The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
INFORMAL CONFERF.:llCE OF GOVERimRS
OF
FEDERAL RESERVE BANKS
WITWTHE
FEDb"RAL RESERVE BOARD
JULY l • 2, 1918
-
-
•
-
-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-
·· -
- •
--
-
-
'
• -
-
-
-
-
-
-
-
-
-
-
r
•
48 ate,
Baleno
Sae BreJ!chom and
and Der
noiea
sita
Banko
r-a Aoac t ncaa
Bon
Seo
ranch Bani,
• C tt 1
te
Golleoti
and
s
lurice
2
Agencies
o Indebted
ss
ff
rt
(3
(
r . 1 l t
oc fr
t i
Pedorol
t
coll
5
3
dlatrlat 1 tems
erve
rohange
D
l
t f r
t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'°
ti
dit
•
4
to be m de for sale
oho
l:t\id 1n
o t u l l y oolloot d
turi
funds and at
d
a nctoo
y
Gl-Owi
{
Should man rom bo d i r ator.c
See s a l a r i e s
Expedient
regulate
4o b
anlui on chock
o l c a r o d th
Pderal
ibalka
Clearine
,mter-district
lG to
doe
Cotton
-..
o:itaronce
Credit
•· Ou.rtatlmont of
ll ton4
t15:) eol'Wdule .
"float."
Commonca nt ot
Necessity announced by Gov. Harding
(
(
Deposit«
Dksoout rate
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
l
(
4"
l)lt;E}reot on
o. ED.oh l!o.nk to control
in i te d1 tr1ot.
I D1tf'orent1 1 proposed Memo.
ot aov. m.llor on
1
Discus 1
Bank a l e r l designated
as
non easonti l ocoupatioa .
ShOUld they be made iLll15dtatcl
mid clo r-04 tb.n)t.tgh Gold
Settlemont P d .
F o r e i g n eovormnent nog • etc
invol:viag
tt OlU1
r
ot welcome o.nd
&:u:Louncement of topics
Harding, Go em
b(mk
Ill tei-oo t
and deposits
Addreae
1 - 6
clc.noea
1
Ro11 cal1
(
Salaries
( l
811Yor
. tu n t ot oertlt1oateo
w1thdrawn trom c l r o u l a t l c : 1
Transfers
Rt
ar savings
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
cm
Inf'ormal diacuoelcm
1 6-
l
X-152
FEDERAL RESERVE BOARD
Washington
J u l y 1,
1918.
Dear Sir:
.
The Board has given careful consideration to the various topics which were discussed at the recent conference
with the governors of Federal Reserve Banks, and has d i r e c t ed t h a t t h i s l e t t e r be sent to i n f o r m the governors of the
conclusions reached.
1. Curtailment of Yrodite .
The Board has decided to send a l e t t e r to a l l national
banks, s t a t e banks and t r u s t companies, i n v i t i n g t h e i r cooperation in a campaign f o r a judicious curtailment of nonessential c r e d i t s , and to address a l e t t e r to a l l Federal
Reserve banks asking them to take such steps as may be necessary to arouse the i n t e r e s t of bankers and business men
in t h i s movement.
11. Discount R a t e s £ ! _Federal Reserve Banks.
At the conference the view was generally expressed by the
gove1·nore that they could control any excessive rediscounts
by any member bank, by informing the applying bank that it
had reached i t s l i m i t ; by r e q u i r i n g additional c o l l a t e r a l ; o r ,
with respect to f i f t e e n - d a y borrowings, by availing themselves
of the a u t h o r i t y given them by the Board to r a i s e the i n t e r e s t
r a t e in case of renewals.
These devices have been used in the
past, and the Board has reached the conclusion tha t for t h e time
being, it would be better to adopt t h i s policy rather than to ins i s t upon changes in discount rates.
The adoption of this policy will give the Federal Reserve banks an oppotunity to demon6 t r a t e that credit may be r e s t i c t e d without resorting to higher
discount rates as a means of compulsions.
In two Federal Reserve d i s t r i c t s the f i f t e e n - d a y r a t e for member banks' notes secured by Government obligations is now 41/4%, and should other
Federal Reserve banks f i n d it necessary f o r t h e i r own protectl o n to recommend that t h e i r rates f o r such paper be advanced to
41/4%, the Board will be inclined to ap;rove.
This question
discount
rates
will
be
again
considered
by
the
Board in the
°f
l i g h t of additional experience whenever conditions warrant i t .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
111.
I n t e r e s t h a t e s F a i d by Member Banks
Balances and Deposits.
on Bank
The governors a.re requested to give especial attention, and
to take vigorous s t e p s to g e t results, beginning with the
important reserve c i t i e s in the respective d i s t r i c t s .
1V.
-
Indirect Discounts for Non-Member Banks.
--
'I'he Bos.rd ha.a decided not to issue any r e g u l a t i o n s at
t h i s time defining limitations to the accomodations which
may be granted i n d i r e c t l y to non-member banks through members,
but suggests that the o f f i c e r s of the federal Reserve Banks
exercise proper d i s c r e t i o n in preventing abuse of rediscount
privileges.
V.
Branches and Agenoioe.
The Board believes that by-laws for branches should be as
nearly uniform as possible, making due allowance for local
conditions in c e r t a i n d i s t r i c t s .
It appears t o t e advisable also, as a rule, t h a t the manager of a branch bank should
be one of the three directors appointed by the Federal Reserve
Bank.
The Board would l i k e to t e s t t h e p l a n f o r e s t a b l i s h i n g
c l e a r i n g agencies, based upom the a c t i v e cooperation of l o c a l
c l e a r i n g houses.
It appears that an agency of t h i s kind would
the
banks
in
the
c i t i e s which a r e l o c a l financial c e n t e r s ,
give
but which have no Federal Reserve Bank or branch, most of the
benefits which accrue to banks located in a Federal Reserve
l t will not be the p o l i c y of the Bottrd, however4 to
e s t a b l i s h any branch ot°agency in any c i t y which is not olaseCity.
i f i e d as a r e s e r v e oi t y .
Vi.
Ezohange
•
Hates.
In view of the unanimous opinion expressed at the conference, and h n in
g mind the l a r g e number of banks which have not
y e t applied f o r membership in the Federal Reserve system, the
Board has decided t h a t it is not expedient at present to f i x
the charges which may be made by member banks on checks deposited with them which are @leared through the federal Reserve Banks.
The Board is willing to defer a c t i o n on this matter until eucn
time s the par l i s t s i n c l u d e a much larger number of' s t a t e banks
and t r u s t companies.
The Board does not contemplate making any changes in t h e
time allowance f o r the e o l l e c t i o n of i n t e r d i s t r i c t items, t u t
has determined t h a t the Federal Reserve exchange d r a f t s drawn
by a member bank upon d t s Federal Reserve bank when promptly
V11.
advised at the time the d r a f t s a r e drawn, should be t r e a t e d as
payable upon presentation at any Federal Reserve Bank, and c l e a r e
through the Gold Settlemnt Fund.
V111. 'The Board has addressed a l e t t e r to a l l Federal Reserve
banks s t a t i n g that bankers? acceptances should be paid in act u a l l y collected funds on day of maturity, and that it ca.see
where accepting banks pay by c a s h i e r ' s check or by oheck on some
member bank of their l o c a l i t y , one d a y ' s a d d i t i o n a l discount
should be f i g u r e d when the acceptance is bought.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
e
j
2
r
m
.
.
m
.
.
-
5
.
re
.
Mlh
.
K
t
•
1X.
The Board urges a l l Federal Heac:r-ve banks to combine with t h e i r
e f f o r t s f o r the s a l e of Treasury c e r t i f i c a t e s on indebtedness, he
e x e r t i o n of every energy f o r adding to t h e i r eta te bank membership
and f o r the f u r t h e r c o n c e n t r a t i o n of gold in the Federal Reserve banks.
X.
The Board d e s i r e s a l l Federal Reserve banks to p a r t i c i p a t e in the
benefit and l i a b i l i t y of a.ocounte opened with any p a r t i c u l a r Federal
Reserve Hanks, by f o r e i g n governments, or f o r e i g n government agencies,
which a r e p r e d i c a t e d upon the o b l i g a t i o n given by the Treasury or the
Federal o s e r v e Loard, or both, to pay the d e p o s i t s in g o l d within a.
c e r t a i n time a f t e r the conclusion of a t r e a t y of peace.
A letter
t r e a t i n g t h i s q u e s t i o n more in deta..i.l will be addressed in due course
all Federal Reserve banks, and will s e t f o r t h the method of d i s t r i b u t i n g 'these f o r e i g n accounts on tbe proportions applied in the case
of the agreement with the Bank of England.
to
X1.
The Board adheres to i t s view that a d i s t r i b u t i o n of a bonus should
as f a r as p r a c t i c a b l e , be undertaken only at the end of the year, and
that any adjuatn,ent t h a t may become necessary during the year should be
made on the b a s i s of an increase in s a l a r y .
