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FOURTH CONFERENCE O F GOVERNORS
CHICAGO, JUNE 14, 1915.
PROGRAMME.
1. Minutes o f the last meeting.
2. Report o f Clearance Committee.
™(a) Establishment of Intra-district Collection System.
e S
~(b) Establishment of Gold Fund,
3. B u s i n e s s h e l d over f r o m last conference,
Set, e e ( a ) Directors' profits i n dealing with member banks with which such
director i s connected.
™(b) Discount Departments:
Number o f forms
Rebating interest }
Method o f collection
Collection outside o f district
(c) R e m i t t a n c e s t o Treasurer o r Assistant Treasurer f o r account o f
member banks 5% fund,
Q ™(d) Handling o f items received from member banks o n the state banks.
4, Examinations.
"’ ( a ) O f member banks.
F
e R e Board
b) Cooperation between chief examiner and local
Lb“
examiners,
L
i
c) Uniform method of securing information from the
Comptroller concerning member banks.
M
r
. Rhoads
d ) Appointment o f representative t o examine Federal r e Serve notes sent t o Washington for destruction, M r . Aiken
8)
Appointment o f representative t o audit Gold Fund
accounts.
M
f)
R
e
c
e
n
t
order
o
f
Comptroller.
)
r
M
. Strong
. Wold
r
& 5. Records, Reports and Accounting.
% (a) Discussion of daily transactions, records and
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Federal Reserve Bank of St. Louis
R. Board
reports.
(b) Amortization of organization expense and cost of
printing notes.
Analysis o f operating expenses.
Standard form for analysis o f expenses
Establishment o f unit cost o r standard
Distribution o f expenses i n connection
of Federal reserve notes o f other
redemption.
A
i
Standard form of financial statementse
Ww
‘¢
a
and income.
o f comparison.
with return
banks for
k
e
R
h
o
o
"W
n
s
d
Accounts between Federal reserve banks, entries o f
drafts drawn o n one b y another.
W
o
l
d
Settlement o f old exchange accounts. .
Strong
Method o f settlement f o r investments made b y one
Federal reserve bank for the account o f other
Federal reserve banks.
A
i
k
e
n
Compensation for making investments and for carrying o n other transactions for other Federal
reserve banks.
S
t
r
o
n
g
= 2a
Gold held b y Federal reserve agents a s security for
notes - inclusion i n balance sheet.
Weekly report o f reserve b y member banks.
Proper indorsement o f commercial paper o r gold order
certificates deposited with Federal reserve
agent t o secure notes o r reduce liability. Should i t b e i n blank o r to order o f Federal
reserve agent?
‘Rhoads
6. Relations with Federal Reserve Board.
(a) Communications with F. Ry Board = practice with respect t o matters pertaining only t o banking
transactions,
Wold
(b) Codification or digest of informal rulings of F, R.
: B o a r d .
(c) Codification o r digest o f action by Governors! Con-
» MeDougat
ferences,
Stren
7. Commercial Paper.
bes ( a )
Form o f application for rediscounts t o b e used after
July 15. Suggested forms to be submitted b y
a
G
o
v
e
r
n
o
r
s
,
Aiken
MeDevgr
Seay
» (d) Circular Nos 3 = Regulation B.
syhe (c) Uniform credit statements.
(d) Checking commercial paper.
‘wal ators
Dut O i l y
Relations between Federal Reserve Banks,
(a) Cipher code and test word.
Mr. S e a y &
Mr. S t r o n g
(bo) Transfers:
Charges
Extension o f facilities t o nonejoining banks.
Mr. McKay
Fe R e Board
Collections.
(a) Standard method o f collecting notes, warrants and
acceptances.
Mr. Rhoads
(b) Collection of warrants payable outside the district
and i n a city where there i s no Federal reserve
bank *
Rates o f discount.
(a) Short time rates.
Mr. A i k e n &
(b) Discussion o f rates and report o f views t o F. Re Bd.
Mr. Strong
Fe
R e
B o a r d
Gold Fund.
(a) Attitude o f New York bank i n matter o f settlement
funds.
(b) Method of settling overdrafts.
Open Market Operations.
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Federal Reserve Bank of St. Louis
(a) Extent of reserve banks' activities.
Mr. McDougal
(b) Regulations i n regard to warrants under which banks
may purchase entire loan o f a municipality u p
to a limited amount.
Purchase o f Government Bonds.
Mrs Aiken
Mr, Strong
Indorsements o n acceptances under Negotiable I n =
struments L a w and common law.
Bills o f exchange accepted payable i n another place;
Purchase o f domestic bills o f excharge not based upon
imports o r oxports.
Purchases i n New York market.
Purchase o f trade acceptances b y Fy R. Bonks
\
Fa Ry, Eoard
eye
12. O p e n Market Operations. (Continued)
(i) Purchase of investments by one F, R. Bank in :
territory covered b y another.
Mr. Aiken
Admission o f state banks.
(a) Principles o f examinations,
(b) Principles o f admission,
F., Ry Board
& Mr, Seay
Intra=district motieetions:
(a) Collection of checks drawn on all banks within
dis_trict with nominal compensation for collecting
checks o n nonamembers i n member banks’
(b) Receipt of items drawn on member banks in o w n towns Mrs. McCord
other Federal reserve cities.
(c) Will Federaliireserve banks undertake collection
of
time itg@ms as well as cash items,
M
r
Inter=district Collections and Clearings,
Foreign Exchange,
Mr. W o l d
. Rhoads
Mr. Seay
Mr. McDou,*
Establishment o f branches o f Federal
reserve banks,
Federal reserve notes a s reserve f o r
national banks.
Federal reserve banks a s fiscal agents o f the
U. S. Government.
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Federal Reserve Bank of St. Louis
F . R. Béare
FOURTH CONFERENCE OF GOVERNORS
CHICAGO, JUNE 14, 1915.
P R O G R A M M E
1. Minutes o f the last meeting.
2. R e p o r t o f Clearance Committee.
(a) Establishment o f Intra-district Collection System.
-(b) Establishment o f Gold Fund.
3. B u s i n e s s h e l d over f r o m last conference,
with which such
(a) Directors' profits i n dealing with member banks
director i s connected.
(bo) Discount Departments §
« Number o f forms
Rebating interest
Method o f collection
Collection outside o f district
for account of
‘ (c) Remittances t o Treasurer o r Assistant Treasurer
member banks 5% funds
banks o n the s t a t e banks,
(d) H a n d l i n g o f items received f r o m member
4, Examinations.
Fe Re Board
(a) O f member banks.
(b) Cooperation between chief examiner and local
ee
1
@ Mr.Fanch
examiners.
(c) Uniform method of securing information from the
M
Comptroller concerning member banks.
or = =
/
s
e
r
v
destruction.
e notes sent t e Washington fer
Fund
(e) Appointment o f representative t o audit Gold
accounts.
(f) Recent order of Comptroller. Omission of items.
. Rhoads
r
Federal r e x(a) A p p o i n t m e n t o f representative t o examine
M r . Aiken
Mr. Strong
M r . Wold &
Mr. Fancher
Records, Reports and Accounting.
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Federal Reserve Bank of St. Louis
and
Discussion o f daily transactions, records
reports.
Rs Board
a n d cost o f
Amortization o f organization expense
printing notes.
Analysis o f operating expenses,
Standard form for analysis o f expenses
Establishment o f unit cost o r standard
Distribution o f expenses i n connection
of Federal reserve notes o f other
redemption.
Standard form of financial statamentse
"
and income,
o f comparison,
with return
banks for
R
h
entries o f
Accounts between Federal reserve banks,
drafts drawn o n one b y another.
Settlement o f old exchange accounts.
b y one
Method o f settlement f o r investments made
o
f other
account
the
for
Federal reserve bank
Federal reserve banks.
o
a
Aiken
d
s
Wold
Strong
Aiken
Compensation for making investments and for carrying o n other transactions f o r other Federal
reserve banks.
Strong
mm Dee
J)
G o l d held b y Federal reserve agents a s security for
notes - inclusion i n balance sheet,
(m) Weekly report of reserve by member banks.
(n) Proper indorsement o f commercial paper o r gold order
7 c e r t i f i c a t e s deposited with Federal reserve
agent t o secure notes o r reduce liability. Should i t b e i n blank o r to order o f Federal
reserve agent?
c 6 .
Relations w i t h Federal Reserve Board.
¥(a) Communications with F.. Re Board = practice with respect t o matters pertaining only t o banking
/ t r a n s a c t i o n s ,
Wold.
((b) Codification or digest of informal rulings of F. R.
Board.
- McDougal.
(ce) Codification o r digest o f action by Governors’ Con=
ferences,
Strong.
Commercial Paper.
Y(a) F o r m of application for rediscounts t o be used after
July 15. Suggested forms to be submitted by
Governors,
Aiken-
/(o) Circular No. 3 « Regulation B.
MeDeugelSeay.
‘/(c) Uniform credit statements.
(4) Checking commercial paper.
Stronc:
Relations between Federal Reserve Banks,
(a) Cipher code and test word.
(b) Transfers:
Charges
Extension o f facilities t o non-joining banks.
/(e) Credits between F.R.Bke/- Treatment a s reserves.
Mr.
Seay &
Mre
Strong
Mre M c K a y
Fe R e Board
Mr. Kains
Collections.
‘({a) Standard method of collecting notea, warrants and
acceptances.
Mr. Rhoads
(b) Collection of warrants paynble outside the district
and i n a city where there i s no Federal reserve
bank.
Rates o f discount.
(a) Short time rates.
“(b) Discussion of rates and report o f views to Fe Rs Bd.
Mr. Aiken &
Fe Re Board
Mr. Strong
Gold Fund.
“(a) Attitude of New York bank in matter of settlement
funds.
(b) Method of settling overdrafts.
Open Market Operations.
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Federal Reserve Bank of St. Louis
(a)
Ab)
Extent o f reserve banks' activities.
Regulations i n regard t o warrants under which banks
Mr. McDougal.
may purchase entire l o a n o f a municipality u p
to a limited amount,
Purchase o f Government Bonds.
Mre Aiken
Mr, Strong
Indorsements o n acceptances under Negotiable In»
struments L a w and common law.
Bills o f exchange accepted payable i n another place;
Purchase of domestic bills of exchange not based upon
imports o r oxporta,
Purchases i n New York market.
Purchase of trade acceptances b y Fy Re Banks
Fe R e B o a r d
12. O p e n Market Operations. (Continued )
(i) Investment Accounts with Federal reserve banks i n
cities where considerable volumes o f invest-
P m e n t s originate.
¥(j) B a s i s o f allotments o f acceptances and warrants
be-
Mr. Fancher
tween Federal reserve banks.
/(k) Acceptances = Authorized Signatures o f accepting
3 b a n k s , o r certification o f genuineness.
MAL) Purchase-of—investments b y one Fs R. Bank in territory covered by-another.
Mr. A i k e n
7 Faneher
/(m) Standard forms of municipal warrants.
Admission o f State Banks,
(a)
(b)
Principles o f examinations.
Principles o f admission.
(F,
R e Beard
(& Mr. Seay
intra-district Collections.
(a)
Collection o f checks drawn o n all banks within district with nominal compensation for collecting
checks o n non-members
i n member banks' o w n town.
(b) Receipt o f items drawn o n member banks i n other Fed-
eral reserve citiesy
(c)
Will Federal reserve banks undertake collection o f
time items a s well a s cash items.
Inter-district Collections and Clearings.
Mr. McCerd
Mr. W e l d
Mr. Rhoads
- Seay
Foreign Exchange.
McDougal
Establishment o f branches o f Federal reserve banks.
vv
Reserves o f National Banks.
(a) Federal reserve notes as reserve.
(b) Ruling of Comptroller withholding privilege
ducting national bank notes i n reserve
of decale
culation,
(c)
Member banks having more than full reserves
eral reserve b a n k a n d i n reserve agent
should b e permitted t o show the excess
reserve.
in Fedbanks
as bank
Federal Reserve Banks a s Fiscal Agents o f the U. S, Government.
F. R. Board
Method o f computing dividend o n three capital stock payments.
Mr. Fancher
Decreases i n member banks’ surplus. M u s t there b e a proportionate surrender o f stock i n Federal reserve bank?
National Banks ~
Letters o f Credit =
Comptroller.
Retirement o f Federal Reserve Notes.
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Federal Reserve Bank of St. Louis
Recent instructions o f
Mr. A i k e n
Mr. S t r o n g
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
BOARD. O
F B@OPZAR GRE
Saom,
0w
2R eoAUS
GE
“regramne
Binates e f Jonterenee
AGE RANC OO
sathorilzed signatures of acqo
Sooting benke
Gem ral d i a c u s s i
o
n
uiability for eollestion of
AGC GUN? US}
énortigation of Orgenieatian
S19
is
énalysie o f Operating Bepenge
Canterenge of Auditors e n form
Sepenee of shipping *, BR, Betes
$6 lewuling benke
369 —B70
form Of amalveie o f inoue and
OS GHI8
Gemeral (eab-ogomal ttee)
tuveataant account
ettling overdrafte
69
2 0 6 291—
B 1 8 Ba~
S 6 7 B68—
Stendard form of etetement r e
G014 held ty %, B, Aponte ag
aeeapliy foe 7, By, sotenr
(244 = 246
Rani” a e rocerve
Umit Cees
(411 ~ 416
Boe
Unit of expense of operating
Vaxrente
ALLORUETS OF
PURCHASES
S78 ~ 204
Srenteant of “ue from fod, Bea,
laveetients for 7, 3, Banke |
Cowt of haw Lege
67 «
GD
162
2 6 9Bye«
2 0 2268~
AUD 20n8* CONFER
in forme of secounting
B2ODERICK, MA,
AS tendance at ecomforente
CIMtmR Soom
teat words
GCLEARANON COMMITTEES
CLcARike HOUSE
GULL MIT IGR
viaoe melo
Vissounted paper
vi sguacion
intereiietrict referred t e
Exesative Committee
interedistriet items o n meamiear
bonke i n %, Ky cities
latvaedistries
Time i t e s
1a
12S
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Federal Reserve Bank of St. Louis
4a @01iateral t e short
term Loane
Chee Ring
Uvedlt s t a t e w n s s o r n e
Depesited with F, BR, agent,
enderuament o f
Porma for rediscount o f
SOAPTROLIGR O F
THE COARENG ¥
Seduction of national bank
notes
Regent instructions t o matlonal
banks r e inforoation f o r F N ,
banks
Raghanging with «exer banks
YP T E y Pee Beka r u ceerety
h e a d r e v i t Ws Sue Cal
Uni formaity
ReDEP
DISCOUNT RATES
?
4 1
‘ , w e ) (Pire”
s 4
D i aG o
T
B R A :
Digeuss ion
hin
TRS
DIRQGOUETED PAPER
Method o f eéllection
PISGOURES
Steet tera
AAS CREE
Of etate banks Sopointed by
Y, R , B a n k e
BRAM INAT SONS
Soet a f
form
OF stete banks
Of state banks applying for
(180 ~ 196
m a aboaL
Reaelution
tN
C2 = 8 B
154 ~ 162
145 ~ 153
128 + 150
( 8? ~ 402
67» 6 )
115 « 116)
U s A YT e y ee e a e ey e e
PROGEAL A R O B R Y S
AERTS
¥, K, Bonke vreletions vith
B O Y l e~
Bndorgement o f Coameralai Paper
& Gold Grder Cortiricates
4 0 8 411—
497 — 499
srandhes
Capital Steck Dividends.
Conpating Ga payments
4o @leeai agents o f U, G y
Naa eo) SMe ite
Pt r y e t t c y s t
s
ike
a LORS
FS a t f s
|
Giphers ani test words
Rupense o f handling inveetusats
for other
tranefer o f fundis
By B, Boned
treasury Depar trent
*3
tlesent Band
r
e Gold Sete
4 2 8425»
B 9 2408«
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Federal Reserve Bank of St. Louis
MeV *
g
e
e
d c m t gB
d
& eagReete B e y e }
WA
BuAAd
imabeoe. invited t e Governors
Coafoaroanuce
Report e f Goevorneri’ Conference
vor
499
PIDRRAL RECERYS
BOARS A V I S
Godificatio o f
165 — 166
Sn watiosal bank reaurvee
Changes @ageosted i m orinting o f
50S = 506
FRoeRAS. RABSRVE
es bea oo
BO? pak
508 = 606
Rugemee of ahipping to issuing
bane
Representative a t deatruction o f
FIVE °oh Char
REMAP SLM FORD
Gf National Sanka
369 « BVO
RG - 8 1
wiseuse ion «
GLY « B25
applieation fer vedi wrount
226 « 229
Be q s e r e s }
fxiitors’ Converance)
Of Credit Statements
imdeorgement a f those deposited
with fF, 8, Agent
GGL0
B E R L E
i, X y mbCitudag
¥uUsa
Representative s o audit
Withholding aawantea fer oreation
of exchange
GOVERRORS* G O
PERERA
ext Seoting
Reported t o Board
W i n ,
B e .
A s G,
GATIONAL BARNS
Attenlance a t converance
Sis Redemotion Fand
Lettera o f Credit
as
d a a ona .
Gi ¥} B R A C E Sm
Allotwente
*~
Exeenee of hand iiag
ilies o f exéhange
SBisowes ion
Rexbont
ew fork Garket
Parahaawe o f U, &, Gonde
* Grade Acceptances
and Doweetio Bills
Yarrarnhe
"=
S t e n d a w fora of tumieipal
aw B S
B 2 3289«
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Federal Reserve Bank of St. Louis
itatenent f o r aooreved
Diseursion
ine w t a t e b a n k ainiesionse
sesolution for copies o f
Vi State Sanke
Showing vondition o f reserves
wOoK L
Y
oe4 r e p a y
hacliadawss F
UP
BARES
R e s e s s balances n a “dae from"
banks
Poderal reserve notes a s
BARES
o
m
a
n nat Lone
iavorts
m
m EPs
honk estate Loans
decrease o f
¥, R y Banke volations v i t h
Basin r e Gold Settlement F u n d
y.
T_& T e
Sarchaes o f b y Federal Aeserve f a n k e
FOURTH CONFERENCE O F GOVERNORS
OF THE
FEDERAL RBSERVE BANKS
\
The Fourth Conference o f Governors o f the Federal reserve banks was
held a t the Hotel Blackstone, a t Chicago, Ill., o n Monday, Tuesday and Wednes-
day, June 14, 15 and 16, 1915,
PRESENT:
Mr. Strong, Chairman o f the Conference,
Messrs. Aiken, Rhoads, Fancher, Seay,
McCord, McDougal, Wold, Sawyer, V a n Zandt,
Lowry, .
C Re McKay and J, F. Curtis,
Secretary o f the Conference.
The meeting was called t o order b y the chairman a t 10:40 a, m e o n
June 14th.
TOPIC NO. 1. = MINUTES. -
On motion duly made and seconded, i t was
VOTED t h a t the minutes o f the Third Conference o f
“Governors b e approved without reading.
The chairman called attention t o the new form o f programme submitted
for the use o f the conference. W h e r e u p o n ,
o n motion duly made and seconded,
it was
VOTED t h a t a s each topic i s called, t h e proposer will
state the points involved for discussion, a n d i f necessary,
submit i n form o f resolution.
TOPIC#
2 ~REPORT OF CLEARANCE COMMITTEEr -Mr. McDougal, for the
Clearance Committee, made a brief statement o f its activities and suggested
that a
permanent committee o f the conference b e established.
Whereupon,
on
motion duly made and seconded, i t was
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Federal Reserve Bank of St. Louis
VOTED t h a t the Clearance Committee b e discharged and that
a standing executive committee o f six be appointed; s u c h committee t o consist, f o r the present, o f the members o f the Clearance
Committee and Mr. Rhoads; M r . McDougal t o b e chairman thereof
and three members t o constitute a quorum.
TOPIC #3 - UNFINISHED BUSINESS. = T h e chairman
then stated thet the
next matter for discussion was the
business held over from the Third
Conference,
and that unless individual topics were
brought u p b y some member present,
they
would b e considered a s passed.
TOPIC #3 (b) = FORMS. - The question o f the number
of forms having
been brought u p for discussion,
call a
o n motion duly made and seconded, i t
was
VOTED t h a t t h e executive committee b e
authorized t o
meeting o f officers, o r clerks, o f
a number o f the
Federal reserve banks, t o discuss the question
o f forms and
to make recommendations
i n connection therewith.
The next subject brought u p for consideration was
the question o f rebating interest. W h e r e u p o n ,
o n motion duly made and seconded, i t
was
VOTED t h a t the Conference recommend t o the Federal
Reserve Board the establishment o f rates
for short term
paper not exceeding fifteen days i n maturity,
a n d that the
Board authorize t h e Federal reserve banks,
a t their discre-
tion, t o discount other Commercial paper for a
time less
than the actual maturity o f the paper a t the
appropriate
rate for the length o f time for which the discount
i s agreed
upone
TOPIC # 3 (c) ~ REMITTANCES T O THE TREASURER O R ASSISTANT
TREASURER
OF THE UNITED STATES FOR ACCOUNT O F MEMBER BANKS' 5 %
REDEMPTION FUND.
O
n
motion duly made and Seconded, i t was
VOTED t h a t each o f the Federal reserve banks should
urge upon member banks the desirability o f making
payment
for account o f their 5 4 Redemption Fund b y transfers
directly through the Federal reserve banks, a n d not b y drawing
checks o n them.
TOPIC # 4 (b) = COOPERATION BETWEEN CHIEF EXAMINERS A N D LOCAL
EXAMINERS. -
After a prolonged debate and consideration the following
preamble
and besolution w a s unanimously adopted:
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Federal Reserve Bank of St. Louis
WHEREAS t h e Federal reserve banks are authorized by
law to examine member banks i n their districts, a n d
WHEREAS i t might b e a cause o f comment u p o n a member
bank i n its community i f such a n examination
should b e made
in addition t o the examinations o f the national
b a n k examin-
er, until such examinations are regularly made, a n d
WHEREAS i t is considered preferable a t present t o
have
the necessary examinations made b y the national bank
examiners except i n unusual cases; a n d
WHEREAS i t is considered b y this Conference that i t is
of vital importance + o the safety and welfare o f
the Federsl
reserve banks t o have unhampered access t o national
b a n k ex-~
aminers' reports and complete information with respect
t o ell
member banks,
BE I T RESOLVED t h a t the Federal Reserve Board b e ree
quested t o make arrangements with the Comptroller o f the Cu:rency whereby complete copies o f all reports made b y national
bank examiners with respect t o member banks shall b e given t o
the Federal reserve banks t o b e open t o the confidential inspection o f the Governor, t h e Federal reserve agent, a n d such
other officers of the bank as may be approved b y the Federal
Reserve Board;
PROVIDED t h a t nothing herein contained shall b e deemed
to limit i n any way the right o f examination conferred b y law
upon the Federal reserve banks,
Atthis point a recess was taken at 1:15 p. me
e
Pret reler@lelel
tr
The Conference reassembled a t 2:30 p.» me, Mrs A s C e Miller, o f the
Federal Reserve Board, joining the Conference a t the close o f the recess,
There followed a discussion o f the following topics suggested b y Mr.
Miller;
Standardized procedure i n the examination o f state banks.
Regulations governing trade acceptances.
Special rates f o r short maturities o f t e n a n d fifteen days.
Establishment o f a unit o f cost for accounting purposes.
TOPIC #4 (e) = At the close of these discussions the chairman stated
that the next business was the question o f appointing a representative o f the
banks t o audit the Gold Settlement Fund. W h e r e u p o n ,
o n motion duly made and
seconded, t
i was
VOTED t h a t the Chairman b e authorized t o appoint a
representative o f the twelve Federal reserve banks t o audit
the Gold Settlement Fund, i n accordance with the regulations
of the Federal Reserve Board,
TOPIC # 4 (d) = The question o f appointing a representative t o witness
the destruction o f Federal reserve notes was discussed, b u t n o action was taken
thereon,
TOPIC #4 (f) - RECENT ORDER OF THE COMPTROLLER OF THE CURRENCY AUTHORIZING OMISSION OF ITEMS FROM REPORTS - was then taken up for discussion. W h e r e upon,
o n motion d u l y made a n d seconded,
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Federal Reserve Bank of St. Louis
i t was
VOTED t h a t t h e Conference recommend t o t h e Federal R e «
serve Board that o f the items that have been omitted i n the
statements a s rendered t o t h e Federal reserve banks, t h e fol-
lowing should b e restored:
1. Details o f the borrowings o f the officers and directors.
2, Details o f bills payable.
3. Names of the correspondent banks.
wu
At this point Mr. Miller withdrew from the Conference.
Mr. Broderick, chief o f the Division o f Audits and Accounts o f the Federal Reserve Board, joined the meeting a t the request o f the chairman.
TOPIC # 3 (a) = PRINCIPLES O F REGULAR PERIODIC EXAMINATIONS:
M r . Brod-
erick stated that-‘in general the plan being considered b y the Federal Reserve
Board
was t o make arrangements t o authorize the acceptance o f state examinations, either
alone, o r such examinations made i n conjunction with examinc:s o f the Federal ReServe System. W h e r e u p o n , o n motion duly made and seconded, i t was
VOTED t h a t the views announced b y Mr. Broderick b e ine
dorsed S y the Conference and the operation o f the plan oute
lined b y him recommended.
TOPIC #13 (b) = EXAMINATIONS FOR ADMISSION: M r . Broderick stated that he
suggested three possible courses;
1. T h e admission t o b e based upon the last previous
State examination, where the officers o f the Fed=
eral reserve bank consider that such examination
is a n efficient one.
A provision for a special joint examination to be
made b y the state authorities and a Federal reserve
bank representative.
3s A
Special examination made wholly b y the state author-
ities.
Such one o f the above three plans t o b e selected a s the committee o f the Federal
reserve banks may think most expedient, under the circumstances.
U p o n considerae
tion thereof, a n d o n motion duly made and seconded, i t was
VOTED that the suggestions made by Mr. Broderick be
indorsed b y the Conference and the plan submitted b y him
be recommended for operation.
And i t was further
VOTED t h a t immediately after this Conference each
Federal reserve bank shall designate and advise the Federal Reserve Board o f the names o f the officers o r employ-
ees of each bank who will have assigned to them the work
ofmaking examinations of state institutions.
REGULAR REPORTS T O STATE AUTHORITIES;
M r . Broderick made
Statement o f his views i n this regard, and a general discussion followed.
upon,
o n motion d u l y made a n d Seconded,
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Federal Reserve Bank of St. Louis
i t was
VOTED t o recommend that i n those states where full
and complete reports are made b y the state banks t o the
state authorities, a n d where the calls for such reports
of condition are concurrent with the calls from the ComptToller o f the Currency, such reports b e accepted i n lieu
of reports made i n the special form provided b y the Comptroller,
EXAMINATION O F FEDERAL RESERVE BANKS:
M r . Broderick made a brief
statement o f the wishes and needs o f the Federal Reserve Board i n conducting
ae :
i
d
examinations o f thé Federal reserve banks. W h e r e u p o n , o n motion duly made and
Seconded, i t was :
VOTED t h a t the Conference recommend t o the several
Federal reserve banks that they loan officers and employees
to assist the Federal Reserve Board i n conducting examinations o f other Federal reserve banks, a n d that the Confete
ence place upon record its desire t o cooperate i n every way
with the Federal Reserve Board i n conducting s u t h examina-
tions.
