Full text of Mimeograph Letters and Statements of the Board : Letter From the Governor re Resolution Adopted by Board of Directors of Federal Reserve Bank of Cleveland, Number X-2055, Volume 13, Page 1028

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W . P . G . H A R D I N G . GOVERNO*

EX OFFICIO MEMBERS

DAVID F. HOUSTON
SECRETARY O F T H E T R E A S U R Y
' *

1028

E D M U N D PLATT, VICE GOVERNOR

CHAIRMAN

JOHN SKELToff ^ l d C l A M S
COMPTROLLER O F THE C U R R E N C Y

FEDERAL RESERVE BOARD

ADOLPH C. MILLER
CHARLES S.HAMLIN
HENRY A. MOEHLENPAH
W . T. C H A P M A N . SECRETARY
R . G . E M E R S O N . A S S I S T A N T S ECRE T ARY

ADDRESS REPLY TO

FEDERAL RESERVE BOARD

W. M. IMLAY, FISCAL AGENT

WASHINGTON

November g, 1920.

Subject:

X-2055

Resolution adopted by Board of Directors of
Federal Reserve Bank of Cleveland,

Dear Sir:
There i s enclosed herewith for your information copy
of resolution adopted recently by the Board of Directors of the
Federal Reserve Bank of Cleveland. You are requested to discuss
the subject of the resolution with your o f f i c e r s and Executive
Committee and t o advise the Board whether or not i t would be
practicable to adopt the plan suggested.
Very truly yours,

Governor.

To Chairmen of a l l F.R. Banks EXCEPT BOSTON, PHILADELPHIA,
AND CLEVELAND.




0

1029
X-2C55 a
COPY OF RESOLUTION. PASSED AT THE REGULAR MEETING
OF THE BOARD OF DIRECTORS OF TEE FEDERAL RESERVE BANK OF
CLEVELAND, HELD NOVEMBER 5, 1920.

Whereas,
.Reserve Board
substantially
member banks,

under the direction and by the authority of the Federal
t h i s bank is. loaning to other Federal Reserve Banks
one and one4ialf times the volume of i t s loans to i t s
and

Whereas, such advances ctiuld not be made except upon the basis
of the reserve deposits of i t s membdr banks, and the use thereof, and
Whereas, the directors of the Federal Reserve Bank of Cleveland
f e e l a solemn duty and r e s p o n s i b i l i t y to take every precaution to protect
the reserve funds entrusted to them by the member banks;
Now, therefore, be i t resolved that i t i s the sense of the directors
of the Federal Reserve Bank of Cleveland that future o f f e r i n g s of paper
by other Federal Reserve Banks to t h i s bank for rediscount should consist
of government-secured notes and commercial paper i n the proportion that
these two c l a s s e s of paper are held by the o f f e r i n g bank.
And, further, be i t resolved that the action upon t h i s resolution
and the t e x t thereof be r e s p e c t f u l l y submitted to the Federal Reserve
Board for such a c t i o n as that body aay see f i t to take.