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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
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
CROSS REFERENCE I NDEX
pecretary's Minutes & Stenosraphiec Report
Governors’ C o n f e r e n c e , O c t o b e r 2 5 - 2 9 ,7921
For t h e p u r p o s e
of
conference w i l l
this index references
to
be a b b r e v i a t e d as f o l l o w s
the several
in
programs c o n s i d e r e d
by t h e
t h e c o l u m n m a r k e d "Program":
Gov.
~ P r o g r a m f o r s e p a r a t e C o n f e r e n c e of G o v e r n o r s
Bi. Board's J o i n t P r o g r a m
Bd. S. =
Supplement I - B o a r d ' s J o i n t P r o g r a m
Treas.
Supplement I I - T r e a s u r y P r o g r a m
T-F A, Supplement I I - T r e a s u r y P r o g r a m ( F i s c a l Agency )
Secretary' s
Pages in
Stenographic
Minutes
Report
Paragraphs
i n
ACCOUNTING & AUDITING
S u r v e y of P r o c e d u r e S y s t e n s
Standing Committee - Appoint~
ment of
Uniform C o s t A c c o u n t i n g
Reports
and Statistics
Agricultural L e g i s l a t i o n
American I n s t i t u t e of B a n k i n g
P a r t i c i p a t i o n of F e d e r a l R e s e r v e B a n k o f f i c e r s a n d employes i n a f f a i r s of
Bankers A c c e p t a n c e s
(a) Uniform b a s i s of discount
(>) B r o k e r s to pay c o s t of
shipment
Capital S t o c k S u b s c r i p t i o n :
banks
C e r t i f i c a t e s of Indebtedness:
Allotment on S u b s c r i p t i o n s f o r
Shipments of b e t w e e n F e d e r a l
Reserve B a n k s
Certificates under r e purchase a g r e e m e n t
Certificates f o r delivery
in o t h e r r e s e r v e c i t i e s
Handling L i b e r t y l o a n
bonds
i n same manner
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Federal Reserve Bank of St. Louis
320-337
61
61
Bill f o r r e l i e f of p e r s o n s who
s u b s c r i b e d orf bonds t h r o u g h
f a i l e d banks.
member
711, 721
t a k e n under
repurchase a g r e e n e n t s
R e t u r n to
14-60; 130-166;
3868-455; 478-9;
509-10; 556559; 646-648;
773-780
Program
Chairmen
E l e c t i o n of
E l e c t i o n of
M i
Paregraphs i n P a g e s in
Secretary's S t e n o g r a r h i c
n
u
t
e
s |
f o r next conference
3
2 5 6
,
Check C o l l e c t i o n s
Uniform method of handling
Final a d v i c e of
Re p o r t
2
3
7
-
2
3
9
payment
299-270
Checks d e p o s i t e d f o r c r e d i t of
Treasury a t e o u n t . P r a c t i c e
followed by reserve banks
|
J
o
i
n
t Cont Hengss
Goin shiprents ( s e e currency)
Requests
of
nonmembers
for
691 ~ 700
COLLECTIONS & CLEARING
Report of C o l l e c t i o n C o m m i t t e e
Meturing n o t e s , b i l l s a n d
other c o l l e c t i o n i t e m s
1
8
3
-
2
1
Finel advice of payment
214-217
Non~responsibility c l a u s e s
on B/L attached to drafts
for c o l l e c t i o n
Requirement
4
217-218
of c e r t i f i e d
check on d e l i v e r y of
drafts w i t h s e c u r i t i e s
attached
R. R. d r a f t s , e t e . U n i f o m
19-221
method of hundling
222-226
L i s b i l i t y of c o l l e c t o r
Exchange c h a r g e s
2
On d e m a n d a n d t i m e c e r t i f i c a t e s of d e p o s i t
On P r o t e s t e d c h e c k s
2
2
6
3
2
-
4
3
2
-
5
-
3
4
2
3
5
2
3
7
Transit
Uniform p r a c t i c e s in handl i n g check c o l l e c t i o n s
j G
I d e n t i f i c a t i o n symbols on
checks
2
3
‘
2
3
7
-
2
3
9
9
-
2
4
3
3
-
2
4
7
Uniform p r a c t i c e in f i l i n g
claims
Failure to g i v e
nonpayment of
Final a d v i c e of
che cks 4
2
4
reason for
checks
2
payment of :
5
7
-
2
5
9
2 5 9 - 2 7 0
Immediate c r e d i t f o r o f f i - |
cers c h e c k s
2
Par c l e a r i n g s i n 6 t h d i s trict
2
7
Removing l i m i t f r o m Fed.
Res. Exchange d r a f t s
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Federal Reserve Bank of St. Louis
7
0
1
2
-
2
9
1
7
2
-
1
9
3
0
1
9
_| Paragraphe in
Program:
Converters’
| Secretary' s
! Mi n u t e s
Credits
Board' s R e g u l a t i o n s ,
gray g o o d s , e t c .
Convertere r e c e i p t s
Re:
hides,
61
61
Cost A c c o u n t i n g ~ U n i f o r m in
Pg. t i e e e e s 4
Credit I n f o r m a t i o n
CREDIT
To p i c
Pages i n
Stenographic
Report
all
752-767
180-183
T R A N S A C T DI POLICIES
O
N NAS
Bankers A c c e p t a n c e s
Open M a r k e t
Methods t o d e v e l o p a n d
widen
Report
of S t a n d i n g Comm.
Practices a n d Regulatione.
Converters C r e d i t s
Boards r e g u l a t i o n s Re:
hides, g r a y g o o d s , e t c .
Converters R e c e i p t s
Warehouse r e c e i p t s as s e curity
Bankers A c c e p t a n c e s t a k e n
under r e p u r c h a s e a g r e e ments.
U n i f o r m b a s i s of d i s count
Brokers
to
61
pay cost
61
of s h i p m e n t
B l i g i b i l i t y Comm,
167-171
i71
Scope
Uniform P r o c e d u r e
Payment in f u l l or p a r t f o r
171-177
notes r e d i s c o u n t e d
V e r i f i c a t i o n of
bank' s b i l l s
receivable
61
61
O b j e c t i o n to t r a c i n g
Cooperation o f Comptroller
Rediscount o f n o n - n e g o t i a b l e
notes ( s u p p o r t e d by c h a t t e l
mortgages )
Rediscount
of
notes s e c u r e d by g o v e r n ments
Credit I n f o r m a t i o n
CURRENCY & CIRCULATION
Designs of p a p e r c u r r e n c y
Shipments
o f F,
R.
17
18
180
180-183
10, 39,57
117-129; 337374; 662
58
we
61
662-664
6645 a n d 6 6 8
667-668
Notes
a b s o r b i n g c o s t of
Postage on s h i p m e n t s
Charge &2. C r e d i t f o r
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Federal Reserve Bank of St. Louis
177-179
nonmember b a n k
Paragraphs
in
Secretary' s
Pages in
Stenographic
Minutes
Report
CURRENCY & CIRCULATION ( C o n t ' d)
Settlement of t h r o u g h
Gold S e t .
Fund
Uniform S t a n d a r d of s o r t i n g
currency
Report to B o a r d on F o r m 1 6 0
Telegraphic T r a n s f e r s
Detail m a t t e r
Method of Advice of
Liability f o r
Requests
of
nonmembers
Designs
672~687
672-687
691, 7 1 1 - 7 2 0
691-700
on f o r m 1 6 0
o f paper currency
Direct P o u c h i n g of mail
Discount R a t e ing
670
671-5672
for
currency a n d c o i n
Currency R e p o r t s
667
671-672 <
662
L1L7-129;
337-374
| 702-709
Principles govern~
589-620;
622-637;
645-646" and
D i s t r i b u t i o n o f C u r r e n c y - Establishnent o f c e n t r a l i z e d
c o n t r o l of
E f f i c i e n c y & E c o n a n y i n Admin.
Oru.
Re Bks:
Joint Conf.
374
aud
5 2 2 - 5 5 6Joint
; |
Conf.
E b i g i b i l i t y Committee
Scope
Uniform P r o c e d u r e
Record
167-171
ater e
Exchanges ( S e e Gold Policy)
S t a b i l i z a t i o n of
Tol~741
Exchange C h a r g e s
On demand & t i m e c t f s .
On P r o t e s t e d Checks
of dep.
234-235
235-237
Failure to g i v e r e a s o n f o r nonpayment
of c h e c k s r e t u m e d
F. R. Bank bldgs.
of
Fed.
Res.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Code
Record
297259
- self Insurance
61
687
or
Paragraphs i n |
Topic S e c r e t a r y ' s |
| Program|
Federal Res.
Exchange D r a f t s -
Removing l i m i t
from
o n
Settlement t h r o u g h G o l d
Settlement
Fund
R e
p
o
r
t
|/
Gov.
Federal R e s e r v e N o t e s - Absorbing Cost of S h i p m e n t s of
Charge a n d c r e d i t f o r
Postage
Minutes
‘
|
P a g e s in
Stenographic
;
{'
II C8
291-319
|
!
Gov.
Gov.
Gov.
Gov.
III
| j III
j
{
j
|
;
Bz}
662-664
667-668
664-665
83
LLL Be
| TIT Ba}
: 667
F i l i n g Claims f o r i n d o r s e r s Uniform p r a c t i c e
Final A d v i c e of
Gov.
at
63
243-247
| II 05
259-270
214-217
payment
Checks
Gov.
Gov.
Collections
| II Bl
FISCAL AGENCY OPERATIONS
Shipments of C e r t i f i c a t e s
of I n d e b t e d n e s s b e t w e e n
fF. A: Bks.
Certificates under repurchase a g r e e m e n t
Certificates f o r delivery
in o t h e r r e s e r v e c i t i e s
Handling L i b e r t y l o a n
bonds in same manner
War L o a n D e p o s i t Account
Absorption of F i s c a l
Agency Expenses
Fiscal Agency Expenses -
61
61
61
61
61
701
Absorp- |
701
t i o n of
Fraser,
| 511-521
S i r Drumond
I n v i t a t i o n to meet
Gold C t f s , D e s i r a b i l i t y of r e s t o r i n g some to c i r c u l a t i o n
| (90=104;337-374:374«
(379; 645-646,
GOLD POLICY
S t a b i l i z a t i n g of Exchanges
| 75, 87.
va Conf,
721-741 {Foint
, Record,
Government S a v i n g s S e c u r i t i e s 1922 p r o g r a m f o r i s s u e of
Group meetings ( s e e Independent
Conferences
of
Governors)
82
| 30, 42, 46
76, 86
| 7192-796
_(248-255;380-385;
| ( 543-545;
741-743:
and
| (Joint Conf. Record.
Harding, Gov. W. P, G. - o p e n i n g
statement of
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
| Joint Conf,
Record.
\Paragraphs in |
P a g e s
I d e n t i f i c a t i o n symbols
on c h e c k s
Independent C o n f e r e n c e s
ors.
Report
28
of Govern-
305
4 2 ,
| 76, 86
( S e e g r o u p meetings)
4 6 ,
| (248-255; 380-385;
(543-545; 7 4 1 - 7 4 3 ; nda
( Joint Conf.
Kinds &« d e n o m i n a t i o n s
to be p e i d o u t .
of
(337-358; 358-374
( 226234
MEMBER BANK RELATIONS
A n e l y z i n g member
bank operas
tions.
Return of c a p i t a l s t o c k s u b e
scriptions,
Member bank o p e r a t i o n s of
|61
61
e n a l ysis
61
Benk notes -
circul ation
of
(337-374
- O n - r e s p o n s i b i l i t y c l a u s e s of B / L
a t t a c h e d to d r a f t s f o r c o l l e c t i o n .
Officers checks ~
12} 7-218
Immediate c r e d i t
270-271
for
Open Market
Development a n d w i d e n i n g
Practices a n d r e g u l a t i o n s |
Report of S t a n d i n g Com.
61
61
61=75
{
|
OPER ATION
Personnel
& @W e l f a r e
Direct P o u c h i n g of mail
a
Pension F u n d
Securities l e f t
FR. C o d e
Self I n s u r a n c e
in
custody
o
o f F. R. B. B l d g e .
P a r t i c i p a t i o n in
A. J B. a f f e i r s
Personnel
Measured s e r v i c e
Fair d a y ' s w o r k
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Federal Reserve Bank of St. Louis
Record
currency
L i a b i l i t y of C o l l e c t o r when c h e c k
proves b a d e
National
i n
Stenographic
Secretary' s
Minutes
n
a
r
EN
A
784
69
7O2=709
70
109=710
71
72
710711
687
65
73( See 5a)! 61
( oe erea eu
61
61
61
a
Secretary' s
Pages in
Stenographic
Minutes
Report
Paragraphssin
OPERATION ( Cont' d)
Unit L a b o r c o s t s
Salary adjustment & e x t r a
compensation;
of F
future policy
R s - Bks .
Par C l e a r a n c e S y s t e m - R e c e n t d e velopments a n d s u g g e s t e d c h a n g e s
in m e t h o d s
582-589 ;
646-S61 s a n d
Joint
Par C l e a r i n g s
Past
in
6th district
due paper
Conf -Record
271-290
1744-745
Payments of n o t e s r e d i s c o u n t e d
w i t h F,. R. Bks.
171-197
Pension F u n d
709-710
Personnel A c t i v i t i e s
Report of Comm.
784
Press
75~76
Statements
Procedure
Standing Comm.
Survey of A c c o u n t i n g S y s t e m s
752-767
752-767
Purchase of U. S. bonds + Expediency of a u t h o r i z i n g u n d e r
Sec.
18
104-116;
662
Railroad d r a f t s ,
etc.
e2e~-226
Rediscount o f nonmember n o t e s
s e c u r e d by g o v e r n m e n t s
Rediscount
notes =
of n o n - n e g o t i a b l e
notes s u p p o r t e d
by
chattel m o r t g a g e s
Report
17-179
of C o l l e c t i o n C o m m i t t e e
Reports a n d S t a t i s t i c s -
183-214
Comm.
to c o n s i d e r n e e d a n d c o n ~
s o l i d a t i o n of
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Federal Reserve Bank of St. Louis
180
752-767
Paragraphs
in
Secretary' s
Minutes
OPERATIONS(
Requirements
checks
Pages in
Stenographic
Report
Cont'd)
of c e r t i f i e d
o n d e l i v e r y of
drafts
with s e c u r i t i e s or B/L attached
S a l a r y a d j u s t m e n t & E x t r a comp e n s a t i o n + F u t u r e p o l i c y of
F. R. Bks,.
T47-751
Secretary
E l e c t i o n of
Election o f f o r next c o n f e r e n c e
3
256
Securities l e f t
710+711
in c u s t o d y
S i l v e r c t f s . & Legal t e n d e r s +
P r a c t i c a b i l i t y of p u t t i n g i n t o
circulation
79-90; 337-374
Standard of s o r t i n g c u r r e n c y
670
Standard of c u r r e n c y to be a p =
plied by T r e a s u r y & F. R. Bks.
374
Telegraphic T r a n s f e r s
Detail m a t t e r s
Method of A d v i c e
of
Liability f o r
672-687
672-687
691, 711-720
V e r i f i c a t i o n of banks b i l l s r e ceived by examiner.
Objections
to
tracing
C o o p e r a t i o n of C o m p t r o l l e r
War F i n a n c e C o r p o r a t i o n Personnel f o r
61
61
639, 645
3~14
War Loan Deposit Account
61
Warehouse R e c e i p t s as s e c u r i t y
61
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
PROGRAM FOR SEPARATE CONFERENCE OF GOVERNORS
WASHINGTON --
OCTOBER 26 & 27, 1 9 2 1 .
REVISED
CREDIT TRANSACTIONS AND POLICIES
A, B a n k e r s Acceptances,
(1) O p e n Market.
(a) D i s c u s s i o n of
methods a d o p t e d by t h e r e s e r v e banks to
develop a n d widen t h e discount market.
(b) R e p o r t
of
standing committee
conditions a n d operations,
( Unfinished -
o n open b i l l
New York)
market
( U n f i n i s h e d ~ New York)
(c) Bankers acceptances practices ( San Francisco) a n d
r e g u l a t i o n s w i t h p a r t i c u l a r r e g a r d to accommo-
dation of commerce a n d t h e open market. ( Unfinished -~ New York)
Converters'
Credits.
(
N
e
(a) Should hides, g r a y goods, grain, etc.
of t a n n i n g ,
s i d e r e d as
Regulations
amended to
w York)
in process
b l e a c h i n g , m i l l i n g , e t c . be c o n r e a d i l y m a r k e t a b l e s t a p l e s u n d e r Board' s
a n d if not s h o u l d t h e R e g u l a t i o n s be
i n c l u d e them.
(b) Should t h e n e g o t i a b l e r e c e i p t s of c o n v e r t e r s -- tanners,
bleachers,
millers,
etc.
~
conveying s e c u r i t y t i t l e ,
be c o n s i d e r e d t h e e q u i v a l e n t s
or t e r m i n a l
of
independent warehouse
receipts’
Warehouse R e c e i p t s
ae S e c u r i t y .
Should F e d e r a l R e s e r v e Board' s r u l i n g , S e p t e m b e r 1918,
B u l l e t i n p a g e 862, be m o d i f i e d in v i e w of t h e g r o w i n g
p r a c t i c e in t h e 1 2 t h D i s t r i c t f o r c o o p e r a t i v e a s s o c i a ~
tions, p a c k i n g a n d m i l l i n g companies, e t c . , w h i c h owm
their own warehouses,
t o f o r m separate corporations
the s t o c k of which is owned o u t r i g h t by s u c h a s s o c i a tions, p a c k i n g a n d m i l l i n g companies, e t c . ( S a n F r a n c i s c o )
(4) U n i f o r m p r a c t i c e in h a n d l i n g b a n k e r s a c c e p t a n c e s t a k e n f r o m
brokers under r e p u r c h a s e agreements.
Recommendation:
I
t is
( C h i c a g o )
suggested
(a) That a u n i f o r m b a s i s of digcount be used by a l l Federal
r e s e r v e banks, p r e f e r a b l y t h e p r a c t i c e of d i s c o u n t ~
ing t h e b i l l to i t s m a t u r i t y a n d r e b a t i n g f o r t h e
unexpired p e r i o d when t a k e n up by t h e b r o k e r .
(bo) That no shipment of b i l l e f r o m brokers be handled u n l e s e
the b r o k e r s a r e w i l l i n g to
insurance,
i n a s m u c h ac
d i s p r o p o r t i o n a t e to
of t h i s c h a r a c t e r .
p a y t h e c o s t of s h i p m e n t a n d
the responsibility for loss i s
t h e benefit derived f r o m operations
B, E l i g i b i l i t y C o m m i t t e e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(1) S c o p e . D e f i n i t i o n d e s i r a b l e as t h e r e seems to
in t h e i d e a s of t h e F e d e r a l r e s e r v e b a n k s as
of t h i s committee.
(
S
a
be some v a r i a n c e
to t h e f u n c t i o n s
n Francisco)
(2) U n i f o r m procedure of e l i g i b i l i t y committeesof t h e r e s p e c t i v e
banks in r e p o r t i n g c o n c l u s i o n s to e a c h other. ( C l e v e l a n d )
I. CREDIT TRANSACTIONS AND POLICIES
Ce . A c c e p t a n c e by member b a n k s of payments in f u l l or in p a r t of n o t e s
r e d i s c o u n t e d w i t h t h e F e d e r e ] r e s e r v e bank.
I n v i e w of g r o w i n g
p r a c t i c e among banks
i n certain sections
to
accept
payments
on
customers' n o t e s w h i c h h a v e b e e n r e d i s c o u n t e d or p l e d g e d w i t h t h e
Federal r e s e r v e bank, s h o u l d n o t n o t i c e s be s e n t o u t by F e d e r a l
reserve b a n k s to makers of s u c h n o t e s t h a t payment s h o u l d be made
to t h e h o l d e r t h e r e o f as a p r o t e c t i o n to t h e r e s e r v e b a n k in t h e
instances of f a i l e d banks,
(
S
a
n Francisco)
Verification of banks‘ b i l l s r e c e i v a b l e by Examiner ( S t . Louis)
(1) What objection is there to t h e Examiner t r a c i n g
and v e r i f y i n g a l l s u c h a s s e t s of
a n y consequence.
(2) C a n cooperation of t h e Comptroller be secured?
Rediscounting non=negotiable notes.
Should n o t measures
(
S
a
n Francisco)
be a d o p t e d f o r t h e p r o t e c t i o n of
Federal r e s e r v e banks a g a i n s t e q u i t i e s which may e x i s t between
borrower a n d l e n d e r , w h e n r e d i s c o u n t i n g n o t e s s u p p o r t e d by
chattel m o r t g a g e s c o n t a i n i n g p r o v i s i o n s d e s t r o y i n g n e g o t i a b i l i t y .
Shovld t h e F e d e r a l r e s e r v e b a n k s d i s c o n t i n u e r e d i s c o u n t i n g f o r
member b e n k s n o t e s of nonmember b a n k s s e c u r e d by Government
obligations.
|
( U n f i n i s h e d - suggested by F. R.®.
of A t l a n t a f o r l a s t c o n f e r e n c e
and p a s s e d f o r c o n s i d e r a t i o n to
II.
next conference)
G. S ee Supplement 3 f o r a d d e d t o p i c .
COLLECTIONS AND CLEARING
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A» R e p o r t of
C o l l e c t i o n Committee.
B. M a t u r i n g notes,
b i l l s a n d o t h e r c o l l e c t i o n items.
(1) F i n a l a d v i c e of
payment
have n o t b e e n r e c e i v e d .
of
items f o r t h i c h a v a i l a b l e f u n d s
V h e n funds which a r e immediately
a v a i l a b l e h a v e b e e n r e c e i v e d in
some F e d e r a l
been p a i d ,
payment
r e s e r v e banks a d v i s e t h a t
but t h a t c r e d i t will
of t h e f u n d s r e c e i v e d .
of a c o l l e c t i o n ,
t h e c o l l e c t i o n has
be made u p o n f i n a l payment
I n such cases definite advice
final payment s h o u l d a l s o be s e n t ,
of
( S a n Francisco)
(2) A d v i s a b i l i t y of Federal r e s e r v e banks p l a c i n g t h e non-
r e s p o n s i b i l i t y c l a u s e u p o n b i l l s of l a d i n g a t t a c h e d to
d r a f t s h a n d l e d f o r c o l l e c t i o n . D e s i r a b i l i t y of u n i f o r m
procedure by a l l r e s e r v e banks,
(3) R e q u i r e m e n t
of
(
S
a
n Francisco)
c e r t i f i e d c h e c k on d e l i v e r y of
s e c u r i t i e s or b i l l s of l a d i n g attached.
drafts
with
( Phil adel phia)
i.
