Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, May 26, 1915, Volume 2, Part 1

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426




At a regular meeting of the Federal Reserve
Board held in the office of the Governor at 4.00 p. m.
on Wednesday, May 26,
PRESENT:
Mr. Hamlin, presiding,

Mr. Harding

Mr. Williams

Mr. Miller

Mr. Warburg

Mr. Willis, Secretary.

The reading of the minutes having been dispensed
with, the Secretary of the Board presented a communication
from the office of the Comptroller of the Currency relative
to a reduction in the capital stock of the National Union
Bank of Rockhill, 3. C., from .400,000 to )300,000 and a
memorandum from Federal Reserve Agent Ingle of Richmond
favoring the reduction.

On motion it was ordered that the

reduction be approved and the office of the Comptroller informed of the Board's position in the matter.
On motion applications for stock in Federal reserve
banks aggregating 89 shares, duly recommended by Mr. Hardin'
were approved as follows:

.shares.

DISTRICT No. 4.
National Bank of John A. Black, Barbourville, Ky.
West Union, Ohio.
First National Bank
Ludlow, Ky.
First National Bank

3
1
1

DISTRICT No. 5.
First National Bank

Selma, N. C.

18

Shares.

DISTRICT No. 6.
First National Bank
First National Bank

Claxton, Ga.
Evergreen, Ala.

3
1

DISTRICT No. 7.
German Amorican National Bank

Fort 7ayne, Ind.

DISTRICT No. 8.
Farmers National Bank
First National Bank
State National Bank

DISTRICT

ro.

Princeton, Ind.
Batesville, Ark.
Frankfort, Ky.

4
1
9

Lakefield, ::inn.
Aitkin, Linn.
Duluth, Nina.
Foley, Nina.
:inot, N. Dak.

1
5
10
1
3

9.

First National Bank'
First National Bank
Northern National Bank
First National Bank
Union National Bank

DISTRICT No. 10.
Fidelity National Bank
Liberty National Bank

Aurora, Nebr.
Tulsa, Okla.

2
5

DISTRICT No. 12.
First National Bank

Yreka, Cal.

15

On motion applications for the surrender of stock
in Federal reserve banks aggregating 185 shares, duly recommended by nr. Harding, were approved as follows:
DISTRICT No. 4.
First National Bank




Jackson,

Ky.

5

4°8




Shares.

DI3TRrT No. 4.(Cont'd.)
Metropolitan National Bank

Pittsburgh, Pa.

180

The Secretary of the Board presented an amendment to the By-laws of the Board necessary as a preliminary
to the establishment of a system for the creation and management of a Gold Settlement Fund.

The Secretary also presented

a form of agreement signed by all members of the Board waiving the customary notice necessary for the adoption of an
amendment to the By-laws, the sane being called for as a
matter of emergency.

On motion the said agreement was ordered

entered in the minutes as follows:
We, the undersigned members of the Federal Reserve Board, in order to adopt at once the proposed
amendment of the By-laws of the Federal Reserve Board
numbered V, relating to the designation of persons to
control and have access to the safe in the Treasury
vault set apart for the use of the Federal Reserve
Board, do hereby waive the right afforded each of us
by Article LK of the By-laws to have a copy of the
said proposed amendment seven days in advance of the
meeting at which it is to be adopted.
W. G. McADOO,
Secretary of the Treasury
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.

C. S. HAMLIN,
Governor.
F. A. DELANO,
Vice Governor
PAUL M. WARBURG
W. P. G. HARDING
A. C. =TIM

On motion the amendment to the By-laws already referred to, was adopted as Amendment V, and ordered entered

429

the minutes as follows:
The Federal Reserve Board shall designate
and appoint two persons who shall have control
of the combination of the safe set apart in the
Treasury vault for the deposit of funds received
by the Federal Reserve Board on account of the
Gold Settlement Fund. So much of the provisions
of the By-laws heretofore adopted inconsistent
with this amendment, is hereby repealed.
The Secretary of the Board presented•resolutions designed to carry into effect the practical operation of the Gold Settlement Fund as permitted by the
amendment to the By-laws already adopted, and as required by the plan for the Gold Settlement Fund already
approved.

