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A meeting of the Federal Reserve Board was held in the office of the Board on Friday, January 20, 1922, at 11:40 a.m. PRESENT: Governor Harding Mr. Platt Mr. Haallin Mr. Miller Mr. Mitchell Mr. Crissinger Mr. Hoxton, Secretary. Minutes of the meeting of the Board held January 18th were read and on motion approved as amended. The Governor reported the reserve positions of the several Federal Reserve Banks as at close of business January 17th and 18th. Telegram dated January 18th, from the Federal Reserve Bank of San Francisco, advising of the establishment by the Board of Directors of that Bank, subject to the review and determination of the Federal Reserve Board of a discount rate of 4?-.-?-% ,- upon all paper of all maturities, and a minimum ala 2,t. 'r7 rate for open market purchases of bankers acceptances. Formally approved, having been approved yesterday by the initials of members of the Board. Letter dated. January 19th, from the Deputy Gorernor of the Federal Reserve Bank of New York, advising that the Board of Directors of that Bank had, subject to the review and determination of the Federal Reserve Board, fixes a rate of 3, --511, 1 as the minimum rate for the open market purchases of bankers acceptances. Approved. -2- Letter dated January 16th, from the Chairman of the Federal Reserve Bank of Philadelphia, requsf sting authority to reduce from 4% to 3i% the minimum rate for open market purchases of bankers acceptances. Appic ved. Leeter dated January 13th, from the Chairman of the Federal Reserve Bank of San irancisco, requesting approval of the Federal Reserve Board for the appointment of certain officers and employes of that Bank as regular and special Federal Reserve Bank examiners. Appro ved. Letter dated January 18th, from the Secretary of the Federal Reserve Bank of New York, advising of the action of the Board of Directors of that Bank in fixing at5,000 a year that portion of the salary of Assistant Architect Ten Eyck which. is to be paid by the Federal Reserve Bank of New York, with the urrierstanding that that , portion which is to be paid by the Federal Reserve Board shall be reduced to :112,500 per annum. Appio ved. Letter dated January 19th, from General E.H. Crowde r, submitting the name of Mr. Clarence Marine for nominat ion by the lederal Reserve Board as a member of the Superior Liquidating Commis sion in Havana, Cuba, in place of Mr. Oscar Wells. Upon motion, it was voted to nOminate Mr. Clarence Marine, upon the recommendation of General Crowder. -3- Letter dated January 17th, from the Governor of the Federal Reserve Bank of Kansas City, submitting resolutions passed by the Kansas City Clearing House Association with reference to freight rates on shipments of wheat stopped in transit, and requesting the Zederal Reserve Board to cooperate in securing favorable consideration by the Interstate Cormrerce Commission. The Govieynor was requested to transmit the resolution referred to/fhe Chairman of the Interstate Commerce Commission without recommendation. Letter dated January 17th, from the Chairman of the Federal Reserve Bank of Atlanta, submitting a resolution of the Board of Directors of that Bank, protesting against the absorption by the Bank of expenses incurred through the operations of the Fiscal Agents Department. The Governor was requested to transmit the said resolution to the United States 7reasury Department, with advice that the Board indccrses the position taken by the Federal Reserve Bank of Atlanta. Upon motion the Board approved the bond of Mr. Joseph C. Nevin, Assistant Federal Reserve Agent at Cleveland, Ohio, in the mount of `.1 50,000. The Governor,submitting a list prepared by the Secretar y of the several committees of the Federal Reserve Board, called attention to Section 1, Article 4 of the By-Laws, as follows: "There shall be an'..Ixecutive Committee of the Board consisting Of three menbers, which shall include the Governor and Vice-Governor and one Other. The third member shall be nominated and elected at a regular meeting Of the 7oard. Members of the Board shall serve as far as practicable in rotation and for periods to be fixed by the Board from time to time. Two members shall constitute a quorum for the transaction of business." In view of the fact that IL-. Miller, the present third member of the .xecutive Committee, has been serving for six months, it was voted to elect Mr. Mitchell to that place. Telegram dated January 19th, from the Governor of the Federal Reserve Bank of San Francisco, tendering his resignation as a member of the Board's Committee on Internal Economy and Comparative Efficiency. Accepted, with the understanding that Mr. Mitchell