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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis VOLUME... RXYECTY Btht 6S te) T T V E Vy V i T T Ei E O F OL rw GO V E R N O R EXECUTIVE MITTEE iiM T zi 4 P R D E I RAL, ty R o e Ween 17,192 WALTER S. COX SHORTHAND COLUMBIAN REPORTER BUILDING—TEL. WASHINGTON, Govern o v D . C. M . 8324 JOINT CONFERENCE OF EXECUTIVE COMMITTEE O F CONFERENCE O F GOVERNORS AND EXECULIVE COMMITTEE O F CONFERENCE O F FEDERAL RESERVE AGENTS WASHINGTON, D. C., NOVEMBER 17, 1915. Of joint conference t o report procesdings t o Federal Reserve Board, fo alternate between Executive Committee o f Governors and Executive Committee o f Agents. CHIEF EXAMINERS D e p u t y Federal Reserve Agents. CLEARINGS COMMIT? EE T o prepare program DEPUTY FEDERAL RESERVE AGENTS DIRECT ORS A s chief examiners O f Federal Reserve Banks in Advisory Council FEDERAL ADVISORY COUNCIL O f f i c e r s o r Directors o f Federal Reserve Banks, a s members FEDERAL RESERVE AGENTS S u NO?ES I r s s e u t y bonds. e s FIDUCIARY POVERS FUTURE CONFERENCES GOLD ORDER CERDIPICATES I s s u e s GOLD RESERVE f e x o n deficiency ISsvuE OF FEDERAL RESERVE NOTES ISSUE O F CARGO GOLD ORDER CERTIFICATES WOLTICE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis f o Federal Reserve B o a r d o f session. OFFICERS O F FEDERAL RESERVE BANKS RELATIONS WITH in Advisory Council Comptroller o f Currency Member Banks Public State Banks Subtreasuries SAVINGS B A M MEMBERSHIPS STaTIstics SURETY BONDS For Federal Reserve Agents TAX On deficiency i n gold reserve. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MERLING O F EXECUTIVE COMMITTEE OF THE CONFERENCE O F GOVERNORS. WASHINGTON, D. C., NOVEMBER 18-20,1915. AMERDEENES AMERICAN BANKERS ASSOC TAT Tow NATIONAL BANKING SECTION CLIARIFTING fo Federal Reserve A c t Joint meeting with Executive Committee o f Governors, December 15, 1915. Sections 15, 14, 16, 1 8 andi 22 ef Federal Reserve Jct. CLEARINGS COLLECTION SYSTEM Further development o f CQMTROLIOR O F CURRENCY fransfexr t o Pederal Reserve Boaxi o f Department o f Examination now under control of Comptroller ef Currency. Cos? O F PRINTING Federal Eeserve Notes DELANO, ¥. A, Diseussion o f clearing problems. BLLIOT, Me Ce, Attendance EXPENSE O F OPERATING FADERAL RESERVE ac? Gold Settlement Fund Amerinents Glarifying sections, 15, 14, 16, 18 a n d 2 2 , FEDERAL RESERVE HOES Cost o f printing FEDERAL RuSERVE BOARD Proposed rules t o member banks, through Federal Reserve Banks. FIVE QUESTIONS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Report t o Federal Reserve. Board om anewers t o t h e five questions. FURTHER DEVELOPMENT OF COLLECTION SYStem GOLD S E T T L E FUND C o d e word for Governors m d Agents. Expense of operation. Report o f Auditing Committee MEMBER BANKS P r o p o s e d rules of Federal Heserve Board t o Through Federal. Reserve Banks. NATIONAL BANKING SEOTION O F A. B. A w J o i n t meeting with Executive Comittee o f Governors, December 15, 1915. PhiWwYORK OY REVENUE TWAVRANGS PROPOSED RULES Of FEDERAL RESERVE BOARD, f o member banks through Federal Reserve Banks. REY ORTS 10 FUDERAL RESERVE BOARD A n s w e r s t o the five questions. Onvote 2 of the report of Transit emigers’ Conference. SAVINGS BANK MEMBRRSHIP TRANSIT MANAGERS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CONFERENCE, OCLOBER 6~7,1915. R e p o r t to Board o n Vote 2. Minutes. Li f i w vig rvitlinf 1 iy Sa t whey ‘ CLO P e w a ff V t l i d with. a a i e L o p i e P s : d o C a #44 o i r ,h , A M A h O f n m e , JOINT CONFERENCE of EXECUTIVE COMMITTEE O F CONFERENCE O F GOVERNORS EXECUTIVE C O M M I T T E E O F CONFERENCE The J o i n t C o n f e r e n c e Conference o f Governors O F F E D E R A L R E S E R V E AGENTS. o f Executive Committees a n d t h e Conference o f the o f Federal Re- serve A g e n t s c o n v e n e d a t t h e S h o r e h a m H o t e l , W a s h i n g t o n , D.C., Wednesdey, November 17, 1915, a t 1 0 o'clock a.m. ATTENDANCE: Executive c o m m i t t e e o f Governors' C o n f e r e n c e : Governor J . B , M c D o u g a l , F e d e r a l R e s e r v e B a n k o f Chicago, C h a i r m e n , Governor B e n j a m i n Strong, J r . , F e d e r a l R e s e r v e B a n k of N e w York, Governor Geo. J . Seay, F e d e r a l R e s e r v e B a n k o f Rich- mond, Governor © . J . Rhoads, F e d e r a l R e s e r v e B a n k o f Philadeiphia, Governor E.R.Fancher, F e d e r a l R e s e r v e B a n k o f Cleveland. Governor 4£,L.Aiken,Federel R e s e r v e B a n k o f Boston. Executive C o m m i t t e e o f C o n f e r e n c e o f Federal Reserve. Agents: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Pierr@Jsy, Federal Reserve Agent, N e w York, Chairman, John Perrin, F e d e r a l R e s e r v e A g e n t , S a n Francisco, D. G . Wills, F e d e r a l R e s e r v e A g e n t , C l e v e l a n d , Charles H . Bosworth, F e d e r a l R e s e r v e A g e n t , C h i c a g o , W. McC. M a r t i n , F e d e r a l R e s e r v e A g e n t , St.Louis. 