The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
244
W. P. G. HARDING, GDVIRIIOI
ALBERT STIIAUSS, YICI GOVIIROR
ADOLPH C. MILLER
CHARLES S. HAMLIN
HENRY A. IIOEHLENPAH
IIX 0PPICIO MEMIIIIIS
114YID F. "OUSTON
IICL}i;; dTHit TRIAIUIY
CHAIRIIAII
FEDERAL RESERVE BOARD
JOHN SKILTON WILLIAMS
GQIIPTRDU.II DP TH& CiiiiiNCT
ADDRESS REPLY TO
WASHINGTON
FIDERA'- RESERVE BOARD
March
Subject:
2~,
1920.
W. T. CHAPMAN, SICRITAIY
R. G. EMERSON, AIIIITAHT SICRITAIIY
W.M.IMLAY, FISCAL AGINT
X-1873
Topics for Discussion at Conference
of Governors an April 7, 1920.
Dear Sir:There is enclosed a list of topics which will
be presented for discussion at the conference on April
7th. This list embraces topics which have been suqgested
by several of the Governors as well as some which have
been offered by members of the FeJ.e:ral Peserve Board• and
it is believed that it is ~~fficiontly c0opr.ehensive to
absorb all the time available for the coclerez:.ce. The
list, however, is not a closed one, and if there are any
other topics which any Govern·)r would like to submit,
they can be considered.
Very truly yours,
Governor.
Enclosure.
To Governors of all F .R. Banks.
245
X-187} a
TOPICS FOR DISCUSSION AT GOVEllNORS' CONF.E:RENCE
WEDNESDAY, APRIL 7, 1920.
'I:
CREDIT CONTROL:
(1)
Effect of recent rate increases u~on liquidation.
(2}
In view of pending amendrr.ents to the Federal Reserve
Act authorizing progressive rates for large borrowings what should be the basis of the normal line?
(a) Capital and surplus of member bank ..
(b) Total resources of member bank ..
(c) De~osits of roember bank.
{d) Reserve balance of member bank.
(e) Loan capacity of Federal Reserve Bank prorated among
the member banks in "9roportion to the reserve
balance of each.
(J)
Should basis of normal line be: uniform in all districts,
and at ..Ul seasons of the year?
·
(4)
What scales should be used
( 5)
What steps should be taken to control the absorption in the
System of an excessive amount of paper made by borrowers
who do a nationwide business?
(6)
Is it practicable to discriminate effectively against nonessential business in favor of .essential business?
~
applying the pr'()gi"essive rate?
(7) What methods does· your bank en:roloy to inform and satisfy
itself of the uses made. by member banks of credit
facilities obtained from their Federal Reserve Bank more particularly the uses made for speCQlative purposes as c.ontrasted w1 th those for productive purposes.
( 7a) What steps have y01.1 taken to inform yourselves as to abuse
of credit in hoarding commodities? (A written statement
in res~anse to this ~estion is desired.)
ADVISABILITY OF INVOLVING SYSTEM IN LESS PUBLICITY WITH A VIEW
TO REACHING MORE BEADILY A 'PEACE TIME .AND NORMAL BASIS.
(1)
SUggestions as to what activities produc.e undesirable
pablieity ~d should therefore be modified or eliminated.
246
Y-1873 a
...2-
·II L
CLEARING
,~ND
COLLECTION SYST.B:M •
. (1)
In view of the fact that no system involving deferred
· avai.labili ty is strictly a 3'ar sys tern, shonld not
in all discussions an~l. uublic;atio:as the term '~"f'c-,r
Collection System 11 be ch.::n.g;d to 11 FedergJ Reserve
Clearing and CoJ.lectior Svs·~em 11 or to some name
more exactly descriptive than the one ncvv in use?
(2)
Assuming that the provisions of the Federal Reserve
.Act with reference to exchange charges will remain
uncha:nged:
.
(a) What will be the most effective method of continuing the catrtodgn for par points?
