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A 2I At a regular meeting of the Federal aeserve Board held in the office of the Board on Tuesday, December 8th, at 3:00 p. m. PRESENT: Mr. Hamlin I:1r. Warburg Mr. Delano Mr. Harding Mr. Williams Miller. The Governor of the Board presided and Lir. H. P. Willis acted as secretary to the meeting. The minutes of the preceding meeting wore read and anproved. The Secretary of the Board presented letters from Federal Iteserve Agents Bosworth and Ingle and Deputy Federal Reserve Agent Smith, relating to the use of additional security to protect discounted paper in those cases where the value of a member bank endorsement was doubtful. After discussion, these communications were referred to Li'. Warburg, as Chairman of '.3ubcommittee B, Standing Committee 43. ,0 A letter from Federal Reserve Agent Martin regardino definition to oe given agricultural paper, 4.11 as also referred u- Warburg. A communication from the auperintendent of Banks of ,1104 minnesota regarding proposed legislation in Minnesota, was reJ-0- 0 42 to Federal Reserve Agent Rich for such action as might be deemed necessary. Questions relating to the treatment of pal-,er originating with finance companies were referred to la*. Warbur,;as ihairman of Subeommittee B, „itanding Committee #3. The question of changing the discount rate in varioas districts was taken up and on motion it was directed that Federal Reserve Agent Jay be asked to ascertain the rates charged by New York banks for accomodat ions to banks in the South. A calmunication from Federal Reserve Agent Rich to the effect that the rate of discount at 2:innearolis had been changed to 6 was read to the Board. On motion it was voted to take up the whole question of discount rates at the several banks for reconsideration on ::onday, December 14th. The Board further ordered letters relating to the method by which reserves had been paid in in the several districts, to be compiled on a comparative basis. After discussion of the question of*appointinc J. F. Crowell to some post under the Board, the matter was Laid on tne table. The Se3-:etary of the Board presented a letter and accompanying circular from Deputy Federal Reserve Agent Smith 429 of it. Louis regarding the inauguration of check clearances in the St. Louis district. On motion this matter was laid on the table. A variety of communications from country banks, regarding the abolition of exchange charges were referred to Nr. Harding as special committee, for consideration and report. On motion, it was voted that Christmas payments made by banks to employees if reasonable and if regarded as practical.° a part of compensation of employees, did not constitute a viols" tion of the Federal Reserve Act. The withdrawal of tne nunsey Trust Company and the Savannah Trust Company of their applications for membership Da the Federal Reserve system were presented to the Board and 10,14 on the table. On motion, the ouestion of fixing a date for the cork' sideration of the appeal of Baltimore from tne decision of the Organization Committee, was laid on the table until the meetia of Wednesday. The question of permitting Federal Reserve banks to purchase school warrants was considered, and, after discussion, no action was taken, owing to the absence of rules and roguls' tions on tne subject. 40c) The case of Walter 3. Hackney was referred for consideration at tne approaching meeting of bank=ers in this City. Communications with reference to tne amount of acceptances for any one bank were referred to the Governor and Counsel. Armlications for stock filed by the American ::ational Bank of Pensacola, tae Burlington :Tational Bank of Burlington, Washington, the First :ational Bank of Amherst, Nebraska, tne First :ational Bank of Oregon, Wisconsin, and the Grange National Bank of Potter County, Pennsylvania which had been found in due form, were approved. The question of an assistant to Federal Reserve Agent _Perrin was referred to Li'. HL.lin as Chairman of Standing Committee it5, and tie Counsel to the Board. A letter from Governor Aiken regarding -Lie opening of tie Boston Stock xchange was 1-,resented to the Board and ordered acknowledged. hr. Williams moved tftit former employees of tne staff of the Organization Committee be exemyted from examination. After discuision the matter was laid on the taule. Communications with reference to tLe time of the Advisory Council meeting were considered and tne Jecretary of 431 the Board was instructed to advise distant members to await further information. At the request of Mr. Williams, there was a general expression of opinion on the subject of issuing further emergency currency under the Aldrich-Vreeland law. The trend of opinion was distinctly adverse. On motion, it was voted that the revised draft .of proposed regulations regardLig tne duties of Federal Reserve Agents be sent to each such agent with information that tne draft is tentative and it is desired to nave it discussed and criticised. The method of adjusting telephone charges to mefabers and employees of the Federal Reserve Board was discussed and referred to Messrs. Delano, Miller and Allen. On motion Mr. 01 C. Robinson was voted c -rensatiaa of 425.00 per day with actual expenses, not to exceed 45.00 per day, including clerk hire and travelling expenses for 25 days' service in installing the accounting system in the sever0 banks, prior to December 1st. On motion, the question of photographs of the Board • was referred to the Secretary of the Board. On motion, at 5:30 p. m. the Board adjourned to meet at 3:00 p. in. Wednesday, December 9th. APPROVED: Chairman.
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