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799 At a regular meetiw; of the Federal eserve Board held in. the office of the Board on Tuesda::, jeptember 26, at 11:00 a. 1,1., PHEJIMT: Yir. Delano, presiding Mr. Warburg Mr. Williams Mr. Harding 11r. Willis, secretary. The minutes of the meetinf; of jeptember 24, were read and approved. On motion hr. Hamlin was added to the committee named on Jeptember 24 to report on the question of public deposits and inter-bank rediscounts. Er. Hardins; voted in the affirmative; bIlt was recorded as being opposed on general principles to committees of so large a size as four members. The ',3ecretary of the Board called attention to the fact that an Executive Order had been issued suspending work in the various departments of the Government on Wednesday, jeptember 29. On motion it was voted that the work of the 3oard's staff should likewise be suspended on that date. The minutes of the conference with the Advisory Council on .ieptember 21 were referred to Er. Harding for 800 consideration and. report. On motion applications for the is5ue of l• Federal reserve notes, duly recornended by the Committee on Issue and. Redemption, were approved as • follows: For the Federal Reserve Bank of Richmond, 3500,000 in the following denominations: 35 denomination 10 :.300,000 200,000 For the Federal Reserve Bank of Jt. Louis :'P,200,000 in the following denominations: 35 denomination 10 20 tt 50 31,000,000 1,000,000 800,000 400,000 For the Federal Res we Bank of Minneapolis, 32,000,000 in the following denominations: denomiat35 10 20 lt 0560,000 300,000 640,000 On motion the minutes of the meeting of the . Committee on State Banks held an Monday, Oeptember 27, were approved, and the action therein described was ratified. In pursuance of this action it was voted that the appLication of the Central State Bank and Trust 801 Company of Dallas, Texas, for admission to the Federal reserve system, be approved. It was further voted that no expression of opinion be made ':ith reference to the Hudson Trust Company's application for admission, until the matter is presentee. either at the instance of the Trust_Company or the 2eserve Bank of New York. It was further voted that the action of the comittee in regard to the First State Bank of De Kalb, Texas, refraining from further steps with reference thereto, be apnroved. It was further voted, on recommendation of Chief of Division Broderick, that State examinations of the State of Nebraska be accented for the Bank of Llewellyn, and that those of Kichigan be accepted for the Fruitgrowers State Bank of Saugatuck, llichigan. The Secretary of the Board presented a report from Chief of Division Broderick relative to the present status, wOrh fees of Deputy 'federal ac- serve Agent Haclmoy of Boston. On motion the report was referred to Mr. Hamlin for suggestion as to the action to be taken. 802 On motion the Board approved a rate of 31,) for Commodity parer, recommended by the Federal aeerve B:nk of Minneapolis. The Secretary of the Board havinr: presented a letter from Federal Reserve Agent Miller expressin the views of the Board of Directors of the Federal Reserve Bank of Eanaita City against a3;; rate OR Commodity parer with a 6,;; rate to ultimate borrowers, the Secretary was directeu to advise l'Ar Miller that the Board could not now chance its reTilations; that it had approved a 3 rate for Minneapolis; and if Kan- sas City desired the same it could have that rate, but it must take it on the present basis. On motion it was voted that the Board inform the Federal Reserve Bank of New York that if its Board of Directors still desired to be represented for the purpose of disaussinc the commodity rate question, it would be Clad to receive a committee on Tuesday not at 10 a. m. The Secretary of the Board presented a telecram from Federal Reserve Agent Perrin succestinc the tenement of further consideration of the commodity 803 rate question, until the next directors' meeting of the Federal Reserve Bank of Jan Francisco. The messae was noted and ordered filed. :Ir. Warburg presented a report favorable to granting of power to accept drafts up to 100% of capital and surplus in favor of the First National Bank of Hutchinson, Kansas. On motion the applica— tion was approved. On motion applications for fiduciary powers, duly recommended by the Committee on State Banks, were approved as follows: Franklin County Nat'l Bank, Brookville, Ind. —First National Bank, Greenville, Pa. Norway National Bank, Norway, On motion applications for fiduciary powers, were upon the recommendation of the Committee on State Banks, rejected as follows: First National Bank, Portland, Oregon. First ITati0nal Bank, Pendleton, Oregon. First National Bank, Montrose, Pa. On motion the applications of the following banks for fiduciary powers, were upon recommendation of the Committee on State Banks, placed on the suspended list: 804 First National Bank, Baltimore, Ia. City National Bak, Fort Smith, Ark. On motion the application of the First National Bank of Missoula, Montana, to withdraw its application for fiduciary powers was approved. A letter prepared by Chief of Division Broderick, addressed to the State Banking Department of New York, with reference to placing copies of examinations of State member banks In hands of the Federal Reserve Agent, having been read, was approved subject to minor modification. , The Secretary of the Board having presented a -letter and draft of memorandum prepared in response to request of Governor Strong of the Federal Reserve Bank of Now York, relative to the cost of Federal reserve notes, the same was approved ancl ordered transmitted. Mr. Harding read a preliminary report regarding the work of settling the Dallas-Kansas City exchange discussion. He informed the Board that Gov ernors,Van Zandt and Sawyer were now present in his office, in response to the Board's invitation, and were at work on the exchange situation in an effort to reach a basis of adjustment. 