COLLECTIONS AND CLEARING
B. M a t u r i n g n o t e s ,
b i l l s a n d o t h e r c o l l e c t i o n i t e m s continued.
(4) U n i f o r m method of h a n d l i n g r a i l r o a d d r a f t s , i n s u r a n c e c o m p a n y
drafts, p a y a b l e at or t h r o u g h banks, a l s o c e r t i f i c a t e s of
(
deposit.
C
l
e
v
e
l
a
n
d
)
(5) L i a b i l i t y of c o l l e c t o r of t i m e i t e m s when c h e c k or o t h e r
evidence of payment is a c c e p t e d w h i c h p r o v e s to be bad. ( B o s t o n )
(6) Exchange Charges:
T h e r e should be uniform p r a c t i c e among
Federal r e s e r v e b a n k s
in
t h e f o l l o w i n g regards:
(a) D e d u c t i o n of exchange on demand c e r t i f i c a t e s of
deposit a n d t i m e c e r t i f i c a t e s
for c o l l e c t i o n at m a t u r i t y .
of d e p o s i t
s ent
(b) Deduction of exchange on. checks p r o t e s t e d and
r e t u r n e d f o r non-payment
when r e - f o r w a r d e d f o r
collection and paid by drawee bank.
( C h i c a g o )
Cc. T r a n s i t .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(1) D e s i r a b i l i t y of t h e F e d e r a l r e s e r v e b a n k s e s t a b l i s h i n g a
uniform
p r a c t i c e i n h a n d l i n g c h e c k c o l l e c t i o n s , w i t h t h e a i m of m a k i n g
t h e m e t h o d s of h a n d l i n g c h e c k s f o r member b a n k s , s 0 f a r as is
reasonably possible,
the b a n k s
as simple as were t h e s e t r a n s a c t i o n s of
w i t h t h e i r c i t y correspondents.
(2) I d e n t i f i c a t i o n s y m b o l s
mended t h a t a
(
on member b a n k s ' c h e c k s .
reserve d i s t r i c t
N
I
e
t is
i d e n t i f i c a t i o n symbol
w York)
recombe
placed on e a c h member bank' s c h e c k s in c o n j u n c t i o n w i t h t h e
A. B. A. t r a n s i t mambers f o r t h e p u r p o s e of s i m p l i f y i n g
the process of s o r t i n g and routing checks by d i s t r i c t s , t h e r e b y
i n c r e a s i n g t h e number
This symbol
to
of
checks s e n t d i r e c t
by member b a n k s .
be p r i n t e d on c h e c k s as f o l l o w s :
City N a t i o n a l
Bank
Bridgeport, Conn.
5
1 -
e
e
29
(
N
e
w York)
(3) D e s i r a b i l i t y of u n i f o r m p r a c t i c e in f i l i n g claims on behalf
of member banks
by F e d e r a l r e s e r v e b a n k s a n d t h e i r b r a n c h e s
of t r a n s i t i t e m s i n v o l v e d in bank f a i l u r e s .
( Chicago & St. Louis)
(4) L e t t e r s to banks c a l l i n g a t t e n t i o n to f a i l u r e to g i v e r e a s o n f o r
non-payment
tinued?
of c h e c k s r e t u r n e d .
(
S
G a n t h i s p r a c t i c e be d i s c o n -
t
. Louis)
(5) Check C o l l e c t i o n s - Final a d v i c e of payment of items which have
p r e v i o u s l y b e e n a d v i s e d as o u t s t a n d i n g .
( S a n Francisco)
II.
COLLECTIONS AND CLEARING
C. T r a n s i t ( Continued)
(6) I m m e d i a t e c r e d i t f o r o f f i c e r s ' c h e c k s i s s u e d by F e d e r a l r e s e r v e
banks.
I t is recommended t h a t i m m e d i a t e c r e d i t be g i v e n at
all F e d e r a l r e s e r v e b a n k e a n d b r a n c h e s f o r a l l c h e c k s i s s u e d by
another F e d e r a l r e s e r v e b a n k or branch; a n d t h a t t h e r e c e i v i n g
bank be p e r m i t t e d to d e d u c t s u c h i t e m s f r o m i t s c r e d i t s to t h e
i s s u i n g bank, t h e r e b y r e c e i v i n g i m m e d i a t e payment.
I t is t h e
object of t h i e r e c o m m e n d a t i o n to p l a c e c h e c k e of t h e s e v e r a l
Federal r e s e r v e b a n k s on t h e same b a s i s , s o f a r ae a v a i l a b i l i t y
is c o n c e r n e d ,
a s transfer drafts
member banks.
;
(7) P a r c l e a m i n g s
in
(
N
by
w York)
e
t h e S i x t h D i s t r i c t ~- I t e p r e s e n t s t a t u s ,
(
legal and otherwise.
A
(8) R e m o v i n g t h e l i m i t f r o m F e d e r a l
III.
a n d exchange d r a f t s i s s u e d
t
l
a
n
t
a
)
( Richmond)
Reserve Bxchange Brafts.
CURRENCY AND CIRCULATION
&. D e s i g n s
of
paper currency.
Woul d i t not
be
desirable
ac a
measure
to p r e v e n t c o u n t e r f e i t i n g a n d r a i s i n g ; to a d o p t a c o m p r e h e n s i v e
scheme of d e s i g n s c l a s s i f i e d as to k i n d s of i s s u e a n d as to
( New York)
denominations?
B. S h i p m e n t s of Federal Reserve Notes.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(1) T h e s h i p p i n g F e d e r a l r e s e r v e b a n k s h o u l d a b s o r b t h e
cost of s h i p m e n t s of “ o t h e r ” f i t as well as u n f i t
Federal r e s e r v e noteg, e x c e p t t h e c o s t of i n s u r a n c e .
( San Francisco, C l e v e l a n d
& Richmond)
(2) Method of a c c o u n t i n g f o r p o s t a g e on s h i p m e n t s of F e d e r a l
reserve n o t e s made d i r e c t to b a n k of i s s u e . S h o u l d
be uniform, S i m p l e s t p l a n a p p e a r s to be to i n c l u d e
B y t h i s method
poetage in t h e w i r e a d v i c e of shipment.
a
t
t
e
n t i o n is
only o n e e n t r y is made a n d no f u r t h e r
n e c e s e a r y on
t h e part
of
t h e f o r w a r d i n g banks,
( S t .
Louis)
(3) S h o u l d s h i p m e n t f r o m o n e F e d é r a l r e s e r v e b a n k to a n o t h e r
be c h a r g e d or c r e d i t e d u n t i l a c t u a l l y r e c e i v e d . ( B o s t o n )
(4) Cannot s e t t l e m e n t of shipments of o t h e r Federal r e s e r v e
notes be h a n d l e d t h r o u g h t h e F e d e r a l R e s e r v e B o a r d
in a manner s i m i l a r to t h e p r e s e n t d a i l y s e t t l e m e n t
of c o l l e c t e d f u n d e t h r o u g h t h e G o l d S e t t l e m e n t
Fund.
Submitted t h i r would g r e a t l y r e d u c e t h e number of
( S a n Francisco)
telegrams o v e r t h e p r i v a t e w i r e system.
CURRENCY AND CIRCULATION.
C. S t a n d a r d of s o r t i n g c u r r e n c y s h o u l d be uniform.
De
( S a n Francisco)
N e c e s s i t y of banks r e p o r t i n g to B o a r d on f o r m 160, d e t a i l of m o n t h l y
c u r r e n c y r e c e i p t s a n d d i s b u r s e m e n t s as to kinds, d e n o m i n a t i o n s ,
( Cleveland)
and c o n d i t i o n s .
E. T e l e g r a p h i c t r a n s f e r s :
(1) L i m i t a t i o n on d e t a i l matter.
( R i c h m o n d )
(2) P r o c e d u r e t h r o u g h o u t s y s t e m s h o u l d be u n i f o m r e g a r d i n g
i n c l u s i o n or o m i s s i o n of d e t a i l s in c o n n e c t i o n w i t h w i r e
t r a n s f e r s o v e r t h e p r i v a t e wire.
( S a n Francisco)
(3) F e d e r a l r e s e r v e bank l i a b i l i t y f o r t e l e g r a p h i c
.
s
r
e
f
s
n
(aSan Francisco)
r
t
F. S h o u l d t h e r e s o l u t i o n a d o p t e d at
t h e April Conference,
i n refer-
ence to r e q u e s t s of non-member b a n k s f o r c u r r e n c y a n d c o i n
service, a c c o m p a n i e d by d r a f t s on c i t y c o r r e s p o n d e n t s , be
reconsidered?
(
P h i
l
a
d
e
l
p
h i
a
)
IV.
G O L D POLICY
A. D i s c u s s i o n of p r a c t i c a l s t e p s t o w a r d s t h e r e s t o r a t i o n of
the Gold Standard,
(
N
e
w York)
V. FI SCAL AGENCY OPERATIONS.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A. S h i p m e n t
o f certificates
reserve banks.
(
o f indebtedness
C
h
i
between Federal
c
a
g
o
)
(1) R e q u e s t f o r o p i n i o n as to d e s i r a b i l i t y of
extending c e r t i f i c a t e s h i p m e n t s t h r o u g h
Treasury Department
t o certificates
held
under repurchase agreement f o r brokers.
(2) R e q u e s t f o r o p i n i o n as to d e s i r a b i l i t y of
extending c e r t i f i c a t e shipments t h r o u g h
T r e a s u r y D e p a r t m e n t to c e r t i f i c a t e s
tendered F i s c a l Agency Department f o r
d e l i v e r y in o t h e r r e s e r v e c i t i e s .
(3) R e q u e s t f o r o p i n i o n as to d e s i r a b i l i t y of
handling L i b e r t y L o a n bonds in t h e same
manner.
B, Wa r L o a n D e p o s i t A c c o u n t , I n d i s c r i m i n a t e p a y m e n t by c r e d i t f o r
s u b s c r i p t i o n s f o r T r e a s u r y c e r t i f i c a t e s of i n d e b t e d n e s s i s
r e s u l t i n g i n a c o n t i n u a n c e of i n f l a t i o n of d e p o s i t s i n , L a r g e
c i t i e s , Wo u l d it n o t be w e l l e i t h e r to r a i s e t h e i n t e r e s t o n
these d e p o s i t s
or l i m i t t h e p e r c e n t a g e of a s u b s c r i p t i o n w h i c h
may be paid by credit?
(
S
a
n Francisco)
C. A b s o r p t i o n of f i s c a l a g e n c y c o s t s .
I n v i e w of t h e d e c r e a s i n g
earnings of some of t h e F e d e r a l r e s e r v e banks, it a p p e a r s to be
d e s i r a b l e to d i s c u s s t h i s q u e s t i o n a g a i n in l i g h t of t h a t
situation.
(
S
a
n Francisco)
VI.
O P E R A T I ON
A. P e r s o n n e l
a n d Welfare.
( Re p o r t
of Committee on P e r s o n n e l A c t i v i t i e s )
B. D i r e c t p o u c h i n g of mail in F e d e r a l r e s e r v e b a n k s , Re po r t by
Federal R e s e r v e B a n k of New York to w h i c h t h e m a t t e r was r e f e r r e d
at l a s t g o v e r n o r s ’ c o n f e r e n c e , on p r o g r e s s made t o w a r d s s e c u r i n g
universal a d o p t i o n of t h e p o u c h i n g p r i v i l e g e i d e a by r e s e r v e banks.
( New York)
Pension Fund.
D e s i r a b i l i t y of u r g i n g l e g i s l a t i o n at
t h i s time.
( New York)
Securities l e f t
i n custody.
Re po r t
reserve b a n k s r e q u e s t e d at
Federal r e s e r v e code.
desired,
by G o v e r n o r S t r o n g on v i e w s
l a s t governors’
W o r ds
(
used are difficult
S
of
conference.
t
to s e n d .
Revision
. Louis)
S e l f - i n s u r a n c e of F e d e r a l r e s e r v e b a n k b u i l d i n g s .
I t is recommended
that a committee be a p p o i n t e d to i n v e s t i g a t e t h e a d v i s a b i l i t y of
reserve b a n k s c a r r y i n g t h e i r own f i r e i n s u r a n c e on t h e b u i l d i n g s
owned by them.
(
N
e
w York)
P a r t i c i p a t i o n of F e d e r a l r e s e r v e b a n k o f f i c e r s a n d employees in
American I n s t i t u t e of B a n k i n g a f f a i r s .
A n y a t t e m p t s to c o n t r o l
in a n y m e a s u r e t h e a c t i v i t i e s
;
(
of
t h e i n s t i t u t e s h o u l d be a v o i d e d .
N
e
w York)
Personnel: I n v e s t i g a t i o n by e a c h b a n k a n d e x c h a n g e of
gested w i t h a v i e w to d e t e r m i n i n g :
(1)
views s u g -
T o what e x t e n t s h o u l d m e a s u r e d s e r v i c e a n d payment
results be introduced?
(
N e
w York)
(2) What c o n s t i t u t e s a f a i r day' s work? ( New York)
(3) H e w s h a l l u n i t l a b o r c o s t s be a s c e r t a i n e d a n d
controlled?
(
N
e
w York)
J. F u t u r e p o l i c y of F e d e r a l r e s e r v e b a n k s as
and e x t r a compensation.
(
C l
e
v
e
by
to s a l a r y a d j u s t m e n t s
l
a
n
d
)
VII, ACCOUNTING AND AUDITING
AS S
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
u
r
v
e y of t h e a c c o u n t i n g p r o c e d u r e s y s t e m s in
the several
Federal r e s e r v e banks. D i s c u s s i o n of r e p o r t p r e s e n t e d
by F e d e r a l R e s e r v e B a n k of New York at l a s t g o v e r n o r s '
conference,
S t a n d i n g c o m m i t t e e on t h e a c c o u n t i n g p r o c e d u r e b e t w e e n
Federal r e s e r v e banks - Appointment of
( Cleveland)
a r i s i n g between Federal r e s e r v e banks.
( N e w York)
It is recommended t h a t a s t a n d i n g c o m m i t t e e be a p p o i n t e d by
the c o n f e r e n c e w i t h power a n d a u t h o r i t y to s t a n d a r d i z e
accounting forms a n d e x i s t i n g a c c o u n t i n g procedures, a n d
to
e s t a b l i s h s u c h n e w a c c o u n t i n g p r o c e d u r e s as may be n e c e s s a r y
f r o m t i m e to t i m e in h a n d l i n g i n t e r ~ d i s t r i c t t r a n s a c t i o n s
id V I I .
ACCOUNTING AND AUDITING
C. U n i f o r m c o s t a c c o u n t i n g in F e d e r a l r e s e r v e b a n k s , A p p o i n t =
ment of c o m m i t t e e f o r s t u d y a n d r e v i s i o n of curren*%,
expense r e p o r t s to permit of comparison w i t h r e s p e c t to
unit c o s t s .
(
N
e
w York)
January s u g g e s t e d as e f f e c t i v e d a t e f o r i n a u g u r a t i o n of
u n i f o r m c o s t a c c o u n t i n g system.
D. R e p o r t s
and Statistics -
(
Appointment
C
h
of a
i
c
a
committee
g
o )
to
consider t h e n e c e s s i t y of a n d c o n s o l i d a t i o n of t h e
various r e p o r t s a n d s t a t i s t i c s f u r n i s h e d t h e F e d e r a l
Reserve Board and Treasury Department.
VIII.
(
S
a
n Francisco)
MEMBER BANK RELATIONS
A. D i s c u s s i o n of methods of a n a l y z i n g member bank o p e r a t i o n s in order
to s e c u r e a c l o s e r knowledge of s u c h operations. ( N e w York)
3. R e t u r n of c a p i t a l s t o c k s u b s c r i p t i o n to member banks.
I n v i e w of
the d e c r e a s e in t h e e a r n i n g s of t h e F e d e r a l r e s e r v e banks, i t is
Suggested t h a t t h e p r e s e n t w o u l d be an o p p o r t u n e t i m e to r e t u r n
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
to member banks §100,000,000.
of capital stock, which,
it
is
submitted, w i l l remove in f u t u r e d i s c u s s i o n s w i t h member banks
the q u e s t i o n of p a r t i c i p a t i o n in e a r n i n g s or n o n - r e c e i p t of
return on t h e investment.
(
S
a
n Francisco)
X-3215a
PROGRAM FOR
CONFERENCES WITH GOVERNORS AND FEDERAL RESERVE AGENTS
OCTOBER 25-28, 1 9 2 1
Tuesday,
O c t o b e r 25th:
J o i n t C o n f e r e n c e of F e d e r a l R e s e r v e Board,
10:00 A. M. -
a n d Governors
Agents
of
Federal
Federal Reserve
R e s e r v e Banks,
i n Asserbly
N a t i o n a l M e t r o p o l i t a n Bank B u i l d i n g .
Room,
SUBJECTS: ( 1) Efficiency a n d economy in administration of Federal Reserve
Banks.
(2) Recent Developments in t h e par c l e a r a n c e s y s t e m a n d suggested c h a n g e s in methods.
(3) P r i n c i p l e s g o v e r n i n g t h e d i s c o u n t r a t e .
8:00 P. M. -
Wednesday,
D i n n e r at
N e t r o p o l i t a n Club.
O c t o b e r 26th:
Separate C o n f e r e n c e s
Federal
Reserve Agents
will
meet
at
1 0 : 00
Federal R e s e r v e B o a r d ' s A s s e r b l y Roor,
National Met r o p o l i t a n Bank B u i l d i n g .
Governors w i l l meet at
by t h e r .
A. M. i n t h e
7 t h Floor,
t i m e a n d p l a c e to
be a r r a n g e d
l i s t of t o p i c s .
Each b o d y w i l l c o n s i d e r i t s own p r e p a r e d
Thursday,
O c t o b e r 27th;
Separate C o n f e r e n c e s C o n t i n u e d :
2:30 P.
M. -
T h e Federal
Reserve Board will
Reserve A g e n t s
Friday,
in
reet
w i t h t h e Federal
t h e A s s e r b l y Room.
O c t o b e r 28th:
1 0 : 0 0 A.
M. -
Federal
Reserve Board will
at p l a c e to
2:30 P.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M. ~
meet
w i t h t h e Govemors
be announced.
J o i n t C o n f e r e n c e of F e d e r a l R e s e r v e B o a r d w i t h F e d e r a l
Reserve A g e n t s a n d G o v e r n o r s .
SUPPLEMENT I.
SUPPLEMENTARY L I S T O F TOPICS FOR DISCUSSION AND
CONSIDERATION AT JOINT CONFERENCE WITH GOVERNORS AND FEDERAL RESERVE AGENTS
OCTOBER 25-28, 1921.
These t o p i c s
Federal R e s e r v e Agents
may e l e c t , T h e y w i l l
Federal R e s e r v e Agents
by t h e F e d e r a l R e s e r v e
a r e to
be c o n s i d e r e d s e p a r a t e l y
by t h e G o v e r n o r s
and
on Wednesday or Thursday, O c t o b e r 26 a n d 27, as t h e y
be d i s c u s s e d by t h e F e d e r a l R e s e r v e B o a r d a n d t h e
at t h e i r c o n f e r e n c e on T h u r s d a y a f t e r n o o n , O c t o b e r 27,
B o a r d a n d t h e Govemors on F r i d a y morning, O c t o b e r 28,
and will be d i s c u s s e d f i n a l l y on F r i d a y afternoon, October 28, at t h e j o i n t
conference of t h e F e d e r a l R e s e r v e B o a r d w i t h t h e F e d e r a l R e s e r v e Agents an
Governors,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(1) P r a c t i c a b i l i t y of p u t t i n g i n t o c i r c u l a t i o n t h e s i l v e r
c e r t i f i c a t e s a n d l e g a l t e n d e r notes n o w h e l d by Federal
reserve banks
basis,
s o as
to
put t h e r e s e r v e s e n t i r e l y o n a
(2) D e s i r a b i l i t y of r e s t o r i n g s o r e g o l d c e r t i f i c a t e s
c i r c u l a t i o n by h a v i n g F e d e r a l
r e s e r v e banks
gold
to
pay t h e m out,
(3) E x p e d i e n c y of a u t h o r i z i n g F e d e r a l r e s e r v e banks to
purchase in e a c h c a l e n d a r y e a r t h e maximum amount p e r m i t t e d
under S e c t i o n 18 of t h e Federal Reserve Act ($25,000,000)
of U n i t e d S t a t e s bonds e l i g i b l e as s e c u r i t y f o r bank n o t e
circulation.
SUPPLEMENT I i .
TOPICS.
SUGGESTED BY UNDER, SECRETARY OF THE TREASURY GILBERT
(1) F u r t h e r d i s c u s s i o n of t h e n e w designs f o r paper currency,
with p a r t i c u l a r r e f e r e n c e to
r e d u c t i o n in s i z e a n d t h e n e w models w h i c h h a v e
been s e n t
Federal
out
to
(2)
t h e several
r e s e r v e banks.
