Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, August 25, 1914, 3:00 PM, Volume 1

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70

At the adjourned meetinc of the Federal heserve Board held at the office of the Board at 3 p. in.,
On Tuesday, August 25, 1914.

L:r. C. S. Hamlin

Er. Adolph C. Miller

Mr. Frederic A. Delano

:La'. W. P. G. Harding

Lr. John Skelton 'Williams

Mr. Paul M. Warburg

Lir. C. S. Hamlin, Governor of the Board, acted as
Chairman of the meeting and Mr. .-.-.. 0. .TIlliott as JecretL.,ry.
The Committee aul)ointed to submit a proposed amendment to the Federal 2eserve Act made its report and after
general discussion the following resolution was offered,
seconded and duly adopted:
RESOLVED:

That the Federal Reserve Board recom-

mend to the Secretary of the Treasury and to Congress that
the two paragraphs-of Section 13 of the Federal Reserve Act,
on page 15 of the Act, as it appears in Public Document No. 43
63d Congress, H. R. 7837, and which read as follows:

(A)

tVLAy Federal Reserve bank may discount acceptances
which are based on the importation or exportation of
goods and which have a maturity at time of discount of
not more than three months, and indorsed by at least one
member ban. The amount of acceptances so discounted
shall at no time exceed one-half the paid-up capital
stock and surplus of the bank for which the rediscounts
are made."




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"Any member bank may accept drafts or bills
of e=hange drawn upon it and crowing out of transactions involving the importation or exportation of
(B) goods having not more than six months sight to run;
but no bank shall accept such bills to an amount
equal at any time in the aggregate to more than onehalf its paid-up capital stock and surplus,"
be amended and re-enacted to read as follows:
"Any Federal Reserve bank may discount acceptances which have a maturity at the time of discount
of not more than three months and are endorsed by
at least one member bank and which are based:
(A)

(a)

Upon the importation or exportation of goods or

(b) Upon the domestic sale or cOnsignment of goods
to be delivered to purchaser or consignee by or before the maturity of such acceptances."
"Any member bank may accept drafts or bills of
exchange drawn upon it and growing out of transactions involving the importation or exportation of
goods and having not more than six months sight to
run, or drafts or bills of exchange having not more
(3) than three months sight to run, drawn upon it and
based upon the domestic sale or consignment of goods
to be delivered to purchaser or consignee on or before
the maturity of such acceptances, but no bank shall
accept such bills to an amount equal at any time in
the aggregate to more than one-half its paid-up capital stock and surplus without the express permission
in writing of the Federal Reserve Board."
The Secretary was directed to notify the Secretary
of the Treasury at once of this recommendation by the Board.
On motion the meeting adjourned to meet again at
10:30 a. m. on Wednesday, August 26th.

Secretary pro tem.

Chairman.
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, 1914
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