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At a meeting of the Executive Committee of
the Federal Reserve Board, held in the office of
the Board on Monday, April 8, 1916, at 11;30 A. Li.,
PRESEr,T:
Mr. Harding, presiding,

Mr.

111r. Warburg,

Mr. Willis, Secretary.

Mr. Harding presented business as follows:
A telegram re trade acceptances received
by nim from Wallace D. Simmons and his reply to the
same.

The answer was approved.
A copy of t.

report of the Commercial

Xational Bank of Washington, D. C., and a letter on
the subject from Federal Reserve Agent Hardy; also
letter of his awn to Federal Reserve Agent Hardy on
the same subject.

Discussion of the condition of

the bank ensued and the letter for transmission to
Mr. Haray was approved.

In this letter request

was made for the detail of the auditor of the Federal
Reserve bank to examine the institution.

Mr. Hardily;

further stated to the Committee that this was the
first occasion on which he had had any information of
the condition of the bank.
letter from Governor McDougal, re the dis-

tribut ion of acceptances and the purchase of such
paper from the New York bank without endorsement,
was noted.
A wire from federal Reserve Agent Ramsay
Of hansas City, re the recent schedule of rates.
It was agreed to fix their rate on trade acceptances
at 4e, and the 90-day commercial rate at 4-3/45.
A telegram from Federal Reserve Agent Perrin
announcing the adoption of the Board's suggested
rates; read and the rates approved for San Francisco.
It was voted that the Committee recommend
that whenever a bank which has discounted on the
lb-day rate makes renewal, the federal Reserve bank
may apply a rate not exceeding the 90-day rate.
A letter from federz,1 lieserve Agent Rich,
giving data regarding the current subscrrptions of
banks to the last Liberty Loan; - read and noted.
A letter from Federal Reserve il:ent
advising against the chartering of banks with segregated savin:s departments; - ordered circulated.
A letter from federal .rteso..ve Agent Ramsay
Of Kansas City, re the appointment of D. C. I.:eigs
as Assistant federal Reserve Agent at Denver; -







read and referred to the Kansas City Committee.
A letter from Federal Reserve Agent Ramsey
(Dallas) re the conditions on the directorate of
the El Paso branch; - read and noted.
A letter from Federal Reserve Agent Ramsey
(Dallas) re the earning assets of the Dallas bank; read and noted.
A letter from Federal Reserve Agent Wills
of Cleveland, re discount rates; read and rates approved as follows:
Member banks' collateral notes secured by Government obligations.
15 days
41
Customers' notes - 16-90 days
41110
Member banks' collateral notes secured by commercial paper.
15 days
4-1'"?
Customers' notes - 16-90 days
4-3/4%
Rediscounts agricultural or livestock paper:
90 days to 6 months 5.110
Rediscounts trade acceptances
15 days and 15-90 days ..
Bankers acceptances

4% minimum.

A letter from Governor =Dougal, re private
telegraph service between Federal Reserve banks; read
and noted.

-

A memorandum from Counsel, re the use of fac-

similes of gold certificates, etc., and suggesting
the undesirability of such action, was read and the
Governor requested to reply accordingly.
The question of the assistant secretaryship
of the Board

14:118

considered, but no action was taken.

Discussion of the California State banking
situation ensued.
A proposed letter re the Sears & Nichols
Canning Company of Chilicothe, Ohio, and their bank
credit accommodation, was read, modified, and ordered transmitted.
A report of Committee No. 3, re the application of E. E. Ames under the Clayton Act, was presented and referred to the Governor with power to
act along the lines suggested by the Committee.
On recommendation of Committee No. 2, acceptance powers to 1006 were granted to the Dedham
National Bank of Dedham, Massachusetts.
,A report of Committee No. 2, recommending
the admission of certain state institutions, was
presented and accordingly the following banks were
admitted on terms named in each ease by the Committee:




Power City Bank, Niagara Falls, N. Y.
360 shares in the Federal Reserve Bank of N. Y.




American Bank, Baltimore, Md.
240 shares in the Federal Reserve Bank of Richmond.
Farmers & Merchants Bank, Roxbury, Idaho.
33 shares in the Federal Reserve Bank of San Fran.
A circular letter, suggesting examinations
at the several Federal Reserve banks designed to
ascertain Whether all possible precautions are being taken to protect the Government against loss
on deposits made in subscribing banks through Federal Reserve banks was ordered transmitted.
On motion, at 1:10 P. M., the Committee adjourned.
APPROVED:

Secretary
Chairman