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855 At a regular meeting of the Federal Reserve Board held in the office of the Board at 11:00 a. m. on Wednesday, October 13, PRESENT: Delano presiding Lir. Harding Mr. Williams Las. Li'. Warburg Li'. Willis, Secretary. The minutes of the meeting of October 1,; were read and on motion, laid on the table until the next meeting of the Board. Delano, on behalf of the committee named at the meeting of October 1 2, to formulate a statement relating to the action of the Board on foreign agencies in south America, reported that such a statement had been framed and presented to the Secretary of the Treasury, and had been approved by him, and later given to the press. On motion an application of the Federal Reserve Bank of Cleveland for an issue of '*:1,000,000, in Federal reserve notes, duly recommended. by the Committee • on Issue and Redemption, was approved as follows: '10 denomination :?'1100,000 856 020 denomination 50 (400,000 200,000 A report presented by Yar. Harding with reference to the form of advertising to be used by member banks was on motion, approved, subje3t to slight modification, and the 6 cretary directed to send a copy thereof to- Governor Wold of Minn polls. The question of appointing a successor to Er. A. Ramsay of Eansas City, was taken under ad- visement, and a letter of commendation with reference to Er. J. D. Rising of that place received from Federal Reserve ter r t Miller, together. with another let- senting certain alternative names, was read by the 3ocretary. On motion the question was laid on the table for the time being. Er. Harding informally presented to the Board the case of a State bank in Virginia which, besides engaging insurance company n banking, also actsas a fire and which had expressed a desire to join the Federal reserve system. This raised the question whether such a bank was eligible, and it was agreed that no such sidered for membership. titution could be con- 857 'The Board reconsidered the draft of a letter to Heinrich Charles, Jecretary of the German-American Chamber of Commerce of New York, and arced to certain modifications therein. It was directed taat the let- ter as thus modified should be transmitted. On motion an opinion of Counsel relative to the reserves of tate banks in South Dakota, was read to the Board and approved. It was directed that a letter to Assistant Attorney L;eneral Thrreu on this subject should be transmitted if it had not already been sent. The jecretary of the Board read an opinion of Counsel with reference to the eligibility of directors in member bans under the provisions of the Clayton Act, specifyin certain restrictions. On motion it was voted that the letter be sent to inquirers who had presented the question. The Secretary of the Board preseuteu a memorandum from Counsel relative to the receipt of fees or compensation by directors of member banks, and was authorized to write to inquirers in accordance with Counsel's memorandum. 858 The Secretary of the Board having presente* a letter transmitted by the Governor with reference to the proposed sale of bonds by the Mutual National Bank .of Boston, was directed to refer the letter back to the Governor with the'suggestion that the matter seemed _to be one which should be brought to the attention of the Comptroller of the Currency rather than to the Board.. An opinion of the Attorney General holding :that Federal reserve notes are.non-frankable, was presented to the Board, and on motion, ordered transmitted to Federal reserve agents. The Secretary of the Board having presented a programme of the Conference of Governors received from. the Secretary of the Conference, it was on motion, voted that Mr. Harding and Mr. Warburg be requested to attend the forthcoming meeting at Minneapolis, at the expense of the 13oard, and that the preliminary programme of the Conference be referred to them for study, it being understood that the two members thus named are to attend the Conference as individual members, and without authority to speak for, or express the • 859 opinion of the Board as such. A letter from 1%.r. Warburg transmitting copy of an opinion from the office of the Counsel relating to the performance of certain functions by Federal reserve banks having been read, it was on motion, voted nat the Jecretary of the Board write to all Federal reserve banks giving the substance of that letter for their guidance. A letter from Federal Reserve Agent Wellborn of Atlanta stating the Counsel's retaining fee at the New Orleans Branch as ;100 per annum, and giving the list of amounts in which the various employees of the New Orleans Branch have been bonded, was road to the Board, and on motion, approved, upon recommendation of Mr. Harding. The Jecretary of the Board having read a letter from Lir. P. H. jaunders addressed to Federal Reserve Agent "iellborn, and by the latter transmitted to Er. Harding, suggesting open market transactions in 3tate bank acceptances at New Orleans, the letter was referred to Mr. Harding and Mr. Warburg as a special caa'aittee with instruction; to rePort at the next meet- 860 ins of the Board. The Secretary of the Board having presented an opinion of Counsel with reference to the meaning of the term "unencumbered farm lands" as applied to lands possessing mineral rights, the opinion was ordered referred back to Counsel with instructions to consult with Mr. Delano. The Secretary of the Board read a letter from Federal Reserve Agent Jay relative to the status of. branches of the National City Bank in South America. The letter was noted but no action taken. The Secretary of the Board read a memorandum prepared by Counsel relating to the election of directors of Federal reserve banks, and suggesting the trans'mission of a new form of sample ballot in use in New York, to other Federal reserve agents for their inforOn motion the transmission of the ballot was mation. directed. Mr. Miller called the attention of the Board to the fact that some months ago Federal reserve agents had been requested to furnish an annual report to the Board. On motion it was voted that the Secretary of the Board send a letter to reserve agents reminding them of their duty in the itter, and making suggestions to them with reference to the material to be included in these .reports. On motion at 1:20 p. m. the Board adjourned to meet on Friday, October 15, at 11:00 a. m, • APPROVE.J:
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