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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 -pousnocpR 2uI400m crola *17 :P0A0ad&T gt:g *IIAT4oejje Twepso oftetfo eg4 puu pommddil SVA 4 09r0140 JO Xung eliaoseg Twepog elm moaj ma9cto4 uT pinse32ns saJTAt veireet ot14 SuTen Jo om/4 uT S