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dt a regular meeting of the Federal Reserve Board held in the office of the lovernor on Thursday, July 1Z, at eleven a.m., FilEaLN Harding, presiding, uarbur,-;, r. Jelano, :r. Hamlin, Mr. illis, Secretary. Mr. The minutes of the meeting of the Board held on July 11 were read and, on motion, approved. letter from Crovernor ;old with reference to the method to be employed in computing reserves was read to the Board, discussed and, on motion, referred to Mr. Llliott as joint Jounsel of the Board and the ;omptroller of the Jurrency, with instructions to report his findings as to the status under the amended Aderal Aeserve Governor Harding presented the question of the moving of the Board's quarters, stating that he had had under advisement with the JwAptroller of the Jurrency and the Secretary of the Treasury the q.uestion of leasing space in the Metropolitan Bank Building. The matter was discus- sed and laid on the table until the meeting of the Board on Taesday, July 17, in order to give opportunity for adjustment of space assigned in the Treasury Building, if possible. -t letter from Federal Reserve 4'igent tails with reference to methods cif reporting cash and cash items held by member banks, and the Governor's reply to the same, were read and noted. Telegrams from the Pompeian Jompany with reference to the desired organization of a foreign department of the Federal Reserve Board, were presented and ordered filed. The Secretary of the Board presented a report of the audit of the Gold Settlement Fund and the Federal Reserve Agents' 'Fund as of the close of business June 7, .1917. The reports were noted _andordered paused to file. The Secretary of the Board presented discount rate sheets -for -the week, transmitted by various Federal Reserve Banks, none of them, however, recommendin3. any change in rate. letter from Governor Wold with reference to the policy of converting 3: bonds into Liberty Loan Bonds, was read and, on motion, referred to the Governor of the of the Board for informal discussion with the secretary of the Treasury. Governor Harding informed the Board of the substance of a conversation he had had with the Secretary of the Treasury relating, to the contents of the 3oard's general letter of July 11, stating its views with reference .e, to gold e.,ports and foreign e;..chanL; qe said that the Sec- retary of the Treasury had incidentally raised some question about the wisdom of stopping the issue of gold certificates in denominations of less than 53, and had also suggested that he might at an early date begin charging interest on Government deposits in Aderal reserve banks. Governor Harding presented a memorandum from Jhief Lxaminer Broderick stating that there Was severe pressure of work in connection with the Liberty Loan at various ?ederal reserve banks, and recommending that he be authorized to make a trip to the several banks, with the exception of San 2rancisco, starting at an early date. On motion the memorandum was approved and the proposed journey authorized. memorandum of chief laaminer Broderick commenting upon a letter received from Governor iken of Boston with reference to the effect of the proposed military draft upon ?ederal reserve banks, and recommending that temporary exemption be arged by the Board, was read and discussed. Governor Harding read to the Board a letter oatlining general views of the Board on this subject in accordance with the Jammittee report adopted on July 10. Discussion ensued, and the general position already taken against recommending any general exemptions from military service was, on The Committee on motion, reaffirmed. Law reported favorably to the acceptance of the opinion of Jounsel recently rendered with reference to the interpretation of the term "based on livestock," found in the paragraph of the law relating to maturities of commercial paper. On motion, the opinion was adopted in accordance with the recommendation of the Jommittee, and ordered referred to the Jommittee on Bulletin for publication in such form as deemed best by that Jo=ittee. 41, report of the ,lommittee on Staff favoring the granting of an increase in pay of 10:01 to the three charwomen employed by the Board through the Treasury Department, was presented and, on motion, approved, the increase being accordingly granted. On recommendation of the Committee on Investments the application of the Merchants-17echanics First National Bank of Baltimore, for permission to invest the sum of )100,000 in the stock of the American Foreign Banking Corporation, was, on motion, approved. National . The application of the Blackstone ..;anal Bank of Providence, R. I., for permission to accept drafts :ad bills of exchange in foreign trade to an amount not to , of its capital and surplus, was, on motion, exceed 100,4 upon recommendation of the ,31ommittee on Investments, approved. Mr. laller presented a telegram from Federal aeserve Agent Perrin with reference to the 3overnorship of the Federal Reserve Bank of an Francisco advising the Board that ac- tion on that subject would probably be deferred for some weeks. Er. Miller also presented a telegram from Federal Reserve Agent Perrin stating that the application of the Spokane n Eastern Bank for admission to the system had been transmitted, and also that the Federal Reserve Bank of San Francisco was ready to proceed with the organization of the Spokane Branch without waiting for the final determination of membership. On motion Li.. :aller was authorized to reply advising Mr. Perrin that he might proceed upon the lines indicated in his telegram. A memorandam from the office of Assistant Secretary of the Treasury ,)rosby making inquiry with reference to an application of Senator Fall for the approval of New 1.:exi,co bonds as the basis of loans at reserve banks, was, on motion, referred to the Jommittee on Law with power to act. Mr. Liner stated for the information of the Board that he had telegraphed direct to r. Dohrman of the Yell- era). Reserve Baal: of San _?rlincisco, suggesting that he incidentally visit Washington for consultation daring his visit to the ea.stern States. On motion at 12.40 p.m. the Board adjourned to meet on Tuesday, July 17, at eleven, a.m. 4122a0VED: Jhairman.
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