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At a meeting of the Executive Committee of the Federal Reserve Board held in the office of the Board on Tuesday, July 6, 1920, at 11 A.M., PRESENT: The Mr. Mr. Mr. Governor Moehlenpah Platt Emerson, Assistant Secretary. FEF.SENT ALSO: Mr. Logan, Assistant Counsel. Minutes of meeting of the Board held July 1st were read, and on motion approved. Minutes of meeting of the Executive Committee were read, and on motion the action of the Committee therein set forth was ratified as amended. Business was presented and disposed of as follows: Letter dated July 2d from Mr. C. B. Claibourne, President, National & State Bankers' Protective Association, with reference to the action taken by Federal Reserve Banks since the conference between representatives of that Association and the Federal Reserve Board held in Washington in May last, in encouraging banks to remit at par. The Governor submitted for approval by the Board a draft of letter in reply. Approved. The Governor reported that he had sent under confidential cover to the Federal Reserve Banks of Philadelphia, Richmond, Atlanta and Dallas for such suggestions as they 595 might care to make, a memorandum proposing certain changes in loaning to member banks on their collateral notes secured by Government war obligations. Letter dated July 2d from the Chairman, Federal Reserve Bank of Chicago, replying to the Board's letter of June 26th (X-1966) on the subject of the transfer of Sub-Treasury functions to Federal Reserve Banks; also advising that it was the opinion of the officers and directors of that Bank that Sub-Treasury functions should be performed by the Detroit Branch. Noted. Letter dated June 30th from the Governor, Federal Reserve Bank of San Francisco, submitting for approval by the Board, recommendations of increases in salaries of officers and employees of that Bank, effective July 1, 1920, such increases being recommended by the Board of Directors of that Bank. Approved. The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations; rate 5-1/25 on paper secured by certificates of indebtedness, and paper secured by Liberty bonds and Victory notes, as follows: 0 on -3Bank Rediscounting Date Richmond July 1st Chicago Minneapolis July 2d With Boston (Boston (Cleveland Cleveland Amount Maturities $10,000,000 11-15 days 6,)00,000 rithin 15 days 12,000,000 2,000,000 11-15 days Noted. The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations; rate 5-1/2% on paper secured by certificates of indebtedness; 6% on paper secured by Liberty bonds and Victory notes, and 7570 on commercial paper, as follows: Bank Rediscounting Date July 1st July 2d St. Louis Dallas With Boston Boston Amount Maturities $3,000,000 5,000,000 Noted. The Governor reported rediscount transaction, -pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations; rate on paper secured by certificates of indebtedness, as follows: Date July 2d Bank Rediscountin Chicago Noted. With New York Aunt Maturities 8,000,000 Within 15 days -4The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations: rate 5-1/2,5 on paper secured by certificates of indebtedness, and 5-3/45 on paper secured by Liberty bonds and Victory notes, as follows: Date July 2d Bank Rediscounting St. Louis With Cleveland Amount Maturities $2,000,000 Within 15 days Noted. The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations; rate on commercial paper, as follows: Date July 2d Bank Rediscounting Kansas City With Amount Cleveland $4,007,209.81 Maturities 31 days Noted. The Governor reported the reserve positions of the several Federal Reserve Banks as at close of business July 2d, and the status of rediscounts between Federal Reserve Banks as of the sane date. Telegram dated July 6th from the Governor, Federal Reserve Bank of Philadelphia, advising that in view of the 5'18 -5improved reserve position of that Bank, they desire to purchase from the Federal Reserve Bank of New York, if agreeable to that Bank, $10,000,000 short time bills. On motion duly made and seconded, it was voted to advise the Federal Reserve Bank of Philadelphia that the Board has no objection to the consummation of this transaction, if agreeable to the Federal Reserve Bank of New York. Letter dated June 30th from the Chairman, Federal Reserve Bank of Richmond, replying to the Board's letter of June 26th (X-1966) with reference to the transfer of Sub-Treasury functions to Federal Reserve Banks. Noted. Letter dated July 1st from the Chairman, Federal Reserve Bank of Minneapolis, replying to the Board's letter of June 26th (X-1966) with reference to the transfer of SulTreasury functions to the Federal Reserve Banks. • Noted. REPORTS OF COMMITTEE NO. 1: Dated July 6th, 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 3d, recommending changes in stock at Federal Reserve Banks as set forth in the auxiliary minute book as of this date. Approved. -6Dated July 1st, recommending approval of salary of $2,400 per annum for Mr. Irwin D. Wright as National Bank Examiner in the Ninth Federal Reserve District. Approved. Letter dated July 2d from Consulting Architect Trowbridge, advising that subject to the approval of the Federal Reserve .Board he had arranged with the Federal Reserve Bank of New York to pay Mr. Ten Eyck a salary of $1,000 per annum in connection with work performed for that Bank, this to be in addition to the salary of 44,000 per annum at present re-1 ceived from the Board, making his total compensation ;5,000 per annum. Approved. Memorandum dated July 6th by Assistant Secretary, recommending the appointment of an additional operator in the Board's telegraph office at 4150 per month from July 6th to October 31, 1920. Approved. Letter dated July 2d from Miss N. T. Steger, Stenographer in the Board's Division of Examination, submitting her resignation, effective at the close of business June 30,1920. Accepted. Letter dated July 2d from Ira J. Nichols, Stenographer In the Board's Division of Examination, submitting his resig- -7nation, effective at the close of business July 31, 1920. Accepted. Memorandum dated July 6th from the Director, Division of Analysis and Research, recommending that the Board establish a subscription price of $4.00 per annum for the complete (second) edition of the Federal Reserve Bulletin, effective at once, the present subscriptions to continue at the old price until those already paid for have been completed. Voted to make this matter special order business at the next regular meeting of the Board. Letter dated July 3d from the Federal Reserve Agent, Federal Reserve Bank of Atlanta, submitting for approval of the Board, recommendations of increases in salaries of employees of the Federal Reserve Agent's Departments of that Bank and its branches. Approved. Letter dated July 2d from the Governor, Federal Reserve Bank of Minneapolis, submitting for approval of the Board recommendation of increases in salaries of employees of that Bank, effective July 1, 1920. Approved. Letter dated July 2d from the Chairman, Federal Reserve Bank of Chicago, in regard to his recent visits to con- -8ventions of State Bankers' Associations in that district, and reporting particularly upon his visit to the Iowa convention at Des Moines, and the financial and business conditions in the State of Iowa; also asking permission of the Board to publish in his monthly report of business conditions a statement showing the percent of borrowings by member banks by states in his district to basic line. Voted to permit Mr. Heath to publish such a statement in the forthcoming issue of his monthly report of business conditions. Letter dated July 3d from Deputy Governor Harrison of the Federal Reserve Bank of New York, submitting for consideration by the Board, letter sent by the New York Bank to the Textile Banking Corporation. On motion duly made and seconded, it was voted that the Governor be authorized to advise Deputy Governor Harrison that the Board has considered the letter and agrees with the conclusions reached by the Federal Reserve Bank of New York that the promissory notes of the Textile Banking Corporation are not eligible for discount by Federal Reserve Banks. Letter dated July 2d from the Governor, Federal Reserve Bank of Minneapolis, enclosing for consideration of the Board, letter written by him to Mr. Arthur Reynolds, Vice-President, Continental & Commercial National Bank, Chicago, Ill., with reference to extending accommodations 607 -9- to the Banking Corporation of Helena, Montana. Referred to the Governor for reply. At 1-45 P.M., the meeting adjourned. Assistant Secretary. Approved:
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