and Mr. Miller are authorized to select a successor to Governor Calkins on the Auxiliary Committee. Letter dated January 20th, prepared by Governor Harding and addressed to Mr. Harrison, Deputy Governor of the Federal Reserve Bank of New York, regarding the latter's suggestion that a conference should be held of the Eligibility Committee of the Federal Reserve Banks with reference to the general policy of the inter-bank conferences. Approved; with slit amendment. Letter dated January 16th, from the Secretary of the Federal Reserve Bank of Chicago, making inquiry as to the authority which may rightly be assumed by Federal Reserve Bank x;xaminers in their examinations of member banks. Referred to the Comptroller of the Currency for advice as to the proper nature of the Board's reply. Letter dated January 18th, from the Federal Reserve Bank of Philadelphia, detailing certain arrangements Which have been made by that Bank with the First National Bank of Scranton, Pa., with a view to keeping in Scranton a supply of Federal Reserve notes for the use of miter banks in that City. Referred to the General Counsel. -5.. Letter dated January 17th, from the Chairman of the Committee on Banking and Currenoy of the House of Representatives, submitting House Bill No. 8399, with reference to Section XI of the Federal Reserve /let, and inquiring if it is necessary to have the provisions of that section extended to October 31, 1922. Upon motion, it was voted that legislation in this matter is not necessary. Upon motion, a recess was taken at one o'clock, the meeting to reconvene at 2:30 p.m. P ursuant to the terms of adjournment, the Board reassenibled at 2:50 p.m. PRESENT: Governor Harding Mr. Platt Mr. Hamlin Mr. Mitchell Mr. Hoxton, Secretary. Telegram dated January 20th, from the Federal Reserve Bank of Chicago, requesting authority to reduce from 4% to 33-,1 the rate for open :market purchases of bankers acceptances. Approved. After further brief discussion concerning the natter of the establishment of branches by the Bank of Italy, it was agreed that the letter Prepared by Mr. Mitchell and submitted at the meeting of January 18th, should be transmitted to the Chairman of the Federa l Reserve Bank of San Francisco, with the information that while the opinions expressed by Mr. Mitchell did not prevail so far as final action by the Board was concerned, that all Members of the Board nevertheless had been much impres sed by those opinions. 1 -8- Yemorandum dated January 12th, from the Secretary of the Board, recomrnsnding that the salary of the Chief Clerk, Mr. J. D. DeLaMater, be increased f,'300. ? per annum, from 4200 to 4500 per annum, effective January 1, 1922. Approved. Two letters dated January 18th, from the Chairman of the Federal Reserve Bank of Atlanta, requesting approval of the salaries of certain new employes and advising of certain transfers, resignations and dismissals. Approved, upon recommendation of the Committee on Salaries and Charge Offs. Letter dated January 18th, from the Chairman of the Federal Reserve Bank of Atlanta, submit ting a list of the Employes of that Bank and Branches (other than officers and Assistant Federal Reserve Agents) showing the salaries as of December 31, 1921, with proposed changes in galaxies of certain employes as of January 1, 1922; the changes in salaries proposed, McCord stated, having all been considered and recommended by the Managing Committee ard approved by the Salary Committee, subject to the approval of the Federal Reserve Board. Approved, upon recommendation of the Committee on Salaries and Charge Offs. Letter dated January 14th, from the Federal Reserve Agent at Atlanta advising that the Federal Reserve Board had disapproved, subject to further information,- increases of '1300. each in the salaries of three employes of the Federal Reserve Agent's Department, ani providing further detailed information regarding the said three employes. Upon motion, in view of the additional information furnished by Mr. McCord, the Bank was authorized to increase in the sum of ;7-300. per annum the salaries of Messrs. J. W. Ilonneur, Examiner, J. E. McGuire, Examiner, and D. E. Moncrief, Manager of the Reseamh and Statistical Division. Said action was talKon won recommendation of the Board's Committee on Salaries and Charge Offs. Letter dated January 14th, from the Chairman of the 7ederal Reserve Bank of Atlanta, givino; further and detailed information reT,rdinp.. certain persons for vhom increases in salary were recommended by that Bank under date of December 13, 1921. Upon recommendation of the Committee on Salaries ard Charge Offs, in view of additional infbrn•ation furnished by Mr. McCord, the Board voted, in addition