T h e c i r c u l a t i o n of n a t i o n a l
bank notes,
with particular
r e f e r e n c e to t h e a s s o r t m e n t o f u n f i t n o t e s a n d t h e p a y m e n t o f f i t n o t e s by
Federal r e s e r v e b a n k s ,
T h i s q u e s t i o n h a s a l r e a d y b e e n s u g g e s t e d by my
l e t t e r to y o u of S e p t e m b e r 22 a n d is
ernors,
+
t i o n at
t h e conference,
h a v i n g t h e c o n s i d e r a t i o n of t h e Gov-~
suggests a broader q u e s t i o n which s h o u l d a l s o have consideranamely,
a s ta
what g e n e r a l
p o l i c y s h o u l d be p u r s u e d
‘by t h e Treasury a n d t h e Federal Reserve S y s t e m as to t h e c o n t i n u e d c i r c u l a ~
t i o n of n a t i o n a l b a n k n o t e s , w i t h p a r t i c u l a r r e f e r e n c e to t h e q u e s t i o n
whether a n y a c t i o n s h o u l d be t a k e n , e i t h e r t h r o u g h n e w l e g i s l a t i o n or
t h r o u g h t h e c u r r e n c y p o l i c y of
retirement
t h e Federal
r e s e r v e banks,
t o encourage t h e
of n a t i o n a l b a n k n o t e s f r o m c i r c u l a t i o n ,
(3) T h e standard of currency to be applied by t h e Treasury and
the F e d e r a l r e s e r v e b a n k s , w i t h p a r t i c u l a r r e f e r e n c e to U n i t e d S t a t e s p a p e r
currency, F e d e r a l r e s e r v e b a n k n o t e s a n d n a t i o n a l b a n k n o t e s ,
T h e appropri-
ation f o r d i s t i n c t i v e paper a n d f o r engraving a n d p r i n t i n g U n i t e d S t a t e s
paper c u r r e n c y a n d bank. notes is l i m i t e d , a n d t h e r e w i l l be d a n g e r of a dee
f i c i e n c y t o w a r d t h e e n d of t h e y e a r i f t o o h i g h a s t a n d a r d is a p p l i e d at
the present time.
(4) E s t a b l i s h m e n t of a c e n t r a l i z e d c o n t r o l of t h e d i s t r i b u t i o n
of c u r r é n e y t h r o u g h r e p r e s e n t a t i v e s
Board in washington.
and t h e a c t u a l
I
of
t h e Treasury a n d t h e Federal
Reserve
n o r d e r t h a t t h e s u p p l y of c u r r e n c y may be c o n s e r v e d
c i r c u l a t i o n requirements
o f t h e several
R e s e r v e D i s t r i c t s met,
it is importiant to s u p e r v i s e t h e i g s u e a n d d i s t r i b u t i o n of n e w c u r r e n c y t h r o u g h
some c e n t r a l o r g a n i z a t i o n in W a s h i n g t o n w h i c h w i l l c o n s t a n t l y k e e p in t o u c h
with t h e c u r r e n c y demends of t h e c o u n t r y a n d t h e s u p p l i e s of c u r r e n c y on hand,
in r e s e r v e or in p r o s p e c t a n d s e e t o it t h a t a p r o p e r l y c o o r d i n a t e d c u r r e n c y
program is c a r r i e d o u t .
(5)
An understanding s h o u l d be reached as to what kinds of c u r r e n c y
should be p a i d o u t , a n d in what d e n a n i n a t i o n s .
T hi s i n v o l v e s , among o t h e r
things, t h e q u e s t i o n s as to t h e c i r c u l a t i o n of F e d e r a l r e s e r v e b a n k n o t e s a n d
s i l v e r c e r t i f i c a t e s s u g g e s t e d in my l e t t e r of September 22, a n d p e r h a p s f u r t h e r
questions as to t h e c i r c u l a t i o n of U n i t e d S t a t e s n o t e s a n d g o l d c e r t i f i c a t e s in
the h i g h e r d e n o m i n a t i o n s .
FISCAL AGENCY. MATTERS
(1) T h e q u e s t i o n w h e t h e r f i s e a l a g e n c y e x p e n s e s w i l l c o n t i n u e to
be a b s o r b e d by t h e F e d e r a l r e s e r v e b a n k s on t h e p r e s e n t b a s i s a f t e r t h e e n d
of t h e c u r r e n t f i s c a l y e a r , s h o u l d h a v e c o n s i d e r a t i o n by t h e c o n f e r e n c e .
Ev e n
this y e a r t h e T r e a s u r y h a s not c a l l e d on t h e F e d e r a l r e s e r v e banks to a b s o r b
all f i s c a l a g e n c y e x p e n s e s , i n a s m u c h as it makes r e i m b u r s e m e n t f o r e x p e n s e s
r e l a t e d to n e w i s s u e s of s e c u r i t i e s a n d f o r c e r t a i n o t h e r s p e c i f i e d items.
The T r e a s u r y ' s e s t i m a t e s f o r next y e a r ' s budget do not c o v e r t h e reimbursement
of F e d e r a l r e s e r v e banks f o r g e n e r a l f i s c a l a g e n c y e x p e n s e s , t h o u g h it is e x pected t h a t r e i m b u r s e m e n t w i l l c o n t i n u e to be made o u t of t h e e x t e n d e d a p »
p r o p r i a t i o n f o r Expensesof L o a n s f o r e x p e n s e s r e l a t e d to n e w i s s u e s on sube t a n t i a l l y t h e same b a s i s
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
as
d u r i n g t h e current year.
(2) T h e 1 9 2 2 p r o g r a m f o r t h e i s s u e of Government S a v i n g s s e c u r e
i t i e s s h o u l d h a v e - s o m e c o n s i d e r a t i o n by t h e G o v e r n o r s c o n f e r e n c e ,
T h e
Treasury p l a n s
to
discontinue t h e existing Thrift
Stamps
a n d War-Savings
Stamps, b u t to i s s u e l a r g e r d e n o m i n a t i o n s e c u r i t i e s in s u b s t a n t i a l l y t h e
f o r m of t h e p r e s e n t T r e a s u r y S a v i n g s c e r t i f i c a t e s . S e v e r a l i m p o r t a n t c h a n g e s
will be made in t h e f o r m a n d terms of t h e c e r t i f i c a t e s , a n d it is e x p e c t e d
t h e movement
will
master G e n e r a l ,
depend l a r g e l y o n the cooperation received f r o m t h e Poste
t h o u g h t h e T r e a s u r y w i l l p r o b a b l y w i s h to c o n t i n u e ,
through t h e f i r s t h a l f of t h e c a l e n d a r year 1922,
i z a t i o n s n o w m a i n t a i n e d at
(3) I
allotment
at
least
t h e s k e l e t o n s a v i n g s organ-
t h e F e d e r a l r e s e r v e banks.
s h o u l d l i k e to d i s c u s s b r i e f l y t h e q u e s t i o n of methods of
o n subscriptions
f o r Treasury notes
a n d Treasury c e r t i f i c a t e s ,
with
particular r e f e r e n c e to t h e q u e s t i o n whether it w i l l be f e a s i b l e to a u t h o r i z e
allotments in f u l l on small s u b s c r i p t i o n s . T hi s is a q u e s t i o n which has been
c o n s i d e r e d f r o m t i m e to
t i m e in t e l e g r a m s a n d c o r r e s p o n d e n c e b e t w e e n t h e T r e a s u r y
and t h e Federal r e s e r v e banks,
for c r e d i t
a n d w i t h which t h e Governors a r e a l r e a d y f a m i l i a r .
P r a c t i c e f o l l o w e d by t h e F e d e r a l r e s e r v e b a n k s u p o n d e p o s i t s of c h e c k s
to t h e T r e a s u r e r ' s a c c o u n t w h e n t h e c h e c k s a r e on o u t ~ o f - t o w n a c c o u n t s
and a r e not s o r t e d b e f o r e d e p o s i t in accordance w i t h t h e time schedules in e f f e c t
at t h e F e d e r a l
r e s e r v e bank,
I
t i s important
f o r t h e T r e a s u r y to
know,
for
example, whether t h e Federal r e s e r v e banks w i t h h o l d c r e d i t in t h e T r e a s u r e r ' s
account a n d i s s u e no c e r t i f i c a t e of d e p o s i t u n t i l t h e l a s t i t e m among t h e c h e c k s
deposited is c o l l e c t e d ,
c e r t i f i c a t e of d e p o s i t
It would be helpful,
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Federal Reserve Bank of St. Louis
or it
as
is t h e p r a c t i c e to average t h e time a n d i s s u e a
af t h e a v e r a g e c o l l e c t i o n d a t e f o r t h e i t e m s d e p o s i t e d ,
s o f a r as possible,
to have a u n i f o r m p o l i c y adopted.
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Federal Reserve Bank of St. Louis
SUPPLEMENT I II
of
PROGRAM FOR SEPARATE CONFERENCE O F GOVERNORS
WASHINGTON = October 26 & 27, 1 9 2 1
Furnishing C r e d i t I n f o r m a t i o n to Member Banks.
( New York)
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Federal Reserve Bank of St. Louis
Secretary's Minutes
GO VE R NORS
C O N F E R E N C E
October 25 = 29, 1 9 2 1
a
Washington,
D. C.-
In v i e w of t h e f a c t t h a t t h e t o p i c s c o n s i d e r e d by t h e G o v e r n o r s
were c o n t a i n e d on d i f f e r e n t
minutes w i l l
Program,
or s u p p l e m e n t a r y p r o g r a m s ,
be u n d e r s t o o d to r e l a t e to t o p i c s
unless otherwise stated.
r e f e r e n c e in
on t h e Governors’
T h e o t h e r programs w i l l
Separate
be r e f e r r e d to
as.
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Federal Reserve Bank of St. Louis
Bosrd's J n i n t P r o g r a m
Supplement No. I - Board' s J o i n t P r o g r a m
Supplement
No.
Supplement Ne.
I I -
these
Treasury Program
II - Treasury P r e g r a m ( F i s c a l Agency)
GOVE RNORS* C O N F E R E N C E
October 25 - 29, 1921
First Day' s S e s s i o n ,
Tuesday,
O c t o b e r 25
Morning
Joint C o n f e r e n c e w i t h F e d e r a l R e s e r v e A g e n t s a n d F e d e r a l R e s e r v e Board.
The m e e t i n g was c a l l e d to o r d e r at 10: 00 o' c l o c k a+ me
Fresent:
S e c r e t a r y of t h e T r e a s u r y , A- W. Mellon,
Under S e c r e t a r y , S. P. G i l b e r t , J r . ,
C o m p t r o l l e r of t h e C u r r e n c y ,
Federal R e s e r v e b o a r d , W. P.
D. R. C r i s s i n g e r ,
G. H a r d i n g ,
Edmund P l a t t , A d o l p h C. M i l l e r , Chas. S.
Hamlin a n é J o h n R. M i t c h e l l .
Federal R e s e r v e a g e n t e C u r t i s s , J a y , A u s t i n ,
Wills, Hardy, McCord, H e a t h , M a r t i n , R i c h ,
Ramsay, Ramsey a n d P e r r i n .
Governors Morss, S t r o n g , N o r r i s , F a n c h e r ,
Seay, W e l l b o r n , McDougal , Biggs, Young,
Miller, J r . , Van Zandt a n d C a l k i n s .
Mr. H a r r i s o n , S e c r e t a r y .
Governor Harding' s Statement.
G o v e r n o r Harding r e a d a memo-
randum c o v e r i n g t h e t h r e e t o p i c s which h a d b e e n l i s t e d on t h e p r o g r a m
for c o n s i d e r a t i o n by t h e J o i n t Gonference,
viz:
( 1 ) E f f i c i e n c y and
economy in administration of Federal reserve banks, ( 2 ) Recent Developments in
t h e p a r c l e a r a n c e s y s t e m a n d s u g g e s t e d c h a n g e in
Principles governing t h e discount
of t h e s e m a t t e r s
rate.
meeting.
I
n c o n c l u d i n g h i s remarks,
it s e e m e d d e s i r a b l e ,
rates of d i s c o u n t ,
usual
or
i f possible,
t h e B o a r d at
a n d Governors’
some s u b s e q u e n t
Governor Harding emphazied t h a t
t o formulate a
general
policy regarding
f r o m w h i c h t h e r e v o u l d be no d i v e r g e n c e e x c e p t
emergency cases,
a n d t h e members
to d i s c u s s f u l l y a l l q u e s t i o n s
( 3)
T h e Governor a s k e d t h a t e a c h o n e
be c o n s i d e r e d s e p a r a t e l y by t h e a g e n t s '
Conferences a n d t h a t e a c h r e p o r t b a c k to
methods,
of
in u n =
t h e conference were requested
involving the principles
of
t h e discount
rate b e f o r e r e p o r t i n g t h e i r c o n c l u s i o n s .
Upon m o t i o n d u l y s e c o n d e d ,
1:00 o' c l o c k p+ me
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Federal Reserve Bank of St. Louis
t h e J o i n t C o n f e r e n c e a d j o u r n e d at
First Day' s S e s s i o n , T u e s d a y , O c t o b e r
Afternoon
Governors'
separate Conferences
The c o n f e r e n c e w a s c a l l e d to
order
at
25
2: 00 o' c l o c k p.
m.
Present:
Governors M o r s s ,
Strong,
Norris,
Fancher,
Seay, Wellborn, McDougal, B i g g s , Young,
Miller, J r . , V a n Zandt a n d C a l k i n s ,
Mr,
Harrison,
E l e c t i o n of
Secretary.
Chairman a n d S e c r e t a r y .
U p o n motion d u l y seconded
Governor S t r o n g w a e u n a n i m o u s l y e l e c t e d C h a i r m a n ,
a n d Mr.
Governor
S e c r e t a r y of t h e c o n f e r -
of
t h e F e d e r a l R e s e r v e B a n k of New York,
Harrison,
Deputy
ence, ( S e e paragraph 31)
War F i n a n c e C o r p o r a t i o n .
Director,
Statement
o f Eugene Meyer,
Jr. ,
Managing
|
Mr,
Meyer r e f e r r e d
to
t h e i n v a l u a b l e s e r v i c e of
t h e Federal
re-
serve b a n k s in a s s i s t i n g t h e War F i n a n c e C o r p o r a t i o n in m a k i n g c a t t l e ae
other l o a n s ;
expressed h i s thanks
f o r that cervice;
a n d asked t h e governors
if t h e y would f u r t h e r c o o p e r a t e by p r o v i d i n g a d d i t i o n a l p e r s o n n e l
the C o r p o r a t i o n in
t h e e x e r c i s e of
of t h e War F i n a n c e C o r p o r a t i o n A c t ,
who m i g h t
Ontjes
be
available
t o assist
to a s s i s t
t h e n e w powers c o n f e r r e d by S e c t i o n 2 4
o r by r e c o m m e n d i n g m e n i n member
i n s u c h work,
I
banks
t was u n d e r s t o o d t h a t Mr.
o f t h e War F i n a n c e C o r p o r a t i o n w o u l d s u b m i t a
memorandum d e f i n i n g
in d e t a i l t h e number of men w a n t e d a n d t h e c h a r a c t e r of s e r v i c e w h i c h t h e y
were t o p e r f o r m .
Mr .
at 1 0 : 00 o' c l o c k a.
Meyer l e f t
t h e m e e t i n g w i t h a n i n v i t a t i o n to
return
m. on Wednesday f u r t h e r to d i s c u e s t h e s e q u e s t i o n s .
(See paragraph 53)
Agricultural L e g i s l a t i o n ,
G o v e r n o r Strong discussed c o n fidential-~.
ly t h e v a r i o u s s u g g e s t i o n s w h i c h he h a s made c o n c e r n i n g l e g i s l a t i o n in
of t h e a g r i c u l t u r a l i n t e r e s t s ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
behalt
He r e f e r r e d to h i s d i g c u s e i o n w i t h c e r t a i n . . .
3.
Senators
o n the subject
of
t h e o p e r a t i o n of
t h e C a t t l e Loan Pool
and
pointed o u t t h e n e c e s s i t y f o r a v e r y d e f i n i t e c o o p e r a t i o n on t h e p a r t of
the Federal r e s e r v e banks w i t h t h e f u n c t i o n i n g of t h e War Finance Corporat i o n a n d t h e C a t t l e L o a n Pool.
bank in
H e s u g g e s t e d t h a t e a c h Federal r e s e r v e
t h e a g r i c u l t u r a l s e c t i o n s might c a r e to s e n d a l e t t e r
to e a c h of
their i n t e r e s t e d member banks p o i n t i n g out a n d d e s c r i b i n g t h e f a c i l i t i e s
offered by t h e War Finance C o r p o r a t i o n a n d t h e C a t t l e Loan Pool.
l i n e d what
he
agricultural
amendments
u n d e r s t o o d to
legislation,
be
t h e sentiment
i n Congress
a n d particularly w i t h respect
w i t h respect
to
t o c e r t a i n proposed
to S e c t i o r w s 1 3 a n d 14 of t h e F e d e r a l R e s e r v e Act,
gested t h a t t h e c o n f e r e n c e c o n s i d e r a
H e out-
a n d t h e n sug-
p r o p o s e d p l a h to amend t h e F e d e r a l
Farm Loan Act as an o f f s e t to o t h e r unsound l e g i s l a t i o n which might s e r l o u s ly i n t e r f e r e w i t h t h e e f f e c t i v e o p e r a t i o n of t h e F e d e r a l R e s e r v e System.
Upon m o t i o n of Governor V a n Zandt,
VOTED,
conference meet,
Stansfield,
was
i n a c c o r d a n c e w i t h Governor S t r o n g ' s s u g g e s t i o n ,
a t 9: 30 o' c l o c k T h u r s d a y m o r n i n g ,
Wadsworth,
eral Reserve Board,
tion,
it
Gooding,
a n d Warren,
‘ that the
w i t h S e n a t o r s Kendrick,
a n d Governor H a r d i n g of t h e Fed-
to d i s c u s s ( 1) proposed permanent a g r i c u l t u r a l l e g i s l a ~
a n d ( 2) what might
be done by t h e F e d e r a l R e s e r v e S y s t e m in
the
.
*
meantime to make more e f f e c t i v e t h e o p e r a t i o n s of t h e War Finance C o r p o r a t i o n
and t h e C a t t l e Loan Pool.
( S e e paragraphs 11, 43, 47, 55, a n d 80)
Governor S t r o n g l e f t t h e m e e t i n g at
i n v i t a t i o n to S e n a t o r Kendrick,
t h i s p o i n t to
a n d Governor McDougal
telephone t h i s
was a p p o i n t e d t e m p o r -
ary chairman.
R e v i Program.
e ofw
(a) W i t h d r a w a l
a n d passage
o f c e r t a i n topics.
b r i e f l y r e v i e w e d t h e i r p r o g r a m a n d a g r e e d to
VIII-A a n d VIII-B;
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
a n d to
p a s s e a c h of
T h e Governors
w i t h d r a w t o p i c s V~A, V-B,
the following topics
with the
Le.
4
,
u n d e r s t a n d i n g t h a t t h e y be n o t c o n s i d e r e d by t h e c o n f e r e n c e u n l e s s t h e r e
was t i m e to
LeA-2ea,
do s o b e f o r e a d j o u r n m e n t
InA~2~b,
this session:
at
o f report
Conditions
but that t h e report
of
a n d O p e r a t i o n s s h o u l d be a c c e p t e d
I t was u n d e r s t o o d t h a t t o p i c s
(c) T o p i c s r e f e r r e d to Committee.
' mittee.
t was
to e a c h of t h e g o v e r n o r s .
and d i s t r i b u t e d by Governor F a n c h e r
VII-A,
I
d i s c u s s i o n o f topic.
without
a g r e a i t h a t t o p i c I - - A - l - b s h o u l d n o t be d i s c u s s e d ,
o n Open Market
1l-A»lec,
V I - F , VI-H.
I - A - 3 , I-A-4d-a, I - A - 4 - - b , I-D-~-1, I - D - 2 ,
(b) A c c e p t a n c e
the C o m m i t t e e
1-A~l-a,
V I I - B a n d V I I - C s h o u l d be l e f t on t h e p r o g r a m a n d r e f e r r e d to a com-
( S e e paragraphs 79, 85).
At t h i s p o i n t G o v e r n o r S t r o n g r e s u m e d t h e c h a i r .
Statements
f o r Prees.
by t h e Chairman,
Topic 1
i t was
Governor C a l k i n s ,
w h a t s o e v e r s h o u l d be
no s t a t e m e n t s
VOTED t h a t
except
U po n m o t i o n of
t h e press
made to
i n writing.
S u p p l e m e n t I -~ B o a r d ' s J o i n t P r o g r a m .
P r a c t i c a b i l i t y of p u t t i n g i n t o c i r c u l a t i o n t h e s i l v e r
c e r t i f i c a t e s a n d l e g a l t e n d e r n o t e s n o w h e l d by F e d - eral r e s e r v e b a n k s s o as to p u t t h e r e s e r v e s e n t i r e l y
on a g o l d b a s i s .
There w a s g e n e r a l
d i s c u s s i o n of
t h e c i r c u l a t i o n a n d s u p p l y of
E a c h governor r e p o r t e d t h a t h i s
silver c e r t i f i c a t e s a n d l e g a l tenders.
bank h a s no undue a c c u m u l a t i o n of s i l v e r c e r t i f i c a t e s
or l e g a l t e n d e r s ,
and
or
the
G o v e r n o r S t r o n g r e f e r r e d to
the
that t h o s e t h a t a r e on hand a r e n e c e s s a r y to
meet c u r r e n t demands
expected C h r i s t m a s demands,
In c o n n e c t i o n w i t h t h i s t o p i c ,
p r o b l e m i n v o l v e d in
accepting national
serve b a n k s ( s e e T o p i c 2
Supplement
and s u g g e s t e d t h a t i n a s m u c h a s it
I I -
on d e p o s i t
T r e a s u r y Program;
was n e c e s s a r y e i t h e r
deem s u c h n o t e s r e c e i v e d on d e p o s i t ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
bank notes
to
at
Federal r e -
paragraph 39)
pay out
or
re~
t h e r e was a c e r t a i n c o n f l i c t w i t h t h e
ye
p r i n c i p l e of
paying out s i l v e r c e r t i f i c a t e s a n d legal tenders,
fore t h e whole q u e s t i o n of
currencies
to
t h e amounts a n d d e n o m i n a t i o n s
of
be p r i n t e d a n d p u t i n t o c i r c u l a t i o n s h o u l d be
committee to d e f i n e some u n i f o r m p r o c e d u r e .
Topic 2 Supplement I
( S ee
a n d there-
the different
r e f e r r e d to
a
p a r a g r a p h 39) .
- Board' s J o i n t Program.
D e s i r a b i l i t y of r e s t o r i n g s o m e g o l d c e r t i f i c a t e s
to c i r c u l a t i o n by h a v i n g F e d e r a l r e s e r v e b a n k s p a y
them out.
Each of
t h e twelve governors e x p r e s s e d himself
as b e i n g o p p o s e d
\
to t h e p o l i c y of d e l i b e r a t e l y p a y i n g o u t g o l d c e r t i f i c a t e s in order a g a i n \ \ 3°
hey
to place t h e m in c i r c u l a t i o n , a l t h o u g h it
was e x p r e s s l y understood t h a t ”
an.