On motion the said resolutions were adopted,

and ordered entered in the minutes as follows:
WHERE13, under the provisions of Regulation L,
Series of 1915, adopted by the Federal Reserve Board,
it is necessary, in order to transfer title to the
gold order certificates deposited in the Gold Settlement Fund, that they be endorsed by the Federal Reserve Board,
NOW, THEREFORE, BE IT RESOLVED, That this endorsement by the Federal Reserve Board, to be valid
and binding, must have the signatures of two members
of said Board, and
BE IT FURTHER MSOLVED,'That the Governor and
Vice Governor, or in the absence of either br both
of them, Mr. Warburg, Mr. Harding or Mt. Miller, in
their place and stead, be and they are hereby authorized to endorse such gold order certificates, for
and in behalf of the Federal Reserve Board.
WHMEAS, pursuant to Regulation L, Series 1915,
adopted by the Board, arrangements have been made




•

430




with the several Federal reserve banks for deposit of the Gold Settlement Fund with the Federal Reserve Board to be used in the adjustment
of balances between the several Federal reserve
banks, and
WHEREAS, Section 4 of said Regulation provides as follows:
"(a)

A safe in the Treasury vault will be set
apart for the exclusive use of the Federal
Reserve Board.

(b)

To open the Treasury vault, the presence of
two persons designated by the Secretary of
the Treasury is required. The combination
of the safe set apart for the use of the
Board shall be controlled by two persons
designated by the Board.

(c)

A vault record shall be kept, giving a memorandum of all entrances to the safe, by whom
made, for what purpose, and the certificates
deposited or withdrawn. Each entry on the
vault record book shall be signed by the persons having access to the safe," and

WHEREXS, under Section 6 of Regulation L it is
necessary for the Board to designate and appoint a
settling agent,
NOW, THEREFORE, BE IT RESOLVED (1) That SHERMAN ALLEN and RAY M. GIDNEY
be and they are hereby designated and appointed,.pursuant to the provisions of Section 4 above quoted, as
the two persons who shall control and have access to
the safe set apart in the vault of the Treasury for
the use of the Federal Reserve Board, and who shall
be charged with the custody and control and with the
duty of keeping the necessary records of all gold certificates and other securities or funds, deposited in
and withdrawn from said safe.
(2) That SHERMAN A= be and he hereby is
provided
designated and appointed as the settling Agent
for in said regulation.

431

(3) That a copy of this resolution be
transmitted to the Secretary of the Treasury
with request that he turn over the control of
the safe sot apart in the vault of the Treasury
for the use of the Federal Reserve. Board to
SHERMAN ALLEN and RAY M. GIDNEY above named.
1 a. That SHERMAN ALLEN and RAY M. GIDNEY
be and they are hereby designated, appointed and
authorized to have control of and access to the
said safe and to make the proper vault records in
the absence of either or both
The Assistant Secretary of the Board was designated as Settling Agent ad interim and Ray E. Gidney as Deputy
Settling Agent.
The Secretary of the Board presented decrees relating to the redistricting appeals in West Virginia, New
Jersey and Oklahoma cases.
On motion the West Virginia decree affecting the
counties of Wetzel and Tyler was approved subject to correction as to the following points prior to entry:

(1) Change

in date to indicate the entry of the decision as the day
Nhon the resolution on the subject was adopted by the Board,
May 4. (2)

Intrdduction of words to indicate that the order

need not be effective until July 1, 1915.
. The decree relating to the transfer of the banks
of Oklahoma from the Federal reserve district of Dallas to
that of Kansas City, was, on motion, adopted and ordered




