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At a regular meeting of the Federal Reserve
Board held in the office of the Board on Monday, November 26, at 3 p. m.,
•
PRESENT:
Mr. Harding, presiding,
Mr. Hamlin,
Mr. 7arburg,
Mr. Williams,
Mr. Miller,
Mr. Willis, Secretary.
Mr. Delano,
The minutes of the meeting of the Board held
on November 23 were read and on motion adopted.
The minutes of the meetings of the :xecutive
Committee held on November 24 and 26 were presented,
and on motion approved and the action therein set
forth ratified.
Discount rate changes proposed by various Federal Reserve Banks were presented and discussion of the
changes ensued.
On motion the discount rates named by the Federal Eeserve Banks 4hich had thus fax acted upua the
changes in rates which had been under consideration in
accordance with the Board's telegram of November 21, were
approved, with the following exceptions:
Kansas City - Rate of 37 on 15-day paper secured
by Government obligations, disapproved, and 45 substituted.
Atlanta - Trade acceptance rate named for paper
up to 9J days, instead of 6.;) as proposed by the Federal
Reserve Bank of Philadelphia.
Accordingly telegrams indicating the Board's
action were ordered sent as follows to the Federal :leserve Banks of Kansas City, Atlanta,
t. Louis, Eiahmond,
San Francisco and Philadel)hia:
On Noliember twenty-first Governor Harding telegraphed you
as follows: "Board has reached conalusion that discount
rates should be increased one rAlf of one percent in each
classificatior of paper discounted or purchased by Federal
Reserve banks in cases where changes have not already been
made, and will approve rates as fol]ods: Fifteen day collateral notes secured by commercial paper four percent
and secured b;y, United states bonds three and one half percent. Uinety day commercial four and one half percent,
United States Bonds four percent. Trade acceptances fifteen days three and one half percent, ninety days four
percent. Any variations deemed advisable b,cause of local
conditions in any district will receive due consideration.
This matter was discussed with Advisory Council v.hich concurred -ananimou,ly with suggestions."
At today's meeting rates at different banks were taken
under advisement and approved as follows:
PFAILADEL2HIA, same as named in telegram of November
twenty-first except that rate for trade accept;imces
,is made three and one half percent up to ninety days
inclusive.
ST LOUIS', same as named in telegram of November
Twenty-first except that trade acceptance .maturities up to sixty days are fixed at three and one
half percent instead of fifteen days as previously suggested.
ATLANTA, same as named in telegram of November
twenty.first except that rate of four percent is•
fixed for trade acceptances for all maturities.
RICHMOND and SAN FRANCISCO, same as named in telegram of November twenty-first except that trade
acceptance rate is made three and one half percent
up to sixty days instead of for fifteen days as
previously suggested.
KANSAS CITY, same as named in telegram of November
twenty-,first with no changes.
Action on rates at other Federal Reserve banks
deferred until the meeting of Wednesday.
The Secretary was directed to advise all Federal Reserve banks of the action taken.
Other business was disposed of as follows:
A letter from Federal Reserve. Agent Hardy with
reference to the dates for the reports of state member
banks, referred to Committee No. 1.
A letter from Federal Reserve Agent Perrin regarding the making of examinations under the auspices
of the Board to take tLe place of clearing House examinations, referred to Committee No. 1.
A letter from Federal Rez,erve Agent Perrin Nith
reference to the cost of transporting currency for pay
rolls, was reed and noted.
A letter from Governor J. Z. iilier proposing
a progressive penalty for deficient reserves of member
banks, was referred to Committee No. 2.
A letter from Federal Reserve Agent Sawyer with
reference to the action of the Federal Reserve Ban-I{ of
Kansas City, electing directors for the Denver Branch,
was read and noted.
A letter from Federal Reserve Agent Hardy with
reference to the question of compensation for an Assistant Federal Reserve Agent at Richmond and suggesting a
salary of
360U, was referred to Committee No. 1.
A memorandum Nith respect to the shipment of
gold to Uruguay, transmitted by the Minister of Uruguay,
was referred to the Executive Committee acting on Gold
Exports, a cony to be sent to Mr. Struass.
A letter from Federal Reserve Agent Curtiss, informing
the Board of the election of Mr. C. - Morss as
Governor of the Federal Reserve Bank of Boston, was read,
and on motion, it vas voted to approve the appointment of
Yr. Morss, at a salary of ,$20,000 per annum, proposed by
the Federal Reserve Bank of Boston, the
vise rr. Curtiss accordingly.
eoretary to ad-
It was informally agreed
that the Boston Committee should prepare and place in
the records a suitable resolution with reference to the
services of Governor Aiken.
A letter from Federal Reserve Agent Hardy with
reference to proposed additions to be made to the list
of cities from Which reports of member banks should be
received, was read aril the suggested additions were approved.
A letter from Federal Reserve Agent Jay transmitting a statement concerning the prospective membership ,of the United States Trust .Company in the system,
was ordered circulated.
A letter from Governor Fancher with respect to
the action of the Farmers' Bunking Company, of Prairie
Depot, Ohio, which was granted admission to the Federal
Reserve system, but now desires not to accept such admission, was referred to the Governor, with the re4uost
that he take the matter up with thp Comptroller and
Counsel.
A letter from the Riverside National Bank with
reference to the taking over of its bonds by a Federal
Reserve Bank, was referred to the Governor, with power
to reply.
A letter from Assistant Cashier Chalres Washburn,
of Chicago, with reference to rupee exchange, was referred to the Executive Committee sitting as the gold export committee.
Governor Harding presented the question of deAgnating Mr. F. I. Kent now Deputy Governor of the Federal
Reserve Bank of New York, as foreign exchange advisor to
the Board, and on motion it was voted that he be authorized to make such designation subject to his direction,
provided that upon investigation, no objection is raised
to other dealers in foreign exchange.
Governor Harding reported informally with reference to the stat7As of Mr. Walter Wellborn, Who represents
Federal Reserve. Agent Wellborn at Nev? Orleans.
The mat-
ter was referred. to the Atlanta Committee for action.
On motion at 4:45 P. M., the Board adjourned,
meet on Wednesday November 28th, at 3 P. M.
APPROVED:
Secretary
Chairman
to
@FedFRASER