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507 A meeting of the Federal Reserve joard was held in the office of the '2edera1 1eserve . oard on Tuesday, June 15., 1926 at 11:00 a.m. Vice Governor Platt Yr. Hanlin Mr. Janos Mr. Cumninr:ham Mr. McIntosh Mr. Eddy, Secretary Mr. 110Clelland, Asst. Secretary '411e minutes of the meetings of the Federal Reserve Board held on JUMB PEESEITT: 9t4 and 10th were read and approved. The Vice Governor reported that Mr. Harrison, Deputy Governor of the 4'°(leral Reserve Bank of New York, had called him over the telephone and atated that he had received several letters from Governor Strong regarding Ilia activities abroad in which Mr. Harrison thought the Board might be illterested. 011 Mr. Platt stated he had asked M. Harrison to come to a.,shington Thursday for the purpose of presenting these letters and discussing them 17ith the Board. Ale Vice Governor read to the ..x)ard the following letter from the eserve Agent at Atlanta: "June 12, 1926. 1:r. Walter L. Eddy, Secretary, Federal aeserve Board, Washington, J. U. Dear Mr. .Ady: Your letter of June 9th, with enclosures, as received by ne on Friday morning, June 11th. I at once presented to Mr. Jos. L. Campbell personally the letter addressed to him. Later in the day I read to the Joard of Directors, Who were convening in regular session, the letter addressed to the Federal aeserve Bank of Atlanta and the resolution of the 508 6/15/26 —2— "Federal Reserve Board enclosed therein. I also requested the Secretary to spread uoon the minutes the letter arrl the resolution, ana he will do so. Very truly yours, (S) Oscar Newton, Federal Reserve Agent." The vice Governor then presented the following telegram dated June 11th hlr. J. L. Campbell, Deputy Governor of the Federal Reserve Bank of 4t1atita aald. the Board's telegraphic reply thereto made on initials of nambers cl the Board, under date of June 12th: "Walter L. Eddy Federal Reserve Board, Washington, D. C. Please request Board to Postpone hearing in order to give na sufficient time to prepare myself it being Physically impos— sible for m2 to do so by Wednesday hr. James assured me ample time and notice would be given. J. L. Campbell." "PERSONAL Joseph L. Campbell c/o Federal Reserve Bank Atlanta Ga Your telegram. Hearing has been postponed until ten a.m. Wednesday June 23. Eddy." Upon motion, the Board's telegraphic reply was formally approved. Th°4 Vice Governor then presented the following letter addressed under. late 4, 04 June 12th, on initials of members of the Board, to the Chairnan or the Board of Directors of the Federal Reserve Bank of Atlanta: 509 6/15/26 -.3_ "Dear Mr. Newton: At the request of Mr. Campbell, the Federal Reserve Board has postponed the hearing referred to in our letter of June 9th, which was scheduled to be held in the Board Boom in the Treasury Building, Washington, D. C., at 10:00 o'clock a.m. on Wednesday, June 16th. The hearing in Question will be held on Wednesday, June 23rd, at 10:00 o'clock a.m. in the Board Room. Please so notify lir. Campbell personally and advise the Board when you have done so. By direction of the Federal Reserve Board. Very truly yours, Walter L. Eddy, Secretary. 1 Mr. Oscar Newton, Chairman, Board of Directors, Federal .1-leserve Bank, Atlanta, Ga." Upon motion, the above letter was formally approved. Zhe Vice Governor then read to the ioard the following telegram dated 11th from Mr. 7 . A. Black, Chairman of the Committee of Directors of the z, acleral Reserve Bank of Atlanta appointed to investigate the recent 41111,111 ni„ °-- of aarrency by that bank to its Havana Agency, together with the 4arat s telegraphic reoly approved on initials on 0.1121B 12th: "1.ir. Edmund Platt Vice Governor, Federal Reserve Board Washington, D. C. Your letter ninth inviting our committee to Washington on sixteenth received. ::ay our comittee see members of your Board Tuesday the fifteenth to confer fully with them stop 510 6/15/26 -4"In the interest of all concerned we feel that hearing set for ,iednesday should be nostponed until later date to give our committee opportunity to confer fully with your Board and to complete its duties stop Please wire rely as two members of our committee live at distant noints. E,11.Black• "'E. R. Black c/o Atlanta Trust Company Atlanta Ga Rearing schedule ten a.m. ,,ednesday June 16th has been postponed until ".ednesday June 23rd same hour. Board will be glad to see Your committee any time. Advise in advance date you expect to be here. Edmund Platt Vice Governor" Upon motion, the Board's telegraphic reply was formally approved. The Vice Governor stated that he had communicated further with Mr. Black and that the members of the Atlanta committee would appear before the Board tomorrow. Mr. James suggested that the Doard should have present a reporter to make a stenographic record of the Proceedings of the meeting, and upon motion by him, the Jecretary was instructed to provide a stenographer at the meeting. kQMn -1144dum from ldr. Janes dated June 15th as follows: "I aim attaching hereto statement sent me by -r. Jos. L. Campbell, DePutY Governor of the Federal -loserve Bank of Atlanta, - same being a statement covering his activities in connectionwith the special ahlpment of currency made by the Atlanta Bank to the Havana Agency on A pril 10th. This statement reached me this morning. 