2 There were also present Governor A . C . Kains, Federal R e s e r v e Bank Assistant C a s h i e r o f San Francisco and o f the Federal Reserve o f the M r . L.H.Hendricks Bank o f N e w York. INFORMS LPROCEEDINGS. Mr. Pierre Jay, Federal Reserve Agent, N e w York, w a s elected chairman o f the Joint Conference o f Executive C o m — mittees, e n d Mr. D . © . Wills, F e d e r a l R e s e r v e A g e n t , C l e v e - land, w a s e l e c t e d S e c r e t a r y o f t h e J o i n t Conference. FORMAL PROCEEDINGS. Mr. J a y , u p o n t a k i n g t h e chair, m a d e a n i n t r o d u c t o r y statement o f the purposes o f the Executive Committee o f the F e d e r a l R e s e r v e A g e n t s ' C o n f e r e n c e i n requesting a joint meeting o f t h e t w o e x e c u t i v e c o m m i t t e e s . (Considerable informal discussion t o o k place a s t o the policy t o b e pursued b y the Joint Conference o f Executive Committees, a n d also o f the programs t o b e considered b y t h e C o n f e r e n c e o f Governors a n d t h e Conference of Agents.) The Chairman: the s u b j e c t M r . Strong, w i l l y o u make a motion o n o f programs? Governor Strong: I Mr. C h e i r m a n , will b e oa member o f the committee, a n d would r a t h e r t h a t someone e l s e msde t h e motion. Governor Fancher: I four b e appointed, said c o m m i t t e e Governors, motion that a committee o f w i t h full power t o prepare a t o consist of Federal R e s e r v e A g e n t s , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis make a o f the Chairman program, o f t h e Conferesace t h e Chairmen o f t h e Conference t h e Chairman o f t h e Fxecutive Committee o f the of 3 Conference o f Federal R e s e r v e A g e n t s a n d t h e C h e i r m a n o f the E x e c u t i v e C o m m i t t e e o f the Conference o f Governors; said committee t o prepare t h e topics t o b e submitted t o the meetings o f the Federal Reserve Agents a n d o f the Governors o f t h e Federal R e s e r v e Banks. The Chesirman: Mr. Martin: I I s there a second t o that motion? sécond t h e motion. (Informal discussion followed) The Cheirman: A r e y o u ready f o r t h e question? (There w e r e c a l l s f o r t h e question, a n d t h e motion, being duly seconded, w a s unanimously carried.) (Informal discussion followed. ‘with reference t o the submission o f topics f o r discussion. ) The Chairman: H a v i n g disposed o f the method o f pre- pering programs, w o u l d i t b e p r o p e r t o r e c e i v e f r o m t h o s e present suggestions a s t o what topics m a y b e referred t o these conferences, o r shall w e proceed t o discuss i t from some o t h e r p o i n t o f view? (Informal discussion followed.) Governor Strong: I will m o v e t h a t t h e C h a i r m a n o f this meeting a n d the chairmen o f subsequent meetings o f joint conferences should b e authorized a n d directed b y the meeting t o make reports t o the Federal Reserve Board o f the p r o c e e d i n g s t h e r e o f . fr, Perrin: I The Chairman: joint c o n f e r e n c e will second that motion. T h e motion i s that t h e members o f executive c o m m i t t e e s o f the o f t h e t w o bodies Shall require t h e submission o f a report b y the Chairman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of the Joint Conference t o the Federal Reserve Bosra o f the actions taken a t the conference. (The motion, b e i n g duly seconded, w a s carried. ) (After informal discussion t h e following motion w a s made: ) Governor Strong: I Joint C o n f e r e n c e move that t h e chairmanship o f the o f Executive Committees o f Governors and Pederal Reserve Agents alternate between t h e Chairman o f these t w o committees. Me Perrin: I The Chairman: second that motion. I s there a n y further discussion? (There w a s n o further discussion a n d the motion