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A meeting of the Federal Reserve Board was held in the (3ffice of OE, Board on Tuesday, July 26, 1921, at 11:10 a.m. PRESENT: Governor Harding Mr. Hamlin Mr. Mitchell Mr. Crissinger Mr. Hoxton, Secretary. Minutes of t1B meting of the Board held July 21st were l'ead. and on motion approved. The Governor reported the reserve positions of the several Pederal reserve banks as at close of business July 20th, 22d and 23d, and the status of rediscounts between the Federal reserve banks as of the same dates. The Governor reported rediscount transactions, member bank Promissory notes secured by Government obligations, rate 6%, as follows: Dat e Bank rediscounting Richmond Dallas Minneapolis Atlanta With .Amou.nt Maturities New York Cleveland New York Cleveland $5,000,000 2,500,000 1,000,000 2,007,000 J .,1137 23d ‘JulY 25th Jul-17 25th Minneapolis Ridhmond Atlanta New York New York Boston 1,500,000 5,000,000 1,000,000 ' 1121Y 25t1 Minneapolis New York 2,000,000 Dallas Cleveland 2,500,000 11-15 days do do 12-34 It (Cormerdial) 11-15 days do 1-90 days (Commercial) 1-90 days (Commercial) 11-15 days July July ' 1111Sr JulY 21st 21st 22d 23d. `TialY 25th -2- Letter dated. July 15th, from the Chairman of the Federal Ileserve Bank of Karsas City, enclosing resolution adopted. by that 8allic ill regard. to its policy in the matter of lcnding money on growCrops and settled. oil production. Governor Harding stated that he had advised the Federal Reserve Bank of Kansas City that it must /lot discriminate aip,inst any eligible paper as a class, but must treat each application upon its MO rit s. The Board concurred in Governor Harding's reply to the Federal Reserve Bank of Kansas City. Letter dated July 22d, from the Railway Loan Advisory Committee Of the Federal Reserve Board, recomending approval of the form of eb ligation submitted by the Seaboard Air Line Railway Company to take over a loan amounting to f.t;1,451,500, in five parts, the carrier electing at this time to take over the third part of the loan in the amount of 3 500, under the provisions of Section 210 of the Transportation Act, 19201 as amended. Appro ved Letter dated July 20th, from Mr. John Skelton 171111sms, adclressed to the Secretary of the Board, stating that he had mislaid. a of a report of the".iecutive Committee of the Federal Reserve lic)a-rd. transmitted to him on March 2d by Governor Harding. Upon motion, the Secretary was instructed to transmit to Mr. Williams, as requested by him, another Copy of the report in lieu of the copy which Mr.Williams stated that he has mislaid. Letter dated July 25th, from Lir. Hamlin to Governor Harding, ex-Pl'essing an opinion upon House of Representatives Bill -1.,L7868, in tboduced by Tir. Vo'stead on July 20, 1921, providing for the supervision by the Federal Reserve Agents and Committees of all issues of investment securities. The members of tie Board present were all opposed to the proposed legislation. Letter dated July 23d, from the Governor of the Federal Reserv° Bank of St.Louis, replying to a letter addressed by Governor Haraing to Jr. Martin on July 12th, explaining the circumstances under Nthich the Federal Reserve Bank of St.Lcruis employed Dr. Luten as medi' Cal examiner and physician of that Bank. In view of the explanation nrade by Governor Biggs, the Board approved the employment of the physician upon the terms stated in the correspondence referred to. Telegram dated July 25th, from the Chairman of the Federal Reselilre Bank of Dallas, proposing an increase of two merrbers in the membership of the Board of Directors of the Houston Branch, and nom- 1 lle; 1 " Certain persons to fill the proposed places. No action. It vas tie sense of the meeting that the number of the directors of the Houston Branch should not be increased at this time. Letter dated July 23d, from the Chairman of the Federal Re- 8""ve Bark of Km.sas City, advising that the Board. of Directors of that Bank had, subject to the review and determination of the Federal 11"erve Board, suspended the applic at ion of t he pr ogress ive rate, -4- effective August 1, 1921. Appioved. After discussion regarding ti-i) rates in force at the Federal Reserve Bank of Chicago, Mr. Crissinger moved that the Board in reviewing the Chicago rates fix a rate at that Bank for all paper of all maturities at 6%. No action, it being agreed to defer this matter until tomorrow, and Mr. Mitchell was requested to advise the Federal Reserve Bank of Chicago that the Board will announcement of rate action in the 7th postpone any Federal Reserve District until after a - meeting of the Board of Directors of the Federal Reserve Bank of Chicago next Friday. Governor Harding informed the Board that the Chairman of the Federal Reserve Bank of Cleveland had advised him that that Bank does not wish to reduce rates at this time and will not do so, unless reVired by the Federal Reserve Board. Letter dated July 25th, from the American Foreign Banking CorPcration of New York, requesting authority, as a technical matter, to establish a sub-branch of that Corporation on Bolivar Street, in the citY Of Colon, Republic of Panama, it being explained that while the C°11)craticr has an office across the street in the Canal Zone, the laws of Panama make it necessary for the Corporation to have a branch actually located in the Republic of Panama. Approved. Memoxandum dated. July 22, Prom the Division of Examination, -5.- transmitting the application for membership in the Federal Reserve System of the Algiers Trust and Savings Bank. of New Orleans, La. and recommending also an application from the same institution for authority to observe the reserve requirements of a bank located outside of a central reserve or a reserve city. In view of the fact that the latter application by statute requires a vote of at least five members of the Board, the matter was ordered redocketed, with the recommendation of the four members of the Board now present that the applications be granted. Letter dated July 22d, from Yr. William A. Dodd, Technical Clerk in the Division of Circulation, tendering his resignation, to take effect the 23d day of August, 1921. Approved. OF coma= NO. 1: Dated July 26th, Recommending changes in stock at Federal Reserve Banks, as set forth in the auxiliary minute book as of this date. Approved. Dated July 22d, Recommending action on applications for fiduciary powers, as set forth in the auxiliary minute book as of this date. Approved. Dated July 22d, Recomrrending approval of applications for admission of state institutions, subject to the condit ions contained in the individual reports attached to the applications. as set forth in the auxiliary minute book as of this date. Approved. At one o'clock the meeting adjourned. Secretary.
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