805 The Secretary of the Board having presented a letter from Federal Reserve Agent Inp:le, asking whether bankers acceptances purchased from the accepting bank, which technically acted for the maker of the paper, could be used as collateral for notes, was instructed to say that the Board is willing to permit, for the present, the use of this collateral, though regarding its eligibility as subject to some doubt. The Secretary of the Board having presented a letter from Federal Reserve Agent Ingle relative to the practice of certain banks in the Richmond district in figuring as reserves, excess funds in the hands of reserve agents, was instructed to say such excess is not . to be thus counted. . The Secretary of the Board having presented a • letter from W. H. Allen of Brooklyn, asking for the Beards answer to H. R. Fowler, it was agreed that the Secretary should reply informally to Mr. Allen. The Secretary of the Board having presented • a telegram from the German-American Chamber of Commerce: relative to 'operations possibly growing out of the foreign loan, it was on motion voted that the Secretary • 806 ask Federal Reserve Agent Jay to obtain a confid^ntial report on the German-American Chamber of Cw..derce and also the names of its counsel, if any, the telegram to be tabled pending a reply from Liz'. Jay./ The Secretary of the Board having presented a comnunication from the American jociety of Equity, the letter was noted and ordered filed and briefly aeknowledsed. The Secretary of the Board having presented forms for keeping account of reserve agents' balances in the Gold Settlaleat Fund, the same were approved and ordered printed. A letter prepared by Counsel for transmission to Federal reserve banks relative to the election of directors was approved, with modifications, and ordered transmitted. The jecretary having read a letter prepared by Counsel relative to certain inquiries put before the Board by the Federal Reserve Bank of Philadelphia, it was agreed to take up the points therein made in their order. On the first point, relating to the payment 807 of reserves, it was on motion voted to write requesting Federal reserve banks to call the attention of each member bank to the date on which transfers of reserves or aubscrintions to stock are due, and to arrani;e that member banks should pay their own express .harges on such remittances unless Federal reserve banks prefer to make some other arrangements. Taking up Question No. 2 and Question No. 3, it was agreed that both should be laid on the table, Question No. 2 until the return of la.. Hamlin, and Question No. 3 until further consultation with Governor Rhodes. ltatt,Jr from Federal Reserve Agent Tenison regarding the method of paying in the next reserve installment was referred to hr. Harding and /a'. Warburg for consideration and report. The secretary of the Board, having presented communication from the Texas Cattle Raisers' Association, asking amendment of the Federal Reserve Act, was instructed to acknowledge the same and say that the point therein raised would have careful consideration. 808 A letter from Governor 'Strong relative to the cessation of the issue of small gold certificates and asking or con-,1,) - to statif-tics of all 'sortris 02 currency from the date when the new plan goes into operation, was presented by Er. Warburg, and on motion ordered referre6. to Assistant Secretary of the Treasury Ealburn. Er. Warburg having submitted a memorandum regarding the question of monthly reports by member banks, it was on motion agreed to call the subject to the attention of the Conference of Governors with the suggestion that the Board would be pleased to see the new plan in operation as soon as convenient. On motion it was voted that :Ir. 7arburg be requested to present to the Board his views respecting the question of foreign agencies of Federal reserve banks; and that the subject be referred to tho Conference of Governors for an expression of their opinion. On motion it was voted to ask Counsel for an opinion whether a Federal reserve bank could, under the terms of the Federal Reserve Act, open local. agen7 809 cies in the United States. On motion the Chairman and Secretary were authorized to issue a statement respecting various rumors in regard to the maintenance of the Ninneapolis bank that have been in circulation. On Lmtion at 1:30 p. m. the Board adjourned .0 meet on Thursday, September 30, at 10:00 a. m. ,--1/1(4-1/661-4:41 -d9 3/ Liecretary. APPROVED:
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