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Inv held in At u meeting of the federal Reserve Board 16, 1(J19, at the office of the Board on Tuesday, December 10-30 L.M., 211LSNT: The Governor Mr. strauss 11r. Miller Mr. Hamlin Mr. '4illiams Mr. Chapman, secretary. Dece:liber Minutes of the meetings of the Board held on approved as amended. 12th and 15th were read, and on motion Minutes of the meeting of the 1,xecstive Committee approved. held December 13th were read, and on motion follows; Business was presented and disposed of.as special 2; The ,;overnor reported the purchase of states for deposit certificates of indebtedness of the United collateral for Federal with the Comptroller of the Currency as - Reserve bank notes, as follows; For Federal Reserve Bank of: Minneapolis, Date 1Lmount Dec.15th Approved. transaction, purThe Governor reported rediscount member bank suant to authority neretefore vested in him; obligations, rate 4-l/2, promissory notes secured by Government as follows; Date Bank Rediscountin 7,ith Amount Doc.12th Philadelphia Dallas 4.9,u00,JUO ilaturitios 11-15 days Noted. Letter dated December 6th from the Chairman, Federal Reserve Baia of an Francisco, submitting results of survey ct with of the situation in the Twelfth Federal Reserve Distri ed by the respect to the status of joint directorships approv Board under the provisions of the Clayton Act. Referred to the Clayton Act Committee for report. Letter dated December 1.th from the Governor, 2ederz,i Bank desires :oserve Bank of Boston, stating reasons why that ng. not to postpone the construction of its new bank buildi Referred to the Crovernor for report after visiting Boston. l Letter dated December 9th from the Chairman, Federa on of 1.1r. Reserve Bank of Lt. Louis, advising of the electi tt• r . i'lunhett as a Class B Director, and rx. :Jura Ix. Zeigle as a Class A Director of that Bank, for the year 192‘). Referred to the Law Committee for report. l.etter dated December 11th from the Lecretary, Federal on of Lr. J... Reserve Bank of Chicago, advising of the electi Blodgett as a Class B Director, and Ur. Charles H. Llaider for the year 1920. as a Glass .A Director of that Bank, • ,t8 Referred to the Law Committee for report. Letter dated December 11th from the Chairman, Federal election of Messrs. Leserve Bank of Richmond, advising of the Charles C. 7omer, J:., and Henry B. iiloo as Directors of 192u. the Baltimore Brunch of that Bank, for the year Noted.. n, Federal Letter dated December 9th from the Chairma as to the disposition Leserve Bank of Dallas, requesting advice of old and unimportant records. Referred to the General Counsel for report of as to statutes affecting the disposition records. ing :.:emorandum by z-,ecretary dated December 15th, submitt the iuderal Reserve for approval memorandum for publication in ted by the Buflutin covering countries which have been designa require the Board as countries, the usages of trade of which exchange. drating of drafts for the crtJation of dollar Referred to Mr. :;trauss for report. draft of letter The Governor submitted for approval, g to acceptances under date of December 15th (X-1754) relatin bunks. of the lontinental Guaranty Corporation Approved as amended. List of national banks which are loaning money in New and indirectly York on stocks and bonds as collateral directly as reported to the Comptroller of the Currency on rov. 17, 1919. 919 -4Ordered circulated. Letter dated December 2d from the uovernor, Federal Reserve Bank of ninneapolis, submitting for approval the following schedule of extra compensation for the period June 30th to December 31, 1919, to be paid to employees of that ment, whose Bank, including the Federal Reserve Agent's Depart on the annual compensation does not exceed $5,000 per annum, basis of compensation received during such period: 25 To those receiving $750 and under 0 249, $1,50 ing includ and up to Over 4750 0 15% $2,50 ing includ and to 0 up Over 41,50 for The maximum amount paid to any one employee comonal additi and salary in lf year the one-ha m the minimu be to grade lower a for ion pensat for paid in salary and additional compensation the half year to employees in the next higher class. Approved. Letter dated December 16th from the Chairman, Federal the followReserve Bank of Atlanta, submitting for approval ing schedule of extra compensation to be paid to employees ah, ueorgia, of that Bank, its branches and its agency at Savann on the basis of salary actually earned during 1919: 25;4 Annual salary of $1,500 and less “ over $1,500 and not over $3,00o..20 0 ft over $3,000 and not over $7,500..15, to be the class lower a in The maximum salary minimum for the next higher class. 950 -5On motion duly seconded the above schedule was approved, with the exception that no extra compensation is to be paid to employees receiving in excess of $5,000 per annum. Letter dated December 12th from the Comptroller of Administration, federal Reserve Bank of New zork, advising of the employment of the following employees by that Bank . during the month of November, 1919: Mr. uilbert R. riendrickson, Dr. Ray A. Sigsbee, Salary 3,600 4,500 Noted. Letter dated December 6th from the Assistant Federal geserve Agent at Cleveland, advising that the Steubenville Bank & Trust Company, Steubenville, Ohio, had acquired the assets of the Commercial rational Bank of that place, and requested the approval by the Board of the operation by the former bank of a branch in the quarters previously occupied by the Commercial National Bank. Approved. Application of the Potter Title & Trust Company of Pittsburgh, Pa., for admission to the Federal Reserve System. Voted that in view of the comparatively large amount of the contingent liability of this institution, on account of title guarantees, the application be referred to ueneral Counsel 951 -6for report as to the 3oard's record in passing upon applications of similar companies, and information as to the average amount of losses sustained by companies engaged in business of a similar character. *1-2011% OF COLY,ITT1.2, NO. 1: Dated Dec. 16th, recommending admission of tate institutions as set forth in the auxiliary minute book as of this data, subject to the conditions stated in the individual reports attached to each application. Approved. Dated Dec. 15th, recommending changes in stock at Federal Reserve banks, as set forth in the au:Aliary minute book as of this date. Approved. for Dated Dec. 15th, recommending action on application the in forth set fiduciary powers, as auxiliary minute book as of this date. Approved. Dated Dec. 15th, recommending action on application of Richard K. LeBiond to serve at the same time as a director of the Union savings Bank & Trust Company, and the Fourth rational Ban.k, both of Cincinnati, Ohio Approved. tion of Dated Dec. 15th, recommending action on applica same time the at serve Albert Jteiger to a Bank Vationa Chapin as a director of the Hadley the Falls and of Jpringfield, Lass., Mass. Trust Company, Holyoke, Approved. Dated Dec. 15th, recommending action on application of George Flint to servo at the same time as a director of the Lianayunk rational Bunk and the Broad Street Bank, both. of Philadelphia, Pa. Approved. 952 -7Other business was presented and disposed of as follows: Letter dated December 13th from the Governor, Federal Reserve Bank of Kansas City, reporting that effective December of that Bank will be established as t % 15th the discoun rates requested by the Federal Reserve Board. Noted. Letter dated December 15th from the Governor, Federal Reserve Bank of Philadelphia, requesting advice as to whether or not the Board approves the organization chart of that Bank, as submitted with his letter of April 3d last. Referred to the Governor for reply. Letter dated December 13th from the Governor, Federal Reserve Bank of Minneapolis, enclosing copy of circular letter addressed by him to banks and bankers in the Ninth Federal Reserve District, announcing the policy of the Bank in re control of credit. Referred to the Governor with power to amend and transmit to other Federal Reserve Banks for their information. Letter dated December 13th from Assistant Secretary of the Treasury Leffingwell, advising of the extraordinary • volume of business which it is expected the Federal Reserve Banks will be called upon to handle in connection with the exchange of permanent for coupon bonds, and suggesting the wisdom -8of establishing in each Federal Reserve Bank a branch post office for the purpose of handling not only this fiscal agency, but other mail matter for Federal Reserve Banks, and stating that if agreeable to the Board, he would undertake to secure the approval of the postmaster General to such a plan. Voted that the Governor notify Mr. Leffingwell that the Board would be glad to cooperate in the plan proposed. Letter dated December 10th from the Chairman, Federal Reserve Bank of Minneapolis, requesting authority to expend not to exceed $100,000 in the purchase of a building and the making of improvements thereon in connection with the establishment of a branch of the Federal Reserve bank at Helena. Approved. Letter dated December 10th from the Chairman, Federal Reserve Bank of Minneapolis, advising of the employment, subject to the approval of the Federal Reserve Board, of Harry xeager at a salary of $4,500 per annum, to be engaged initially in the pork of completing membership of Montana banks in connection with the establishment of the Helena branch. Approved. Letter dated December lath from the Director, Division of Analysis and Researcn, requesting approval of the appointment 95/1 -9of the following clerks in that Division: Henry Horn Ldams, Alice Ross, A,500 per annum u 1,500 Approved. Memorandum by Mr. Hamlin dated December 15th, submitting letter dated December 9th from Mr. Alexander Wall, containing suggestions as to limitations of loans. Referred to Mr. Strauss. Letter dated December 1st from the Governor, Federal Reserve bank of riew xork, in re liability of the Federal Rely to the serve Bank in sending checks for collection direct banks upon which same are drawn. Referred to the Governor and Mr. Hamlin for report. Letter dated December 15th from Deputy Governor Peple of the Federal Reserve Bank of Richmond, regarding failure te credit of certain New xork banks to recognize the immedia nd. symbol in use by the Federal Reserve Bank of Richmo Referred to the Governor with power. Letter dated December 10th from Mr. E. R. Kenzel, Chairman of the Committee appointed by the Governors' Conference held March 20, 1919, to study and make recommendation of a pension plan for adoption by Federal Reserve banks. Referred to Mr. Hamlin for report. 955 -10emorandum by Lr. jnerson dated December 13th, submitting for approval draft of letter to be sent to Governors of all iederal Reserve banks in response to the recommendations made by the Governors at their conference held in "4ash1ngton, November 19-21, 1919. Referred to the Governor with power, to amend and transmit. Telegram dated December :Lath from the Chairman, Federal Reserve Bank of Philadelphia, advising of the establishment l of the following discount rates, subject to the approva of the 2ederal Reserve Board: Member banks collateral notes secured by bonds or notes of U.'S.Gevernment, 15 days and less 4-3/4 Secured by certificates of indebtedness, 15 days and lass secured by ;Jar Finance Corporation bonds, 15 days and less Secured by commercial paper 15 days and less Rediscounts, secured by bonds or notes of U.J. Government, 9U days and less Secured by certificates of indebtedness, 90 days and less Secured by ;;ar Finance Corporation bonds, 90 days and less 4 1 Zecured by commercial paper, 9U days and less 4-3/45 4-3 4-1/21 3-3/45 4-3/4% -11Secured by agricultural or livestock paper, 4-3/4% 90 days and less 91 days to six months 5% Secured by trade acceptances 90 .days and less 4-3/470 Approved. Mr. Hamlin, Chairman of the Treasury Committee on the status of sub-treasuries, advised that his committee would shortly report to the Secretary of the Treasury, recommending the abolition of sub-treasuries and the placing in the hands of the Federal Reserve banks most of the functions heretofore performed by the sub-treasuries, and that he would advise the Secretary of the Treasury to refer to the Federal Reserve Board for report and recommendation the report of the committee as submitted. At 1-15 P.M., the meeting adjourned. Secretary. Approved: Gov°
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