Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, November 18, 1918, Volume 5, Part 4

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At a meeting of the Federal Reserve Board held in
the office of the Board on November 18, 1918, at 2:30 P.1.1.,
;
PRESENT: Mr.
Mr.
Mr.
Mr.
Mr.

Harding, presiding
Strauss
Hamlin
Miller
Broderick, Secretary.

The minutes of the meeting of the Board held on
November 14th were read and on motion approved as amended.
The minutes of the meeting of the Executive Committee, held on November 15th, were read and on motion approved.
The minutes of the meetings of the uold Export Committee, held on November 13th, 14th, 15th, 16th and 18th were
presented and approved, and the action therein set forth
ratified.
Morning business was presented and disposed of as
follows:
Governor Harding was authorized to arrange for rediscounts between federal Reserve Banks at the following
rates:
4% - limper bank collateral maturities
one to 15 days, secured by
uovernment obligations;
- Acceptances all maturities;
All other paper.
Uovernor Harding reported that he was advised by
Counsel that the legal objections heretofore raised against




-2the approval by the Board of the credit proposed to be
Opened for the International Products Company had been removed, and that the question was again before the Board for
an expression of its policy.
Voted that Counsel be instructed to prepare a letter to the International Products
Company approving the arrangement proposed,
and outlining the conditions under which such
credit shall be consummated.
Mr. Miller requested that he be recorded
as voting in the negative.
Letter of Counsel dated November 15th, with reference to circular of United States Council of State Banking Associations.
Voted that Counsel be instructed to prepare and submit to the Board an amendment to
the Federal Reserve Act to permit the Federal
Reserve Board to treat surplus as capital in
passing upon applications for membership received from State banks.
Memorandum by Secretary dated November 5th, in re
contracts for the erection of new bank building by the
Federal Reserve Bank of Dallas.
Voted that the Supervising Architect of
Department be requested to exTreasury
the
press opinion as to the form and substance of
the contracts proposed.
Letter from Governor of the Federal Reserve Bank
Of New York, dated November 15th, asking authority to purchase a lot adjoining lot heretofore authorized for purchase




by that Bank for the erection of new bank building.
Approved, subject to approval by Messrs.
McAdoo and Williams.
Letter from Counsel dated November 14th, in re
time limit on receipt of resolution of board or amendment
to by-laws of member banks, authorizing officers to cast
votes in election of class "A" and "B" directors.
Voted that a general letter on this subject be addressed to all Federal Reserve
Agents.
Letter dated November 12th, from Federal Reserve
Agent at Atlanta, requesting authority to establish at
Savannah, Georgia, an agency of the Federal Reserve Bank of
Atlanta, at a cost of not to exceed 0,000 per annum.
Voted that the establishment of such
agency be authorized as proposed, to meet
seasonal requirements. Voted further, that
Counsel be instructed to prepare and submit
to the Board a memorandum outlining the restrictions that should be established in connection with this agency for the handling of
Federal Reserve notes at such agency.
Application of the Union Trust Company of uhicago,
for permission to accept drafts and bills of exchange up
to 100;; of its capital and surplus, under the provisions
of Section 13.
)11




Approved.
Telegram dated November 16th, from "The West at Work",

4

-4requesting certain information as to national debts.
3ecretary to reply by wire.
Governor Harding reported that at a meeting of the
Gold E. :xport Committee held on November 14th, the following
minute was entered:
'Mr. Miller suggested that, in view of the
cessation of hostilities and the important role that
the United States could play in promoting speedy readjustments of international trade, industry and
finance by maintaining a free gold market, in accordance with the Board's policies as expressed at its
meeting of July 10, 1917, and in a letter of the Governor of the Board to the Secretary of the Treasury
under the same date, the Board should invite the attention of the Secretary of the Treasury to the advisability of modifying the application of the socalled "gold embargo", or Executive Order of September 7, 1917, by lifting the embargo on shipments of
gold destined for South American and Central American
points, excepting Mexico, at the earliest practicable
moment,"
and stated that the Committee had voted to refer the motion
to the Board.
Voted that Mr. Miller be requested to
submit to the Board a memorandum giving in
detail the reasons moving him to suggest the
action outlined in his motion.
Governor Harding submitted draft of letter to all
Federal Reserve Banks, suggesting that they scrutinize
carefully the rediscount transactions of their member banks,
in order to eliminate rediscounts for the purpose of unduly
expanding the business of member banks in excess of their




-5legitimate needs at the expense of other member banks.
Approved.
After discussion it was voted that for the remainder of the present calendar year the Executive Committee
Of the Board shall consist of the Governor, the ViceGovernor and Mr. Miller.
REPORTS OF COMMITTEE NO. 1:
Dated November 18th, 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.
Dated November 15th, recommending changes in stock at
Federal Reserve Banks as set forth
in the auxiliary minute book as of
this date.
CHANGES IN STAFF:
Dated November 14th, recommending appointment of Miss Ida
Schuman as Stenographer in the
Secretary's office, at 1,320 per
annum, effective November 18, 1918.
Approved.
Dated November 18th, recommending appointment of Miss
Sadie A. Dyer as Stenographer in
the office of Counsel, at $1,440 per
annum, effective November 22, 1918.
Approved.
Dated November 15th, recommending acceptance of resignation of D. M. Hale, Clerk in the Division of Statistics.
Approved.




-6Dated November 14th, recommending the following increases in salaries of National
Bank Examiners, effective December
1, 1918:
To
From
Dist.No.
Name
$6,000 46,500
1
Chief Examiner Daniel C.Ylulloney,
6,000 6,500
10
Chief vnrominor Horace R.Gaither,
6,500 7,000
Chief Examiner Richard H.Collier,
11
National Bank Examiner James Trimble,6,000 6,500
5
Referred to Executive Committee with
power.
Dated November 12th, recommending appointment of Mr. J.B.
Pike as Deputy Governor of the Federal Reserve Bank of Atlanta, at a
salary of $7,500 per annum, effective
November 9, 1918.
Approved.
Dated November 15th, recommending appointment of following
employees at the Federal Reserve Bank
of New York, with salaries of $2,400
per annum, or over:
Name
Salary Date Effective
Leslie R.McCrum, 43,000 Oct.16,1918
4,000 Oct.30,1918
John Auen,
2,400 Nov.4,1918
Ludlow C.Meeks,
Robert H.Roraback, 2,400 Nov.11,1918
Approved.
Dated November 12th, recommending increases in salaries of
officers of the Detroit Branch of the
Federal Reserve Bank of Chicago.
Referred to Executive Committee
with power.
Dated November 11th, in re salaries for the year 1919, of
officers and employees of the Federal
Reserve Bank of Dallas, and the ia
Paso branch.
Referred to Executive Committee
with power.
At 4:10 P.M., the meeting adjoi ned.

Or
A.

Secretary.

Approved:




ift

Goverao