Pe*
é s
each Federal r e s e r v e bank s h o u l d always p a y out g o l d without~any h e s i t a —
t i o n whenever demanded.
‘the Joint Conference.
Topic 3
_
—
—
G o v e r n o r S t r o n g was a u t h o r i z e d s o to r e p o r t
to
( S e e p a r a g r a p h s ,93 41).
Supplement I - Board' s J o i n t Program.
E x p e d i e n c y of a u t h o r i z i n g F e d e r a l r e s e r v e b a n k s
to p u r c h a s e i n e a c h c a l e n d a r y e a r t h e m a x i m u m
amount p e r m i t t e d under S e c t i o n 18 of t h e Federal
Reserve Act ($25,000,000) of United States bonds
e l i g i b l e as s e c u r i t y f o r b a n k n o t e c i r c u l a t i o n .
After g e n e r a l d i s c u s s i o n of
t h e q u e s t i o n of
p u r c h a s i n g 2% bonds
the terms of S e c t i o n 18 of t h e Federal Reserve Act,
it
was
VOTED, upon motion of Governor Van Zandt, t h a t Federal reserve
banks should purchase in each calendar year t h e maximum amount permitted
under Section 18 ($25,000,000) at not more t h a n par and interest,
if it
is
t h e d e s i r e of t h e F e d e r a l R e s e r v e B o a r d to
bank currency,
b u t that
do a w a y w i t h n a t i o n a l
t h e conference would f a v o r a p l a n of amending t h e National
Bank Act so t h a t t h e c i r c u l a t i o n p r i v i l e g e w o u l d be d e n i e d to n e w l y o r g a n -
ized national banks and to those national banks whose c h a r t e r s have °
expired and a r e being renewed.
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Federal Reserve Bank of St. Louis
( S e e paragraph 39).
Topic 1
Supplement I I - T r e a s u r y Program.
F u r t h e r d i s c u s s i o n of t h e n e w d e s i g n s f o r p a p e r
currency, w i t h p a r t i c u l a r r e f e r e n c e t o r e d u c t i o n
i n _ s i z e a n d t h e n e w models w h i c h h a v e b e e n s e n t
out
After a
advantages of
to
t h e several
Federal
r e s e r v e banks.
v e r y c o n s i d e r a b l e d i s c u s s i o n of
t h e n e w designs f o r paper currency,
VOTED u p o n m o t i o n of
prove t h e g e n e r a l
p l a n to
it
Governor C a l k i n s ,
r e d u c e t h e s i z e of
t h e advantages
was
that
t h e conference ap-
t h e currency,
tional s a f e g u a r d s s h o u l d be made to prevent c o u n t e r f e i t i n g ;
experts
i n those Federal
but that addi-
t h a t currency
r e s e r v e b a n k s l o c a t e d n e a r W a s h i n g t o n s h o u l d meet
with t h e T r e a s u r y O f f i c i a l s
to
discuss t h e s e safeguards;
change w h a t s o e v e r s h o u l d be made in
t h e s i z e of
a n d t h a t no
t h e currency until a
t h o r o u g h i n v e s t i g a t i o n a n d c o n s i d e r a t i o n h a d b e e n u n d e r t a k e n of
b i l i t y t h a t u n e a s i n e s s might r e s u l t ,
ignorant p e o p l e ,
and dis-
m e r e l y b e c a u s e of
p a r t i c u l a r l y in
t h e r e d u c t i o n in
t h e possi-
t h e minds of
t h e s i z e of
t h e more
t h e paper.
(See paragraphs 39, 57).
Upon m o t i o n d u l y s e c o n d e d ,
o'clock p. m., u n t i l 9: 30 o' c l o c k a,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t h e conference adjourned
m. October 26.
a t 6: 10
Second Day' s S e s s i o n ,
Governars'
Wednesday,
O c t o b e r 26
Mornin
Separate Cenference
The c o n f e r e n c e was c a l l e d to o r d e r at 9: 45 o' c l o c k a.
m.
Present:
Governors Morss, Strong, Norris, Fancher,
Seay, Wellborn, McDougal, Biggs, Young,
Miller,
Jr. ,
Mr. H a r r i s o n ,
V a n Zandt
Agricultural L e g i s l a t i o n - continued.
47, 55,
80) .
a n d Calkins,
Secretary.
T h e r e was g e n e r a l d i s c u s s i o n of
( S e e paragraphs 4, 43,
the subject
of a g r i c u l t u r a l
legislation preparatory to Mr. Meyer's j o i n i n g t h e conference at 10:00
o'clock.
G o v e r n o r S t r o n g a g a i n s u g g e s t e d t h e p r o p r i e t y of a c i r c u l a r l é t -
ter by t h e Federal r e s e r v e banks of t h e a g r i c u l t u r a l d i s t r i c t s te t h e i r
member banks to i n d i c a t e t h e p o s s i b i l i t y of t h e i r borrowing in t a s e of
need
from t h e War Finance C o r p o r a t i o n or t h e C a t t l e Loan Pool.
r e i t e r a t e d h i s o p i n i o n t h a t it
was v e r y n e c e s s a r y at
G o v e r n o r Strong
t h i s time p a r t i c u l a r l y
for the Reserve Systemaffirmatively to showi t s desire to help in the preSent situation.
C e r t a i n of t h e governors reviewed t h e e f f o r t s t h a t t h e
Federal r e s e r v e b a n k s a r e n o w making to c o o p e r a t e in
t h e manner s u g g e s t e d ,
There was s o m e d i s c u s s i o n of
not
t h e question whether
or
t h e War F i n a n c e
Corporation is at t h i s time prepared to make loans of t h e kinds contemplated,
but
it
was g e n e r a l l y u n d e r s t o o d t h a t
é v e r y t h i n g p o s s i b l e to a s s i s t t h e m in
At t h i s p o i n t Mr.
fact t h a t
in c e r t a i n s e c t i o n s
c a t t l e loans,
t h e Federal
r e s e r v e b a n k s s h o u l d do
their efforts.
Meyer j o i n e d t h e meeting.
H e r e f e r r e d to t h e
of t h e c o u n t r y member banks a r e s t i l l c a l l i n g
a n d t h a t in t h e minds of many bankers t h e r e is s t i l l consid-
erable d o u b t as
to t h e c o n t i n u a t i o n of t h e i r r i g h t
to
rediscount w i t h t h e
Federal r e s e r v e b a n k in t h o s e c a s e s where t h e y a v a i l t h e m s e l v e s
privileges of t h e War Finance Corporation,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
of t h e
H e s t a t e d that it was v e r y
n e c e s s a r y to c l e a r up t h i s d o u b t
by Governor S t r o n g ,
namely a
in some s u c h manner as t h a t s u g g e s t e d
l e t t e r or c i r c u l a r to member b a n k s to
the ef-
fect t h a t l o a n s made t h r o u g h t h e War F i n a n c e C o r p o r a t i o n w i l l n o t of themselves l i m i t t h e b o r r o w i n g b a n k ' s l i n e at
t h e F e d e r a l r e s e r v e bank,
al-
though t h e l i a b i l i t y ‘to t h e War F i n a n c e C o r p o r a t i o n w o u l d be c o n s i d e r e d ,
like a n y o t h e r l i a b i l i t y ,
i n d e t e r m i n i n g t h e c o n d i t i o n of
t h e borrowing
bank,
At t h i s p o i n t Mr.
Meyer l e f t t h e meeting.
It was t h e r e u p o n u n d e r s t o o d ,
governors
of
t h e Federal r e s e r v e banks
Sider t h e m a t t e r s r a i s e d by Mr.
w i t h o u t formal vote,
in
that the
t h e c a t t l e d i s t r i c t s would con-
Meyer a n d r e p o r t b a c k to
t h e conference
on Thursday.
I n v i t a t i o n to
McDougal,
U p o n m o t i o n of Governor
i t was
VOTED t h a t
governors
meet S i r Drummond F r a s e r .
in s u c h a
v i t a t i o n to
in
v i e w of
l i m i t e d time,
t h e l u n c h e o n to
Topic I - B - i ,
Governer C a l k i n s ,
t h e many t o p i c s
to
be c o n s i d e r e d by t h e
i t would be i m p o s s i b l e to a c c e p t t h e i n -
meet S i r Drummond F r a s e r .
S c o p e of B l i g i b i l i t y Committee.
U p o n m o t i o n of | ta aa
i t was
VOTED t h a t it
shall
be t h e f u n c t i o n of
of e a c h F e d e r a l r e s e r v e b a n k ( 1)
paper p r e s e n t e d f o r discount,
to
t h e E l i g i b i l i t y Committee
p a s s u p o n t h e t e c h n i c a l e l i g i b i l i t y of
a n d ( 2 ) to pass upon t h e d e s i r a b i l i t y of s u c h
paper f r o m a c r e d i t s t a n d p o i n t .
Topic I - B - 2 ,
U n i f o r m p r o c e d u r e of e l i g i b i l i t y c o m m i t t e e s of t h e
r e s p e c t i v e b a n k s i n r e p o r t i n g c o n c l u s i o n s to e a c h
| ther.
It was u n d e r s t o o d t h a t
I-B-1 d i s p o s e d of t h i s topic.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t h e a c t i o n taken i n connection w i t h topic
2
©
(15)
Topic I-C.
A c c e p t a n c e by member b a n k s of payments in f u l l or
in p a r t of n o t e s r e d i s c o u n t e d w i t h t h e F e d e r a l r e ~
serve bank.
Upon m o t i o n of Governor Young,
it
was
VOTED t h a t t h e S e c r e t a r y of t h e C o n f e r e n c e a d d r e s s a
l e t t e r to
the Comptroller of t h e Currency r e q u e s t i n g t h a t a l l n a t i o n a l bank examiners
be a s k e d to l o o k o u t f o r c a s e s c o m i n g w i t h i n t h i s t o p i c ;
to i t s c r i m i n a l f e a t u r e s ;
priate Federal
Rediscounting n o n - n e g o t i a b l e notes.
in d i s c u s s i n g t h i s t o p i c ,
is
a nd to make a report of t h e c a s e s to t h e appro-
r e s e r v e bank.
Topic I - K .
that it
t o call attention
p o i n t e d out t h a t a n y n o t e which bears evidence
s e c u r e d by a c h a t t e l
states a n d t h a t
G o v e r n o r Calkins,
or o t h e r m o r t g a g e im n o n - n e g o t i a b l e
an e f f o r t s h o u l d t h e r e f o r e be made to
chattel m o r t g a g e p r o c e d u r e .
I
in
most
procure unif orm
t was t h e s e n s e of t h e c o n f e r e n c e t h a t Gover-
nor Calkins s h o u l d o b t a i n an o p i n i o n f r o m h i s a t t o r n e y ont h i s s u b j e c t ,
be f o r w a r d e d to a l l F e d e r a l r e s e r v e banks,
prepare a d r a f t
Federal
of c i r c u l a r ,
r e s e r v e banks
to
to
a n d t h a t Governor Calkins s h o u l d
b a s e d upon t h a t opinion,
to
be f o r w a r d e d by a l l
t h e i r members.
Topic I-F. S h o u l d t h e Federal r e s e r v e banks d i s c o n t i n u e r e d i s c o u n t i n g f o r member
banks n o t e s
of
nonmembér
‘ banks s e c u r e d by Government o b l i g a t i o n s ?
it
was u n d e r s t o o d w i t h o u t v o t e t h a t t h i s t o p i c w o u l d be w i t h d r a w
from t h e p r o g r a min v i e w of t h e f a c t 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 h a s i s -
sued a r u l i n g a u t h o r i z i n g Federal r e s e r v e banks to r e d i s c o u n t nonmember
paper f o r t h e i r members,
Topic 1-G. ( Supplement 3) F u r n i s h i n g C r e d i t I n f o r m a t i o n to
Member B a n k s .
Upon motion of Governor Calkins,
VOTED t h a t it
is
it
was
t h e s e n s e of t h e c o n f e r e n c e t h a t F e d e r a l
serve banks s h a l l n o t f u r n i s h c r e d i t i n f o r m a t i o n to member banks,
re-
or to a n y
other bank, e x c e p t t h e Federal r e s e r v e banks a n d t h o War Finance Corporation.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Topic Il-A.
chairman of
R e p o r t of C o l l e c t i o n Committee.
t h e committee,
r e p o r t e d t h a t b e c a u s e of h i s e n f o r c e d a b s e n c e
in W a s h i n g t o n on o t h e r m a t t e r s t h e g r e a t e r p a r t of
p o s s i b l e f o r h i m to h a v e a
but t h a t
he a n d Mr.
M r . Harrison,
r e g u l a r m e e t i n g of
t h e summer,
t h e c o l l e c t i o n committee,
Logan h a d had informal d i s c u s s i o n s
f e r r e d to t h e c o l l e c t i o n c o m m i t t e e f e r d i s p o s i t i o n .
conference an i n f o r m a l r e p o r t
of
i t was im-
of
the matters r e -
H e s u b m i t t e d to
the
t h e c o n c l u s i o n s r e a c h e d by h i m a n d Mr.
Logan,
b u t p o i n t e d o u t t h a t t h e r e p o r t h a d n e v e r b e e n c o n s i d e r e d or a p p r o v e d
by Mr.
Walden,
t h e t h i r d member of
t h e committee.
H i s r e p o r t recommended
( ) t h a t t h e t w o p a r a g r a p h s p r i n t e d on pages
inserted
o
i n the appropriate collection circulars
of
f the record
each Federal
b e
reserve
bank, ( 2) t h a t each Federal reserve bank forward to each other Federal
r e s e r v e b a n k t h e a p p y o p r i a t e l e t t e r s p r i n t e d on pages
whenever
it
has a u t h o r i z e d i t s members
all
of
a n d ( 3 ) t h a t e a c h Federal
i t s member b a n k s
the l a s t c o n f e r e n c e of governors,
f the record
to s e n d c a s h or n o n - c a s h i t e m s d i r e c t
to o t h e r Federal r e s e r v e banks f o r c o l l e c t i o n ,
r e s e r v e b a n k f o r w a r d to
o
t h e l e t t e r approved
p r i n t e d on pages
o
by
f t h e record;
concerning t h e d i r e c t r o u t i n g of n o n - c a s h c o l l e c t i o n i t e m s p a y a b l e in o t h e r
‘Federal r e s e r v e d i s t r i c t s .
Upon m o t i o n of Governor Seay,
VOTED t h e t a l l ef
i t was
t h e m a t t e r s s u b m i t t e d by Mr.
H a r r i s o n . ber e -
f e r r e d to t h e g o v e r n o r s e a c h of whom s h a l l r e p o r t b a c k to Mr.
_S u g g e s t e d c h a n g e s t h a t
might
appear
to
Harrison any
be n e c e s s a r y b e f o r e t h e i r u n i f o r m
adoption by t h e Federal r e s e r v e banks.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Topic I I - B - 1 .
F i n a l a d v i c e of
payment
of i t e m s f o r w h i c h
available funds have not been received.
Upon motion of Governor McDougal,
i t was
11
VOTED.
v i s i n g payment
(21)
t h a t a l l Federal
r e s e r v e banks adopt a
p o l i c y of
not a d -
of c o l l e c t i o n s u n t i l a v a i l a b l e f u n d s h a v e b e e n r e c e i v e d .
Topic I I - B - 2 .
A d v i s a b i l i t y of F e d e r a l r e s e r v e banks p l a c i n g
the n o n - r e s p o n g i b i l i t y c l a u s e u p o n b i l l s of
l a d i n g a t t a c h e d to d r a f t s h a n d l e d f o r c o l l e c =
tion.
D e s i r a b i l i t y of u n i f o r m procedure by
all r e s e r v e banks,
Upon m o t i o n of G o v e r n o r C a l k i n s ,
i t was
VOTED t h a t a l l F e d e r a l r e s e r v e b a n k s d i s c o n t i n u e to
u s e non-
responsibility clauses upon b i l l s of l a d i n g a t t a c h e d to d r a f t s handled f o r
collection.
Topic I I - B - 3 . ,
oo
Requirement
d r a f
of c e r t i f i e d c h e c k on d e l i v e r y of
t
s with securities
tached.
o r bills
of
lading a t ~
Governor N o r r i s s t a t e d t h a t t h i s t o p i c was m e r e l y an i n q u i r y on
_ his p a r t ,
to
w h i e h a l l g o v e r n o r s r e p l i e d t h a t t h e i r b a n k s r e q u i r e d c a s h or
c e r t i f i e d checks on d e l i v e r y of d r a f t s w i t h s e c u r i t i e s or b i l l s of l a d i n g
attached,
Topic Ii+B-4. U n i f o r m method of h a n d l i n g r a i l r o a d d r a f t s , i n «
. s u r a n c e company d r a f t s , p a y a b l e at or t h r o u g h
banks, a l s o c e r t i f i c a t e s of deposit.
During t h e c o u r s e of t h e d i s c u s s i o n of t h i s s u b j e c t ,
Governor
Fancher
MOVED t h a t r a i l r o a d d r a f t s ,
i n s u r a n c e company d r a f t s ,
c e r t i f i c a t e s of d e p o s i t not b e a r i n g i n t e r e s t ,
items a n d i n e l u d e d in c a s h l e t t e r s .
B u t it
might be c o n s i d e r e d as c a s h
was o b j e c t e d by some of t h e
governors t h a t r a i l r o a d d r a f t s a n d i n s u r a n c e company d r a f t s ,
could n o t
be
h a n d l e d as
cash items
a n d demand
i n some d i s t r i c t s .
f o r instance,
Whereupon,
MOVED b y Governor McDougal t h a t t h e m a t t e r be l e f t as it
‘it b e i n g i m p o s s i b l e to
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Federal Reserve Bank of St. Louis
h a v e u n i f ormity.
Governor F a n c h e r t h e r e u p o n w i t h d r e w t h e t o p i c ,
i t was
now i s ,
12
Topic I I - B - 5 ,
L i a b i l i t y of c o l l e c t o r of t i m e i t e m s w h e n
check or o t h e r e v i d e n c e of p a y m e n t i s a c c e p t e d w h i c h p r o v e s t o be bad.
It a p p e a r e d f r o m t h e d i e c u c c i o n t h a t t h i s t o p i c was p l a c e d u p o n
of a
t h e p r o g r a m by G o v e r n o r M o r s e a s c t h e r e s u l t
misunderet anding b e t w e e n
the F e d e r a l R e s e r v e Bank of B o s t o n a n d t h e F e d e r a l R e s e r v e Bank of
t was u n d e r s t o o d t h a t t h e t o p i c would be w i t h d r a w n a n d t h a t t h e
I
York.
New
by c o r r e s p o n d e n c e .
two banks c o n c e r n e d w o u l d t a k e up a n d a d j u s t t h e m a t t e r
D e d u c t i o n of exchange on demand c e r t i f i c a t e s
Topic I I - B - - 6 - a .
of d e p o s i t a n d t i m e c e r t i f i c a t e s
sent f o r c o l l e c t i o n a t m a t u r i t y .
o f deposit
Governor McDougal s t a t e d t h a t no a c t i o n was a s k e d on t h i s t o p i c .
Topic I I - B - 6 - b ,
D e d u c t i o n of e x c h a n g e on c h e c k s p r o t e s t e d a n d
returned
f o r non-payment
when reforwarded
f o r
c o l l e c t i o n a n d p a i d by d r a w e e b a n k .
Upon m o t i o n of
VOTED T h a t
it
Governor Seay,
is
it
t h e concensus
was
of o p i n i o n t h a t e x c h a n g e s h o u l d
not be d e d u c t e d by t h e d r a w e e b a n k on c h e c k s p r o t e s t e d a n d r e t u r n e d f o r
non-payment,
(27)
T
o
p
e v e n t h o u g h t h e y be h a n d l e d ae
i
c II-C-1,
c o l l e c t i o n items.
D e s i r a b i l i t y of t h e F e d e r a l r e s e r v e b a n k s e s ~
t+ablishine a u n i f o r m p r a c t i c e i n h a n d l i n g c h e c k
c o l l e c t i o n s , w i t h t h e a i m of m a k i n g t h e m e t h o d s
of h a n d l i n g checks ( i n c l u d i n g checks on savings
banks a n d c e r t i f i c a t e s of d e p o s i t ) f o r member
banks, s o f a r as is r e a s o n a b l y p o s s i b l e , as
were t h e s e t r a s a c t i o n s
of
t h e banks w i t h t h e i r
c i t y correspondents.
It was i n f o r m a l l y a g r e e d to
stantially disposed o f
pase t h i s topic
as
having been sub}
by t h e d i s c u s s i o n a n d a c t i o n u n d e r T o p i c I I - B - 4 .
( See paragraph 23)
(28 )
T o
p
i
c II-C-2. I d e n t i f i c a t i o n symbols on member banks' checks.
This t o p i c was p a s s e d ,
this is
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Federal Reserve Bank of St. Louis
it
b e i n g t h e s e n s e of
an i n o p p o r t u n e t i m e to p r e s s t h e m a t t e r .
t h e conference t h a t
Topic I I - C - 3 .
D e s i r a b i l i t y of
u n i f o r m p r a c t i c e in f i l i n g
claims o n b e h a l f of member b a n k s
réserve banks a n d t h e i r b r a n c h e s
items i n v o l v e d i n b a n k f a i l u r e s .
S p e n — m o t i o n of Governor Seay,
by F e d e r a l
of transit
i t was
VOTED t h a t a u n i f o r m p o l i c y be adopted whereby each. reserve
bank w i l l f i l e c l a i m s f o r i t s i n d o r s e r s ( i n c l u d i n g o t h e r r e s e r v e b a n k s a n d
branch banks,
unless
a s well
as
member b a n k s )
whether
i t has b e e n e x p r e s s l y i n s t r u c t e d not
to
independent Conferences of Governors.
it was i n f o r m a l l y u n d e r s t o o d to
nor Seay,
as
be t h e s e n s e of
o r n o t r e q u e s t e d t o do s o ,
do s o .
A f t e r general d i s c u s s i o n
t h e c o n f e r e n c e t h a t Gover-
o n e of t h e t w o g o v e r n o r s a p p o i n t e d by t h e F e d e r a l R e s e r v e
Board to d i s c u s s t h e c o n t i n u a n c e af
g r o u p meetings,
r e p o r t t h a t independ-
ent conferences of governors at places other t h a n Washington ( in addition
to t h e r e g u l a r c o n f e r e n c e s n o w h e l d in Washington)
w o u l d be more c o n d u c i v e
of t h e s u c c e s s f u l conduct of t h e a f f a i r s of t h e Federal r e s e r v e banks t h a n
the A R G :
s o - c a l l e d g r o u p meetings.