432




entered subject to the sane change as in the case of
the West Virginia decree.
On motion the decree transferring the banks
of northern New Jersey from the Federal reserve district of Philadelphia to that of New York, was adopted
subject to the same corrections as in the case of the
other two orders.
A decree denying the petition of the banks
of Nebraska and Wyoming for transfer, similar in form
and substance to the corrected decrees in the cases
aforesaid, was, on motion, adopted and Ordered entered.
As thus corrected and ordered entered the
decrees in the four appealed cases aforesaid were entered
as follows:
At a stated meeting of the Federal
Reserve Board, duly held at its
office in the City of Washington,
District of Columbia, May 4,1915.
PRESENT:
Mr.
Mr.
Mr.
Ur.
Mr.
Mr.

Hamlin, Governor,.
Delano, Vice Governor
Miller
Harding
Warburg
Williams.

In the matter of review
•
- of the decision of the Reserve :

433

Bank Organization Committee
duly rendered and filed in
accordance with the provisions of the Federal Reserve
Act, on April 2, 1914, dosignating twelve Federal reserve
cities and defining the geographical limits of the districts to be served.

:
: ORDER VENDING GEOGRAPHICAL
:LIMITS OF DISTRICTS NOS. 2
: AND 3.
:

By special order of the Board, the decision of
the Reserve Bank Organization Committee designating twelve
Federal reserve cities and defining the geographical limits.
of the districts to be served, having been duly heard and
considered by the Board (1)

Upon the petition of 123 member banks in northern
New Jersey to have transferred from District No.3
to District No.*2 those counties in which the petitioning member banks are located.

(2)

Upon the answer of the Federal Reserve Bank of
Philadelphia to said petition.

(3)

Upon the evidence heard by the Reserve Bank Organization Committee, and exhibits and briefs filed with
said Committee.

(4)

Upon the written and printed briefs of Counsel and
the oral arguments heard by the Board.

UPON CONSIDERATION WHEREOF, it appearing to the
Board that the convenience and customary course of business,
and the best interests of the Federal Reserve System will be
served by modification of the geographical limits of Districts
2 and 3,. the Board doth order
I.

II.




That District No. 2 shall be modified and extended
so as to include the State of New York and the following counties in the State of Jew Jersey: Monmouth, Middlesex, Hunterdon, Somerset, Union, Essex,
Passaic, Hudson, Bergen, Morris, Sussex and Warren.
That District No. 3 be modified and altered so as to
include all of the counties in the State of New Jersey

434




except those by this order made a part of
District No. 2, the State of Delaware and
all that part of Pennsylvania located east
of the western boundary of the following
McKean, Elk, Clearfield, Camcounties:
bria and Bedford.
III.

IV.

V.

That the alterations in Districts 2 and 3
directed in this order become effective
July 1, 1915.
That the Federal Reserve Banks of New York
and Philadelphia be notified of the changes
made in the districts referred to. and directed to take such action as may be necessary for the transfer of membership of the
banks included in the territory affected.
That a copy of this order be filed with the
Comptroller of the Currency in order that the
certificate of the Reserve Bank Organization
Committee may be properly amended.

At a stated meeting of the Federal
Reserve Board, duly held at its
office in the City of Washington,
District of Columbia, May 4, 1915.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
In the matter of review
- of the decision of the Reserve
Bank Organization Committee
duly rendered and filed in
accordance with the provis-

Hamlin, Governor,
or
Delano, Vice Govern
Miller
Harding
Warburg
Williams

435
•

: ORDER A:L.11,11)111G GECA;RAillions of the Federal Reserve
ICAL LI:IITS OF DLJTHICT3
Act, on April 2, 1914, designating twelve Federal reserve : NOO. 4 A:ND 5.
cities and defining the geegraphical limits of the districts to be served.

