Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, February 17, 1919, Volume 6, Part 1

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114

At a meeting of the Executive Committee of the
Federal Reserve Board held in the office of the Board on
February 17, 1919, at 10:30 A.M.,
PRESENT: The
Mr.
MI'.
Mr.

Governor
Miller
Hamlin
Broderick, Secretary.

Business was presented and disposed of as follows:
The Governor reported the following rediscount
transaction pursuant to authority heretofore vested in him:
February 17th, Federal Reserve Bank of
Minneapolis for Federal Reserve Bank of Richmond, 410,000,000 member bank eleven to fifteen
day collateral notes secured by Government
obligations; rate 4%.
Noted.
Telegram dated February 15th, from the Governor of
the Federal Reserve Bank of Dallas, in re use by banks of
franked envelopes for transmission of Foreign Exchange circulars.
Referred to General Counsel for opinion.
Letter dated February 14th, from the International
Banking Corporation, announcing the contemplated opening
by it of a branch at Tsingtau, China.
Noted.
Letter dated February 15th, from the Federal Reserve Agent at Atlanta, advising of amendment to the by-laws




115

of the Federal Reserve Bank of Atlanta to fix time of meetings of the Board of Directors at ten o'clock A.M., instead
of at one o'clock P.L.
Noted.
Letter dated February 15th, from the Federal Reserve
Agent at Atlanta, advising of the resignation of kr. J. A.
McCord as uovernor of the Federal Reserve Bank of Atlanta,
effective March 1st.
Noted.
Letter dated February 15th, from the Federal Reserve
Agent at Atlanta, tendering his resignation as a Class "C"
Director, as Chairman of the Board of Directors and as Federal Reserve Agent of the Federal Reserve Bank of Atlanta,
effective March 1st.
Approved.
Letter dated February 15th, from the Federal Reserve
Agent at Atlanta, advising of the election of Mr. M. B.
Wellborn as Uovernor of the Federal Reserve Bank of Atlanta,
at the rate of .115,000 per annum, effective March 1st, subject to the approval of the Federal Reserve Board.
Approved.
On motion duly seconded, Mr. J. A. McCord was appointed a Class "C" Director of the Federal Reserve Bank of




116

-3Atlanta for the period March 1, 1919 to January 1, 1921,
to fill the vacancy caused by the resignation of Mr. M. B.
Wellborn.

Voted that Mr. McCord be designated as Chairman

of the Board of Directors and Federal Reserve Agent of the
Federal Reserve Bank of Atlanta for the remainder of the
calendar year 1919, at a salary at the rate of 610,000 per
annum.
Letter dated February 15th, from the Federal Reserve
Agent at Atlanta, requesting approval of salary at the rate
of 47,500 per annum, effective March 1, 1919, for Mr. L.C.
Adelson, elected Deputy uovernor of the Federal Reserve
Bank of Atlanta.
Approved.
Letter dated February 15th, from the Federal Reserve Agent at Atlanta, requesting approval of a salary of
$5,000 per annum, effective April 1, 1919, for Mr. J. M.
Slattery as Secretary of the Federal Reserve Bank of Atlanta.
Approved.
Letter dated February 15th, from the Federal Reserve Agent at Atlanta, requesting approval of salary of
,;*2,000 per annum, effective February 15, 1919, for Mr. H.Y.
Jackson as Manager of the Transit Department of the Few
Orleans Branch of the Federal Reserve Bank of Atlanta.




-4Approved.
The uovernor stated that he had submitted these
appointments and salaries to the Secretary of the Treasury,
who desired to be recorded as voting for their approval.
Letter dated February lbth, from the .Federal Reserve Agent at Atlanta, advising of the rescinding of the
resolution heretofore adopted by the Directors of that bank,
placing the executive management of the bank in the hands
of the Chairman of the Board of Directors.
Noted.
REPORTS Or GuLLIAITTEE NO. 1:
Dated February 15th (3 reports) recommending changes in
stock at Federal Reserve banks as set
forth in the auxiliary minute book as
of this date.
Approved.
Dated February 17th,recommending action on applications for
fiduciary powers as stated in the auxiliary minute book as of this date.
Approved.
Dated February 14th,recommending approval of application
of W. B. Irvine for permission to
serve at the same time as director and
vice president of the Lational Bank
of West Virginia, Theeling, ;rest Virtsinia, and as director and president
of the Farmers National Bank of Claysville, Pa.
Approved.
Dated February 8th, recommending approval of salary of
42,400 per annum for Mr. Earl K. Pettit




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-.5as National Bank Exaniner, Third Federal Reserve District.
Approved.
Letter dated February 15th from Assistant Secretary
Adelson, tendering his resignation as such, effective March
1st, to accept the office of Deputy Governor of the Federal
Reserve Bank of Atlanta.
Approved.
Other business was presented and disposed of as
follows:
Letter dated February 14th from the Department of
State, advising of the opening on February 3d, of the
Vladivostok Branch of the National City Bank of New York.
Noted.
Letter dated February 15th from the Director of the
Division of Foreign Exchange, submitting for approval, form
of notice raising restrictions on transfers of funds to
persons other than enemies or allies of enemies resident
in Bulgaria, Turkey in Asia, Turkey in Europe, and all Black
Sea ports.
Approved.
Letter dated February 10th, from Messrs. Miller,
Seiler and Hunter, Elizabethton, Tennessee, in re exchange
charge on check from Canada.




-6Referred to the Governor for reply.
Letter dated February 11th from the Federal Reserve Agent at St. Louis, recommending increase in the
salary of the Cashier of the Uemphis Branch from *13,000 to
0,600 per annum, effective February 1st, and recommending
the amendment of the by-laws of that Branch to provide
for the appointment of an assistant cashier.
Referred to the Secretary for report.
Letter dated February 13th from Deputy Governor
Sailer, Federal Reserve Bank of New Xork, submitting for
approval, agreement to be entered into by that Bank for the
lease of quarters for the Buffalo Branch of the Federal Reserve Bank of New xork.

The Governor reported that he had

investigated the matter and was satisfied that the arrangement contemplated was the best that could be effected.
Approved.
Letter dated February 15th from Assistant Secretary
of the Treasury Leffingwell, suggesting educational work
by Federal Reserve banks to protect against possible counterfeiting of coupons of Liberty Loan bonds.
Referred to the Governor with power.
Letter dated February 13th from Ur. Theodore H.
Price of New York, enclosing letter from Mr. H. H. Gordon,




If 0

-7Jr., Athens, Georgia, complaining of discrimination in requirements of membership for State banks.
Referred to the Governor for reply.
Letter dated February 13th from the Federal Reserve
Agent at St. Louis, in re application of the Edwardsville
National Bank, Edwardsville, Illinois, for permission to
exercise fiduciary powers.
Referred for report to the Committee on
Fiduciary Powers.
Letter dated February 13th from the Federal Reserve
Agent at St. Louis, in re payment of checks drawn by ineligible non-member banks through Federal Reserve banks.
Noted.
Letter dated February 14th

from the Federal Reserve

Agent at Philadelphia in re suggestion of eederal Reserve
Examiner that the Credit Department of the Federal Reserve
Bank of Philadelphia be placed under the direction of an
assistant cashier and joint control with the Governor and
Chairman or the Board.
Referred to the Secretary for reply.
Telegram dated February 11th from the Federal Reserve Agent at San Francisco, in re State ftaminer's report
of examination of the Scandinavian American Bank, Seattle,
Washington.




-8Referred to the Secretary for submission
of form of reply.
Letter dated February 14th from the Governor of the
Federal Reserve Bank of Dallas, in re discounts of Farmers
Guaranty State Bank, Jacksonville, Texas.
Referred to the Governor for reply.
Letter dated February 11th from the Keokuk Trust
Company, Keokuk, Iowa, in re connection of Directors of the
Federal Reserve Bank of Kansas City with an oil stook selling company.
Referred to the Governor for investigation
and report.
At 11:30 A.31., the meeting adjourned.

Approved: