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5241 a regular meeting of the Federal Reserve Board held in the office of the lovernor on 7riday, May 16, at eleven a.m., PAESENT: arburg, presiding, Mr. Delano, :Mr. Hamlin, Mr. Miller, Mr. dlliams, Mr. illis, secretary. The minutes of the meeting of the BoJ.rd held on May 16 were read and on motion, approved. The question of discount rates was first taken up, and the Secretary of the Board reported the receipt of the usual weekly discount rate from the Federal e- serve Bank of New York, stating that no change was recommended. 7e also called attention to the fact that most f the Federal reserve 1T...d discontinued thetrans- mission of the weekly discount rate sheet. On motion, it was agreed that the Vice Governor of the Board transmit a circulr letter to all Federal reserve agents request ins theta not to neglect the transmission of the weekly notices even when no changes are to be suoN:rested. The c etary of the Board read 4 ernor Seay of aichmond recommending that letter from Gov31.;; rate of 525 discount for paper of bank •customers secured by new Government bonds, be fixed. at Federal reserve banks. The Vice Governor of the Board reported that the bankers and others in attendance at the conference on loan details, held on Thursday, :ay 17, all urged the fixing of such rates of discoant at an early date. Hamlin moved that a differential of 1 of 1A; in favor of all maturities of paper secured by these bonds, be established. moved to amend fixing a rate of 3 . 7zam1in's motion by valid at all Federal reserve banks. The amendment was accepted by L"r. Hamlin, bat not voted upon, and after informal discussion it was agreed that the Vice Governor prepare a cir3u1ar letter to be transmitted to all Federal Acserve Banks, stating the policy of the Board, the sare to be submitted to the Board for approval. The qaestion whether paper should be rediscounted for member banks acting as agents for non-member,banks who desire accommodation on paper protected by Government bonds, was presented and it was agreed that the Federal reserve banks be asked to adopt a liberal policy in this regard, and that an imlicaLion of the Board's feeling in the matter be included 526 in the letterwhich the Vice Governor is to prepare and transmit. The Vice Govern r called attention to the fact that the Guardian Trust company of kAeveland was considering seriously the laection of applying for admission to the System, and that a hearing for representatives of the company at which they would set forth the matters on which they desired information, had been set fo twelve o'clock on Tuesday, May 22. The Vice Governor further stated to the Board that he Farmers & Merchants Bank of Staunton, Va., had signified its intention of joininc the System. letter from Mr. J 2.iltartis of Mew York en- closing copy of a letter written by lovernor Strong to Governor Harding concerning transfers of banking credits to neutral countries, was read and it was agTeed to lay the niatter on the table until it could be brought to the attention of Secretary McAdoo. letter from the Chase National Bank enclosing form of application for stock in a proposed Foreign Trade Bank, was referred to the Committee on Investments. letter from Federal Reserve 'gent Uardy stating 527 that the Federal .eserve Bank of iichmond hd authorized the estzblishment of a br. nch at Baltimore was read. The action of the Federal Reserve Bank of qichmond was tentatively approved, but with the understanding that it would be well that no action be taken until after the amendments to the Federal Reserve Act now pending in 2onjress, have been finally disposed of. The secretary of the Board presented the applico.tion of the lettinger state Bank of Hettinger, -. D., which 11.J.d previously been favorably acted upon as a candidate for membership, for stock in the Federal Aeserve Bank of I.:inncapons, and, on motion, the issue of such stock was authorized. Er. Ijiller presented a letter from Federal Reserve Agent Perrin to go to to Atlanta and Philadelphia, at his discretion, to meet Lord Junliffe, at the expense of the Board. :Hier presented a letter from Federal fieserve ilgent Perrin asking to be kept more closely advised ;:ith regard to the doings of Congress. The matter was referred to the Committee on Bulletin, with the understanding that that Committee would provide in some way for a bulletin of infor- 5c-'8 /nation or some similar means of informin:: the 1.-;evcr: Feden.,1 reserve banks concerning affL1r2 in. Conres and at the Treasary affecting the statas ncAder-1 r(scrve banks. On motion at 1.20 p.m. the Board ad ned to meet on Monday, May 21, at 10.30 a.m. Secreta Z2E10112.1): alairman.
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