1, In view of the fact that there seems to be a good many discrepancies t',!tween the statements regarding this shipment, vilidh are now before "e Board, I surr2est that this statement be referred to counsel for careful consideration and comparison and that it then be brought to the attention of the ialividual members of the .3oard by circulation. 0) Geo. R. James." "STATEIZENT OF J. L. cAmPBaL, DEPUTY GOVaiiITOR. In memorandum brought to attention of our _.oard of Directors at its meeting :ay 31, 1926, by r. George • James, having reference to my participation in the handling of srecial shipment af 511 6/15/26 -6- "currency to our Havana Agency on April 10, 1926, I am held. responsible in It 4 of the memorandum with having taken nineteen men to Cuba on a pleasure trip, over the protest of the Cuban Director of Post aid the Officers of the Gunboat, imposin,T an unnecessary expense on the Federal Reserve Bank of Atlanta. This shipment of currency was disnatched from the Federal Reserve Bank Post Olf ice in Atlanta to the Havana Agency in Havana, Cuba, in the same manner as any other registered. mail shipment, contained, in 42 mail pouches under Post Office K locks. It was delivered by trucks under guard to the U. S. mail car at the office cd: the U. S. Railway Rail Department at the Tenninal Station in Atlanta; here checked in by the railway mail cleilcs and receipted for by them. Governor 7,'e1lborn was -oresent and. broujit the receipts back to the bank. It was in the sole custody of six railway mail service men until transferred to the Cuban Gunboat, when it was then under the joint custody of the U. S. Postal :.:en and. tile Cuban Postal Authorities, placed in a compartment of the boat under the seal of both U. S. and. Cuban Postal representatives. On arrival in Havana, the shipment was in the joint custody of the U. S. Postal authorities in Havana and the Cuban Postal authorities, until delivered to our Havana Agency, where the 42 pouches still under Rotary X locks were checked into the Agency and Manager Magruder and. I receipted for them in duplicate; this in order that both the Cuban and. the U. S. Postal authorities would have a record of the delivery. The shipment was transported from the Gunboat to the Agency by trucks under military guard furnished. by the Cuban Government. It will be seen from this that I was in no way responsible for tile six postal service men. They made their 0\711 arrangements with liontalvo to be taken to Havana on the boat, went on their own responsibility and at their o\21 expense. I was informed that they were under instructions to make delivery to U. S. Postal agent in Havana and therefore could not make delivery to Cuban Postal authorities at Key West. I paid no part of their expenses to or from Havana or while they were in Havana, except that they ate part of some box lunches we had on the special train. The Federal Reserve Bank party consisted. of only nine men, instead of nineteen as charged, three guards, three clerks, Mr. McCrary and an Employe of his ".&igineering Company and me. Mr. Couch of the Southern Ra.ikaray Company also went to Havana but at no expense to the Federal. Reserve Bank. The entire party consisted. Of sixteen and not nineteen and only nine of these were of the Federal Reserve Bank party. Upon arrival at Key ".7est, there was some discussion as to how many could be taken on the boat. I told Mr. Montalvo that I of course wanted to see the job completed, as I felt a great responsibility, and that I needed the service of my three clerks 512 ft) 6/15/26 "who were exmrt at handling money, to assist the very limited organization (of only two men) at the Agency in checking in and paying out the currency after it arrived at the Agency. The three guards I might need to handle the pouches if handlers were not provided in Havana, the . As for the weight of the shipment being about 20,000 rounds Postal men, they would. have to sneak for themselves. Mr. \tic) only liontalvo then talked with the officers of the boat, back to came and spoke Spanish, and then to the Postal men, take to tell me that the officers of the boat had. agreed that they make the Postal men as their instructions required my three along bring could I that delivery in Havana, and ble to me. agreea be would this that him clerks. I stated to been had that ent agreem the of y McCrar I then advised Mr. the Southern Couch, Mr. with e arrang tO ded reached and procee the party back Aailway representative, to send the balance of back ard came vo Montal Mr. d, engage thus to Atlanta. ,:hile entire the to ion object no had. dant Arrunan stated that the I . told him t aboard brough not were arms our party going if we would accede to that readily, as I of course realized it party have would not be proper or necessary that any of our arms while under the 'protection of the Cuban Navy. He again back and. consulted with the Commandant (in Spanish) and came dant Comman stated to me in the most cordial manner that the odations on invited the entire party to go; that the accomm he would do but offer, to like would he board were not what in just as him d I thanke table. comfor us his best to make instructed then I ). reting interp vo Montal (Mr. cordial a manner of the care in car n pullma the in them put all who had. arms to sail to ready be would we that vo Montal porter, and told Mr. . inHe dinner get and rant restau a as soon as we could find, ing was dant exnect Comman the as that do not sisted that vie must . guests his as boat the on us to have dinner at prolonged due The discussion before sailing was sorrevth ity of to the ceremony of introducing everybody and the