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At a meetini of the Federal eserve Board hold in the office of the Board on Friday, April 2, 1020, at PFESEMT: The Covernor 1ii Mr. Mr. Loehlenf.ah Mr• illjams Yr. Therso...a, Assistant '3o:tpetr,. Minutes of meetiL-s of the Federal 7,eserve 17.oard. held on March 29th and April 1st were read, and on motion aI- T:proved. 71ntxtes of meetinc of the Federal 7.esor7e Board hold 7arch 30th were read, and On I iiovod sanended- Mnutes of meeting of the Ey.ocutive Committee hcl. ou March 31st were road, and on motion azproved. Minutes of meeting of the 77xoc-utive OommIttee held on. April 1st were read, and on notion al,pToved as amended. Business was presented and disposed of as follows: The Governor reported that during his visit to Mew * York on 7odnesday, he met five representatives of commercial banks and acceptance 'houses of New York doing an acceptance business, for the purpose of discussing the acceptance market, 17,„nd. had.. 1,Jso met certain newspaper representatives with. Mr.. Jay, iho rolarly call upon the latter, but that he had made no -c statments vith reference to the 2 on of the Board or of . individual r..01.1ers of the Board in connection with the de— an j volosa_at or ol)eratioh the accertance :!larket, as had been alleged LI certain Mew York Citj newspal.er.z.,. of A1ril 1st. The Governor submitted for approval of the Board, a draft of letter to all Federal reserve banks advising them of the establishment by the Board of a graduated tax on defioiencies if' reserves against deposits of Federal reserve banks. Approved. (At this point Li.. i11iams withdrew from the meeting) The Governor read copy of a form letter used by the Interigitional .3hoe Corporation of St.. Louis in returning checks, drawn on lans not on the Federal reserve par list and not collectible at par, to their customers with request for par exchunge and eyplan-Ltion of reasons therefor; together with certain stickers used In the same connection. Ordered circulated. The Ohairnan of the Clayton Act Committee reported that after reviewing the additional data furnished by 1,:ezsrs. John F. I.:orey and Gerald Hughes, representing the coi=on directors of the InterA.-_tional Trust Company and the First Uational Bank, both of Denver. Colorado, in their application for permission to serve as directors of both institutions, it being contended that such institutions were not in substanti 1 competition as defined by section 11 of the Federal ieserve Lc ; the Coyalttee recontonded to the Lord that the directors be per- mittod to serve both institutions, since it was the belief of the committee that the institutions are net in substantial competition under the -provisions of the section of the Federal 3eserve Act referred to. On motion duly seconded, it was voted to approve the recommendation of the Comittee, 'illiams voting "NO". Telegram dated4ril 2d from the Federal 'Reserve Azeat at Gan adviLic the Board that he had received the 2D'iowinc tele,;ran from Assistant Jecretary of the Treasury Lo:'finL\lell, and that he had comI lied with the instrlotions contained therein in thif., instance, but that he believed si—llar instructions in the future should emanate from the Federal Ileserve Baird rather than from the Treasury Department: "In the event of probable overdraft in Treasurer's account at close of business today, after credit of all items of receipts, please hold open your books for account of Treasury certificates of indebtedness to be issued in name of your bank to cover such overJraft. Please advise me not later than five o'clock your time the amount necessary for this purpose". On motion duly seconded, it was voted to ratify the action taken by Lr. Perrin in this transaction, and to refer the matter to the Governor for cOnsultation with the Treasury Departr-,ent as to the policy to 'be pursued in similar transactions in the future. The GovernorAprt d rediscount transactions, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obliGations: rate 5,-;, on paper secured by certificates of indebtedness, and 15-1/2 on paper secured by Liberty bonds and Victory notes, as follows: 7:ith Bank Redi Date Amount :::aturitied count 1111: Richmond-- Apr.lst i'leveland10,000,000 5,000,000 (Dallas 11-15 days Voted. The Governor reported the reserve positions of the several Federal eserve banks as at close of business I.!arch 31st, and the status of rediscounts between Federal reserve banks as of the same date. EmporTs OF COnIITTEE NO. 1: • Dated April 1st, recommendinrr approval of applications for fiduciary powers as set forth in the auxiliary minute book as of this date. Approved. Dated April 2d, At 12-10 kprroyed: advisin, : ,- of the appointment of nessrs. Clark and 1. S. Pool as Telecraph Operators in the Washincton office of the leased wire system at .•150 per month each, effective April 1, 1920, in accordance with authority cranted on March 11, 1920. Voted. the meetinc adjouroed. A6ristnt
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