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At a meeting of the Federal Reserve Board held in the office of the Board on Friday, January 23, 1920, at 12-3u p.m., PRESLITT: The Mr. Er. Mr. Mr. Mr. Governor Strauss Miller Hamlin Moehlenpah DeLaMater, Secretary of Meeting. Business was presented and disposed of as follows: Telegram dated January 23d from the Chairman, Federal Reserve Bank of San Francisco, advising that changes in discount rates would be considered by the Board of Directors of that Bank on Monday, January 26th. Noted. Telegram dated January 23d from the Governor, Federal Reserve Bank of Dallas, inquiring whether the question of discount rates for that Bank could be considered by the Board of Directors at its next regular meeting early in February, or whether it should be considered by the Executive Committee of five, on Thursday, January 29th. Thc 4overnor reported that Ur. Van Zandt had been Avised that the question might be considered bd the Executtve Committee on January 29th. .Telegram dated January 22d from the Governor, Federal Reserve Bank of Kansas City, requesting permission to adept for that Bank the same schedule of discount rates as approved for the Federal Reserve Bank of 14ew York,effective January 23d. .1" Approved. Trio Governor reported tne reserve positions or tile several Federal Reserve banks as at close of business January 21st, and tne status of rediscounts uetween Federal Reserve uanks as oi tile same date. Telegram dated January 23d from tne Federal Reserve Bank ox Richmond, requesting permission to adopt the same scneduie of discount rates as approved on January 22d for the Federal Reserve Bank of Vow xork, effective January 2Zd. Approved. Letter dated January 14tn from Mr..M. J. Dowling, Cnairman, Committee of Five, American bankers Association, su6testing Lust tne federal Reserve Board suUmit by friendly suit tne case of a national uank against a Federal Reserve une Federal courts for une purpose of clarifying bank in sucn portions of line Federal Reserve Act, as amended, in wnicn tnere is a decided disagreement between the majority of Uanks in trio United States and Lae Federal Reserve Board. Tfte Governor submitted draft of reply dated January 22d. Approved. Llemorandum dated January 23d from General Counsel witn reference to Senate Bill 3770, introduced by Senator Owen 40 amend tne Federal Reserve Act bubStantially as follows: -3"That no member bank of the Federal Reserve System shall charge a rate of interest in excess of six'percentum per annum on loans secured by stocks or bonds as collateral and made subject to call, or having a term of less than thirty days." The Governor also presented a letter from Senator McLean dated January 22d, requesting the views of the Governor and of the Federal Reserve Board as to the effect of this bill. (At this point Ur. Williams joined the meeting) Voted that the Governor prepare reply stating his personal views, to be submitted to the Board, the members of which could either adopt the Governor's views or if they preferred, might submit their own. The Governor presented draft of reply by him to letter of January 16th of President James B. Forgan of the Federal Advisory Council, with reference to recommendations made by the Council at its last meeting. Approved. Memorandum dated January 20th by General Counsel with reference to bill, H.R.11,918, introduced by Mr. McFadden, providing for amendment of Section 9 of the Federal Reserve Act, permitting State bank or trust company members of the Federal Reserve 4stem to be designated by the Secretary of the Treasury as depositaries of public monies, or employed as financial agents of the Government. Fmted. VIL q.it) -4Memorandum dated January 21st by Mr. Imlay, with letter of January 16th from the Federal Reserve Agent at Kansas City, advising of notice of intention to withdraw from the System by the l'ansas Reserve State Bank, Topeka, Kansas. Noted. Memorandum dated January 22d by Mr. Imlay, advising of notice of intention to withdraw from the System by the State Savings Bank, Caro, Michigan. Noted. REPORTS OF COMUITTLE NO. 1: Dated Jan. 22d, recommending changes in stock at Federal Reserve banks, as set forth in the auxiliary minute book as of this date. Approved. Dated Jan. 22d, recommending approval of applications for fiduciary powers, as set forth in the auxiliary minute book as of this date. 'Approved. Dated Jan. 23d, recommending temporary employment of thirty additional currency counters with salary at rate not to exceed 41,040 per annum, to be detailed to the National Bank Redemption Agency, office of the Treasurer. Approved. Letter dated January 22d from the Chairman, Federal Reserve Bank of New York, recommending the employment of Mr. Carl Snyder as Manager of the Department of Statistics and Information of that Bank, at a salary of 410,000 per annum. Upon invitation of the Board, Mr. Shepard (-)1 1,1) -5Lorgan of the Federal heserve Bank of New York joined the meeting, and gave information concerning the proposed duties of Er. 2nyder, after which he withdrew. Voted that the matter be tabled for consideration at a future meeting of the Board. Other business was presented and disposed of as follows: Telegram dated January 23d from the Secretary, Federal Reserve Bank of Chicago, requesting approval of the following discount rates effective January 24th: Notes maturing one to 90 days, including member bank collateral notes secured b U.z,.certificates of indebtedness.... 4-3/4:, Notes maturing one to 90 days, including member bank collateral notes secured by Liberty bonds or Victory notes Commercial paper and trade acceptances, maturities one to 90 days, including member bank collateral notes C);) Agricultural paper, all maturities 6;,; Notes secured by War Finance Corporation bonds 773 Approved. Telegram dated January 23d from the Chairman, Federal Reserve Bank of St. Louis, requesting approval of the followik; discount rates, effective January 24th: Notes maturing one to 0 days, including , -6- member bank collateral notes secured by U.O.certificates of indebtedness... 4-3/4r0 Bankers acceptances discounted for member banks Notes maturing one to VJ days, including member bank collateral notes, secured by Liberty bonds and Victory notes.... Commercial paper with maturity one to 90 days, including member bank collateral notes so secured Agricultural paper, all maturities .6% Notes secured by Viar Finance Corporation bends Minimum open market rate for purchases of bankers acceptances, net to be published 5-l/4 Approved. Telegram dated January 23d from the Federal Reserve Bank of Atlanta, requesting approval of the following discount rates, effective January 26th: Notes maturing one to 90 days, including member bank collateral notes secured by U.S. certificates of indebtedness.. 4-3/4;07 Bankers acceptances discounted for member banks Notes maturing one to 90 days, including member bank collateral notes secured by Liberty bonds and Victory notes... 5-1/4 Commercial paper with maturity one to 90 days, including member bank collateral notes so secured... -7Notes secured bonds ',Lir Finance Corporation Idinimum open market rate for purchase of bankers acceptances, not to be published, 5-i/4 Approved. At 1-40 P.M., the meeting adjourned. cret4r, u ' Lieetine. Approved: (//
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