In the opinion of the
Board, it is not expedient to have the· bonus constitute too l a r g e a p a r t
of the s a l a r i e s pa.id employee of Federal Reserve Banks.
.
with With r e s p e c t to toptos not on the program, which were ditscussed
the governors, the Soard holds:
X11.
That domestic acceptances drawn a g a i n s t a pledge of warehouse
r e c e i p t s or s i m i l a r instruments, should be regarded as e l i g i b l e by Federal
Reserve banks o n l y in cases where the acceptor remains secured; that is to
say, in such cases the c o l l a t e r a l should not be r e l e a s e d by the acceptor
a f t e r the acceptance has been made.
It is not p r a c t i c a b l e in every case
f o r these documents to remain a t t a c h e d to the acceptance, b i t if not a t t a c h ed they should remain in the hands of the acceptor, or s u b j e c t to h i e o rder
and c o n t r o l , u n t i l the acceptance has been paid or o t h e r approved coll a t e r a l has been substituted.
In some cases documents have been de·d
posited in t r u s t with the Federal Reserve Bank, and t h i s appears to the
E a r d to be an e x c e l l e n t precaution in dealing w i t h weaker acceptors. b In
®ll cases the acceptanee should c o n t a i n a reference to the c o l l a t e r a l !py
which it is secured, s u f f i c i e n t l y clear as to i d e n t i f y and l o c a t e i t .
A111.
Trade Aoceptanoos;
Whenever d e s i r a b l e trade acceptances a r e offered with the endorsement of a member bank, they should be purchased by Federal Reserve banks
n the same manner as if o f f e r e d d i r e c t l y by the endorseing bank. When
a trade acceptance ie offered with the endorsement of a member bank l o cated outside of the d i s t r i c t in which the accetance is o f f e r e d , it is suggested that before purchasing, the Federal Reserve Bank should communicate
with the Federal Reserve Bank of which the endorseing bank is a. member.
The board deems it important t h a t Federal Reserve Banks should a d v i s e @ch
t h e r a a to local conditions and c r e d i t s affecting trade acceptances and
a n k e r s ' acceptances.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very t r u l y yours,
Governor.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
á
mxa.·- a,1111,
tu
ooat•w,noe oonwneo. at 11 o m. ln tho l'ebrn.1
Present, 1lotarnora B&;t41ng, Delao
ma u
Moc ord,
Passmore, Sony. Fancher.
Wold, oDougnl
- - • •
!l'\...,
t o n , Calkins
-a
•••rnBO&N room.
or the
Bo&fllt
1111••• _, . ,
m4
oowmon
OOftl'lltftN
Bo••••
and Trenan.
GoYen:aor JIAWlln 11tatod that a 1%st o? twelve topies for tU.1cu111on hn4
' " 1 1»••PJrtd
om.ho WG114
be 61, 4 to 4loc,u,a otber
hloh ml$ht l>e re ented by the
@0vemors of tho banks.
Governor Harding the•• t a t e r wo1ooa1n I b o f:»Y mur , tooJ.ug I
brier.
'Al
lo 11
reported as follows;
*+y
AWilAIQli,IZ QR PiliillJI - aie operettau or
1.
the Treasury are no
puao•',
"16l1-n, of oroO.l I te • • • e n H B l t Whloh t: t l l ntOe at l a t e more extended redisdountin
Wl'h ' " - • a l
mgunduly
,.,. ...
!'98Gffl
bankl.
l n d l f t t u a l r e • • r t e btmi 8 a.bould. be o&.Ntul n'btml a t t n . I -
l a r g e loans to banks
or other
with Medo
bams.
bloaw.11
onrea,eulon or loan• , o themmight inter-
liaserw t m k • ohOlllA nol c U • o r l m l a N - . r a w . - b l f
t on or two l a r g banks
e
to the dt&rlfllent of other •
' 'H t
banks
to hata, !Hlllllel'
••••rata1
:rtcll
1•
bankll la Pl'OP8Z'lr d1 tt&Nnllle.tllliJ bet,,81tn•aa uttal 8lid le •
t•
msgg\hit
(a
Important for reserve
J
BA.Wt:a.'•
OoYOl.'llOJI
HaH.bl{f aal4 t h e Boaftl bA4 l'fNalYl4 a ft 111a, io adftnle
-....
®eount rates from one Federal Reserve Distriot (Kansas i t y , )
wasexplained briefly that one bank bM oYerntenliff. but tho
••4
"el1,
or ••
n . l a l r . t of M t• • · \\t\ldh
n o'4er lo ooneol , le evil.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
mlshl . , , .. , n • •
Ul ,olhor
The situation
Board
hnd not
4la&ttt••· ..
le thought each bank must control the situn»
2
tton in i ts
O\V?ld ls
()
bite to
l 1,
O
trlct.
It had 'bttu propooed to mtlke a d i f f e r e n t i a l above o f r i o i a j 4 laoounl
w1th o t f o r l t J S Bor membor b nk:o ln exoaos of t h e i r required reserve
bai.noe or .multlplea thamor ond ho de l r c d t o k!JQ the QP1nton of tho tJ,Yemore on
h i s point,
T'his meant that thor.e CihoUld be,, f i r s t a nofflal rate to baakt W1'h
borrowing and a higher r a t e to those ho
#dinary
Qt \uatton
wanted to borrow more than the
u tltied.
lo s UbMt ted to the aovemora o memo
randumpropared by Governor A, G, Mil-
ler favoring an Gdvanoe in rates to strengthen the B1tMtlon. also a l e t t e r from
or Hamlin op os tns the n.:vnnoe,
For consl d.erntl on.
tie atte4 the llT•
•.-no,a to con ldor wl'et the e r t o c t of m Gdvanoe ln rates would have on tbt sale ot
'
4 r t i r i o a t e s of ind btectnes n the Board did not wlnh to do , t b l a g to impoda or
bttertere wt th a wide dl etnbuti.-011 to t h o corttflcotes of 1nf.lebto@esa.
tte th n dteouaeed. tho poU.cy of mc,mber, bo.bks gurebe•tns oartifltatea of
debtedness and borrowi ng ns11lat
tut b&ll'l'I.
mno Ul 'Order :to ake loans to t h e t r oo rreapon4•
pi-oft t tberob •
tho m mbo:r bank umldne; th
,
,
BARK.BAL4RE0R2 A1ER
DRIER2SE22
AA6AI
invited discussion of some method for stand rdt&i»g ro.tei and pntvenUn unaut
m p o t i t i o n betwo
or ftopoolto.
1-tlbg
=ome complaint no, tbt1t 1
ottles 'hod not Jolno4 1 ft thl$ moYGI18nt md were
mpeting f o r buotueoe: xmd ustng hl.ftler rn.t • • •
havino
m
flloughl there was an advantage in
the mte of interest have relation to the re erve
ard feels
1
lnod th CU,,a t l o n b. the New Yadt
914 th t matter heel. b b l l ' tidJU t t d b u t tihe Nt
ltOUGO banlta ln i'Obl'Wlr,.,
•a.a.,.
m,e:tpl
au
dlQSount rate.
!be
that tbore llould be ln some O t the dl1 tr1 ot1 a rccblotlon tu the r a t e
interest paid on ban« balances, Thought there wae need f o r leadership in these
a
ore tl
#ederej
t
t
°
-
th t the Federal reserve banks a s s i s t , a n d in important s i t u a t i o n s the
Reserve Board might be onlled upon to b lP.t as 1st Uewfork.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
,
AN2ARA DA&SQIU RS2A.
JV2ANASAGASRAJK62, - Would 1 ix tho governor to
IDuta.r the etioo, or a110b aooorMlOd t lou lhrou{b member l a u l on f t l e r a l
.... -.a. lhetr
....
mtml>trOhlp. eho\lld 1 l t d l Uom be llll)OIH upon accommodations to aon-
r banice,
The qua tlon waa rateed aa t.o bather lhere wen too _,
Ullona being extended,
. . . . . . . olH••
., ...
OIOIIIO•
Is t h e I rt.-1le&t b e l n <Ult41
IBMIWStt AP» AQ\Rlllil •
_5.
ia .. .,
f t l l N l1 a uNWUs 4. , . 4 rox- bnm•M• n o a
••• ,.....
ftl .IOU& - - - -
It establish ssme in same oities, but not in o t h e r s ,
e
••••n•
that it is c1t1lraltl•
l'hll t b n l 4 no, N OYeHou.
governors should discuss whether there could l>t Ullltoftll\J la a4tllnt,,r::Uon ot
Atlante had n . l M A the question
ranohen,
to,
or whether agono, •• wttlab • • 1 4 P N f l l •
411l•••u,, nffd1 oo'Qld not bl· eutab11 he4 ln plaOe ot l>nnoh 'bauke la •-
'- • • 1
oanbe matnlalm4 at
small , expense
vs.
llrik• la oitl••
branoh bltbk.
ot having branch banlt• teel that they are disorimineted against
......
anaare at a 41.••
. . . . _ l a e t m 8 8 1 \ l f l t l Q bu l n • • • aa oo-,nret With 1 ' n u h limX oi ties,
Chattanoog@,
to, l M t l l ) N . bu t e l l that they have not f e l t th• .. .,,. .... , of · - · . . . . . . 1 . . . . . . .
.9CUNd 'by bftllldl b a l e ol'1e
"'--
'-
ll,AlltMQli IM1&il •
a.
•
•YtNor• •--
. _ , Whl'111• ii was expedient at
h t s tame to regulate charges whioh could be made by member banks on ohsoks deposit-
"
Olea.red throuC,, the Federal re ne •btmke.
with th ..
e noattempt
tee1g
i l l bfmk toel there shoul4
•
to regulate Olla•at• 110Wen4 thht the el.'Dhaap » n p o 1 l Uoa w.U.l work
out satiefeotorily,
7.
IR2ARI@.TRIG
TOLARANOS,
(a) Time allowanoes are based at present upon t i n e in transit to each
,....,
. . . . . . . 'tau, » l u l d f l l l l o s l UM tar ..
••• ot 11'-l
®r e s e r v e honks
........
,w
o o l l t o t l o n of l n t N & l • l f t t l I t• • ·
oolleo'1oa beb1 mf.iAt by wire,
In order to protect the Wed=
their successful "flont" ext»age on other districts is purahnsed
reserve banks f r o m manbor banks at a 4l8110DI,;
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1'alU
1 ':, rtffM
tea
&ooop'64 o h e d s
on
We
Yon
f r o m loo lL bn.n
»tl1t11g1i'tderol raoone bttdts to
9eiving
IJ)ler:, tbo tp•ootloe ot N•
® r f t Q tl11.t 1 \ t . "
the sechecks at tho dt count :mta was
I te OoYer.noro van ae cl
ermitted,
to •U ouso wmther l t
o\lld b ndvlsa le to extend t1:mo schedules,
'°
wire t r a n s f e r s , thus d i s t r i b u t i n g the "float" to mambor b
be 4"'-lftl laateM ot
1bittheir, <rt1 t o d J " making " f l o a t " less tor
8. 2
Do ban
itc1e»e.1 ro r•e
1111
prora.ptl17 navloo
OllO.Jltll dr. ft
re a n o t.mlt n.n.d
"-'-••ea that
there
mD
ber banks,
ot tbOlr
ve o
Npor11
4ftlt11
• Should
1m..tantly at
111 .. nt
1 t b r o u [ bthe Gold
were not cnou :b of •tho o exoban
A
llvi.at1 n t u r i t y ?
he
ftlOOlYCd
tt
- Are
h
m
ed-
y
beln 4rawn at vr• en,
draft
#oderej
1d 111eotuol.Jt oolleote tt\mdt
they boin
If not, tm ponf'I.J.tu of one d a y ' s a d d i t i o n a l interest imposed \ffl.tN
p11,,eb1• tho noxt day through tbo l o C U U11
. 1'1n hous•I
( I te:»
On this point
9e8es
e
COYfJftlOJ' Delatto
"to wad a gun" and it would be neoonsary to make thempayable at par at any
'
tea no 'bt.m.k.
9,
llkl
To what extent are those bein
r
e
hoeka
ermitti»g
an expression
n
•
was s cert ined thst in mos,
Uttl it
i t t &rrongo4 to eoltoct either a penalty of one day's i n t e r e s t when the bUl
1)1.Ui
Ola e e dor to bnve th
pt14 ln c h tunaa on 4 ';U of
tttfttJ.
\
lo. U,KMla Uiuml QhJ!AUQW - Whe GOYem.oll etated
plans fo:
of
r sale of aurren, teooee ot ! Naeur, om-'1ftofltoo ot tmebtelneDa, rode)(X)lt
and wt
...,."1dr4WJta1
or fan ..a .oul.4 be had y
, , , , , \b
t)m;t n dlooutiOlon
11.
Ae1l1tlli'lt
Negotiation wttb torelsn
, conciu ton of the war,
a>Y
ceorolea.-v i.ettlnet,all 1ttU'•
mmnt • ln-w.,1Tlft6' blp,e.ntt of old
were being s s r r i e d on. tho GoYemoz"lato.114. f r o m
-- t t i m eanahe desired to k n o w vhether the governors woula favor a p l a n for a
v i s ± 11
Of
the
thlc l l a ' b l l l t J nmon tdl
#al r e s e
l er vn ek s in an e<uitabl
e r s t a n d i n gbeing that tho plan u,Ud bl s e r r i e d out on
ou •
tile iiedOral re
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
rn , -. .
proportiome
*'••• On tb1s
polnt t h e :>Yomora eeometl msoalmou
tn lb u.oYlns tbet t h e
t t e rmust
be handled
1"1,
tht
lot, 1 t
mor
tho, (J)Temors, md the7 voted to elk
n'llns tt
&1'! to .ottt out s lr:b f b l ' eaob b mk o
ied1rfd Etto
Poporst ion,
NU.r,a pro
t \iltr h0l4d coutt.nue two
Governor I Al¥' ltxG o x p 1 l b t t h b t lt th<t 'ti:
I b T O ocmm.M n t of
Yolk 'ttmk ml
14 to
tht
"
equitable
C4,
me
..
o•
5t
.ooo.
v e r yhosvy burden f o r on
wo ld
w rtt bet11g (leYelopecl t o r en lnoroo. •
to «,unt rbi Jttnoe tm.d f t s e t allier& tn.d.e ba.lnDOol•
t.ho olti dft»OIHI ot
14.
tin
on the t a t o -
llllu14
th ro th. J
rve b a k i t s l i a b i l i t y
1:2.
on the
ov :ruol"
Cd.JU tm
vemnors to consider the salary question aud the b nu
•
ltQ,Mlul tt ked tbl
Uun tm4 m u o rocaltlMJ_...
ttona,
Governor
nt t h l
rdi
o1nt UMae ed f l e e Oov
r:oor
1burg to preside,
,_
Ur.
arwrs at1ted,
b1'ach blil.Jlltlhould be
Regarding
o u g h t it advisable that
lho\tl4. be ln
tent
han
1
t,
whether the manage» of
old shipments, governor Verburg s t a t e d that it was in t h hands
>
•r 'he f•te:ra1 le fWlfe Bo N
'°"'"
ln umm. ctfon with bxa ohbanks,
'
direotor of tt t1 b ll •
14 ehoul.4 or
w1t1,her
out not be em,orteL
fhi »ou4
ola reserves of foreign Gov l'lffl.ttml dlt Ot!.tol Sn tb!U
4• " '1 N M " 8 .............,...__
atteo'1ng a l l bt11;l.
1
w
n lt
it wa a Ylta\le to have the netter
by one reserve bank only.
SO. fOl'llSl,IQoYefflmol 41 b ' t J to
" 4 1 t •ame ao a b,a;at.1 for the l c & 1a1of
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NYl4e 9'>14 ,.•• ,,,..
au.rrenev lll lbelr
Oft
la I b i s o o a i r ,
1mffl• .Ariel' Ille
WV•
-•
I
-birtua .tn. mn.tml tbe elttmttou it w ce.n hold th eotd.
111
lo Plfflllt tctel
ernnents
to no@umuata gold h re
fcro1r,, Government w i t h i n a eertein p e r i o d of tlu.•
*hiPJ>ta. C.Oth
' - d e J.i.oaM I workln on tl i a !'"' bl
securities
might be held in foreigr
,, .....
-,.#
one
ks
it vas 1
wu.Jt.
Qhe
ore
countries, thus
gthe exchange situation,
10
eloeell' v.U;
v
t b f .t
loss # the
tb1 •ltuatf.oll ....
the cmrteUmnt of ored!i al
1x, ve
th&ii
te.vord. tbt.t a l t o of
r tht
their quotas
Parponoof borrowing a g a i n s t
(l
ll
9nee#vnt i o n of credit.
to tho
l l t to th
OoYOrnoiYI
•
b
r
n t t r r ltlg J,oatiln(D, thU
ah al •of. in ti e mo
Jianola batat 1 tuation.
lle ortod t
.
h 4 n branch brute Jlallffllle,
lkf<1t h a tB i r i n
lt tn tllc
rtcb l
8111ttl
e
81U)hl• alld.
It blllbob banks are to be f u r t h e restablished, it would soem
bo Juetlt1t4 tn t x p N H n s b , . _ h lbanka.,
cf! et o t th.o 1on4..
ti el!
lntntnlng these bffillebC - c.u, b i r t c n t .
or b
naanu
e t t t o deal red branch bnnn 1azt8111
t -
at l t n e t 21 or 21 d t t l e e m.11 nee4 ad
hi n ma
'I re
cnt to tzrm&!fo n n 4 t l
el-ano '1h0 dleaua•M the
g tlttm l n t , o d ood OOYemor
latenu 1 ot local l t l e .
