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A meeting of the Federal Reserve Board was held in the office of the Board on Tuesday, December 13, 1921, at 11:20 a.m. PRESMIT: Governor Harding Mr. Platt Mr. Hamlin Mr. Miller Mr. Mitchell Mr. Hoxton, Secretary. Minutes of the meeting of the Board held December 8th were read 101:1 on motion approved. The Governor reported the reserve positions of the several Federreserve banks as at close of business December 7th and 10th, and the status of re.discounts between the Federal reserve banks as of the same 8 The Governor reported rediscount transactions , menber bank proMissory notes, secured by Government obligations, rate fe,-, as follows: Date Dec• 9th Bank rediscountintr Dallas With Amount Maturit ies Boston 1,000,000 11-15 days Letter dated December 12th, from the Governor of the Federal ReBank of Richmond, suggesting that that Bank invest S'75,000 in Govetninent securities, with a view to using the income to pay premiums upon illsurance upon the building. .°100 ,000 Also, requesting authority to set aside as a reserve against possible losses in the loan account of the 134,13k. No action, it being determined to defer reply until the Board has been. apprised of the intentions of other Federal reserve banks with reference to making requests for authority to set up reserves against possible losses. ;"*"4 -2- Letter dated December 10th, from the Secretary of -far, vising that the United States rirev ernment is c ont enplat i21P; making examination of the banking situation in the 7hillipi ne Is1nds, and. sumesting that the Federal Reserve Bank of .F.evr York be designat ed as a depositary of the funds of the 'hillipine qovernment; also, inquirin g if the Flederal 'Reserve 13atik of Hew York would pay curreat mark et interest rates on the deposits Of tix) Alillipine Government. The Governor wL,s reve sted to advise the Secretar y of "viar that there is no objection to the desiglat ion of the Federal Reserve Bank of Hew York as a depo sitary for the funds of the 2hilli pine Gov ernment, with advice that no Federal reserve bank can pay any inte rest upon any deposits. 41 Letter dated December 6th, from the Gove rnor of the Federal Reserve 4 :21k of Cleveland, submittinJ-7 schedule of proposed salary adjustments amon g the officers and employes of that Bank. Upon raption, the letter was referred to I.Tessrs. Platt, I.:11 ler a.rx1 1:itchell, said memb ers being designated. as a special committee to cons ider applicat ions likely to be nude at the end of this year for an to adjust salaries and make char ges against profit and loss. Letter dated December 8th, from the Chairman of the Federal Reserve of Dallas, requesting authority to decl are the usual dividend, as of 1)ecerrber 31st, and authorit y to set up a reserve aminst poss ible losses, 441 authority to charge off as depreciation 2T of the cost of the bank bilildings at Dallas and Houston. Upon motion, the oa;y-Irent of the divi dend was autilor-ized, and. the other matters were referred. to t'le Committee on Salaries and. Charge Offs. 11 i$1 tli -411 -3- letters d:-_,ted December 7th, from the Chairman of the Federal Reserve Bank of San Francisco, requesting authority to make certa in charges aM.inst T)rofit and. loss. Referred to the Committee on Salaries and Cirrge Offs. Letter dated December 6th, from the Chairman of the Federal Reser ve Bank of San Lrancisco, with reference to the policy of the Bank of Italy, San ,erarcisco, in the matter of establishing branches. After full discussion, the nr tter was OrClered. referred to qenral Counsel. Letter dated December 8th, from the Chairman of the Feder al Reserve Bank of San Francisco, requesting for that Bank the authority of the Federal Reserve Board to purchase rinite d States certificates of indebtedness or Victory Notes, in sufficient amount to insure dividends• The Governer was authorized to telegraph Mr. Perrin that the Federal Reserve Board interposes no objection to the purchase by the Federal Reserve Bank of San Frrnci sco of such U.S. certificates of indebtedne ss or Victory :votes. Letter dated December 17th, from the Deput y Governor of the FedReserve Bark of Richmond, requesting the Board to rule in the case "a disacTeement between the Federal Reserve Bank of 'lichrnond and the Ti‘p,„1 'LLeral Reserve Bank of IJew York as to the eligi bility for discount by 'erc.1.1 reserve banks of L]aper of a certa in sugar commission company, 414 Submitting for the Board's consideration a financial statement of the 4.1d. Company* The matter submitted by Deput y Governor ?eple was discussed, but no action taken. Lii -4- The Governor stated that he had received a telephone communication from the Deputy Governor of the Federal Reserve Bark of 1Tetv York, Mr. Case, inquiring if the Board would have objection should the examiners of the Federal Reserve Bark of Ni York share with the examiners of the State of Now York in an examination of the International Acceptance Bark of New York. It was, upon motion, voted that the Board has no object ion to such joint examination. At 1:10 p.m. a recess was taken until 2:30 p.m. In accordance with the terms of adjournment, the Board reassembled at 2:30 , Mr. Crissinger being present, in addition to those who were Present at the morning session. The Governor reported to the Board the arrangements which he had Made with reference to securing additional srace in the Rapley Building, 48 previously authorized by tip Board, and suggested, in order to provide 811tficient space for the Board's force, that the lease upon the quarters the National Metropolitan Bank Building be surrendered only as to a Part thereof. The Governor's arrangement and suggestion were concurred in by the Board. Memorarrium dated. December 10th, from the Board's Statistician, ' l ecommend.ing the discontinuance of the collection by the Federal Reserve 14/ard of statistics covering gold and silver imports and exports, in view c't the fact that these statistics are collected ani published by the Doof Commerce. Approved. tj -5- Memoianium dated December 8th, from the Assistant Counsel, recommending that the Federal Reserve Board require all Acting Assistant ?edema Reserve Agents to execute original bonds in the same form and elnount as is required of Assistant Federal Reserve Agents. Appioved. Memorandum dated December 9th, from the Assistant Counsel, submitting a revised form of the applicat ion required to be filled out by national banks for stock in their resictive Federal reserve banks. Approved. Letter dated November 29th, from the Secretary of the Board of Directors of the Federal Rese rve Bank of Minneapolis, traisrnitting, for the approval of the Federal Reserve Board, a resolution of the Board of Dir ect ors of that Bank, providing for a payment of a dividend for the six rncriths period ending December 31, 1921,' at the rate of 6% per annum, on the paid. in capital stock, payable on the 31st day of December, 1921. Approved. Letter dated December 8th, from the Secretary of the Board of Directors of the Federal Reserve Bank of Cleveland, transmitting for the laPProval of the Federal Reserve Board, a resolution of the Board of Directors of that Bank providing for the payment of a dividend for the six Incnthe period ending December 31, 1921, at the rate of 6% per annum, on the paid in capital stock, said dividend payable on the 31st day of i)ecernber, 1921. Approved. • )( -6- Letter dated December 8th, from the Chai =an of the Federal Reserve Bank of Philadelphia, transmitting, for the approval of the Federal Reserve Board., a resolution of the Board of Directors of that Bank, authorizi ng the PaYrient of a dividend for the period ending December 31, 1921, at the rate °r 6% per annum, payable on the 31st day of December, 1921. Approved. Letter dated December 9th, from the Railway Loan Advisory CommitOf the Federal Reserve Board, recomrrerding approval of the form of Obligation sitmitted by the Seaboard Air Line Railway CoMpa,ny for a loan 1,451,500, in five parts, the carrier electing to take over at this time the fifth part of the loan in the amount of 139,500, under the pro- .tisions of Section 210 of the Transportation'Act, 1920, as amended. Forrnal ly approved; hay ine; previously been a ppro ved by the initials of mombers of the Beard. Letter dated December 10th, from the Railway L0211 Advisory Commit- tee of the Federal Reserve Board, recommending approval of the form of 6bl igat ion submitted by the Alabama, Tennessee and Northern Railroad Oorporfellohl for a loan of :7;399,000, und.er the provisions of Section 210 of the lyikrisportation Act, 1920, as amended. Formally approved; having previously been approved by the initials of members of the Board. Letter dated December 7th, from the Governor of the Federal Reserve taw.. -4.4- of Boston, with regard to certain charge offs contemplated by that I 41k covering building and equipment depreciation. Referred to the Governor for reply. -'7- Letter dated -Decerrber 1st, from the Chairman of the 7 edera1 Reserve Rank of jan Yrarrisco, sucrgesting a modification in the Federal Reserve Board's condition of membership imposed upon state bank applicants. It was th,. sense of the meeting that rr. 7errin's proposed modification of the condition referred to v:ould not be feasible for use generally by the Board, althouoja it might be applicable to state banks which apply for mo-bership from the State of Califernia. Lett' dated December 9th, from the Chairman of the Feder al Reserve Bank of 1Tew York, advising that the Board of Directors of that Bank }lad, subject to the appro .val of the Federal Reserve Board, determined to Permanently employ 'Cr. ..t.'ranc is Oakey, and to drop from his title the word "Acting". Offs. Referred to t he Connittee on Salaries and Charge Letter dated December 7th, from the Director of the Division of 4th.alysis and Research. requesting approval of the appointment of an employe at salary of 1600 per annum, to take the place of another. emplo ye, res gn- ea, Apir o ved. Letter dated December 7th, from the Chairman of the Federal Reserve 13ank of Philadelphia, inquirin,, , if the Board will approve the purchasing 1)\7 that Bank of U.S. certificates of indebtedne ss and Victory rotes. in '?iew Of the decline in volume of that Bank's discount and loan account. It was the sense of the meeting tint the Board will interpose no objection to such purchases in an amount not greater than 20,000,000, aid the rrovernor was requested to make reply to :.7 r. Austin. • -8- Telegram dated December 9th, from the Chairman of the Federal Reserve Bank of Richmond, advising that the Board of Directors of that Bank had., subject to the review and determination of the Federal Reserve Board, fixed the discount rate at that Bank on all classes and, all maturities of Paper at 5, effective at once. Formally approved; having previously been approved by the initials of five members of the Board.. Letter dated December 8th, from the Chairman of the Federal Reserve Bazik of Atlanta, advising of the promotion and salary increase of one etnploye and the temporary transfers of two employes. Approved. Tlemorandum dated December 9th, from Mx. Jacobson, the Statistician Of the Board, recommending that the Associate Statistician be authorized. to attend the meetings of the Arivrican Economic Association and the AmerStatistical Association, to be held in Pittsburgh, Pa. on December 27th to 30th, said attendance to be in an official capacity and at the exlerlse of the Federal Reserve Board. Approved. Upon motion, the Secretary was instructed to advise Mr. Jacobson, the Statistician, that the Board. also approves his awn attendance upon the meetings referred to, said atteniarre to be also in an official capacity and at the expense of the Federal Reserve Board, provided. Mr. Jacob son desires to attend. 1.!emoranium dated December 12th, from the General Counsel, requestthat the Board authorize an expenditure of if375.00 fbr the Corporation TrUst Company's service during the special session of the 67th Coness, covering legislation relative to banking and currency. Appro ved. -9- Letter dated December 7th, from the Deputy Comptroller of the Currency, submitting to the Poard list of the changes made in the rational 13ank Exe.minino; force durin.c month of 7ovember, 1921. 7.oted. 1121)011TS OF COITITTZE NO. 1: Dated December 13th, Recomrrenlinp; charges in stock at Federal eserve Banks as set forth in the auxiliary minute book as of this dat e. Approved. At 4:15 p.m. the meetim adjourned. Secretary.
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