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At a regular meeting of the Federal
Reserve Board held in the office of the Governor of the Board at 12:00, noon, on Tuesday,
July 18,
PRESENT:
Mr. Hamlin, presiding

Mr. Williams

Mr. Delano

Mr. Harding

Mr. Allen, Secretary.
The minutes of the Board meeting on
July 13, and of the Executive Committee meeting on July 14, were read and approved.
Upon favorable recommendation of the
Federal Reserve Agent at San Francisco the
Board granted the application of the National
Bank of Commerce of Seattle, Washington, to
accept drafts and bills of exchange up to 100%
Of its capital and surplus of 01 750,000.
The Board approved a letter to the
Federal Reserve Agent at Cleveland stating
that it is not considered necessary to circu-







larize member banks in connection with the
Clayton Act and the Kern amendment.
Approval was given to a letter suggested. .by Mr. Dulany to be sent to all Federn1
reserve agents covering procedure in filing applications under the Fern amendment to the Clayton Act.
Mr. Delano reported a conference with
Governor Seay and a committee from the Federal
Reserve Bank of Richmond in which they had
stated their situation as to the acquiring of
quarters to be occupied by the Bank.

After

discussion the following resolution was, upon
motion of Mr. Harding, seconded by Mr. Williams
adopted:
RESOLVED, that it is the judgment
of the Federal Reserve Board that in acquiring a bank building or in the purchase of a site and construction of a
new building, the Federal Reserve Bank
of Richmond should not exceed, for site,
building, vaults, that is to say, a complete building ready for the occupancy
of the bank, an expenditure of 0400,000.

m

It was directed that a copy of this
resolution be sent to the Federal Reserve Bank
of Richmond.
The Secretary read a letter from the
Federal Reserve Agent at Boston, dated July 12,
stating that he had not been asked to report
upon the applications for charter of the Back
Bay National Bank or the Roxbury National Bank
and was authorized to call the attention of the
Agent to the general instructions upon this subject.
Opinions of Counsel suggested for use
in the Federal Reserve Bulletin

were referred

to the Committee on Law.
The by-laws of. the National City Bank,
covering foreign branches, submitted at the request of the Board were presented with a memorandum from Counsel suggesting that the bank be .
requested to furnish the Board with copies of
financial statements made by such branches. The




774




Secretary was directed to prepare a letter to
the bank making the request.
Favorable action was, upon the recommendation of the Committee on Issue and Redemption, taken upon the request of the Federal Reserve Agent at Kansas City for 0500,000 in Federal reserve notes of the

5 denomination and

0460,000 in Federal reserve notes of the 020 denomination.
Upon recommendation of Er. Delano the
following recommendations of the Board of Directors of the Federal Reserve Bank of New York,
transmitted in a letter dated July 15, 1916,
were approved by the Board:
That Mr. R. H. Treman giva a
1.
bond as Deputy Governor in the sum of
010,000.
2.
That during the absence of
Federal Reserve Agent Jay the compensation of Deputy Federal Reserve Agent
Peabody be fized at 025.00 per day or
any part thereof, plus his expenses for
such days as he may be at the bank in
the discharge of his duties as Deputy

773

Federal Reserve Agent, this to be in
addition to his fee as a director of
the bank.
Attention was called to the recommendation of the Committee on Audit and Examination
as to recommendations of the Comptroller of the
Currency for the approval by the Board of salaries of National bank examiners contained in its
report of July 7, 1916, and the, Secretary was
directed to send a copy of the report to the
Comptroller of the Currency.
Favorrble action was, upon recommendation of Mr. Harding, taken upon the application of the Federal Reserve Bank of Cleveland
to purchase, (1) g80,000 loan of the city of
Covington, Kentucky, maturing January, 1917,
bearing interest at 4%, and (2) 02,000 bonds
of the billage of Oberlin, due August 1, 1916,
at par and accrued interest.
Upon recommendation of Mr. Delano the
recommendations of the FederP1 Reserve Agent at







Dallas that the salary of his assistnnt, Mt. C.
O. Hall, be increased from 42,400 to 02,500 per
annum, and a salary of 01,200 per annum be authorized for his Secretary, Er. R. D. Thurston,
were approved.
Application for 240 shares of stock
in the Federal Reserve Bank of Dallas by the
City National Bank of Shreveport, Louisiana,
were approved by Mr. Harding as Chairman of the
Committee on Member and State Banks.
Applications for additional stock in
Federal reserve banks, duly recommended by Mr.
Harding as Chairman of the Committee on Member
and State Banks, were approved as follows:
DISTRICT No. 2.
First National Bank
First National Bank
First National Bank
National Bank of
First National Bank
First National Bank

Shares.
Utica, N• Y.
150
Amityville,N.Y.
3
Harrisville, N.Y. 2
Port Jervis, N.Y. 1
Lisle, N. Y.
Lisle, N. Y.
1

DISTRICT No. 5.
First National Bank

Brunson, S. C.

i.0044

District No. 5. (Continued)
Grayson County Nat'l

Shares.

Independence, Va. 6

DISTRICT No. 6.
Gadsden Nat'l Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
National Bank of
Commerce
First National Bank
Citizens National
First National Bank
First National Bank

Gadsden, Ala.
Gadsden, Ala.
Payette, Ala.
Athens, Ala.
Luverne, Ala.
Lakeland, Fla.

1
9
2
1
2
2

Pensacola, Fla.
Perry, Fla.
Athens, Tenn.
Russellville,
Tenn.
Fitzgerald, Ga.

6
1
1
2
3

DISTRICT No. 9.
First National Bank
Merchants Nat'l Bank
First National Bank
First National Bank
First National Bank
Oakes National Bank
First National Bank
Home National Bank
First National Bank
First National Bank
First National Bank

3
Aitkin, Minn.
3
Detroit, Minn.
15
Wells, Minn.
Cooperstown,
6
N. Dak.
Fessenden, N. Dak.6
1
Oakes, N. Dak.
Washburn, N. Dak. 3
Dell Rapids,
1
S. Dak.
Highmore, S. Dak.15
1
Hobson, Mont.
18
Londovi, Wis.

DISTRICT No. 11.




First National Bank

Tishomingo, Okla.15




District No. 11. (Continued)
First National Bank
City National Bank
City National Bank

Shares.

Stanton, Texas
Temple, Texas
Wichita Falls,
Texas

3
15
30

Applications for surrender of stock
in Federal reserve banks, duly recommended by
Mr. Harding as Chairman of the Committee on Member and State Banks, were approved as follows:
DISTRICT No. 11.
First National Bank
First National Bank

Shares.
Killeen, Texas
Rockport, Texas

36
15

Attention was called to an opinion of
Counsel as to salaries of bank examiners, said
opinion being given at the request of the Board
dated June 30, 1916 and this was authorized to
be circulated.
Reductions of capital were

upon the

recommendation of Mr. Harding, authorized as
follows:
Caddo National Bank, Caddo, Oklahoma,
010,000.
National Kittanning Bank, Kittanning,
Pennsylvania $100,000.

On motion of Mr. Delano the following resolution, relative to the collection of
checks under the clearing and collection plan
through the assistance of postmasters was without dissent adopted:
WHEREAS, it is necessary and desirable to facilitate the collection
of checks presented through member banks
but drawn on non-member banks, especially in cities and towns where there may
be no member banks to net as collection
agencies; now therefore be it
RESOLVED, that the Honorable Secretary of the Treasury, Chairman of this
Board, be officially requested to present to the Honorable Postmaster General
the desire that the Honorable Postmaster
General shall authorize postmasters to
receive checks from Federal Reserve Banks
drawn upon State banks non-members of the
Federal Reserve System; that they be requested to collect these checks in currency and remit the currency to the Federal Reserve Bank by registered mail; the
Federal Reserve Bank of the District to
pay all expenses for postage and registration fees upon funds thus remitted.
The question involved in the request
of Mr. Percy S. Straus, for permission to serve
j as a director of the Second National Bank of







New York and as a member of the firm of R. H.
Macy and Company, the latter firm conducting
a depositors account department, was

after

consideration, ordered referred to Yr. Cotton
for his consideration.
The question of a definition of improved farm lands, raised by the Governor of
the Federal Reserve Bank of Minneapolis and
submitted to Counsel, was referred back to
Counsel for further consideration.
Governor Hamlin presented an opinion of Counsel to the effect that the form
of authority given to a bank applyingto accept up to 100% of its capital and surplus
governed the question whether the authorization covered increases thereof.
Mr. Harding was authorized to arrange with the Federal Reserve Agent at Dallas for the performance of the agents duties
during his vacation.

3

Mr. Delano reported briefly the substance of reports received from Federal reserve
banks with the exception of Philadelphia ss to
the opening of the clearing plan and a

state-

ment to the press, prepared by him, was approved.
At 1:15 p. m. the Board adjourned
to meet on Thursday, July 20.

AP1JROVED:




Chairman.

A
.