(b) What will b3 the best procedure to me ot rmd prevent
the recurrance of, the charg0s af coercion made
by non~·mewber ban"k s?
now
(c) Should the B2J:1.l~s jn1,;;.blish a non•·par list instead of
c. par list?
(3)
Board's Int~r-district Time Sched:q.le.
(a) Should it oe puolished in the Bulleti.n?
(b) Correc ti ·)n af errors.
(c) Relation to intra-district schedules.
(4)
Direct routing of collection items by member ba."ll\s in one
Feder::U Reserve dis t~:ict .to rr.ember and non-rri&mber banks
in another Peders.l Rese:rYe district, for w:.i.re transfer
of proceeds to sending bE.!Illr 1 s Federal Raserve bank.
(a) Are the facilities afforded being abused by nonmerrber banlrs?
( 5)
Routing of checks through intermediary banldng centers in-stead of sending direct to dr~~ee batik.
{a) Could not the rvires be used to expedite such cJ.e~rJngr?
IV.
SCHEDULE OF C&mGES .ALLOWED TO BE MADE BY ME.!JBER BANKS AGAINST TP"..ElR
CUSTOMERS UPON OUT--OF-TO:vN CHECKS WHICH .,;1RE CLEABE:D 'l'illtOUGH
THE FEDER..-lL RESERVE SYSTEM.
(1)
Re-oort of progress ;na.de in preparation of this sched.ule.
(2) . Is the :olan suggested by the Board, Ci:.~cular le·tter X-184Lf r
February 26, 1920, fair to the rne:r:oer banks?
•
247
-3 ...
V.
, X-1873 a.
BANKERS 1 ACCEPTANCES:
b~ers 1 acceptances bei~ createu for purposes
not contemplated by the Act and are accepting
banks abusing the privilege?
{l)
Are
(2)
Should an import or export bill bear specific details
of the transaction upon its face, inclu'-l.ing the name
of the ship, as is th~ custom in certain foreign
countries?
(3)
Warehc·use acceptances - how to prevent their abuse
without destroying their usefulness?
( 4)
ShoulO. open market purchases of bankers ' acceptances
by the Federal Reserve :Banks be curtailed at this
more of such acceptances
time with a view to tak:t.rlg
for rediscount 7
(5)
\
Trade Acceptances:
j,.
(a)
(b)
VL
What is being done to encourage tneir use?
Requirements, credit conditions, etc. incident
to trade acceptances offere~ for rediscount?
RATES:
{1)
Should preferential rates on Government secureu paper
be discontinued 7
(2)
Shall there be a O.ifferential rate :i.n favor of, or
preference shown, paper secured by receipts of warehouses. operated under the Fecteral WarehQuse .Act or
complying with the tenns of that .Act in essential
particulars 1
'
VII.
BUILDING OPERATIONS:
(l)
VIII.
Present situation?
DESIRABILITY OF SEEKING FURTHER AMENDMENTS TO THE ACT:
(1)
Federal Reserve Board 1s attituae as to payment of
interest upon reserve bal~ces.
(2)
Suggestion that amendment be sought allowing the
use of the 10% super-surplus funcl. in the payment
of extra dividends.
i
X-lb7} a
f.
IX.
... 4-
ORGANIZATION DETAILS:"
( l)
How many of the banks have organized M:lmber l3ank6
Relations Departments?
(2)
Have the l3oara.s of Directors placea these Qepartments
und.er the authoi-ity of the Governor or the Feueral
Reserve .Agent, or both?
(3)
What steps have been taken, or are in contemplation,
looking to the satisfactory adjustment of all
aifferences which arise between the Federal Reserve
Bank and. the member banks 7
(4)
Is there any systematic plan for using clerks,
temporaril1 idle, in other than their own d.epartments7
'
(5) Advisability of making efforts to secure the use of
checks of standard size by the Feueral Reserve and
member banks.
X.
RESERVE SUPPLY OF CURRENCY:
(1)
In view of present insufficient supplies uf new
currency, is it .iesirable that all Fea.eral Reserve
Banks and branches ari.opt a uniform policy of paying
out new anu. of redeeming unfit currency?
248
@FedFRASER