to the increase for Marcus Walker, Manager of the New Orleans Branch vthich was previously approved, to approve the increases recommended for the following: Messrs. Campbell, Taylor, Roper, Black, J. A. Walker, McNanEra, Fort and McLarin. Letter dated January 14th, from the Chairman of the Federal Reserve Bank of Atlanta, setting forth the details of the procedure which will be followed by that Bank in future with regard to all changes • in Der'sonnel and salaries. Noted, with approval. Letter dated January 12th, from the Salary Committee of the Pcord of Directors of the Federal Reserve Bank of Kansas City, submitting recommendations of that Committee with reference to certain officers of the head office and the branches. • -8- The Board upon vote approved increases as recomended for A. M. McAdams,C. K. Boardman, R. 0. Wunderlich. For L. H. l'arhart; and. C. A. Burkhardt the Board authorized an increase of P,900. per annum each, in lieu of the ?.1500 per annum each recommended by the Federal Reserve Bank of Kansas City. Said action was taken in accordance with the recommendation of the, Committee on Salaries and Charge Offs. Letter dated January 18th, from the Chairman of the Board and Federal Reserve Agent at Philadelphia, making recommendations for adjustments in salaries of certain employes and ,officers of the Federal Reserve Agent's Department and the Auditing Department. Approved, with the exception that the proposed increase for Mr. Arthur E. Post, Assistant Federal Reserve Agent, from $8,000 to t"8,500 per annum was disapproved. Said action was taken in accordance with the recommendation of the Committee on Salaries and Charge Offs. Letter dated January 18th, from the Governor of the Federal Reserve, Bank of Philadelphia, submitting for the approval of the Board adjustments in salaries of certain department heads and employes. Approved, said action having been taken in accordance with the recommendation of the Committee on Salaries and Charge Offs. Letter dated January 12th, from the Chairman of the Federal Reserve Bank of Richmond, advising of certain adjustments in salaries of employes Of that Bank as of February 1, 1922, in accordance with the plan adopted by that Bank of adjusting salaries on anniversaries and semi-anniversaries of employment. The Secretary was instructed to advise Mr.Hardy, in view of the fact that all other Federal reserve banks have abandoned the plan of considering salary adjustments on anniversary dates, to strOmit to the Board a new recommendation which will cover all salary adjustments applicable to the year 1922. -9- Letter dated January 16th, from the Comptroller of the Currency, submitting changes in the National Bank Examining force which were made during the month of December, 1921. Approved. Letter dated January 17th, from the Comptroller of the Currenay, requesting approval of a salary of A8,500 per annum to be paid to Mr. Herbert W. Scott, Chief National Bank Examiner in the First Federal Reserve District. Approved. Letter dated January 19th, from the Conptroller of the Currency, requesting approval of certain salary increases for five Chief Examiners and for certain rational Bank Examiners in the various twelve Districts. Approved. Three letters dated January 17th, from the Comptroller of the Currency, requesting approval of increases in the salaries of rational Bank Examiners as follows: Yr. Norwin S. Bean, from $4,200 to A4,500; Mr. Edward F. Parker, from ?4,500 to A5,000; Mr. Harold VT. Black, from A4,200 to A4,500. Approved. REPORTS OF COMMITTEE NO. 1: Dated January 20th, Recommending changes in stock at Federal Reserve Banks, as set forth in the auxiliary minute book as of this date. Approved. Dated January 18th, Recommending approval of the application of Mr. Gebrge I. Cochran to serve at the same time as director of the Anglo-California Trust Co. of ban Francisco and the First National Bank of Los Angeles; or as director of the Anglo-California Trust Co. of San Francisco and the Citizens Trust & Savings Bank, Los Angeles, Calif. Approved. -lo- Dated January 10th, Recommending approval of the application of Mr. Warren Cruikshank to serve at the same time as director of the Irving National Bank of New York and as trustee of the Fulton Trust Co. of New York. Approved. Dated January 16th, Recommending approval of the application of Mr. B. S. Walker to serve at the same time as officer and director of the First National Bank of Breckenridge, Texas, and as director of the American Exchange National Bank of Dallas, Texas, and as director of the First National Bank of Ft.Worth, Texas. Approved. At 4:00 p.m. the meeting adjourned. Secretary. App ved:
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