The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
At a meeting of the Federal Reserve Board held in the office of the Board on Friday, January 30, 1920, at 11 A.M., PRESENT: The Mr. Mr. Mr. Mr. Mr. Mr. Governor Strauss Miller Hamlin Moehlenpah Williams Chapman, Secretary. Minutes of the meeting of the Board held on January 29th were read and on motion approved. (At this point Mr. Williams joined the meeting.) Business was presented and disposed of as follows: The Governor read a memorandum commenting upon the report of condition of the Guaranty Trust Company of New York as at the close of business December 31, 1919. Referred to the Governor for report, after consultation with the Federal Reserve Bank of New York. Letter dated January 26th from the Chairman of the Federal Reserve Bank of Dallas, enclosing a letter addressed to him under date of January 24th by the American Exchange National Bank, Dallas, Texas, in re the condition that the examining committee be more active, imposed upon the exercise of fiduciary powers by that bank. Voted that the letter of the American Exchange National Bank be considered as an acceptance by it of the condition imposed upon the exercise of fidu, ciary powers. -2Letter dated January 29th from Consulting Architect Trowbridge, recommending acceptance of the bid of the New York Safe and Lock Company to install a vault in the proposed new bank building of the Federal Reserve Bank of Philadelphia at a cost not to exceed $598,158. Approved. The Vice Governor submitted for ratification a letter addressed by him under date of January 29th to the Acting Director of the Division of Foreign Exchange, authorizing the Federal Reserve Bank of New York to purchase in the open market bills drawn, accepted and indorsed by the Park Union Foreign Banking Corporation, the Asia Banking Corporation, and the International Banking Corporation in connection with the stabilization of rates of exchange between the United States and China. Voted to ratify the action of the Vice Governor in addressing his letter to Mr. Crane in the form submitted, and to authorize the extension of the limit of the drawing of such bills to the sum of $20,000,000 during the month of February 1920. Letter dated January 28th, from the Chairman of the Federal Reserve Bank of Atlanta, making a re7)ort as to why the Clearing House Association of Atlanta, Georgia, had so far failed to make effective the proposed plan for differentiation in exchange charges in favor of items of -3banks on the par list and against items of banks not on the par list. On motion duly seconded it was voted that the Governor be authorized to address a letter to the Chairmen of all Federal Reserve Banks, requesting them to obtain from the leading clearing house associations of their districts expressions as to what extent the Board might count upon their cooperation in securing nation-wide par collection, b7 such clearing house associations' differentiating tn exchange charges against items of banks not on the par list. Telegram dated Janury 30th from the Chairman of the Federal Reserve Bank of Dallas, requesting approval of the following schedule of discount rates, effective February 3d: "Notes with maturity 1-90 days, including member bank collateral notes secured by certificates of indebtedness, 4-1%; "Notes with maturity 1-90 days, including member bank collateral notes secured by Liberty bonds or Victory notes, 5e 0; "Corranercial paper with maturity 1-90 days, including member bank collateral notes so secured, 6%; "Agricultural paper 1-90 days, including member bank notes so secured, 6%; "Agricultural paper 91 days to 6 months, 5e0; "Trade acceptances 1-90 days, 5, 1%; "Notes secured by War Finance Corporation bonds, 7% "Minimum rate on bankers acceptances, not published, W." Voted to approve the schedule as submitted, except that the rates proposed on agricultural paper 91 days to 6 months, trade acceptances 190 days, and rediscounts of bankers acceptances be disapproved, and that the Board establish for the Federal Reserve Bank of Dallas the following discount rates on those classes of paper: -4Agricultural paper, 91 days to 6 months, Trade acceptances, 1-90 days, 6%; Rediscounts of bankers acceptances, 5%. Letter dated January 30th from Consulting Counsel rlliott, submitting his resignation as such, effective February 1, 1920. Voted to accept the resignation. On motion duly seconded the question of employing additional counsel to assist in the preparation of regulations governing the operations of corporations to be organized under the provisions of the vdge Act was referred for report to a committee consisting of the Governor, the Vice Governor, and the Chairman of the Law Committee. Report dated January 26th, recommending that action on the applicntion of the Lincoln Trust Company, New York City, for authority to accept drafts and bills of exchange up to 100% of its capital and surplus, be deferred until capital is increase4 and more time is afforded to determine the policy and development of the bank. Approved. Letter dated January 29th from the National City Bank of New York, advising of the opening on January 15th of a branch of that bank in Cape Town, South Africa. Noted. REPORTS OF COMMITTEF, NO. I: Dated January 30th, recommending admission of State banking o -5institutions as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the Individual reports attadhed to each application. Approved. Dated January 30th, recommending action on applications for fiduciary powers as stated in the auxiliary minute book as of this date. Approved. Dated Jan=ry 30th, recommending changes in stock at :Federal Reserve Brnks as set forth in the auxiliary minute book as of this date. Approved. At 1:05 P.M. the meeting adjourned. Secretary. Approved: 1%
@FedFRASER