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1235

At a meeting of the Ilxecutive Committee of the
2udera1 Reserve Board held in the office of the Governor on
July 30, 1918, at 4:05
PRESENT;

Mr.
Mr.
Mr.
Mr.

Harding, presiding
Warburg
Hamlin
Willis, Secretary.

4,ftor discussion of a telegram of application from
Dallas, it was, on motion, voted to suggest to thu New York
Federal Reserve Bank that it rediscount 44,000,000 eligible
paper 30-90 days at 472%, details to be arranged with Dallas
direct.
A telegram from Deputy Governor Hoopes asking

lether

a railroad note authorized by the Director of iinance for the
purpose of paying increased railroad salaries was eligible,
was ordered answered with the statement that the eligibility
of the note is a matter of grave doubt and that it should be
treated as ineligible until a formal ruling is issued.
On motion it vas voted upon recommendation of the
iederal Eeservo Bank of Chicago to raise the rate on commercial paper discounted with 15 day repurchase agreement
from 4,, to 4,effective July 31st.
Similar action was taken in the case of the Federal

tei)1

Reserve Bank of St. Louis (making the rate 450 on repurchases),
which had made application to that effect on July 24th.




On motion it was voted to wire Governor Wold, as

"July 31, 1918.

"In view of heavy increase of investments of
Federal Reserve Banks reduction in discount rate at this
time would be entirely unwarranted. :;ince Board acted
on Chicago's rate this has become increasingly evident.
Lven then, however, Board urged banks to try to bring
about understanding concerning rates on deposits without
simultaneous change in discount rates. Board is considering reopening entire question suggesting to all clearing
houses to consider as the maximum the schedule of deposit
rates now agreed upon by them, and to agree further that
no increase in deposit rates shall be made until in each
case favorable action by clearing house is first secured
after previous consultation with Federal Reserve Board.
It would be great help if Llinneapolis would lead off with
agreement along these lines and Board will be glad to
enter upon exchange of views regarding this matter with
you or banks of your district. It is important to find
some uniform basis of controlling deposit rates without
losing liberty of action in each district, to adjust discount rates to conform to local conditions and requirements.
HARDE:G"
On motion 'alter ;iyatt was designated as Assistant
to the Counsel of the Board at 42,4oU per annum, effective
August 1st.
Governor Harding reported that Hr. „ilmath had reported good progress at the Bureau of Engraving and Printing with Federal Reserve notes.
Hr. 'uurburg moved to authorize the Federal Reserve
Bank of 3t. Louis to establish a clearing branch at Little
Rock, Ark., under rules to be presented by the Board, provided satisfactory terms can be arranged with the local
Clearing House Cumnittee.
Hr. Hamlin moved to amend the motion by striAint,
•:alt the word "clearing".



The amendment prevailed; the motion as amended
was adopted.
It was voted that the action be kept confidential
for the present.
Reports of Committees were presented and disposed
of as follows:
1
Dated July 30th, recommending changes in the salaries of
the Board's staff under the recent legislation of Congress as set forth in a memorandum of this datei also changes as
follows:
41,200 per animm,effective Aug.lst
Julia Moore,
"
1,000
Lsther Schmehl,
Genevieve Ileacham,1,000
It was further voted that J. L.
eligible for an increase of A20 per annum
upon certification, be granted said increase
if approved by Mr. Miller.

Dated July 30th, 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.
No. 1
clo
.alget
u pto
Atl
=alialnne; ialzaz:eg
oi
r
Dated July 30th, imrhlf




to
the following institution:
it. Rwth National Bank, Ft. ;,orth, Texas.
A memorandum from John DeLa:,later recommending a change

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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102