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1003 A meeting of the Federal Reserve Board vas held in the office of the Board on Tuesday, December 14th at 11:20 a.m. PRESENT: The Mr. Fr. Mr. Mr. Mr. . Governor Platt Hamlin Miller Wills Haxton, Secretary. PRES= ALSO: Mr. Logan. Minutes of the meeting of the Board held DeceMber 10th were read, and on motion approved. Minutes of the special meeting of the Board held DeeeMber 10th were read, and on motion approved. Minutes of tiv meting of the 'Executive Committee held December 11th were read, and on motion approved. The Governor xeported the reserve positions of the several Federal eserve Banks as at close of business Decem- ber 11th, and the status of rediscount s between the Federal Reserve Banks as of the same date. The Governor reported rediscount transactions, member bank promissory notes secured by Government obligations, rate 7 and 7c!) on commercial paper. as folloas:- Date Bank redisWith Amount Maturities •countino.: Dec. 11 Kansas City Philadelphia3,503,662.50 11-16 days 1,509,500. 41-46 " Dec. 11 Atlanta Cleveland 1,312,000. Within 90 dys. Dec. 13 Richmond Boston 10,000,000. 11-15 days Doc. 13 Dallas Cleveland 3,000,000. 11-15 " Dec. 13 Cleveland 4,000,000. 11-15 " Dec. 13 Atlanta Cleveland -7,000,000. Mthin 90 dys. 1C04 Letter dated. December 6th from the Chairman of the Federal Reserve Bank of Boston, requesting, authority to pay a bonus to emyloyes in accordance with the recornendation of the Committee on Salaries of the Federal Reserve Bank of Boston; also rrakin7, reconnendat ions as to certain salary adjustments. Upon notion, the Federal Reserve Bank of Boston was authorized to pa y the bonus in accordance with the terms of its recormendation, and. the matter of adjustin salaries was referred to the E7,:ecutive Committee. Special order business: Jolic,7 of the Federal Re- serve Bo.d regarding the administration of the Clayton Act. It was the sense of the Board thq.t pending a general review of the existing pernits* issued to interlocking directors, such permits should be revoked. when issued to executive officers of Banks authorizing their service as directors in other Banks, if such action should_ prove, after further investigation,to be not against the public interest under existing conditions. Special order business: Letter dated Decerber 4th, from the Federal Reserve Bank of Cleveland., enclosing, resolutions adopted. by the Board of Directors of that Bank regarding red.iscounts for the Federal Reserve Bank of Atlanta. Governor Earding submitted. a letter dated December 9th, from the GOvernor of the Federal Reserve Bank of Atlantzi, and a letter of the same date from the Chairman of the Board, stating the' position token by the Atlanta Bank in regard. to the resolution of the Federal :Reserve Bank of Cleveland. This corres-oondence was referred to "Tills, who was renuested to draft a reply. 1C05 -3- 1) 1:iler. moved that the Board take up with the 2eden1 Reserve Bank of 7.Tew York, either by letter or Dersonally, the nutter of the discounting by that Bank of the paper of commission merchants. Carried. LLr. Hamlin was requested to communicate uoon the subject with the Federal Reserve Bank of Row York. 6pecial order business: Disposition of the question of vault construction at the 'Federal Reserve Bank of Boston. :Referred to : , lovernor Harding, with raluest that he prepare a letter along lines developed by the discussion, and report back to the Board. )ro -nosed telegram dated December 14th, to all Federal .Rese-ve Banks, givin • instructions in the matter of furnishing the Board with certain information not later than 10 o'clock ..i'riday morning, on December 24th and December 31st. Approved. Cr'ovemor Harding submitted a draft of a letter to the Chairman of the Senate Comittee on Banking Currency, ex- pressinf: the Board's disapproval of a proposed bill to ammd the Federal 7eserve Let by extending the limit upon agricultural paper from six months to twelve months. Lf)roved. Letter dated December 6th, from the Director of the Diviz,•ion of Analysis c7: Research, with respect to the present 1C06 -4- method of edit Inc the ::onthly Reports. Referred to the Governor with power. 