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936 At a recular meeting of the Federal Reserve Board held in the office of the Governor at 12 noon on Friday, November 5, PRESENT: Mr. Hamlin, presiding Mr. Warburg Er. Delano Mr. Harding • Williams Mr. Miller Willis, Secretary. The minutes of the meetings of November 3 and 4 were read and approved. The question of the appointment of Mr. Curti R Mosher as assistant to Federal Reserve Agent Rich of Minneapolis was discussed,and on motion, the subject was referred back to the committee in charge of the same, with request for a definite report today if possible. The question of the purchase of warrants of the State of Georgia by the Federal Reserve Bank o lanta At- was brought before the Board, and Mr. Harding reported that the form of the Tarrant is nowsatisfactory and considered to be legal by Counsel of the Board. On motion the Board voted to authorize the Federal Reserve Bank of Atlanta to hold not more than 325,000 937 of the said warrants, the same being 25 per cent of the total issue; but to grant power to the bank to purchase and distribute the balance of the issue of 01,300,000 of said warrants to other reserve banks desiring to purchase the same, no reserve bank:, however, to hold more than 4325,OOO of the warrants. The question of open market purchases at New Orleans being presented to the Board, with a telegram from Mr. P. H. Saunders asking for a reduction in the rate already established at 4% on such transactions, it was on motion voted to make the rate 31% subject to the discretion of the committee of the. Board in charge of the Now Orleans branch (Mr. Harding, Mr. Miller, :Ir. Warburg). Mr. Warburg was recorded as voting against the motion. It was infor- mally agreed that Mr. Harding and Mr. Warburg should prepare a letter on the subject. The minutes of a meeting of the standing committee on State Banks, held on Thursday, November 4, were read to the Board, and on motion approved. In consequence of this action the following recommendations with reforence to applications for fiduciary powers were anproved: Granted: City National Bank Clinton, Iowa First National Bank, Traverse Olt; 1 h. Placed on suspended list: Exchange National Bank, Spokane, Wash. First National Bank, Marengo Iowa Refused: First National Bank, Cambridge. City, Ind. Referred to Counsel: First National Bank, East Newark, N. J. First National .Bank, High Bridge, N. J. On motion the resignation of Mr. Viarbu.rg as a member of the special committee on the condition of affairs at Atlanta, was accepted, and Mr. Delano was appointed in his place. On motion a report of the Committee on Legal Matters approving the opinion of Counsel with respect to the methods of passing upon fiduciary applications in the twelfth district Wa adopted. Mr. Harding having stated to the Board certain facts concerning the salary now paid Mr. J. Z. Miller, Federal Reserve Agent at Kansas City, the subject was, C90 ; on motion referreC to the members of the Board specially in charge of the Kansas City District. Letters from Governor Stron,,,. of New York with reference to the establisinent of foreign agencies by member banks, were read to the Board and laid on the table. A letter prepared by Mr. Warburg for transmission to Governor Aiken of Boston relative to the allotment of bonds to Federal reserve banks, was read, and on li?tion ;ins approved, and its transmission authorized, subject to minor modifications. The Oecretary of the Board called attention to the usual weekly discount notices, informing the • Board that no changes had been asked for. The notices were ordered received and filed. A letter from Secretary of the Treasury McAdoo with respect to a Lleeting of the Buffalo Association of Credit Men, was read, and on motion referred to Mr. :lardinc.,. with request that he talk the matter over with the ,Jecretary of the Treasury. The Liecretary of the Board having presented an opinion of Counsel with respect to certain questions af- 940 fectin: the election of directors, it was, on motion voted not to publish the opinion at this time, but to instruct the Secretary to state in cases where such action is necessary, that should it be impossible to get a new elector for each bank, the elector chosen last year mir:ht serve again this year. A letter from Governor Strong of New York 3tatin2; that the Governors of the bar.s prefer to retain the present plan of distributiiv circulars, having been read, was ordered filed. A 'Iremorandum from Federal Reserve .lent Jay relative to the question of new quarters for the Federal Reserve Bank of New York, was ordered referred to the coLvlittee on the New York District. 1:r. Delano having reported to the Board in favor of a plan for the classification of organization expenses offered by Chief of Division Broderick, under date of October 20, it was, on hotion, voted to approve the said plan, and to transmit it to Federal reserve agents for their confidential information. Ln application hlade by the Federal Reserve Bank of Philadelphia for power to hold ;.50,000 City of 941 Atlantic City 4.(i, three month notes, was approved. The Oecretary of the Board having read a letter from Governor Otrong of New York relative to the proposed transmission of a circular on Government bonds, was instructed to inform Mr. Strong that the circular is approved, but to add that member banks must renew their applications quarterly. A letter from Federal Reserve Agent Perrin relative to the redemption of unfit notes, was referred to the Committee on Issue and Redemption. The Jecretary of the Board read a letter from Governor Strong relative to the transmission of a full report of the Governors' Conference. The letter was received and ordered filed. On motion it was voted to name a standing committee on Investments, the same to consist of Li.. Harding, chairman, Yr. Miller and IX. Warburg. A letter from Governor Rhoads of Philadelphia relative to various matters,raising among others, some points rerding the allotment of United Otates bonds, was on motion, referred to the Committee on Investments. 942 A letter from the Texas Bankers' 1, ia- tiont addressed to Lr.„ Harding, recie-ting Lr. Ilardinc to ace pt_ an invitation for Deco:Thor 74 was presented to the Board, and on motion, Mr. Harding was asked .1):1 the Board to attehd - the meeting in question. On motion at 1:25 p. m. the Board adjournd to mioet at 2:45 1- ). in. this day in joint conference with the Federal reserve agents. (Jecretary. APPROVED: Chairman.
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