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fsq At a meeting of the Federal Reserve Board held in the office of the Board on Friday, February 6, 1920, at li A.M., PRi., LitiNT: The Mr. Mr. Mr. Mr. kr. Governor Miller Hamlin Moehlenpah Williams Chapman, secretary. Minutes of meetings of the Board held on February 4th and 5th were read, and on motion approved. Business was presented and disposed of as follows: The Governor made a very full statement of the observations made by him upon his visit to the Federal Reserve Bank of New York on February 4th and 5th. He stated that he felt confident, as a result of his visit and statements made by him to the Board of Directors of that Bank, that the future cooperation between the Board and those directors would be materially strengthened. He stated that it was the desire of the Federal Reserve Bank of New York to establish a rate of 52; as a minimum at which it might purchase acceptances in the open market, adding that it was the desire of the New York Bank to avail itself of this rate only in the purchase of short term bills, and then only to the extent that the exigencies of the situation might demand. The Governor stated that he was highly gratified to note the .00 rm. 1.4 excellent grasp aad by Mr. Jily upon the affairs of the Bank. The Governor stated further that he was advised by the secretary of the Treasury that it would not be possible for him to attend the meeting of tne Board today, and that he hoped the Board could oostpone, at least until Monday, any discussion of the discount rate situation. Letter dated February 5th from tne Federal I-,eserve Agent at New York, in response to the ]overnor's letter of January 3Jth submitting a report on the conuition of the Guaranty Trust Company of rew York, a member bank. Noted. Letter dated February 3d from Morris Bank, rashville, Tenn., complaining of the policy of lending on collateral of Liberty bonds and Victory notes on the basis of the purchase price, rather than the par value thereof. The Governor sub- mitted for approval, draft of reply by him under date of Februarj 6th. ,i.ddroved. Letter dated lebruary 4th from the Chairman, Federal Reserve Batik of Atlanta, requesting approval of the method of passing on discounts at the New Orleans Branch of that Bank. Approved. /79 -5Letter dated FebIluary 4th from the Chairman, House Banking and Currency Committee, submitting for comment by. the Federal Reserve Board, copy of bill providing for the abolition of the sub-treasuries. Llr. Hamlin explained the origin of the present bill, and in view of the fact that the Federal Reserve Bank of New York was not in accord with the principles of the bill as at present drawn, the Avernor was authorized to request :Ir. Jay to attend hearings by the committee on the bill. Letter dated February 3d from Consulting Architect Trowbridge, making recommendations as to the letting of contract for the construction of a vault for the Federal Reserve Bank of Boston. Referred to tae Governor for report. .Letter dated February 5d from the Chairman, Federal Reserve Bank of Philadelphia, commenting upon the rediscount situation at that Bank, and the selection of a successor to Governor Passmore. Loted. The .Governor stated that in view of the statements made to him by the Board of Directors of the Federal Reserve Bank of New York, and in view of his observations while in row York, he recomiLended that the Board approve a rate of -4Bank of 5,0 t.s the minimum rate at which the Federal Reserve in the open rew York might be permitted to purchase bills market. On motion duly seconded, it was voted to approve the Governor's recommendation, and the Governor was instructed to notify the other Federal Reserve banks of the action of the Board. Mr. Williams stated that in view of the Governor's recommendation, he did not desire to vote against the establishment of the rate, but that it was his opinion at the present time that the rate should be increased rather than decreased. ) Letter dated January 5th from Mr. J. A. Broderick, York, Vico-President of the National Bank of Commerce in New requesting a ruling by the Board as to the eligibility of s certain domestic acceptances secured by warehouse receipt or other such documents conveying or securing title to nonperishable, marketable staples located in the United .3tates. Ileferred to General Counsel for opinion. ). (At this point 1:r. .Miller withdrew from the meeting The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank promissory notes secured by certificates of indebtedness, rate 4-3/4, as follows: Date Feb.:5th Bank Rediscount in With (Chicago Philadelphia..(Dallas Noted. Amount .$6,5(JO,UOu 5,000,WJ Maturities 11-15 days -bThe Governor reported the reserve positions of the several Federal Reserve banks as at close of business February 4th, and the status of rediscounts between Federal Reserve banks as of the same date. Letter dated January 29th from the Chairman, Federal Reserve Bank of San Francisco, containing certain suggestions bearing upon the organization of that Bank. Referred to the Governor for report. Telegram dated February 5th from Mr. Thomas P. Beal, advising that the Boston Clearing House Association had adopted a maximum rate of 2-1/4:: on net and available bank balances. :Noted. :.:emorandum by General Counsel dated February 5th, recommending that the Citizens Javint;s Bank, Pasadena, Cal., be instructed to (mit the word "ational" in advertisinb its connection with the iederal Reserve System. 4i,)jroved. emorandum by la*. Imlay dated February 5th, recommending upon the application of the American Trust Company, Charlotte, N.3., that it be oermitted to estblish a branch in that city. pproved. 11":2 -6R.L.POL.Wi 02 CO=ITTL:11 NO. 1: Dated Feb. 6th, recowmending changes in stock at Federal Reserve banks at set forth in thu auxiliary minute book as of this date. Approved. Dated Feb. 5th, recommending disapproval of application of H. M. 31ackmar to serve at the same time as a director of the First rational Bank, and the International Trust Company, both of Denver, Colorado. Recommendation approved. Dated Feb. 5th, submitting resignation of iilliam J. Ogilvie as Litenosrapher in the Board's Gold Settlement Division, effective February 7th. Accepted. 1:0Dermott Dated Feb. 5th, submitting resignation of as Confidential Clerk to the Chairman of the Federal Reserve Board, effective February 4th. Accepted. Dated Feb. 6th, rocummendinL; appointment of Liss. B. W. O'Hare as Stenographer in the Board's Gold 2ettlement Division at 11,500 per annum, vice William J. Ogilvie, resigned, effective upon reporting for duty. Approved. Dated Feb. 5th, subqAting resignations of the following Clerk Counters at i?,1,040 per annum, on duty in the National Bank Red.ecptioli Agency, effe3tive as indicated: Date Lffective: Feb. 3, 192U Mary A. Doyle, Feb. 4, 1920 Elsie P. Pfleeger Feb. 5, 1920 LucY K. asea Accepted. Other business was presented and dis2osed of as follows: Opinion by General Counsel dated February 4th, with respuct to authority of the Federal Reserve Board to grant profiduciary powers to national banks in Iawaii, under the visions of Lection 11 (k). Approved. ..;C:Greta Adl?rOVed: 4,f,Ya
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