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A meeting of the Federal Reserve Board was held in the office of the Board on Thursday, July 6, 1922, at 10:10 a.m. PRESENT: Governor Harding Mr. Platt Mr. Miller Mr. Mitchell Mr. Hoxton, Secretary. Minutes of the meeting of the Board held June 29th were read and on motion approved. Minutes of the meeting of the Executive Committee held July 5th were read and upon motion the action therein ratified. The Governor reported the reserve positions of the several Federal reserve banks as at close of business July 3d. Letter dated July 5th, from the Assistant Federal Reserve Agent - at Philadelphia, requesting approval of the action of the Board of Directors of that Bank in establishing, subject to the review and determination of the Federal Reserve Board, a minimum rate of 2i% for the open market purchase of bankers acceptances. Approved. Memorandum dated June 30th, from Dr. H. Parker Willis, submitting the names of certain persons in Austria and Germany to Whom he would like to have sent copies of the Federal Reserve Bulletin, in view of the contemplated visit on vacation to Europe of one of the employes of the Division of Analysis & Research. Approved. 4 -2- Letter dated July 5th, from the Acting Chief of the Division of Analysis & Research, requesting the employment of a stenographer for temporary service, at the usual salary, namely, $1440 per annum. Approved. Letter dated July 5th, from the Chairman of the Federal Reserve Bank of Richmond, transmitting, with favorable recommendation, the application of the State and City Bank and Trust Company of Richmond, Va. to establish a branch at 2916 North Avenue, Richmond. Approved. Letter dated July 5th, from the Governor of the Federal Reserve Bank of Richmond, transmitting the opinion of the General Counsel of that Bank with reference to the eligibility for discount of paper created by the Tobacco Cooperative Marketing Association. Upon motion, the Governor was requested to refer the opinion aforesaid to the Board's General Counsel. With reference to the action of the Board on June 29th, the Governor submitted his letter, sent after consultation with the Comptro4ler of the Currency, to the Federal Reserve Agent at Dallas, with reference to the loan limitation of the First National Bank of Durant, Okla., in view of an alleged impairment of capital. Also, a letter in reply from Judge Ramsey, dated July 3d. Noted with approval. Letter dated June 29th, from the Chairman of the Federal Reserve Bank of San Francisco, with reference to certain recommendations for increases in salary submitted by that Bank. -3- Referred to the Committee on Salaries and Chargeoffs, with the lAnderstanding that the matter of San Francisco salary adjustments will be disposed of by the Board at its meeting next Tuesday, July 11th. The Board considered an application from Mr. John D. Sage to serve at the same time as director in the First National Bank of Cincinnatti and the Central Trust Company of Cincinnatti, said application bearing the favorable recommendation of the Assistant Federal Reserve Agent at Cleveland and an adverse recommendation by the Counsel of the Board, Mr. Freeman. Upon motion, it was voted that the application be referred back to the Federal Reserve Agent at Cleveland, for further investigation and recommendation. Mr. Platt read to the Board a resolution designed to define the term "substantial competition" as used in the Kern Amendment to the Clayton Act, with a view to using the resolution as a guide to the Board in the administration of the said amendment, and stated that he would submit the resolution for action at some future meeting of the Board. Mr.Mitchell moved that in advance of the formal submission of Mr. Platt's resolution, that the Governor be requested to send a copy of it to the Secretary of the Treasury, with the request that the Secretary obtain from the Attorney General an expression as to Whether he sees any legal objection to the definition of "substantial competition" as set forth in Mr. Platt's proposed resolution. Mr. Mitchell's motion, being put by the chair, was carried, Mr. Miller voting "no". -4- Mr. Miller reported to the Board regarding his recent visit to New York, with especial reference to his efforts to secure a new Director for the Division of Analysis and Research. REPORTS OF COMUITTEE NO. 1: Dabed'July 5th, Recommending changes in stock at Federal reserve banks, as set forth in the auxiliary minute book of this date. Approved. Dated July 5th, Recommending action on applications for fiduciary powers as set forth in the auxiliary minute book of this date. Approved. 5th, Recommending approval of the application of Mr. Charles Dated July M. Niezer to serve at the same time as director of the First National Bank of Ft.Wayne and as director of the Tri-State Loan and Trust Co. of Ft. Wayne, Ind. Approved. ,Dated July 5th, Recommending approval of the application of.Mr. Byron H. Somers to serve at the same time as director Of the First National Bank of Ft.Wayne and as director of the Tri-State Loan and Trust Co., both of Ft.Wayne, Ind. Approved. At 12:40 p.m. the meeting adjourned. So r t y.
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