Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, June 17, 1915, Volume 2, Part 1

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513

At a regular meeting of the Federal Reserve
Board held in the office of the Board at 12.05 p. m. on
Thursday, Juno 17,
PRE3ENT:
•

Hamlin, presiding,

Li.. Williams

•

Delano

Mr. iarburg

:Tr. Mills, Jecretary.
The minutes of the meeting of Tuesday, June 15,
at 11.00 a. m., were read and approved.
The 3ecretary of the Board presented the minutes
of the meeting of the Executive Committee on VedneskhLy,
June 16, at 1.00 p. m. and of Thursday, June 17 at 11.10 '
a. m.

On motion the action taken by the Committee at the

second meeting aforesaid was approved.
LA*. 7arburg presented the draft of a plan for
the establishment of a branch bank at Hew Orleans, and
some discussion was given to the details of the proposed
scheme.
•

Warburg submitted a letter from

J. P. Cotton

With reference to certaid rulings of the Comptroller of the
Ju?renoy, which had been brought to the attention of the Board
by Mr. D. CI. Ting of the First :Tational Bank of Boston,
Cotton 3u7:estinr; that it might be advisable to see Ix. 7:ing




514




regarding the policy to be followed.
The Governor of the Board presented a letter
from

r. J. P. Cotton holding that, under Section 5200

Revised Statutes of the United States, a bank is not
lending money to an individual when it accepts a bill
protected by actual value, and held that it may accept
surplus
to an amount more than 10,4J of its own capital and
loan
on similar transactions without being subject to the
limitation of 1071.

After discussion the letter of

Mr.

Cotton was referred to Lir. Delano, 7.:r. Warburg and Mr.
Williams as a special committee to consider it.
On motion the Executive Committee with the
Comptroller of the Currency as an additional member for
representathis purpose, were authorized to meet with the
tives of the New York and Philadelphia banks on Friday,
the
June 18, for the purpose of reaching an adjustment of
norther°
division of expenses growing out of the transfer of
New Jersey banks.
elected
On motion it was voted that Mr. Harding be
'
of J1111
a member of the Executive Committee during the,montho
the
August and September, LIr. Warburg's term expiring at
of June.
to Me4
On motion at 1.00 p. m. the Board adjourned
on Tuesday, June 22, at 11.00 a. m.

APPROVSD:

Secretary.