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At a meeting of the Federal Reserve Board held in the office of the Board on Friday, February 20, 1920, at 11 A.M., PRESENT: The Mr. Mr. Mr. Mr. Kr. Governor Strauss Miller Hamlin Moehlenpah Chapman, Secretary. PRESENT ALSO: Mr. Harrison, General Counsel. Minutes of meeting of the Board held February 19th were read, and on motion approved. Business was presented and disposed of as follows: The Governor reported rediscount transaction, pur- suant to authority heretofore vested in him; member bank promissory notes secured by Government obligations, rate 4-3/4;; on paper secured by certificates of indebtedness, and 5-1/210 on paper secured by Liberty bonds and Victory notes, as follows: Bank Rediscounting Date With Amount ,:-V2,000,0O0 (Atlanta 5,0u0,000 Philadelphia...)Chicago (Kansas City 5,000,000 5,000,000 )Dallas Feb.1Sth Maturities 11-16 days Noted. i m ne Governor reported the reserve positions of the several Federal Reserve banks as at close of business February -218th, and the status of rediscounts between Federal Reserve banks as of the same date. Memorandum dated February 19th by Mr. Emerson, recommending that additional telegraphic circuit be installed between the Washington, Philadelphia and at a cost of rev, York offices 21U per month, and the employment of an ad- ditional telegraph operator in the Washington office at a salary of w15U per month. Approved. Memorandum by Mr. Hoxton dated February 16th, in re pension plan for employees of Federal Reserve banks outlined in letter from Mr. Xenzel dated February 9th. Referred to the Governor for report. Letter dated February 17th from the Chairman, Federal Reserve Bank of Richmond, submitting Annual Report of the operations of that Bank covering the year 1919. Ordered circulated. Memorandum of the Comptroller of the Currency dated February 18th, recommending approval of the application of the First National Bank of Commerce, Texas, to reduce its capital stook in the sum of 4;25,000. Approved. -3RaORTS OF COLLMITT41E O. 1: Dated ieb. 20th, recommending 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 each application. Approved. Dated Feo. 19th, recommending approval of application for fiduciary powers, as set forth in the auxiliary minute book as of this date. Approved. Dated Feb. 19th, submitting resignation of Alberta B. Houser as Counter Clerk at ,,,1,040 per annum, on duty in the National Bank Redemption Agency, effective at the close of business February 15, 1920. Accepted. Dated Feb. 20th, recommending the employment of two laborers at a salary not exceeding $1,100 each per annum, for assignment temporarily to the Redemption Division of the Office of the Comptroller of the Currency. Approved. Dated Feb. 20th, recommending the appointment of Mr. M.H. Rice in the Division of Analysis and Research at 41,b00 per annum for full time, with understanding that he is to work on a half time basis, such appointment to be made for a thirty day period subject to renewal if desired. Approved. Other business was presented and disposed of as follows: The Governor submitted for approval the following draft of a proposed amendment to the Federal Reserve Act: "Be it enacted by the Senate and House of -4Representatives of the United States of America in Congress assembled, That Section 14 of the Federal Reserve Act as amended by the Acts approved September 7, 1916 and June 21, 1917, be further amended by striking out the semicolon after the word "business" at the end of sub-paragraph (d) and inserting in lieu thereof the following: ,and which, subject to the approval, review and determination of the Federal Reserve Board may be graduated or progressed on the basis of the amount of the rediscount accommodations extended by the Federal reserve bank to the borrowing bank." Approved. Considerable discussion was had of the difficulties encountered in certain of the southern States in securing remittances at par by certain banks for items drawn upon them. On motion duly seconded, there was appointed a committee consisting of the Governor, the Law Committee and General Counsel, to formulate and present to the Board for approval, draft of legislation to be enacted by Congress to make effective that provision of Section 13 of the Federal Reserve Act prescribing that no exchange charges shall be made against Federal Reserve banks. It was voted further that the Governor submit for approval, an appropriate schedule of charges to be imposed by member banks on their customers for the collection of items drawn on out-of-town banks. On motion duly seconded, it was voted that the question of the appointment of a successor to Mr. E. T. Meredith as Class "C" director of the Federal Reserve Bank of Chicago be made special order business for the meeting of the Board to be held on Tuesday, February 24th. 1,:r. Strauss read a letter addressed to him by Mr. Yenzel of the Federal Reserve Bank of Now York. giving tne views of certain representative bankers as to whether or not an embargo should be placed upon the export of gold from the United States, and suggested that upon his next visit to New York the Governor discuss with the directors of that Bank the advisability of appointing as Director of the Board's Division of 'oreign Exchange a man who could keep the Board better informed as to the situation than could an Assistant Cashier of the Federal Reserve Bank of New York, who can not devote his entire time to the work. Letter dated February 16th from the Chairman, Federal Reserve Bank of Minneapolis, requesting approval of the appointment of Lr. J. F. Ebersole as Assistant Federal Reserve Agent of that Bank at a salary of 4,500 per annum. Approved. At 1-10 P.M., the meeting adjourned. Secretary. Approved:
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