Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, July 9, 1919, Volume 6, Part 3

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't a. meeting of the Executive Committee of the
Federal Reserve Beard held in the office of the Board on
.iednesday, July 9, 1919, at 12 o'clock noon,
3R1...IXT: The
gr.
Mr.
Mr.

Governor
Strauss
Hamlin
Broderick, Secretary.

The Governor redorted the purchase of special 2„;
certificates of indebtedness of the United States for deposit
with the Comptroller of the Currency as collateral for Podoral Reserve bank notes, as follows:
For Federal Reserve Bank of:
Cleveland

Date
July 8,1919

Amount
4:500,000

Approved.
The Governor reported rediscount transaction, pursuant to authority heretofore vested in him: member bank
promissory notes secured by Government obligations; rate 4%
on paper secured by certificates of indebtedness and 4

on

paper secured by Liberty bonds and Victory notes, as follows:
Bank Rediscounting

Date

July 7/19

Philadelphia,

Amount

Chicago, ;30,uvJ,J,D0

Maturities

11-15 days

Yoted.
Lemorandum by Secretary dated July 9th, recommending
conditional approval of application of National Jhawmut Bunk
of Boston to invest in stock of the Lercantile Bank of the Americas.




Approved.
Llemrandum by the Secretary dated July 9th, recommending approval of application of the Continental and Commercial National Bank of Chicago, Ill., to invest '125,000
in the capital stock of the Asia Banking Corporation of New
York.
Approved.
. Letter dated July 7th from Vice-President of the
National Shawmut Bank of Boston, making application on behalf
of that Bank for authority to accept for the purpose of creating dollar exchange in Switzerland.
Disapproved.
The following reports uere submitted:
Dated July 9th, 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 9th, recommending action on applications for
fiduciary powers, as set forth in the auxiliary minute book as of this date.
Approved.
Dated July 1st, recommending approval of salary of 43,000
per annum for Mr. Charles A. jtewart as a
National Bank Examiner.
Approved.




Z

-3from
Dated July 7th, recommending increase in salary
Mr.
of
annum
per
0
415,00
to
0
.;12,00
of the
er
't:xamin
Chief
as
Smith
Sherrill
ive
effect
ct,
Distri
e
Reserv
l
Seoond Federa
July 7th.
Approved.
the
Letter dated July 1St from the Chief Clerk of
of employees
Federal Reserve Bank of Boston, submittints lists
of that Bank and their salaries.
Referred to 3ecretary for consultation with
the Treasury Department to ascertain their views
with respect to increases in salaries of employees
of the War Savings Division of the Federal Reserve
Bank of Boston.
tment of
Dated July 9th, recommending approval of the appoin
Chief
nt
Mir. R. B. Motherwell as Assista
El-aminer of the Federal Reserve Bank of San
Francisco, at a salary of 30() per month.
Approved.
ent
Dated July 9th, recommending that the period of employm
per
430
at
es
of W. R. Howe to count messag
d.
ordere
se
otherwi
month be extended until
Approved.
Dated July 9th, recommending approval of recommendations
of increases in salaries of employees of
the Federal Reserve Agent's department, Federal Reserve Bank of San Francisco.
Approved.
The Governor stated that 3ecretary Broderick had inn
formed him of the receipt of an offer of an official positio
with L. financial institution which he was desirous of accepthis
in, if it was agreeable to the Board to release him from
present duties.




-4It was understood that Mr. Broderick
would continue in his present duties until
July 31st, and wculd then take statutory leave
of absence for the month of August, at the cmpiration of which his resignation would become
effective.
L.Wmorandum by Mr. Lmerson dated July 6th, recommending tho adoption of uniform practice of all Federal Reserve
Banks with respect to payment of charges on telegrams reporting figures to be used by the Board in its weekly statements,
and submitting for approval, draft of letter to be sent to
all Federal Reserve Agents in this connection.
Lpproved.
The Governor reported the rest:xve positions of the
several Federal Reserve Banks.
1,1r. Hamlin stated that Federal Reserve Agent Curtiss
at Boston had telephoned him, stating that the Federal Reserve Bank of Boston desired to make general increases in
rates, and had addressed a letter to the Governor on the subject.




The Governor stated that the letter had
not, as yet, been received by him.
Voted that the Governor be authorized to
send to La.. Curtiss a telegram reading as
follows:
"Referring to your conversation with
Hamlin, your letter respecting general rate
situation not yet received, but Board deems it

-5inadvisable from point of view of Treasury's
1,
plans to raise rate on certificates above 4,0
or to raise rate on Liberty bonds above 4i14,
because of probable tendency to bring about sales
of bonds at time when quotations are improving.
In view of these conditions, Board is not prepared to consider at present general changes in
rates, but would approve adoption by you of rates
on a parity with those prevailing at Federal Reserve Bank of Chicago."
At 12-40 P.M., the meeting adjourned.

Approved: