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A meeting of the Federal Reserve Board was held in the Office of the Board on Tuesday, July 24th at 10:50 a.m. PRESENT: Governor Urissinger Mr. Hamlin Er. James Mr. Cunningham Mr. Hoxton, Secretary. Present also upon invitation Mr. Claiborne - of Ifaw Orleans Yr. Vaughan - of Virginia, representing the Committee of Five of the American Bankers' Association Et. Adams - of Atlanta, Ga. representing the Bankers' Protective Association. Messrs. Claiborne and Adams presented to the Board their views with respect to the recent amendment to Regulation "J", expressing their belief that the practical effect of subsection (a) would work hardship upon member banks of the Federal Reserve System, as well as upon non-member banks which refuse to remit at par. Yr. Claiborne stated that he believed in the efficacy of the Federal Reserve System and desired to make no conplaint against it except in the matter of the clearing and collection policy which he regarded as unwarranted either by the law or by the decision of the United States Supreme Court in the Atlanta and Richmond par clearance cases. After full discussion, Yessrs. ulaiborne, Adams and Vaughan were invited by the Board to prepare and submit a complete revision of Regulation "J" drawn with a view to insuring an administration of the Federal Reserve clearing and Collection System along lines which, in their judgment, will be fair to member banks and to non-member banks, and to the customers of such banks. 'Zhis, the gentlemen referred to, agreed to do and thereupon withdrew from the room. At 1:00 o'clock a recess was taken until 3:00 o'clock. -2At 3:00 otclock the Board reassembled in the Board Room, all Members being present who were present at the morning session, except Mr. DAwes. The minutes of the meetings of July 18th and 19th were read and approved. Mr. Cunningham called attention to the action of the board taken on July 18th, whereby the work upon the parphlet entitled "Agricultural Credits Under the Federal heserve Act" was ordered stopped, pending the publication Of the same matter in the Federal heserve 3ulletin and until the Board shall, after the matter has been published in the Bulletin, determine whether it desires further distribution in pamphlet form. Mr. Uunningham stated that the pamphlet had been ordered printed and distributed by the Board after the Unanimous approval of the Committee on Agricultural Credit Conditions and after checking by the Law Committee and he did not think that this action Should have been reversed during the absence of two of the /embers of the Committee on Agricultural credit Conditions. He, therefore, moved reconsideration of the action of July 18th above referred to. Er. Cunningham's motion being put by the chair was carried. Yr. James moved that the pamphlet be at once completed made as originally contemplated. distribution and Er. James motion being put by the chair was carried. Letter dated July 21st from the Federal Reserve Agent at Dallas, advising Of heavy demands for credit, present and prospective, upon the Federal Reserve Bank of Dallas by its member banks, and suggesting that the Reserve Bank may be l‘c)reed to consider raising its discount rate or rediscounting with other Federal Reserve banks. The Secretary was instructed to advise Lr. T.alley that the Board desires to know what creates the present demand for credit in that District and for what purposes the member banks are using the funds secured from the Federal Reserve Bank. -3- Telegram dated July 23rd from the Federal Reserve Agent at San Francisco nggesting that the Board's Regulation concerning discounts for Federal Intermediate Uredit Banks should specify the amount of paper Federal Reserve banks may accept bearing signature or endorsement of any one borrower. heferred to the Law Committee. The Governor stated that the next thing in order mould be consideration Of the problem of quarters in Aavana, cuba for the Agencies of the Federal xteserve Banks of Atlanta and Boston. After full discussion and examination of the correspondence on this subject, the following telegrams mere ordered despatched: "Harding - Boston • Board has carefully considered the matter of location of uuban agencies. It seems it mould be much better to have office established not on the ground floor and not in any building where there is or is to be another bank. You and the Federal Reserve Agent are directed to come before the Board Friday morning, July 27th, at ten-thirty o'clock, at which time representatives of Atlanta will be present for the Purpose of settling the location of the agencies. Yeantine the Board looks to you to take no action with regard to the present lease on which you have an option." "Wellborn - Atlanta Board has carefully considered the matter of location of Cuban agencies and desires a clearer understanding of the entire situation. 