1:emorandizi dated December 11th, from the General Counsel,reconnendinc., a method. of handi.ing applications of :Tational Banks for permission to purchase stock in corporations organized under the Edge Law. Approved. In accordance with memoraidum of Counsel, set forth above, certain :Tat ional Banks, as set forth in the auxiliary minute book as of this date,were on motion authorized to purchase stock in _lre Coro o rat ions. At 1 p.m. the meeting, tipon motion, took a recess until :30 p.m. 2.t 2:45 the Board reconvened, with Williams pres- ent, in addition to those present at the morning session. Mon motion, the election of Class "C" Directors and Branch Bank Directors whose terms of office expire December 31, 1920, and the almointment of Federal Reserve ..'_ :- ;ents in the various districts, was ordered docketed as special order trusiness for next Tuesday, December 21st. Regarding the action of the Board taken at its meting on December 3d, with reference to the issuance to the • Federal R - eserve Banks by the Treasury Department of 2: Treasury certificates in order to prevent overdrafts, Governor Itardinc stated that he had been advised by Assistant Secretary Gilbert that the Secretary of the Treasury aees with the Board that such certificates should bear a rate of 4. 1CO7 furtli-,,r, while t: cf - c it for De,N=.rt!:ent desires isodiate fl i ems ui,on "!ooks C thi: 7oderal -:es:rve an-...12,, the 1c,lr,nces created ty u17.co1l.ected funlz wil7 not be wit .idraym,exceot after consultation with the F.-:(leral --:eSerVe bard. Crevernor r2; su-bmitted to the Board a letter of Dece!rler 9th from the Jecretary of the Treasury, detail inr;. the ixo,7ress whIch has been rade by the Treasuii ')con rtne aat toward increasin: the su-o ply of 7ederal -,,eserie notes, and e oral 1-,eserve Tank notes. Toted. 1-eve rnor ardiub submitted a dra ft of le t ter in re- y to a eoLmunication dated -)eceiler 11th, from the of the '„,enate Committee on Ean::IT-i and Currency, reeuot t.10 Board's views on Lenate Bills 2 and /1563. .11.rxe ved. r2e1egram dated 'iecendier 7th, from the Chairm.n of the 2ederal fleserve Bank of tianta, rogue still': authority tovay bonus mad make c(--..rtain salary adjustments. ...:,pproved as to bonus. ratter of salary adjustments referred to :xec-ot Ivo Committee. Letter dated Dc., ,ceTher 9th, from the C;..airrttui of the 1‘'edera,1 .2eserve Lank of :'3ma 'Francisco, req_uestinr; authority to chari7e off as of December 1, 1'.?2.0 the assessment made against that Bank for additional equiprent to be used in the printing of Federal Reserve notes and Federal Reserve Bank notes. Approved. Letter dated December 11th, from the Federal Reserve Bank of St.Louis, requesting the Board to secure from the Secretary of the Treasury authority to undertake sub-treasury functions at the Louisville, Memphis and Little Rock Branches. Referred to the Governor. Letter dated DeceMber 7th, from the Secretary of the Federal Reserve Bank of Chicago, requesting permission to charge off as of DeceMber 31, 1920, the assessment made against that Bank for the purchase of additional equipment for printing Fed- eral Reserve notes and Federal Reserve Bank notes. Approved. Lotter dated December 9th, from the Chairman of the Federal Reserve Bank of Dallas, requesting authority to employ 1G09 -7- additional. Bank '2xamirers at salaries stated. .Aooroved. Letter dated December 10th, from the Chairman of the :Federal 'Reserve Bank of Dallas, reouesting to charge off as of December 31, 1920, the assessment mac against that Park for the purchase of ad5it lanai