( S e e p a r a g r a p h e ,24 46, 7 6 ,
Election e f Chairman a n d S e c r e t a r y f o r next Conference.
motion of Governor V a n Zandt,
86) .
Up o n
i t was
VOTED that Governor Strong be made Chairman and Mr. Harrison,
Deputy Governor
of
t h e F e d e r a l R e s e r v e B a n k of
for t h e n e x t c o n f e r e n c e of g e v e r n e r s .
Upon motion d u l y seconded,
be made S e c r e t a r y
( Ss e p a r a g r a p h 2)
t h e c o n f e r e n c e a d j o u r n e d at 1 : 0 0
o'clock p. m., u n t i l 2: 00 o' c l o c k p. m.
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Federal Reserve Bank of St. Louis
New York,
Second D a y ' s S e s s i o n , W e d n e s d a y , O c t o b e r 2 6 ,
Afternoon
Governors’ S e p a r a t e C o n f e r e n c e .
The c o n f e r e n c e w a s c a l l e d to
order
at
2: 00 o' c l o c k .
Present:
Governors Morss,
Strong,
Norris,
Fancher,
Seay,
Wellborn, McDougal, Biggs, Young, M i l l e r , J r . ,
Van Zandt a n d C a l k i n s .
Mir.
Harrison,
Topic I i - C - 4 .
Secretary.
L e t t e r s to b a n k s c a l l i n g a t t e n t i o n to f a i l u r e
to g i v e r e a s o n f o r n o n - p a y m e n t o f c h e c k s r e turned.
After d i s c u s s i o n ,
d u r i n g w h i c h it
a p p e a r e d t h a t most of t h e
Federal r e s e r v e b a n k s p u r s u e t h e p r a c t i c e of w r i t i n g to member b a n k s
calling a t t e n t i o n t o t h e i r f a i l u r e
of r e t u r n e d c h e c k s ,
G o v e r n o r Biggs,
to
g i v e t h e r e a s o n f o r non-payment
r e q u e s t e d t h a t t h i s t o p i c be
passed,
Topic I I - C - 5 .
C h e ck C o l l e c t i o n s - F i n a l a d v i c e of p a y m e n t
of i t e m s w h i c h h a v e p r e v i o u s l y b e e n a d v i s e d
as o u t s t a n d i n g .
This t o p i c was p a s s e d w i t h t h e u n d e r s t a n d i n g t h a t G o v e r n o r s
Young a n d Biggs e n d e a v o r
to s e e what t h e y c a n do to make t h e i r
present a d v i c e s of " n o l o n g e r o u t s t a n d i n g " a
aa
as to i n d i c a t e ,
if
A
possible,
standing h a s been "paid"
Topic I 1 - C - 6 .
R T
credit
s o
emailed
w h e t h e r t h e i t e m w h i c h is
no l o n g e r o u t -
or " r e t u r n e d u n p a i d . "
Immediate credit f o r officers checks issued
by F e d e r a l r e s e r v e banks.
Upon m o t i o n of Governor Seay,
VOTED t h a t
l i t t l e more d e f i n i t e ,
a
it
is
it
was
t h e s e n s e of t h e c o n f e r e n c e t h a t i m m e d i a t e
be g i v e n f o r o f f i c e r s c h e c k s i s s u e d by F e d e r a l r e s e r v e banks.
Topic I I - C - 7 .
P a r Clearings
i n the Sixth District.
Governor W e l l b o r n r e a d a r e p o r t
on t h e s t a t u s of t h e p a r
clearance c a s e now pending a g a i n s t t h e Federal Reserve Bank of Atlanta.
The r e p o r t was r e c e i v e d w i t h t h a n k s a n d o r d e r e d p r i n t e d in t h e r e c o r d .
{see p a g e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Topic I i - C - 8 .
see
E x c
Governor
R e m o v i e nhl i gm
t i t f r o m Federal Reserve
h e
S e a y moved t h a t
change d r a f t s be removed,
seconded,
it
n g e Drafts.
the limit
on F e d e r a l
reserve ex-
b u t , upon motion of Gevernor Calkins,
duly
was
VOTHD t h a t t h i s t o p i c be postponed u n t i l t h e next c o n f e r =
ence of g o v e r n o r s
in s r d é r t h a t t h e s e v e r a l g e v e r n a r s might h a v e en
opportunity in t h e meantime to e t u l y it
a n d be prepared to r e p o r t
back at t h e next c o n f e r e n c e , it b e i n g w d e r s t o o d t h a t t h e Chairman
would h a v e t h e t o p i c p l a c e d u p o n t h e n e x t program.
Tepic InAr4.
U n i f o r m p r a c t i c e in h a n d l i n g benkers a c c e p t anees t a k e n f r o m b r o k e r s
under repurchase
agreements .
There wae & long d i s c u s s i o n by e l l of t h e governors w i t h r e f 6rence to t h e p r e s e n t p r a c t i c e of t h e Federal Reserve Banksef New York,
San F r a n c i s c o a n d Boston in buying b i l l s f r o m brokers under r e s a l e
- a g r e e n e n t e e n d d i s c o u n t i n g t h o s e b i l l e f o r t h e t e r m ef
ment r a t h e r t h a n to t h e m a t u r i t y af
the bille.
I
the resale agree~
t was p o i n t e d o u t by
the Chairman t h a t t h i s arrangement, while believed to be necessary in
order e f f e c t i v e l y to develop t h e v i l l market in t h e f i n a n c i a l c e n t e r s ,
results in @ purchase by the Federal r e s e r v e bank of b i l l s at prices
in excess of t h e i r v e l u e at t h e time of purchase.
W i t h o u t formal
action, it wes understood that t h i e matter would be taken up by
the
Cheirman w i t h t h e o f f i c e r s
of
t h e F e d e r a l R e s e r v e B a n k of
New York a n d
thet he w o u l d r e p o r t b a t k to t h e F e d e r a l R e s e r v e Banks of S t . L o u i s ,
Boston,
S a n Francisco,
Report
of
Chicago a n d Cleveland.
a c t i o n of G o v e r n o r s ’
Conference
o n certain topics
covered by Supplements I and IT ( See a l s o paragraphs 41 a n d 57)
Atthis point Mr. Gilbert, Under Secretary of the Treasury,
joined t h e m e e t i n g a n d a f t e r h i s d i s c u s s i o n of s c e r t a i n c o n f i d e n t i a l
matters,
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Federal Reserve Bank of St. Louis
c o n c e r n i n g t h e i s s u e of
Certificates
of
Indebtedness,
the
LE,
Chairman r e p o r t e d to
h i m t h e a c t i o n t a k e n by t h e c o n f e r e n c e at
ing on T u e s d a y c o n c e r n i n g t h e t o p i c s
on t h e T r e a s u r y program:
i t e meet~
( S e e para»
graphe 10, 41, 57)
Topics I Supplement I I - T r e a s u r y Program:
That it was t h e s e n s e of t h e c o n f e r e n c e to a p p r o v e t h e g e n e r a l
plan to r e d u c e t h e s i z e of t h e c u r r e n c y , b u t t h a t a d d i t i o n a l
s a f e g u a r d s s h o u l d be made to p r e v e n t c o u n t e r f e i t i n g ; t h a t
currency e x p e r t s i n t h o c e F e d e r a l r e s e r v e banks l o c a t e d n e a r
Washington s h o u l d meet w i t h t h e T r e a s u r y O f f i c i a l s t o d i s c u s s
these s a f e g u a r d s ;
end that
no c h a n g e w h a t s o e v e r s h o u l d be
made in t h e s i z e of t h e c u r r e n c y u n t i l a
thorough i n v e s t i g a -
tion a n d c o n s i d e r a t i o n h a d b e e n undertaken o f t h e p o s s i b i l i t y
that u n e a s i n e s s m i g h t r e s u l t ,
ignorant
people,
of t h e paper,
Treasury was c o m m i t t e d to
i n the size
t ha t
t h e T r e a s u r y Dewhile t h e
a new d e s i g n f o r t h e paper currency,
the
s i z e was s t i l l d e b a t a b l e .
Upon m o t i o n o f G o v e r n o r
that a
Banks of
was t h e p o l i c y of
t o proceed w i t h c a u t i o n i n t h i s matter;
q u e s t i o n of
t h e minds of
o f the reduction
( S e e paragraph 1 0 )
M.r G i l b e r t e t a t e d t h a t it
partment
p a r t i c u l a r l y in
merely because
New York,
Van Zandt,
i t was
c u r r e n c y man f r o m e a c h of
Philadelphia,
Chicago,
t h e Federal Reserve
B o s t o n a n d C l e v e l a n d be c e n t
to meet w i t h t h e T r e a s u r y O f f i c i a l s u p o n c a l l of Mr.
Gilbert.
Governor S t r o n g t r e n c o n t i n u e d h i s r e p o r t
Topic 2
Supplement
I I -
Topic 3 Supplement I
-
T r e a s u r y Program,
also
Board' s J o i n t P r o g r a m
That t h e c o n f e r e n c e h a d v o t e d t h a t F e d e r a l r e s e r v e b a n k e s h o u l d
purchase i n e a c h c a l e n d a r y e a r , a t n o t more t h e n p a r a n d i n t e r e s t , t h e maximum amount ( $ 2 5 , 0 0 0 , 0 0 0 ) o f U n i t e d S t a t e s b o n d s
e l i g i b l e as s e c u r i t y f o r b a n k n o t e c i r c u l a t i o n , b u t t h a t if
be t h e d e s i r e of t h e F e d e r a l R e s e r v e B o a r d to do away w i t h
national
bank currency,
amending t h e N a t i o n a l
t h e conference would f a v o r a
it
p i a n of
B a n k Act so t h a t t h e c i r c u l a t i o n p r i v i -
lege w o u l d be d e n i e d to n e w l y o r g a n i z e d n a t i o n a l b a n k e a n d to
those n a t i o n a l b a n k s w h o s e c h a r t e r e h a v e e x p i r e d a n d a r e b e i n g
renewed.
( S ee
p a r a g r a p h 9)
—
In t h i e c o n n e c t i o n he f u r t h e r r e p o r t e d t h a t t h e m a j o r i t y of
fovernors
w e r e of
the opinion t h a t Federal
ceme t h e f u t u r e e i n k s f o r d i s p o s i t i o n of
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
r e s e r v e banks s h o u l d n o t
national
bank notes,
the
be~
but that
they should,
upon receipt,
e i t h e r p a y t h e m o u t or r e t u r n t h e m to t h e
Treasury f o r redemption (paragraph 7).
personal o p i n i o n t h a t if
national
G o v e r n o r Strong expressed h i s
b a n k n o t e s a r e to
be r e t i r e d S e c t i o n
18 of t h e F e d e r a l R e s e r v e Act s h o u l d be amended so as to p e r m i t P e d e r a l
reserve banks to convert 2% bonds bought by them i n t o some other
bonds t h a t w o u l d b e a r a h i g h e r o p e n market v a l u e .
It was f u r t h e r r e p o r t e d
Topic 5 Supplement
I I ~ T r e a s u r y Program,
Topic 1 Supplement -
also
Board' s Joint P r o
That n o n e of t h e F e d e r a l r e s e r v e b a n k s h a d a c c u m u l a t e d s i l v e r
c e r t i f i c a t e s orlegel tenders other t h a n what is necessary
to meet t h e i r c u r r e n t demands or t h e e x p e c t e d Christmas d e -
mands,
( S e e paragraph 7)
Topic 3.
S u p p l e ement
I I os T r e a s u r y P r o g r a m .
The S t a n d a r d of c u r r e n c y to
be a p p l i e d byt h e
Jreasury and the Federal reserve banks, etc.
S u p p l e m e nII
t= Treasury
T Supplement
=
Il Program.
Establishment
ri h
of
a.
c e n t r a l i z e d c o n t r o l . of t h e
p
apresents
cu s h o u l d be
what d e n o m i n a t i o n s , e t c .
i
d out.
a nd i n
The matters presented in these t h r e e topics were discussed
at some l e n g t h by the members of t h e conference w i t h Mr, Gilbert.
It was t h e concensus of o p i n i o n t h a t t h e c u r r e n c y p r o b l e m s h o u l d
be c o n s i d e r e d as a
w h o l e in o r d e r to a d o p t some u n i f o r m b a s i s of s o r t ~
ing and payment in a l l Federal reserve banks, G o v e r n o r Strong s t a t e d
that in h i s o p i n i o n t h e o l d p o l i c y w i t h r e f e r e n c e to t h e o r d e r in
which c u r r e n c y s h o u l d be p a i d out by Federal r e s e r v e banks s h o u l d be
emended 90 as to have the order of payment as follows:
( 1) national
bank notes, ( 2) s i l v e r c e r t i f i c a t e s , ( 3) legal tenders, a n d there~
after Federal r e s e r v e n o t e s a n d Federal r e s e r v e b a n k notes; a l t h o u g h
it
was p o i n t e d o u t t h a t
this order
of
p r e f e r e n c e was s u b j e c t
ation to s u i t t h e demands f o r denominations.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
ta
alter-=
n order, t h e r e f o r e ,
that t h e p r o b l e m might
be c o n s i d e r e d as a whole,
VOTED u p o n m o t i o n of
recommend to
it
Governor Fancher,
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 it
was
that
is
t h e conference
desirable that a
manent c u r r e n c y c o m m i t t e e be a p p o i n t e d by t h e T r e a s u r y Department,
a representative
shall
of
t h e Federal
Reserve Board o n t h e committee,
be c h a r g e d w i t h t h e s t u d y of t o p i c e 2,
Treasury Program)
the a d j u s t m e n t
fitness,
etc.
4,
a n d w i t h t h e a d m i n i s t r a t i o n of
of d e n o m i n a t i o n s ,
;
3,
that committee
per+
with
which
a n d 5 ( Supplement
t h e i s s u e of c u r r e n c y ,
a n d t h e establishment
of s t a n d a r d s
c o n f e r f r o m t i m e to
time with t h e
to
each Federal reserve
c u r r e n c y c o m m i t t e e or o t h e r p r o p e r o f f i c e r s of
II -
of
o e
-
(See p a r a g r a p h 63)
Further
report
of
Governors'
A c t i o n on t o p i c s c o v e r e d
by
Supplements I and II ( See paragraph 3 9 )
Governor S t r o n g a l s o r e p o r t e d to Mr, G i l b e r t t h a t t h e c o n f e r - ~
ence on T u e s d a y h a d b e e n u n a n i m o u s l y of t h e o p i n i o n
Topic 2. S u p p l e m e n t I - B o a r d ' s J o i n t P r o g r a m
That g o l d c e r t i f i c a t e s s h o u l d n o t be p a i d o u t i n o r d e r
again to p l a c e t h e m in c i r c u l a t i o n ,
a l t h o u g h it
should a l w a y s p a y g o l d w i t h o u t
demanded.
was
reserve bank
expressly understood t h a t e a c h Federal
a n y h e s i t a t i o n whenever
( S e e p a r a g r a p h 8)
t h i s d i s c u s s i o n i t was u n d e r s t o o d t h a t
Upon t h e c o n c l u s i o n of
Mr. G i l b e r t s h o u l d meet w i t h t h e c o n f e r e n c e on T h u r e d a y m o r n i n g at 11: 00
o'clock,
Independent
46 , 7 6 , 8 6 )
Conferences
Governor McDougal
to c o n f e r w i t h Fe
Saaiey,
Agents
that,
of
made a
f o r t h e committee a p p o i n t e d
t h e Federal Reserve Agents
of
on t h e s u b j e c t
of
of
continued,
t h e Governors w i t h r e s p e c t
to g r o u p m e e t i n g s ,
t h e y would r e -
Upon m o t i o n d u l y s e c o n d e d t h e c o n f e r e n c e a d j o u r n e d u n t i l
Thursday morning,
O c t o b e r 27,
at
but
t h e G o v e r n o r s a d v i s e d t h e m of t h e
consider t h e m a t t e r w i t h t h e A g e n t e a n d r e p o r t back.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
group
t h e F e t e r a l Reserve
t h e o p i n i o n t h a t g r o u p m e e t i n g s s h o u l d be
when t h e r e p r e s e n t a t i v e s
f e e l i n g of
report
H e stated that t h e representatives
w e r e of
( S e e paragraphs 30,
o f Governors,
9: 30 o' c l o c k .
s
e
Third Day' s S e s s i o n ,
Thursday,
October
27
- Morning
Governors!
S e p a r a t e Conference.
The c o n f e r e n c e w a s c a l l e d to
order
at
9: 30 o' c l o c k a.
m.
Present:
Senators K e n d r i c k , Warren, S t a n s f i e l d , G o o d i n g
and Wadsworth,
Governor Harding, F e d e r a l R e s e r v e Board,
Governors S t r o n g , N o r r i s , F a n c h e r , S e a y ,
Wellborn, McDougal, B i g g s , Young, M i l l e r , J r . ,
Van Z a n d t
a n d Calkins,
Mr. H a r r i s o n ,
Secretary.
Agricultural L e g i s l a t i o n - c o n t i n u e d ( See paragraphs 4, 11, 47,
55, 80)
The c o n f e r e n c e met w i t h Governor H a r d i n g a n d t h e S e n a t o r s l i s t e d
above f o r t h e p u r p o s e of d i s c u s s i n g t h e p r o g r a m w h i c h G o v e r n o r S t r o n g h a d
outlined to t h e conference on Tuesday a f t e r n o o n , October 25, and Wednesday
morning, October 26, (paragraphs 4 and 11),
T h e Chairman reviewed t h e
discussion which t h e conference h a d had w i t h r e s p e c t
to
t h e d e s i r a b i l i t y of
additional l e g i s l a t i o n in behalf of t h e a g r i c u l t u r a l i n t e r e s t s .
H e stated
that w h i l e t h e C a t t l e L o a n Pool a n d t h e War F i n a n c e C o r p o r a t i o n w e r e p r o v -
ing of v a s t a s s i s t a n c e in a i d i n g t h e c a t t l e i n t e r e s t s in t h e present emergency,
a n d t h a t w h i l e t h e Federal r e s e r v e banks were anxious
to a i d t h e m
in e v e r y p o s s i b l e
m a n n et hin
re i r operations, n e v e r t h e l e s s t h e s e f a c i l i t i e s
were,
t e m p o r a r y in
necessarily,
t h e i r n a t u r e a n d t h a t it
was,
therefore,
q u i t e g e n e r a l l y a g r e e d by t h e c o n f e r e f i c e t h a t some permanent L e g i s l a t i o n
should be e f f e c t e d to c a r e f o r t h e requirements of t h e a g r i c u l t u r a l a n d
c a t t l e i n t e r e s t s in t h e matter of l o a n s r u n n i n g f r o m s i x months to t h r e e
years.
I
n emphas iz i n g t h e d e s i r e of t h e F e d e r a l r e s e r v e b a n k s to a i d t h e
War F i n a n c e C o r p o r a t i o n a n d t h e C a t t l e L o a r i P o o l
i n the successful
of t h e i r powers he s t a t e d t h a t t h e governors were c o n s i d e r i n g w i t h
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
conduct
20
Mr. Meyer,
M a n a g i n g D i r e c t o r of t h e War F i n a n c e C o r p o r a t i o n ,
of a d d r e s s i n g some l e t t e r to member a n d non-member banks
t r i c t s c a l l i n g a t t e n t i o n tq
t h e Federal
the cattle dis-
t h e f a c i l i t i e s w h i c h a r e o f f e r e d by t h e War
Finance C o r p o r a t i o n a n d t h e C a t t l e L o a n Pool,
that
in
t h e possibility
r e s e r v e banks
a l t h o u g h he a l s o p o i n t e d o u t
h a v e no a u t h o r i t y to
make a n y l o a n s t h e y do not want
to
make or
r e q u i r e member
banks
to
to p r o h i b i t t h e i r m a k i n g a n y
loans t h a t t h e y might c a r e to make.
The C h a i r m a n r e f e r r e d b r i e f l y to
t h e p r o p o s e d p l a n of l e g i s l a t i o n
( previously discussed informally
by h i m w i t h S e n a t o r K e n d r i c k a n d .
senators)
machine
to
provide a
permanent
d e s i r e d by t h e a g r i c u l t u r a l i n t e r e s t s ,
Federal
L a n d Banks,
ing i n d o r s e m e n t s
t o fumish the intemediate credits
by an e x t e n s i o n of t h e powers of t h e
a n d c a l l e d a t t e n t i o n to
dual g o v e r n o r s h a d s u g g e s t e d must
certain difficulties
be c o v e r e d ,
on l o a n s made t h r o u g h F e d e r a l
of S e c t i o n 5 2 0 2 of t h e R e v i s e d S t a t u t e s ,
L a n d Banks f r o m t h e r e s t r i c t i o n s
t h e n e c e s s i t y of p e r m i t t i n g l o a n s
able f a c i l i t i e s
to
t h e Federal
gently u p o n q u e s t i o n s
as well as t h r o u g h
t h e n e c e s s i t y of i n s u r i n g a g a i n s t a
exodus f r o m t h e F e d e r a l R e s e r v e System,
that indivi-
s u c h as t h e n e c e s s i t y of exempt-
to be made t h r o u g h i n c o r p o r a t e d l i v e s t o c k l o a n c a n p a n i e s
other b a n k i n g i n s t i t u t i o n s ,
other
wholesale
a n d t h e n e c e s s i t y of p r o v i d i n g s u i t -
L a n d Banks to
pemit
t h e i r passing i n t e l l i -
of c r e d i t i n v o l v e d in l o a n s of t h i s c h a r a c t e r .
