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A conference between the Federal Reserve Board and representatives of the Richmond Bank was held at 9:00 a.m. today, (July 13, 1923). PRESENT: Governor Crissinger Mr. Hamlin Er. Miller Er. James Er. Cunningham Er. Dawes Er. hoxton, Secretary. PRESENT ALSO: Ir. Herson Yr. 4att Lr. McIntosh (Deputy Comptroller of currency) The Federal Reserve Bank of Richmond being represented by Er. hardy (Federal Reserve Agent) Er. Peple (Deputy Governor) Present also by invitation Mr. Ii. P. Turnbull (Vice President of the Hanover National Bank, Lew York City) The matter of the situation at Columbia, South uarolina, was discussed and the Federal Reserve Bank of Richmond expressed a willingness to cooperate in every possible way with the comptroller of the eurrency in its efforts to save the banks concerned from insolvency; it being brought out that the failure of the three banks concerned would probably result in the failure of a large number of small correspondent banks in south uarolina. it was agreed that the Federal Reserve Bank of Richmond should send representatives at once to Columbia, South oarolina, in order to ascertain how Illuch paper eligible for discount at the Federal Reserve Bank is held in Portfolios by the three banks concerned. Lx. hardy and tr. Peple expressed the intention to discount for the banks such of the eligible paper held by them as could possibly be accepted. in the meantime the Board advised Lessrs. to allow l'ePle and Hardy that it mould be entirely within the law for them 7/13/23 -2_ overdrafts secured by good security although the security might itself be ineligible for discount, the thought being that the plan of allowing secured overdrafts mould tide the member banks over for the period intervening before the amount of eligible paper in their portfolios can be determined. Et. Turnbull from the Hanover National Bank expressed the willingfles of that Bank to carry, during the crisis, for the Uolumbia, South Carolina Banks, the indebtedness already due by them to the Hanover National Bank, but expressed unwillingness to extend further credit. The Conference adjourned at 12:00 o'clock. Secretary.
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