The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
418 At a meeting of the Federal Reserve Board held in the office of the Board on Monday, May 26, 1919, at 11 A41., PRESENT: The Mr. Mr. Mr. Mr. Vice-Governor Miller Hamlin Williams Broderick, Secretary. The minutes of the meetings of the Board held on May 20th and 22d were read, and on motion approved. The minutes of the meetings of the Executive Committee held on May 20th and 23d were read, and on motion approved. The minutes of the meetings of the uold Export Committee held on May 21st, 22d, 23d, 24th and 26th were presented and approved, and the action therein set forth ratified. Morning business was presented and disposed of as follows: The Vice-Governor reported the purchase on May 23d, of special 2.;' certificate of indebtedness of the United States for 4500,00U for the Federal Reserve Bank of St. Louis for deposit with the Comptroller of the Currency as collateral for iederal Reserve bank notes. Approved. The Vice-Governor reported rediscount transactions, pursuant to authority heretofore vested in him: member bank promissory notes secured by Government obligations, rate C) on Paper secured by certificates of indebtedness and 4:i.;L on 419 -2paper secured by Liberty bonds or Victory notes, as follows: Date May May May May 22d 23d 23d 23d Bank Rediscounting Richmond Dallas Dallas Philadelphia With Cleveland Chicago Chicago St. Louis Amount $5,000,000 3,000,000 3,200,000 10,000,000 Maturities 11-15 days 1-15 " 11 1-15 11-15 Noted. Letter dated May 21st from the Chairman of the Federal Reserve Bank of Atlanta, submitting resolution of the Directors of that Bank authorizing the expenditure of 3236,250 in the acquisition of the banking premises of the Commercial National Bank of New Orleans for the use of the New Orleans Branch of the Federal Reserve Bank of Atlanta, subject to the approval of the Federal Reserve Board. Pursuant to authority heretofore given by the Board, it was voted to approve, formally, the expenditure contemplated. Letter dated May 22d from Yr. James E. Zunts, requesting that action be withheld on his resignation as Director and • Chairman of the New Orleans Branch of the Federal Reserve Bank of Atlanta. Noted. Letter dated May 22d from the Chairman of the Federal Reserve Bank of Minneapolis, in re contemplated recommendation for the establishment at Helena, Montana, of a branch of that Bank. 420 -3Referred to the Secretary for report. Opinion of General Counsel dated :.Tay 15th, addressed to Lit'. Robert H. Bean, Executive Secretary of the American Acceptance Council, in re use of trade acceptances to finance the various processes of building. Approved as amended. Letter dated Lay 24th from the Vice-President of the Shawmut Corporation of Boston, asking permission to make investment in particular securities to comprise reserve against. acceptances. Referred to the Secretary for report, and advice to the Corporation that the Board is reconsidering the subject to determine whether or not it is advisable to abrogate Class 4, "Leadily salable securities such as are eligible for purchase by savings banks in rew York and Lassachusetts", and possibly further to define Class 5; but that meanwhile the Board is willing to grant permission to make the specific investments referred to if the investments will be made in such manner as will not embarrass the Corporation in complying with any regulation hereafter prescribed by the Board in this respect within the next 30 or 60 days. Letter dated May 23d from Consulting Architect Trowbridge, requesting approval of the Board to certain alterations in the premises of the Federal ileserve Bank of Philadelphia. Approved. Memorandum by the Secretary dated May 23d, in re sales by Federal Eeserve banks to their employees of Liberty 21 -4bonds on the instalment plan without interest charge. Referred to the Secretary for report. Letter dated May 21st from the Governor of the Federal Reserve Bank of Cleveland, requesting approval by the Board of the payment by the Federal Reserve Bank of Cleveland of a dividend at the rate of 65 per annum for the period January 1, 1919 to June 30, 1919, inclusive. Referred to the Secretary for report as to general practice and rules with respect to the paygent of dividends, and made special order business for the meeting of the Board to be held on Monday, June 2d. Letter dated May 23d from the Chairman of the Federal Reserve Bank of Philadelphia, suggesting that a commission be appointed to investigate the material and form of construction of vaults for Federal Reserve banks. Voted that the Secretary communicate to all Federal Reserve banks the suggestion made by Mr. Austin with the request that they communicate with the Consulting Architect on the subject. The Vice-Governor raised the question of the propriety of requiring members of the Board to secure formal action of the Board to permit them to travel at the Board's expense on official business. On motion duly seconded, it was voted that it be left to the discretion of members of the Board to determine where their presence is*most needed by their official duties, and that vouchers 422 -5covering the expenses of members for traveling shall be approved when they recite that the expense was incurred while traveling on official business, and are duly certified by the member concerned. On motion duly seconded the Secretary was requested to report to the Executive Committee his recommendation for uniform practice to be adopted by the ,oard in prescribing conditions of operation of banks organized to engage in foreign banking, in order to make their stock eligible for investment by National banks. Ur. Williams announced that at the meeting of the Board to be held on June 2d, he intended to move that the Board consider the question of the desirability of imposing a penalty of l on discounts granted by federal Reserve banks to member banks charging their customers interest in excess of the rates prescribed by law; and moved that meanwhile General Counsel be instructed to render an opinion as to the legal right of the Board to impose such penalty. Approved. L;LPORT3OF COMUITTEE NO. 1: Dated Y.ay 26th, recommending admission of State institutions as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the individual reports attached to each application. Approved. 423 -6Dated May 23d, recommending approval of application of W. Lane Verlenden for permission to serve at the same time with the Cambridge Trust Company, Chester, Pa.; the First National Bank, Darby, Pa.; and the Lansdowne & Darby Trust Company, Darby, Pa. Approved as to first two; unnecessary as to third. Dated May 23d, recommending approval of application of James P. Woods for permission to serve at the same time with the National Exchange Bank, Roanoke, Virginia, and the First National Bank, Rocky Mount, Virginia. Approved. Dated Lay 24th,recommendim' approval of application of L. H. Ickler for permission to serve at the same time with the American National Bank, St. Paul, Minnesota, and the First National Bank, Roseau, Minnesota. Approved. Dated May 26th,recommending approval of the application of A. H. Giannini for permission to serve .at the same time with the East River National Bank, New York City, and the Bank of Italy, San Francisco, California. Approved. Other business was presented paid disposed of as follows: Letter dated May 21st from the Comptroller of the Currency, asking approval of salary of 2,400 per annum for Mr. Edward A. Vavrina as National Bank Examiner in the Eleventh Federal Reserve District. . Approved. Letter dated May 19th from the Chairman of the :Federal 424 -7Reserve Bank of San Francisco, requesting approval of the appointment of Er. George H. Tracy, Jr.', as Federal Reserve Examiner of the Federal Reserve Bank of San Francisco, at a salary of ;;;5,000 per annum. Referred to the Secretary for report. Letter dated May 17th from the Chairman of the Federal Reserve Bank of San Francisco, submitting for approval proposed method of examining branches of the Bank of Italy upon its application for admission to the Federal Reserve Syst Referred to the Secretary with power, after consultation with Mr. Hamlin. At 12:40 P.M., the meeting adjourned. Secretary. Approved: Vice-Governor.
@FedFRASER