The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
At a reuular meeting of the Federal Reserve Board held in the offize of the Board on Tuesday, June 15, at 11.00 a. m. PRUMT: Mr. Hamlin, presiding, Mr. Warburg Mr. Delano Mr. Harding Er. Willis, 0ecretary. The minutes of the meeting of Friday, June 11 were read and approved. The minutes of the meetings of Thursday, June 10 were read, and approval suspended pending a fuller meet lug of the Board. The application of the Cedar Rapids National Bank of Cedar Rapids, Iowa, for power to exercise the functions of executor, trustee, etc., was, on recommendation of Mr. Harding and.11r. Williams, placed on the suspended list. Applizations for additional stock in Federal reserve banks, totaling 147 shares, duly recommended by Mr. Harding, were approved as follows: Shares. DISTRICT No. 1. First National Bank Van 3uren, 17 Cicero, Ind. 17 DISTRICT No. 7. Citizens National Bank 504 Shares. DISTRICT No. 10. First National Bank Commerce, Okla. 9 Leonardtosn, Ed. 3 ADDITIONAL DISTRICT No. 5. First Nat'l Bank of St. Eary's DISTRICT No. 6. American National Bank Snell National Bank Central National Bank First National Bank Farmers & Merchants Nat'l. Bank First National Bank First National Bank. 15 Tampa, Fla. Winter Haven, Fla. 3 New Decatur, Ala. 1. 1 Scottsboro, Ala. 3 Enterprise, Ala. 6 Fayette, Ala. Et. Pleasant, Tenn.' DISTRICT First National Bank First National Bank , First National Bank First National Bank Des Moines National Bank Fennimore, Wis. Oregon, Wis. Danville, Ind. Doon, Iowa Des Eoines, Iowa 1 4 2 2 21 DISTRICT No. 8. England National Bank Little Rock, Ark. 4 DISTRICT No. 9. First, National Bank First National Bank .First National Bank First National Bank Security National Bank 3 Plaza, N. Dak. 1 Seymour, Wis. 1 Ironton, Minn. 2 Chatfield, Minn. Waterto.;/n, S. Dak.30 stool Applications for the surrender of capital in Federal Reserve banks, totaling 340 shares, duly reoorl' 505 mended by Harding, were approved as follows: DISTRIT No.. 8. First- National Bank Iuka, Miss. 16 Greeley, Colo. Cozad, Nebr. 72 45 DISTRICT No. 10. city National Bank First National Bank No.. 12. 100 Berkeley, Cal. Coeur d'Alene, 35 Idaho. The Jecretary of the Board presented the recom- Berkeley National Bank First National Bank mendation of Federal Reserve Agent 7ellborn of Atlanta in favor of granting to the :Thitney-Central National Bank of Hew Orleans, authority to accept drafts and bills.of exchange groaing out of transactions involving the importation and exportation of goods, to an amount not exceeding the capital and surplus of the said bank. On motion tho application was approved, and the Secretary directed so to • notify Mr. Wellborn. On motion the report of Chief Examiner Broderick relative to the condition of the Federal Reserve Bank of 3an Francisco, was referred to Mr. Harding and through him to*the Committee on Audit and Examination. On motion the application of the Federal Reserve Bank of Kansas City for :,000,000 in Federal reserve notes, 506 was, on recommendation of the Committee on Issue and Redemption approved as follows: 5 denomination 2,000,000 On motion the application of the Federal Reserve Bank of Cleveland for Federal reserve notes to the amount of :)1,000,000, was, on recommendation bf the Committee on Issue and Redemption, approved as follows: 5 denomination ft 10 c)480,000 520,000 The Secretary of the Board presented the paPor9 transtransmitted by Counsel relative to the technique of ferring member banks from one district to another in accordance with the redistricting decisions. Counsel After discussion of the plan prepared by of and also the plan presented by the Federal Reserve Banks New York and Philadelphia, jointly, it was, on motion, v°ted to refer the whole subject back to Counsel for further practicable. vestication and report at as early a date as branch On motion the question of establishing a bank at New Orleans was tabled for the time being, the mittee being not yet ready to report. ,/ Mr. Warburg presented a report with reference to French the proposed plan of operation by a syndicate of bankers, which had been presented by Brown Brothers, 90135 5047 that he thought the proposal went in some respects rather too far, and suFf,esting that there ought to be a definite time within which the proceeds of drafts drawn by the French bankers could be used. Discussion ensued, and the documents relating to the matter were placed in the hands of Mr. Hamlin for further study, it being understood that a letter drafted by Mr. Warburg, and included among those documents, should be transmitted without further action by the Board, unless some objection appeared. On motion Harding was appointed in the place of 1.1r. Miller on the Committee of Issue and Redemption, his duties to continue during Mr. Miller's absence. The report of a committee appointed to consider and re-draft instructions for Federal reserve agents, was read to the Board. After discussion the report was refer- red back to the committee aforesaid for further revision. The Secretary of the Board presented resolutions providing for an assessment of one tenth of one per cent on the full paid capital stock of Federal reserve banks, for the purpose of providing a fund for the expenses of the Board during the six months ending December 31, 1915. Ile also presented a letter and accompanying press notice 508 relative thereto. On motion the documents aforesaid were adopted, the resolution for transmission to Federal reserve banks reading as follows: MMUS, under Section 10 of the Act approved December 23, 1913 and known as the Federal Reserve Act, the Federal Reserve Board is