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a251 At a regular meeting of the Federal Reserve Board held in the office of the Governor on August 8th, at 11 PET: Harding, presiding ir.'arburg LI'. Hamlin Jr. Liller Er. Broderick, Acting 3ecretary. i'ILNT ALSO: F.I.Hent, Division of Foreign .:xchange. r. Rent made a statement as to the cooperation of his Division with the ia.r Industries Board, War Trade Board and the National Foreign Trade Council with particular reference to the export of certain commodities to foreign countries. (21r. rent then withdrew from meeting). :r. Warburg made a statement with respect to the work of the Gold -xport Committee, with particular reference to proposed plan for securing the cooperation of the safe Deposit Companies in discouraging the use of their facilities for the hoarding of gold; with a limitation of the gold in the arts and the adoption of some means to draw such gold into the Federal ileserve Banks. Lr. ,,arburg also stated that he had been advised, by the Federal eserve Bank of New York that the Bolivian overnment had opened its account with that bank by the deposit of A,000,000. The minutes of the meeting of the Board held on August 6th were read and on motion approved as amended. :1255 The minutes of the Gold Export Committee held on august 7th and 8th wore presented for approval and the action therein set forth ratified. Reports dated August 8th, with respect to the discount rates at the Federal Reserve Banks of Richmond, Dallas, Minneapolis, Kansas City and Cleveland were reported; no changes recommended. (Lt this juncture La.. ';illiams joined the meeting) The following matters were presented and acted on: La'. Fleming, Assistant Cashier, Federal Reserve Bank, Cleveland, as Chairman of the conference held in the Board Boom on August 7th, at which representatifes of several Federal Reserve Banks were present, filed with the Board recommendation that the limit for the drawings of Federal Reserve Lxchange Drafts be increased from 3,250 to 45,00U and that the Federal Reserve Banks holding Federal Reserve ex' change drafts of other Federal Reserve Banks be permitted to deduct such drafts from total credits reported each day to the Federal Reserve Board in the Gold Settlement Fund clearing. It was further recouriended that all Federal Reserve Banks be given immediate credit for Clearing House items the day received from other Federal Reserve Banks. It was further recom- mended that the Federal Reserve Board be asked to have a more detailed analysis made of the float situation in each Federal Reserve Bank for such period as the Board may deem advisable. The recommendations made by the Committee were approved by the Board and the Acting „;ecretary was instructed to prepare , a circular letter to be sent to all Federal Reserve Banks pursuant thereto. A letter from 1r. i. D. Vandiver, Assistant Treasurer addressed of the United States at St. Louis, dated July 30th, therewith to the Comptroller of the Currency, and enclosing tary of the a copy of a letter previously sent to the Secre sary Treasury, with reference to the advance of funds neces ve notes to pay postage covering shipments of Federal Reser to Banks. It was voted that, subject to the approval of that the Board Counsel, the Assistant Treasurer be advised his sight will arrange with Federal Reserve Banks to honor said postage or drafts for such purpose or to advance the funds therefor. dated Letter from Federal Reserve Agent at Now York, for short August 2d in re rate on long term paper discounted re-submitted to periods on so-called repurchase agreements suspend action the Board for consideration; it was voted to lying question. on the matter Pending consideration of the under (During the discussion of this matter :r. ;illiams withdrew from the meeting) 21257 14 -4- ::emorandum from :Sr. Jacobson, dated August 8th, recommending that in accordance with circular letter of Aut;u$t 7th sent to all Federal Reserve Banks, in future the item "Iiatio of gold reserves to net deposit and Federal Reserve note liabilities combined" be omitted from the weekly consolidated statement, and the following two ratios shown: 1. Ratio of total reserves to net deposit and Federal Reserve note liabilities combined. . 