There followed a brief discussion o f the proper method o f carrying municipal warrants u p o n t h e books o f t h e Federal reserve banks a t the close o f which
Mr. Broderick asked that the suggestion b e made to all of thé Federal reserve banks
that such investments b e carried o n the books o f the bank a t their face value, plus
interest.
COST O F EXAMINATION O F STATE INSTITUTICNS: A f t e r considerable discussion
of this topic, a n d o n motion duly made and seconded, i t was
VOTED t h a t the Conference recommend t o the Federal
Reserve Board that for the calendar year 1915 o r until otherwise directed, t h e Board should adopt a s a policy the examination o f state institutions applying for admission b y employees
of the Federal reserve banks wherever possible, n o charge being
made for their services except the actual out-of-pocket expenses.
TOPIC # 6 - COMMUNICATIONS WITH FEDERAL RESERVE BOARD = PRACTICE WITH
RESPECT T O MATTERS PERTAINING ONLY T O BANKING TRANSACTIONS.
A f t e r considerable
discussion, t h e following preamble and resolution were adopted:
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Federal Reserve Bank of St. Louis
WHEREAS i t is reported a t this Conference that considerable inconvenience has been caused b y the failure o f mail ade
dressed to the Federal reserve agents t o be promptly acted upon
in the absence of the Federal reserve agents, and for other reasons;
BE IT RESOLVED t h a t i t is the sense o f this Conference that
all communications addressed b y the Federal Reserve Board t o the
Federal reserve banks should b e addressed t o the bank o r to the
chief executive officer o f the bank, a n d only those communications
which pertain particularly t o the duties o f the Federal reserve
agent should b e addressed t o him personally.
AND I T WAS FURTHER RESOLVED t h a t the foregoing preamble and
resolution b e recorded i n the minutes o f the Conference, b u t that
they b e transmitted t o the Federal Reserve Board orally b y the
chairman, w i t h such explanation a s h e m a y d e e m judicious i n order
that the matter may b e fully explained and particularly that the
desire of this Conference is to promote the prompt and efficient
transaction o f all matters relating to the bank, and thet the resolution i s not prompted b y any other motive.
aii
TOPIC #6 (b) - CODIFICATION O R DIGEST O F
INFORMAL RULINGS O F THE
FEDERAL RESERVE B O D . =
O n motion duly made and seconded,
i t was
VOTED t h a t the Conference o f Governors having
considered
and discussed the matter o f informal rulings
o f the Federal
Reserve Board, a r e o f opinion that i n view of
the large number
of such rulings and the variety o f subjects
covered, a n d the
fact that they are not made Simultaneously t o
all twelve banks,
a comprehensive compilation o r digest o f them
from the begin-
ning down t o t h e present t i m e should b e
made b y the Secretary
of the Board, a n d that s i x o r eight copies
o f such digest
Should b e distributed t o each bank.
TOPIC #6 (c) = CODIFICATION O R DIGEST O F ACTION
BY GOVERNORS' CONFERENCES. =
O n motion duly made and seconded, i t was
VOTED t h a t this subject b e carried over without
action.
TOPIC #11 - GoLD FUND. ( a ) ATTITUDE O F NEW YORK
BANK, -
T h e chair-
man made a brief statement with respect t o the
attitude o f the New York bank a t
the time o f the establishment o f the Gold
Settlement Fund a t Washington,
TOPIC #11 (b) = METHOD O F SETTLING OVERDRAFTS. -
T h i s matter came u p
for a brief discussion, b u t n o action was
had thereon,
At this point a recess was taken at 7 o'clock pe.
m
«~--00000=-~
The Conference reassembled at 8:45 o'clock py ms
It was agreed that the chairman should b e authoriged t o select the
subjects for discussion during the evening.
TOPIC #10 (b) - DISCUSSION O F RATES O F DISCOUNT AND REPORT O F VIEWS
TO FEDERAL RESERVE BOARD. -
After considerable exchange o f views o n this sub-
ject, a n d o n motion duly made and seconded, i t was
VOTED t h a t t h e Federal Reserve Board b e advised that
the
question o f rates o f discount was discussed a t the Conference
and that the consensus o f opinion was that i n view o f the large
excess reserves now held throughout the country, i t did not seem
to the governors expedient generally t o reduce rates o f the F e d
eral reserve banks a t the present time.
TOPIC #
9 (a) and (b) - COLLECTION O F NOTES, WARRANTS A N D ACCEPTANCES,
After considerable discussion, a n d o n motion duly made and seconded,
i t was
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Federal Reserve Bank of St. Louis
VOTED t h a t i t is the sense o f the Conference that the
Federal reserve banks will b e respectively expected t o extend their collection facilities t o other Federal reserve
banks i n collecting items payable within their districts.
=b»
TOPIC #12 - (d) = INDORSEMENTS O N ACCEPTANCES UNDER NEGOTIABLE INSTRUMENTS L A W AND COMMON LAW, -
T h e secretary made a brief statement o n this
subject, i t being understood that Mr. Aiken i s t o submit the question o f indorse«
ment o n acceptances t o his counsel a n d send copies o f the reply received t o all
the other Federal reserve banks,
TOPIC #16 - FORBIGN EXCHANGE. -
A brief discussion was had o n this
subject, b u t n o action was taken thereons
Onmotion, the meeting duly adjourned at 10:50 o'clock p» m.
=~~00000~==
The Conference reassembled a t 1 0 o'clock a e m e
All present except Mr. Fancher.
Topic # 7 (a) = FORM O F AifuICATION FOR REDISCOUNT O F COMMERCTAL PAPER
TO BE USED AFTER JULY 15TH.
A f t e r a brief discussion, a n d o n motion duly
made and seconded, i t was
VOTED t h a t each governor b e requested t o send t o the
governors o f every other bank the form of application for
rediscounts which h e contemplates using after July 15th,
together with statement blanks for use b y member banks with
their customers.
TOPIC #7 (b) = was covered by the vote above set forth.
TOPIC #% (c) - UNIFORM CREDIT STATEMENTS. =
After considerable dis-
dussion and on motion duly made and seconded, i t was.
VOTED t h a t the American Bankers Association forms o f
credit statements b e used a s a basis and that each bank
adapt them t o its own use a s far as possible, with the understanding that such form i s a preliminary o n e recommended
by the Bankers Association.
TOPIC #7 (a) - CHECKING COMMERCIAL PAPER. - This matter was then
brought u p for discussion bunt no action was had thereon.
TOPIC #8 (a) -CIPHER CODE AND TEST WORD. - After considerable dis=
cussion a n d explanation o f two suggested systems “ o r a
test word, a n d o n motion
duly made and seconded, i t was
VOTED t h a t Mr. Strong make v p the more elaborate o f the
two systems f o r a test w o r d a n d s e n d conies D y maii under s e a l
to each o f the banks.
TOPIC #8 (c) - CREDITS BETWEEN Fal
RESERVES, *
w a s then taken u p for a brief discussion, i t s disposition, however,
being postponed t o a later time.
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Federal Reserve Bank of St. Louis
TOPIC # 1 2 ( a ) =
ACTIVITIES.- A
OPEN MARKET O P E R A T I O N S ,
- EXTENT O F RESERVE BANKS!
brief discussion w a s h a d b u t n o action taken
thereon,
TOP. jie (bt) = PURCHASE OF ENTIRE ISSUES OF MUNTCIPAL WARRANTS UP
TO LIMITED AMOUNTS.= After a
conded,
brief discussion a n d o n motion d u l y mace a n d se--
i t was
VOTED t h a t the Federal Reserve Board b e requested % 9
make a special ruling i n regard t o paragraph 2, Regulation
BF, Series o f 1915, authorizing t h e Federal Reserve
Bank o f
Destene
t purchase t h e total amount o f warrants outstanding
of a municipality within its district t o a n amount nob
ex=
ceeding $50,000, f o r the purpose o f enabling the Federal
Reserve B a n k o f Boston t o hola s u c h warrants f o r
its c v m ac»
count
o r for the account o f other Federal reserve banks,
(NOTE: ) I t was understood t h a t this matter would b e
submitted t o
the Federal Reserve Board b y Mr. Aiken, a n d not b y
the Secretary o f the Con»
ference,
Mr. Fancher joined the Conference a t this pointe
TOPIC #12 (e) = BILLS O F EXCHANGE ACCEPTED PAYABLE I N ANOTHER
PLACE, ~
was then brought u p for discussion, b u t n o action was taken
thereon,
T h e same
is true of TOPIC #12 (g) - PURCHASES I N THE NEW YORK MARKET,
ee
TOPIC #12 (j) = BASIS O F ALLOTMENT O F ACCEPTANCES A N D WARRANTS BETWEEN
FEDERAL RESERVE BANKS, -
After considerable discussion,
a n d o n motion d u l y made
and seconded, i t was
VOTED t h a t each o f the eight reserve banks for which
the Federal Reserve Bank o f New York i s making investments,
Shall submit a s of June 30th t o Governor Strong, a memorandum
of earnings and expenses t o be used i n cormection with the
amount o f capital and deposits o f the respective banks i n figuring suggestion for reapportionment o f the investment account,
and that Governor Strong i s requested t o submit the suggested
reapportionment t o the other eight reserve banks when the
calculation i s made,
o
Y
Mr. Broderick joined the meeting a t this point.
Topic #5 (k) - COMPENSATION FOR MAKING INVESTMENTS A N D FOR CARRYING
ON OTHER TRANSACTIONS F O R OTHER FEDERAL RESERVE BANKS.
O n motion duly made
and seconded, i t was
VOTED t h a t this subject b e referred t o the executive
committee with power t o act and make recormendations a s to
fixing the compensation.
At this point, Mr. Miller o f the Federal Reserve Board joined the
Conference,
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Federal Reserve Bank of St. Louis
TOPIC #5 (a) + DISCUSSION OF DAILY TRANSACTIONS, RECORDS AND REPORTS On motion d u l y made a n d seconded,
i t was
VOTED t h a t this subject b e referred t o the executive
committee with power t o arrange for the appoint:s-nt o f representatives from the Federal reserve banks t o act a s a committee
to meet i n Washington o r elsewhere, together with representa~tives o f the Federal Reserve Board,
t o discuss a n d report u p o n
the topics o f daily transactions, records and reports.
TOPIC #5 (b) = AMORTIZATION OF ORGANIZATION EXPENSES AND COST OF
PRINTING NOTES.- After considerable discussion o f this topic with Mr. Broderick,
the following resolution was adopted:
RESOLVED t h a t i t is the sense o f this Conference that each
Federal reserve bank submit t o the Federal Reserve Board a complete detail o f the items which have been included i n the organization expenses, a s set u p by the respective banks, a n d that
this data b e analysed b y the accountants o f the Federal Reserve
Board, a n d that i f it is found necessary, a suggested adjustment
be made to the banks where certain items have not been included
that they should b e properly included i n the organization expenses, s o that that item may b e uniform a s nearly a s possible with
all banks, and that effective July 1, 1915, a general form of
carrying t h e expense accounts o f the banks b e recommended b y the
Board.
CHANGING DESIGNS O F FEDERAL RESERVE NOTES. seconded,
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Federal Reserve Bank of St. Louis
O n motion duly made and
i t was
VOTED t h a t this Conference suggest t o the Federal Reserve
Board the advisability o f making the following changes i n the
design o f Federal reserve notes:
le P r i n t i n g the distinctive letter o r figure desig-
nating the Federal reserve bank of issue i n larger and clearer type, a n d placing the same directly below and as near a s practicable t o the counter
figure i n the upper right hand corner o f the note.
(This recommendation is for the purpose of assisting in the sorting of notes.)
Placing i n the border a distinctive letter o r fig«
ure. (This recommendation is for the purpose of
identifying portions o f mutilated notes where the
present identifying marks cannot be seen. )
Changing the ink o r other material used i n affixing the red seal i n such a way as to make the notes
fit fer laundering.
Omitting the name o f the Federal reserve bank through
which the note i s issued, t h e text o f the Federal ReServe Act indicating that the means o f distinguishing
the issuing bank would b e limited t o figures and letters.
Atthis point a recess was taken at 1:15 p. m.
The Conference reassembled a t 2:30 p. m , a t which time Mr. Miller
rejoined the meeting.
The chairman stated t o Mr. Miller t h e substance o f t h e discussion
and resolution w i t h reference t o communications f r o m the Foedecal Reserve
Board,
TOPIC #5 (h) and (j) and #12 (i) - ACCOUNTS BETWEEN FEDERAL RESERVE
BANKS, E T C . = A f t e r considerable debate a n d discussion, a n d o n motion
d u l y made
and seconded, i t was
VOTED t h a t the Conference recommend t o the Federal
Reserve Board that t h e Federal reserve banks b e permitted
to withhold f o r certain exchange purposes, balances from
the Gold Settlement Fund, a n d that whenever s u c h balances
are withheld, both banks are t o advise the Federal Reserve
Board o f the amount t o b e withheld.
TOPIC #12 (c) = PURCHASES O F GOVERNMENT BONDS. =
T h e Secretary pre«
sented portions o f two opinions rendered b y counsel for the Federal Reserve
Board under dates o f April 2 6 t h a n d 2 2 n d respectively, a n d after considerable
discussion and o n motion duly made and seconded, i t was
VOTED t h a t i n case o f a ruling being rendered b y the
Federal Reserve Board that United States bonds available
for circulation bought prior t o December 23, 1915, shall
count a s part o f the allotment o f bonds t o b e made under
the terms o f Section 1 8 of the Federal Reserve Act, the
executive committee shall, immediately thereafter, request
one Federal reserve bank t o act a s agent for the other Federal reserve banks i n purchasing such bonds prior t o December 23, 1915, under a plan t o b e formulated b y the said
committee.
TOPIC #12 (f) and (h) - PURCHASE O F TRADE ACCEPTANCES, ETC. -
After
considerable discussion, a n d o n motion duly made and seconded, i t was
VOTED t h a t i t is recommended that the Federal reserve
banks enlist the aid o f Clearing Houses, Chambers o f Commerce
and credit bodies i n their respective districts t o bring about
a change i n commercial practices, w h i c h will cause t h e creation
of trade acceptances i n all commercial transactions where prac=
ticable, t o the end that sounder credit practices may b e promoted and a part o f that vast fund o f open accounts b e turned into
trade paper eligible f o r rediscount w i t h Federal reserve banks,
ané that t h e resources o f those banks m a y b e t o the fullest e x tent a n d upon t h e soundest b a s i s available f o r the convenience
of the country.
It is further recommended that the Federal Reserve Board
be requested t o consider the advisability o f allowing the Federal reserve banks t o establish a preferential rate fo: such
acceptances, bearing the indorsement o f member banks,
TOPIC #11 (b) - METHOD O F SETTLING OVERDRAFTS. -
After a brief dis-
cussion, this subject was passed o n the statement o f Mr. Broderick that h e will
have the matter straightehed out i n the next week o r two.
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Federal Reserve Bank of St. Louis
=10-
FO
FORM FOR ANALYSIS O F EXPENSES AND INCOME, a n d TOPIC #5 (e) - E S T A B L I S HawaM E N T
committee t o be
UNIT COST O R STANDARD O F COMPARISON, = were all referred t o ihe
connection with other
appointed b y the executive committee for consideration i n
matters o f accounting,
TI IORETURN
W
N
TOPIC #5 (f) - DISTRIBUTION OF EXPENSE IN C O N N E CETSHE
pessed b y consent.
OF FEDERAL RESERVE NOTES O F OTHER BANKS FOR REDEMPTION ~ was
poprc #5 (g) - STANDARD FORM OF FINANCIAL STATEMENTS - has already
been dealt with under another heading.
O
Z
topic #5 (1) - GOLD HELD BY FEDERAL RESERVE AGENTS AS SECURITYR
duly made and secondNOTES, ETC, « After considerable discussion, a n d o n motion
ed, i t was
it
VOTED t h a t i t i s the sense o f the Conference that
notes
reserve
is desirable that the full amount o f Federal
balance
of a n y bank should b e shown a s a liability i n its
sheet, a n d that the gold deposited with the Federal reserve
be
agent for the redemption o f such notes should likewise
notes
o
f
the
showm a s a fund available for the redemption
that
on the balance sheet; a n d it is further recommended
in
change
this
the Federal Reserve Board consider whether
re=
Federal
the
b
y
made
bookkeeping methods c a n properly b e
serve banks.
Fund
The question o f authorizing transfers from the Gold Settlement
Reserve Board f o r the ac»
to the Treasury o f the United States o r t o the Federal
discussione
count o f Federal Reserve Agents, was brought u p for
M r . McCord
Federal Reserve Board.
stated that h e had already taken this matter u p with the
o n motion duly made and seconded, i t was
Whereupon,
tc
VOTED t h a t t h e Federal Reserve Board b e requested
communicate t o all o f the Federal reserve banks the result
of its investigation o f the application made b y Governor
MeCord f o r consideration o f this matter.
UNITED
TOPIC #19 - FEDERAL RESERVE BANKS A S FISCAL AGENTS O F THE
8
“
N
T
. «
relae
T h e chairman stated that the matter o f subtreasury
Board i n accordance w i t h the
tions h a d been presented t o the Federal Reserve
o n March 12, 1916. Wherevote passed a t the Third Conference o f Governors heid
upon, o n motion duly made and sezonded, i t was
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Federal Reserve Bank of St. Louis
VOTED t h a t the Conference take u p witn the Feceral
Subvreas«
Reserve Board the whcle subject o f Treasury a n d
of a
means
b
y
banks
reserve
Federal
the
o
f
ury relations
Board,
committee t o be appointed b y the Federal HKeserve
Conferthe
o
f
chairmar:
the
and
the Treasury Department
with a
ence o f Governors o f the Federal reserve banks,
Federal
vhe
o
f
business
banking
the
view o f developing
reserve banks now conducted b y the Treasury Departuents
TOPIC #5 (m) - WEEKLY REPORT OF RESERVE BY MEMBER BANKS - was passed
by consent.
TOPIC #5 (n) - PROPER INDORSEMENT O F COMMERCIAL PAPER AND GOLD ORDER
CERTIFICATES DEPOSITED WITH FEDERAL RESERVE AGENTS. - After a brief discussion
and o n motion duly made and seconded, i t was
VOTED t h a t the Conference recommend t o the Federal ReServe Board that n o indorsement b e required o n commercial paper
pledged with Federal reserve agents.
And i t was further
VOTED t h a t the Conference recommend t o the Board that gold
order certificates deposited with Federal Reserve Agents b e made
payable o r indorsed t o the order o f "the Federal reserve bank o r
the Federal Reserve Agent."
At this point Mr. Broderick joined the Conference,
TOPIC #8 (c) » CREDITS BETWEEN FEDERAL RESERVE BANKS, ~This topic
was passed b y consent o n the statement b y Mr. Broderick that h e believed i t
perfectly proper n o w to consider that excess due from one Federal reserve bank
to another was a proper deduction from deposits o n the ground that i t repre-
sents uncollected items.
TOPIC #12 (k) - ACCEPTANCES, AUTHORIZED SIGNATURES, ETC. -
This
topic was passed o n the understanding that the officers o f the Federal reserve
banks for whom acceptances wre being purchased, will send t o the Federal Re»
serve Bank of New York the necessary specimen signature cards, which will be
filled out in New York with the signatures of the officers of the accepting
institutions a n d returned t o the banks.
TOPIC #12 (m) + STANDARD FORMS OF MUNICIPAL WARRANTS » was passed
by consent o n the understanding that the Secretary would obtain copies o f
some standard forms i n New York, i f possible, a n d send them t o each Federal
reserve bank.
TOPIC #20 = METHOD O F COMPUTING DIVIDEND, -
On motion duly made and
seconded, i t was
VOTED t h a t this matter b e referred for investigation
and report t o . acommittee consisting o f Messrs. McCord, Seay
and Van Zandt.
TOPIC #21 » DECREASES I N MEMBER BANKS' SURPLUS. -
O n motion duly
made. and seconded, i t was
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Federal Reserve Bank of St. Louis
VOTED
t o let this matter t a k e i t s natural course.
The chairman stated that h e desired t o ask for instructions
as
to the best method o f presenting the results
o f these Conferences t o the
Federal Reserve Board, Whereupon,
o n motion duly made and seconded, i t was
VOTED t o prepare a sufficient number o f copies
of
the report o f the proceedings t o be sent to the Federal
Reserve Board,
s o that e a c h o f the active members m a y
re=
ceive a separate copy and that the Board b e requested
to
consider the subjects and have them referred t o
committees
or otherwise dealt with i n such a manner that the
Confer-~
ence may continue their work as a permanent a n d
continuous
record, =
the results t o b e distributed t o all
t h e banks.
At this point a recess was taken a t 1325. -fe ie
wewI0000=——
The Conference reassembled a t oS Dyes
All present except Mr. Aiken.