By special order of the Board, the decision of
the Reserve Bank Organization Committee designating twelve
Federal reserve cities and defining the geographical limits
of the districts to be served, having been duly heard and
considered by the Board (1)

Upon the petition of member banks located in
the counties of Wetzel and Tyler, West Virginia,
to have those counties transferred from District
No. 5 to District No. 4.
Upon the answer of the Federal Reserve Bank of
Richmond to said petition.
Upon the evidence heard by the Reserve Bank Organization Committee, and exhibits and briefs
filed with said Committee.

(4)

Upon the written and printed briefs of Counsel
and the oral arguments heard by the Board.

UPON CONSIDERATION WHEREOF, it appearing to the
Board that the convenience and customary course of business,
and the best interests of the Federal Reserve System will be
served by modification of the geographical limits of Districts
4 and 5, the Board doth order
I.




That District No. 4 be modified and e.,:tended so as
to include the State of Ohio; all that part of Pennsylvania lying west of District No. 3; the counties
of rarshall, Ohio, Brooke, Hancock, Wetzel dnd Tyler
in the 'State of West Virginia; and all that part of
Kentucky located east of the western boundo7y of the
following countioo; Boone, Grant, 'Scott, Wciodford,

436




Jessamine, Garrard, Lincoln, Pulaski and
McCreary.
II. That District No. 5 be modified and altered
so as to include the District of Columbia,
the States of Maryland, Virginia, North Carolina, South Carolina, and all of West Virginia
except the counties of Marshall, Ohio, Brooke,
Hancock, Wetzel and Tyler.
III, That the alterations in Districts 4 and 5 directed in this order become effective July 1,
1915.
IV.

That the Federal Reserve Banks of Cleveland and
Richmond be notified of the changes made in the
districts referred to and directed to take such
action as may be necessary for the transfer of
membership of the banks included in the territory
affected.

V.

That a copy of this order be filed with the Comptroller of the Currency in order that the certificate of the Reserve Bank Organization Committee
may be properly amended.

At a stated meeting of the Federal
Reserve Board, duly hold at its
office in the City of Washington,
District of Columbia, May 4, 1915.

PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
In the matter of review :
of
the decision of the Reserve :

Hamlin, Governor,
Delano, Vice Governor,
Miller
Harding
Warburg
Williams.

43

Bank Organization Committee :
duly rendered and filed in
:
accordance with the provisaRDEIR AFFIRLIING TH3 LOCATION
ions of the Federal Reserve : OF NEBRISEA AND WYOLING IN
Act, on April 2, 1914, desig- : DISTRICT No. 10.
nating twelve Federal reserve :
cities and defining the geo- :
graphical limits of the districts to be served.

By special order of the Board, the decision of the
Reserve Bank Organization Committee designating twelve Federal reserve cities and defining the geographical limits of
the districts to be served, having been duly heard and considered by the Board -

(1) Upon the petition of certain banks located in
Nebraska and Wyoming for the transfer of those
States from District No. 10 to District No. 7.
(2)

Upon the answer of the Federal Reserve Bank of
Kansas City to said petition.

(3)

Upon the evidence heard by the Reserve Bank
Organization Committee, and exhibits and briefs
filed with said Committee.

(4)

Upon the written and printed briefs of Counsel
and the oral arguments hoard by the Board.

UPON CONSID3RATION WHMEOF, it appearing to the
Board that the convenience and customary course of business,
and the best interests of the Federal Reserve System will be
served by affirming the decision of the Reserve Bank Organization Committee in placing Nebraska and Wyoming in District No. 10, the Board doth order
I.




That the petition of member banks located in Nebraska
and Wyoming, for a transfer of those States from District No. 10 to District No. 7, be dismissed without
prejudice to the right of the Board to make such further readjustments in the lines of the vari6us districts as it may deem advisable.

438




II.

That a copy of this order be filed with the
Comptroller of the Currency.

At a stated meeting of the Federal
Reserve Board, duly held at its
office in the City of Washington,
District of Columbia, May 4, 1915.
PRESENT:
Er.
Er.
Er.
Mr.
Er.
Mr.

