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A meeting of the Federal Reserve Board was held in Ur) Office of the Bovrd on Friday, February 25, 1921, at 11:25 a.m. PRES=T: Governor Harding Mr. Platt Mr. Hamlin Mr. Miller Er. Wins -r. Hoxton, Secretary. Millutes of the meeting of the Board held February 24th were read and, on motion, approved. The Governor reported the reserve positions of the sev-ra1 Federal Reserve banks as at close of business Febru ry 23d, z=1-4 the status of rediscounts between the Federal Reserve banks as of the same date. The Governor reported rediscount transactions, member bank Promissory notes secured by Government obligations, rate 7%, as follows: to Bank rediscount in Peb. 24 Dallas Amount With Cleveland. !14,000,000 Maturities 11-15 days Letter dated February 24th, from the Railway Loan Advisory norvdt requesting approval of a. form of loan, in the amount of n234,000, to be made to the Yew Orlenns, Texas aril 7ex' 30 Railway Company, under the provisions of Section 210 of the TrmIsportation Act, 1920, as amenied. Appro ved. -2- 1G; Letter dated. Febral.ry 24th, from the Railway Loan _‘dvi. sory Committee, recuestin.7 approval of a form of loan, in the amount of' '1,?99,000, in six parts, to 'oe made to the ")eoria and ?ekin Union Railway Company, under the provisions of Sect on 210 Of the (2ran wortation Act, 1920, as amended. ved. Letter dated Februrry 24th, from the '.ssistant Secretary Of the Treasury, enclosin copy of letter to the governor of the Federal Reserve Bank of Liimeanolis authorizinc, the Helena Tranch to commence coin and currency operations on 7arch 1, 1921. iToted. Telegram dated February 24th, from the Chairman of the Federal Reserve Bank of San Francisco, advising that the Executive Commit tee of that bank has adopted reconnendat i on. to the Bo 'd of Di rectors for present at ion at next Tuesday's meeting that L. C. Thntius be ernployed as_'ssistant Deputy governor, at a salary of 10,000 per annum. Upon motion, the Secretary was directed to advise 2errin that the appointment of T -r. Fontius for the position and salary indicated 7.75_11 be approved ty the Federal 'Rescrve Board. Draft of letter dated Febrmry 24th, to the Assistant Federal Reserve ,Agent at Cleveland with reference to interlocking directorates between the Union Trtzt Company, the Farmers Deposit TTtional Bank. the Farmers Deposit Savings Bank, and the -3- 165 Farmers Deposit Trust Comeany, all of Pittsburgh, TZeferred to the Committee on administration of the Clayton Act with power. Upon invitation, 7.es srs Buck and. Hopi', represent in - 2ncher, Curtiss, Sayre, Kenz el, 2 the Pension Committee of the several 1?edera1 Reserve banks, entered. the meetin. At this point Mr. ! Iilliams withdrew from the Meeting, at 11:53 a.m. behalf of the Pension Co Er. Menzel, in it tee, gave a brief- statement of the es- sentials. of the pro -posed. pension plan, and distributed. to the man13ers of the Beard the Committee's report thereon. Governor Harding suested that the menters of the Board would require time to examine the report of the Committee prior to further conference, and it Was, therefore, ordered that the conference be resumed at 3 p.m. this afternoon. Thereupon. representatives of the Pension Committee viithCuew from the rreetinse and I:T. 7/i11iams entered at 12 o'clock. Letter dated. Februa-y 21st, from the Chairman of the FedOral :Reserve Bank of St.Louis, transmitting a request from the American Acceotance Council that the said balk furnish the Council Periodically with reports on the current condition of the accept- ance ma-ket in that district. Upon motion, referred to the Director of the Division of Analysis e- Research, with the request that he take up with all Federal Reserve banks the matter of incorporating in the monthly reports of the Federal eserve Agents a review of the current condition of the acceptance maiket in each district, with a view to su,T)lying; the American Acceptance Council with advance copies for publication by the Council after the publication of the several monthly reports. rje, With reference to the request of the Chairman of the Board Of the Federal Reserve Bank of San -1ra,ncisco that that bank be .4 allowed to add. four additional stories to its bank buildin(r. 1-overnor Harding reported that the Consult tug Architect had recerrnende(1 that authority for such additional construction be aianted by the Federal Reserve Board. Upon motion, it was voted to mathorize the Federal Reserve Bank of San Francisco to construct four additional stories to its bank building, at a cost of approximt ely 9OO ,000. At this point Governor Eardin,' , advised the Board that the Chairman of the Federal Reserve Bank of 7;ecv York. was in the build- , and it was, therefore, ordered that Hr. Tay be invited to attend the nxfeting. Hr. Williams moved that in view of all conditions, ineludthe success of the 5'7 rate in the Richmond, Cleveland, Phila.aelphia and 3a2.1 Lra.n.c isco districts, the Federal Reserve Board request all the Federal Reserve banks, effective 17arch 1, 1921, to adopt a maximum discount rate of 62 ,(At this point Mr. Jay entered the meeting.) Hr. Williams also moved that the Federal Reserve Board requests the abolition as of l'arch 1st of the progressive rate in all those districts where the 9ro);ressive rate is now aoDlied; also, that effective T:arch 1, 1921, the Federal Reserve banks be requested- to establish a rate of 4-?-4, upon member banks' loans secured by Liberty bonds in cases vizier° the Liberty bonds were purchased origin- by the member banks at Dar, such loans to be made on condition that the borrowers shall make reasonable reduction every 60 days, it both -- understood that the Federal sl-lch loans at said 4- eserve banks shall not grant rate when they are applied for to obtain new Money not needed for essential ourposes, or not needed to prevent the borrower from being driven to the nocessit-r of selling bonds costing him 100. by Resarve • The above 41T% rate shall also apply to discount iirs of notes nude by the customers of memb-•r banks Wh011 secured by Liberty bonds \711.1.ch were paid for at par, aal vLich belon-: to the borrowers as °rip:in.-11 subscribers. It was unanimously agreed to -postoone further discussion and action upon the said motions until 10 o'clock tomorrow morning. 11141PO11T5 OF C0LTIITTF2, f0. 1: Dated February 24th, Reconmeixiing admission of State institutions as set forth in the auxIliary minute book as of this rir,te, subject to the individual reoorts attached to each applicati on. Approved.. Dated February 25th, 72ecorrmen din- that authority be given to certain rvtional bunks to ourchase stock in corporations organized under the id7e Act, as set forth in the (.1123dliary minute book as of this date. Approved. Dated February 24th, Reco nine nd.in; q)pro val of the application of the Los .1.nre1es Trust Savings Rank to establish a branch at 120 rain Street. runtin-ton Beach, California. P.)proved. Dated 7ebrittry 23rd, Recemending refusal of the anolic:- tion of hr. J. Durham to serve at tIn same time as director of the Independence Trust Co., and. as director of the Coiane,rcial hat ional Bank, both of Charlotte. Approved. 168 -6- Dated February 23rd, :eeforanendinf2 refusal of the a)plication of 7'r. 7. 3. Alexander to serve at the SL'In0 time as director of the conmercial rational Bank., anc. s ::7 11.e,ltor of the charlotte tional Bank, both of Charlotte, -.C. Approved. Dated February 23rd. Tecommendine; a:)proval of the application of John G. rattos to serve at the scme t krie as director of the First 7-ationa1 Bank of Oakland, Cal. and as officer and director of the 21 rst Uat ionnl Bank, Centerville, Cal; and recommendia3 refusal of Mr. T'ottos' applicti on to serve at the same ti:ne as direct or of the First 1Tational Bank of Oakland. and as officer and director of the Bank of Italy, Sala Francisco, Calif. Appro ved. Dated February 23rd, Recommendin,r; a )proval of the application of T.!crear to serve at the same T'r.rireorc.,e time as director of the Bank of California, 7.A., as president and director of the Sonoma County :at ional Bank of 'petal, Cal. and as vice president and director of the First ITationo.3. Bank of Sebastpool. A ,-)pro ved.. 2,t 1:10 p.m the rneotinC adjourned. Secretary. Approved: qovernor.
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