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(d",Y3 A meeting of the 2ederal :Reserve Board was held in the office of the Board on Thursday, December 3d, at 11:10 a.m. 23ES FITT: Fr. Platt Mr. Hamlin Mr. 'Tiller Mr. Wills Mr. Williams Mr. IToxton, Secretary. Minutes of the two meetinssheld. December 2d were read, and on motion, approved. The Vice-Governor reported the reserve !positions of the several Federal :-eserve Banks as at close of business December 1st, and the status of rediscounts between the Federal ::eserve Banks as of the same date. (At this point Mr. Lon entered the meeting. ) Ra.)ORTS OF CO:.I.IITTE.E 270. 1: Dated l'ov. 30th, Recorn-nen.ding admission of State institutions as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the individual reports attached to the applications. A)-)roved. Dated 7rov. 30th, r?.ecommendinr: a)proval of applications for fiduciary nowers as set forth in the auxiliary minute book as o: this date. Approved. Dated 'rev. 29th, 7lec on-mendini3 a opro val of the appointment of Fr. Rus.-ell P. Clayton as :rational Bank Examiner in the Second Federal eserve District, at a salary of 12,00. per annum. Approved. 974 -2- Special order business was disposed. of as follows: Letter dated I7ovember 24th, from the Federal Re- 1. serve Bank of Chicago, relative to advance of funds to the Treasury Department against Treasury certificates, bearing interest at the rate of 2,1. The Vice-Chairman submitted a draft of letter written by Governor Harding to the Secretary of the Treasury regarding the policy of the Treasury Department in issuing certificates of indebtedness bearing intbrest at the rate of 2-7.)/1 to the Federal Reserve Banks in order to prevent over drafts; also draft of letter in regard to this matter to be 33llt to all Bank Governors and Federal Reserve Agents. After discussion and the suggestion of several amendments, the mat ter •wc.)s referred to the Executive Committee with power. 2. Renort of the Clayton Act Committee relative to the Board's policy in rep.prd to the administration of the Clayton Act. Action vas postponed until a full meeting of the Board can be secured. 3. Letter dated December 1st, from the Chairman of the Federal Reserve Bank of Hew York, enclosing memorandum from Mr. E. R. Kenzel regarding drafts drawn to furnish dollar .exchange originating in Australia and Hew Zealand. Eatter postponed and ordered docketed for the ne:-:t nx3eting. Letter dated December 1st, from the Chairman of the Federal Reserve Bank el* St *Louis, sett ins'', forth a recommendation made to that Bank by its Memphis branch to the effect that the Memphis branch v'ird on. or after July I, 194. will not receive as collateral cotton warehouse recei.nt which are not accompanied by sat- isfactory information as to the grade of the cotton. It was sil.7:ested that similar action should be taken by other Federal Reserve Ranks and branches in cotton cormunities, and. the matter was referred to the -__]xecutive Committee with power. Letter dated Decenber 2c1, from the Chairman of the Federal Reserve ::ank of Richmond, requesting the 7oard's authority to pmceed at once to raze the Virginia hotel building, and excavate the found.,?t ion for tne new annex to the Federal Reserve Bonk of 7.ichriond, in accordance with a sum..estion r.-ade by the Consultinc7 Approved. Mr. "filliams stated that he had. recently held interviews with Ir. Ryan of hew York, and with :"essrs. Thayer and Wig-7in, of the Chase hational Pank. of --CIN York, aril recounted, for the confidential informtion of the Board, the substance of thesa interviews, but no Board action on the subject was suggested. hr. 711 Hams also stated that he had been advised by certain of the :-ational Bank Examiners that the quaranty Trust Company of hew York is receiving drafts drawn by the 1Tational Bank of Cuba, but left blank as to the identity Of the drawee; that the said. quaranty Trust Company is distributing these drafts for acceptance to other banks in different 976 -4-- sections, filling in the name of the drawee only after the correspondent banks have agreed to accept. Mr. Williams said he desired to go on record as stating to the Board that, in his judgmnt, it is .important that the Federal Reserve Board, either directly or through• the Federal Reserve Bank of New York, should make an independent extnnination of the Guaranty Trust Company of New York, as promptly as practicable. At 1:10 p.m. the meeting adjourned. Secretary.
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