TOPIC #8 (b) » TRANSFER CHARGES AND EXTENSION O F FACILITIES
TO
NON=JOINING BANKS. =
T h e matter o f transfer charges was discussed but
no
action was had thereon.
A f t e r a discussion o f the question o f the exten«
sion o f facilities and o n motion duly made and seconded,
i t was
VOTED t h a t the privilege o f transferring funds b e
extended b y the Federal reserve banks t o all member
banks
on the same terms.
The meeting adjourned a t 1 0 o'clock P e Ms
===00000<"=
June 16, 1915,
The Conference reassembled a t 9:45 a. me
All present.
The chairman suggested the advisability o f inviting a member o f
the Federal Reserve Board t o attend future conferences. W h e r e u p o n ,
o n motion
duly made and Seconded, i t was
VOTED t h a t the chairman b e authorized t o extend a n
invitation t o the Federal Reserve B o a r d t
o have one o f
its members present a t future conferences o f the governors, for the purpose o f discussing particularly such topics as the Board may Suggest for consideration.
TOPIC #22 - NATIONAL BANKS = LETTERS O F CREDIT = RECENT
INSTRUCTIONS
OF THE COMPTROLLER. -
Mr. A i k e n called t h e attention o f t h e Conference t o
a
letter o f instructions recently written o y she Comptroller
o f the Currency t o
a national bank examiner with reference + o national banxs guaranteeing
letters
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Federal Reserve Bank of St. Louis
following preambls
of credit. Whereupon, o n motion duly made and seconded, t h e
and resolution were adopted:
o f Governors h a s
WHEREAS t h e attention o f the Conference
the Currency,
o
f
Comptroller
t
h
e
been drawm t o a letter f r o m
examiners, i n
dated June 2, 1915, addressed t o national bank
a n d other credits b y
regard t o the guaranteeing o f commercial
national banks,
b e requestBE IT RESOLVED t h a t the Federal Reserve Board
instructions,
these
o
f
a
withdrawal
ed to obtain, i f possible,
s u c h instructions,
it being t h e conviction o f the Conference t h a t
if literally
ant business
terfere with
which should
T O P I C
enforced, would seriously interfere with a n importn o w being conducted b y member banks, a n d further inthe future development o f the acceptance business,
b e encouraged.
#23 - RETIREMENT O F FEDERAL RESERVE NOTES,
w a s passed b y
f
consent a s having been covered b y a n earlier discussion.
TOPIC # 1 4 (a) =
COLLECTION O F CHECKS, ETC. -
T h i s matter w a s brief-
ly discussed b u t n o action w a s h a d thereon.
I N OTHER FEDTOPIC #14 (b) - RECEIPT O F ITEMS DRAWN O N MEMBER BANKS
ERAL RESERVE CITIES. -
on
After a n informal discussion o f this subject, a n d
motion duly made and seconded, i t was
VOTED t h a t before any Federal reserve bank undertakes
i n another
to receive o n deposit items drawn o n member banks
arrangements
district, i t should first effect satisfactory
with the Federal reserve bank o f that district.
TOPIC #14 (c) = COLLECTION O F TIME ITEMS -
w a s briefly discussed but
no action was had thereon.
At this point Mr. Wells left the meeting.
The Chairman presented a
statement f o r t h e press prepared b y the sec-
i t was
retarye W h e r e u p o n , o n motion duly made and seconded,
and
VOTED t h a t the statement a s prepared b e approved
its publication authorized.
BANKS. TOPIC #17 - ESTABLISHMENT O F BRANCHES O F FEDERAL RESERVE
and seconded, i t was
After a brief discussion, a n d o n motion duly made
1%
VOTED t h a t i t is the sense o f the Conference that
reFederal
branch
is inexpedient t o undertake t o establish
serve banks a t this time.
of
The Secretary then presented a biter from Mr. Willis, Secretary
o f the Conference for publicae
the Federal Reserve Board, requesting a n account
motion duly made and secondtion in the Federal Reserve Bulletin. Whereupon o n
ed, it was
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Federal Reserve Bank of St. Louis
the
VOTED t h a t the secretary b e requected t o furnish
of
outline
a
n
with
Board
Reserve
secretary o f the Federal
in
publication
f
o
r
Conference,
the work accomplished b y the
the Bulletin.
PLACH O F NEXT CONFERENCE: -
The chairman stated that i t was i n order
to discuss the time and place c f holding the next Conference.
M r . Lowry ex«
tended a n invitation t o all members t o have the Conference held ct San Francis>
in September, i n conjunction with the American Bankers Association Convention i n
Seattle.
Whereupon,
o n motion d u l y mace a n d seconded,
i t was
VOTED t h a t ths question o f attending a conference a t
San Francisco b e taken u p with the directors o f each o f the
Federal reserve banks forthwith, a n d also taken u p informal~
ly with the Federal Reserve Board for its suggestions, a n d
, that the conference duly appreciates the invitation extended
\ by Mr. Lowry.
At this point Messrs. Rhoads and McCord left the meeting.
TOPIC #18 (a) - FEDERAL RESERVE NOTES A S RESERVES FOR NATIONAL BANKS =
was briefly discussed b u t n o action w a s h a d thereon.
i
TOPIC #18 (b) = RULING OF COMPTROLLER WITHHOLDING PRIVILEGE OF DEDUG'ING NATIONAL BANK NOTES I N RESERVE CALCULATION.- A f t e r considerable discussion,
and o n motion duly made and seconded, i t was
VOTED t h a t the action taken b y the Second Conference. o f
Governors i n January o n this subject, b e submitted t o the Federal
Reserve Board i n writing, a n d that they v e requested i n behalf o f
the member banks t o consider the matter further with the Comptroller o f the Currency.
The action taken a t the Second Conference o f Governors w a s a s follows:
"TOPIC #7 - concerning the Comptroller's brecent ruling with
respect t o national bank notes, w a s then taken u p for discussion.
Whereupon,
o n motion d u l y made a n d seconded,
i t was
"VOTED t h a t i t i s the sense o f the meeting that the nation-=
al bank notes o f a n y national b a n k bear t h e s a m e relation t o a
national bank as a credit and shou2d b e allowed a s a n offset i n
counting the reserves o f such banks."
TOPIC #18 (c) - EXCESS RESERVES O F MEMBER BANKS - was taken u p for discussion, b u t n o action was had thereon.
The chairman suggested that the Secretary b e authorized t o make appro-
priate changes i n the language of the resolutions appearing i n the record. Whereupon,
o n motion d u l y made a n d seconded,
i t was
VOTED t h a t the secretary b e authorized t o reframe resolu}
tions adopted b y the Conference and t o correct inaccuracies o f
expression o r of grammar a t his discretion.
TOPIC #15 - INTER-DISTRICT COLLECTIONS AND CLEARINGS = was referred t o
the executive committee b y consent,
Upon motion, the meeting duly adjourned sine die at 12430 p. m, sub=
ject t o the call o f the chairman,
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Federal Reserve Bank of St. Louis
Secretary.
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Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER