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392 At a regular meeting of the Federal Reserve Board held in the office of the Governor at 11.30 a. n. on Friday, May 14, PRZSMIT: Mr. Hamlin, presiding, Williams Mr. Warburg Mr. Miller Mr. -mils, Secretary. The minutes of the meeting of Friday, May 7, were read and approved. On motion the Farmers National Bank of Valparaiso, Indiana, was granted the right to exercise the functions of executor, trustee, etc., the same having been recommended by Mr. Harding and Mr. Williams, On motion the First National Balk of Albany, N. Y69 was granted the right to exercise the functions of registrar of stocks and bonds, the same being recommended by :Ir. Harding and Mr. Williams. On motion the application of the First National Bank of Brazil, Indiana, for power to exercise the functions of trustee, executor, etc., was reforred back to the Comp troller of the Currency fo7 further investiration. In the absence of Mr. Harding, a number of fresh apolications for the right to exercise trustee and executor 393 powers received from Federal reserve agents and passed' upon by Counsel of the Board, were referred to the Comptroller of the Currency. On motion .an application of the Federal Reserve Bank of New York for an issue of Federal reserve notes aggregating ;P,900,000, duly.recommended by the Committee on Issue and 'Redemption, was approved as follows: :A. denomination 10 20 :A,000,000 1 1,000,000 900,000 On motion the Board' granted the applications of the following named banks to accept drafts and bills of exchange having six -months sight to run, to an amount not exceeding the capital and surplus of the respective institutions: Boston, Pass. National Shawmut Bank Crocker National Bank San Francisco, Cal. Anglo E: London-Paris Nat'l Bk.San Francisco, Cal. On motion it was voted that Counsel of the Board be officially requested to prepare an opinion relative to the Loris of investment available to national banks acting as trustee, executor, etc. The iiIxocutive Jornittee of the Board reported that it recommended that the Bureau of Engraving and Printing be instructed to rroceed at 'lull speed with the prearation and printing of Federal reserve notes. On motion the recomendation was adopted 394 and ordered carried into effect. On motion it via; voted that the Board communicate with every Federal reserve bank informing it of the amount of Federal reserve notes available for its use on hand, and the progress that is being made in preparing a new supply. The action taken by Er. A. C. Eiller Was ratified, and it was directed that a letter sent by him to the several banks be approved. On motion it was voted that :a.. Jay be advised of the denominations of the Aldrich-Vreeland notes which were prepared for the use of the banks of :Tow York City, and that a list of the denominations be sent to the Comptroller of the Currency. A letter prepared by Er. A. C. :Aller on this subject was reported. On motion the minutes of the conference with Governors of Federal reserve banks relative to the preparations for inaugurating the Gold 3ettlement Fund, wore referred to Er. Warburg for examination and report. After discussion of the status of the orders regarding redistricting, it was voted that 1.1r. Harding be asked by telegraph to investi:ate and. report the best action to be taken relative to the two counties in Oklahoma whose status, under the redistricting order, had not yet boon 395 settled. The Secretary of the Board-presented an opinion prepared by Counsel relative to the position of banks in northern New Jersey as to rediscounting during the time that the nroce3s of transferin them is in Progress. On motion the opinion was adopted, and it was ordered that a copy thereof be sent to all districts affectc:d by similar transfers, and that the text thereof be published in the forthcominr issue of the Bulletin. The question of the status of Deputy Federal Reserve Agent La Monte of the Philadelphia district, as affected by the transfer of banks in northern New Jersey (hi- place of residence) to New York, was brought up for consideration, and the Governor informed the Board that Counsel had rendered an opinion tkiat Mr. La Lento might legally continue until the end of his term. On motion this Opinion was adopted, and it was directed that L:r. La Monte be so informed, and that a copy of the opinion or 'Jounsel en the subject be published in the next issue of the Federal Reserve Bulletin. On motion, the action of the Comittoe on Staff In fixing the following appointments and salaries, as of the dates naLied by the committee was c'onfirmed: :196 i. 7. Grayson, Assistant to examiner, .12.5 per month, effective May 7. R. 1. Burklin, assistant to examiner, .125 per month, effective May 7. Frances P. Valiant, library assistant,100 per month, effective May 10. On motion, the ap.olication of Federal Reserve Agent Perrin for an increase in the limit of permitted investments in warrants to an amount equal to 20,, of members deposits instead of 154, or, roughly, ‘3,000,000 instead of 1,500,000 at 3an Francisco good until further notice, was granted. The Secretary of the Board presented a letter from Governor Aiken of Boston relative to the purchase of town notes without legal opinion in sup:ort thereof. On motion the question was referred to Counsel for an expression of oinion. the A memorandum from Mr. A. C. Miller relative to use of Federal reserve notes in clearing house settlements between banks, and a letter from Federal Reserve Agent Perrin on the same subject having been presented to the Board, it was voted that Miller communicate sith Mr. Perrin stating that the Board would be glad to see the banks take action designed to render Federal reserve notes available in such settlements. 397 The Secretary of the Board having presented the ouestion of a subscription price for the Federal Aeserve Bulletin, it was, on motion, voted that such price be fixed at .2.00 per annum, or twenty cents per copy. The Governor of the Board Iresented the general status of the questioft in what way the Board should participate in tho forthcoming Pan-1.'nerican financial conference, and, on motion, it was agreed that he examine the present situation of the natter and report thereon. A letter from Senator W. J. Stone enclosing one from Samuel Lazarus of St. Louis, relative to the extent to which member banks are accomodatiEg their customers, was referred to Er. "iller and Er. Warburg for consideration. The Secretary of the Board presented the application of certain banks in Connecticut for transfer from Federal Reserve District "To. 1 to Federal Reserve District 3:o. 2. On motion the subject was referred to Counsel Of the Board with a request for a report as to how far, if at all, the Board is under obli,;ations to grant an immediate hearing, receive briefs, etc. It was informally agreed thnt in the forthcoming issue of the Bulletin there 398 be inserted a brief statement indicating that the Board would probably not act upon any more petitions for the present, pending the arrival of the time for a more extensive readjustment of districts. Letters from Federal Reserve Agent Tenison and A. L. 3hapleih relative to the present status of the clearance question, were referred to 1-r. Harding for examination and report. Mr. A. C. read to the Board letters from Federal Reserve Agent :illor of Kansas .;it:r, stating the nresent situation as to clearings in that district, and asking for rower to charge a rate of interest upon deposit balances of member banks. Mr. Taller was authorized to reply. The Secretary of the Beard reported the receipt of various cornunications from Federal reserve agents recommending the retention of existing discount rates, and stated that no chance had been called for. Pc- :ress with the arrangements for the introduction of the new jold 3ettlement Fund :/as described to the Board bY t:lo Secretary. An opinion prepared by Counsel with reference to' the designation of reserve agents for use by State banks, IX° 399 ieftirred to Mr. Miller and Mr. 7arburg for examination. A communication from Federal Reserve Agent D. C. Wills transmitttng a suggested form of statement for use by borrowers at banks lias.read to the Board, and, on motion, ordered referred to Messrs. Broderick and Jacobson .for report. Mr. Miller:read to the Board letters received from Federal Reserve Agents Perrin,. Ingle and Liller, urging that there be no diminution in the amount of inform tier' to be granted to them through theMedium of member . banks reports with reference to the condition of such member banks. On motion at 1.15 p. in. the Board adjourned meet at 10.00 a. in., Saturday, May 15. A Jecrotary. APPROVED: Chairman.
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