9hattenooga desire
Bhat
Q
r
tm l t t was hon
t te4
1n ;J.1
basis of i t s being
OJ\ the
ll8] ortod th t tL" estoblt bmenl
a
n
·
k8 hnd k led to bringing s lllE.lbo11 of 1 oona:nt fft te
ln c nnootton wUl tno
t b is
nt of
branoh
bans,
mko Into th•
Governor Beltno t e l l
in some cases nganaies might woll be established taste 4 of! bronob banlt'R and setta"""'
t!t(J tJu, lillc\.
at
Governor
Warburg
s u g g e s t e d
wo mi , tnlm u tlui lacnaaalon of the ee IOploe
• Uree tnta,n<mlD.SbttoI-e lun heon.
b the e x o h r t 0 o t ri.w• ne to the ourt')lllMtnt ot o t u t . bl Wt1 e b the 1••
9rag1
.
oa was
QQn, r
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.:t.. it developed that there were d i f f e r e n t methods as to th• renov&la
ot f t f t e t n MJ loan both on oommeroial
ft Ortod that
th '9 roa. beea
OQS
ir
in giving the
nttent ton them had been 20
k; lhtt,
to
6iven continued renewals
aper ana ovem
t:wj•c, ! t O
tihe,.. b n\t ro otto4 that th " ttt.nl
b Dk8 to o 'l:rf GoVer.fflilOlll · • ® r ! t l e l .
fo
lo
Gov m , r mu. r roportod that t h e ygave only one o rb ,o 1
GO\trnol' U h e r rep;,:rt
a
at. Louie
and in one (; e whioh 'ORM
ixe
N n O ' \ :ta.
nt :1oountlos.
11.
ffint 1n t h e CI.Jveland 41 etriot, bfiS• Mel l1wn
v i s e d by oireular thi t t l f t u t n dof loan• wouia be 'fettewK onc.u,, mSltlQB a l h l r t , 4q
loanat n
... 4ey rat
tl tt
but ti t lt othDr renewals
snkomua Py
'11• 9 d f Wt"' ts of I 1 / 4 mote84 ot 4 •
Go, xnor
the use
h
Of b
•ant m o v t ln conneotlon Uh
stated that th I'll w 1
Wabrugr
t no
O
o rafu) about
tkct!n cotton h i e h
Ut1t ot
oc nt
lo XI beyond "tra
lJJ,
hould b
Ni\Ulr
Dome He BOO , ..
moos soured by
mestie bas
rer
t no • ousnt to ba eeo-ar d
brou ) l t
ptsnoea wlha
" " 4
-- rel o-u a.tocel
t; c b or.
bWtlt purohame ban eJtfi CO•
ut tn tl o di se
t h a tthis aodoptenoe is s-
# t a t:
b a ollatan,a.1.
* or
, tlan
L
l"'
rt u
t h e yr
utr
rehouse x e c i p t attrl4'fle4 to
\b 11111.
Governor
polioy and
•¼a
Varbur
work together
l h C l l t tbo derrJ.. re e , w
a n d
that they should be
• ot t h o u 11 of tt" "' .rcoelpt "
he Chiosgoconvention at
as
-¥
o p e nmarket
ox
which Bernhard
hag9d
the impressi on
ooar• .._. the
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tu:t:·
i1y watohful to
ar111u1; o & l l t l d t n t l o t ato
fJttft
arnoroi
provent an
a tooldeat ••
aholle representative had reported that there
Mr.
Warburg f e l t t h a t the Federal reserve bsnrs
out: th t ti-Ltd.a
acptene
Y t ll . hdl.7-&1 .ea erw ..ham••
l'he
sh u l d
trade acoe t mot nl4 th t samewe;n, uot t1Ul'lbn•4 bJ l t t u f t l
"''•Pf banks,fvom the open market.
o l d1et
?ft*•
:.fl
a.O,,wrM4 t o r 1aoh«1
P1Ol)lrl.3 tntlorasd oett bo
V•
lnfomal excffiDtl ot
Governor Morss;
• t t t o h n oro4lt.
Tlftl
to Ci:rltdlment ot orc4l1, bu a
•
a Qtlf.;r
one btmk doltltl
.ltlk oe.mp ten ch 14 b
denied by the other.
banes do not
f i n d d i f f i c u l t y in that
Ve
a
cooperate in re-
not tloiug lt antl ms1ttn lori.Da
llttt
tn in
l''V}Otl
#ashington ln4 lf p0 e1bl•
differentiate betweene s s e n t i a l and l e s sessential l o a n s ,
In t}.u, un -rtm.ol
l>e ., Gov. Oalkln :
.._"111 Bl\d
do
diatriet banks restriot credit quite
umerattlltl tihe reuano.
Governor /unohor:
Have issuod no olHttla.r but haw p r e s a l t 4 ,_.
1 l e x banks not
.Pltt..,,bl.u! 1. ooe.n h
t
hlllaa • • • 'fflJ.de ccr.olon tor dh
-• • aan ctaotor,.
OP'N fiaru.,l
otl'OlQ.q, •
nt
Ott
to t
"tMtk
n1(Ut1
to
trying
tll8&1
to
capt.lat
C® on tton or o n d t l tiild r e l t l l t •
tm r •
Richmond has sent no circulars.
Ubiftk it advt.data., to lffiTt
t e. lhe la
Explained situation ln d l 1 t r 1 1 Xo. r:.
Dep, G
ow, Tromam
,..,
" " - • • 'llltltca
ot tb
11
ttendod by tioo or more
Governor Seay:
tie Re4ifai B
ld
Are
so much,
l l t blmk
B.Wt In•• lo
th• MOft • l t y o.t - t e l J s e b l at me tlftSlt &1 1 l U O l \ ' ) O , U e d ••
Gue,
t!M 1111rllfmoo of h
vu,
tll& Eot'ler 1
e ell'l'o lil®td r.M• a stat..,.
taking o. vo i t i v e strong position as to tho nec1ual ti o r . the nem , u:rglnl eoonQJIJ
'-'l th•
after- • • n ins
vuah
¢i
ro.ttlnr to
Gl 1
y
ban
in th oounLr:, to a
k:
it4tl'a1
N•
...,rik to t o l l w 'P J.u wwh district,such methods a ,00.011 bmllc dacuod mo t a,pl
to " t u r . tteau.lta.
Gw,mo t 144 O.lronl
.....
r.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
bnmie
in oux distriot
ao.., •oiusttt.er
produoed ooa nou1ta,
not yet oooporatimg,
"Our experience the same as
Do:>. Gov. nos.ton,
lTAi'Q
g e n tout
smaller
® a i a l 1 y with larger banru,
Dep. Gov. Hoopes;
1'
Minneapolis.#
e have issued 110 i r e W a r l e t t e rbut have written ex•1• aloq
U..ee 1 b N .
Dtp. Gov. Calkins;
1114
so far as
o»n
we
Our
havo not yet r e a l i s 4 the llfPOJtanoe
judge are not cooperating muo •
OoYernor UcDougol.1
, extenatire oorr t,g>Otdt»Oe.
make and h e a v borrowers
y
understand situation,
Governor McCord a
OQ.I
.
cf
LOi-gctl'
Progress not sg mueh as desired.
bankl 4o flat t b t l t k moro than «JO ero
,
fo r t along thi: lino.
(ktramor ;m,lJmt
ol d f o l l o wout
4
lsuo, tl • oni, Qt.bor gov n o r present, agreed to r,.
iuousaion on 7opio Ho, t,
lv
t
"'3ft1r-'U &ll t,
of
J:.r-tul
arroot ndvorsoly Govornaent finanoin
l/.;.
G.ll4 be ot.,,oat1v- ,.
1
t,111 lnto
ooll ter&Ltn to d
nt
mor
poeltlmt
t,
f lnmnoing it a l . by t
u1
pt·
Jteh
_.,diacotu1'1ftg..
1 / 4 %on f i f t e e n d a rpaper,
t
tt
4 U' rot 1n 41.oount r te
r. ptU1¥
e r e every
Goy,
oh 1 :o ln 41 oa nt :rates n&
nd
Gwomor
arm ••
Govornor Delano a t e tad that
D1 oouat lltitec ,
u l d
"41kttt
ue eu.ch a utntemeht 814 •
the pasn
Go, mor
ll t t f a N t
utd 1
whdsh r a t e
h h1 l t t o t .oo. bt th
ti" \l nk t pre ent 1 o
tloY(lfttO:f as
,
o
1)
ot lo ht
a ln Phila
Woe v i d e n o g of i t ,
elphia d i s t r i o t »
t e l ( t J ) g undut
I
4•
uupre ai-14
exn
""rra !Jlon o 111111 I.lo to chn11
Gov mor olth
€ raising
{nore
#a
ratos wore
I
gree with Dr. Willer*s po 1t1oa a..s to the a Ylaab111Q'
I in normal
ti
1:i11t
f!
ara 1n: war ov
nrid 11.ould mt ta.•or
in xeto#,
Dep. Gov.
It.I).
