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_A meeting of the Federal Reserve Board was held_ in the office of the Board on Tmsday, December 20, 1921, at 11:25 a.m. PRESET: Governor Harding Mr. Platt Mr. 1-IL,mlin Mr. Miller Mr. Mitchell Crissinger Mr. Hexton, Secretary. Minutes of the meeting of the Board held December 16th were read and on motion approved.. The ‘j.overnor repOrted the reserve positions of the several Federal • reserve banks as at close o f bus mess December 16th and 17th, and the status of rediscount s between the Federal reserve banks as of the same dat es. Telegram dated. December 17th, from the Federal Reserve Bank of Richmond, requesting approval of a maximum 5 0/ and a minimum 457 rate for Open market purchases of bankers' acceptances. Formally approved, h-tvin ,-7 been approved yesterday, by the initials of four members of the Board. Telegram dated Decerrber 19th, from the Chairman of the Federal Reserve Bank of _Atlanta., advising that the Board of Directors of that Bank had, subject to the review and determination of the Federal Reserve Board, established a rate of 5% for all classes of paper, and a rate of from 4r: minimum to 5crl., maximum on open rz rket purchases of bankers' acceptances, it being understood tipt the maximum rate is to apply to unind_orsed bills, said /ate changes to be effective at once. Foxmally approved, i:r. . 21a tt voting "no"; the act ion of the Federal Rest_ rve Bank of Jtlanta having been approved yesterday by the initials of four members of the Board. -2- Letter dated December 16th, from the Chairman of the Federal Reserve Bank of Atlanta, submittbv; certain changes in the payroll at the head_ o ffic e and the Savannah Agency, said changes subject to the approval of the Federal Bose rve Board.. .Appro ved. Letter dated December 13th, from the Chairman of the Federal Reserve Bank of San Praic isco , re quest ing a dproval of the Federal Reserve Boaxd of the action taken by the Executive Con-mittee of the Board of Directors of that Bank, whereby the Federal Reserve Bank of San fren- cisco will establish, temporarily, as an emergency nntter, a currency depot in Boise City, Idaho. Approved. Letter dated December 16th, from the Chairman and Federal *Reserve At at Philadelphia, requesting authority,in submitting papers covering the application of state banks, to substit ute the emmination reports of the examiners of the Federal Reserve Bank of Aiilade lphia, in lieu of the examination reports of the examiners of the state of ?ennsylvania. Appr ov ed. Letter d: ted December 16th, from the Executive Committee of the :rational Bank Division of the Amrican Bankers Association, calling attention to certain aprx rent dangers to the national banking system, by reason of liberal powers granted by some states to the state banks Which are under their jurisdiction. ::ot ed. C _ernorandum dated December 19th, from the Assistant Secretary of r., the Board, request in authority to employ a tel. °graph operator, at ..165.00 per month, in lieu of an operator whose resignation is effective today. Appro ved. I.:emorarrium dated December 19th, from the assistant Secretary of the Board, request ing authority to employ a stenographer, at a salary Of l44O. p a. annum, to fill a vacancy in the stenographic force of the Federal Reserve Board. Aprr o ved.. Eemorandum dated December 17th, from the Assistant Secretary of 4 the Board, rcommenlin.: that an order be issued, advising the Board's employes tInt the offices will be closed all day December 26, 1921 and January 2, 1922, and that all employes who can be spared, will be excused from duty at one o'clock Saturday, December 24th. Appro ved. l'emorandum dated December 17th, from the Chief of the Division Of .;xamination, recommendinp: that Assistant Examiners Gordon, Toel1 and Drinnen be c;ranted commissions as Federal eserve Exaniners, the three men named havin- heretofore been serving as AssistPnt 4wminers. Approved. 