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851 E x O F F I C I O MEMBERS W. P . 6 . HARDING, GOVERNOR ALBERT STRAUSS, Vice GOVERNOR ADOLPH C. MILLER CARTER GLASS SECRETARY OF THE TREASURY CHAIRMAN CHARLES S . HAMLIN FEDERAL RESERVE BOARD JOHN SKELTON WILLIAMS COMPTROLLER OF THE CURRENCY ADDRESS REPLY TO R. G. EMERSON, ASSISTANT SECRETARY W. M, IMLAY, FISCAL AGENT WASHINGTON FEDERAL RESERVE BOARD W . T. CHAPMAN. SECRETARY November b,1919» 3L1716 SUBJECT:- Topics f o r D i s c u s s i o n a t Conference of Governors on November 19,1919. Dear S i r There i s enclosed a l i s t of t o p i c s which w i l l be p r e s e n t e d f o r d i s c u s s i o n at the conference on the 19th i n s t a n t . This l i s t embraces t o p i c s which have been suggested by s e v e r a l of the Governors as w e l l as soue which have been o f f e r e d by I members of the F e d e r a l Reserve Board* and i t i s b e l i e v e d t h a t i t i s s u f f i c i e n t l y comprehensive t o absorb a l l the time a v a i l able f o r the c o n f e r e n c e . The l i s t , however, i s n o t a c l o s e d one, and i f t h e r e are any other t o p i c s which any Governor would l i k e t o submit, they can be considered* Very t r u l y yours# Enclosure. Governor. L e t t e r t o each Governor jU171b~A TOPICS JOB DISCUSSION AT GOVERNORS 1 CONFERENCE WEDNESDAY, NOVEr/iBER 19,1919. RESERVES: (a) Tne Federal Reserve Board i s authorised to r e c l a s s i f y e x i s t ing r e s e r v e and c e n t r a l r e s e r v e c i t i e s . Should t h i s power be e x e r c i s e d , and if so, how? Should Congress be asked to amend Section 19 so as to r e q u i r e uniform r e s e r v e s throughout the c o u n t r y , d i f - • f e r e n t i a l s to be based on the various c l a s s e s of deposits ? (b) Is there a demand f o r the payment of i n t e r e s t on r e s e r v e dep o s i t s , and should such a p o l i c y be considered? SHOULD FEDERAL RESERVE BAN KS EXERT ANY INFLUENCE UPON THE POLICY OF MEiviBER BANKS IN THE AlVlOUNT OF INTEREST ALLOWED ON DEPOSITS? SHOULD EFFORTS BE MADE TO INDUCE MEMBER BANKS TO CONTINUE THE PROCESS OF SORTING AND DEPOSITING GOLD CERTIFICATES IN FEDERAL RESERVE BANKS? SHOULD THE FEDERAL RESERVE BANKS CONTINUE TO ABSORB THE ABRASION LOSS ON GOLD COIN? TRANSIT OPERATIONS: (a) Method of treatment of t r a n s i t problems through meetings of t r a n s i t Managers * (b) In the i n t e r e s t of more prompt p r e s e n t a t i o n and payment of checks, should not nearby banks i n given s e c t i o n s c l e a r on each other d i r e c t l y , instead of through Federal Reserve Banks? Should the Federal Reserve Banks promote the e s t a b lishment of such l o c a l c l e a r i n g houses? (c) C o l l e c t i o n of D r a f t s , B i l l s of Exchange, etc# Should the c o l l e c t i o n f a c i l i t i e s of the Federal Reserve Banks be extended to include c o l l e c t i o n of commercial paper maturing i n Federal Reserve c i t i e s and branch c i t i e s , and c r e d i t given on d a t e of m a t u r i t y s u b j e c t to f i n a l payment? (d) Transfer D r a f t s and Exchange D r a f t s : The T r a n s i t Conference held i n Cleveland on June 2$, 19191 recommended t h a t l i m i t on exchange d r a f t s be removed. Is i t d e s i r a b l e to remove the l i m i t on exchange d r a f t s aad d i s c