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1235 At a meeting of the Executive Committee of the Federal Reserve Board held in the office of the Board on Monday, December 6, at 11:00 a. m., PRESENT: Mr. Hamlin, presiding Mr. Miller Mr. Warburg Mr. Mills, Secretary. General discussion of the situation as to clearing was undertaken, and the Secretary read a letter just received from Federal Reserve Agent Martin of St. Louis expressing the view of the St. Louis Reserve Bank as to the situation. On motion it was voted that the Secretary reply by stating that the Board had already voted to ask the Attorney General about its power regarding clearing, and also to inform Mr. Martin that the„statement made by Governor McDougal of Chicago to the effect that the Board had approved a plan of deferred credit and deferred debit, was erroneous. Mr. Hamlin brought to the attention of the Committee the fact that a vacancy in 'the Advisory Council existed in Boston, and that there was doubt as to the proper method of filling it. It was 1_236 agreed that he should write to Mr. ?organ saying that in such cases elections should be carried out by the new boards of directors which come into office on January 1. On motion it was voted to authorize the issue of Federal reserve notes to the Federal Reserve Bank of Minneapolis to the amount of 02,000,000, application for the same being duly approved by the Committee on Issue and Redemption, in the following denominations: denomination 10 20 50 :11440,000 800,000 560,000 200,000 hr. Hamlin filed with the Board a letter from the Comptroller of the Currency giving the facts regarding recent action taken by him in connection with the financing of sisal hemp imported from Yucatan on a aommission basis. hr. Hamlin presented a letter from the Comptroller of the Currency with respect to complaints recently made by Federal Reserve Agent Curtiss of Boston in regard to hr. James D. Brennan, I Chief IlLtional Bank Examiner. Discussion ensued with reference to the conditions at the Kansas City Reserve Bank, and on motion, Mr. A. C. Eiller was authorized to communicate with Mr. J. Eiller sumesting that the lat- ter, at his convenience, visit -lashincton for conference. The Jecretary of the Board presented couies of the recent examiners' reports as to the accounts Of the reserve agents at Boston and Cleveland, and raised the question whether such copies should be presented to the agents themselves, or not. After informal discussion, it was agreed to take no action in this matter until a later date. . Warburg inquired whether Counsel mi, ;ht not be instructed to begin the preparation of amendments to the 2ederal Reserve Act relating to domestic acceptances and the establishment of branches of na-. tional banks in the cities and counties in which said banks are located. It was informally agreed that this instruction should be given by nr. Warburg. Warburg called attention to the advisability of having Federal reserve agents reminded to find out the situation with respect to the problems of establishing foreign agencies through the efforts of the banks in their respective districts, as suggested at the recent meeting with reserve agents. The Secretary said that such an inquiry was already being sent out to reserve agents. Er. Warburg called attention to the desirability of shortly preparing a formal report relating to the whole foreign agency question. At the request of Er. Warburg the 13ecretarY or read the essential portions of a letter from Govern Strong of New York respecting the question of condiIndia. tions surrounding the importation of goods from It was agreed that the Secretary should draw up a letter to be suggeated to the State Department as suitable for transmission to attaches and commercial parts representatives of the United States in different the of the world, calling attention in said letter to in fact that American banking institutions were now position to do foreign business 3ucce5sfu4y. On motion at 12:40 p. in. the Committee adjourned. Jecretary. APPROM: Chairman.
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