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147

At a meeting of the Executive Committee of the Federal Reserve Board held in the Board Room on February 28,
1919, at 11 A.M.,
PRESENT: The Governor
Er. Hamlin
Mr. Broderick, Secretary.
Business was presented and disposed of as follows:
Reports of discount rates received from Federal Reserve banks; no changes recommended.
Noted.
The Governor reported the following rediscount
transaction pursuant to authority heretofore vested in him:
February 27th, by Federal Reserve Bank
for the Federal Reserve Bank of
Chicago
of
Philadelphia, 445,000,000 member bank 15 day
collateral notes secured by Government obligations; rate 4;;.
Noted.
Memorandum by the Comptroller of the Currency recommending approval of the application of the American National
Bank of Waynesburg, Pa., for permission to reduce its capital stock from 4200,000 to 4100,000.
Upon condition that the entire amount of
reduction be used to take out of bank slow
and doubtful assets; approved as submitted.
Telegram from Federal Reserve Agent at San Francisco, asking Board's approval of penalty for deficient reserves, increasint; progressively each month.




-2Approved.
Memorandum by the Secretary dated February 28th, advising against the establishment, at the present time,of a
bureau of barometrics; stating that the plan will be published
in the March Bulletin, and suggesting that galley proof containing plan be sent to all Governors and Federal Reserve
Agents for expression of opinion.
Secretary authorized to submit to Federal
Reserve Agents and Governors for suggestion.
The following reports were submitted:
Dated February 27th, recommending approval of the application of William B. Megear for permission to serve at same time as director of the National Bank of Smyrna,
Delaware, and the Equitable Trust Company, Wilmington, Delaware.
Approved.
Dated February 27th, recommending approval of application
of D. W. Corbit for permission to
serve at same time as director of the
New Castle County National Bank, Odessa,
Delaware, and the Equitable Trust Company, nlmington, Delaware.
Approved.
Dated February 27th, recommending approval of application of
G. A. Kelley, for permission to serve
at same time as director or president
of the Lufkin National Bank, Lufkin,
Texas, as director of the Guardian Trust
Company, Houston, Texas, and as director
of the Union National Bank, Houston,Tex.
Approved.
Dated February 27th, recommending approval of application of




149

-3R. H. Dunham for permission to serve
at same time as director of the Liberty
National Bank, Eew York City, and of
the Equitable Trust Company, Wilmington,
Delaware.
Approved.
Dated February 25th, recommending changes in stock at Federal Reserve banks as set forth in the
auxiliary minute book as of this date.
Approved.
Other business was presented and disposed of as follows:
Letter dated February 26th from the Federal Reserve
Agent at Cleveland, inquiring if the Board would object to the
Federal Reserve Bank of Cleveland taking out membership in the
American Acceptance Council.
Referred to the Secretary for reply that
Board will interpose no objection, but suggesting that Mr. Wills confer with his own Counsel
as to the propriety of such action.
Letter dated February 24th from the Governor of the
Federal Reserve Bank of Dallas, in re apparent violation of
Section 22 of the Federal Reserve Act by the Farmers Guaranty
State Bank of Jacksonville, Texas.




Voted that the Governor communicate to the
Attorney General of the United States the facts
presented, for such action as may be deemed proper.
Voted that circular letter be sent to all
Federal Reserve Agents, instructing them to report
to the Board promptly each and every violation or
apparent violation of Section 22 of the Federal Reserve Act.

150
-4Report by the Supervising Architect of the Treasury
Department, dated February 27th, in re building plans of
the Federal Reserve Bank of Richmond.
Referred to Mr. Hamlin for report.
:Zemorandum by General Counsel dated iebruiry 27th, in
re loss of interim certificate for 400,000 by the Hibernia
Bank and Trust Company of New Orleans.
Referred to the Governor with power.
Opinion of Assistant Counsel Harrison dated February
27th, in re application of the Lumbermens Trust Company,
Portland, Oregon, for membership in the System.
Referred to Mr. Hamlin for report.
Opinion of Assistant Counsel Harrison dated February
24th, in re security for drafts accepted by the American
Foreign Banking Corporation, New York.
Referred to Mr. Hamlin for report.
Opinion of Assistant Counsel Harrison dated February
24th, in re Section 11 (k) - deposit of securities with State
officials by National banks exercising trust powers in Minnesota.
Referred to Mr. Hamlin for report.
Letter dated February 20th from the Governor of the
Federal Reserve Bank of Kansas City, suggesting an agreement




151

-5between the Treasury Department and the several Federal Reserve banks to permit Federal Reserve banks to cancel and
forward to the Treasury Department unfit Federal Reserve notes
of other Federal Reserve banks in the same manner as their
own.
Referred to the Secretary for report.
Letter dated February 28th from General Counsel
Elliott, submitting his resignation as such, effective March
1, 1919.
The resignation was accepted, and on
motion duly seconded Mr. Hamlin was requested
to prepare and submit to the Board at its
meeting to be held on Monday, March 3d, suitable form of resolution bearing upon Mr.
Elliott's resignation.
The Secretary submitted for approval form of press
statement announcing the resignation of Mr. Li. C. Elliott
as General Counsel; the appointment of Mr. George L. Harrison as his successor, and the appointment of Mr. Elliott
as Consulting Counsel, effective March 1, 1919.
Approved and ordered published in the
March Bulletin.
Letter dated February 27th from the Comptroller of
the Currency, requesting approval of sundry increases in
salaries of National Bank examiners.




Approved as submitted.

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Memorandum by the Secretary dated February 26th,
recommending approval of the appointment of Mr. A. J. Kunz
as Assistant Federal Reserve Examiner at a salary of 42,500
per annum.
Approved.
Memorandum by the Secretary dated February 28th,
submitting for approval, form of telegram to all Federal
Reserve bunks in re schedule showing when proceeds of bankers acceptances will be available if collected through Federal Reserve banks.
Approved.
At this point Er. Harrison, Assistant Counsel,
joined the meeting and submitted for approval redraft of
Counsel's memorandum dated January 4th, in re security of
acceptances in excess of 10h.
Referred to the Law Committee for report.
The Governor reported the reserve positions of the
several Federal Reserve banks.
At 12 noon the meeting adjourned.

Approved: