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1203 At a meeting of the Executive Committee of the Federal Reserve Board, held in the office of the Board on Friday, August 6 at 11:00 a. in. PRESELT: Mr. Hamlin, presiding Mr. Miller Mr. Harding Mr. Willis, Secretary. The minutes of the Board's meeting of August 5 were read and given informal approval. On motion the committee approved applications for stock in Federal reserve banks, duly recommended by Er. Harding as follows: DISTRICT No. 3. Downingtown National Bank Shares. East Dowingtown,Pa. 15 DISTRICT No. 4. First National Bank City National Bank First National Bank First National Bank Brookville, Ky. Canton, Ohio. Ironton, Ohio. Stockport, Ohio. 3 12 1 1 Rocky Mount, Va. Warrenton, Va. Front Royal, Va. 3 2 3 DISTRICT No. 5. First National Bank Peoples National Bank Front Royal National Bank DISTRICT No. 6. Do Soto National Bank First National Bank Arcadia, Fla. Colquitt, Ga. 22 1 1204 DISTRICT No. 7. First National Bank First National Bank Inwood, Iowa. Greencastle, Ind. 1 Owensboro, Ky. 4 Jackson, Minn. Thief River Falls, Minn. Blair, Wis. 9 3 DISTRICT No. 6. National Deposit Bank DISTRICT No. 9. First National Bank First National Bank First National Bank DISTRICT No. 10. Colorado Springs Nat'l Bank First National Bank First National Bank Colorado Springs, 6 Colo. Holdenville, Okla. 15 21 Cashion, Okla. DISTRICT No. 11. First National Bank Winfield, Texas. DISTRICT No. 2. Lake Placid National Banklake Placid, N. Y. 10 DISTRICT No. 5. Citizens National Bank Hendersonville,N. 0.15 On motion the Board approved application for recom• surrender of stock in Federal reserve banks, duly mended by Mr. Harding as follows: 1205. DALLAS AND KANSAS CITY. National Bank of Commeree Frederick, Okla 54 shares. NEW YORK AND PHILADELPHIA. Bernardsville National Bank Bernardsville, N.J.30 shares. On recommendation of the Committee on State banks the Board approved applications for general executor and trustee powers as follows: National City Bank, Chicago, Ill. First National Bank, Jewell, Kansas. Commercial National Bank, Wahpeton, Iowa. First National Bank, Stanton, Iowa. First National Bank, Lincoln, Wyo. Mt. Sterling National Bank, Mt. Sterling, Ky. On recommendation of the Committee on State banks the Board placed the following applications for trustee and executive powers on the suspended list: Farmers National Bank, Goodland, Kansas. Greylock National Bank, Adams, Mass. First National Bank, Evanston, Wyo. National Bank of Commerce, Shawnee, Okla. First National Bank, Casey, On motion, upon recommendation of the Committee on State banks the Board voted to reject the following applications: American National Bank, Tulsa, Okla. National Bank of Commerce, Pittsburg, Has. 1206 On motion, the following special grants were made. To act as administrator: First National Bank, Bonham, Texas. City National Bank, Colorado, Texas. To act as trustee in certain special cases men- undertioned in its letter in which trusts have already been taken. Central National Bank, Saint Petersburg, Fla. Bank of California, N. B. A., San Francisco Cal. 11134° its special conditions created by the several states in which branches are located. The opinion of counsel relating to the approval of ninth applications for executive and trustee powers in the Federal Reserve District was approved and ordered to go int° effect. Reserve On motion an application from the Federal Bank of New York for an issue of Federal reserve notes ing to 02,960,000 was approved as follows: 05 denomination it 010 " 020 01,000,000 $1,000,000 0 0960,000 On motion a letter received from Federal Reserve prepaid Agent Perrin relative to the rebate on discounts on 1267 notes in the San Francisco district was referred to a special committee consisting of Mr. Harding, Mr. Miller and Mr. Williams. An opinion of the counsel of the Board relative to the question of farm land loans by national banks which are already holding a considerable amount of real estate, was referred back to counsel with suggestion that a further ruling upon the comparative merits of two cases, in one of which cases the bank has taken on excess loans to protect itself after making its authorized loans and in the other of which the authorized loans are first made and the additional loans subsequently taken. An opinion of counsel relative to the form in which Federal reserve notes are to be redeemed at the Option of the bank presenting them was approved and publication thereof authorized. The Secretary of the Board presented a proposed draft of a