was carried. ) The Chairman: W h a t will b e your pleasure about t h e next matter t o b e discussed? Mi i t e : S i n c e this meeting w a s called b y yourself, Mr. Chairman, y o u might submit t o this Conference t w o o r three of the matters that were acted upon at our meeting, and which might call f o r ratification b y the Governors. The Chairmen: M r . YTills, I will a s k y o u t o submit those matters, f r o m t h e list o f resolutions t h a t y o u have . Nr W i i s : I have i n mind three matters. A s a later matter for discussion w e have Mr. Bosworth's objection t o the t a x o n the deficiency i n gold reserves, a s h e calculates it, a s opposed t o regulation "0" o f the Federal Reserve Board, The Chsirman: T h a t is a matter f o r d i s c u s s i o n later, I understand? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mee e d hss Y e s . T h e r e were three matters that we took a c t i o n o n . The f i r s t w a s t h e q u e s t i o n o f p o l i c y o f a p p e i n t i n g chief examiners a s deputy Federal Reserve Agents a n d Vice- Chairmen.. That was not loaked upem with favor b y our cenference, a n d w e passed a resblutioh t 6 thet effecti M r . Rich, Mr. Miller and Mr. Perrin dissented. Mre Perrin: M r . R i c h a n d myself epposed t h e prin- ciple, b u t w e veted in: favor o f the present incumbents. The Chairman: T h i s matter was submitted t o us b y the Federal Reserve B a r d , w h o asked f o r o u r views u p o n the policy o f appeinting t h e chief examiner o f the district Deputy F e d e r a l R e s e r v e A g e n t a n d V i c e Chairman. T h e y asked u s t o consider t h e matter i n the light o f the experience o f each district. Mr. Wills: T h e next point w a s a motion that, i n the opinion o f the Federal Reserve Agents, t h e bonds o f surety required o f them a n d o f the Deputy Reserve Agents a r e u n necessarily h i g h i n amount a n d that a reduction i n amount should b e made b y the Board, o u r centention being t h a t o n l y a nominal amount, s a y $50,900 should b e required. Mr. Perrin: $20,000 was Mr. Forgan's idea of the maximum amount that a n y bank officer should b e made t o give. Mr. Wills: T h e third matter w a s a n expression o f our Opinion that members o f the Advisory Ceuncil should neither be officets n o r directors o f Federal Reserve Banks. (Informal discussien followed.) The Chairman: W o u l d i t b e the pleasure o f this Confer— ence t o discuss t h e a c t i o n s o f t h e F e d e r a l R e s e r v e Agents: Conference o n these three topics? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T h e first o n e i 8 a matter that i n t e r e s t s t h e b a n k s a s w e l l a s t h e F e d e r a l R e s e r v e Agents, namely, t h e bonds o f Federal Reserve Agents. Governor Seay: I move t h a t t h e y b e m a t t e r s f o r d i s - cussion, M r . Chairman. Mr. Fancher: I will second t h a t motion. (The motion was duly carried.) The Chairman: M r . Wills, c a n y o u amplify i n any way the p r e s e n t a t i o n y o u m a d e o f t h e q u e s t i o n o f the amount of bonds? (Informal Giscussion followed.) Governor Seay: I move i t i s the sense o f this joint cenference t h a t t h e F e d e r a l R e s e r v e B o a r d s h o u l d p r e s c r i b e the r e g u l a t i o n s g o v e r n i n g t h e p h y s i c a l c u s t o d y o f t h e f u n d s and securities i n the hands o f the Federal Reserve Agents, and t h o s e r e g u l a t i o n s s h o u l d b e s u c h a s p r e v a i l i n standard banking practice; a n d that under s u c h regulations t h e bonds of the Federal Reserve Agents a n d the Deputy Federal Reserve Agents s h o u l d b e r e d u c e d t o t h e a m o u n t r e q u i r e d o f the c h i e f executive officials o f the reserve banks. Governor Stréng: I will second t h a t motion. (After the further informal discussien o f the motien it was unanimously carried.) The Chairman: T h e next. t o p i c u p e n w h i c h t h e . t o n f e r - ence o f Federal Reserve Agents t o o k action was t h e o n e proposed b y t h e F e d e r a l R e s e r v e B o a r d . T h e y asked u s t @ con- sider t h e p o l i c y o f a p p o i n t i n g c h i e f e x a m i n e r s a s deputy Federal Reserve Agents, a n d t o consider i t i n the light o f the c x p e r l e n c e https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis o f the d i f f e r e n t districts. M r . Wills h a s 7 reperted t h e v o t e u p e n that, w h i c h w a s unanimous, with one exception, w i t h regard t o the principle, although Mr. R i c h and Mr. P e r r i n v o t e d n o w h e n i t c a m e t o t h e p e r s e n a l ques-— tion. Is t h i s m a t t e r u p e n w h i c h t h e J o i n t C o n f e r e n c e w o u l d like t o take action? (Informal Giscussion followed. D u r i n g the discussion Mr. J a y r e a d a paper i n s e r t e d b y h i m i n t h e report: o f the Conference o f Federal Reserve Agents h e l d i n Washington o n November 4 t h , 5 t h a n d 6 t h , w h i c h p a p e r i s t o b e f o u n d a t page 224, e t scq., o f said report.) The Chairman: V W p a t will b e y o u r pleasurein regard to this matter, gentlemen? I s this a matter upon which this C o n f e r e n c e w o u l d l i k e t o express i t s e l f Governor Strong: I the r e s o l u t i o n a d o p t e d o r not? move t h a t this conference endorse a t the Conference o f Agents h e l d i n Washington November 4th, 5 t h and 6th, 1915, which i s a s follows: That i t i s the sense o f the Conference t h a t w e d o not view w i t h a p p r o v a l t h e p o l i c y o f a p p c i n t i n g c h i e f e x a m i n e r s of t h e d i s t r i c t a s Vice C h a i r m e n a n d Deputy Reserve Agents. (After further informal discussion there were calls for t h e question.) The Chairman: T h e question has been called for, a n d if there. te-no0 further Giscussion, I will p u t t h e motion. (The motion, having been duly seconded, w a s carried.) The Chairman: T h e o t h e r matter which w e t o o k up, and. which Mr. Wills h a s read, w a s w i t h regard t o the members https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 of the Advisory Council, a n d a motion was carried that i t was t h e s e n s e o f o u r conference t h a t t h e m e m b e r s o f the Advisory Council should b e neither active officers n o t dir- ecters & f the Federal Reserve Banks. Is this a matter that this Conference desires t e especially take tp? I t has been presented t e you fer your pleasure, and what will that be? I think i t i s o n l y proper t o say that t h e d i s c u s a i o m of that matter was purely o n principle a n d entirely impersorpl. I n a number o f cases those present h a d cither their Gevernors o r directers o f their banks members o f the Advisory Council, a n d o u r vote represented merely t h e v i e w o f eur Conference that the purpose o f the Advisory Council was t o represent a n element o u t s i d e e f the Federal reserve banks. (Informal discussion followed.) Governor McDougal: I move t h a t this conference t a k e ne action o n this mea tter. Mr. Wills: I secand t h a t motion. (Motion, being duly seconded, was carried.) The Chairman: Wills r e f e r r e d T h a t covers t h e three points t h a t Mr. t o ashaving constituted t h e a c t i o n o f the Reserve Agents' Conference and which mightproperly be reported t o this J o i n t Conference. Mr. Wills: I moght say, a S a matter o f information, that w e toek practically t h e same action eas taken b y the Governors o n the question o f getting all the information possible f r o m the examiners! reports a n d a s t o having a c cess t o them. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Considerable informal discussion followed.) The C h a i r m a n : W e have discussed a number o f thé points brought o u t b y the Conference o f the Reserve ‘gents, and w e have not y e t done anything o n the discussion o f whet points might well b e taken u p b y the Reserve Agents' C o n ference e n d its Fxecutive Committee. Would i t b e y o u r p l e a s u r e t o have a discussion of that now o r a t some cther time during this conference? Mr. McDougal: I w o u l d m o v e t h a t w e postpone f u r t h e r discussion o f sny ahd a l l subjects until after luncheon, end that w e now adjourn until half past two o'clock. (Whereupon, u p o n motion duly seconded; t h e Joint Conference took a recess a t 12:50 o'clock p. m., until 2:50 o'clock p , m , o f the same d r y . } AFTER RECESS, The Joint Conference resumed i t s session a t 2:30 Oo610ek 9 , m e The Chairman: W e have n o regular p r o g r a m f o r this afternoon, Y o u l e i t b e advisable f o r u s t o consicer notifying t h e federal Reserve Board that w e are i n session, i n c a s e t h e y have, a n y m e s s a g e s Governor Seay: I t o send t o us? think t h a t w o u l d b e t h e p r o p e r thing t o do, I move t h a t t h e C h a i r m a n o f t h i s C o n f e r e n c e n o t i f y the Federal Reserve B o a r d that this joint conference i s taking place, a n d that i f the Boarddesires us o r i f i t desires are https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t o confer w i t h t o s u b m i t a n y t h i n g f o r discussion, a t t h e i r disposal, w e 19 (The motion was duly carried and Mr. Wills was appointed b y the Chair t o convey t h e notification t o the Board.) (After i n f o r m a l d i s c u s s i o n t h e s u g g e s t i o n w a s m a d e that t h e Chairman might l a y before t h e meeting t h e topics discussed b y Governor McDougal a n d himself e n route t o the Conference.) The Chairman: I n response t o that s u g g e s t i m m I will State that t h e following matters were discussed b y Governor Mrbougal a n d m y s e l f l a s t n i g h t w h i l e w e w e r e c o m i n g t o W a s h i n g t: n o First. M a t t e r s connected w i t h t h e issue o f Federal Resebve n o t e s ; Second. T h e work o f the bank i n connection with infor- maticn a n d statistics; Third. R e l a t i o n s w i t h t h e member banks, relations with s t a t e i n s t i t u t i o n s a n d r e l a t i o n s w i t h t h p u b l i c ; Fourth. T h e g r a n t i n g o f fiductary powers; Fifth. R e l a t i o n s w i t h the sub-treasury; Sixth. R e l a t i o n s w i t h the Comptroller. These were matters o f more o r less interest w h i c h w e thought might properly come under the Federal Reserve Agents! Conference, and upon which independent action might o f t e n b e t a k e n w i t h o u t m o r e t h a n a mere s t a t e m e n t of that action t o the Governors' Conference. There a r e o t h e r m a t t e r s t h a t w e m i g h t w a n t t o discuss jointly from time t o time i n addition t o sich phases o f the f o r e g o i n g t o p i c s a s m i g h t s e e m d e s i r a b l e discussien. f o r joint T h o s e t o p i e s w o u l d b e , f o r instance, oub policy i n regard t o discount rates; o u r policy i n regard + 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a1 investments, a n d matters o f the general policies o f the banks a n d i f this conference That was a l l w e h a d t e mggest, desires t o discuss t h e proposals; t h a t would b e i n order. Governor Seay: I suggest that w e take the matters u p tm order. T h e first subject w a s Federal reserve The Chairman: mote issues. I understand that the Governors’ Conference has proceeded t o some extent i x a n investigatiom o f that matter. Mr. Perrin: M r . Chairman, I second Mr. Seay's metien that w e t a k e t h e s e m a t t e r s The Chairman: that t h e s e t o p i c s u p i n order. T h e motion has m d e and seconded b e e n i b e t a k e n u p a n d c o n s i d e r e d o n e b y one. Is t h e r e a n y G i s c u s s i m q o f that motiqn? (There was n o ciscussion o f the motion and the motion was carried.) The Chairman: T h e matter o f Federal reserve n o t e issue has b e e n taken u p already b y the Governors’ Conference a n d considerable progress made o n a thereugh a n d complete s t u d y ef it. I t may be impracticable o r undesirable f o r us t o attempt t o c o m i n o n the matter a t this stage o f oly s e y : its consideratim. (Informal ciscussicw, followed.) The Chairman: I t might peesibly b e well i f the Govern- ers would tell us what particular phases o f the nete issue they a r e w o r k i n g o n now. A f t e r that, b y agreement, they could continue t o act upon those particular phases, a n d then, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i f i t seemed desirable, a n y questions t h a t arise lia me connection with the note issue could b e taken u p b y the Federal Reserve Agents. (Informal discussion followed.) The Chairman: A r e w e ready for a vote o n the question of referring t h e general topic o f Federal Reserve notes, outside o f those particular phases o f it which the Executive Committee o f the Governors h a s i n hand, t o the Federal R e - serve Agents' Conference? (Informal discussion followed: ) e e n Seay? I move i t i s the sense o f this Cén-+ ference t h a t t h e Executive Committee o f the Federal Reserve Agents, o r t h e F e d e r a l R e s e r v e Agents’ Conference, s h o u l d consider t h e Federal Reserve n o t e issue i n all o f its phases, t h a t is, t h e issue a n d redemption, a n d that t h e Executive Committee o f the Governers should pursue t e a conclusion those phases o f the issuing o f Federal reserve notes which i t has h a d under study a n d deliberation u p t o the p r e s e n t t i m e . When w e reach o u r conclusions them t e y o u r committee a n d t h e n I ence c a n settle t h e question. o n that w e could convey imagine a joint c o n f e r - B u t i t i s a subject t h a t might w e l l r e c e i v e a l l t h e c o n s i d e r a t i o n t h a t t h e F e d e r a l reserve agents c a n give t o it. A t t h e same time, t h e Governors h a v e s t a r t e d c e r t a i n i n v e s t i g a t i o n s w h i c h I think they will have t o pursue through t o a conclusien, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I therefore m a k e a Governor Fancher: I The Chairman: motion t o that effect. second t h a t motion. I s there a n y further discussion of motion? (There w a s further informal discussion o f the motion, at the conclusion o f which the motion was duly mrried.) The Chairman: T h e next topic that Governor McDougal and m y s e l f p i c k e d o u t f o r d i s c u s s i o n w a s w h e t h e r might b e w e l l t o p e r e r o r net i t t O the Reserve Agents' C o n f e r e n c e the question o f statistics and information. T h a t is, a department c f the w o r k o f the Federal Reserve b a n k s w h i c h as y e t h a s b e e n v e r y l i t t l e d e v e l o p e d , l a r g e l y o w i n g t o t h e pressure o f more i m p o r t a n t m a t t e r s , a n d a l s o o n account of the expense involved. The Reserve Board expects t e get its information a n d statistics f r o m the Federal Reserve Agents. T h o s e statis- tics a n d i n f o r m a t i o n a r e i m p o r t a n t a l s o f o r t h e b a n k itself. The Governors, therefore, h a v e a distinct interest i n them. The question i s whether t h e y would like t o free theirprogram o f topics relating t e that general division o f the work and refer t h e m bodily t o the Federal Reserve Agents. Gevernor Aiken: I s o meve, Mr. Chairman, t h a t i t b e referred t o the Federal Reserve Agents. Governor Fancher: I will s e c o n d t h a t motion. (Informal discussion followed.) The Chairman: T h e r e a r e calls f o r the question, a n d if there i s n o further discussion I will p u t t h e motion. (The m o t i o n w a s d u l y carried.) The Chairman: T h e next topic i s "Relations w i t h member banks." https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Informal discussion followed.) 14 The Chairman: I f n o one has a motion t e -iake upon this I will take that a s a disposition t e let the topic pass, a n d we w i l t proceed. The next topic i s a similar one, “Relatiens o f the Federal reserve system t o state banks." T h a t refers t e the question o f their joining i n a general way and more particularly t e examinations o f them before t h e y join, a n d after they have joined, reports e f conditien, a n d s o forth. Is this topic sufficiently comerete t o cmsider? Gavernor Aiken: I move t h a t t h e Federal Reserve Agents be requested t o consider t h e matter o f the terms o f admission, particularly a s t o the methods o f examination a n d sub= sequent s u p e r v i s i o n o f state b a n k s , a n d that t h e results should b e referred t o a subsequent joint conference o f the Executive C o m m i t t e e s o f the Federal Reserve Agents a n d t h e Governors! Conference. Gevernor S t r o n g : I w i l l s e c o n d t h a t -motion. (Discussion followed, a t the expiration * f which the motion was duiy carried.) The Chairman: M r . Wills, pefere w e take u p the next topic, have y o u anything t o report i n response t o sur notification t s t h e F e d e r a l R e s e r v e B o a r d t h a t w e a r e i n session? Mr. Wills; I c o m m u n i c a t e d w i t h Dr. W i l l i s , and le said h e would report t h e matter t o the Board just a s soen aS they returned f r o m luncheon, a n d phone us. The Ghairman: T h e next topic which Governor Mc- Dougal a n d I put d w n f o r discussion i s "Relations o f the Federal reserve banks a n d the Federal reserve system t c Lhe p u b i i s ” . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 That seems rather a n indefinite t o p i c b u t i t might b e that i f i t were referred definitely t e the Fedcral reserve agents f o r study something concrete a n d o f value might b e suggested. W e have n o suggestion a t the moment o f the lines o n which i t might b e developed. (Informal discussion f o r taedi} Governor Strong! I will move that the aibject o f re- relations o f Federal reserve banks t o the public b e referred to the Conference o f Federal Reserve Agents f o r development. Governor Fancher! [ I will second t h a t motien. (Informal discussion followed, a t the expiration o f which the motion was carried.) The Chairman: T h e next topic selected b y Governor MeDougal a n d myselfis "Fiduciary povers; inquiries concerning m e m b e r b a n k s t h a t a p p l y f o r a u t h o r i t y powers." t o exercise t r u s t T h i s i s a matter i n relation t o which t h e Federal reserve agents a r e obliged t o certify, i f I remember correct-- ly, a n d i t therefore s e e m e d t o u s t o b e o n e t h a t m i g h t c o m e under the consideration o f the Federal Reserve Agents! Conference. Governor Strong: I move t h a t that general subject b e referred t o the Federal Reserve Agents! Conference. (There were several seconds t o this motien a n d t h e motion was duly carried.) (Extended informal discussion took place with reference to sub-treasury relations, b u t n e formal action was taken o r the conference.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Chairman: T h e next t o p i c that w a s suggested h y 16 - Gevernor-MoDougal d n a myself i s "General relations with the Comptroller's office," (Extended informal discussién fellowed,) Governor McDougal} I move that that subject b e left for e a c h commii tee t o handle i n d i v i d u a l l y a s t h e y s e e fit. Mr. Martin: I will secend that e e (Further informal discussion follewed, after which the motion wes duly carried.) (Informal discussion took place a t this peint, with reference t o the duties o f Federal R e s e r v e A g e n t s , w h i c h the reporter was direfited n o t t o take.) The Chairman: M r . Wille h a v e y o u anything further tO report f r o m t h e F e d e r a l R e s e r v e B o a r d ? Mr. Wills: N o . T h e y said t h e y would report i f they had anything t o report upen, o r i f they had a n y questions that they wanted u s t o discuss. I assume that they have nothing t o submit, although Mr. Willis says that they -are in their offices a s late a s half past five o r ‘six o'clock. The Chairman: A r e there a n y other subjects w h i c h a n y of the members o f the Conference would like t o discuss? Mr. Perrin; I bring up. have t w e subjects t h a t I would like t o T h e first i s t h e question o f the organization of national banks. The Second question i s o n the matter o f formilating principles t h a t s h o u l d g o i n t e t h e c o d e o f a n y state r e v i s - its bank laws, a n d i t seems t o m e that joint action shoulé be t a k e n e n that matter. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Infermaj. discussion followed. ) 17 The Chairman: M r . Perrin, d o y o u desire t o make a motion o n t h a t m a t t e r ? Mr. Perrin: I d o net k n o w e x a c t l y h o w t o f r a m e a motion o n that, M r . C h a i r m a n ? (Further informal discussion followed. ) Governor Seay: I move i t i s t h e s e n s e o f t h i s J o i n t Couterence t h a t t h e F e d e r a l R e s e r v e B o a r d c o n s i d e r t h e a d visability o f agreeing u p o n a n d formulating certain general principles w h i c h s h o u l d b e e m b o d i e d laws r e l a t i n g i n a n y changes o f state t o banking. Mey Perria: I will s e c o n d t h a t motion. (After further informal discussion t h e mad ion w a s duly eerricd. | The Chairman: some o n e m a k e a ings b a n k s ( A f t e r informal discussion) W i l l motion o n t h e s u b j e c t o f m e m b e r s h i p o f s a v - i n the Federal reserve system? Gavernor Strong: I move t h a t t h e s u b j e c t o f amending the F e d e r a l R e s e r v e A c t s o a s t o p e r m i t m e m b e r s h i p o f mutual Savings banks i n the Tederal Reserve System b e referred t o the C o n f e r e n c e o f Pederal R e s e r v e A g e n t s , a n d t h a t t h a t mat-— ter b e a d d e d t o t h e i r program. Governor Aiken: I will second t h e motion. (The motion was duly carried. ) The C h a i r m a n : M r . Wills informe m e thet Dr. Willis made h i s r e p o r t a n d w e w o u l d l i k e t o h e a r i t . ie SLAs request, C r . Willis reported o v e r t h e phone t h a t o r r a t h e r