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648 At a meeting of the Federal Reserve Board held in the office of the Board on Tuesday, July 27, 1920, at 11 A.M., UESENT: The Yr. Mr. Mr. Mr. Governor Platt Moehlenpah Williams Chapman, Secretary. PRESENT ALSO: Mr. Angell, Assistant Counsel. Minutes of meeting of the Board held July 22d were read, and on notion approved. Business was presented and disposed of as follows: The Governor reported the reserve positions of the several Federal Reserve Banks as at close of business July 24th, and the status of rediscounts between Federal Reserve Banks as of the same date. The Governor reported rediscount transadtions, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations: rates same as those borne by certificates, with minimum of 5-1/4% and qr, on paper secured by Liberty bonds and Victory notes, as fc;llows: Date July 22d ” July 23d July 26th July 25th Bank Rediscountint; With New York Dallas New York Dallas Cleveland Richmond New York Dallas Boston Dallas Kansas City Boston Noted. Amount 001,000 3,000,000 5,000,000 1,000,010 5,000,000 2,000,000 Maturities 11-15 days If ft 8-15 days The Governor renorted rediscount. transactions, pursuant to authority heretofore vested inhim; member bank promissory notes secured by Government obligations: rates on paper secured by certificates of indebtedness, and 4 on paper secured by Liberty bonds and Victory notes, as follows: Bank Rediscountinf7 Date Minneapolis St. Louis July 24th Minneapolis July 23d With Cleveland Boston New York Amount Maturities 31,500,000 11-15 days 5,000,0007ithin 15 days 2,500,000 . 11-15 days Noted. The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank Tr promissory notes secured by Government obligations: rate on commercial paper, as follows: Bank Bediscounting Date July 22d July 23d Atlanta Atlanta 7;ith New York New York Amount Maturities ,1,185,000 Within 12 days 8-90 days 1,562,700 Noted'. The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations: rates same as those borne by certificates, with minimum of 5-1/2;% -3as follows: Date Bank: Rediscountin July 24th Atlanta July 22d 'Atlanta Amount With New York New York :',i1,662,500 2,327,000 Maturities 11-15 days 8-15 days IToted. Application of the Maryland Trust Company, Baltimore, Md., for authority to accept drafts and bills of exchange up to loo, of its capital and surplus, under the provisions of Section 13 of the Federal Reserve Act. Approved. Memorandum dated July 24th by Assistant,7ecretary, recommending approval of application of the Lincoln Trust Company of New York for permission to. accept drafts drawn upon that Company by banks and bankers in Argentina, Peru and Chile for the purpose of creating dollar exchange. Approved. Letter dated July 20th from the Director, Division of Analysis and Research, recommending that 25 copies of edition No. 2 of the Federal Reserve Bulletin be forwarded each month to the Agent's Department of each Federal Reserve Bank for distribution to firms cooperating in furnishing information on business conditions. Approved. 651 -4Letter dated July 23d from the Railway Loan Advisory Committee to the Board, recommending that the Board approve a loan of235,400 to the Salt Lake & Utah Railroad Company, under the provisions of Section 210 of the Transportation Act of 1920. Approved. Letter dated July 22d from Mr. Arthur Mayer of New York City, requesting reservation of the title "American Overseas Trust" for a corporation intended to be organized under Section 25 (a) of the Federal Reserve Act. Voted to approve such reservation until October 1, 1920. The Governor presented to the meeting, orders executed by The President under date of July 23, 1920, redesignating him as Governor of the Federal Reserve Board for the period August 12, 1920, to August 10, 1922, and designating Mr. Edmund Platt as Vice-Governor of the Board for the period July 23, 1920, to August 10, 1922, pursuant to Section 10 of the Federal Reserve Act. Noted. Letter dated July 26th from Mr. Albert Strauss, inquiring if there would be any impropriety in his serving as an officer or director of the Lercantile Bank of the Americas, which is not a member bank, in view of the fact that he did not complete his -5term of office as a Member of the Federal Reserve Board. Voted that the Board sees no objection to such service by Mr. Strauss, in view of the fact that the institution concerned is not a member bank. Telegram dated July 27th from the Governor, Federal Reserve Bank of Cleveland, in re holding of real estate by Federal Reserve Banks. Referred to General Counsel for opinion. REPORTS OF COMMITihE NO. 1: Dated July 27th, recommending admission of State institutions, as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the individual reports attached to each Application. Approved. Dated July 26th, recommending approval of applications for fiduciary powers, as set forth in the auxiliary minute book as of this date. Approved. Dated July 26th, recommending approval of application of 1.1r. G. M. Whitmore to serve at the same time as a director of the National Copper Bank, Salt Lake City, Utah, and of the First National Bank, Nephi, Utah. Approved. Dated July 26th, recommending approval of application of Mr. John P. Stevens to serve at the same time as a director of the Hanover National Bank and the Columbia Bank, both of New York City; also of the Plainfield Trust Company, Plainfield, New Jersey. Approved. 6:53 . -6Dated July 26th, recommending approval of application of Mr. E. J. Potts to serve at the same time as a director and officer of the Commonwealth National Bank of Kansas City, Mo., and of the First National Bank, Holyrood, Kansas. Approved. Dated July 21st, recommending approval of appointments at the Federal Reserve Bank of Poston .at the following salaries: ,5,000 per annum Yr. Krickel Carrick, it Mr. Frederick L.Macalister,2,400 Approved. Dated July 22d, recommending approval of salaries for National Bank Examiners as follows: :2,400 per annum Mr. JohnT. Sheet, tt Yr. George M. Trammell, 2,400 Approved. Dated July 24th, recommending that the salary of Mrs. L. F. Holcombe, Stenographer to the Railway Loan Advisory Committee, be increased from 31,400 per annum with bonus, to Ca,600 per annum without bonus, effective July 15, 1920. Voted to approve increase of 3160 per annuri in Mrs. Holcombe's basic pay, making the same 31,560 per annum, plus 24O bonus, or a total compensation of 31,600 per annum. Other business was presented and disposed of as follows: Memorandum dated July 26th by Mr. Hoxton, recommending approval of increases in salaries of employees of the Federal Reserve Bank of Dallas, as submitted with letter from the Chairman of that Bank dated July 21, 1920. Approved. 654 -7Letter dated July 24th from Deputy Governor Harrison of the Federal Reserve Bank of New York, with regard to the interpretation of that part of Section 13 of the Federal Reserve Act which prohibits a member bank from accepting the drafts of any one customer to an amount in excess of ten per cent of the accepting bank's capital and surplus "unless the bank is secured either by attached documents or by some other the actual security growing out of the same transaction as acceptance", and the interpretation of a somewhat similar restriction in the regulations of the Board governing acceptances made by State institutions doing a foreign business in which national banks are permitted to invest. The Governor submitted for approval, draft of reply by him under date of July 27th. Approved. At 1-15 P.M., the meeting adjourned. Secretary. Approved:
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