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7(Ig t a regular meeting of the ?ederal Reserve Board held in the office of the Board on Monday, ipri1 16, at 11 a. in., PAILS1:2;T: 1 Mr. Harding, presiding, T:r. Miller Mr. aarburg, Yr. Mr, Delano, icr. dUlls, Secretary. Mr. Hamlin, The minutes of the meeting of the Executive Committee held on ,pril 13 were read and, on motion, approved and the action therein set forth ratified. Governor Harding stated the situation with reference to a proposed guarantee of deposits provision for which had been recently brou3.ht forward in the Senate as An amendment to the proposed bill amending the '-'ederal deserve :et. Dis- cussion ensued, and, on motion, the matter was referred to the Executive Jommittee for the formulation of a report to the Board. The Secretary of the Board presented for ratification a summary of note issues authorized by the Executive Committee, under the regulations of the Board, as follows: *7'1114.4 Ti F. R. Bank 5's Minneapolis: (Shipment) .4)160,000 New York: (Shipment) 1,000,000 10's i6.00,000 20's .640,000 100's 4200,000 .400,000 2,000,000 1,000,000 2,430,000 Chica7o: (Release) 1,040,000 960,000 800,000 960,000 V. Philadelphia: (Shipment) 2,000,000 St. Louis: (Aelease Cleveland: (Shipment) 50's 400,000 400,000 540,000 1,200,000 800x() 400,000 1:00,000 The note issues thus authorized were, on motion, formally approved. Governor Harding reported that Governor J. S. 'Liner of Kansas City had informed him that the Commeroe Trust Company of Kansas City which was contemplating making application for admission to the System, did not care to have a special examination, but would wait and be examined in the regular course of events. He also stated that Chief Examiner Broderick who had returned to the city,advised against a special examination. Governor Harding presented a letter written by former Governor E. C. Stokes of 7ew Jersey, now prceident of the Lechanics TTation.,1 Bank of Trenton, addressed to the Comptroller of the Currency. This letter had been referred by the Comptroller to the Secretary of the 'reasury, and by the latter to Governor Harding. In it the writer (former Governor ,Stokes) suo;gested that the bonds issued wider the new Government loan, should be endowed -ith the circulation privilege. Governor 7ardir<,- Jaso read a note aritten ey the comptroller of the Currency to the Secretary of the Treasury stating that under certain conditions he believed the bonds should have this privilege, and also a letter written by himself (Jovernor Harding) to the Secretary of the Treasury in v-hi?,h he (lovernor 7-rding) expressed the view th7At it would be most uniise to -lire this circulation privilege to crly of the new bonds. Discussion of the mtter ensued, and the Board ananimouely agreed with the view expressed in Governor Harding's letter addressed to the Secretary of the Treasury, requesting hi -n to add a postscript to that effect, and ordering the action taken recorded in the minutes. GovernorHarding read a letter addressed .to Senator Page with reference to Section 3 of Senate Bill 7o. 6 re- 8,99 latin,c7 to the power of state banks to carry balances in Federal reserve banks and to clear checks through them, in which he set forth tli,t the nuthority therein granted was purely voluntary, there being no compulsion upon the State banks under the provisions of the proposed legislation. The secretary of the Board presented a draft of a letter addressed to the ;omptroller of the 3urrency authorizing the shipment of additional notes to subtreasuries to make up deficiencies in ;11otments, and to be held in stock there as follows: c400,000 100's St. Louis: • 60,000 10's inne.ipolis: (to be held in stock at the subtreasury in ChicaPp) 10's 50's 100's motbl 40,000 200,000 400 000 ,:;640,000 Dallas: (to be held in stock at the Subtreasury in St.Loais) 10's 40,000 On motion the letter was approved for transmission to the '.3omptroller of the Curre "Y. letter from ederal deserve geiit il1s with ref- erence to proposed changes in the method of reporting certain items in the form ,7iving the condition of member banks and in miking reports to the ComptrolLr of the Currency, was read (letter dated April 14). 41fter discussion the secretary of the Board was directed to write !jr. ,ills to the effect that the Board was indisposed to rce the recommendation suggested by him. letter from the :omptroller of the L:arrency addressed to Governor Ilardi:f; and transmitting _ form of circular proposed by him to ip :int to member banks, with reference '1 • to the mode of reportin_; t'liir rk_1(rv, was read aloud, -nd after discussion referred to the Thvtrnor with rower to act, the attitude or the Board, llovr, Av(rL, to the transmission or the Proposed circJlar. A letter from Aderal deserve :ent . ellborn ai ing .the calling of. a pres conference for the purpose of popularizing the ?ederal reserve system, was read J.nd noted. The Secretary of the Board read a letter from Messrs. 401 Bernhard, Scholle & Co. with reference to a proposed change in the mode of making bankers' domestic acceptances. The letter was referred to the '7ommittee on investments. It letter from governor Aken with reference to the savings bank situation in Yassachusetts as affected by the tax exemption of 7. S. Bonds, was read and referred to LI.. Hamlin. letter from governor Seuy v:ith reference to various details of the method of issuing the proposed ?rovernment loan, was read and ordered cirJulated. letter from :r. E.Z.:. Pringle with reference to the quo tion whether 7'edera1 reserve banks could act as custodians of security protectim7 deposits of member banks, and opinion of Counsel thereon, was read and, on motion, referred to the Committee on Law for report. A letter from Federal Aeserve rent:'artia of :t..14ciais 7ith reference to the status of the Ct. r,ouis gnion 3ank as a member of the '?ederal Reserve Fystem, was read and noted. letter from the Forthern Trust Company of Chico ;:ith reference to its status under the Clayton Act should it become a member of the Feder.A. deserve System, was referred to the Committee on Clayton The question of the method of reporting renew-,al acceptances was reported upon by r. iarburg, who recommended that the renewal acceptances should be reported by mail biweekly. On motion the report was agreed to. report of Mr. darburg with reference to the inser- tion of a provision imposing taxes on State bank checks, in legislation now pending in the House, was read and noted. Delano called attention to the fact that the present assistant to the Federal reserve agent at Kansas City had recently surrendered his connection -with certain nonmember banks as the result of suggestions originating with the Board, ar Q2700 to suggested that his salary be advanced from 3000 per annum. On motion the matter was refer- red to the Committee on Staff for recommendation. The Secretary of the Board read a letter from governor Fancher addressed to Mr. Hamlin opposing the idea of a stamp tax on bank checks as a means of raising revenue. The letter was noted. On motion the report of the examination of the Federal Jeserve Bank of Boston submitted by Chief Examiner Broderick was referred to the Committee on Operation of 403 the Federal Reserve Burik-nfriton. Informal diScassionlvith reference to plans for handling the new Government, loan ensued. 'Governor Harding called attention to the fact that the Federa1:Advisory00unci1 would meet in the 3oard Room on Tueddayi April 17, at 10.30 a.m. On motlonat 1.03 p. m. the Board adjourned, to meet on ; - .:ednesdv, Lpril 16, at eleIen_aoll,. APPROVED: Secretary.
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