The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
43 A meeting of the Federal Reserve Board. was held in the Office of the Governor on Friday, July 23rd, 1926, at 10:30 PR:;SEHT Governor Crissinger Mr. Platt Mr. Hamlin James Mr. McIntosh Mr. Eddy, Secretary Dir. Noe11, Assistant Lecretary The minutes cif the meeting al the Federal Reserve Board held. on July 21st were read and approved. Memorandum from the Gcrverner dated July 22nd advisirg that he has promoted his stenographer, *Lir• Henry G. Giovanetti, to the position of private secretary, with salary at the rate of 2, 500 per annum, effective July 16th, to fill the vacancy created by the assignment of Mr. Carter to the Secretary's Office. Noted. Memorandum dated July 22nd from Mr. James advisirg that he has increased the salary of his private secretary, Mr. C. S• Bradley, from '2,950 to 3,000 per annum, effective July 1st. Noted. remorandum from the Secretary dated July 22nd stating that LTr. Hamlin has advised him that he is considering dispensing with the services of his present private secretary hr. J. i. oore, whose salary is 3,000 per annum, and appointing in his stead Lass Margaret A. Laming, at present stenccrapher in his office, with salary at the rate of :,)2,500 per annum, and has requested to be advised whether or not there is any partiaaler work in the Board's organization for which Mr. Moore is suited; the memorandum recommending that the Secretary be authorized to offer employment to :;Jr. Moore in the Chief 7/23/26 44 -2- 0l3 Z' Division for a period not to exceed one year, with salary at the rate Of ,2,500 per annum, to carry on the vork he has been performing for several Months under the supervision of the secretary's Office in making an index-digest Of the reports of the conferences of Governors and iederal ),eserve Agents held during the past ten years, and also to bring up to date the index-digest of the Federal _eserve Bulletin. On motion, it ;;as voted that the Secretary be authorized to offer Mr. Moore employment as outlined above. Letter dated July 22nd from the Secretary of the iederal eserve Bank Of ievi fork, advising that the Board of Directors on that day considered and made no change in the bank's existing schedule of rates of discount and purchase. f.oted. Draft of letter to the uhairmen of all rederal _-Zeserve banks transmitting a statement bringing out the trend of expenses chargeable to functions essential to the operation of the Federal ..-..eserve System, as distinguished from expenses absorbed as a matter of policy or of operations carried on as a matter of policy, Which statement is similar to that transmitted %;ith the Board's letter of Larch 11, 1925 kSt. 4450). Approved. Liemorandum from uounsel dated July 21st submitting for publication in the Allt;'ust issue of the federal eserve Bulletin the Joard's ruling (X-4628) with regard to the eligibility for rediscount of notes of a parent corporation to finance the purchase of automobiles to be used by its subsidiaries. Approved. Letter dated duly 20th fram the Board's Uhief Examiner advising that his examination of the paper in the portfolio of the federal deserve Bank of 45 7/23/26 Atlanta did not disclose any non-member bank paper either discounted. direct or through a member bank, and that none of the so-called "Witham" paper was found in the portfolio; the letter also stating that. among the members in the Atlanta District are three banks which were associated with the irWitham" system. Noted. Memorandum dated July 20th from Counsel with regard to the question raised in letter dated July 16th from the Federal Reserve Agent at Kansas City, as to the eligibility of Mr. Charles A. Burkhardt, Manager of the Denver Clearing House Association, to serve as Assistant Federal Reserve Agent at the Denver Branch of the Federal Reserve Bank of Kansas City, with a nominal salary, Lir. Burkhardt to continue his daties with the Clearing House Association while serving as Assistant Agent; Counsel stating that Mr. Burkhardt complies in all resilects with the requirements of the ruling of the Board that it is necessary to have at each Federal Reserve branch bank \there unissued Federal Reserve notes are held an assistant Federal Reserve Agent properly qualified and bonded, who is entirely independent of the Federal Reserve bank or branch bank. Upon motion, it was voted to advise the Federal Reserve Agent at Kansas City that the Board regards Mr. Burkhardt as eligible to serve as Assistant Federal Reserve Agent at Denver. Memorandum dated July 13th from Counsel, regarding the amendment to Regulation "A" of the Board's Regulations which was recommended at the last Governors' Conference to mako elij.ble for rediscount or purchase by Federal iieserve banks bankers' acceptances drawn by an elevator company and secured by a terminal \garehouse receipt of the elevator coma:any that draws the draft; Counse stating that in his opinion the Board may legally adopt and promulgate this amend 16 -4- 7/23/26 ment to its regu.lations. Ordered circulated. The Governor then called attention to a pamphlet descriptive of the Federal Reserve System prepared by the Federal Reserve Bank of Boston for distribution, a copy of vihich pamphlet had been furnished each member of the Board.. The Governor stated. that he had. read. the text of the pamphlet and, noted certain inaccuracies and omissions which he had discussed with Dr. Goldenweiser. The uovemor suggested. that Dr. Goldenweiser be invited. into the meeting to discuss these inaccuracies and omissions with the Board. Thereupon, Dr. Goldenweiser entered the meting and advised the Board that certain of the statements contained in the text of the pamphlet were inconsistent with articles published by the rederal Reserve Board and that lk the text descriptive of certain functions o the Federal Reserve Syst= Was inadequate and. miialt be misconstrued. Thereupon ensued a general discussion of the pamphlet, following which Mr. James moved. that Mr. Curtiss be requested to advise the Board. why the pamphlet was distributed in violation of the Board's letter of October 31, 1924, (X-4181). .11r. Hanlin moved as a substitute, that the Federal Reserve Agent at Boston be advised (l) that the text of the pamphlet should he been submitted. to the Federal Reserve Board. for its approval before any distribution was made, in accordance with the Board's ruling as contained in its letter dated October 31, 1924 (X-4181); (2) that the Federal Reserve Agent be advised. of the suggestions and. criticisms discussed. by Dr. Goldenweiser; (3) that the Board does not approve of the text of the pamphlet in its present form; and. t4) that if the bank desires to do so, it may revise the text of the pamphlet along the lines of the suggestions made by Dr. Goldenweiser and submit the revised. text to the Board for its approval. - 47 -.5_ 7/2'0/26 1,1r. Hamlint s substitute motion, beput by the Chair, -v.ras carried, 1.1r. James voting "no". Letter dated Jul:: 20th fro.q. the Federal Reserve Agent at Boston advising that because of a severe illness he had last winter his Doctor has recolierded that he take a sea trip, and that he proposes to sail for the nediterranean on August 11th, returning Cctober 1st; the letter stntins7 that it has been arranged so that his absence -rill not interfere with the vacations of any of his associates and that the Directors of the ban!: have "urged that he take this rest. r.T.TeIntesh moved that 11r. Curtiss be advised that in view of his illness and apparent a rest that the lloard will approve of need for him being absent frai the bank from August 11th to October 1st. Carr The Governor then stated that the ratter cf an appropriate fee for Ii.r. Iievrt,on D. Raker in connection with his services in representing the Federal Reserve systen in the case of the iiiscagoula. :Jational Dank v. the Federal Reser-ve Prtn: of -tlanta et al. should be discussed and determined by the Poard. On motion by •r. James, the natter of the amount of the fee which should be paid .;T.r. Baker was referred to the Governor with power. The Gervernor then submitted letter dated July 21st from the Board's Chief Examirier, enclosing for the information of the Board copies of letters exchanged between Undersecretary of the Treasury 1,7inston and the Governor of the _Federal ,leserve Bank of 41-tlanta, dated July 17th and 20th, respectively, vrith regard to the present banking situation in Georgia are. Florida. The letters were read to the Board by the ..c.-;ecretary. 48 7/23/26 OM(3.11. The Secretary then referred to the action of the Board at the meeting on July 21st in setting Prida.y, July 23rd, as the date on ithich Professor Sprague should appear before it to discuss the report of the Special CorTaittee aPPointed by the Board to consider the advisability of setting up in the Federal Reserve Board a Division of Credit Information, and stated that he had learned that Professor Sprague vra vacationing in Line and that he was unable to get in touch with him. _REPORTs OF STANDING COIIIITnES: Dated, July 16th, Dated, July 16th, Dated, July 20th, Dated, July 21st, RecofIlending action on an application for fiduciary powers as set forth in the auxiliary minute book of this date. Appr oved. I act ion on an application for fiduciary powers Rec a vie ndin S as set forth in the auxiliary minute book of this date. Held. Recommending action eri applications for fiduciary powers as set forth in the mixiicr y minute book of this date. Refused. Recommending approval of the ap )lication of ,Jr. Nathan C. Lenfestey to serve at the same time as Director of the First National Bank, Sunlit, N.J., and as Cashier of the National City Bank_ of New York, N.Y. Approved. The meeting adjourned at 12:30 p Approved:
@FedFRASER