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390 At a special meeting of the Federal Peserve Board held in the office of the Board on Saturday, April 17, 1920, at 11 A.M., PRIS-1;T: The Er. Er. Mr. Mr. Governor Miller Moehlenpah Chapman, Secretary. Minutes of meeting of the Board held April 16th were read, and on motion approved. Business was presented and disposed of as follows: The Governor submitted for approval, articles of association and organization certificate of the First Federal Foreign Banking Association organized under Section 25(a) of the Federal Reserve Act, dated January 1, 1920, and amended Aipril 16, 1920; together with form of preliminary permit to authorize the corporation to commence business. Approved. The Governor stated that he had discussed with the Chairman of the Board in advance of today's meeting, the meeting with the Federal Advisory Council to be held on May 17th. On motion duly seconded, the Governor was , authorized to notify the President of the Federal Advisory Council that the sole topic for discussion at that meeting will be the continued credit expansion in the United States, and the best and most feasible methods of holding such expansion within bounds. On motion duly seconded, the Governor was authorized 391 to invite in conference with the Board and the Federal Advisory Council on I:ay 16th, three directors from each Federal Reserve Bank, to discuss the general credit situation; also to express to the Federal Reserve Agents the desire that the three directors representing each Bank be Class A directors. Letter dated April 16th from the Assistant Federal Reserve Agent at New York, reviewing business conditions in the Second Federal Reserve District. Noted. 7=777 OF Ca=2= NO, 1: Dated April 17th, recommending admission of State institutions as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the individual reports attached to each application. Approved. Dated. April 16th, recommending chances in stock at Federal Reserve Banks as set forth in the auxiliary minute book as of this date. Approved. Dated April 16th, recommending approval of applications for fiduciary powers as set forth in the auxiliary minute book as of this date. Approved. Other business was presented and disposed of as follows: The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations; rate 51 39‘,) on paper secured by certificates of indebtedness, and at current rates, as follows: Amount With Bank Rediscountir Date Apr.16th Chicago (Cleveland (New York Apr.16th Pichmond (Dallas (New York Maturities 45,000,000 within 15 days tr 10,000,000 5,000,000 5,000,000 11-15 days Noted. The Governor reported the reserve positions of the several Federal reserve Banks as at close of business April 15th, and the status of rediscounts between Federal Reserve Banks as of the same date. Letter dated April 15th from the Chairman, Federal Reserve Bank of New York, submitting for approval, increases in salaries, effective May 1, 1920, of employees of that Bank whose anniversaries of employment fall during the month of April, 1920. Approved. Letter dated April 15th from the Controller of Administration of the Federal Reserve Bank of New York, advising of the appointment of the following employees by that Bank at salaries indicated: Wesley S. Twiddy, Joseph L. O'Connor, John H. 7.-ichern, John D. Blair, Noted. 4,000 per annum 3,000 If 2,500 111 2,400 Pi 393 11 lT frlm Assistant Feder=,1 -c- - ) ,(110- approvol of 1.ry '11,..on, in charL;e of the -ur Collection ler ., .rt':(lit of that 2.rproved. Thu ,1 ovt.rnur o-.31mitted for aj_rov-tl, irft of lcttf-r b-," him dated ;1,1'11 1Gta aldre:ed to the _First-iiiit;crort t-1...t the Board ar, to . 1.,scrIle to 2rovez of its aL)nlier.tioll for fouNier" ,;hares -.....: 77 at Feuer.: loreiLn . '1)5 per share. Toyed. The Governor• subnlittea for approval, letter ly Mr dated April 16th addressed to kr. Norman F. 31,:ccnt, Prosillont, • , Citizena Cowmeteial Trust.Compan7,- Euffalo,-Eew York, LraLtinIg' the permission of the Berd for Mr. Clement to serve a director of the zir.-A Federal Foreign Beniric Letter lated April 1.7t71 fro1.1 the Golernor, rederal IM,L;erve 13ank of :.:an;as nf request1/1 ap-oroval by the Boarl the paymeta by the iof of a rental of .;70 11,,ae:r r.onth for a p-fivate *Arc bet,-±eJ. %DJ its 0111.:,,homa 391 -5City Branch, and suiTestin the possibility of installing wireless telegraph equi-ment for use between Federal 7eserve Banks and Branches. Voted that the Governor advise Governor Liller that uatil further notice from the Board, it is desired that his Bank utilize the commercial telegraph and telephone wires in its transactions with the Oklahoma City Branch, and as far as possible to avail itself of mail facilities. The following motion made by Mr. Eiller at the mrot_ IUH of the Board on April 14th v;L,s brought up: "Eoved that the Board do not arrrove discount rates as submitted b: the Federal Reserve Banks of Cleveland and Atlanta, but on official review and determination, fix the rate on paper of all maturities, secured by United ltates certificates of indebtedness, Liberty bonds and Victory notes, at 5-1/2. tl After discussion, 1.r. 'Cilliams moved as a substitute for hr. L'Aller's motion, the following: L'ioved that the Federal Reserve Board notify all Federal Reserve Banks that pending further action, the Board is willing to approve a rate of 5-1/4Z on paper of all maturities secured by United 3tates certificates of indebtedness bearing interest at the rate of 5-1/4'4, and desires the present rate of 5(7, to continue on paper of all maturities secured by United :tates certificates of indebtedness tearing a rate of interest lower than 5,4. Er. i1liarns' motion vas carried, :tr. 1:iller voting "No". Telegram dated April 16th from the Chairman, Federal Reserve Bank of Kansas City, submitting for approval the -6Ilan of ffaduated discount•rates to be effective 3a.turda;,-, A.pril 17, 1(3,7.0: veraL-o - tci Pasi line to be deter:lined 10:: th a d r eein: less .). resorve for the 7!--, 6 - 1us neaor b&rdc •-•7t Tv the to be multhis too; eaital su'osriptIons to tiplied 1...c. an basic amount Advances in amOullts discount rte a7-)11sable Increasinu to c act be sto to pal)er of all maturities, Led. UJI0V a differential of one-half of one peroct, as follows: One-half of one percent above noral rate on acco.Ymodations extended above the normal blc, 11.2:1e, up to anj includinz 25;1 Of suoh T)asic amount. One p.ert above nonnal rate for next .3 of the t.sic subsequent suri equTA1 to 2( sntount. on-ha_lf percent above the .ncanal One rate for the next subsequent sum equA. to :.7 % of the basic amount, and so on at an increasin rate of one-half of one percent for each unit of 25. additional, i.e.: The normal rate shall aplqy on paper Ciscounted for a aei fc or in J. in al amount; equivalent to its lasic line, but thereafter, the rn 4„c shall Increase nroLresV/ sively one-half of one -)erf3ent on each subsequent Lam advanced equal to 71:' or f- otion thc:eof of thr, basic meialm! provided, however, amount of the r-c-,lier sec6red by lans of borrowin:-s the that while as a considered '311,)11 be oblittions war Thirc.rri.lent ( --,art of the sum constitutinc the normal basic amount or any afoouLts in CYCA-D'Zs thereof, the rroressive rates shall 1:ot, aY,p1,7 tn meml_r icaWK notes securc7. uy "reasury certificates of indebtedness, Liberty bonls or ':ictory notes actually ow .td by borr)71.nr- member 1,.1C:a on trril 1, lbD, rovi 7e1 further, that proirossivc rate shall not attach to the paper now under discount, but new offerlics other t'l.:21 those seed L Liteit: ..,i)ti;S and certificates owned on L-ril 1, 19:2.0 shall be subject to the 2roLressive discount rLtes, to of the offurinc nember. be based upon the. then 1 -7Moehlenpah moved that the plan be approved as submitted by the Federal reserve Bank of Xansas City. ra-. =or moved to amend by omitting the exemption of member banks' notes secured by ' Treasuiv certificates, Liberty "r.)7)nds and lictory notes actually owned by the borrowing member bank on April 1, 1920. The motion to amend was lost, and the motion prevailed, Yr. Miller not voting. At 11-50 ,..,.r., the meeting adjourned. ,s12' Secretary. Approved: ---_/ ---Governor.it7 96
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