Hoopes;
aw. nox1en1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
*Do not t htk ri ttse of 1/fi# tUl4 h l '. L the
P situation.#
"lhln1<it l
a l a tt.k for Wmk to oonttnu.1 411oowi1-
1111
ftt.teeu d &.Ylex.me et 4%.
1
emeral
tee t d by hv lrtg
fl:h m
.. thl
oanadopted an
tt r not to h •• t1ao4 mto t o , 11 dt t r l o t •
t h l l l l t lt
GOYenor
rce
OUP l
bl:llko are " i n and
\he
61 \f1
out"
o•
on lonns,
no hnge
obnbl:; n o t meke en 1
Bo i!V4 Will
/arburg
but is carefully o
rate to 4 1/4%
!t.'hlnk t t uuta bo
:ODo1110l1
Governor
QI}
t r o n BJ.a. '
»o not boJ.low 6'1.YOncu, would i!toct th6 altmtlon
De • Gov. Cnlld.rJla
'"
toflt bU!e tu't4ebottld be car•
Sa t e
tho e ! t u t l o ' . t l
a
wI l l bl
••
ff
etUttte Oh
n , o th•· ad'1.ce of tl'B goYsntafa
nbl11tJ of any ohange.
onrnor o r 4 1 our utCUt.lv oomJ.ttoo oonold.eroi th que Hoa bato• I
1 ''1
o o d to UlY eh 11.S•
and or
11 Gov n
t J to
:
on bomta.
.do
believ
ob 1)£; in
rate' r o u l d ad'feet adverse-
not r e s e w zi±teen day loans,
Gov. 111J twrs • out o c u t t v o oo lttoe oons1oor•4 ro rotul,lf the
l>ep.
P # d ghange and
weare
unanimously
N•
rpo d to obnl}81 bQ t t the present tl u .
Rsturb sentiment, m i g h ta±'foot r a t e on b
t1
Jt-
olt14
coo pt
f e e t rates generally.
Governor Morss;
Think
advanoe would a f r e o t adversely borrowing of non-
o b e y banks from their correspondent bark&,
. _ l l e r ba.nks tram eu'buori 1tl1J f'<;>r
lllt
oomutl.111
•
•vl'
1 ghe
•
mnvv ocrtltlento
d otil4 hato to e
•
lnon
o bl
Governor
$
rlllood our t l f t c e n a. r t
oth r r a t e s , Not
to 4 1/4%%n t i ; ' .
th i n i k l l
Wod
l o. ked OOYotnb• l t l l r lt flO:vrmoe
teot."
(Gvnei- l
O w••
-
OllJ k
rste
to td to
Hod only payohologi=
la.tlf#.ltu. n
a.rlJl:rrg,
w. »osr4 aid. not
rat o rates although a l l
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Alkt4
vstes showid be
ot 1/&1/, in
extentthe borrowing to whieh Goveror Miller answered "No.
IQ;
&
dlst .tbtd
Go•vnor li111or1
loa.,4. IA..
Think en advance in r e t e s would deter
dl
t-ldffl• It
vlaablo to nulbort•o
tr:\CIIG pl'O'bnbU O&Ul.4 1'11 huwe the ·-
f t l t a, ttll tl
••
°'
Vim d.ttt rent o n a i t i o n # might have a d i f f e r =
e ot U.tms tr
t
othGI' l>t1m.'1•
(roy m o t t l?anohor,
t h i n k 1 t'1 1tlon ViOUld be i m p r o v e db:,
f t t t e e n dt\Y lo
Cord
CoYtrr,mr
or h1p •
l1a
porte
ot ton i
data.rt, lt1 oo
ountlt
2
B l'
to lt\l:O i to 4 1/•
trum
y
may
ropo on ootton hold wp 6ll4
poor tm4 b 1cm ®V
Ol\
WtJ.tld: be
to frut
1
C
:nc
of cotton was much emberruened
that
itln olr18 c w l d not bo aeOlll'
museth
'1tb t h e n
MV
41 •
w1
ct ion n t only with th
ol
cu·o:, b\lt
'OJ;•
---·-------:ct»•
ov. Oa.llt1
or
mnc1eoo etato
tm
'AltUJbed ooc. us ot tho r cont do
tt Ob
Qld thou
u o t a n e eo1 the
near)y
uah an
t it a
vl o u
1 tato,u
o 4 t-0
Governor Delano explained the re-
i
appal.
t
t
1 liott,
at
ln
o 1rtlon to
S » l" r i e s ,
ow , u e a t 1 v a oomittee f t x t 4 aal low.
Go¥1rn.o1 UOOol\ti
• l l e • anr tl • •
A«Jusl•
StQ.o.rioa oil ottloen mmtrn.11J cht41BC4. onoe t1. JG •
.._
o f f i c e r s only
»IQ,
No ohange in o l t l o t r a '
submitted
to e d e r a l Reserve Bo .
Governor Mabougnl:
Ghieego vendjusted sslaries of employes July 1nt,
,
mus
or extra componention J u l y 1 s t .
Will make suoh as n.ooaat r, at en.Aof
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ntace
neoouneel, wes prepering an
ot
Discussionon
c.i...." • ot
ou.
tlon m4 hn4 avoided doing so
every oase,
°pinion on the us Lion
1erk8
l r k oas non
- 12 -
Gcwen..oi- Pas ore:
tli'ftce:ro t:>omlug tn.
Have recently adjusted our sa.laiw ! l a t ooeau o of non
bellottoa bl the polioy of not inoreasing s a l a r i e s
hll(;:delpht
bouona thoso. ot normal t i m e but favors paying
20%
bonus
on otz; montbn oelftl'U not
OUl• o t t l o :r , aro tnclwtod. tn t h l t t rom:nondr.tlon.
'm>l\">ve cf a l l of our roo
ho
aomd iil.4 not
.cnc2.nt!on
,o QAu t oalcr-te
Govomor Joldi
nually.
t, have a l r e a d y pnl4 bonno
tho extent or 1% on the aal,or:r of tho l a s t s i x months actually drawn.
Ve
P8¥
for overtime,
De uty Gov rnor Hoopas,
pay
bonus,
Our women.
Do not t h t n k 'Mt v ri
V:c cdJ®t
l-mt11Wlllg,
o? whom wehave about 5,
Pa1
o
11 overttoo.
work under the Texas eight»hour
ut1'f.clH1t nol.wlob.
o P!W ovorttlW
De uty Governor 11oxtotu
Vieu cheeked by hedl of aont.rtroont.
De»ut_yGovernor Osliins;
bas
DQl
We
report salary 1%st to B1 N1 cnoe & ve»r.
t st Obrl.sttDflB we po.14
rloe on thooo pnld by o tiuur )W1lle.
h lf ot a tlontn•
,e
o. bonua of om, ...
oatora.
Explained New Yori s i t u a t i o n
lmputJ Governor Trenan:
lnoretooa. cost ot U.vlna
s
OOVQfnoJ tJlllGri
1 , o n
a pa,
«nd
reported no to
tno:no. od ;pi'1ooo on n numbOl! oir l t & . ,
lo%bonu
•
pay for overtime,
• Governor .Jor....;
Ue pow overtime, recommended bonus payment, and have nt\-
Juito4 nomo Ool.orlos.
o,u,
l)onuo , n
WS.IJ
submitted to tho Bonra rulL\ \\llS not
adjusted a l l s a l a r i e s , including cashier,
Of
-o Boutd d i d not p;prove
lio
mu l c h 8 1 tl0o we ad,jus tad on-1 rte a. about 1%,
$so per month.
t!otl\)
R e p o r t e das to s a l a r i e sof o.o.s1stant
O
Gbton.
J4Joum 4 at ? p. m. to attend farewell dinner g i v e n to
PolttrmClub bt 8 P•. ffl.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
aov.. 1'0lnuo at
13
iue fifJ8momln
o oolon convono4 at 1n.
Governor Seay;
We
m.
have to cono14D the Ranae.a Oltg
A
.
"Olot 16th u h m n O l ''balkS o teer for rottaoount in ouees
I l l e e Nt'ileoovnte ahol 1 be c h a r g e d1 /% of
1%extra over
or
ropoaol t!Jlt tttter
•
reaervo bolanaeo • " b
the normal rate f o r e l l
.
1 1 8 8 o t
pepor, Mid o l l mnturltt.ee uocp& mtoo oocured bJ oertlftoateo of Uldobt14n
.
.
•
ens na Llbort, LOan bondc on 1:thlcb tbere ohoU. be a tUftoNDtlnl ot 1/1 ot l •
1/•
ht t t ' 4 of
proYlt1e41 b e v s r,
rtoa.teo and L, I
lhut banks may, with offerings s o u r e d by o e r t t -
bonds abstain from putting i n t o effeot t h i s di t.lerenttol, If 111
lo 4otria thog bo11GVG it 1.111 benetl t t l l o
QftlJ et
Ulll the govern»
tlMnOlllf"•
o,a 1n r o t o t o - no4vlob thot r ol.)t'llloni
2ho crocll t qmotlon enters i n t o Ihle 1:1ntter.
