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A meting of the Federal Reserve Board was held in the
Office of the Board on Friday January 28th, at 11:15 a.m.
PRIBENT: Governor Harding
Mr. Platt
Mr. Miller
Mr. Wills
Mr. Williams
Mr. Hoxton, Secretary.
PlIaliSETZT ALSO:
Mr. Logan.
Minutes of the meetings of the Board held. Jantrzy 25th
and 26th were read and, on motion, approved, as amended.
Minutes of the meeting of the Board held. January 27th
Were read and, on motion, approved.
(At this point Yr. Williams withdrew from the meeting.)
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The Governor reported the reserve positions of the several Federal Reserve banks as at close of butiness January 2.5th
and 26th, and the status of rediscounts between the Federal Reserve banks as of the same dates.
Governor Harding fresented a rarnormdwn from the General
Couns el, recommending that the usual preliminary certificate of
organization be nag issued to the Foreign Trade Financing Corporation, as requested by the representative of that Corporation.
Approved.
Memorandum from the Assistant Counsel, dated January 22d,
With reference to a letter of January 14th from the Chairman of
the Federal Reserve Bank of San Francisco, advising the Board that
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Hr. Herbert Fleishhacker would. shortly visit Washington, and present to the Board the matter of his application to serve as director of the tnglo f• London-Paris Yational Bank an1 the Union Trust
Company, both of San Francisco, California.
The Secretary was directed to advise Hr.Perrin
tiv.,t the Board would withhold action awaitinP; the
appearance before it of Y.r. Fie is hhack er
Letter dated January 10th, from the Chairman of the Federal Reserve Bank of Dallas, transmitting action of the Board of
Directors of that Bank at a meeting held January 7th, =Icing recommendations as to certain adjustments in personnel and salaries.
Approved,
7i1 is.
on recommendation of 1.11r. Platt and
Letter dated January 21st, from the Deputy qovernor of
the Federal Reserve Bank of Cleveland., enclosing list of proposed
adjustments in salaries for Erni lo yes at that Bank.
App./Dyed, upon recommondat ion of Hr. Hiatt and
Hr. Wills.
Letter dated January 21st, from the Assistant Federal :Reserve Agent at Cleveland, recommendinF;• that the Board approve the
application of the Union Savings Bank ez Trust Company, Cincinnatti,
Ohio, to establish an additional branch in Cincinnatti.
Approved.
-REPORTS OF C,017,7IT TEE HO. 1:
Dated January 26th, Recommending changes in stock at 7edera1
Reserve Banks, as set forth in the auxiliary minute book as of this date.
Approved.
a
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Dated January 26th, Recommending approval of applications for
fiduciary powers, as set forth in the auxiliary minute book as of this date.
Approved.
Dated January 25th, Recommending admission of State institutions
26th, as set forth in the amriliary minute book as
of this date, subject to the conditions stated in the individual reports attached to each
application.
Approved.
Dated January 28th, Recommending that authority be given to
certain National Banks to purchase stock
in corporations organized under the socalled Edge Act, as set forth in the auxiliary minute book as of this date.
Approved.
Dated January 26th, Recommending approval of the application of
Mr. E. R. Williams to serve at the same time
as director of the Old Commercial National
Bank, Oshkosh, Wis., and the First National
Bank, Manawa, Wis.
Approved.
Dated January 25th, Recommending refusal of the application of
Mr. W. B. Nutter to serve at the same time
as director of the First National Bank of
Stockton, California, and the Stockton Savings & Loan Bank, Stockton, Calif.
Approved.
Dated January 26th, Recommending approval of the application of
Mr. Richard T. Forbes to serve at the same
time as director of the Fort Dearborn National Bank, Chicago, the First National Bank,
St.Joseph, Mo., and the First Trust Company
of St.Ooseph, Mo.
Approved.
Dated January 26th, Recommending approval of the application of
Mr. Thomas A. Marlow to serve at the same time
as director of the National Bank of Montana
Helena, Mont., the Merchants National Bank,
St.Paul, Minn., and the Helena Branch of the
Federal Reserve Bank of Minneapolis.
Approved.
