply. Letter dated July 15th from the Chairman of the Federal Eeserve Bank of Atlanta, recommending approval of increases in salaries of employees of the vow Orleans Branch of the Federal Eeserve Bank of Atlanta, effective July 15th. Iv -7Approved. Letter dated July 15th from the Chairman of the rederal Reserve Bank of Kansas City, recommending approval of increase in salary of C. Agent, from Boardman, Assistant iederal Reserve 4,uSO to „:;4,800 per annum, effective July 1, 1919. Approved. Lemorandum of Yr. Jacobson dated July 21st, submitting copy of letter from the American Minister at Berne, Switzerland, in re proposed establishment in Switzerland, of a clearing house bank of the world. Referred to the Governor for reply. Letter dated July 15th from Chairman of the Federal Reserve 3ank of San Francisco, advising of the appointment of the following officers: Head Office: Ira Clerk, Assistant Deputy ',;overnor; is 7% Holman, Assistant Cashier. Portland Branch: Clifford L. Lumping, Manager; R.3. '::est, Assistant Cashier. Seattle Branch: D. L. Davis, Cashier; C. A. Bemis, Assistant Cashier. Spokane Branch: Lvan Berg, Assistant Cashier. Sale Lake City Branch: 2au1 i.. Lee, Assistant Cashier. Noted. -8The following reports were submitted: Dated July 22d, 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 July 16th (3 reports) recommending changes in stock A federal reserve banks as set forth in the auxiliary minute book as of this date. Approved. . Dated July 21st, recommending a)proval of the employment of William J. Ogilvie as stenographer and typist in the Gold Settlement Division at a salary of 1,440 per annum, effective July 23,1919. Approved. Dated July 15th, recommending approval of the appointment of John J. Hurley as Clerk in the Division of Reports and Statistics at a salary of ..Fe1,500 per annum, effective upon reporting for duty. Approved. Dated July 2lat,reporting the employment of R. A. Bryans as stenographer and clerk in the office of the Secretary at a salary of $1,500 per annum, effective August 1st. Noted. 'Lemorandum by General Counsel dated July 22d, submitting for approval draft of letter for signature by the Governor, addressed to the Continental Guaranty Corporation, advising that acceptances of the kinds set forth in the plan submitted by that Corporation would be eligible for discount by federal eserve banks. Approved. -9memorandum by Secretary dated July 21st in re drafts drawn by the Park-Union Foreign Banking Corporation in excess of 10 per cent of its capital and surplus. voted. Letter dated July 14th from Deputy Governor Attebury of the Federal heserve Bank of St. Louis, submitting pamphlet containing a speech by M. Wallace Simmons, advocating par collections, with suggestion that the same be transmitted to banks and business men. Voted that the Governor advise the Chairmen of all Federal Reserve banks that the Federal Reserve Bank of St. Louis is circulating such pamphlet, which might prove useful in their campaigns for additional par points. voted that the vice-vovernor and Statistician be authorized to prepare and suomit a review of the month for publication in the August 1, 1919 Federal Reserve Bulletin. memorandum by the Secretary dated July 12th, recommending approval of salary increases of officers and employees of the Federal Reserve Bank of Ransas uity, as recommended by the salary committee of that Bank. Approved. The vice-trovernor stated that due to misunderktanding of the conditions of the lifting of the restrictions on the export of coin, bullion and currency, certain Bussian roubles -10to the value of approximately ;200,000 had been snipped to Pacific uoast ports. He stated that he was iniormed of tne shipments by the Acting Director of the Division of eoreign Excnange by telegram dated July 21st, and that, in view of the fact that the roubles had already been shipped, he nad authorized the licensing of sucn imports and desired approval of his action in this respect. Approved. At 12-50 P.M., the meting adjourned. Assistant Secretary. Approved:
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