letter to Mr. T. A. Hague, referred by. Federal Reserve Agent Perrin at the request of the Board. The Secretary was directed to put the matter into letter form and submit it to Mr. Harding and Mr. Miller for authority to transmit it. 1208 Letters and papers relating to tho exchange of 2% for 0 bonds in favor of the e Federal Reserve Bank at Philadelphia were referred to the Board and on motion the letter of Mr. Rhoads and accompanying papers were ordered transmitted to Assistant Secretary Malburn with request for his views on the subject. The Secretary of the Board was instructed to cable Mr. Delano at Panama giving him a brief statement about the general situation of the Board's business and conveying good wishes. On motion it was voted that copies of the weekly gold settlement report be sent to each Federal reserve bank on the settling day of each week. The question of amending Regulation "0" on Fedee eral reserve notes, was ordered referred to the Committ on Issue and Redemption to be taken up with the Treasury authorities. A letter from the Palmier Bond & Mortgage Comrepany relative to the interpretation of Circular 7 was form:Ito Executive Committee and Counsel. On motion the Board ordered purchased one 1209 hundred (100) coides of paper bound National Bank Act for use in distributing to member banks. On Motion the Board authorized the Federal Reserve Bank of Philadelphia to continue holding ; .$25,000 of Oity of Springfield, Missouri warrants. On motion it was voted that paper and memoranda relating to the method of reporting 5;; gold redemption fund held in the Treasury Department by Federal reserve banks should be referred to a special committee for study, saide•committee to consist of Messrs. Harding, Miller and 7illiams. On motion it was voted that the communication from Federal Reserve Agent at Richmond, relative to the Open market purchases of paper be circulated among members of the Board for consideration. A communication from Federal Reserve Agent Miller of Kansas Uity relative to active competition for business on his part, was ordered answered by the Secretary With' the statement, that the general idea of the plan submitted by him was acceptable but that the Board thought it wise to use a reasonable amount of caution and diplomacy in carrying the scheme into operation. The Secretary of the Board presented correspond- ive once from the Federal Reserve Bank of Dallas relat be to the denominations of Federal reserve notes to furnished that bank. On motion it was voted to authorize s of the printing for the Yederal Reserve Bank of Dalla as renotes, chiefly in denominations of 5's and 10's, quested by it. a The Secretary of the Board having presented communioatiOn with reference to the question of small banks, it silver certificates for the Federal reserve was voted to refer the situation to Secretary McAdoo for an expression of his opinion. On motion Mr. John De La Mater was authorized assist to join Chief Examiner Broderick at Cleveland to in the work of bank examination at that place. The Secretary of the Board was authorized to ing to purchase such clippings as he thought best relat expense accounts of the Federal reserve banks. On motion the Secretary was authorized to rename of duce the staff of messengers by one member, the Staff. such member to be determined by the Committee on from The Secretary having presented memorandum Deputy Comptroller of the Currency Kane, relative to 1211 the determination of the eligibility of mutilated Federal reserve notes for redemption it was voted to refer the matter to counsel* A letter from Federal Reserve Agent Ingle with attached papers relative to the redemption of national bank notes at Federal reserve banks was referred to Mr. Harding for such action as he might deem best. On motion it was voted that the Secretary Of the Board send a copy of a tentative letter to Governor Strong of the Federal Reserve Bank of New York, relative to lines of acceptance credit, to Mr. McAdoo and Mr. Warburg accompanying same with a copy of the Opinion of counsel relating thereto, a copy of the Board's letter of July 21st on the same subject, as well as a copy of Mr. Warburg's letter to the Governor of - the Board.. On motion it was voted that when permits for additional powers, under Section 11 (E) are granted to banks they shall be issued as separate permits, bearing date as of the time when additional powers were granted. On motion at 1:45 p. m. the Committee adjourned to meet subject to the call of the Chair-
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