Governor H a r d i n g at
t h i s p o i n t s u g g e s t e d t h e p o s s i b i l i t y of
amending S e c t i o n 13 of t h e F e d e r a l R e s e r v e Act so t h a t F e d e r a l r e s e r v e b a n k s
may r e d i s c o u n t f o r member b a n k s a
ital s t o c k f o r instance,
of
l i m i t e d amount,
n o t exceeding t h e i r cap-
l i v e s t o c k l o a n s r u n n i n g f o r t w o or t h r e e y e a r s ,
with t h e p r o v i s o t h a t s u c h loans s h o u l d not be e l i g i b l e as s e c u r i t y f o r
Federal
reserve notes
a n d s h o u l d be l i m i t e d i n amount
plus of t h e d i s c o u n t i n g F e d e r a l r e s e r v e bank.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t o 5 0 % of
the sur-
21
Bach of t h e g o v e r n o r s
t u n i t y to e x p r e s s h i s views,
at
a n d it
t h e c o n f e r e n c e was t h e n g i v e n an opporewas t h e g e n e r a l o p i n i o n t h a t t h e p r o p e r
means of m e e t i n g t h e n e e d s of t h e a g r i c u l t u r a l i n t e r e s t s was to amend t h e
Federal F a r m Loan Act in t h e general manner which h a d been d i s c u s s e d w i t h
such q u a l i f i c a t i o n s
as might
be n e c e s s a r y to
cover t h e additional p o i n t s
mentioned above.
Senator K e n d r i c k s t a t e d t h a t w h i l e in
h i s o p i n i o n t h e present
credit s y s t e m of t h e c o u n t r y might be s u f f i c i e n t o r d i n a r i l y to c a r e f o r t h e
needs of a g r i c u l t u r e ,
strain,
it
he t h o u g h t
nevertheless,
i n t i m e s of a n y e x t r a o r d i n a r y or
undue
was u n a b l e to provide t h e r e q u i s i t e c r e d i t a n d he s t a t e d t h a t
it
might t h e r e f o r e be d e s i r a b l e to e n a c t l e g i s l a t i o n a m e n d i n g
the Federal F a r m Loan Act somewhat a l o n g t h e l i n e s suggested,
a n d not to
amend t h e Federal Reserve Act by p e r m i t t i n g r e s e r v e banks ta make two a n d
e r e
y e a r loans.
Senator W a r r e n s t a t e d t h a t it
was a p p a r e n t t h a t t h e members
of
the c o n f e r e n c e a p p r e c i a t e d what was n e e d e d a n d s u g g e s t e d t h a t t h e y d e v i s e
or p r o p o s e some d e f i n i t e p l a n t h a t wowld meet t h e r e q u i r e m e n t s
of t h e a g r i -
cultural i n t e r e s t s .
Senator S t a n s f i e l d r e f e r r e d to
t h e f a c t t h a t while t h e l i v e s t o c k
i n t e r e s t s a r e n o w r e c e i v i n g h e l p f r o m t h e $50,000,000 C a t t l e Loan Pool a n d
_War Finance Corporation, nevertheless t h e War Finance Corporation ceases
to f u n c t i o n om J u l y 1, 1922,
s o m e t h i n g to
a n d t h a t t h e r e f o r e it
t a k e t h e p l a c e of
t h e g a p which will
is
i m p o r t a n t t h a t we h a v e
result
f r o m t h e withdrawal
. of t h e War F i n a n c e C o r p o r a t i o n a n d t h e C a t t l e L o a n Pool.
Senator Wadsworth s a i d t h a t he b e l i e v e d it
would be d e s i r a b l e to
have t h e F a r m L o a n b a n k s d e a l t h r o u g h o t h e r banks or c a t t l e l o a n companies,
and n o t d e a l d i r e c t l y w i t h t h e b o r r o w e r ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
22
Senator G o o d i n g e x p r e s s e d
i t to
be h i s o p i n i o n t h a t t h e t w o or
t h r e e y e a r c r e d i t s n e e d e d by c a t t l e r a i s e r s
w e r e c r e d i t s w h i c h might
well
be p r o v i d e d t h r o u g h t h e F e d e r a l r e s e r v e banks,
a n d t h a t t h i s whole m a t t e r
should be c o n s i d e r e d w i t h c a u t i o n u n l e s s
d e s i r e d to d e v e l o p t w o
banking s y s t e m s to
stated t h a t
it
is
do t h e e v e r y d a y b a n k i n g b u s i n e s s
of t h e c o u n t r y .
H e
he was much p l e a s e d w i t h t h e b r o a d v i e w t a k e n by t h e c o n f e r e n c e ,
and e x p r e s s e d t h e hope t h a t t h e y w o u l d s u c c e e d in w o r k i n g o u t s o m e t h i n g
that w o u l d g i v e t h e l i v e s t o c k i n t e r e s t s s e m e r e l i e f w i b h a l i t t l e c h e a p e r
money,
In c o n c l u s i o n S e n a t o r K e n d r i c k s t a t e d t h a t
he f e l t t h e c o n f e r -
ence was f a i r l y w e l l a g r e e d on t h e t h i n g t h a t was n e e d e d a n d a s k e d w h e t h e r
the c o n f e r e n c e w o u l d o u t l i n e some l e g i s l a t i o n a l o n g t h e l i n e s p r o p o s e d .
Governor S t r o n g r e p l i e d t h a t
conference,
t h e matter
was s t i l l
a n d t h a t t h e y c o u l d n o t come to
had o p p o r t u n i t y to
d i s c u s s it
u n d e r d i s c u s s i o n by t h e
any conclusion until they had
further.
At 1 1 : 30 o' c l o c k S e n a t o r s K e n d r i c k ,
Warren,
Stansfield,
Wadsworth
and G o o d i n g r e t i r e d .
After t h e S e n a t o r s
summary,
ha d w i t h d r a w n G o v e r n o r S t r o n g ,
by way of
s t a t e d t h a t t h e r e were f o u r p o s s i b l e means of d e a l i n g w i t h t h e
situation,
viz:
1.
T o c o n t i n u e t h e f u n c t i o n s of t h e War
Finance C o r p o r a t i o n b e y o n d J u l y 1, 1922;
2.
T o amend t h e F e d e r a l
R e s e r v e Act
s o as
to
permit F e d e r a l r e s e r v e b a n k s to a d v a n c e
long t i m e c r e d i t s to t h e d h e s t a n ns
interests;
To amend t h e F e d e r a l F a r m L o a n Act so as
to p e r m i t of F e d e r a l L a n d B a n k s m a k i n g
the n e c e s s a r y l o a n s f r o m s i x m o n t h s to
three y e a r s ;
4. T o do nothing.
-
E a c h of t h e g o v e r n o r s ,
w i t h t h e e x c e p t i o n of G o v e r n o r Wellborn,
ing h i s own p e r s o n a l o p i n i o n ,
f a v o r e d t h e t h i r d plan,
i n express-
a l t h o u g h some of t h e m
s a i d t h a t t h e y w o u l d l i k e to d i s c u s s t h e m a t t e r w i t h t h e i r d i r e c t o r s ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o r to
22
have a n o t h e r c o n f e r e n c e of t h e g o v e r n o r s to c o n s i d e r it
tion.
G o v e r n o r W e l l b o r n e x p r e s s e d it
n e c e s s a r y to
do a n y t h i n g i n a s m u c h as
to
a f t e r delibera-
be h i s o p i n i o n t h a t it
was n o t
he b e l i e v e d t h e F e d e r a l R e s e r v e
System c o u l d t a k e c a r e of t h e s i t u a t i o n w i t h o u t f u r t h e r amendment .
all t h e g o v e r n o r s h a d g i v e n t h e i r views,
After
Governor S t r o n g s t a t e d t h a t t h e
n e c e s s i t y of d o i n g s o m e t h i n g a f f i r m a t i v e was a p p a r e n t ,
n o t o n l y to p r o v i d e
the n e c e s s a r y c r e d i t s to
the agricultural interests,
legislation injurious
t h e Federal Reserve S y s t e m a n d t h e e n t i r e c r e d i t
st r u c t u r e
of
to
t h e country.
H e suggest
ed t h a t
b u t a l s o to f o r e s t a l l
i t was n o t p r o p e r
at
this
time f o r t h e governors to recommend a n y f o r m of b i l l or amendment to t h e
Farm Loan Act, b u t t h a t t h e p r i n c i p l e s which have been d i s c u s s e d a n d t h e
suggestions which have been made s h o u l d be d e f i n e d in some s o r t of a report
to be s u b m i t t e d to t h e F e d e r a l R e s e r v e B o a r d as
an e x p r e s s i o n of t h e p e r -
sonal o p i n i o n of t h e governors a t t e n d i n g t h e conference.
Whereupon,
o n m o t i o n of
Governor Seay,
i t was
VOTED 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 be a d v i s e d t h a t t h i s o p i n i o n
That t h e War F i n a n c e C o r p o r a t i o n s h o u l d n o t
be c o n t i n u e d b e y o n d J u l y 1, 1922;
That no n e w c o r p o r a t i o n s or n e w
s y s t e m of
banking s h o u l d be c r e a t e d }
That t h e F e d e r a l r e s e r v e banks s h o u l d n o t be
authorized to make long time loans; but
That t h e F e d e r a l F a r m L o a n Act s h o u l d be
amended in t h e manner suggested, w i t h
proper s a f e g u a r d s a g a i n s t t h e exodus of member banks f r o m t h e Federal R e s e r v e System,
and w i t h s u c h o t h e r n e c e s s a r y p r o v i s i o n s
those p r e v i o u s l y d i s c u s s e d .
Upon motion of Governor Fancher,
VOTED t o a p p o i n t a
@
G o v e r n o r s Young,
Calkins,
Seay,
it
as
was
committee c o n s i s t i n g of t h e Chairman,
a n d Norris,
a n d Mr.
Harrison,
to
prepare
the n e c e s s a r y s t a t e m e n t of t h e p r i n c i p l e s d i s c u s s e d f o r submission
to t h e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal
R e s e r v e Board.
( S e e paragraph 47)
At t h i s p o i n t Mr.
Topic 1.
Gilbert
j o i n e d t h e conference.
S u p p l e m e n t I I - T r e a s u r y P r o g r a m ( F i s c a l Agency)
The q u e s t i o n w h e t h e r f i s c a l a g e n c y e x p e n s e s w i l l
c o n t i n v e to be a b s o r b e d by t h e F e d e r a l r e s e r v e
banks on t h e p r e s e n t b a s i s a f t e r t h e e n d of t h e
current f i s c a l y e a r .
After a s h o r t p r e l i m i n a r y d i s c u s s i o n by Mr. G i l b e r t ,
governors
stated that
their directors
d i d not f e e l
i n a
s o m e of t h e
p o s i t i o n to
the r e s o l u t i o n p r e v i o u s l y r e q u e s t e d by t h e T r e a s u r y Department
to
pass
the ef-
fect t h a t t h e F e d e r a l r e s e r v e b a n k s w o u l d in f u t u r e a b s o r b c e r t a i n f i s c a l
agency e x p e n s e s ,
Af t e r a
short
open discussion
i n w h i c h i t was p o i n t e d
out t h a t w h i l e t h e more c o r r e c t s y s t e m of a c c o u n t i n g w o u l d be to h a v e t h e
Treasury Department
reimburse t h e Federal
r e s e r v e banks,
nevertheless
since it
is
p r o b a b l e t h a t F e d e r a l r e s e r v e b a n k s must l e g a l l y a s s u m e e x p e n s e s
incident
to
t h e p e r f o r m a n c e of f i s c a l a g e n c y f u n c t i o n s ,
no a p p r o p r i a t i o n f o r t h e i r r e i m b u r s e m e n t ,
sent p r o c e d u r e w i l l
w h e n C o n g r e s s makes
i t was u n d e r s t o o d t h a t t h e p r e -
be c o n t i n u e d a n d t h a t no a c t i o n by t h e c o n f e r e n c e is
now r e q u i r e d o n e way or a n o t h e r .
Pending B i l l
f o r the Relief
of
Persons
w h o s u b s c r i b e d f o r Bonds
t h r o u g h F a i l e d Banks.
Governor
ference
to
Norris asked whether
take any action with respect
that he b e l i e v e d it
i t w o u l d be a d v i s a b l e f o r t h e c o n to
would be i n a d v i s a b l e to
Treasury h a d opposed t h e b i l l
in
this bill.
Mr .
Gilbert
do s o , p a r t i c u l a r l y as t h e
i t s p r e s e n t form.
Upon m o t i o n d u l y s e c o n d e d t h e c o n f e r e n c e a d j o u r n e d at 1: 30
o'clock p, m. to reconvene at 2:30 o' c l o c k p. m.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
stated
Third Day' s S e s s i o n , T h u r s d a y , O c t o b e r
Afternoon
Governors' S e p a r a t e C o n f e r e n c e .
The c o n f e r e n c e r e c o n v e n e d at
27
2: 30 o' c l o c k p.
m.
Present:
Governors Morss,
Strong,
Norris,
Fancher,
Seay, Wellborn, McDougal, Biggs, Young,
Miller,
Jr. ,
V a n Zandt a n d C a l k i n s .
(Mr. Harrison, Secretary, temporarily a b s e n t )
Topic 1
Board' s J o i n t Program.
E f f i c i e n c y a n d e c o n o m y in a d m i n i s t r a t i o n of F e d e r a l
reserve banks.
It was p o i n t e d o u t t h a t e f f i c i e n c y a n d economy in
of t h e F e d e r a l r e s e r v e banks might b e s t
and d e f i n i t e a c t i o n at
the operation
be p r o m o t e d by c o m p l e t e d i s c u s s i o n s
f o l l o w e d by c o m p l i a n c e by
c o n f e r e n c e s of g o v e r n o r s ,
all reserve banks with the conclusions reached at those conferences.
I n
order c a r e f u l l y to
it.
p r e p a r e f o r t h e a c t i o n t a k e n at
t h o s e conf orences,
was thought to be advisable to have the advice and thought of the best
technical men in t h e System,
sented i n advance.
ences at
who might p r o p e r l y d i s c u s s t h e q u e s t i o n s p r e ~
T h e thought
was e x p r e s s e d t h a t
t h e Governors’
Confer-
t h i s t i m e a r e n o t c o n d u c t e d in a manner c a l c u l a t e d to p r o m o t e =
f i c i e n c y a n d economy in
graphs 30, 42, 76, 86),
o p e r a t i o n of t h e F e d e r a l r e s e r v e b a n k s { s e e p a r a -
a n d a f t e r f u l l d i s c u s s i o n it
VOTED u p o n m o t i o n of G o v e r n o r C a l k i n s
to
was —
be t h e s e n s e of t h e
_conference t h a t w h i l e t h e governors of t h e banks i n d i v i d u a l l y a r e a p p l y i n g
their
best
efforts
to
increasing t h e efficiency
o f operation i n their
re-
spective banks, nevertheless t h e i r e f f o r t s would be muoh more e f f e c t i v e if
given an o p p o r t u n i t y ,
without r e s t r i c t i o n ,
‘cussion when a n d where t h e y s e e f i t ,
a n d to
to
c a l l conferences f o r dis-
c a l l conferences
of
ing men or s p e c i a l i s t s f o r t h e p u r p o s e of c o m p a r i n g t h e s y s t e m s
twelve b a n k s
back to
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
and determining upon t h e basis
t h e governors.
of
t h o s e systems,
t h e operat «
in
the
and reportin
26
Upon d i s c u s s i o n o f t h e q u e s t i o n o f economy,
that
i t was p o i n t e d o u t
in e a c h b a n k a c o m p r e h e n s i v e i n v e s t i g a t i o n of c o s t s is
and o p p o r t u n i t i e s
underetood,
of
reducing costs being availed of.
without formal vote,
b e i n g made
W h e r e u p o n it
t h a t t h e a b o v e r e s o l u t i o n as
wae
to e f f i c i -
ency of o p e r a t i o n s h o u l d a l s o c o v e r t h e q u e s t i o n of economy.
Acricultural
Legislation -
continued ( See paragraphs
4, 11,
43,
po, 80) ;
Mr, H a r r i s o n r e t u r n e d to
t h e conference a n d reported t h e sub-
etance of a c o n v e r s a t i o n w h i c h he h a d h a d w i t h Mr.
the J o i n t Commiscion of
Agricultural Inquiry,
r e l a t i v e to
discussion c o n c e r n i n g a g r i c u l t u r a l l e g i s l a t i o n .
Anderson h a d r e q u e s t e d t h a t
no f o r m a l
or t h e F e d e r a l R e s e r v e B o a r d at
or
t h e morning' s
t a k e n by t h e g o v e r n o r s
u n t i l t h e A g r i c u l t u r a l Com~
micsion h a d h a d o p p o r t u n i t y e i t h e r to make i t s r e p o r t
covering t h i s s u b j e c t .
C h a i r m a n of
H e s t a t e d t h a t Mr.
a c t i o n be
t h i s time,
Anderson,
or p r o p o s e a
bill
T h e r e u p o n t h e r e was f u r t h e r d i s c u s s i o n of
the
entire q u e s t i o n o f a g r i c u l t u r a l
l e g i s l a t i o n a n d t h e p r o p o s e d p l a n t o amend
the F a r m L o a n Act,
i n o r d e r to e m p h a s i z e t h e f a c t t h a t t h e F e d e r a l
Governor S t r o n g ,
Reserve S y s t e m i s s t i l l
eubject
to
pressure,
read a
letter addressed
o
Governor H a r d i n g by t h e Governor of Iowa ( s e e p a g e s
transmitting a
r e s o l u t i o n p a s s e d at
a c o n f e r e n c e of
thé F e d e r a l r e s e r v e b a n k s t o w a r d a g r i c u l t u r e ,
rediscount
rates.
by t h e Governor of
member
banks
H e alco read a
a n d Federal
interests g e t t i n g c r e d i t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o
r e s e r v e banke
at
nine
t h e p a r t of
to
t o Governor H a r d i n g
f t h e record) u r g i n g t h a t
do s o m e t h i n g to
cheaper r a t e s .
of
e s p e c i a l l y with respect
letter addressed
Nebraska ( s e e pages
f t h e record)
t h e governors
of t h e a g r i c u l t u r a l e s t a t e s u r g i n g a more l i b e r a l p o l i c y i
t o
insure agricultural
21.
In t h e o p e n d i s c u s s i o n it
which m i g h t
might
was u r g e d t h a t a n y a g r i c u l t u r a l
bill
be p r e p a r e d s h e u l d be d r a w n so as te p r o v i d e t h a t t h e f a c i l i t i e s
be e x t e n d e d by t h e F e d e r a l L a n d Banks t h r o u g h c a t t l e l o a n c o m p a n i e s
as well
as t h r o u g h b a n k s ,
t r u s t companies,
should be p e r m i t t e d to r e d i s c o u n t
of s i x m o n t h s ,
i n s t e a d of
etc;
t h a t Federal r e s e r v e banks
f o r Land Banks'
ninety days
as
paper within a
had been suggested;
matur i t y
that
the
indorsements on loans made t h r o u g h t h e Federal Land Banks s h o u l d not be
subject
to t h e l i m i t a t i o n s of S e c t i o n 5 2 0 2 of
that some p r o v i s i o n s i m i l a r
to
S e c t i o n 27
Act, c o n c e r n i n g e x e m i n a t i o n s a n d r e p o r t s
of
t h e Revised Statutes;
and
t h e War F i n a n c e C o r p o r a t i o n
by t h e C o m p t r o l l e r
of
the
Currency, should be placed in any b i l l t h a t might be drafted.
It was u n d e r s t o n d ,
without action,
t h a t G o v e r n o r S t r o n g was to
take up t h e s e m a t t e r s w i t h C h a i r m a n a n d e r s o n a n d r e p o r t
opinion,
to
h i m t h a t in h i s
as t h e r e s u l t of t h e views e x p r e s s e d by t h e Governors,
be d e s i r a b l e
to i n c o r p o r a t e t h e s e s u g g e s t i o n s
Whereupon,
u p o n m o t i o n of
it
would
i n t h e proposed b i l l .
Governor C a l k i n s ,
i t was
WTED t h a t t h e previous a c t i o n ( s e e p a r a g r a p h 43) of t h e
conference in a p p o i n t i n g a committee to d r a f t a
statement f o r presenta-
tion to t h e Federal Reserve Board s h o u l d be rescinded.
Topic 2+ B o a r d ' s J o i n t P r o g r a m
Recent D e v e l o p m e n t s i n t h e P a r C l e a r a n c e S y s t e m a n d
suggested changes
i n methods.
After d i s c u s s i o n of t h e proposed changes in t h e method of handling t h e p a r c l e a r a n c e of
VITED,
checks,
it
was
u p o n m o t i o n of Governor W e l l b o r n ,
t h a t f o r t h e present
the Federal Reserve board postpone ( 1 ) t h e i s s u e of a circwar d e f i n i n g
the charges which might be imposed by member banks f o r t h e c o l l e c t i o n of
Checks c l e a r e d t h r o u g h t h e Federal r e s e r v e banks,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
a n d ( 2 ) a n y change in
28.
the p a r c l e a r a n c e s y s t e m w h i c h w o u l d p r o v i d e f o r a
c h a r g e to
be i m p o s e d
by F e d e r a l r e s e r v e b a n k s f o r t h e c o l l e c t i o n of c h e c k s b e a r i n g t h e i n d o r s e -
ment of non-par banks.
( S e e paragraphs 52 a n d 84)
At t h i s p o i n t G o v e r n o r S t r o n g w i t h d r e w a n d Governor McDougal
took t h e c h a i r .
Topic 3.
B o a r d ' s J o i n t Program. .
Principles g o v e r n i n g t h e Discount Rate.
The g o v e r n o r s g a v e c a r e f u l c o n s i d e r a t i o n to
t h a t p a r t of Governor
Harding's o p e n i n g a d d r e s s c o n c e r n i n g t h e p r i n c i p l e s g o v e r n i n g t h e d i s c o u n t
rates a n d d i s c u s s e d at some l e n g t h t h e various views q u o t e d in t h a t address.
Governor McDougal r e f e r r e d to
Reserve Bank of C h i c a g o h a d c o n s i d e r e d ,
t h e p r i n c i p l e which t h e Federal
that is,
t h a t if
t h e r e s e r v e s of t h e
System a r e to be a v a i l a b l e f o r t h e l e g i t i m a t e req u i rem en t s of business a n d
f or a l l e m e r g e n c i e s ,
high,
or
ters.
I
t h e d i s c o u n t p o l i c y s h o u l d be s u c h as to h o l d r a t e s as
s l i g h t l y higher,
t h a n t h e g o i n g r a t e s in
t was u n d e r s t o o d t h a t t h i s t o p i c was to
9:30 o' c l o c k a.
m. F r i d a y .