1.:emorandurn dated December 17th, from the Chief, Division of Examirla,ti on, recommending the appointment of Fr. T. R. Wilkes as Assistant ederc1 Reserve Bank _..1xaniner, at salary of .'2400 per annum, effective January 3, 1922. Approved. Memorandum dated December 17th, from the Chief of the Division of 3:;xaminat ion, recommending salary irrreases to three Federal Reserve Bank Examiners and fourteen Assistant Federal Reserve Bank Dcaniners, in the aggregate amount of ::;?4 '5,280. Appro ved, effective January 1, 1922, detailed as follows: Proposed Examiners Present Increase Salary Recommenied Sal a.r__,y J. L. Buchanan c)6,500 (17,000 5,000 4,500 V. J. Grund 500 R. M. Chapman 4,200 4,500 300 Asst.Examiners J. B. Atkins 3,000 3,300 300 C. H. Ball 2,700 200 2,900 R. H. Brett 3,300 300 3,600 R. B. Chamberlin 3,300 300 3,600 F. J. Drinnen 3,900 300 4,200 J. C. oell 4,000 200 4,200 J. F. Prahl 3,000 500 3,500 A. J. Schapp 2,500 200 2,700 R. B. Wilts() 3,300 300 3,600 P. A. Gordon 4,200 300 4,500 Carroll Pierce,Jr. 2,000 400 2,400 FISCAL AGTS.DEPT. 11ery la. Baker 1,730 190 1,920 Nannette Milliken 1,730 190 1,920 E. A. Farrell 2,400 300 2,700 Upon motion, the salary of Mr. J. F. Herson, Chief of the Division of :Examination, was increased from :in.0,000 per- annum to A11,000 per annum, effective January 1, 1922. Memorandum dated December 19th, from the Assistant Secretary of the Board, inquiring whether or not the Federal Reserve Banks of New York and Cleveland are justified in crediting to the self-insurance funds the income on securities purchased with the self-insurance funds, in lieu of crediting such income to the general profit account of the -5- Federal Reserve Banks. The iloveriaor was requested. to take this matter up with Geieral Counsel, althouLl'i it ras the sense of the meeting: : tho t the income from securities purchased 'with self-insurance funds should go with ani become a part of the said funds. I:emorandum dated December 16th, from the Comptroller of the Cizrrency, recommending that the Federal Reserve Board approve a reduction in Capital stock from 100,000 to '25,000 by the Wynona TTational Bank Of Wynona, Oklahoma. Apo ved. The Governor submitted to the Board the report of examination of the Federal International Banking Company of Tow Orleans, La., together viith a memorandum analyzing this report, prepared by the Chief of the Division of 231.m.rniir.tion. Fot ed. The Governor submitted to tre Board the report of examination of the Federal Reserve Bank of Dallas, as of October 8, 1921, together With a memorandum from the Chief of the Division of 2,1xarnination, analysing such report. :Tot ed. The Governor stated. that in order to insure the proper ani regular handling of all the reports of examinations of the Federal reserve bank, he would suggest that these reports, when received by him, be turned over to the Division of ,.:xaminat ion for scrutiny and analysis; that the Division's analysis and the report it self be pi,- cod upon the regular docket -6- for submission to the Federal Reserve Board; and that the Secretary then address a letter to the Chairmen of the Board of Directors of the Federal Reserve Bank concerned, calling formal attention to the criticisms and the su:-;gestions of the examiners, requesting a reply as to the attitude Of the Federal reserve bank with reference to such criticisms and suggestions. The Governor submitted to the Board proposed circular letter X-3273 dated December 19, 1921, and containing the instructions to Federal reserve banks covering fr2nchise tax payments on December 31, 1921. Approved and ordered transmitted. Letter dated December 15th, from the Chairman of the Federal Reserve Bank of St.Louis, setting forth the procedure which that Bank desires to use in connection with the applications of newly chartered national banks for the exercise of fiduciary powers. Referred to the Governor for reply, it being the sense of the meeting that while the Federal Reserve Bark of St.Louis would be justified in using every effort to persuade newly chartered national banks not to make application for fiduciary powers until after the flEst examination of the applying bank, that the Federal Reserve Bank should send such applications forward to the Federal Reserve Board at once, and prior to such examination, if the applicant should insist upon such a course. Letter dated December 16th, from the Chairman of the Federal Reserve Bank of St.Louis, making certain sw,gestions for the consideration of the Pederal Reserve Board coverin extra conpensat ion in salaries at that Bank. Referred to the Committee on Salaries and Charge Offs. it -7- T:emorani-um dated Decerber 16th, from the Fiscal Agent, submitting an estimate for the general expenses of the Board. for the ensuing six months, and requesting authority to mike an assesstrent upon the Federal reserve bunks in a sufficient percentage of total peid in capital stock and surplus to produce an amount ap oro xinat 0,1 y of 398,0O.: Upon motion, the following resolution was unanimously adopted: Whereas, traler Section 10 of the act approved. Decerrber 23, 1913, an' 1i own as the e'ederal Reserve Let, the Federal Reserve Board is empowered to levy semiannually upon the Federal Reserve Banks in proportion to their capital stock and surplus an assessment sufficient to pgy its estimted expenses, including the salaries of its members, assistants, attorneys, ex oert s, and employees for the half year succeeding the levying of such assessment, together with any deficit carried forward from the preceding half year; and Whereas, it appears from estirrates submitted and considered that it is necessary that a fund equal to one hundred four thousandths of one per cent (.00104) of the total paid-in capital stock and surolus of the Federal Reserve Banks be created for the purpose hereinbefore described, exclusive of the cost of engraving and printing of Federal Reserve notes; Row, therefore, Be it resolved, That pursuant to the authority vested in it by law, the Federal Reserve Board hereby. levies an assessment upon the several Federal Reserve Banks of an amount equal to one hundred four the of one per cent (.00104) of the total paid-in capital and surplus of such banks as of December 31, 1921, and the Fiscal Agent of the Board is hereby authorized to collect from said banks such assessment and execute, in the name of the Board, receipts for payrrents made. Such assessment will be collected in tr.() installments of one-half each; the first installment to be paid on January 1, 1922, and the second half on ra.rch 1, 1922. r-767.)(7;• -8- Letter dated December 17th, from the Governor of the Federe-1 Reserve Bank of Atlanta, giving infonnat ion regarding bids which have been received for the construction of the building for the Nashville Branch Of the Federal Reserve Bank of Atlanta. Referred to Messrs. Platt and Mitchell for report. Letter dated December 17th, from the Deputy Governor of the Federal Reserve Bank of New York, Mr. Sailer, alvi sing the Board of the act ion of t ht Bank in letting the contract for stone work for the new ' bank building at approximately 1853,200, said contract representing a saving of approximately 10,000, with respect to estimates which had. Previously been made covering this item. Noted. The Governor stated that with reference to the situation in the Twelfth Federal Reserve District caused by the activity of the Bank of Italy in connection with the establishment of branches, he desired to submit a letter dated December 14th, from the Chairman of the Federal Reserve Bank of San Francisco, a letter of December 15th,from the President of the Bank of Italy, and a menoraidum on the subject from Mr. Hamlin to the General Counsel of the Federal Reserve Board. Upon mption of Mr. Miller, it was voted to refer these documents to a special committee composed of Mr. Crissinger and Mr. Mitchell, with the request that the said cormittee rake a study of the vhole situation and report thereon at its. earliest convenience to the Federal Reserve Board. Mr. Miller submitted to the Board a report of the Board's Commit tee on Internal Economy an3. Comparative Efficiency. Referred to the Governor with power. -9- I.emoranclum dated December 20th, from the Division of Eyamination, advising that the Board is in receipt of telegraphic advice from the Federal Reserve Agent at Kansas City, that the fbllowing organizing national banks have filed applications for stock and made the required fifty per Cent payment thereon, and recommnding that the applications be approved, effective if and when the Comptroller issues certificates of authority to begin business: First National Bank of Shamrock, Okla. (cony er s ion of the "First State Bank of Shamrock) The HeLena Nat ionE.1.1 Bpnk of Helena, Okla. (conversion of the Helena State Bank) 17 shares The Wellston National Bank of Wellston,Okla. (conversion of the Wellston State Bank) 15 shares 17 shares The Central National Bank of Ponca City, Okla. 30 shares (conversion of the Ccntral &tate Bank) Appr oved. IlLt'PORTs OF C 01,1IITTE1' NO. 1: Dated December 16th, Recommending changes in stock at Federal reserve banks, as set forth in the auxiliary minute book as of this date. Appro ved. At 1:25 p.m. the meeting adjourned. 'KC WAWA/W Secretary.
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