2. Ratio of gold reserves to Federal Reserve 35 aside setting after on, circulati notes in actual against net deposit liabilities. Approved. r. niller stated that under the California laws State banks were required to carry a percentage of their reserves in gold or legal tender notes, and that he believed it would be possible to have the tate institu- tions agree to deliver the gold notes to the Federal Reserve bank at .;an Francisco in exchange for legal tender notes; he recommended that this course be pursued and that the Federal Reserve Banks should absorb all expense in connection therevdth. Recommendation approved and matter referred to Governor with power. The Governor stated that he was in receipt of acceptance of offices of 1.1essrs. T. L. Riddick and S.L.Eagland, 1258 -5- heretofore appointed Directors of the ”emphis Branch of the Federal Reserve Bank of St. Louis. The Governor stated he as in receipt of telegram of protest against appointment of L:r. Heflin as 1:anager of Memphis Branch; also a telegram from Federal Reserve Agent at St. Louis, stating reasons for the appointment. The Acting Secretary was directed to telegraph the Federal Reserve Bank of ;.A. Louis authorizing them to announce organization of the Branch. • A letter, dated August 5th, from the /Jercantile Bank of the Americas of New York, requesting that Nicaragua be designated as one of the countries from rwhich long usance drafts may be drawn on the United States for the purpose of creating dollar exchange. Acting Secretary directed to con- firm that Nicaragua has been so designated. Letter dated August 5th, from James 1,1. Bouden, Jr., expressing favorable opinion upon proposed appointment of James L. Zunts as Class B Director of the Federal Reserve Bank of Atlanta, and recommending the appointment of Dr. P. H. Saunders as a Director of the New Orleans Branch; voted that Dr. Saunders be appointed a Government Director of the New Orleans Branch of the Federal Reserve Bank of Atlanta. Governor Harding made a statement with respect to a request made by him as Managing Director of the ;iar Finance 125S -6- Corporation that the various Federal Reserve Banks act as Fiscal Agent in connection with advances made to bunks to meet agricultural and stock raising requirements, and submitted a letter dated August 6th from Governor of the Federal Reserve Bank of Richmond, commenting upon the plan proposed. Letter.dated August 6th from Federal Reserve Agent, Richmond, with respect to rulings by the Federal Reserve Board in re drafts drawn for the purpose of financing sales to the Allied Purchasing Commission. The Governor stated that he would take up with Counsel. A letter dated August 6th from Federal Reserve Agent at Richmond, with respect to the possibility of L:r. A.H.Dudley, 4.ssistant Federal Reserve Agent, being called in the draft; no action taken. Reports of Committees: No, 1 Following changes in the Board's staff were approved: Miss Mary E...'.verett, Federal Reserve Issue and Redemption Division, at salary of 475 per month, effective August 3d, under authority of Board's letter dated June 5, 1918. Liss Mary A. Riordan, Federal Reserve Issue and Redemption Division, increase of salary from v9J0 to ,;1,020 for the year 1918. Miss Lvelyn Hewes, Division of Research Section, Division of Foreign xchange, at salary of 4;900 per annum, effective August 8th. 260 -7Reginald M. Hodgson, National Bank 1;xaminer at Atlanta, Ga.,at salary of 2,400 per annum. No. 2 Dated August 8th, recommending admission of'State institution as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the individual reports attached to application. Dated August 6th, letter from Federal Reserve Agent at Boston, in re application of James Prendergast for permission to serve under the Clayton Act as Director in three Boston institutions, heretofore declined (original application dated Aug.7,1916), with request that consideration of the case be reopened and that he be permitted to act as Director in to institutions; referred to Executive Committee with power. Dated August 8th, application of George F. -,est, Portland, Maine, for permission to serve simultaneously as Director of the Biddeford 7ationa1 Bank, Biddeford, Maine, and as Director of the Portland National Bank, Portland, Maine. Approved. Now York Committee: Chairman Warburg reported back report of .Lamination of Federal Reserve Bank of New York as of close of business Juno 1, 1918. Voted that pending appointment of new Committees, the functions of the existing committees be transferred to the Lxecutive Committee. At 1 2.L., the meeting adjourned. i/tetA.1(.4 Acting Secretary. Approved: Gov°
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