( S e e p a r a g r a p h s 49a,
t h e l a r g e commercial c e n be f u r t h e r c o n s i d e r e d at
50 a n d 5 4 )
Upon m o t i o n d u l y s e c o n d e d t h e c o n f e r e n c e s a d j o u r n e d at
oOo GLeck p r i s
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6: 00
Fourth Day' s S e s s i o n ,
Friday,
October
28
Morning
Governors' S e p a r a t e C o n f e r e n c e .
The c o n f e r e n c e was c a l l e d to o r d e r at 9: 30 o' c l o c k a,
m.
Present:
Governors Morss, S t r o n g , N o r r i s , F a n c h e r ,
Seay, Wellborn, McDougal, B i g g s , Young,
Miller, J r , , V a n Zandt a n d C a l k i n s .
M.r H a r r i s o n , S e c r e t a r y .
Topic 3.
B o a r d ' s J o i n t Program.
Principles g o v e r n i n g t h e Discount Rate.
( S e e paragraphs 49,
‘50 and.
54)
Governor S t r o n g e x p r e s s e d h i s views on t h e s u b j e c t of discount r a t e s .
and s t e t e d t h a t t h e r e were a v a r i e t y of c o n s i d e r a t i o n s n e c e s s a r y in d e t e r m i n i n g »
rates:
first,
t h e amount or percentage of t h e r e s e r v e s of t h e bank of issue, -
whether t h e y a r e unduly l a r g e or dangerously low; second, t h e r e l a t i o n between t h e r a t e at which t h e r e s e r v e bank manufactures c r e d i t a n d t h e r a t e which
credit b e a r s in t h e o p e n market ( o u r p r o b l e m in t h i s r e g a r d is
from t h a t of England,
v a r i e t y of r a t e s as
much d i f f e r e n t
where t h e r e is r e a l l y o n l y one market r a t e , a n d not a
in t h i s c o u n t r y so t h a t it
is
difficult,
i f not’ impossible,
to f i x r e s e r v e b a n k r a t e s in a l l d i s t r i c t s a b o v e t h e market r a t e s ,
especially
in s t a t e s where usury laws permit v e r y high r a t e s of interest); t h i r d , t h e
temper of t h e p u b l i c ,
-
whether
it
is
in a s p e c u l a t i v e or d e p r e s s e d mood;
a nd
fourth, t h e r e l a t i o n between t h e cost of c r e d i t and prices generally, a l t h o u g h
it was stated that while prices a r e affected by the bank rate, nevertheless
the b a n k r a t e s h o u l d n o t be f i x e d w i t h a
v i e w to a d j u s t i n g p r i c e s .
At 1 0 : 00 o' c l o c k t h e c o n f e r e n c e of g o v e r n o r s a d j o u r n e d to
joint c o n f e r e n c e w i t h t h e Federal Reserve Board,
and Mr, G i l b e r t ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under S e c r e t a r y of t h e Treasury.
meet
in
t h e Federal Reserve Agents,
F o u r t h Day' s S e s s i o n ,
Friday,
October
28
Morning
Joint Conference w i t h Federal R e s e r v e Board a n d Federal Reserve Agents
The j o i n t c o n f e r e n c e was c a l l e d to o r d e r at 1 0 : 00 o' c l o c k a.
m.
Present :
Federal R e s e r v e Board,
Harding,
Miller,
Hamlin
“and M i t c h e l l .
Comptroller of t h e Currency, D. R. C r i s s i n g e r
Federal R e s e r v e Agents, C u r t i s s , J a y , A u s t i n ,
Wills, Hardy, VeCord, Heath, Martin, Rich,
Ramsay, Ramsey a n d Perrin.
:
Under S e c r e t a r y of t h e T r e a s u r y ,
Governors Morss, S t r o n g , N o r r i s ,
S. P. G i l b e r t , J r .
Fancher, Seay,
Wellborn, McDougal, Biggs, Young, M i l l e r , I J r . ,
Mr.
Topic 3.
Van Zandt a n d C a l k i n s .
Harrison, Secretary.
Board' s
J o i n t Program.
Principles Governing t h e Discount R a t e ( See paragraphs
49,49a a n d 54)
Governor H a r d i n g o u t l i n e d h i s own p e r s o n a l i d e a s w i t h r e s p e c t
to Federal r e s e r v e bank discount r a t e s , s t a t i n g t h a t e a c h Federal r e serve b a n k h a s power
to
f i x i t s owm r a t e s
Reserve B o a r d w o u l d be r e l u c t a n t
d i r e c t o r s of t h e r e s e r v e banks,
to
and that
i n t e r f e r e w i t h t h e judgment
reserve bank i n s i s t s
nevertheless
it
might h a v e
on r e m a i n i n g o u t of l i n e w i t h
the g e n e r a l r a t e p o l i c y of t h e whole system.
opinion t h a t t h e p s y c h o l o g i c a l
H e s t a t e d it
in
h i s v i e w it
would be i m p o s s i b l e to
market r a t e s in s o r e of t h e .
banks
on a u n i f o r m b a s i s .
rate r e v i s i o n t h a t might
governor,
P e
r to f i x t h e r a t e s of a l l t w e l v e
g e n e r a l p l a n of
be c o n s i d e r e d by t h e s e v e r a l banks.
e a c h rember of t h e B o a r d p r e s e n t ,
Ea c h
a n d Mr, G i l b e r t t h e n e x -
Govemor H a r d i n g ' s r e m a r k s .
U p o n c o n e l u s i o n of t h e d i s c u s s i o n ,
give t h e i r d i r e c t o r s a
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o
H e said
keep t h e r e s e r v e r a t e s above
H e thereupon suggested a
pressed t h e i r views r e l a t i v e to
|
. to be h i s
moment h a s n o w a r r i v e d when t h e r e s e r v e
banks might p r o p e r l y r e c o n s i d e r t h e w h o l e q u e s t i o n of r a t e s .
that
of t h e
a n d would n e v e r so i n t e r f e r e where t h e
discount r a t e c o n c e r n s a n y o n e b a n k a l o n e ,
to do so whenever a
while t h e Federal
a l l g o v e r m o r s a g r e e d to
c o m p l e t e p i c t u r e of t h e v i e w s e x p r e s s e d f o r
their
advice
a n d information.
Topic 2. Supplement I
-- Board' s J o i n t P r o g r a m
2
2
D e s i r a b i l i t y of r e s t o r i n g s o m e g o l d c e r t i f i c a t e s t o
c i r c u l a t i o n by h a v i n g F e d e r a l R e s e r v e B a n k s p a y t h e m o u t .
Governor S t r o n g r e p o r t e d t h e u n a n i m o u s o p i n i o n of
ernors ( p a r a g r a p h s 8
and 41) t h a t
pay o u t g o l d c e r t i f i c a t e s ,
i t w o u l d be a
a l t h o u g h he
mistake
stated that
at
t h e govt h i s t i m e to
t h e y were a l l
in
entire agreement t h a t r e s e r v e banks s h o u l d p a y out g o l d without h e s i t a t i o n u p o n demand,
Topic 2.
Board' s J o i n t P r o g r a m
Recent D e v e l o p m e n t s i n t h e p a r c l e a r a n c e s y s t e m
and s u g g e s t e d c h a n g e s i n m e t h o d s .
Governor S t r o n g r e p o r t e d t h e unanimous o p i n i o n ( s e e p a r a g r a p h s
48, 56 a n d 84) of t h e governors t h a t t h e r e s h o u l d be no fundamental
changes in t h e p a r c l e a r a n c o s y s t e m pending t h e s e t t l e m e n t of t h e a c t i o n
against
t h e Federal
R e s e r v e B a n k of
u n a n i m o u s l y o p p o s e d to
r e s e r v e b a n k s make a
indorsement
t h e a d o p t i o n of
and etated that
t h e p r o p o s e d p l a n to
c h a n g e f o r t h e c o l l e c t i o n of
o f non-par banks,
ing t h e c h a r g e s
Atlanta,
which might
a s woll
be
made
as
to
banks
of c h e c k s c l e a r e d t h r o u g h F e d e r a l
r e s o r v e banks.
however,
Harding' s
that
i n v i e w of
be c o n s i d e r e d h e l p f u l
governors
Governor
to
would report
have F e d e r a l
checks b e a r i n g t h e
the issue
by member
t h e y were
of
a
ruling cover-
f o r the collection
I
t was u n d e r s t o o d ,
statement
that
i t might
t h e Atlanta bank i n t h e pending case,
b a c k on
t h e d e s i r a b i l i t y of
issuing this latter
circular,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
AS
o c a e'r
ee
c
l
n e a t
o
c
k t h e Joint
the
Conference adjourned.
Fourth Day' s S e s s i o n ,
Friday,
October
28
Afternoon
Governors’
Separate Conference
The c o n f e r e n c e w a g c a l l e d to
order
at
2: 30 o' c l o c k p.
m.
Present:
Governors Mores, S t r o n g , N o r r i s , F a n c h e r ,
Seay, W e l l b o r n , McDougal, B i g g s , Young,
Van Zandt a n d C a l k i n s ,
Legislation ~
Agricultural
continued ( See paragraph 3 )
of War F i n a n c e C o r p o r a t i o n f o r P e r s o n n e l
Request
Governor S t r o n g r e a d a l e t t e r ,
Mr.
with a
of
Managing Director
Meyer,
memorandum f r o m Mr.
to
therein.
Af te r d i s c u s s i o n ,
t h e War F i n a n c e C o r p o r a t i o n ,
of
t h e number
and character
C o r p o r a t i o n a d v i s i n g it
t h a t c e r t a i n of
indicated a
to
by Mr.
to
Chicago,
of
compensation
t h e s e c r e t a r y would r e q u e s t
Topic 3
-
Minneapolis,
Ontjes 3
the precise character
Philadelphia,
of
t o be p a i d .
t h e War F i n a n c e
r e s e r v e banks
communicate d i r e c t l y w i t h t h e Federal
C o r p o r a t i o n to
of A t l a n t a ,
t h e Federal r e s e r v e banks h a v e
t o be r e n d e r e d a n d t h e a m o u n t
It wae u n d e r s t o o d t h a t
set forth
t h e War F i n a n c e
l e t t e r to
f u r n i s h t h e men r e q u e s t e d
@ p r o p e r u n d e r s t a n d i n g c a n be r e a c h e d as
the s e r v i c e s
together
i t was.
VOTED t h a t t h e S e c r e t a r y p r e p a r e a
willingness
from
a s k i n g t h a t F e d e r a l r e s e r v e banks
Ontjes,
f u r n i s h pereonnel
endeavor
d a t e d O c t o b e r 25, 1921,
C l e v e l a n d a n a N e w York.
Board' s J o i n t Program.
Principles g o v e r n i n g t h e Discount
rate.
Governor S t r o n g r e p o r t e d t h a t he h a d r e c e i v e d f r o m Governor
‘ Harding some c o r r e s p o n d e n c e ,
Hickeon,
D i r e c t o r of
on t h e s u b j e c t
count r a t e s .
of
with a
memorandum p r e p a r e d
t h e Minneapolis Bank ( pages
the principles
Thes e principles,
S.
P.
f t h e record)
w h i c h s h o u l d g o v e r n t h e f i x i n g of
dis-
having been previously discussed ( par-
graphs 49, 4 9 a and 50) no a c t i o n was required.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o
by Mr.
a6
Agricultural L e g i s l a t i o n -
c o n t i n u e d ( s e e p a r a g r a p h s 4, l l ,
43,: 47, 55,. 80).
C o o p e r a t i o n w i t h War F i n a n c e C o r p o r a t i o n .
Governor Young s t a t e d t h a t t h e F e d e r a l R e s e r v e Bank of Minneapolis
is
now doing a l l that
is
p o s s i b l e to c o o p e r a t e w i t h t h e War F i n a n c e
Corporation in t h e g r a n t i n g of c a t t l e loans,
a n d s t a t e d t h a t he b e l i e v e d
that t h e g o v e r n o r s of o t h e r F e d e r a l r e s e r v e b a n k s in t h e a g r i c u l t u r a l
and c a t t l e d i s t r i c t s a r e d o i n g t h e same t h i n g .
was a g r e e d t h a t s i n c e a l l of t h e F e d e r a l
( S e e p a r a g r a p h 80) .
I
t
r e s e r v e banks h a d a l r e a d y e v i -
denced t h e i r d e s i r e to f a c i l i t a t e t h e a g r i c u l t u r a l a n d c a t t l e l o a n operations of t h e War F i n a n c e C o r p o r a t i o n in
n e c e s s a r y to
e v e r y p o s s i b l e way,
i t was n o t
t a k e a n y f o r m a l v o t e on t h i s s u b j e c t .
Topic 2.
B o a r d ' s J o i n t Program.
Recent D e v e l o p m e n t s i n t t h e p a r C l e a r a n c e S y s t e m
and s u g g e s t e d c h a n g e s i n M e t h o d s ( s ee p a r a g r a p h s
48, 52 a n d 84)
Upon m o t i o n of G o v e r n o r F a n c h e r ,
VOTED t h a t if
Mr.
i t was
J o h n W. D a v i s a n d c o u n s e l a s s o c i a t e d w i t h
him in t h e pending c a s e a g a i n s t t h e Federal Reserve Bank of A t l a n t a do
not o b j e c t ,
t h e r u l i n g ( X-3232) p r e p a r e d by t h e F e d e r a l R e s e r v e B o a r d
r e l a t i v e to c h a r g e s
by member banks
reserve b a n k s s h o u l d be i s s u e d ,
on c h e c k s c l e a r e d t h r o u g h F e d e r a l
but w i t h t h e understanding,
as
prog
vided in t h e l a s t p a r a g r a p h t h e r e o f ,
own d i s c r e t i o n as
to
whether
able to c a l l t h i s r u l i n g to
Topic l l l = - A .
a n d to
t h a t e a c h r e s e r v e bank e x e r c i s e i t s
what e x t e n t
i t i s necessary
o r desir-
t h e a t t e n t i o n of i t s m e r b e r banks.
Designs
of
paper currency.
It was a g r e e d t h a t t h i s t o p i c h a d been d e a l t w i t h by t h e a c t i o n
t a k e n i n r e g a r d to
the designs
t h e c o n s i d e r a t i o n of
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
of
currency submitted
t h e conference.
by Mr.
( S e e paragraphs
Gilbert
1 0 a n d 39) .
for
34
Topic 1 l 1 - b - 1 .
‘ h e shipping Federal
sorb t h e c o s t of s h i p m e n t s
/)
4)
4) ‘
as u n f i t F e d e r a l
i n s u r a n c e .
e
reserve benk should ab-
of
R e s e r v e Notes,
-
Upon m o t i o n of Governor F a n c h e r ,
“ o t h e r ” f i t as well
except
the cost
of
i t was
PF
/ NOTED t h a t t h e procedure suggested in t h i s t o p i c be approved
and Gaopted.
Topic 111-B-2.
Method of accounting f o r postage on shipments
of F e d e r a l
R e s e r v e N o t e s made d i r e c t
to
b a n k of
issue. «
It was u n d e r s t o o d t h a t t h i s t o p i c was d i s p o s e d of by t h e a c t i o n
taken u n d e r T o p i c 111-B-1.
Topic 111-B-4.,
C a r m o t s e t t l e m e n t of shipments of o t h e r Federal
R e s e r v e N o t e s be h a n d l e d t h r o u g h t h e F e d e r a l R e s e r v e
Beard i n a manner s i m i l e r to t h e p r e s e n t d a i l y s e t -
tlement of
ment Fund?
c o l l e c t e d funds through t h e Gold S e t t l e -
Upon motion of Governor Young,
it
was
VOTED t h a t t h e p r o c e d u r e o u t l i n e d in
t h i s t o p i c be a p p r o v e d
and a d o p t e d .
Topic 1 1 1 - B - 3 .
S h o u i d shipment f r o m one Federal r e s e r v e b a n k
to a n o t h e r
ceived? :
be
c h a r g e d or
c r e d i t e d wmtil
actually re-
it was u n d e r s t o o d t h a t t h i s t o p i c was d i s p o s e d of
by a c t i o n
taken under Topic 111-B-4.
It was u n d e r s t o o d a n d a g r e e d ,
without formal a c t i o n ,
t h a t Govern-
or McDougal w i l l s e r v e as a committee of one toe arrange t h e d e t a i l s of
putting i n t o e f f e c t t h e a c t i o n t a k e n under t o p i c s 111-b-1,
and t h a t
he w o u l d t a k e
up t h e s e m a t t e r s
w i t h t h e Federal
2,
3,
md 4,
Reserve board
. On b e h a l f of a l l F e d e r a l r e s e r v e b a n k s .
Topic 1 1 1 - C .
St a n d a r d
of
s o r t i n g c u r r e n c y s h o u l d be u n i f o r m .
It was a g r e e d t h a t t h i s t o p i c was d i s p o s e d of
by t h e p r e v i o u s
action of t h e c o n f e r e n c e ( p a r a g r a p h 40) recommending t h a t a committee
be a p p o i n t e d by t h e T r e a s u r y to t a k e j u r i s d i c t i o n o v e r c e r t a i n c u r r e n c y
matters.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
L735
Topic 1 1 1 - D .
N e c e s s i t y of
b a n k s r e p o r t i n g to
B o a r d on Form’ 1 6 0
; ‘ d e t a i l s of m o n t h l y c u r r e n c y r e c e i p t s a n d d i s b u r s e ments
as
to
kinds,
denominations.
Upon m o t i o n of Governor Fancher,
a n d conditions.
i t was
VOTED t h a t t h i s t o p i c be r e f e r r e d to t h e New Currency Committee
for d i s p o s i t i o n a n d that,
if
it
be possible,
t h e r e p o r t r e f e r r e d to in
the t o p i c s h o u l d be abandoned,
(65)
T o
n
i
c 111-E-1.
L i m i t a t i o n on detail matter - Telegraphic t r a n s -
fers.
Topic 1 l 1 - E - 2 .
Topic VI-5,
P r o c e d u r e t h r o u g h o u t s y s t e m s h o u l d be u n i f o m r e -
g a r d i n g i n c l u s i o n or o m i s s i o n of d e t a i l s i n c o n n e c tion w i t h w i r e t r a n s f e r s o v e r t h e p r i v a t e wire.
F e d e r a l R e s e r v e Code -
Upon m o t i o n of Governor N o r r i s ,
VOTED t h a t t h e s e t o p i c s
Fancher,
Revision desired.
i t was
be r e f e r r e d to G o v e r n o r s McDougal
t h e Leased Wire Committee,
and
f o r s t u d y a n d r e p o r t to a l l governors.
It was u n d e r s t o o d t h a t t h e y s h o u l d t a k e j u r i s d i c t i o n of t h e
e n t i r e q u e s t i o n of c o d i n g messages a n d s h o u l d p r e p a r e a
structions
to
c i r c u l a r of i n -
a l l F e d e r a l r e s e r v e b a n k s w i t h r e f e r e n c e to
t h e method of
handling t e l e g r a p h i c t r a n s f e r s .
Upen motion of Governor Norris,
it
was
‘ VOTED t h a t t h e method by w h i c h a d v i c e of t e l e g r a p h i c t r a n s f e r s
Shall
be g i v e n to
payee banks
be
r e f e r r e d to
t h e L e a s e d W i r e Committee.
Topic 1 3 1 - E - 3 . F e d e r a l
transfers,
reserve bank l i a b i l i t y f o r telegraphic
Without f o r m a l a c t i o n it
was u n d e r s t o o d t h a t t h e L e a s e d W i r e
Committee r e v i e w t h e c i r c u l a r s of a l l t w e l v e F e d e r a l r e s e r v e b a n k s to
see to what e x t e n t t h e y a r e u n i f o r m s o f a r as t h e q u e s t i o n of l i a b i l i t y
for w i r e t r a n s f e r s
is
would t h e n p r o p o s e a
concerned.
I
t was u n d e r s t o o d t h a t t h i s c o m m i t t e e
uniform clause which s h a l l
be s e n t to a l l F e d e r a l
reserve banks f o r t h e i r c o n s i d e r a t i o n a n d r e p o r t b a c k to t h e committee,
without w a i t i n g f o r a n o t h e r f o r m a l c o n f e r e n c e of g o v e r n o r s .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
36.
Topic 1 1 1 - F , S h o u l d t h e r e s o l u t i o n a d o p t e d at t h e A p r i l c o n ference,
i n r e f e r e n c e t o r e q u e s t s of n o n - m e m b e r b a n k s
for c u r r e n c y a n d c o i n s e r v i c e , a c c o m p a m i s d b y d r a f t s
on c i t y c o r r e s p o n d e n t s
be r e c o n s i d g r e d ?
After a s h o r t d i s c u s s i o n ,
t h i s t o p i c was w i t h d r a w n by Governor
Topic V-C,
fiscal
A b s o r p t i o n of
agency costs.
It was understood t h a t t h i s t o p i c was d i s p o s e d of by t h e a c t i o n
of t h e c o n f e r e n c e at
Topic Vi-A,
t h e m e e t i n g w i t h Mr.
Report
G i l b e r t ( p a r a g r a p h 44)
of Committee on Persorm’l A c t i v i t i e s .
Upon m o t i o n of Governor Fancher,
i t was a g r e e d t h a t t h e r e p o r t
_ S u b m i t t e d be r e c e i v e d ,
Topic V1-8.
Direct
P o uc hi n g of m a i l
i n Federal
r e s e r v e banks.
The Chairman gave t h e substance of a report by Mr. S a i l e r ( Federal R e s e r v e B a n k of New York)
on t h e s u b j e c t
Seven of t h e Federal r e s e r v e banks, Boston,
Chicago, Kansas C i t y a n d Dallas,
of d i r e c t p o u c h i n g of mail.
New York, Cleveland, A t l a n t a ,
were in favor of u s i n g t h e p r i v i l e g e of
direct pouching in t h e bank, some of them,
in f a c t ,
a r e a l r e a d y d o i n g so;
four, Richmond, S t . Louis, Minneapolis a n d S a n Francisco,
ing c o u l d be e f f e c t e d b e c a u s e of t h e e a r l y a r r i v a l
mail t r a i n s ;
might
a n d one, P h i l a d e l p h i a ,
be s a v e d on t h e r s i e d
t h o u g h t no sav—-
a n d l a t e d e p a r t u r e of
r e a c h e d t h e c o n c l u s i o n t h a t e n e hour
b u t n o n e on t h e i n c o m i n g mail.