equipment to be used in the rinting of Federal `"eserve notes and. Federal Deserve Bank notes. Letter dated December 10th, from the Chairman of the Federal Deserve Ban]: of Dallas, regarainf.; the ad.visabili of abrogating at the present time the practice of purchasing mail transfers. :7,overnor Harding stated that he. had. oreuaced a reply to this lette-. and. gave the gist of his reply, which, 1.4:.)on . motion, was approved. Letter dated December 10th, from the Chairmn of the Federal Deserve Tank of Dallas, regarding the employment of additional counsel, with salary adjustments as stated. Letter dated December 10th, from the Chairman of the Federal Deserve Bank of Dallas, regarding the appointment of Directors at the Dl :.)aso and. Houston Branches. Referred to the 2xecut lve Committee, to be rTorted to the Board as special order business next Tuesday, December 21st. -8- Letter dated Deccraber 10th, from the Chairman of the Federal Reserve Bank of Dallas, announcing the transfer of Ikcrd from the Federal Reserve Bank of Dallas to the Houston Branch, as Cashier of that Branch, with salary as stated. Lporoved. Letter dated December 8th, from the Chairman of the Federal Reserve Balk of :ansas City, reauestinp; authority to charge off as of December 31, 1920, the assessment made against t at Bank for the purpose of additional equipment to be used in the printing of .Federal Reserve notes and Federal Reserve Bank notes. oro ved. Letter dated December 9th, from the Chairman of the Federal Reserve Bank of Kansas City, transmitting resolutions Of the Boa.d of Directors of that Bank, recomnending the withdrawal of the Bank of Goltry, C;:lahoma from the Federal Reserve System. Referred to the Governor fbr reply after conference with Counsel. Letter dated December 9th, from the Chain= . of the Federal Reserve Bank of :"i_meapolis, reirding a proposed new vault for storinz silver and minor coin, made necessary by the assumption b that Bank of sub-treasury functions. Referred to the Governor with power. Draft of letter dated December 13th, from Governor Harding to the Chairman of the Judiciary Committee of the House of Tiepresentat Ives, with resnect to House Bill :1,14488, providing that robbery of a Federal 7.:eserve Bank or a lember Bank, shall constitute a felony under the Federal AlY15roved. Lotter dated December 9th, from the .Lssistant Federal -Aeserve of the Federal Deserve Bank of (Ileveland, requestin- aj.).,,mval, of the appointment of hr. F. 7. L. 7a-e-an ,Ixaminer, at a salary of 4,000. _per min'tri. _ooroved. Letter dated Decenber 9th, from the Director of the 'Avision of .2._nalysis Tlesearch, recommending the apoointment of hiss laud H. Foote for certain statistical work in Italy, t a salary of H900. per annum. .A»12r0ved. Letter dated December 8th, from the Chairnr...n of the Federal Deserve Bank of Dan Francisco, reoort chanc-es in personnel at that Bank, and. certain adjustments of salaries necessary thereby. A.oproved. Letter dated December 3th, from the "levernor of the Federal Deserve Pa.nir of Dallas. transmittin7 coy of tenta- 1012 -10- tive draft of circular letter prepared for submission to the Directors of tat Bank. Referred to the Executive Cormittee. RE?ORTS OF cci1a22. UC. 1: Dated December 11th, Iecormending changes in stock at Fe(aeral Reserve Banks, as set, forth in the auxiliary minute book as of this date. Approved. Dated December 13th, Recommending ChanE;es in stock at Federral Reserve Banks. as set forth in the awdliary minute book as of this date. Appro ved. Dated December 13th, Recommending approval of the appoint'ment of :.7r. Frank J. Callahan as ClerkTypist in the Division of Repor t s and statistics, at an annual salary of ;.)1320. Approved. Dated December 9th, Roc oulmendi ng aporo val of a cplicat ion of :-r. licnry U. obinson to serve at the same time as director of the First 1:ationa.1 :ank of Los 2..noeles, a..ad as di motor of the Union TTational Bank of pasadena, Cal. Appro ved. Dated December 9th,eco,.