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291
At a regular meeting of the Federal Reserve
Board held in the office of the Board at 11.10 a. m.
Monday, April 5th
PRESENT:
7.1r. Delano, presiding,
Er. Warburg
Mr. Williams
Er. Harding
Mr. Willis, Secretary.
The minutes of the meeting of 11.00 a. m.
Friday, April 2d, were read and approved.
The application of the Federal Reserve Bank
of New York for f2,960,000 of Federal Reserve notes, duly
recommended, was approved as follows:
Five dollar denomination
;11,000,000
Ten dollar denomination
1,000,000
Twenty dollar denomination
960,000
Applications for 110 shares of capital stock in
Federal reserve banks, duly recommended by Mr. Harding,
were approved as follows:
DISTRICT No. 1.
Citizens National Bank
Peoples National Bank
Shares
Poultney, Vt.
Barre, Vt.
1
.1
DISTRICT No. 3.
Farmers National Bank
Madera National Bank
Selinsgrove, Pa.
Madera, Pa.
3
3
292
Shares.
DISTRICT No. 4.
Peoples National Bank
Farmers National Bank
First National Bank
Second National Bank
Greenfield, Ohio.
Arcanum, Ohio
Carey, Ohio
Lexington, Ky.
12
2.
2
5
DISTRICT No. 5.
First National Bank
Elkins National Bank
Oakland, lid.
Elkins, 7. 7a.
1
6
DISTRICT NO. 6.
Henderson National Bank
First National Bank
First National Bank
Huntsville, Ala.
Ashland, Ala.
Manchester, Tenn.
3
18
3
Chicago, Ill.
Westfield, Ill.
Pocahontas, Iowa
Colfax, Iowa
Corydon, Iowa
4
3
1
2
3.
Clovis, N. flex.
Winfield, Tex.
Ladonia, Tex.
Santo, Tex.
Ringling, Okla.
Broken Bow, Okla.
1.
DISTRICT No. 7.
Irving Park National Bank
First National Bank
First National Bank
First National Bank
First National Bank
DISTRICT No. 11.
Clovis National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
15
1
13
1
DISTRICT No. 12.
First National Bank
First National Bank
Coalings, Cal.
Rexburg, Idaho.
1
4
The resolutions submitted by certain directors
of the Federal Reserve Bank of Richmond, relative to the
action of the Board regarding the salary of the Governor
of that Bank, were further discussed and on motion referred to nr. Harding to draft a suitable letter on the
subject for official transmission to the Bank and also
a letter of explanation to be transmitted to Federal Reserve Agent Ingle.
Mr. 7illiams presented to the Board correspondence between himself and Federal Reserve Agent J. Z.
iller of Kansas City and Federal Reserve Agent Ingle of
Richmond, with respect to the status of the clearing Process at the Federal Reserve Bank of Kansas City.
On re-
quest, the correspondence was read to the Board.
A report from Federal Reserve Agent Ingle with
reference to the method of safeguarding and getting access
to the cash of the Bank was read to the Board by the Secretary.
As no mention was made in the report of the ques-
tion of storing a considerable part of the gold of the
Bank in 'Vashington, said gold to be replaced by order certificates, it was voted that Mr. Harding take up this
ouestion with Federal Reserve Agent Ingle.
A formal monthly report from the Federal Reserve
294
Bank of Boston was presented to the Board and referred
. to the member in charge of the Boston district (Mr. 71arburg).
A report of the Special committee, (Mr. Delano
and Mr. Harding) with reference to the present method of
receiving, counting and issuing Federal reserve notes,
was read to the Board.
On motion, that part of the re-
port relating to.salaries was separately considered by
the Board, the recommendations for increases being as
follows:
Laurence W. DeMotte, from clerk at :.;1,200
to senior vault clerk at ,A,600.
Julian H. Addison, from vault clerk at .1,000
to junior vault clerk at :,1,200.
On motion it Iva3 voted to approve the action
of the Comptroller taken at the end of March in fixing
the salaries of the employees named at the figures specified as of April first.
The remainder of the report, relating to the
general method of receiving, counting and issuing Federal
reserve notes, was referred back to the Committee on Staff
•
and Organization by which it was prepared, for further consultation with the Comptroller of the Currency.
A letter from Federal Reserve Agent Jay relative
295
to the bookkeeping and record operations involved in the
substitution of gold for rediscounts with Federal reserve
agents, was presented to the Board by the Secretary and
referred to 7:r. Delano.
A letter from Jenator Henry F. Hollis, recommending the use of a blue seal instead of the present red
seal on Federal Reserve notes, was read to the Board, and
on motion the Secretary wa3 directed to obtain the views
of Assistant Secretary nalburn with reference thereto and
report the same back to the Board.
A plan proposed by Federal reserve agent Wills
of Cleveland, regarding a method of disposing of Federal
reserve notes unfit for circulation was read to the Board
and on motion referred to the Chairman of the Committee
on Issue and Redemption.
Letters of the Counsel of the Board addressed
to the Acting Governor of the Board with reference to the
. conditions of
issue
of Federal reserve bank notes,were
read and after discussion of the question of converting
2% securities into 3's, it was voted that the sense of
the Board is that conversion may take place at any time
from now onward, but that the actual securities bearing
370 cannot be issued until after July 1, 1915, owing to
296
the lack of an available appropriation for preparing
them prior to that date.
It was voted to remind Fed-
eral Reserve Banks that when conversion of 23 into 31
securities is at any - time made, the power of taking
out circulation on such securities cannot again be regained.
Mr. 7Arburg road to the Board a letter from
?ederl Reserve Agent Jay with reference to the attitude of the Board of Directors of the Federal Reserve
Bank of New York regarding the membership of State banks
in the Federal Reserve system.
and read to the Board
Harding ('resented
the draft of a proposed circular relating to t.te enforcement of Section 19 of the Act, in so far as relates
to the continued transaction of banking business by member banks whose reserves are below the required figure.
After general discussion of various pending
matters the Board adjourned to leet at 11.00 a. m. on
7ednesday, April 7th.
A
OVED:
Secretary.
@FedFRASER