o u r notification, h a d b e e n submit- | to the Board, a n d that t h e y h a d only o n e matter which https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i8 they s u g g e s t e d f o r s o h s i d e r e b i o n a n d t h a t i s t h e m a t t e r o f clearings. H e also says t h a t M r i Warburg made t h e sugges- tioh that we ought to consider the question of issuing gold certificates o f l a r g e denominations. I presumé h e means larger than ten thousand dollars, which o f course concerns the willingness o f the reserve banks t o freely issue r e serve n o t e s i n small denominations. (Informal discussion followed. ) The Cheirman: W h a t i s your pleasure w i t h regard t o the matters submitted b y the Board? Governor Fancher: I move that this Conference c o n - cur i n the action o f the Federal Reserve Agents' Conference, w h i c h i s a s f o l l o w s : ) That ‘it would b e a convenience i f gold order certi- ficates were issued i n denominations o f 5 0 , 0 0 0 and “100,000, (The motion, being duly seconded, was carried.) Mr. Perrin: I now move that it is the sense of this Joint Conference t h a t i t would b e a convenience i f Federal reserve notes i n denominations o f #500, $1,000, $5,000 and &10,000, should b e issued, Governor Strong: I second that motion. (After informal discussion the motion was carried.) (Informal discussion followed.) The Chairman: W e d i d not reduce t o definite f o r m t h e informal motion made t o refer t h e clearing matter t o the Conference o f Governors, Governor Strong: I offer a motion that t h e organization of Governors continue t o deal with the question o f clearings https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EO and t h a t i t s h o u l d n o t b e t a k e n u p b y t h i s meeting. (After informal discussion t h e motion was d u l y seconded a n d carried.) Governor McDougal: J I move thatthe procedure just out- lined b y Gevernor Strong b e followed, a n d that this body make n o direct report t o the Federal Reserve B o a r d unless some unusual condition arises o r uhless i t is o n some subject p e r t a i n i n g t o which i t would b e p e r f e c t l y p r o p e r to report, until we have first reported our findings back to our r e s p e c t i v e c o n f e r e n c e s o f Governors a n d F e d e r a l R e s e r v e Agents for consideration, the Board t o get a final report from the Conference o f Federal Reserve Agents o r the Conference o f Governors, Governor A i k e n I second t h a t motien. (The motion was duly carried.) The Chairman: M r . Martin inferms m e that t h e subject of investments, b u y i n g Government bonds, a n d s o forth, w a s deferred until Governor Strong a n d Governor McDougal h a d returned. - M r - e P e r r i n b r o u g h t t h e m b j e c t u p . G e v e r n o r Strong a n d Governor McDougal were abseht f r o m the r o o m a n d Mr. P e r r i n s u g g e s t e d t h a t i t b e d e f e r r e d u n t i l t h e y r e turned. (Extended informal discussion followed.) (No formal action was taken b y the Conference o n this subject.) (Further informal discussion followed.) Governor McDougal: I move t h a t a copy o f the minutes of this meting b e sent t e each member o f the Governors! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 Conference a n d e a c h m e m b e r o f t h e F e d e r a l R e s e r v e Agents! Conference. Governor Aiken: I second that motion. (The motion was duly carried.) The C h a i r m a h : I f there a r e n o further subjects t o come u p before t h i s Conference; h o w shall w e decide t h e question o f future c o n f e r e n c e s ? Governor Fancher: I move that t h e Joint Conference be adjourned, a n d that future joint conferences b e subject to the call o f either t h e Chairman o f the Executive C o m - mittee o f the Federal Resesve Agents' Conference, o r the Chairman o f the Executive Committee o f the Governors! Conference. (The m o t i o n t o adjourn, b e i n g d u l y seconded, ried, a n d t h e J o i n t C o n f e r e n c e w a s car- o f t h e E x e c u t i v e C o m m i t tee ofthe Federal Resefve Agents' Conference and the Executive Committee o f t h e Governors! C o n f e r e n c e , t h e r e u p o n , o'clock p. m., adjourned, subject t o call.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a t 6:50 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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