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Dated. January 26th, RecorrmEnding approval of the aplolicE.tion
of :Ir. D. R. Francis, jr. to serve at
the same time as director of Franc is
Brothers and Company, St. Louis, Mo.,
and the Merchants Laclede :Tational Bank,
St.Louis.
App ro yed
Letter dated January 25th, from the Director of the
Division of Analysis & Research, presenting the resignation
of -.Ass Jice Ross from the staff of that Division, effective
February 1. 1921, and in lieu thereof reconnendinc; the appointment of Miss irace Lrrons, effective February 8, 1021, at
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salary of '15.00 per annum.
Appro ved.
Letter dated January 26th, from the Director of the
Div is ion of Analysis (", Research, advising that Mr. M. B. Adams
has been discontinued as a mer of the staff of that Division,
effective from and after January 15, 1921, the special work for
Which he was engaged. having been completed.
:Toted.
At this point, upon invitation of the Board, (lovernor
Strong, of the Federal P.esurve Bank of Mew York, and Messrs. Alexander and Saunders, members of the Board of Directors of that bank
entered the room.
T7r. Williams also rejoined the meeting.
Governor Strong stated that the Committee from tIle Federal Reserve Bank of Nev York had come before the Federal :Reserve
Board to urP;e the approval of' certain recomendations nr.de by the
Federal Reserve Bank of -Jew York relative to an increase in salaries for several officers of that bank, and which had been Previously disallowed by the Federal Reserve Board.
After discussion,
a recess was taken at 1:30 p.m., with the understanding that
the
meetur would reconvene at 3:00 p.m.
At 3:40 p.m. the n-1-3et1n-: reconvened.
PRESENT: Governor Harding
Mr. Platt
Mr. Miller
Mr. Wills
. Williams
Mr. Hoxton, Secretary.
PIRMENT ALSO:
Governor Strong.
Letter dated January 27th, from the Governor of the FedOral Reserve Bank of Richmond, stating that subject to the review
and, determination of the Federal :Reserve Board, the
Directors of
the Federal Reserve Bark of Richmond. had established
a flat rate
Of 6% Ilion all paper secured by United States Treasury Certificates
or Indebtedness, regardless of the rates borne b.,- the
certificates.
Apiroved. 1:r. Williams desired to be recorded
as voting in the negative.
Telegram dat ed January 27th, from the Governor of t he FedOral Resucve Bank of Chicago, request in
authority to purchase a
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lot in Detroit for the use of the Detroit Branch at the cost
Of 1850,000 or A'65.60 per square foot.
Referred to the Governor, it being the sense
of the Board that the authority should not be granted
on account of the excessive cost.
At this point Lir. Williams withdrew from the meeting.
Telegram dated January 28th from tIE Governor of the Federal Reserve Bank of Chicago, advising that the Executive Corrnittee of that Bank had, subject to the review and determination of
the Federal Reserve Board, established a flat rate of 6% upon all
Paper secured by United States Treasury Certificates of Indebtednest regardless of the rate borne by the certificates.
Approved.
Governor Harding requested Governor Strong to advise the
Board if the gold earmarked for the Federal Reserve Bank of New
York by the Bank of France was actually segregated, and if there
Was any reason why the Board diould continue to allow such earMarked gold. to be counted as a part of the' reserves of the Federal Reserve System.
Governor Strong replied that the ,
;old was se-
gretted and held. in separate vaults, but that he did not think
it proper to continue the practice of counting such gold as a part
of the reserves of the Federal Reserve System.
Upon motion, it was resolved. to notify all Federal Reserve banks that beginning next Saturday, February 5th, they should cease to regard earmarked gold
in foreign countries as a part of their reserves.
Mr. Miller stated it to be his urgent belief that the
gold in the Bank of France should not only be not counted
as reserve, but should be withdrawn and brought back to this country.
Governor Strong stated that he was informed that the
Treasury Department contemplated the adoption of new designs for
all paper currency, that the proposed designs had
been examined
by those in his bank familiar with the handl
ing of currency, and
that he had been furnished with a report on the subject to the,
effect that the proposed new forms aremost undesirable." In
this
connection, Governor Strong narrated an incident concerning the
expert forging of a Federal Reserve note which had came to his
Attention in England.
At 5 p.m. the meeting adjourned.
Secretary.
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