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Lt a meetint; of the Federal :.'.eserve Board held in the office of the Board on 7.ednesday, December 31, 1919, at 11 A.L., PRESENT: The The Mr. Mr. Mr. Mr. Yr. Chairman Governor Strauss Miller Hamlin Williams Chapman, Secretary. nnutes of the meetings of the Board held on December 30th were read, and on motion approved as amended. Business was °resented and disposed of as follows: Memorandum by Yr. Smead dated December 3Uth, recommending that the .Board reconsider its authority to Federal Lesurve banks (letter :.-1767) to set up reserve out of earnings of the current six months against assessment for Board's expenses for the succeeding six months. Voted that the Board adhere to its ruling, but notify Federal lieserve banks thut they may be permitted to allocate such reserve monthly out of the current earnings in reporting on form 96. Letter dated December 22d from the Chairman, Federal Reserve 3:-.nk of in an Francisco, with further reference to pCndlooking to the rehabilitation of affairs of the „;candinavian-American Bank of Seattle. Noted. Letter dated December 22d from the Chairman, Federal 0r,v*'0r" -2Reserve Bank of San Francisco, advising of the appointment of the following officers of the Los Angeles Branch: Ira Clerk, Acting lanager A. B. Vordling, Cashier h. N. Mange's, Assistant Cashier. Noted. Letter dated December 22d from the Chairman, Federal Reserve Bank of San Francisco, advising that the Board of Directors of that Bank had adopted by-laws for the Los Angeles Branch identical with those heretofore approved for the other branches of that Bank. Approved. Letter dated December 29th from Mr. Embry L. Swearingen, expressing approval of the Board's action in undertaking to prohibit the use of the phrase "Under Federal protection" in advertisements of members of the Federal Reserve System. 'Noted. Letter dated December 29th from the Governor, Federal Reserve Bank of Philadelphia, with respect to the work of that Bank in controling the credit situation in the Third Federal Reserve district, and suggesting that no increase of rates is essential at this time for that purpose. Ee:erred to the Governor for reply. (At this point 1:r. Williams joined the meeting) 1 1026 Letter dated December 30th from 2r. F. D. Ilitchell, requesting permission to register the title "Federal Edge Corporation' as the name of a corporation to be organized under the provisions of the Edge Bill by certain of his associates. Referred to General Counsel for report. (At this point the Chairman joined the meeting) Letter dated December 27th from the Chairman, Federal Reserve Bank of Chicago, requesting to be advised as to whether or not collateral for member bank notes secured by Government obligations should be of a par amount equal to the face amount of the note, or that market value of collateral should be equal to the face amount of such notes. Voted that the Governor be authorized to inform the Federal Reserve Agent at Chicago that the Board desires that the amount of collateral security of notes taken by the Federal Reserve bank should be e,lual to the face amount of such notes, and to send copy of his letter to all Federal Reserve banks for their information. Letter dated December 30th from the Chairman, Federal Reserve Bank of New iork, advising that the Board of Directors of that Bank had voted to grant to Governor Strong, by reason of his ill health, leave of absence with half pay for the period of one year, and had voted to designate Mr. J. H. Case as Acting uovernor of the Bank during such absence of Governor Strong. 1027 -4Mr. Hamlin moved that the 'Board approve the action of the directors of the Federal Reserve Bank of rew iork in granting to Governor Strong leave of absence for one year with nalf pay, and merely to note the action of the New York directors in designating Mr. Case to act as Acting Governor in the absence of Governor Strong. Mr. Williams moved as an amendment that the Board approve an indefinite leave of absence with half pay for uovernor Strong. The motion was lost (11r. Williams and Mr. Miller voting "Aye"). Mr. Hamlin's motion prevailed, Mr. Williams voting "No", stating that he did so solely because he objected to granting leave of absence to the uovernor of the Federal Reserve Bank of New tork for a period of one year, believing that under present circumstances the Bank should not be without the services of a fully qualified executive. At 1-30 P.M., the meeting adjourned. Ae.;aorgemea.--- Secretary. Approved:
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