Owing to t h e f a c t t h a t t h e d i s c u s s i o n i n d i c a t e d t h a t s o m e of
the F e d e r a l r e s e r v e b a n k s d i d not c l e a r l y u n d e r s t a n d what d i r e c t p o u c h -
ing f a c i l i t i e s t h e Post O f f i c e is
p r e p a r e d to afford,
the C h a t r e s n s h o u l d a g a i n r e f e r t h e m a t t e r
to
Mr.
it
Sailer
was d e c i d e d t h a t
to
clear
up
existing misunderstandings.
Topic V1i-C.
P e n s i o n Fund.
In v i e w of t h e f a c t t h a t S e n a t o r Smoot h a d a d v i s e d t h a t he would
not advocate t h e i n t r o d u c t i o n of a pension b i l l at t h e present
time, t h i s
t o p i c was p a s s e d ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Topic VieD.
Securities
i n custody.
left
The C h a i r m a n r e p o r t e d t h a t Mr.
New York)
to
H a r t ( F e d e r a l R e s e r v e Bank of
whom t h i s t o p i c h a d b e e n r e f e r r e d by t h e L a s t c o n f e r e n c e ,
found s u c h a d i v e r g e n c e of v i e w s w i t h r e s p e c t
circular that
report
h a v e Mr.
T h e s e c r e t a r y w a s a s k e d to
a uniform circular,
i n t h e f o r m of
Topic V i - F ,
a
to
a d v i s a b l e to a b a n d o n t h e e f f o r t s
it
he t h o u g h t
t h e proposed unif orm
to
letter
procure
Hart prepare 2
t o e a c h governor.
reserve bank buildings.
Federal
of
Self-insurance
It was a g r e e d to pass t h i s topic.
Topic V i - G .
reserve bank officers
P a r t i c i p a t i o n o f Federal
and emploves
A m e r i c a n I n s t i t u t e of B a n k i n g a f - ~
in
fairs.
The C h a i n n a n s t a t e d t h a t t h i s t o p i c h a d b e e n p l a c e d on t h e p r o gram m e r e l y as
a n d t h a t no a c t i o n was
an i n q u i r y by t h e New York Bank,
requested.
Topic I V .
Go l d p o l i c y .
Governor S t r o n g o u t l i n e d
interest
t h e central
banks
of
several
nations
it
of
a n effort
be d o n e to s t a b i l i z e t h e e x c h a n g e s ,
t h e p l a n p r o p o s e d was deemed t h e p r o p e r o n e t h e F e d e r a l
reserve b a n k s h o u l d u n d e r t a k e i t , e v e n at
although,
i n sore sort
was a g r e e d by a l l of t h e g o v e r n o r s t h a t it
was c l e a r n o t o n l y t h a t s o m e t h i n g must
but a l s o t h a t if
t h e p r o p o s e d p l a n to
Af t e r a g e n e r a l d i s c u s s i o n of t h e p l a n o u t -
to s t a b i l i z e t h e e x c h a n g e s ,
l i n e d by Governor S t r o n g ,
i n some d e t a i l
t h e r i s k of r e a s o n a b l e l o s s e s ,
as Governor S t r o n g p o i n t e d out, t h e o n l y r i s k of l o s s to t h e
Federal r e s e r v e b a n k s w o u l d be t h e f a i l u r e on t h e p a r t of t h e o t h e r c e n t r a l
banks i n t e r e s t e d in
risk,
it
t h e p l a n to f u l f i l l
was u n d e r s t o o d ,
t h e i r mutual o b l i g a t i o n s ,
was more t h e o r e t i c a l
t h a n practical.
It was s u g g e s t e d by G o v e r n o r McDougal
tinue h i s e f f o r t s
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Federal Reserve Bank of St. Louis
t o work o u t t h e d e t a i l s
of
Th a t
t h a t G o v e r n o r S t r o n g con-~-
t h e proposed p l a n w i t h t h e
38
understanding t h a t
if
entire s y s t e m will
be s y m p a t h e t i c
it
c a n be d o n e s o on a
safe a n d workable b a s i s
i n c a r r y i n g it
out.
Group meetings ( See paragraphs 30, 42,
the
( S e e paragraph 87) .
46 a n d 86).
Go vernor McDougal r e p o r t e d t h a t he a n d Governor S e a y h a d met w i t h
the t w o r e p r e s e n t a t i v e s
of
t h e Agents a n d w i t h G o v e r n o r H a r d i n g w i t h r e -
spect to t h e c o n t i n u a n c e of
group meetings;
t h a t t h e representatives
the A g e n t s w e r e i n f a v o r of c o n t i n u i n g g r o u p c o n f e r e n c e s a n d t h a t ,
fore t h e r e was a divided r e p o r t .
of
there-
G o v e r n o r McDougal e x p l a i n e d t h a t t h e
whole m a t t e r h a d b e e n p r e s e n t e d to Governor H a r d i n g ,
who e x p r e s s e d h i m s e l f
as b e i n g f i r m l y opposed at t h i s t i m e to t h e s u g g e s t i o n of t h e governors
that t h e y be p e r m i t t e d te
have i n d e p e n d e n t c o n f e r e n c e s
at
places o t h e r
than Wash ington.
Upon motion of Governor Van Zandt,
it
was
VOTED t h a t o u t of d e f e r e n c e to Governor H a r d i n g ' s w i s h e s t h e
governors s h o u l d n o t at
ings at
this time press t h e i r e f f o r t s
p o i n t s o u t s i d e of
ference t h a t it
Washington,
is i m p o r t a n t
to
b u t t h a t it
Upon m o t i o n of Governor McNougal ,
VOTED t h a t he s h o u l d r e p o r t
tinued,
t h e s e n s e of
have more f r e q u e n t c o n f e r e n c e s
ton to d i s c u s s t o p i c s c o n c e r n i n g t h e o p e r a t i o n of
sense of
is
to p r o c u r e m e e t
it
t h e con-
i n Washing-
t h e F e d e r a l r e s e r v e banks.
was
to G o v e r n o r H a r d i n g t h a t
it
was t h e
t h e c o n f e r e n c e t h a t f o r t h e p r e s e n t g r o u p m e e t i n g s s h o u l d be c o n =
b u t t h a t t h e v a r i o u s b a n k s s h o u l d be r e g r o u p e d by t h e F e d e r a l
Reserve Board.
D i s p o s i t i o n of
Past
Upon m o t i o n of
Governor McDougal,
VOTED t h a t
be recommended to
it
Due P a p e r .
it
was
t h e Federal Reserve Board t h a t
Federal r e s e r v e b a n k s v h i c h h o l d p a s t d u e p a p e r be p e r m i t t e d
to c h a r g e
off s u t h paper at t h e e n d of t h e year.
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Federal Reserve Bank of St. Louis
WT
Topic V i - J .
F u t u r e p o l i c y of F e d e r a l r e s e r v e banks as
salary a
d
j
u
s dt e x m
t r ane c o m
n p eat n s ast i o n .
Each of t h e g o v e r n o r s r e p o r t e d t h e p r e s e n t p r a c t i c e of h i s b a n k
with r e s p e c t
adjustment
to
t h e m a t t e r of t h e payment
of s a l a r i e s .
Upon m o t i o n d u l y s e c o n d e d ,
o' c l o c k . . .
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Federal Reserve Bank of St. Louis
of e x t r a c o m p e n s a t i o n a n d t h e
t h e c o n f e r e n c e a d j o u r n e d at
6: 00
F i f t h Dav' s S e s s i o n ,
Saturday,
October
29
Morning
Gevernors'
S e p a r a t e Conference.
The c o n f e r e n c e w a s c a l l e d to
order
at
9: 30 o' c l o c k a,
m,
Present:
Governors Morss, Strong, Norris, Fancher, Seay, 5
Wellborn, McDougal, Biggs, Young, Van Zandt
and Calkins. e
t h e accounting procedure systems
al
g
Topic VIT-A.
S ur v e y of
Topic Vii-B..
the s e v e r a l F e d e r a l R e s e r v e Banks.
S t a n d i n g Committee on t h e a c c o u n t i n g p r o c e d u r e
between F e d e r a l
of.
Tonic VII-C,
R e s e r v e Banks =
i n
Appointment
U n i f o r m c o s t a c c o u n t i n g in F e d e r a l R e s e r v e
Banks. A p p o i n t m e n t of Committee f o r s t u d y
and revision of current expense reverts to
permit
costs.
t o p i c VEI-D.
of
comparison w i t h respect
to
R e p o r t s a n d S t a t i s t i g e - Appointment of e
committee to c o n s i d e r t h e n e c e s s i t y of
and c o n s o l i d a t i o n of
the various
o r t s
Board a n d T r e a s u r y Department.
These f o u r t o p i c s were d i s c u s s e d as one,
that t h e m a i n p u r p o s e of
e a c h is
of t h e twelve Federal r e s e r v e banks, ences of o n e b a n k might
be p l a c e d at
advices
i
b e i n g apparent
the accounting practices
some method by which t h e e x p e r i -
the disposal
It was s u g g e s t e d by t h e C h a i r m a n t h a t
u n i f o r m i t y in a c c o u n t i n g ,
it
W
t h a t F e d e r a l r e s e r v e banks s h a l l have
some permanent m e t h o d of i n s u r i n g u n i f o r m i t y in
accounting,
unit
of p r o c e d u r e ,
in
of a n o t h e r .
o r d e r to i n s u r e
a n d especially cost
s o m e s o r t of a permanent c o m m i t t e e of
t h e most c o m p e t e n t
sand capable men in e a c h bank s h o u l d be a p p o i n t e d to t a k e j u r i s d i c t i o n
of t h e s e m a t t e r s ,
Upen m o t i o n of Governor McDougal,
i t was
VOTED t h a t e a c h Federal s e s e r v e bank appoint a permanent
committee of t h r e e of i t s o p e r a t i n g men to have j u r i s d i c t i o n o v e r
matters
of i n t r a a n d i n t e r - F e d e r a l r e s e r v e b a n k p r o c e d u r e ;
t h a t one
member of e a c h c o m m i t t e e s h a l l s e r v e as a member of a g e n e r a l com-
mittee of twelve, r e p r e s e n t i n g a l l of t h e Federal reserve banks; t h a t
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Federal Reserve Bank of St. Louis
e
B e
this g e n e r a l c o m m i t t e e s h a l l meet as o f t e n a n d f o r es l o n g as may be
n e c e s s a r y to
work o u t a general p r o g r a m ,
the g o v e r n o r s f o r t h e i r a d o p t i o n ;
general c o m m i t t e e s h a l l
which s h a l l
be r e p o r t e d to
t h a t t h e i n d i v i d u a l members of
this
be c h a r g e d w i t h t h e r e s p o n s i b i l i t y of s e e i n g
that m a t t e r s recommended by t h e g e n e r a l c o m m i t t e e a n d a d o p t e d by t h e
governors,
a r e put i n t o p r a c t i c e a n d f a i t h f u l l y c a r r i e d o u t ,
a n d of
reporting to t h e governors c o n f e r e n c e a l l c a s e s coming to t h e i r -attention where a
Federal
r e s e r v e b a n k h a s f a i l e d to
comply w i t h a n y
approved p r o c e d u r e .
It was u n d e r s t o o d t h a t t h e p l a n to c r e a t e t h i s general
com
mittee of twelve s h o u l d be r e p o r t e d to t h e Federal Reserve Hoard,
and
$0 Wee Mout ted 46 be epnointed ty the. fecapek Régor ve‘Eoard to. take
j u r i s d i c t i o n o v e r m a t t e r s of
procedure;
vised t h a t t h e c o m m i t t e e of t w e l v e w i l l
a n d t h a t t h e y s h o u l d be a d e
be e x p e c t e d to p r o d u c e t h e
re@ults d e s i r e d by t h e Board' s c o u m i t t e s M
See paragraph 85)
Agricultural Legislation. (See paragraphs 4, 11, 43, 47, and 55)
. La) C o n f e r e n c e A c t i o n s Go wrnor S t r o n g r e p o r t e d t h a t he
had h a d a c o n f e r e n c e w i t h Mr.
Anderson,
C h a i r m a n of t h e J o i n t Commis-
sion of Agricultural Inquiry, and had submitted to himevery point
r a i s e d by t h e g o v e r n o r s
i n reference
t o t h e p r o p o s e d p l a n of
Se
tions
Upon m o t i o n of Governor S e a y ,
VOTED t h a t it
a c t i o n in
t a k e n by
it
was
is t h e s e n s e of t h e c o n f e r e n c e t h a t no formal
t h e way of recommending a n y s p e c i f i c l e g i s l a t i o n s h o u l d be
the conference
a t t h i s time.
(b) C o o p e r a t i o n w i t h War F i n a n c e C o r p o r a t i o n -
Report
to
Senator K e n d r i c k .
The C h a i r m a n a s k e d w h e t h e r
to r e p o r t
i t w o u l d be
possible f o r him
to S e n a t o r K e n d r i c k t h a t t h e F e d e r a l r e s e r v e b a n k s in
the
agricultural sections a r e w i l l i n g to do anything and everything
that
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Federal Reserve Bank of St. Louis
42
they c a n to c o o p e r a t e w i t h t h e War F i n a n c e C o r p o r a t i o n in
agricultural
a n d c a t t l e loans,
t h e m a t t e r of
p a r t i c u l a r l y by e n d e a v o r i n g to
misunderstandings t h a t have a r i s e n w i t h r e s p e c t
to
remove
l i n e s of c r e d i t
of member banks,
Governor Young a g a i n r e p o r t e d ( s e e p a r a g r a p h 5 5 ) t h a t
he
has a d v i s e d - v a r i o u s of h i s menber banks by p e r s o n a l c o r r e s p o n d e n c e
of t h e f a c i l i t i e s a f f o r d e d by t h e War F i n a n c e C o r p o r a t i o n a n d t h a t
he w i l l c o n t i n u e to c o o p e r a t e in
All of t h e g o v e r n o r s
in
t h i s manner.
the agricultural sections reported
either t h a t t h e r e was no misunderstanding or t h a t t h e y a r e d o i n g a l l
that t h e y c a n to f a c i l i t a t e t h e w o r k of t h e War F i n a n c e C o r p o r a t i o n .
It was u n d e r s t o o d t h a t G o v e r n o r S t r o n g s h o u l d r e p o r t t h e
s u b s t a n c e of t h i s d i s c u s s i o n to S e n a t o r K e n d r i c k ,
At t h i s p o i n t Mr. G i l b e r t j o i n e d t h e meeting.
Topic 3.
S u p p l e m e n t I I - T r e a s u r y P r o g r a m ( F i s c a l Agency)
Method of a l l o t m e n t on s u b s c r i p t i o n s f o r T r e a s u r y
notes a n d T r e a s u r y c e r t i f i c a t e s , w i t h p a r t i c u l a r
r e f e r e n c e to t h e q u e s t i o n w h e t h e r it w i l l be
f e a s i b l e to a u t h o r i z e a l l o t m e n t s in f u l l on s m a l l
subscriptions.
Mr. G i l b e r t b r i e f l y r e f e r r e d to t h e p r o b l e m of t h e T r e a s u r y
in a l l o t t i n g s u b s c r i p t i o n s
to
Treasury c e r t i f i c a t e s ,
C e r t a i n of t h e G o v e r n o r s e x p r e s s e d t h e i r o p i n i o n s w i t h r e spect
that
to
t h i s m a t t e r and,
a f t e r general discussion,
t h e governors consider
and s e n d to
this question a
Topic 2.
Gilbert asked
l i t t l e more d e f i n i t e l y
h i m in a week or so an e x p r e s s i o n of
to t h e b e s t methods
Mr.
t h e banks'
v i e w s as
of making s u c h a l l o t m e n t s .
Supplement
I I -
Treasury Program ( Fiscal
Agency )
The 1 9 2 2 p r o g r a m f o r t h e i s s u e of Government
Savings S e c u r i t i e s .
Mr.
Gilbert
r e f e r r e d to
the interest
the c o n t i n u a n c e of t h e T r e a s u r y p r o g r a m to
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Federal Reserve Bank of St. Louis
o f the administration
i s s u e Government s a v i n g s
i n
43
securities
and said that
t h e Treasury i s prepared t o maintain t h e
War S a v i n g s O r g a n i z a t i o n o n a b o u t
leact
until
J u n e 30, 1922.
t h e same b a s i s
H e stated,
however,
as
at
that
present,
a t
t h e Treasury be-
lieves t h a t t h e i r p r o g r a m s h o u l d be c o n t i n u e d n e x t y e a r on a s l i g h t l y
different
basis,
and that
i t was t h e i r i n t e n t i o n t o d i s c o n t i n u e
the
cale of
war s a v i n g s s t a m p s a n d t h r i f t s t a m p e , b u t to c o n t i n u e t h e
aa
cale of s e c u r i t i e s r e s e m b l i n g t h o s e of t h e p r e s e n t h i g h e r d e n o m i n a ~
tions,
t h a t i s , Treasury savings c e r t i f i c a t e s ,
of i s s u e so t h a t t h e y w i l l
be s o l d at
a n d to c h a n g e t h e b a s i s
a fixed igeue price with a
maturity
on t h e f i f t h a n n i v e r s a r y of t h e d a t e of i s s u e .
Topic 3
( second h a l f )
Supplement
I I -
Treasury Program
( Fiscal Agency)
Practice f o l l o w e d by t h e Federal Reserve Banks
upon d e p o s i t s o f c h e c k s f o r c r e d i t t o t h e
Treasurer' s a c c o u n t when t h e checks a r e o n o u t - o f town a c c o u n t s a n d a r e n o t s o r t e d b e f o r e d e p o s i t i n
a c c o r d a n c e w i t h t h e t i m e s c h e d u l e s i n e f f e c t at t h e
Federal R e s e r v e Bank.
Mr.
G i l b e r t d i s c u s s e d t h e q u e s t i o n of d e f e r r i n g c r e d i t
checks d e p o s i t e d in
Treasurer.
made
Federal r e s e r v e banks f o r t h e c r e d i t
H e s t a t e d t h a t what
i n t h e Federal
a c c o r d i n g to
he
r e s e r v e banks
t h e usual
d e s i r e d was
s
o
e
the
have assortment
i n order t h a t c r e d i t
time schedule
S
to
of
on
o f the Federal
might
be
given
r e s e r v e bank,
:
:
Each g o v e r n o r commented on t h e p r e s e n t p r a c t i c e of
his bank
and t h o s e t h a t w e r e n o t d o i n g what Mr.
Gilbert desired s t a t e d that they
would l o o k i n t o t h e matter a n d t a k e it
up d i r e c t l y w i t h t h e T r e a s u r y
Department.
At t h i s p o i n t t h e F e d e r a l R e s e r v e B o a r d met in
joint Session
with t h e G o v e r n o r s .
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Federal Reserve Bank of St. Louis
Present:
Comptroller
o f t h e Currency,
Federal R e s e r v e Board,
D.
Harding,
R.
Crissinger.
Piatt
and M i t c h e l l .
Governors Morss,
Seay,
Wellborn,
Strong,
Norris,
McDougal,
Van Zandt a n d C a l k i n s .
Mr. H a r r i s o n , S e c r e t a r y .
Fancher,
Biggs,
Young,
Topic 2
+ Federal R e s e r v e B o a r d J o i n t Program.
Recent D e v e l o p m e n t s i n t h e p a r c l e a r a n c e s y s t e m
and s u g g e s t e d c h a n g e s i n m e t h o d s .
Governor S t r o n g r e p o r t e d to
a c t i o n of
t h e Governors'
Conference
t h e Federal Reserve Board t h e
o n t h e q u e s t i o n of
t h e proposed
r u l i n g by t h e F e d e r a l R e s e r v e B o a r d r e l a t i n g to c h a r g e s t h a t might
be
made by member banks f o r t h e c o l l e c t i o n of c h e c k s c l e a r e d t h r o u g h
Federal r e s e r v e banks.
( S e e paragraphs 48 a n d 52)
Topic 1 - F e d e r a l R e s e r v e B o a r d J o i n t
P I ELER
n g
Efficiency a n d economy in a d m i n i s t r a t i o n of
Federal r e s e r v e banks.
Governor S t r o n g r e p o r t e d t h e v o t e of t h e c o n f e r e n c e w i t h r e spect
t o t h e appointment
of
a
committee
and of a g e n e r a l c o m m i t t e e of t w e l v e ,
the Federal r e s e r v e bank committees,
and a c c o u n t i n g ,
i n each Federal
r e s e r v e bank,
c o m p o s e d of o n e man f r o m e a c h of
to c o n s i d e r q u e s t i o n s
ha p r e c e t a r e
a n d to p r a m o t e e f f i c i e n c y a n d economy of o p e r a t i o n
d y
all F e d e r a l r e s e r v e b a n k s w i t h t h e u n d e r s t a n d i n g t h a t t h e c o m m i t t e e
of twelve be brought i n t o c l o s e c o n t a c t w i t h t h e committee of f i v e to
be a p p o i n t e d by t h e F e d e r a l R e s e r v e B o a r d to c o n s i d e r q u e s t i o n s
f i c i e n c y a n d economy of operation.
( S e e paragraph 7 9 ) X
Governor H a r d i n g a d v i s e d t h e c o n f e r e n c e s t h a t Mr.
M.r M i t c h e l ] w e r e t h e t w o members
of t h i s s t a n d i n g c o m m i t t e e of f i v e ,
one F e d e r a l
R e s e r v e Agent
of e f -
Miller and
of t h e B o a r d a p p o i n t e d as members
a n d t h a t t h e Board would s e l e c t
a n d two Governors
to
camplete t h e c a m i t t e y 1
Group Meetings ( S e e paragraphs 30, 46, 76)
Governor McDougal
Governors w i t h r e s p e c t
to
r e p o r t e d to
t h e B o a r d t h e a c t i o n of t h e
t h e c o n t i n u a n c e of g r o u p m e e t i n g s .
The c o n f e r e n c e c o n c l u d e d w i t h a g e n e r a l d i s c u s s i o n of t h e
plan o u t l i n e d by G o v e r n o r S t r o n g to s t a b i l i z e f o r e i g n e x c h a n g e s .
( See p a r a g r a p h 7 5 )
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
At 1: 00 o' c l o c k p.
m. t h e conf e r e n c e a d j o u r n e d s i n e d i e ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER