The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
'11'• r`Nork_i` MEMORANDUM OF CONFER:TOE According to prearrangement a conferenee was held today, April 30th, 19239 in the office of the Federal Reserve Board at 11:30 a.m. to 5:15 p.m. with a short recess for luncheon. The subject discussed was the proposed esta blishmant of an agency at Havana, Cuba, by the Federal Reserve Bank of BostOn. There were present: Mr. Platt, Presiding Officer Mr. Hamlin Mr. Miller Mr. Crissinger Mr. H. M. Dawes Governor Harding Deputy Governor Case Governor Norri s Governor Wellborn Mr. McCord. Mr. Tioxton, Secretary Mr. Wyatt, General Counsel Governor Harding presented to the Board the reasons why, in his judfrent, the aPplication of the Federal Reserve Bank of Boston should be approved. Governor -Iellborn stated that the Federal Reserve Bank of Atlanta is not 41)151Yingi for an agency in Cuba, but that he could not see what more is needed 1147ana than the furnishing of a supply of aurTency to the Island which the ?ode ' 141 Reserve Bank of Atlanta is now doing through the Jacksonville Branch. 1'. Case of New York doubted the advisability of the Federal Reserve Systea, going into international banking as a cornmarcial proposition, stated his that the initiative should come from the government of the Republic of ettba with the indorsement of the Treasury and State Department of the United Btates and expressed the thought that the agency might be given a trial, and 4/30/23 _2- that a limit should be set upon the duration of the said trial. Mr. Case also stated that a limit should be placed upon the amount of currency to be carried bY the Havana Agency and observed that the establishment of the agency would 13erin1t the branches of the National City Bank of New York and the First National Bank of Boston to decrease the reserve carried by them from 60% to 10%. Mr. Miller expressed his view that the purpose in establishing the agericY is to keep Cuba supplied with currency and that the buying and. selling of cable transfers and bills are apparently only incidental and undertaken with a view t° Compensate for the ccst of supplying currency. Mr. Miller further expressed he opinion that no unissued Federal Reserve notes should ever be placed outside Of the United States. Governor Norris stated"that the Federal Reserve Bank of Philadelphia cl°68 /lot want to establish an agency, but thotvht it advisable;first, that the 118eneSt be approved in the interest of the Federal Reserve System; second, that the agency should be established as an agency of a.single Federal Reserve bank 14'kiding conflict of management and division of responsibility) but with Fed- Reserve system participation; third, that such participation should offered, `44ing a provision for the allotment of Federal Reserve notes; and fourth, to enable the Boards of Directors of the various banks to determine whether the want to participate that there 'should be a plain statement rade of just It/hat ), -lasiness is to be done by the agency and how.
@FedFRASER