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Federal Reserve Upon call of the Governor a special meeting of the , June Board was held in the office of the Federal Reserve Board on Tuesday 10, 1924, at 3:10 p.m. PRE3ENT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. James Ur. Eddy, Secretary it at the meeting The Law Committee reported on the matter referred to ry of the this morning, namely, letter dated June 10th from the Under Secreta of Congress to pass the ftaeury,advising that as the result of the failure Treasury's deficiency bill it has been obliged to withdraw temporarily the ments authorization to the Federal Reserve banks to carry on exchanges, replace and redemption of United States paper currency for it. The Committee submitted Board asdraft of a reply to the Under Secretary's letter, stating that the wal of this swmes he has notified the Federal Reserve banks of the withdra authority, and further, that in view of the Withdrawal the Federal Reserve and replacing United baias will have to discontinue exchanging, redeeming n is restored, since States paper currency as fiscal agents until this functio no It is purely a governmental funct ion which the Federal Reserve banks can lonp.er legally perform. After discussion, the proposed letter to the Under Secretary of the Treasury was approved. telegram and a circuThe Committee also submitted draft of a circular receipt lar letter of confirmation to all Federal Reserve banks, advising of the wal of the currency Of the Under Secretary's letter and stating that upon withdra should discontinue exchangknction by the Treasury, the Federal Reserve banks currency as fiscal agents until ing, replacing and redeeming United States paper 6/10/24 -2- this function is restored, since it is purely a governmental function which the ederal Reserve banks can no longer perform and suggesting that the Fed- eral Reserve banks so advise applicants for exchanges, replacements and redemptions; - meeting demands for one dollar notes arising out of ordinary banking transactions by paying out such bills as they have on hand, irrespective Of the standard of their fitness, and by paying out standard silver dollars. After discussion the proposed telegram and letter to the Federal Reserve banks were approved. Draft of letter to all Federal Reserve Agents, advising that the recent Modification of the bankers' blanket bonds of the Federal Reserve banks so as to include Federal Reserve Agents, their assistants and employees, does not Obviate the necessity of individual surety bonds for Federal Reserve Agents elid Assistant Federal Reserve Agents running to the United States. Approved. Mr. Platt announced that he had increased the salary of his Secretary, lir. Joseph L. Durland, from %12800 to 02900 per annum, effective June 1, 1924. Approved. Draft of reply to telegram dated June 10th from the Chairman of the Federal Reserve Bank of Atlanta, with regard to negotiations between the Georgia National Bank of Albany, Georgia, and the Citizens First National Beak of Albany, whereby the former institution would take over the latter; the proposed telegraphic reply stating that the Board would interpose no obJaction to the negotiations as the matter is one which comes within the province Of the Comptroller of the Currency and not the Federal Reserve Board* Upon motion, the proposed reply was approved. t) _3.. 6/10/24 Menrolandum from Counsel dated June 9th, submitting draft of a circuReserve banks on the lar letter to the Chairmen and Governors of all Federal subject "Announcements of Rate Changes". Ordered circulated. The meeting adjourned at 4:5 Secretary, APProvedlek
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