-1.-.E..ndins a-)provo2. of appllc at on of 7. -r. -:111..not R. va..ns, jr. to serve at the sane tim as director of the 2...merican Trust Company of Bosto11,-ass., and. ais director and vice-oresident of the ...lverett T -ational Bank of 2]verott, ved. -11- 11 Dated Dec. 10th, Recommending approval of application of Mr. E. B. Kluckhohn to serve at the same time as Assistant Cashier of the First Mat ionz....11 Bank of Seattle, WashinTton, and as Director of the Rainier Valley rational Bank of Seattle, 71ashillgton. Approved. Dated Dec. 10th, Recommending approval of application of Mr. Edwin G. Merrill to serve at the same time as Director of the Hanover Thtional Bank of Mew York City, as director of the Merrill Trust Company of Bangor, Maine, and as president aiñ trustee of the Mew York Life Insurance and Trust Company of Kew York City. - Approved. Dated Dec. 10th, Recommending approval of application of Mr. F. L. Lipman to serve at the same time as director of the Union Trust Cornpaly of San Francisco, Calif., and as director and officer of the Viells-Farge revada :rational Bank of San Francisco, California. Di sa.pproved. Dated Dec. 11th, Recommealing approval of application of Mr. John D. Spreckels to serve at the same time as director of the Anu c-lo London Paris 17atiorral Bank of S'n Francisco, as direci:or of the First 7rationall Bank of San Diego, Cal., anl as director of the Union Trust Company of San Francisco. Approved as to Anglo P.: London Paris Math. Bank of San Francisco, and First ratl. Bank of San Diego; or as to First ran. Bank of San Diego and Union Trust Co. of San Franc is Co. Disapproved as to 2',.nglo & London Paris ratl.Bank of San Frair isco and. Union Trust Co. of San Francisco. Reconnencling aporoval of miplication of Dated Dec. 13th, Mr. Eli nitney to serve at the same tine as director of the Union & Mew Haven Trust Co. of Mew Haven, and as director of the Mew Haven Bank. M.B.A.. of Mew Haven, Conn. Disapproved. 1013 fiCA4 -12- Dated. Dec. 13th, Recoonending approval of avolicat ion of Mr. James S. Hemingway to serve at the same time as director of the Union ew Haven Trust rlo. of Hew Haven, Conn., and as director of the Second Hat ional Bank of Hew Haven, n to nn Disapproved. Dated Dec. 13th, Reconznending approval of apolic.z_. ,t ion of Mr. Henry L. Hotchkiss to serve at the sane time as director of the Union and. Hew Haven Trust Co. of Hew Haven, and as director of the Hew Haven Bank, H.B.A. Disapproved.. Dated Dec. 13th. Recon-n,ending approw.1 of application of Mr. Therms Hooker t - serve at the =no time as Erector and vice president of the Union S.: Her; Haven ?rust Co. of Hew Haven, Com., and as director of the 2irst Hat ions]. Bank of Hew Haven, Conn. Dis approved. Dated. Dec. 13th, Recournending approval of application of Mr. Henry F. ..ir;lish to serve at. the same time as director of the Union & Hew Haven Trust Co. of Hew Haven, Conn., and as director of the First Hat ional Bank of Hew Haven. Conn. D is anpro ved. Dated Dec. 13th, 7ecommending a)proval of a Lmlication of G. 3toddard to serve at the same time as director of the Union S.: Hew Haven Trust Co. of Hew Haven, and as director of the Hew Haven Bank, :T. B.A. of Hew Haven. Di sappro ved. Dated Dec. 13th, 'Recommending approval of application of Mr. J. R. Knowland to serve at the same time as president and director of the .2..lameda Mat ionz...1.1 Bank of .11ameda. Calif., and as director of the First Tational Bank, of Oakland, Calif. .pproved. Dated Dec. 13th, .ecoirmencling approval of application of Mr. John 7. Bristol to serve at the sane time as director ol the Union S: Hew Haven Trust Co. of ew Haven, and as director of the Hew Haven Bank, 7.B.... Disapproved.. • •pouanociya 2uT4oeta otr4, -mod :
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