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.at a regular meetir3 of the Pederal deserve Board held in the office of the Board on :Tonday, December 17, at eleven a.m., P4,SLI;T: ,varbar, presiding, Li.. Delano, ir. :iller, ir, ,iillis, secretary. 7amlin, The minutes of the meeting of the Board held on December 12 were read and, on motion, approved. The minutes of the meeting of the Executive Jommittee held on December 14 were read and, on motion, ap proved, and the action therein set forth ratified. The minutes of the meetings of the Lxecutive Jommittee sitting as a gold export committee, held on December 12 to 17, inclusive, were presented and, on motion, approved, and the action therein set forth ratified. The special orders for the day were by unanimous consent, passed over for the time beins% proposed letter drafted by lir. .arbur...: for trans- mission to 3overnor ahoads re the eligibility of certain notes of the 1,meri3an Car crc. ''oundry Company, was read and, on motion, ordered circulated; it to be made a special (1) order for the meeting of December 19. 4L letter drawn by :Jr. ;;arburg for transmission to the Bill perSenate Banking and Currency 2ommittee re the Calder read mitting the organization of branch banks (S 3:214), was agreed to and, on motion, ordered transmitted; and the Board authorized approve the general plan of the proposed bill, and . the "lovernor to inform the Committee to that effect n letter from Mr. H. C. 'Mover re the live stock situation on the Pacific Coast, was read and noted. letter from 2ederal ..teserve ;gent Perrin re space d for the bank's fature expansion was presented and referre e to the Co'lmittee on the Operation of the Federal deserv Bank of an Francisco. Correspondence re clearing house examinations in Seattle was referred to the Executive Committee. The Secretary of the Board gave official notice of J. the receipt of acceptances from Messrs. T. H. Given and they D. Gallery of Pittsburgh of the directorships to which have been named. He further laid before the Board the of- ficial notice of election of "jeFsrs. B. C. Dohrmann and Bank of J. E. 2ishburn as directors at the Federal Reserve Sun Francisco, and of :,essrs. L. Johnson and L. B. 'Latch- inson a Ciii CO. letter prepared by Mr. riarb' for transmission to Governor Aiken re the eligibility of paper based on par.;hased accounts, was presented and ordered transmitted. 2, letter proposed b.: to ?ederal .eserve r. arburg for transmission nt 2,astin re the filing of 4 state- ment by B. H. Hovell 2on & Co., concerning their condition, was read and approvee for transmission. telegram from Aderal lieserve ''errin re mem- bership of California banks, was presented and laid on the table until the meeting of December 19. memorandum from Mr. ,oarburg re the status of Buffalo as a reserve city, was read and noted. A memorandum from Mr. ,iarburg re the question of - asking the Comptroller of the Currency to inquiry of member banks how much gold they hold, was read and discussed and r.,:arburg called attention to a report of the committee in charge of the mzitter regarding the culls to be made for conditions of member banks. On motion, it was voted that the report be referred to the Governor, with the Board's approval, and that he be re,laested to negotiate viith the Comptroller on the basis of the report of the Jommittee. The Comptroller's attention was informally called to the question of a ;old report from banks, d it 'ins as-reed to obtain such a report at an early date. Itn opinion of counsel apropos of certain juestions raised by Governor Van Zandt, i.e., the applicability of Federal taxes to salaries at Federal Reserve banks, was presented and ordered transmitted to 7rovernor Van Landt. letter from the Secretary of the Treasury re the purchase of one year notes by reserve banks, was presented and noted. Discussion of rates of discount at the Federal Jeserve Bank of New York ensued, but no action was taken. A report of ,;ommittee :o. 1 re dividends at f)t.1,ouis and lanneapolis was read and the :!inneaFolis dividend referred to the .ommittee on Operation of the 7iinneapolis Bank for consultation with qovernor Harding; the Et. Louis dividend to be disapproved, Mr. Delano to communicate accord- report of Committee !To. 2 authorizing the purchase by of stock in the imerican and ?oreign Banking Jorporation the ;merican Southern Bank of Louisville, was read, and, on motion, approved. report of Committee No. 2 calling attention to objectionable rebates for prepaid notes at the Federal Reserve Bank of Mansas Jity, was read and noted. Applications for admission to the Federal Reserve System, duly recommendeu by Jommittee No. '2, were presented, and accordingly the following institations were ordered admitted to the system upon the conditions mimed by the Jommittee in each case: Commercial & 'Savings Bank, Metropolitan Bank First State Bank of Magnolia First State Bank The Northwestern State Bank American Exchringe Bank Pennsylvania Company for the Insurance of Lives and Granting Annuities Reports of Jommittee 1o. St. Clair, Seattle, ::ash. Y,agnolia, Ill. La Crosse, Wash. Bellingham, Wash. Milwaukee, Vis. Philadelphia 3 stating action required or not required in the case of certain directors ander the Jlvton LCt such reports being dated Decc-lber ll and 13, were read and, on motioL, approved, and the correspondence accordingly orderLd transmitted. In this connection inquiry having been made regarding the future status of directors who had been L.athorized to serve under the CL,yton Act during the current year, the Chairman reqaested Jo-Imittee o. 3 to file with the Board aca formal report makin, recommendation ts to its course of tion in this regard. tianges in Stock at 2ederal Reserve banks, dlly recommended by 9ommittee ro. 3, were, on motion, approved as fol- lows: itpplications for Original 5tock. District -Jo. 1. Winchester National Bank 10. District Farmers National Bank First National Bank Winchester, :.:ass. Valentine, I:ebr. Taos, Total, The minutes of the meeting of Ammittee Shares 39 39 21 18 39 76 o. 4 held and on December 14 were presented and, on motion, approved the action therein set forth ratified. Lietters from Governor ::cDougal addressed to Governor Harding (1) proposing a dividend to December 31, 1917, and (2) a bonus of 10,; to officers and employees exceptins. the ;overnor, were presented and, on motion, referred to 2ommittee No. 1. A letter from Federal Reserve Agent 'lardy relative to the policy of the 7edera1 Reserve Bank of Atlanta in ac- motion, cepting checks for collection, was presented and, on referred to _4o-1,mittee 1. 94i, c,-;? An Inquiry from Lieutenant Wilstach,_office of Chief Cable Censor, as to whether it is theBoard's desire that he puss private code messages between the Federal iieserve Bank of Nev York and the Bank of England, .Was • ordered answered in the affirmative by telephone, pending receipt of a formal letter on the subject. A letter from 'Federal Reserve Agent Tiamsey transmitting copy of the minutes of the meeting of the Board of directors of the Federal Reserve Bunk of Dallas, was presented and referred to lovernor Harding. On motion, at 12.50 p.m. the Board adjourned. -' APPROVED: .Chairman.