GoYom.or uo»ougo11
it •oa14 be unwise to apply t h i s r u l e 1n
GYOJ7
88 Olld
ftllnk
think tbot i ts adoption \70\l14
b a r r a s s ti o roservo btJlke.
llq;nitr Governor Tremans I think our banks would b oppoood to It al \'i'O
feel th
•
t we c n conti-ol ON' tendencr un the part of on t.rtU.vl4Wll bnnlt to ovGNJiton4
'-1
now ::henever eu
ooaoo orl
Gov m.or *orosa
ls to b•
uo re us.re o4dl tlotwl ool.lntoml.
I agree with Gown.on tl)J>ougr4 on4 tTW!ltlD.
If tho plan
doptod, the penalty should be greater than that proposed,
'Deput:; Gwernor Onltf.nn,
»
not b o l t n e th t tho l a w o U l d pend, o cUf•
rll'tlltlQJ.1n mtea dlargod to mo ibor btmkl no propooo4.
Oottefflor ttoilordt
I a.o not bolleft l t to 1ogni to 41oor1olmnto ee propoa ;
In oag
• or banks borrowing in e x c e s so oapital and surplus,
1 l a t e r a l to
require ndditionsl
bo placed,
Doputy novonor uo:atcru
13
vo
,e are op»oav4 to tbto vro:;;
1.
,,e we.toll onr.e-
every tendeney and immediately caution the benrs against excess borrowing,
Deputy Governor
Roope»:
would not favor such a lin.e4 o.n4 to.at Nl.o ml
We
opposed to this method which would apply to a l l oases,
1lateral,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Woa l s o require extra
Ot•tnor lUIDWt,llt
11»-clai,
e hb.vo teen edoptlrJS the praotloo ot :voqolnns esoesa collattr
WI.th btu'lkB ln agrteultllt·el 418 trlotu.
De utw Governor C tlth111
rlb1mt
i •
ahouUl not
ttef4l)I to oontrol uxoeeaS••
r o w i n g by an added r o t e f o r suh,
ttentlon to tho m
C 11"4
r i n g assistanoe from re
" • • a \ or the
14'1 DDllltr
onenbor
no ban m throue,i 10mmr bank• wllhouI the knowledge sna
l e d f f a l ReoerYo SOnP4.
or 12mtlna the re g u t9o t
bank
4
\lestton ll&4 boon talned as lo t h e
tOOh btmk &G
to t b e
BlldUl\'; Of
paper held by
Ro member b el t oould d e f i n i t e l y know the a e t u j amount
t hG extended to nonm mblr bam •
Qf
SOS.4 t h l
whloh are oltg1blo ror Bfl':!berahlp tn t h e S , a t a •
OT m o r L!CDo1tgoil1
% the
t a . 1 1 ot nomaa'tief b a n k sse-
reserve trough very f N e l J •
.......
• ' • bank• to the extent
Oo'NfflOr £Jor e,
uoot mJJIIIOber banlre ta-4 J oa tee4tn out.
t h l u l t wo,ald bl n4Yl iablt to c a l l • tent&oa
1 M o b thl
:i
bobmg done o us to oornot.
nd.Glclt 10.Ud be o:ntottranaw to <Hll
om member bamar: as to nonmember banks 4leacnmt• 11111•
for • t o . t e . - t a
suah statement was very
®refully d r a w n ,
Owemoi' oaorda
It notntmbar
bn'nlit,
we not e l l lble f o r membership in
he Reserve System wo tn.Jt• their paper o f f e r e d )1 t!l86'ber ban1ts bid
,,.and
la,.., o••••
that such paper is not e l i g i b l e booau • or tbe l l f t l M 1Ubtl h h 4 oo..Utlon of
nonmember bank.
t t e » £ tom the Do ra
Opposed to asking for statement as proposed but would
et11.ling n t t e t l o n of menber ' b r a .
Deputy Governor Onlttnth
I rt.vor oout,olltns and t n t l u noing volumeo?
e m b e r bank paper discounted,
lotmemb r bankD bGU1d llot be able to
#a0111t4#
o? the Federal Reserve 71 tell. to \bl eslen, t h t J en dOla&
Deputy Governor Loxton:
tt,._
Wedo
not hn,re nnaob ;p.a,or.
.. otter D O b e r bsnk paper.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
favor
not
I would_ask for proposed statement
*
.
Oto'UN ,.
Ol' antonna•
-1 5 •
Deputy Governor Hoopes:
ham in amring tor
&<?obJeotton
o n r e not ncar:ed to rodl ccnmt muOhnonmtmbor b
;.
to o.ntr,g for tho et tomcnt. •
l thlok l t advisable to o 11 for tho 1.nfonn tlon.
Governor Sea,•
lllnl18r bontea v.ould. at•• l h e U:itormntton w1111.ng1,.
hey rodi soount
I so no
l i t t l e State bank paper.
tho lntomo.tlotJ.
Govomo:r Paaomore,
I
t a k every
We
It
ttmbflr bcmltt, I b e l l t Y e t men
ta o JJonlt paper,
are no l o t l n ln kOopln , tbo Ste te bnnlte out or
Deputy Governor Calanss
S a l t Lake Oity bank# to seonro a branch bank,
'ht Snten.
"11•4 St •.e a
nm
oenxs
isoount
" tor t to tnn
I
ana
1n
pane
Wllom th
mo
it"\ . . . . . A
a
a l s o s d v i s a d
ro
ml t
ta t. .
tanks not indorsed by
•k1n f o r th
"4taaCl.llltc4
b
banks t h a tthey should
not ro-
'11.ch .... •
..
l\h
...
tn e bomw to Join the
d•
t-t,
in our d i s 6riot we have discounted millions or paper to
Goveraor- 111e:r1
f&1¥,p
mber
• tn ,
Oovemol" I.1Qrs i
•• 1 lltsorvc op
:""-
Ad=
bJ in
t}
e b ml£ l t s o l t but 1n41Yldlmllf l>J" co e otftoer.
to tbe wlume of nonmanbtn.11bnnk
propo ed lnfo1tnotton o
ould
pt•
lbor bollcfe.
On raotlon:. l t a , o t e d .l
®hat it was unwise to r e q u i r e the information proposed
That it was thoflgbt rutvlc;able Dot· to t:}'.ke mv-r..otlon otmr
than to
tcb oorofullJ tho exton.t to whlob te l boln a n a .
Go.ornoJt see,1 S t n t d tbi t lt
._
hiCO!l)Omt d bmk dtoSG,tatoa. as
'1 to aet as i
r
ing
81
ropooe.4 to have
l
S.olfttlon permtttla«
tl.oPQaltnlT an lmt »ut up o l l f t l o l n t co11ater•
v. .
tai
tho oel.1111 of aeriU'io teg
A
UJ4t1Cel-
stamps, etc.
Governor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o. .:ent tor th
O
\';O.
Vold:
We
h a v e had ID O\U" 4 l l t r l o t ou o• two btfflk l'e.i.lUND t h U
• 11 •
'1Dt1OIYerat lnterastlng uo:..tlom llaye been rs.lee&.
- - •
tbt bt'llllte v.htoh nre now M t l n n
t() Jr.ty9
t}
ta le l l s t t
.
Jl C
to be aa.veree to
O,oJ,>a l ttl:1'3 ban a.
or
1 GllOUltl t b l d t 1t WO. unwle•
rt1.ed lhroU{li.
ble 41..m.matrn end oaOba.nge ot news, the general impression
Attor oon ltle
1 '-1
9
t'heN are aow 2
m.teb l•r;U.1otton.
AZG.SAVIAS
In 811 lnfovmol 41eoucu1lon, aG to the mothods employed »y t h o s ein oh8Y • ot
he
T h r i f t Oompaiyn, Governor MoDougnl 'stated that the Chicago Federal
War Savings
membex
Rese
' " • Danie .4
becm • 84 to NQ'111i ne17..._bdak ln the OllloatJ> 41atrtc, to subsarib@
for
OovernoJ' old. ee.11 that in b i t d l a t n o t thlre ha.4 HIil a very active aampeign ani tht t nearly every business bouae of any eise had been importuned to sub-
l l t t \t for ¢ 1 , n t l In
d oome ODtes s r o .
Govemor old 1 t n t e 4 t w t h e • th I tilt
t
i
v
i
t
·
tlea n d metbo4• ot the 81' savlns& Oefff!JJ.l
1 ' t e o lm4 o u ad frlotton l.md
he plan was not o...tTloo.out ••
he undltetoo4 oJi conter:,platd.
An e ohtm :0 ot Tl.OWi ahowel the
Prinoiple of enooure tng t h r l f i
m t e l ' t1
l11p eoalon to be th: t the b a t l O
wt b l l n , gc trJtlttli out and thnt the methods ad=
o»t14 li,. one 41atrJ.ot• ltltel-'f,ore4 n t b the Llbtrt, Loan Campgign,
At this
•
s..,
point, .tentete.nt eoretary Leffingwell and
aa1t«1 ttr. Leffl%18
.ell to disous
' • t t t t t c tea of
lridebt&dne
Ut
t t is important th t
ille. lil0ll14
tune
.
