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a special meeting of the Aderal .- :Zeserve Board held in the office of the Governor on Thursday, l, at 11 ,June : . ILArdint Hanlin, prelAdiL :r. 4albur, .illis, Liecretary. Lclano, The inute of the r,ectinz the Board held on o afternoon, were read and, Jane ZO, morniij, and june on motion, approved. Gave .or 'trong of the 2ederal officially conveying to the Board serve .n the discount transaction In a .list of , stock banks and the Bank nection with was presented to the of Lngland, Board and not -r inrj; been taken, on Jun apprm. allotments minute was -. ordered .enter d to the off ized repret: otL; th n- iat the ,500,000 or- ,000,000 originally authorized, pl interest. telegram from 7r. 4.1bert :art of 1;ew Orleans asl:• _,..sent Spanish exchange situation, 651 and a •re(lUest of 1.1r4 l'athan rasher for a hearing before the Board on the same subject, were -eresented. Discussion ensued and the 'feelinc; was e:crressed that the matter is really one to bc disposed of by joint action of the 7reasury and State Departments.. on motion, the matter was 1-id on the table for the present. On motion, it las voted that the Governor of the Board telegraph ll 'ederal reserve banks as soon as the bill amending the Federal Ieserve .ct h..d been signed, that, in connection with the letter relating to the new form of consolidated statement, already sent out ander (17,.te of Jane _3, it is the opinion of the Board t'a,..t it woald be conducive to the actual and relative stren1;th of the banks that they, as far as possible, endeavor to keep ,;old reserves behind deposits and notes maintained upon a substantially el.ual basis, this, however, bein merely a suggestion on the p-rt of the. Board. Liner was recorded in the negative. on motion of :r. amlin, i as voted that be asked to spread upon the record his objections to the resolution just adopted. ,c,lordinL;ly statement an the subject as follows: 1.iller submitted a 6r'2 "In eplznzt1on of his vote, 7.1'. presse1 the opinion th.t, in a fair int, ,.'etation , the .ve _ct as of the spirit of the o. Jviee or Ing by Lo_rd should not do %,,rve saL2estion to the 7cder 1 unnecessarily disturb the status ahich the gold had been i*Apoanded with the ?ederal eserve 2;;ents in e..- .shanp :or Ader..,1 reserve notes had acvired. This j; of the nature old, he s%id, had ;(,i there in exof L.. tr.zst fund. It h-d been change or the 2ederal eserve note, giving to those notes a s:ecial _aality and protection. "fader the terms of the ...ct as amended, 71... said, it was, of course, true that this ivpounded ' could be counted -s a r.,.rt of the gold iu,t ederal reserve re_ i_.ed to be mAntainc? tLlal cirs-11-tion. in noo s outstandinL; reserve The .,.ct does not, however, sanction Vie ccuntinf: of j.2.011 gold -L a part of the:ncr-1 fl1.0 _:cets or regj count only serves of the Teaeral aeserv Banks. It banks the as rr. 1: Lilities. It is, no do.tbt, possible for the banks, by availing th(mselves of the right conferred by the act, to "draw down" gold Ath the ?ederal serve .4.gents by depositing with t,lem other eligible security. .ithout raisin:„; any ,juestion as to ahether or not notes secured by llovernnent bonds instead of son'Tr-ial paper, when used as a basis for the issue of :,1 ral reserve notes to aeserve PLAI",cs, -re in keepin_, ith the spirit of the note 1:...sue theory of the Jot, 7r. Tiller vas definitely of the opinform of eligible ion that the substitution of down (Told in drawing of JollatrL1 for the purpose the eserve of holdings order to add it to the gold a.nks' the I'Lc...,erve 2....nks for the sake of improving apgreater a it btu' terent of condition and giving the of ._nse of strength, -:as not in the spirit law the of J,cnt a.Trlments. If it vs the intent reserve at the gold aclqired in c.:-..0h-ne for federal notes should, when in e.:...cess of 40,1 or the notes in acta-1 circulatIon, be treated as a part of the ,;old reserve of the P.J.n37.., the 1-w aoald have s:ecified it 11 e t - • r."),.. of rc 1(1 to jJ1t.': of r, cl- St 0 (-)1(.1 • • 11 • , • • " - 0' yet ,-.• --'• • 1.,1,-•,..,..i. ,_,-.,,, ,, :li,, -..,--, ,t......-: 1 .. -, illin.--, to -,, ,....itil it ..:,:, 1, ,•..,. s ,..„ , f-)- P 1,.'-, - .--L„-,. ., , , - 'et•ri -,•_,_, -1, ' ".- , :1 L”' . `.. "'": to be . : , c.,'-c,,,C1 ;•,-"i' 0 • • --,- L' 3 -,, ',,, j i t.ff . -... ..t 1 ,,-).., !,,..-., -.„t ., of • '‘,C:U . icti„,; t • L.b.e 'ty , .• €A.1 tit the dinner 654 a aPPreoiation of the work aocomplic;hed... . voted that the .Cornitte .on On motion, it Law refer to -Mr.-J. P. •Cottoh, 'throqghOoanoeli the. • ,Ctate bank ./nemters .of 'the .7,..eder1 re_L;erVe,...oystem under the CL-Jyta'.[:•. the • • - z.Aittee to :lotion made by "aim ;2,.nd Invirin!.-Xlether,7r.•lotton! ne. b 1 r(- It ,,'„77! coanzel were•*till're., ported tht serviceL 7r. T7otton of••reltionshi-f . would. 2robab1y.be'reco *nen:del to. the Bord In the no futiare. On !lotion, report of he Comrlittee on ,tff ,. rec,ommendin,7, the .7:!ppro'vra ofa :.,a1 for 7.1r. D. -rmichael, and of 7.ii1cue. , o 110 per month C3 p:.-2r month or both of the l'eder approved. On ilotionz reIort of the 7,lo7,17,ittE on Opertior of Yans 711t4 dioapprovinz of the 7edeml Jleserve.7anl.: the ps.4.7melit of the propou,J ,dividerd of :31 for the per,:r 1 to Jane iod jn1r. O, wa-s adopted. 1Detit1on.• Cron (..ert,i„111 '121:171ers of r rth - asT7in for the removi of qovernor'7old anA Aderai :P.eserve qich, was .eferred to the :',ammittee on Operation the redeml lecerve Ban17 or MinneuP0 10. qovernor Tlardin,7: suested to the .. 7,nard that the 3h should, at ',..7oriln1ttee on Opertion of the some conVenient itc, proceed to :::inneapolis and hold heurinr; which rla/.- 11 complairts corL:orn of the Bank micfat be presentd, with view to slibseacntly makin.a. public its findings in the case. the propo- was iLda ent Lfter diS'cassion on the table for the prese, with the understandina. tht the 1,:inneapolis Oomrlittee would Ma:kE prelimItary reTort on the sitiaL4tIon. On rfteti.n at 12.05 on €daT, Jane 26 t 11 a.m. the Board adjoi::ned, to meet
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