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Lt a regular meeting of the Federal Reserve Board held in the Board Room on Monday, Decernber 3, 1917, at 3:00 P. M., ?RESENT: Mr. Harding, presiding, Mr. Miller, 2.:r. Warburg, Mr. Delano, Yr. Hamlin, Mr. Willis, secretary. The minutes of the meeting of the Board held November 30 were read and on motion approved. The minutes of the meetings of the meetings of the Executive Com'littee held on Tovember 2:2 and 30 were presented and on motion approved and the action therein set forth ratified. The first special order for the day, the dis, cou :t rate question, was taken under advisement. Gov- ernor Harding stated the substance of a conference he had had with Governor Strong of the Zederal Reserve Bank of Ne;: York, regarding the discount rates, and general discussion ensued. On motion it was voted that beginning with Wednesday, December 5, the stated meeting of the Board be at 11 A. M. instead of at 3 P. M., as at present, the meeting (Lys to be the same as now. The report of Chief :xaminer Broderick as to the recent examination of the Federal Reserve. Bank of Atlanta, was presented and on motion referred to the Committee on operation of the Federal Reserve Bank of Atlanta. . 4 . letter from Federal Reserve ;gent Jay, relative to unifyi-n state tank legislation regarding reserve requirements 1...as read and on motion referred to Counsel with re,nest for a list of states in which such legislation is needed. L letter nrom Federal Reserve !gent Lust in regarding the renewal of six months demand notes ms read and the Secretary directed to mike further inquiry from Mr. Austin. An opinion of Counsel as to the status of 1:r. J. Davis Brodhead (lately appointed under the Alien Property Custodian) as director of the federal Reserve Bank of Philadelphia, was read ar.d on motion it was voted that Lir. Brodhead should cooperate with the Board in applying the Board's etirlier ruling regarding the holding of public office by directors. A letter from Federal Reserve Agent Welborn advisin tne Board of nis action regarding tne retire- ment of tnc stock neld by the Hibernia National Bank of New Orleans, way reEd and referret' to Counsel. Upon recommendation of Committee No. 2, it was, up to 100,: on motion, voted to grant power to accep of Pittsof capital arid surplus to the Union Trust Co., burgh, Pa. Upon recommenda(ion of Committee No. 3, the apat the same time plication of J. W. Gilliland to serve ed. as director of certain named banks was approv y A request of Lssistant Postmaster General rocker ed to the for an appointment with the Board was referr y and Governor witn the suggestion that ne meet Mr. Docker the if necessary, make a later appointment for him :.ith Bean]. It was ordered entered in the minxtes that the of the United Board had received from the Attorney General t, an opinion States in reply to the Board's recent reques under exstating that LatioLal banks in New York may not proveded in isting law exercise tne full fiduciary powers the federal Reserve lot. Upon report of Committee 1, it was vote No. 1 (a) dated December to appoint Mr. Mark A. Lies of the Fed- oral Reserve Bank of Chicago AssistLint Federal Reserve Agent, such appointment to be valid until December 31, 1917. Upon recommendation or Committee Yo. 2, it was, On motion, votocl to admit, upon conditions named by the Committee, the following institution: German American Bank, Yew York. City. A general discussion of the question of credit exoans ion ensued. The question of changing the present met:Iod of making regulations for the issuing o: Federal Reserve notes was referred to Counsel, to be taken up with the Governor. The application of the National City Bank for authority to constitute its subbranch at Montevideo an independent branch was considered and on recommendatIon of counsel tho application was granted and the following order entered: At a stated meeting of the Federal Reserve Board, duly held at its offioe in the City of Thshington, District of Columbia, on December 3, 1917. PRESE1N T: Mr. Harding, presiding, Mr. Warburg, Mr. Hamlin, Mr. Miller, Mr. Delano. In the Matter -of tneApplication of The National Cit:' Bank of New iork, for leave to constitute its sub-branch, agency or office in Montevideo, Republic of Uruguay, of its Branch in the City of Buenos Aires, Argentine Republic, an independent Branch. : ORDER GRANTING LEAVE TO MrSTITUTE THE SUB: BRANCH. LGITCY CT. OPFICE THE CITY Ci MONTEVI: DEO, REPUBLIC 02 URUGUAY, . : IT INDLPErDiZTBRAI CH. ITT imo National city Bank of New iork having filed an ng Application with this Board for the purpose of obtaini in the City o: Buenos Lires, authority to establish a Branch Argentine Republic, and the said Anplication having been 2, 1914, granted by this Board by an order dated September thereafter been opened and and the said Branch having a being now in operation, and the said Bank having filed this Board for the purpose of Obfurther Application with City of Montevideo, caining authority to establish in the , a sub-branch, agency or office of its Republic of Uruguay c, said Branch in tne City of Buenos Lires, Lrgentine Republi further Application having been granted by this and the said the said subBoard by an Order dated April 16, 1915, and or office having thereafter been onened and branch, agency filed a being now in operation, and the said Bank having now obtainfurther Application with this Board for the purpose of y to constitute the said sub-branch, agency or ofing authorit an inde, fice in the CitL of Montevideo, Republic of Uruguay, tion pendent Branch of the Bank, and the said further Applica been considered, and it appearing that the said Apnsving plication is properly made under the laws of the United re, it is Etates of America and should be granted, Now, therefo ORDLEED, tnat the said application be and it heretry is a,99roved and that the said Bank be and it neretv is autho2ized to constitute the said suo-brancn, agency or office in the Uity of Lontevideo, tepublio of uruoaay, an indesendent Branch of the BEnk. BY T7E FLDEPAL 1i1:4:RV1i; BOARD, —. t. U. Harding, Uovernor. Attest: H. Parker Willis secretary. letter from uovernor ;Liken, retarding the status of curtain cotton mill paper was presented and referred to Comittee tIo. 2 (Papers in Ur. ":arburg's n nds). A letter from the ieederal Reserve Bank of Boston informing the Board that it had fixed rates in a3cordance with those in force in other panKs, was read and the rates approved. Governor Harding read a letter addressed to Mr. F. I. Kent regarding his service for the Board and on motion the transmission of the letter was authorized, the uovernor to F.,:et the approval of the Comptroller of the Treasury as to reimbursement for expenses. Governor Harding read a teieram from Ur. J. S. Drum, of Los i"rt 1 s, regarding the question of a special session of the California Leg'.isiature. 'the teierarn was ' C discussed and on motion referred to the Governor. Mr. Miller was requested to communicate with Federal Reserve Agent Perrin. Letters froin Federal Reserve Agent Perrin as follows: A letter regarding a proposed pension system, referred to Committee No. 3. A. letter regarding location of office of tne Chief National Bank Examiner in the new building of the bank, referred to Governor Harding. A letter as to clearances through the oank by the Assistant Treasurer of tne United States. Voted. ' letter from the rational Von-Partisan League regarding the question oC aid to farmers through Federal Reserve Banks was read and discussed, and the letter referred to the Governor for transmission to Federal Reserve Agent Rich and Mr. Herbert quick or the Farm Loan Board. Letters from tne First National sank of Albuquerque, and from Federal Reserve Agent :lamsey, regarding the -possible transfer of the bank to another district was read but no action taken. A renort or Committee No. 1, regarding the sal- ary of W. D. Wellborn, at New Orleans, was read and adopted. A report of Committee Vo. 1, dated December 1, relative to the classification of 1,:r. J. E. Bizzeli, . with reference to draft, was read and tooroved. On motion it was vote(i that a member of the board be designated to visit Boston to aid in entertaming the Japanese Financial Commission. A memorandum of the Secretary of the Botrd regardinl.; present practice as to the Executive Folders read bnd noted. The report of the Committee having in charge the luestion of reports by member banks (made a special order for the day) was read and discussed and on motion, it was voted to reco=;t the report. telegram from governor Vold naming rates of discount as follows was read and the rates approved: Commercial paper Commercial paper Agricultural and paper 16-G0 days 4e; 61-90 days livestock :31-180 days b".2 On motion, at 0:20 P. M. the Board adjourned to meet at 11 I. Y. on 7:ednesday, December b. APPROVED: Cnrirman.