..
1
organization f o r the ,u,tnlltatlon of
a.
Seo. L t t f t l\?WOll t
Hon
Potter fmllnd and
Mr,
You a l l know more than I about
tllt!
detQll• ot O t , s . t l i = t .
we &houlA ,., ..,. lhoNl&gb orflW!li lion in e a h distriot
a»t ¥Oil to UndtN t ,ml t h e t you are a\ltho\'1ncl to Jlltllr• l ' t 1 U b l e a • n •
1 * connection with making a
uo.• a of the oa
p e n t as muoh as possibly thay should,
l a1
1
8
(
8&leta-lolo
1
hnYI
Ile then asked overnor ritel>Ollg,ai to
• tho Chiongo organisation whioh had bosn o f : e o t i v e d u r i n g the winter.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
GoTenu>r ttcl>o'IJQBl stated t l t l t they h
Sta.tea, had enplo,-ed 25 r e u l a r or
en a hend df.reotor \tho Jm.4g l v e n
ff:'hey hnd a Bt te d t r e e t o r · t o r esoh or the
Yoluntari 1y h1 e n t l r e tltne to the work,
5
a.oho
nlsere or fle1d m a , a l l of
hom were e • r -
l•Do•d bond aa11emen.
Ohlcago 1 or nt ea on th baa1 o or the count1t7 u a au
withe h
8.(1
ootmtJ ho:dD.i n M r e o t o r ( i n moat oaaoa a banker of h i g h standing.} The
·•11
ltacl a rraettn ln Chloe. :e
otment was based on the t o t a l !banklag resouroea.
11
. Jlat 1 4 t h t n v l t l n g two <lelega.tos trom ea.oh tU.etrlct and. had a meeting ot ow•
loo.
At this meeting, adopted re o l u t l o n e :pledging the '7th dJ.atrlot Ml take t t a
'-ll
UOte and they have done co bl each l me.
• • l " t 811it at the
l'M banko a l l oao :ere.tea.
em of eaob uubeoil:r,tlon• to each bank not
ubaor1btug.
tttte:ra
.AC &bl
a% of the second day a f t e r or nine t l o n waa pctrteot•d• we had an org&ntsaHon ot
9banks
in our d i s t r i o t , snd took ¢ 1 1 5 , , , against 1 5 , , , , our quota,
1
7o%or IUbsarlpU.oaa l id by deposits.
to te.1t• 1 ta f u l l
uota.
We have
1
have pttlnted forms pledging eaoh banlt
wi-ltten 28 paid organizers or t i e l d men 111
Dtreotors reoelvo ao onapmaaUon.
1•
told the banker
()t111'•
Ceo.
• I U1 produced
8
splendid re ....
t our meeting t h e Government requirements must come
" " ' lllA ti wa ptJt up to than to 4o t h o t r tl:lll part.
Wt peld the expenses of ea.ob
delegate
5te,
Weurged upon t h e m two propositions, f i r s t that they must o u r t aaili , cl r e de dii tt s
in
traem1 lenvlUGlt to aoh bank to Aetemllle speo1ftokll1J.8eoonct, we impressed
p o n them that t h e Federal reserve bank would l e n d l i b e r a l l y f o r banks to subscribe
to
s
oortirioats,,["*#]!PS"EE'+, xoep
workers so
then in tbe i n t e r i m in working up o e r U f l o t t a ot tlldebtedneaa aale.
Governor floDO'GiJila
be
"a 1 i t e r t y Loan Omnpatgn best
ori
ptions
ltut
tt0t
\Ve publllh. a l i s t or the banks and t.bt mount ot thelr
t h e i r uot
Deputy Governor Treman reported as to
u.,.... and the new organization contemplatod,
h u t had taken
laoe lft tlw liew York
1t
Deputy Governor OeD:tna,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
,e baYe a 41reotor of sales ( t h e vice president
g
i
§_
.
• 18 -
e have no p 14 orse,nlsore as n t .
•taot1 on,
l
In 1 1
o ne
tnsno did we have mre
I l l l)b!lbJ.¥develop ll J)nld
of our limkl cubnorlb1n&
t l l ' . : l l,
.
n 'flew or V!lnt hao bean ototcd, wo w111 probnbAy hold rlON eonttrancoa om
Ptrt•• wblch
WG b
ye
n o t t e l t jtJStltte4. ln 4.olUcl-
l have never been rostnctlve na to CUii ma onabl
oc• i.err1uzv;e11,
ex-
di ture wblch eoom JuotlfleO..
Govormo-r Wold.l
• • • oniv
lo, our dis twiet wehave a pre Silent of a bank a» director.
on nale.cy.
1 1
All tho others tn our organization work volunte.rll)f.
•· have always raised our ru11 cµ ot
the
•
IABon.
ot the 1/i ar in which
but
will have trouble this year on account of
t h e salee
eenisation throughout the distriot.
vill be made,
Woh a v e
6lmnk:ero 1n O\U'
eahdirector is planning to hive one banker
no me mNtinr:a with
l'l8l)onutble t o : , onoh OolliJNtBslomll 41e t f t .ct.
OffJ.oere m4
r o s e tat ivoo of banks, ut whioh generally some representative of the Federal re• , ,. . . ,
)w,.,..,._
•
of our dtetitot lo pra ent.
,
servat
r v a t i o n ot or«u t.
Bach
d
w,
i
..v
r
• hn'ff made a p n o t l o o or s t 1
l n tm
our Llbe•tr LOnll orer.mlantlon lo tl'bout 99 -volmttalW•
e
*
.
'
atott doeo conaldtrnble or h l a correspondence over Governor Wold'a signature.
have as yet n o t ,PQblllhta tbe l l a t of b811lcs oubsorlltli1u,t
Oovomor ! Jlller1
a l e the
t
».
one,
Jmve ttnelo,c4 mi orgm:1lcmllon tn <n...ir own borut to
1
sale o1 oortlftc ton.
e have sold ow t\111 quom of ovor, tcsue ex-
Bpeot to exceed our quota during present campaign,
have a booklet
We
pared showing t h e to t81 rooour-eoo Of oaob bank and will pubuieh name o? subsoribers
to,
ou.r ctt•trtcn lo not oo l o r :e eo c«ne ot tho ottsera,
We hve
a bou.4 ,mm, al
tile bend Who gives h i e entire
ln tho f i r n t i s u e s only about 1 0 o u t ot our 600 balks tn t.be dietrlet 1tlfJh
i b e d ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A l t .
- 19 •
.._ h • e t i t t o e n m n d l r e a t l t J tho o e t ( , i . Have man Ut Boe ton and we had an laPO#tent conference.
Wec a l l e d a meeting ot tbo heod.l of ba.nkl ln our 4 l s t n o t
Governor MoCords
ta
the
9\\baortpt1 ono
were
nu
Govømor fnnohora
lll the b
ot aaJ.o
<Ille d u r l n
t h e ø$fflJ)ål
o æ t tn to the Federal reserve lIDnk.
,e have hnd 26 bond men employed sinoe January.
ru,4 In t h o a1etr1ot ln the i n t e r i m ,
W
ko
r
They took GbN'et
of oerttn.co.te ln f,,fflt).11 centero but ln l ø r g a o nterø the sale ts lle.rHUed bf
m i t t eeo.
e
·.
In tho f i r s t i s s u e s we onl.B'had 300 btmkø oubsolt.bln •
In tbe lø t t s " • • • 1 act1 8 0 o u t of 1 8 b a n ktnø thø d l l t t . 1ot.
98% of our member banks subscribed;
for s
ome 1 snue, 95,» n o n m e e batlke"
our d i o t r t c t o ood aøoomt in the sale of tu
e2ti r1
oatea.
l,e schooled our 26 mon e.s t.o t:bo tmport noe of aeclU"ln Stale bank
b o r s h i p and a.re l1av1n good reattlte.
.e
tlCM'liovo
cmFri-
a 41 r e c r Of aa1a1.
•light la.at we wlrø4. about 1 1 b a n k s u r g i n g them to subsorlbe to the o e r t l f t c n t e ø
then 11
•ale.
Wehave bd no ger.aero.l meeting ln our dia trtot.
Sec, Leffingwell:
Reports which I have had tht• mornllt
Will h -
ave a oon lderable 11øraubsonption to t h l ø l.ø&Ne.
rh
enks
onsid
indicate that we
Only 4 or t h o Federal 11-
have oversubscribed, however, T h i s issue is no ariterion •• •• oa11ght
•rab11 of tho r O'DØY rGlGBSØd
OD
J o t 2Gth ond wl11 ootoh
he re § 8 tuløthør mntuntr ot oertlttoute ••
GOtllØ Oil
July 9 t h when
It is zost bzl_portmit that each benx have
"1 •t-tta1.e11t orgn.nlzation b u t • n r t 1eaVln to eMh bonk t h o d t t o l l a Of the same.
4a t
the n&'X.t l no of tax certificates we expect that l n t a : r ln th• . _ _ , , . we " 1 l l
no
more n to tax l e g i s l a t i o n , laws, eto. and mfl' deotu
Qlka _ . _ ! ) I l a
14
on the 1 1 le of tam certificates,
w haft
·
a øho1' IJlå
ttaor-
Weprefer to hnN t a x oal'll.tlOl)tt•
rather than to have people eelltns bonds to »el' taxe1.
W• amisldet- l t l tJO'ttent
to llo1· together eaob Libert, L®n orsPJJtsst lon cow ha 4lftørent d l s t l o t 1 .
ii hov,
to
1 $ 2 , , , , of tax c e r t i f i c a t e s ,
S a i d they had disoussed s e l l i n g these
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
G bUt there woro wn, 41ftlou1tlos in the way boelclea
Of)ft!Q.cct s Olli ai 4iBoo\lbt 1
1• t l tion.
t h e ywould eliminate tn th
Thought
tax ;pnfln
mr oa. tlle ta
da,eot
ter at.
I have been 61,vlDE ocmo14erutton t
tof'.etol'j' Lefftugwella
M
fl
anahave
l o. ents
tbought t m t o t a i l l n
proposed some le flltiatSon.
1 h a v ebeen l arro
ed by the
benk c lft>i l')l'Oteet dUbaortbo:r ood ubaarlber fo11tng tu
t i . t i - an cementa to purobaoe bon@anborro a tho tmu.
kttp
btlntts ootln
Whta Oilra h the
e s t i o n of t h e franking privilege in oomneetion with t h o Liberty loon Campaign, all
or Wblob haa let\ t
tbe p:ropooed lectolntlon.
Governor MoDou P l ,
a t e d depositaries,
Qt tl\O 7 b e a ks
ln
tbe
Ol,loe))
,.u,trloa 600 UN
1 ...
••
If a l a r g enunber o1' banks should q u a l i f y there would be very
8tto.t ...... .
.
additional work f o r the FeMl'nl ree41rve bankA.
l h vo notioe4 tbot tho number
Saontnru L t t t m e11,
)O{ltatt•o 1
4t-
constru.1t11 lnoron lna,
Oow.•ncu:-
'-1tt 68
ot u a l t t l e d
1<1,
f h e r o e r e m c 1 b a n k , n our dt t r t o t .
4• >0ettarte1 out gt t h e
moo.
e ha.Yo now r,oo
1 &hlflk lt the pro»ooo4 leglslat'lon ohoU14
89 t h r a g h we should l o s e the aotave cooperation of a l a r g enumber of these banks,
Governor Wold:
' - • ••l>oor.lber deel
If Otrt
in banks
barre8
un
were mMe ti
tho bank ot
made payable at tJal aUbaorlbiro•
mnu.
l l c h e wants the subscription payable,
oo.1 a 11to entt other
in tie
a to ,n were not, it
ou d
tho 1 tu tto
Sooret
aClllr?t t tes
,i
Su'b oflptlou .,.
rr. !Al fingwelli
Bnd at tuation might be or.
tea lt 1,lbaf'tJ LOW
placed momg wath btmke wh1oh biota• lruwlvent.
Govemor Moord;
8tag
Suppose you designate ban!cs as d e p o t n r i e s and if
ns should pay m u n e :i n t o b rm:u not designated as depositaries, h i v eyou a H••
the funds?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Generol a.toou lon 11 ttnd6d to oppose proposed legislation.
••IG.ont th t tt
Potlta
lmpoeetbl
l'O
th
oUltln
as security,
)>Qrtment t
to kn , ln Mvunce the
f o i m I d 1l noo lmJ)o olble
Deputy Gov r m r C lld.DDJ
•
obU
th
y ... 1;,oul:.!]111
•
tb.l
to
&(ktn
t!on 1e
BUb
Jeat
o f r i o :\I
e
•
,Orkin
J>d 4•-
»mine tbo mou t or oollct•rD1
the •:reom.e1 Dr!•
d 1 oul. 4 l l k O © C h boo'
to cl Yf
13
id.e t ton
tQ
t the conference on duly 17th.
- Nos "1•
Dez>utr GQvG11t.or ODlltUtt>s
' W ,
bsort tlori
csn t pum pro nt
o » to mn1 e
Ii ftomoon 11aa10n
head
asvery
l1 J t:tti mottollf.
b e t t e r ln
bid
dot
of
ll1 dlslo, ti.ft f t a n l a :ents.
Secretary Leffin o l l t
•• It
to
JTU1.1flt
It
our e*periwnoe is t h s t they are eo;atlr ooutrolle4
vow attof'o.otorllu.
h ., a r e 11
all
full
brrr a n c sh
b
hes,
managers
I.not ll&tion of these beanoh
Governor
at,
r 4
rmmbmt ot 6t tc
Inghamwants a branoh,
•• l. Qppolnt
'l!,, .. ,....:, ...
Aust be on conditions
bJ' tt fl bolllG bolltNl.
wants a bronah,
n o i s o o in
No necessity
36,
otud not h r, O«!S tu.. Bir.
n,
•
we
impose.
1 otoS"'O.
\
Deputy overnor Galkin#:
6e1 8
ntt
T h i sbranch has 24% of the resources of the d i s t r i c t but disoounto
• 1••va Cl
)J
Our NowOrlenns branch necessitates local CQCttrol
Moord:
mds
or other cities for brenohas, Lo#
for it as chess mailed at night renah San
th& moml&.g,
Governor Miller (K.
• haw,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(;14
o.J
control at tho
er t>f our Omahaand Denver branahes is
bl,unohtt
at tho hmt.9 uttt
aa,.
&: 11-
be tiJ"UlOU•
1tlltve tba om o f t l c e ot
11611 but4ne o to
C o s tof administr t l o n ls 11
u . 1 ro\1.tln
red lf:r re
al'1t
bl l a l
or
br-01tah8.S11
In our d i s t r i c t the c.,oot soema
Deputy Governor Calkins:
• b e but part of tho ooot ob.er d to t h o bftlneh tb.t hotnt o:ttloo'wota.d
thin
U Of ,,uo•i.w.-ltr, tht
or tour
f th b
r
"
th t l
h
OYfff'Jlor
t
their
f
tl1od
s t o n e1 UJ to lo
o
peal
rendered y ouo or th& a.otm el of
c \ l o n 6 2 , .u to
ot
oo n eu tomor nM. tho a t e of mwh h li1 beotJ,s-et\t oountM
at than the
a
but tbnt tbaae
mer bank could redi
ount for t h e
me
eocna loe:ne ootd.4 not be redl aoounte4.
to tho
O l l a . ed a enero.l di ous loft
beak wanted the rate r a i s e d to l5d,
It
rote on all t r n n fer,.
was formerly done at par,
Moet
• e m o n tc.Toiratl retont tott ot lO"' :tl! b. ininmnoharge, leaving the banks
cha,
r
r a• o t1 onnl1y.
11 Hit
ta
to
th n t o l l o wa a 41 ctunslon
to ari-Bn
• • • wt t)l torel11' cwe.m•
ana the plan pm o ed by Goveror Strong to Governor i u d t n was . t o p t • 4
ti s3.1.3,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
••
govomors,
't the Federal reserve bank,
ot the
4.,
8 e e t t l
oposed 414 not a
Reserve Board that an o Jlad J.ome4, wt er
T,i(fn
r4
o l l e d ntt;ent1o1' to th dU.'ttcul.ttes of the OnmlOS- bl
arbur
on l t l and #ur lu
Ohio
bolna
hotl.
tl '11 h)uld be
Xt wc1&11;0ttltu1 that the opinion had been
.._., ho.n l
ummse«.
tB ffi
\\ttttg tho needed cre4tt at t ls t t m but th
vonglyto the
Jlaft
rtl
sssten in operation ond t t
hould i n f o r m
r.r.ew.tt u c e •
r btlillt9 n n c ptrmc
T h e nf o l l o wdu dt ,m ti1on n t.o the
'1ll4I<m.
J1 bat
1111,.
reported that $ 4 9 , , , or silver oertifioatos had been withdrawn
It was
fmom oi r e l a t i o n
nd¢ 6 5 , , , vi
i l • r doll r
hnd beOD nmolted llM•• th• MW
lt lel.attoa.
It
WftB N
o l't d th t 1b nka would turn in thettt •l1ter c a r t l t l G , •• " " "
,._•., u soon o tbe
a11iver dttnomln
mhe notl o t) t tho
tlo1Utoe4
a1
Tort bank sent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t t,b
o
M,r
b
Xenzel.
tton o
lo s w re ro
rm
., lnttmsted ware
4N.
bi ea rte n on 1'111 11.h o.uan-
.e1 to
mad1egtes,
@FedFRASER