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() _ At a regular meeting of the Federal Reserve Board held in theoffice of the Board at 11:15 A.M. on Monday, June 10, 1916, PRE6ILNT: Mr. Harding, presiding, Mr. Hamlin, Mr. Warburg, Mr. Delano, Mr. Miller, Mr. Willis, secretary. The minutes of the meeting of the Board held on June 7th were read and on motion approved. The minutes of the meetings of the Gold Export Committee held on June 8th and 10th were presented and on motion approved and the action therein set forth ratified. Mr. Harding read a letter from the President dated June 7th re the exchange agreement of Musher Company. Mr. Warburg stated to the Board that control of Italian exchange had been taken over by the Division of Foreign .Exchange under instructions of the Treasury Department. Governor Harding presented business as follows: A letter from the Eighth National Bank of Philadelphia re loss due to abrasion of gold coin, asking 1018 that the Federal Reserve banks be required to bear the cost; voted that the Governor write the Federal Reserve Bank of Philadelphia suggesting that it absorb the charge. Letters relating to the proposed Jacksonville and Birmingham branches and by-laws for them, raising questions as to the discount and collection powers; read and explained by Mr. Harding, and on motion the question of powers referred to the Ltlanta Committee for report and recommendation. A letter from Federal Reserve Agent :.:artin re dividends to June 30, 1918 at Jt. Louis; read and referred to Committee No. 1. At this point Lis. il1is entered the meeting. On motion it was voted that the Federal Reserve Bank of Philadelphia be authorized to pay u dividend at the rate of G to June 30, 1918. Dividend applications from Kansas City and Boston were referred to Committee No. 1 with power to grant. It was agreed that banks authorized to pay dividends be authorized to "declare and pay that part of the 6,-,3 annual dividend for the year 1918 which shall have accrued on June 30, 1918." A letter from Mr. Charles A. Hinsch re the legal status of acceptances in certain cases; read and referred to Committee No. 2. A letter from Acting Federal Reserve Agent Zlliott re state bank membership in California; read and noted; also a letter from Yr. Elliott re a scale for interest on bank deposits; read and on motion voted to inform Mr. Ealiott that the Board would prefer a return to the old 23 rate but that if this is impossible the Board would be glad to see the sliding scale of interest rates on deposits prevailing in other cities adopted also in San Francisco. On this motion the vote stood as follows: Negative. Affirmative. Mr. Mr. Mr. Mr. Mr. Mr. Miller Harding Warburg lliams Hamlin Delano Mr. Harding reported the result of his visit to New York on June 8th. A committee which had been named by the American Cotton Manufacturers Association to consider the use of the acceptance in financing cotton had met on the eighth. The meeting showed that the northern men favored acceptances but the southerners opposed. He had, however, secured a unanimous vote in favor of the use of acceptances in financing this year's crop. A letter from Governor Seay re the deposit of proceeds of taxes with the banks and the discount requirements of the Richmond district for the coming season; read and noted, the Governor to signify the general concurrence of the Board in the views e ssed. Discussion of the question of inducing investors to absorb short term Treasur,7 certificates and the Board's views with respect thereto ensued but no action was taken. A letter from iederal R serve Agent Ramsey (Dallas) re the eligibility of local road bonds to protect government deposits; discussed and referred to Assistant Secretary Leffingwell. .1. letter from the 2ederal Reserve Agent Heath re gold in local banks; read and noted. A letter from Federal Reserve Agent Heath re gold in local banks; read and noted. A letter from Commissioner Hitt of Idaho re -1 0 a connection with the federal Reserve System; referred to Committee No. 1. A letter from the Federal Reserve Bank of New York re large lines of packing house paper and comments of examiners thereon as "capital loans";read and noted. A letter from federal Reserve Agent Austin re a visit of Governor Harding to Philadelphia on June 18th to meet the officers of state institutions; read and noted. Corresoondunce between _Assistant Secretary Leffingwell and the federal Reserve Bank of Atlanta re "float" on cheeks for excess profits and income taxes; presented and noted. at this point presented correspondence re the exchange situation at Dallas as affected by the operations of the New York and Chicago banks; referred to Committee No. 1. L letter from Assistant secretary Leffingwell re deposits of gold by the Treasury in Federal Reserve banks; read and noted with appreciation. A letter from Federal Leserve Agent Ramsey (Dallas) re the conditions of membership of The Texas Bank & Trust Company in t.:1 Paso was read and referred to Committee No. 1. A letter from Federal Reserve Agent Eartin recommending the establishment of a Lemphis branch; read and laid on the table until June 12th. A letter from Federal Reserve Agent Austin re purchase of the warrants of the Porough of Stone Harbor, New Jersey, was read and it was agreed that the warrants are not eligible; the Secretary to advise accordingly. A letter from H. C. Cutting, addressed to the President, was presented and ordered circulated. A memorandum of Counsel re the eligibility of notes secured by War Savings stamps for rediscount was read and referred to Committee Uo. 3. On motion C. E. Tidwell of the Federal Reserve Bank of Atlanta was authorized to make examinations of state banks in the Atlanta district. Reports of Committees were presented and approved as follows: No. 1. Dated June 10th, recommending approval of R. Li. O'Hara as special examiner in the New York district at his present Salary. No. 2. Dated June 10th, recommending admission of state institutions upon terms named by the Committee in each case as follows: Mondamin Savings Bank, Mondamin, Iowa, 24 shares in the Federal Reserve Bank of Chicago. LcCornick & Co., Bankers, Salt Lake City, Utah, 432 shares in the Federal Reserve Bank of Sun Francisco. Dated June 5th, recommending a form of reply to an inquiry as to the proposed membership of a state bank located in Benson, Nebraska. Mr. Hamlin offered for file a published statement by Sinclair Kennedy of Boston re the attitude of Boston interests toward saving and thrift; noted and passed to file. The Secretary was directed to ask Mr. F. I. Kent to furnish the Board the form of inquiry re foreign exchange profits which he has submitted to eastern banks. No. 3. Dated June 8th, re the status of an employee of the Boston Federal Reserve Bank who had stolen certain Liberty bonds, recommending that the Secretary make inquiry as to facts. Various dates, recommending action on fiduciary powers applications as follows: First National Bank, 'Anamac, Ind. - ordered held; Lluskogee National Bank, Muskogee, Okla. " First National Bank, Englewood, Ill.- approved powers as Trustee, Executor, Ldministrator and Registrar. Third National Bank, Walla 7.alla, Wash.granted powers as Trustee, Administrator and Registrar. First National Bank, Amarillo, Tex.- granted additional powers as Administrator. Dated June 1st, re the eligibility of cold storage paper and a minority report on the same discussed and ordered referred back to Committee To. 3. Mr. liarburg read a resolution of the Raw Silk Association naming cash or trade acceptances as the future basis of their sales. Cn motion at 1:10 P.M., the Board adjourned. APPROVED: Secretary, Chairman.
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