Hamlin, Governor,
Delano, Vice Governor,
Miller,
Harding,
Warburg,
Williams.

In the matter of review
- of the decision of the Reserve
Bank Organization Committee
PHICAL
: ORDER AMENDING GEOGRA
duly rendered and filed in
10
NOS.
LIMITS OF DISTRICTS
accordance with the provis: AND 11.
ions of the Federal Reserve
desig1914,
2,
April
Act, on
nating twelve Federal reserve
cities and defining the geographical limits of the districts to be served.
of tie
By special order of the Board, the decision
Fed.'
twelve
Reserve Bank Organization Committee designating
of
limits
eral reserve cities and defining the geographical
'
.
con
and
the districts to be served, having been duly heard
sidered by the Board Oklahoma
(1) Upon the petition of certain banks in
except
for transfer of all counties in Oklahoma.
Pushthe counties of Marshall, Bryan, Choctaw,

439

mataha and McCurtain from District No. 11
to District No. 10.
(2)

(3)

(4)

Upon the answer of the Federal Reserve Bank
of Dallas to said petition.
4
Upon the evidence heard by the Reserve Bank
Organization 'Committee, .and exhibits and
. briefs filed with said Committee.
Upon the written and printed briefs of Counsal
and the oral arguments heard by the Board.

UPON CONSIDRATION .711MRE0F, it appearing to the
Board that the convenience and customary course of business,
and the best interests of the Federal Reserve System will be
served by modification of the geographical limits of Districts 10 and 11, the Board doth order
I.

II.

III.

VI,




That District No. 10 be modified and extended so
as to include the States of Kansas, Nebraska, Colorado and ',7yoming; all that part of Missouri not included in District No. 8; all of the counties in
Oklahoma except Marshall, Bryan, Choctaw, Pushmataha and McCurtain; all that part of New neXi30
north of a line forming the southern boundary of
the counties of McKinley, Sandoval, Santa Fe, San
Miguel and Union.
That District No. 11 be modified and altered so as
to include the State of Texas, all that part of New
Mexico not included in District Mo. 10; the following counties in Oklahoma: Marshall, Bryan, Choctaw,
Pushmataha, and McCrutain; all that part of Louisiana
not included in District No. 6, and the following.
counties in the State of Arizona: Pima, Graham, Greenlee, Oochise and Santa Cruz.
That the alterations in Districts 10 and 11 directed
in this order become effective July 1, 1915.
That the Federal Reserve Banks of Kansas City and Dallas be notified of the changes made in the districts
referred to and directed to take such action as may be
necessary for the transfer of membership of the banks
included in the territory affected.

440




IV.

V.

That the Federal Reserve Banks of Kansas Cit
and Dallas be notified of the changes made in
the districts referred to and directed to take
such action as may be necessary for the transfer of membership of the banks included in the
territory affected.
That a copy of this order be filed with the
Comptroller of the Currency in order that the
certificate of the Reserve Bank Organization
Committee may be properly amended.
Request for detailed statistics relating to the

amount of bonds held by Federal Reserve banks, and of the
distribution of their agricultural-loans by maturities were
ordered declined.
On motion the Board expressed its opinion in response to an inquiry from Assistant Treasurer Vogel of New
Reserve
York City, that Mr. Charles Starek as Deputy Federal
the
Agent of the Federal Reserve Bank of Now York would have
power to endorse gold certificates standing in the name of
Mr. Pierre Jay, Federal Reserve Agent, in the absences of
the latter.
The Secretary of the Board presented a request
on the part of certain Federal reserve agents now in the
aftercity, for a joint meeting with the Board on Thursday
noon.

On motion the request was acceded to, and the meet-

_ing in question set for 3.00 p. m., the Secretary of the
Board to give duo notice of the same.

441

On motion at 4.40 p. m., the Board adjourned
to meet at 3.00 p* m. on Thursday,Lay 27.

11114i)

7
4/(111.1414-1

Secretary.

APPROVED:




Chairman.