o n t i n u e the use of transfer drafts? -2- _ X-17 lb A (e) T r a n s i t Expense: Jn view of the f a c t t h a t no uniform method has be on adopted, of determining t r a n s i t expense, should n o t t h i s s e g r e g a t i o n be abolished? ( f ) Use of express companies by Federal Reserve Banks i n c o l l e c t i n g checks. (g) Prospects of p u t t i n g e n t i r e country on par b a s i s , b : RELATIONS WITH STATE BANES. (a) State Bank Membership: Is any organized work, being conducted s i n d l a r t o the campaign t o get p a r p o i n t s ? (b) Fraudulent advertisement or claim of membership i n Federal Reserve System. What means e x i s t f o r preventing? ? : DISCOUNT RATES: (a) Review of p o l i c y i n the l i g h t of e f f e c t of- r e c e n t changes. (b) E f f e c t of 15-day c o l l a t e r a l r a t e s : Snou?.& d i f f e r e n t i a l i n f a v o r of short time borrowings be discontinued? (c) C a l c u l a t i o n of practice is on b a s i s of open market calculation I n t e r e s t a t 3^5 Days p e r Year: Present to compute i n t e r e s t on notes rediscounted 3°5 days and on b i l l s purchased i n the a t 3b0 days p e r y e a r . Should b a s i s of be uniform? 8: CREDIT SITUATION: (a) Discussion of the p o l i c y of the system. Governors are requested to b r i n g some r e p o r t of general p r i c e movements as to r e a l e s t a t e , commodities and s e c u r i t i e s i n their respective d i s t r i c t s . (b) Experience of the governors as to the Exercise of d i r e c t p r e s s u r e upon i n d i v i d u a l banus t h a t are i n c l i n e d t o borrow too f r e e l y . (c) Discussion of the complicated s i t u a t i o n p r e s e n t e d by the amendment to Section 5200 U.S.R.S. 9 : DISCUSSION OF FOREIGN BUSINESS OF BSSERVE SYSTEM AND HOW IT IS MANAGED. 10: ADMINISTRATION PROBLEMS: (a) Salary a d j u s t m e n t s . (1) S p e c i a l compensation to meet high l i v i n g c o s t s . (2) ggploye's r e p r e s e n t a t i o n . (3) S a l a r y s t a n d a r d i z a t i o n . (4) Overtime p o l i c y . 853 ~3-. , jul?lb-A 10: ADiviINISTRATIOK PROBLEMS: c o n t i n u e d . (b) T h r i f t and Savings P o l i c i e s : (1) Savings f u n d . (2) Ho.u>e b u i l d i n g . (3) Cooperative s t o r e . (c) Health Program: ( l ) iViedical examinations, including both eyes and t e e t h . (d) S e l e c t i o n ond Education: (1) mental t e s t s . (2) Training school. (3) Course i n Federal Reserve Act. (e) Personnel Service: (1) C a f e t e r i a . (2) Rest p e r i o d s . (3) Recreation. ( f ) Pension p l a n s : (1) Group i n s u r a n c e . (2) D i s a b i l i t y and r e t i r e m e n t allowances. (g) Bank. P r o t e c t i o n : (1) P o l i c i n g . (2) Riot d u t y . 11: BRANCH BANKS: (a) Published Comparisons of Branch Operations and Expenses: Inasmuch as s t a t i s t i c s a f f o r d no opportunity f o r comp a r i s o n unless the f u n c t i o n s ana o p e r a t i o n s are comp a r a b l e should tney n o t be subjected to a n a l y s i s or be discontinued? (b) A d v i s a b i l i t y of conference of Branch Ban^ Managers to s£ud.y . . problems of branch bonk o p e r a t i o n s . 12: U.S. TREASURER'S ACCUUM1: (a) Can wore prOj.pt and dependable v e r i f i c a t i o n s and r e c o n c i l e ments be obtained?
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