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A meeting of the Federal Reserve Board was held in the office of the Board on Wednesday, December 7, 1921, at 11:30 a.m. PRESENT: Governor Harding Mr. Platt Mr. Hamlin Mr. Miller Mr. Mitchell Mr. Cri ssing er Mr. Hoxton, Secretary. Minutes of the meeting of the Board held December 6th were read. 4111 on motion approved.. The Governor reported the reserve positions of the several Fedreserve ban.ks as at close of business December 5th, and the status "rediscounts between the Federal reserve banks as of the same date. Letter dated December 5th, from Mr. McAdams of Richmond, Presidelat of the American Bankers' Association, requesting a conference between the Federal Reserve Board and a committee of the American Bankers. Associati°11, next Monday, December 12th. Upon motion, the Governor was requested to advise Mr. McAdams that the Board will receive his committee at ten a.m. next Monday, December 12th. Telegram dated December 6th, from the Federal Reserve Bank of 1411eas City, requesting approval or of a subscription to the capital stock e Federal Reserve Bank of Kansas City made by the Farmers National Ilaalit of Chandler, Okla. and the Farmers National Bank of Carnegie, Okla. Appro ved. Letter dated December 6th, from the Director of the Division of lysied Research, with reference to the proposal to move that Division frOm New York to Washington and uiving an estimate of the office space reqflired. 7iller stated that in his opinion it is important that the Div of Analysis & Researeh bc brouFht to WashinEton, and also important reports and 9tathat it be housed in the same buildinc- as the Division of "sties, in order that better cooperation may be secured between the two cli visions, and moved that the Governor be authorized to negotiate a lease the necessary additional quarters in the Papley Building, with a view to moving the Division of 4knalysis & -7esearch to Washington on nay 1, 1922. Carried. for the reThe Governor presented to the Board a proposed plan and upon. 41‘rangement of the Board's offices in the Treasury Building, M°tion, it was voted that the Governor be authorized to have plans pre1..)4red and to secure estimates of cost, with a view to consummatine the assembly room 1)r°Posed clianges, and securing Proper equipment for the new to be secured by reason of th( proposed rearrangement of the rooms. Governor of the Letter dated December 6th, from nr. Case, Deputy Pedcral Deserve Bank of New York, requesting Governor Harding to outline to the. other Federal Peserve banks a Proposed plan by vhich each Federal of ileserve bank shall invest in Victory Notes up to the estimated amount at not above par, with its franchise tax payment due December Z1, 1921, t1e, from the banks at the Understanding that the Treasury viii take over 4 end of the year such notes as they have purchased at the prices paid plus c ommissions and accrued interest to the date of their taking over by the Treasury. . Mr. Case also stated that the Under :3ecrAary of the Treasury had approved of this Plan. It was the sense of the Board that the plan suggested by MT. Case was proper and desirable, if concurred in by the Treasury Department. Letter dated December 2d, from the Secretary of the Federal Deserve 13ani: of Chicago, transmitting the action of the Building Committee of that 411k, providing that on December 31st of t;'.As year, the Bank shall set aside the reserve of an amount sufficient to brinr the book value of the building down to a fair replacerv.nt value. Approved, it being understood that the Federal Deserve Bank of Chicago will comply with the Board's circular letter X-3258, dated November 30, 1921, and charge out of current earnings only of the building cost, the balance of chargeoff being against the super-surplus of the Bank. Letter dated December 3d, from the Secretary of the Federal Reserve Bank of Chicago, stating that it may be necessary for the deal involving the Purchase of a lot in Detroit to be closed within the current year, and "king that the matter be brought before the Board imtime for the Federal l eserve Bank of Chicago to take firm action prior to December 31st. Upon motion of Mr. Hamlin, it was voted that the matter of the purchase of a lot for the Detroit Branch by the Federal 'serve :ank of Chicago be laid upon the table, until Mr. Miller and Lr. Mitchell shall have an opportunity to go to Detroit for the purpose of getting information upon which they may base a final report to the Federal Reserve Board. -4-• Memorandum dated December 7th, from the Assistant Secretary of the Board, recommending the appointment as an additional cataloger in the f3ard'5 Library of Miss Edith Cheney, at an initiarsalary of $1440 per . annum Approved. Memorandum dated December 7th, from the General Counsel, recommendfor the Board's approval, a plan vhereby the National Shawmut"Bank, or Boston, may write down the value of certain shares of the capital stack Shawmut °f the Shawmut Corporation and acquire certain other shares of the Corporation Ishich are now owned by the Guaranty Crust Company and four New fleland banks. Approved. Governor Yarding stated that the next thing in order would be the special order business docketed for consideration today, namely, the electof Class "C" Directors at the twelve Federal reserve banks whose term (3 r office expire December 31, 1921, and not including the Federal Reserve Ileents at 3t. Louis ancl Chicago wholwere re-elected by the Board at its illeetinc of 9aturday December 3d. Mr. Platt, Chairman of the Nominating C°111Mittee, submitted to the Board a report signed by all members of the ComSlittee, setting forth the recommendation of the Committee for each District. The Board, upon vote, concurred in the recommendation of the Committee in all those districts wherein the Committee submitted a single name. In those cases wherein the Committee submitted more than one name, ballots were tnken, In order to make a selection from the .nominees. The following were duly elected Class "C" Directors of the respective Federal Reserve banks for a term beginning Jan. 1, 1922 and ending December 31, 1924. 6 -5- Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Bank Bank Bank Bank Bank Bank Bank Bank Bank Bank of of of of of of of of of of Boston New York Philadelphia Cleveland Richmond Atlanta Minneapolis Kansas City Dallas San Franc isco Allen Hollis Clarence Mott Woolley Chas. C. Harrison W. W. Knight F. A. Delano Lindsey Hopkins Homer Clark Heber Hoard W. B. Newsome W. N. Moore In connection with the above vote, the Nominating Committee sub'flitted for Class "C" Director of the Federal Reserve Bank of New York, Mr. Clarence Mott Woolley and Mr. R. C. Leffingwell. The ballot, counted by the Secretary, disclosed a vote of five to one in favor of Mr. Woolley. The Nominating Committee submitted for Class "C" Director of the 1?ederal Reserve Bank of Cleveland, Mr. W. W. Knight and Mr. V. L. Mullins. The ballot, counted by the Secretary, disclos ed a vote of five to one in tavor of Mr. Knight. The Nominating Committee sibmitted for Class "C" Directo r of the ?ederal Reserve Bank of Kansas City, Mr. Heber Hoard, Mr. F. 0. Roof and 1111'• W. F. Comstock. The first ballot, counted by the Secretary, disclos ed that Mr. Hoard had received three votes, Mr. Roof two votes and Mr. Comatc)ck one vote. No election resulted and a second ballot was taken, which Ilesulted in a vote of five for Mr. Hoard and one for Mr. Comstock. In In all other cases the Nominating Committee submitted only one 141111e and. in such cases the election was unanimous. The Governor stated that the next thing in order vcould be the (lesignation of Deputy Chairmen of the Boards of Directo rs of the Federal Ile/serve banks for a term of one year, beginning January 1, 1922 and end- -6- ing December 31, 1922. The ibllowing wore duly elected Deputy Chairmen: Federal Reserve Federal Reserve Federal Reserve Federal Reserve Federal Reserve Federal Reserve Federal Reserve Federal Reserve Federal. Reserve Federal Reserve Federal Reserve Federal Reserve Bank of Boston Bank of New York Bank of Philadelphia Bank of Cleveland Bank o f Richmond Bank of Atlanta Bank of Minneapolis Bank of Kansas City Bank of Dallas Bank of San Francisco Bank of. Chicago Bank of t.Louis Allen Hollis W. L. Saunders H. B. Thompson L. B. Williams 'James A. Moir ure W. H. Kettig Homer P. Clarke Heber Hoard W. B. Newsome Walton N. Moore James Simpson John W. Boehne In the above cases all nominees were unanimously electe d, except ill the case of the Federal Reserv e Bark of St.Louis, Mr. Boehne received tilree votes and Mr. C. P. J. Mooney received two votes. In the case of the Federal Reserve Bank of Kansas City, Mr. Hoard teceived three votes and Mr. F. W. Fleming received two votes. In these two cases the Governor did not vote and the election te malted in the choice of Mr. Boehne and Mr. Hoard. Upon motion, the Governor was authorized to make a formal press 44110 uncement covering the appointment by the Federal Reserve Board of Chairmen, Deputy Chai rmen , and Class "C" Directors. Upon motion of Mr. Hamlin, it was voted that the Nominating Comt4ittee, consisting of Mr. Platt, Mr. Mitche ll and. Mr.Crissinger, be conuntil after the Board has disposed of the matter of selecting th*Q8e branch bank directors Nthich are annually selected by the Federal -7- Reserve Board, with a view to making recommendations to the Federal ReBoard of persons to act during the year 1922. REIPORTS OF COLITIPTE" NO. 1. Dated December 6th, Recommexxling changes in stock at Federil reserve banks as set forth in the auxiliary minute book as of this date. Approved. At 1:00 p.m. the meeting adjourned. Secret.ary.
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