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At a meeting of the Federal Reserve Board held in the office of the Board on Thursday, July 8, 1920, at 11-15 PRESENT: The Mr. Mr. Mr. Mr. A.m., Governor Hamlin Moehlenpah Platt Emerson, Assistant Secretary. PRESENT ALSO: Governor Norris, Federal Reserve Bank of Philadelphia Mr. Logan, Assistant Counsel. Business was presented and disposed of as follows: The Board discussed with Governor Norris the confidential memorandum dated July 3d on member bank collateral notes secured by Government war obligations; also the effect of the proposed plan in the Philadelphia District and possible modifications, after which Governor Norris withdrew from the meeting. Minutes of meeting of the Board held July 7th were read, and on motion approved. Telegram dated July 7th from the Chairman, Federal R serve Bank of San Francisco, advising that that Bank had fixed, subject to the approval of the Board, the following discount rates effective July 12, 1920: pro For Bankers' acceptances; 5r0 and 4 on discounted bills, including member bank 15 day collateral notes secured by certificates of indebtedness bearing those rates respectively. Approved. 61) -2The Governor reported rediscount transaction, 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, as follows: Bank Rediscounted Date Chicago July 7th With Cleveland Maturities Amount $9,000,000 Within 15 days Noted. The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations: rates similar to those borne by certificates, with minimum of 5-1/2%, as follows: Bank Rediscounting Date July 6th Atlanta With Amount Maturities Cleveland $740,000 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 5-1/25 on paper secured by certificates of indebtedness, and pro on paper se- cured by Liberty bonds and Victory notes, as follows: Date July 7th Bank Rediscounting. Minneapolis Richmond Noted. With Amount Maturities Cleveland Cleveland 91,500,000 5,000,000 11-15 days 610 -3The Governor reported the reserve positions of the July 'several Federal Reserve Banks as at close of business e 6th, and the status of rediscounts between Federal Reserv Banks as of the same date. Letter dated July 5th from the Interstate Trust & al Tanking Company, New Orleans, La., asking for the approv of the Board to its establishment of foreign branches at Tampico, Vera Cruz and Merida, Mexico. Approved. Letter dated July 2d from the Chairman, Federal Rel serve Bank of St. Louis, enclosing a copy of report of Counse of McConkey of that Bank with reference to the liabilities the Federal Reserve Bank of St.- Louis in connection with the failure of the First National Bank, Judsonia, Arkansas. Noted. Letter dated July 7th from the Chase National Bank of New York City, asking permission of the Board to invest of an additional amount of ',!969,900 in the capital stock of the American Foreign Banking Corporation under Section 25 the Federal Reserve Act, with the understanding that the total investments of the Chase National Bank in foreign the banking corporations doing business under agreement with 10% of the Board, including this investment, would not exceed capital and surplus of the Chase National Bank. Approved. 61t A RTIPORT9 OF CO=ITT7,E NO. 1: Dated July 8th, 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 7th, recommending changes in stock at Federal Reserve Banks, as set forth in the auxiliary minute book as of this date. Approved. Dated July 8th, recommending approval of applications for fiduciary powers, as set forth in the auxiliary minute book as of this date. Approved. Dated July 6th, recommending approval of salary of $2,400 per annum for Mr. Robert K. Stuart as National Bank Examiner in the Seventh Federal Reserve District. Approved. Dated July 6th, advising of the resignation of Mr. H. N. Baxendale as Acting Assistant Federal Reserve Agent at the Detroit Branch, Federal Reserve Bank of Chicago, effective July 15, 1920. Noted. Dated July 7th, recommending approval of. indefinite leave of absence without pay for Ulysses Rogers, Messenger on the Board's staff, and the employment of a messenger during the absence of Messenger Rogers at the rate of $90 per month. Approved. Dated July 7th, recommending approval of applications of the following to serve at the same time as officers or directors of the United States National Bank, and the Bankers Trust Company, both of Denver, Colorado: 61 2 -5A. C. Foster, E. T. Vilson, Findlay L. MacFarland, Albert A. Reed, James Ringold, E. S. Kassler, and applications of the following to serve at the same time as directors of the Denver National Bank and the Bankers Trust Company, both of Denver, Colorado: James B. Grant, Karl C. Snyder, S. N. Hicks, C. Mac A. Wilcox, Merritt W. Gano, J. C. Mitchell, Harry C. James. Voted to approve the above applications, since the Bankers Trust Company is not yet open for business and therefore can not be in substantial competition with the other institutions named; approval granted, however, with the understanding that the applicants will file new applications on December 1, 1920, to serve these institutions, at which time the Bankers Trust Company will have commenced business, and the Board will then be able to determine whether or not the above national banks are in substantial competition with the Bankers Trust Company. Letter dated July 8th from Mr. M. C. Elliott, Member of the Railway Loan Advisory Committee to the Federal Reserve Board, recommending an advance of $2,000,000 to the Carolina, Clinchfield & Ohio Railroad, under the provisions of Section 210 of the Transportation Act of 1920. Approved. Letter dated July 7th from the Secretary of the -6Burglary Insurance Underwriters Association of New York City, asking permission for a committee of representatives of that Association to be present at the vault construction tests to be made by the Federal Reserve Board. On motion duly made and seconded, it was voted to refer this request to the Board's Consulting Architect Trowbridge, with advice that if he had no objection, he extend an invitation to the representatives of this Association to be present at such tests as he desires. Letter dated July 3d from Acting Secretary of the Navy Coontz, enclosing copy of memorandum from the Governor of the Virgin Islands of the United States, with reference g to extending the date on which the abrogation of the existin moratorium in the Virgin Islands shall be effective, from August 23 to October 23, 1920. Referred tO Assistant Counsel Angell for report. Mr. Hamlin, Chairman of the Law Committee, submitted the following report of changes in staff in General Counsel's office, occasioned by the resignation of General Counsel Harrison: That Walter S. Logan be appointed General Counsel of the Board, and that his salary be increased to ?7,500 per annum, effective July 1, 1920. That the salary of Montgomery B. Angell, Assistant Counsel, be increased to $6,000 per annum, effective July 1, 1920. _7_ That the designation ofWalter'gyatt be changed from .Assistant to Counsel to Assistant Counsel, and that his salary be increased to ,800 per annum, effective July 1, 1920. Approved. At 1 P.n., the meeting adjourned. Assistant Secretary. Approved:
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