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At a special meeting of the Federal Reserve Board held in the office of the Board on Monday, April 5, 1920, at 11 PRESENT: The Mr. Mr. Mr. Mr. A.m., Governor Miller Hamlin Moehlenpah Emerson, Assistant Secretary. Business was presented and disposed of as follows: The Governor presented for approval of the Board, program for the conference with Governors of Federal Reserve banlz, beginning April 7, 1920. Approved, Mr. liller voting "No". Li.. Miller expressed the opinion that conferences with the Governors should not be opened except in the presence of the Federal Reserve Board. Memorandum dated April 5th by General Counsel, submitting an opinion covering rediscounts by Federal Reserve banks for State member banks, when part of the capital of such State member banks is allocated to departments of such banks. Approved. The Governor reparted statement of the New York clearing house association as of close of business April 2d, and the condition of the Federal Reserve Bank of New York at the close of business April 3d. Letter dated March 71st from 1::r. James F. Caldwell, President, First National Bank, Nashville, Tenn., on the subject of discount rates of Federal Reserve banks, and general discount program of the Federal Reserve System. Ordered circulated. Telegram dated April 5th from the Federal reserve Agent at San Francisco, explaining the reasons why that Bank had recommended to the Board the adoption of the next to lowest bid for the steel construction work for its new bank building. • Referred to the Governor for procurement Calkins, of further information from Governor at the Conference of, who will be in at 7th. Governors on April Letter dated April al from Governor IcDougal of the Federal Reserve Bank of Chicago, advising that upon approval of the Federal Reserve Board and upon recommendation of their Counsel, they would proceed with the dismantling of their bank building, as recommended in their letter of T'arch 19th. Noted. Telegram dated April Zd from iederil reserve Agent at Dallas, recommending for that Bank the rate of 5-1/2,1 on rediscounts of bankers' acceptances. Approved. Tele,ram dated April 3d from the Federal Reserve .:.gent at Dallas, recommending additional space for the Houston branch of that Bank, and the renovation of such space to suit the needs of the branch on a cost plus basis, advising that the total expense would be inconsiderable. Approved. - Memorandum dated April Eth by General Counsel, submitting for approval of the Board a draft of letter for transmittal to the Federal eserve banks on the subject of adver- tisements of State member banks. Approved. emorandum clated Afril 3d by 7r. Emerson, suggesting the de:I,..A.bility of securing from the Secretary of the Treasury an ex-ression of opinion as to the feasibility of retirinE excess collateral deposited to secure Federal Reserve bank notes maturinL; during the month of April in the amount of consisting of special one year 2 certificates of indebtedness. The Governor reported that this matter had nreviously been referred to the Secretary of the Treasury in connection with communication from the Federal Eeserve Agent at St. Louis, and the Secretary of the Treasury had advised that the power to issue and redeem certificates of indebtedness to secure Federal Reserve bank note circulation was vested in him under Section 5 of the Pittman Act, and that he did not deem it feasible to reduce the Federal reserve 1)ank note circulation at this time by retirement of special certificates of indebtedness, believing that contraction in currency circulation should be through the medium of Federal Reserve notes. Voted to refer the matter to General Counsel for an expression of opinion as to the authority of the Secretary of the Treasury under the provisions of the Pittman Act. Memorandum dated April 5th by General Counsel, advisin that on 3d an opinion was rendered in the injuction , suit of Georgia oo=tiv bans aLainst the .Cederal71106f1C an of Atlanta in connection with par collections bj the Reserve Lan7K, denvine the plaintiffs' action to remand the case to 3tate Court, anJ ,1-tinE the defeild.ant's to disiss th,7i bill 'of 1:otod. transactioos, pur- Thc,, Gow;raor rerorteJ suant to :.thorIty heretofore v.,773te,.7., in.lit aiunor bank , ra.:u b: U0voet nrol,issorLi 110 too bj certific"-es of indebt(Lless, a:2j 5-1/2:7 on 1,:q7er 6ecl.lred b:LLertj lionai and Victor'1.,otes, as follos: Date rv . ." ,y) nnn r rmo 1,1() Apr.lst it Louis an2rt..:1:i01000 7,510,0T) Clevclana 11-15 doIo T.A.thin 15 etas 1,oted. datod April 5th from the 7.eecier„,..1 :::eserve ent at San Franeisco,,advisins that the Javincs Uniuti Lank Trust',,S;n1"-.),aaj, the 1,:erca;Al1u Trust Copray, all of,ja, members of the ;:ederal -,.1.7er the 1:lac. of the laV.. Y:Lett7t nx?Inaious of t7.1 Ean' and the 1.:ercanti1e tT,(:, first two of which arc 2;,;:.,, t.om, intend to .30'11.olidate -,-.,11Xner, in vie'v: of the '1•:t, they are in a satisfactory condition, it will be necessary to examine , -the consolidated hank for membership, or thet' the Mercantile Trust Company, the non-member 1,„Zrz, consolidation, will be sufficient. Referred to the Governor with authority to advise Lir. Perrin that s',-oe satisfactory cove-x.1_2 the are reports of ()....2:_ination t. ffieient T,e will it t7o member banks, bef2n :Company Tri.. Mercantile :Ae only the ;o1i4ation. At P.,11., on motion .e'meetin was adjourned until 3 o'clock this afternoon. At the meeting was Bd with the following members present: The Governor Mr. Miller Mr. Hamlin chienpah Mr. Mr.Znerson, Assistant Secretary. The Covornor reported that he had taken up ...-Ath , General Counsel the authority of the 3ecretary of the ,Treasury under Section 5 of the Pittman Act in connection 1:..ith the issuance and retireuent of one year Treasury certIficate6 of indebtednesstO secure Federal reserve bank note cire-c,lation, and advised the Board that GenerL1 Counsel had infod that entire poter in t'ais matter was vested by Taw in the 300retary of the Trcasury, and was solely Letter dated ril 3d from Mx. t iL Jirction. Ia_.-11Lel, Controller - U of 1-.;.,vents, Federal Reserve Bank of New York, advisixl,„ that foreign banki,,g corporations doirc business under aL,runQnt .ith the Federal Reserve Board, provided for in Section E of the Federal Reserve Act, desire the Federal L.Jserve hoard or the iederal reserve Board throu3.11 the 2ederal Reserve Ban:c. of New York, to wire Shanghai daily certain silver quotations for the use of all of such foreign banking corporations doinc, business there, all expenses in connection with cabling to be reimbursed by those corporations. On motion duly seconded, the governor vas authorized to advise Lr. enzel that the Board sees no objection to the Federal Reserve Lank York undertaking to perform this sLrviee of for these corporations; also to advise hi.1 to proceed with the preliminary arrangements. II - :eserve Letter dated Larch 17th from the Federal 4 Agent at New York, on the question of where a Federal Leservo bank buys bankers acceptances from a member bank with that member bank's endorsement, whether this paper shouLl be classed as a rediscount and figured in the amount of the rediscount linc): such bank. Ordered circulated. Letter dated April 1st from the Comptroller of the Currency, advising that from time to time National banks request permission to reduce their capital stock, and at the -7same time are borrowing from Federal Reserve banks and city correspondents, and requesting the views of the Eoard as to whether or not permission should be granted such banks to reduce their capital stock. Eeferred to the Governor with authority to advise the Comptroller of the Currency that the Board does not consider it wise to permit a bank to reduce its capital when it is evident that all of its existing capital is needed in its business. The Governor reported that I:A.. Ia)ehlenpah's term as a member of the Executive Committee expired April 1st, and that owing to the resignation of 1.1r. Strauss thare were now two vacancies on the Executive Committee. On motion duly seconded, it was voted to appoint Lr. =or as a regular member of the Executive Committee for the quarter ending June 30, 1920, and to appoint rr. Hamlin as a member ad interim of the Executive Committee, pending the appointment of a ViceGovernor of the Board. g'.emorandum dated April 3d by Lr. Wyatt with respect to the Clayton Act application of 1;:r. Charles A, Hinsch and other common directors of the Fifth-Third National Bank and the Union Savings Bank Trust Company of Cincinnati, Ohio. Deferred to the Clayton. Act Committee for the purpose of ascertaining the percentage of stock of the Union Savings Bank Trust Company owned by the shareholders of the Fifth-Third :National Bank. -CA7plication of the First '.,7tate Bar.21‹. of. Garfield, Garfield, W.:.. , .hington, for. :1-krifeer.....7.,ip in the Federal Peserve Cstern. on 3tto bank of the 01500 dT conferen flictin statements of the Federal Eeser .r. •- ; : :o• .0f T‘. of n:..ports 0.7 • 1: I recommenliL rlduciar powers, Ii:rminute Look a Approved. 1,ated April 4th, -1 -,..q2.071-nenlinn. minute Isoe: as A1roved. Da ed April 2d Iic ir stool.: at Feden_l ;:rth in the auvIliry f tIJ late. ,40O recomridinL approval of salary of per annual for 1,r. George ii. Smith as National Ban1c "Examiner in the Fourth iederal :Reserve District. Aprroved. DL, ted April 1st,7-,-,yji.-.: _,'.17,provLil of in3rc3c3 in .,., /..1.1ries --: Examiners as follows: 07 :::.tional Fro:r. To Nam,7: :4,5,000 ',..,._.., 7---mpson 4,800 Hi,ean 3,900 2-- _. • :3 7,60,0 7,900 E. J. ,:,,., .,.-i,_.1. 701 7,000 ..0. •i• . T.. -.. 2,400 7,000 L.field 2,400 ,fl.,700 2,400 3,090 3,609 ',1'..;-r,..1 .,-2. 1:..2:-.1 31 000 ,-,r,,n --I .,.., (. 7,701 Theas :-.. -_,,s ii r., ;,... .:.. No6,:. - 0n Approved. II, -VDated I.:arch 31st, reconmendine approval of increases in salaries of employees of the Division of Federal Reserve Issue and Redemption, effective April 1, 1920, as follows: To Name From ,7;1,500 .:.1,440 Searing T.Dashiell 1,260 1,200 1.'artha J. L:artin 1,32^; 1,260 Susan V. Snead 1,200 1,2Z) Julia KInsolving 1,D 1,200 Fannie P. Lleade Han P. Tharp 1,40le 1,14) 1,020 Dorothy M. Feeder 1,14 -) 7,,020 Lary E. Sheffer 1,140 1,020 Lilybee C. Cobb 1,140 .,20 11 Ada F. Grafford 1,140 1,r)20 Annie 1,7,.. Drewett 1,140 1,0Z0 Eva Y. Devine 1,g20 1,080 Yyrtle S. Reale 1,'-)20 1,000 C. B. Zuesenberry 1,:I")) (Add 3240 bonus) Thos. J. Liurray .Approved. Dated April 3d, rec.-- 7enlin the aprointment of J. Vion Papin lo -)e Federal Reserve Agent's as :eservo 1:ank of St. Louis, Departl*.nt, at a salar, of :7,1Y) per annum, effective April 15, Iprroved. Dated April 2d, recommendinc incref,e'in salary of 1.1r.W.r.'.7hee1wrieht at the Federal :reserve Bank of richmond from ,:;i2,2c)0 to !:;3,000per ,111111.11TI. Approved. Dated A ril 2d, At 3-50 sulnAtting schedule of increases in salaries of ev,t-lvees of the Transit Department, Federal :eserve Ea:17,c of Richmond, effective A.rril 1, 1020. r.y., the meetine foljournetl. Approved: . Assistn Gover ir.
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