empowcqed to levY semi-annually upon the Federal reserve banks in proportion to their capital stock and surplus, an assessment sufficient to pay its estimated expenses including the salaries of its members, assistants, attorneys, experts and employees for the half year succeeding the levying of such assessment, together with any deficit carried forward from the preceding half year, and WHERH1AS, It appears from estimates submitted ana considered that it is necessary that a fund equal to the one-tenth of one per cent of the capital stock of Federal reserve banks be created for the purposes hereengraving inbefore described, exclusive of the cost of and printing Federal reserve notes. to THEREFORT!1, 132. IT R330MD, That pursuant Resel??.. the authority vested in it by law, the Federal Jou' several the Board hereby levies an assessment upon of -tenth one oral reserve banks of an amount equal to banOt one per cent of the total capital stock of such ze4 and the Fiscal Agent of the Board is hereby auth0r1 to collect from said banks such assessment and execut° in the name of this Board a receipt for payment maact°4 Such assessment will be collected in two instalment5 v one-half each; the first instalment to be paid on Jull 1st and the second half on September 1st, 1915. row, certain lot° The Secretary of the Board presented of tjae ters from Federal reserve banks proposing an extension functions of the Gold Settlement Fund in such a way LW t0°'. 131.° Federal rea. vido for the clearing of national bank notes and 09 serve notes. After discussion the letters aforesaid. :ere referred, on notion, to the Committee on Relations ith Treasury Department (1.1r. Delano, chairman) for further investi,,:ation and for communication aith the banks in question. The Secretary of the Board Ixesented the question of calling for complete salary lists from all Federal reserve banks that had not thus fur been presented. On motion the Secretary was authorized to call for such lists. The Secretary presented. a draft of a proposed change in the form of Regulation G relating to the increase and decrease of capital stock in Federal reserve banks. On motion the said regulation was adopted, and. the Secretary Was directed to issue it, accompanied by a short circular stating the reasons for introducing the change into Regulation G. The resolutions transmitted by the Federal Reserve Bank of San Francisco relative to the policy followed by that bank in passing upon applications for .power to exercise the functions of executor, trustee, etc., were read and noted by the Board. A cernunication from the Church Hill Bank of Richla°11,(19 Ta., another from the Peoples Trust and Savings Bank • of Clinton, Iowa, and a letter from WM. J. Barstow, Secretary of the ranheim Building and Loan Association, relative to membership in the Federal reserve system, were, on motion referred to the Committee on State Banks, 1-larding, Chairman. A letter from Governor Rhoads of Philadelphia, favortransmitting a resolution of his board of directors ing the establishment o.f a ten day rate of discount, was being' read to the Board and laid on the table for the time the A memorandum from the Statistical Division of the Board, relative to uniformity of practice in figuring maturities on commercial paper, having been read, it was, °I1 motion of Harding, voted that a letter be sent to each banks obFederal reserve agent asking that Federal reserve serve, 30 ce far as possible, the New York rule with referen referred to the figuring of maturities, such letter to be back to the Board for approval. Bankers' A resolution adopted by the New Jersey d Association expressing approval of the action of the Boar Disin transferring northern New Jersey to Federal Reserve trict No. 2, was read to the Board and noted.' A letter from Er. J. A. Broderick, Jhief read to tile relative to his movements in the near future, was to write Board, and the Secretary of the Board was directed 5-11 . and telegraph him stating that the Board thinks it best that he and his staff should return to Washington as soon as the examination of the Federal Reserve Bank of Dallas, and a 'proposed conference at Kansas City, have been completed. Letters from Federal Iteserve Agent Nills and Governor Fancher of Cleveland asking for rulings on certain types of commercial paper were presented to the Board and, on -,tion, referred to the sub-committee on commercial paper. A letter from the 7,ational Bank of Commerce of littsbuiT, Kansas, asKi ,;* the date when bonds can be con- verted into 3; bonds, was referred to the Corilittee on helatio iith the Trm-Jqry Department ( IY,r. Delano, Chairman) with instructions to obtain a definite ruling on the point raised in the letter. The iecretary of the Board reported the facts regarding the 1)resent method of obtaining information concerning the turning in of new reports as to the condition of member banks which have besn placed on the suspended list of a_ nts for executor and tr 3tee powers. , presented the draft of a letter to !"/.. *Varburp:, Bernhard, Jcholle & Co. relative to acceptances, accompanied by a memorandum from Counsel on the subject. The 3ecretary was directed to transmit a reply corresponding therewith to 7.7essrs. Bernhard, Scholia Co. and to the Federal Re- serve Agent of New York... The Secretary of the Board presented an application of a member bank for information regarding the salary paid at the Federal Reserve Bank of Atlanta. On motion it was voted that the query be referred to the Federal Reserve Bank of Atlanta. On motion at 1.15 p. m. the Board adjourned to meet at 11 00-a. in. on Thursday, June 17. APPROVED: Chairman.
@FedFRASER