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A meeting of the Federal Reserve Board was held in the office °f the Board on Tuesday, August 16, 1921. at 10:35 a.m. PRESENT: Governor Harding Mr. Miller Mr. Mitchell Mr. Crissinger Mr. Hoxton, Secretary. Minutes of the meeting of the Board held August 9th were read and on motion approved. The Governor reported rediscount transactions, member bank Pr omissory notes secured by Goverment obligations, rate 6%, as follows: pat e Bank rediscounting With August 8th Dallas Alagust 9th Richmond Allgust 10th Dallas Boston New York Boston "gust 12th Richmond Iguet 12th Dallas New York Boston August 12th Minneapolis AAUgt2E t 15th Atlanta Vagt1 St 15th Richmond t 15th Minneapolis Ni York Boston New Yo Ni York Amount Al 000.9000 5,000,000 2,000,000 1,000,000 10,000,000 2,000,000 1,000,000 1,500,000 600,000 5,000,000 3,500,000 Maturities 11-15 days 11-15 days 11-15 days 1-90 dys.(Com) 11-15 days do 1-90 dys.(Com) 11-15 days 1-90 dys.(Com) 11-15 days do The Governor reported the reserve positions of the several Reclel'al Reserve banks as at close of business August 8, 9, 10, 11. 13, olad the status of rediscounts between tle Federal reserve banks as of the Sallie dates. Letter dated August 10th, from the Governor of the Federal ReEIE"e Bank of Minneapolis. requesting wproval of the Board for the -2- establishment by that Bank of a maximum penalty rate of 10% for deficient reserves of menber banks. Appn)ved. Letter dated August 10th, from the Governor of the Federal Reserve Bank of New York, advising the Federal Reserve Board of the intention of that Bank to pzoceed with letting contracts for the " 111Pletion of the new bank building. Governor Harding was requested to advise the Federal Reserve Bank of Ni York that the Federal Reserve Board intezposes no objections to that Bank's proceeding vith the contracts in question. Letter dated August 8th, from the Acting Deputy Governor of the Federal Reserve Bank of Dallas, advising of certain action taken 13Y the Board of Directors of that Bank at its meeting August 6th, with a view to reaching an agreement in those matters ensuing from the 4. 'allure of the First National Bank of Hearne, Texas. Governor Harding was request ad to advise the Federal Reserve Bank of Dallas that the Board intezposes no objections to a settlement on the part of the Federal Reserve Bank of Dallas of the matters in controversy, along the lines indicated in Mr. Emerson's letter. Letter dated August 8th, from tle Secretary of the Treasury fcrmal notice that the tine of payment of any special certit•leatee of indebtedness issued in favor of the Treasurer of t1-1) United States, maturing on or after August 20, 1921, and prior to August 20, 1922, is extended in the case of each sith maturing certiv -Leate one year from the date of such maturity. Also, advising -3- that Copies of this notice have been sent from the Treasury of thie United States to the Comptroller of the Currency and to the Governor Of each Federal reserve bank. Noted. Letter dated August 1st, from Mr. Albert Strauss, suggesting that the Board make public the figures covering the reports of foreign "change operations which were secured by the Board during the time that such operations were under its supervision ani control. Governor Harding was requested to instruct the Director of the Division of Analysis & Research to compile the material suggested in Mr. Strauss' letter and to submit the compilation to the Federal Reserve Board for its inspection with a view to possible publicat ion thereof. Letter dated August 10th, from the Federal Reserve Agent at Chicago, expressing a wish to secure two additional employes to assist, on the part of the Federal Reserve Agents' Department, in Passing upon applications for loans made to the Federal Reserve Bank Of Ohicago. Referred to Governor Harding, with the request that further information be obtained. Letter dated August 11th, from the Chairman of the Federal Res.. vrve Bank of Boston, requesting approval of the action of the 13(Ial 'cl- of Directors of that Bank in appropriating the slam of p5,000 the relief of employes who, through sickness or other causes, rraST be Of in need of financial assistance, and authorizing the cashier that r -4- to vcq to the Govemorand the Chairman the said sum of ,'3'5,000, to be 1°811e1 by them from time to time for such relief, in accordance with Ch arrangements as they may deem advisable in individual cases, and di recting that every six months a report shall be made to the Board Of Directors of the condition of said fund. Approved. Letter dated August 10th, from the Chairman of the Federal /lese rve Bank of Dallas-, recommending adjustment in salaries of certain °f the junior officers of that Bank. Approved. Referred to Governor Harding for reply. Letter dated August 11th, from the Chairman of the Federal lIeserve Bank of Richmond, transmitting recommendations for certain BalarY adjustments authorized by the Board of Directors of that Bank, ill accordance with the plan of anniversary adjustments previously 8.131roved by the Federal Reserve Board. Appro ved. Governor Harding suggested that the Federal Reserve Board fix Oct Ober 25th as the date for the next Joint Conference of the Govern(*a alla Federal Reserve Agents of the several Federal reserve banks. Upon motion, October 25th was so fixed. With reference to the application for reduction in reserve Ilecilliranents for certain outlying banks in the city of Chicago, Gove) r Harding called attention to the action taken by the Federal ileserve Board at the meeting of August 9, 1921, whereby these appli- -5_ cations were approved, with the understanding that the approval would be effective upon the affirmative vote of five members of the Board, tour menbers having voted at the said meeting of August 9th. Mr. Miller and Mr. Mitchell announced their affirmative vote in this matter ani the authority for the reserve requirement reduction was ordered. Letter dated August 10th, from the Chairman of the Federal Reserve Bank of Atlanta, transmitting a list of salaries of employes of that Bank as of July 1, 1921, with proposed adjustments indicated. Approved. Letter dated August 11th, from the Chairman of the Federal Ilesc3rve Bank of Minneapolis, reporting upon the Group Conference held °4 the 8th of August by the Federal Beserve Banks of San Francisco, Xaasas City and Minneapolis. Ordered circulated. Letter dated August 13th, from the Chairman of the Federal Re" 8 Bank of Minneapolis, transmitting copy of a statement given by him to the press on August 12th and issued by him with a view to straightening out misapprehensions as to the course of the Federal ReBank of Minneapolis in dealing with the rediscount rate. Ordered circulated. Governor Harding stated that the Board of Directors of the 41erel Reserve Bank of Kansas City had unrier consideration the purse of a certain lot in Denver, for the purpose of a branch bank blIl-44ng, said lot to cost $350,000. -6- Upon motion, the expenditure of so large a sum as 350,000 was disapproved, and it was the sense Of the meeting that an expenditure of about 125,000 would meet all reasonable requirements. Governor Harding stated that the Board of Directors of the Federal Reserve Bank of Atlanta were contemplating the purchase of a lot in Birmingham, with a view to the ultimate erection of a branch bank building in that city. Noted. No action. Letter dated August 11th, from the Federal Reserve Agent at Dallas, enclosing, with favorable recommendation, the application of the Southmest National Bank of Dallas for authority to make accept4:4ces up to 100% of its capital and surplus. Appro ved. Memorandum dated August 11th, from the Assistant Secretary of e Board, requesting authority for the temporary employment of two Mdl comptometer operators, the employment to run for not ex- ceeding ten days, and at salary at the rate of (1640 per annum each. Approved. Memoraddum dated August 11th, from the Chief of the Division f RePorts and statistics, requesting authority for the appointment of 111'. Stat R. Grossman as Technical Clerk in the Division of Reports and istics, at an annual salary of l560.A Approved, upon favorable recommendation of the Assistant Secretary. Mr. Mitchell advised the Board that upon the request of the Partment of State, he had assigned his Secretary, Mr, Leonard, to that Departrrent for the purpose of assisting in compiling preliminary data for the Disarmament Conference, and that therefore Mr. Leonard Will be absent from his post of duty with the Federal Reserve Board fel. a period of several months, said. absence to be without pay. Five letters dated August 9th and 15th, iespectively, from the C°IiiptrollEr of the Currency, requesting the Board's approval of the ecalowing salaries for the following National Bank Examiners: Mr. Mr. Mr. Mr. Mr. Wm. F. Sheehan, 9th District: Frank L.Thomas, 12th " Henry B. Hane, 4th Win. B. Hamilton, 6th Wm. H. Baldridge, 9th " 3,000 per annum. 5,000 do 4,000 do 4,000 do 3,000 do Approved. ilZPOlm OF COMMITTEE NO. 1: a",eci• August 9th, Recommending changes in stock at Federal reserve " 12th, banks, as set forth in the auxiliary minute book as of this date. Approved. batea A —11gust 15th, Recommending action on applications for fiduciary powers, as set forth in the auxiliary minute book as of this date. Approved. At one o'clock p.m. the meeting adjourned. Secretary.
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