'therefore, you, Chairman Lcuord, Lr. icurary and Mr. Adelson are directed to come before the Board Friday lorning, July 27th, at ten-thirty o'clock, at which time representatives of Boston will be present for the purpose of settling the location of the agencies." Letter dated July 20th from the chairman of the Federal Reserve Bank of New York, transmitting cable advice of the opening of the Colombian Federal l'eserve Bank. Lemorandum dated July 21st from the Secretary of the ioard advising that the Federal Xeserve dank of Dallas had appropriated y2,000 for educational and welfare purposes for the last six months of 1923 and that such action requires the approval of the Federal heserve 3oard. Approved. Letter dated July 18th from the Under Secretary of the 2reasury with reference to the Federal heserve banks acting as viscal Agents for Intermediate Credit isanks and expressing Ir. (iilberts understanding that should the Federal ift)serve banks agree to perform this service, the.intermediate Credit Banks would hope that the Federal eserve banks would render this service without charge, except their necessary actual expenses. The becretay7 was instructed Gilbert's letter to the Federal with a request for his views as amount of the expenses referred to transmit a copy of Ir. Xeserve Agent at New York, to the nature and probable I r. uilbert's letter. to in , with Letter dated July 20th from the Ilider Secretary of the Treasury silver. reference to the removal of all restrictions against payment of Copies ordered transmitted to all Federal xeserve banks. Bank of Letter dated duly 20th from the uovernor of the Federal heserve paper by the Ilinneapolis, with reference to the discount of non-member bank l'irst rational A'ank of 0rookings, • .1)• In view of the representations made in uovernor ioung's letter, it was upon motion determined to leave the ratter to to uovernor Young's discretion, the discounting referred to be completed by I:arch 1, 1924. the vederal heserve dank of Letter dated July 21st from the chairman of earl ew York, requesting approval of a six weeks leave of absence for ir. Snyder for reasons stated. Approved. MIN Various correspondence from Federal Reserve banks making inquiries regarding the administration of Regulation "J". Referred to the Committee on Clearings with power. Letter dated July 23rd from the Federal Reserve Agent at Philadelphia requesting authority to expend a sum not in excess of 01800 for a Federal Reserve system ethibit to be set up at the next convention of the American Bankers' Association to be held at Atlantic City September 24th to 27th. Approved. Governor Urissinger voting "no". Memorandum dated July 24th from the Assistant Secretary of the Board requesting authority to transfer L. C. Conley, clerk in the Gold Settlement iiivision, salary 02100, to the Examining force at the same salary, the transfer to be effective September 1, 1923. Also requesting authority to promote as of September 1, Yr. n. B. Stone to the position vacated by Comley and to increase Lr. Stone's salary from 4?1,665 to sl,800. Also requesting authority to fill the vacancy thus created in the Board's clerical force by employing a new clerk at a salary not to exceed p1500 per annum. Approved. \' Letter dated July 19th from the Comptroller of the currency requesting sPProval of the following increases in salaries for national bank examiners assigned to the Tenth Federal deserve District: Archie S. Allsup from q2,700 to 03,300 F. Raymond Peterson from p'2,700 to 03,000 Approved. Letter dated July 20th from the Comptroller of the Currency, requesting SPProval of an increase in salary from 0,000 to 0,300 per annum for National Bank Examiner John W. Snapp. Approved. -6- With reference to the Conference this morning with Lessrs. Claiborne, Adams and Vaughan, Li.. uunningham stated his view that a stenographic record Should be made of all such conferences. .hereupon, upon motion, the secretary was instructed to attach to his office a competent stenographer and to use such stenographer for the purpose of keeping a stenographic record of all important conferences and for the purpose of taking dawn stenographically all motions made at Board Leetings. REPORTS OF 6011:ITTEE NO. 1 Dated duly 20th 21st 23rd 24th Recommending action on applications for changes in stock as set forth in the Auxiliary Linute Jook of this date. Approved. Dated July 18th 21st 23rd Recommending action on application for fiduciary powers as set forth in the Auxiliary Linute Book of this date. Approved. Dated July 20th Recommending approval of the application of Lr. John Zahn to serve at the same time as President of the Uarlstadt National Bank, carlstadt, L. J., and as director of the Peoples isank cx. Trust Company, Passaic, .1. J. Approved* Dated July 20th hecommending approval of the application of fr. Samuel L. Curwen to serve at the same time as director of the central Lational Bank, and as director of the Philadelphia Trust Company, and as director of the Fidelity .erust Company, all at Philadelphia, PR. Approved. Dated July 10th Recommending refusal , f the application of rr. John D. Spreckels to serve at, the same time as director of the Anglo & London laris Lational 3ank, San Francisco, ualif., as director of the Union Trust company, San Francisco, Calif., and as director of the First National 3ank, San Liego, Calif. The meeting adjou4ed at 5:10 p.m. App Secretary. Governor.
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