necess not, and do not now consider translating what was said. I did re trip, at an unnecesthat we were taking these men on a pleasu e, and I might sary expense, as only eiitt went at our elqpens for not having taken them have been justly subject to criticism And if occasion had arisen where I should have needed them. racka only mrve trip the in re pleasu besides, there was no vo t of Mr. Montal protes the over done ing strain. liothing was as have been done, could nor t, Gunboa and the Officers of the aboard the vessel you must realize that we could. not have gone d most cordially. invite were we unless invited to do so, and sibility the respon as along, I was glad. to have Mr. McCrary counsel and advice his and of handling this matter was heavy, ities were author Cuban the was welcomed.. My relations with er g whatev nothin d notice altogether pleasant and. cordial and that would indicate otherwise. 513 C. I' 6/L5/26 -7-- "Item 5 of the memorandum charges me with having been intoxicated, on the boat. This I deny absolutely as neither I nor any rxmber of the Federal Reserve Bank party was intoxicated. and any evidence to that effect is incorrect and unt rue In Item 6 of the memorandum it is stated that the overwhelming preponderance of evidence showed that upon our arrival in Havana we conducted ourselves properly and that we did, a good. job unloading, checking and paying out the currency. Although the shipment was in the custody of the Postal authorities, I personally supervised its transfer from the boat to the trucks at the dock at Havana, placing one of nrj men at the hatch on the boat and another at the trucks on the dock and they counted the 42 pouches out of the compartmnt on the boat and. into the trucks. I placed one of my men on each truck so that they would. be on hand when the pouches arrived at the Agency. The rest of the party imluding me followed in a bus. The pouches were again checked and counted into the vaults of the Agency, our guards with the assistance of those of the National City Bank handling and moving them while checked by our Manager, Assistant ilanager and. our Clerks. '..rhen completely checked. and verified, Manager Magruder and. I sigied receipts in duplicate to the Postal Author it lea. Being exhausted from loss of sleep and the nervous strain under which I had. been for forty hours aid still upset from seaeicirness, I went to the hotel and after arranging accommodations for the party, went to bed. I. was, however, in telephone communication with Manager Magruder a number of times during the morning, advising him regarding matters that came up for consideration. I sent all of our man but one back on the first boat that sailed for Key 7iest which was on r2u.esday the 13th. I remained in Havana until Friday. The arranging and harviling of this shipmnt was the most try-. ing experience through which I have evor gone. Between 9 AM and 2 RI on Saturday, April 10th., I talked over Long- Distance telephone twice with Magruder at Havana; three times to Jacksonville endeavoring to charter a boat from the P. & 0. S. S. Co. and, after charterone from them was advised thirty minutes before our train left Atlanta that the boat was not to be had; talked to Mr. Paddock of the Federal Reserve Bank of Boston; the National City Bank called Me twice from New :Cork to find out it we were going to get the shipment to Havana by Monday; I called. Mr. No oil asking that he request the U. S. Navy or the Revenue Department to furnish us with a boat; 'Winston and. Governor Crissinger called. to tell me that neither - lorida waters the Navy nor the Revenue Department had a boat in F and. I stated to then the difficulties we wore having in completing transportation arrangEments and getting insurance aid Governor 514 4, 6/15/26 -8- "Criazing,er and Mr. -,-/inston, at the phone together, told me that we must get this shipnent to Havana by Monday morning without fail, Mr. Winston saying, "Campbell it's your job and do it whatever it takes"; I called Mr. Case of the Federal Reserve Bank of New York and had him purchase from us 15 million U. S. Securities to enable us to transfer gold to the Federal Reserve Agent for the issuance of F. R. Notes, afterward the transfers from New York for payment in Cuba furnished us with sufficient gold in the daily settlement, but we had to give the gold to the Agent before we could get the notes issued and. before we knew what the transfers to us for Daynent in Cuba would be; Mr. Case called again about 2 al to tell us he had transfers for us amounting to 32 million and to ask how much we were shipping, and when I told him 26-113- million, he insisted that we should take 35 million although I told him that we were shipping 6 million from ,:ashington to arrive in Havana on Tuesday and 10 million from New Orleans to arrive ':ecllsday but he still insisted that we take 35 million from Atlanta on the special train and I then had to t31 1 him that 263,- million was all we had available in Atlanta and asked him what suggestion he had to offer and he had none. "I arranged for the special train about noon while the other Officers made arrangements with the Postal Authorities and the Insurance Underwriters. ',"'her the spacial train left Atlanta at 4 RI we had no definite way of getting from Key West to Havana. I only learned from a telegram received on the train during the night that the Cuban Gunboat would take us to Havana. The special train having the right-of-way traveled at a speed which made sleep impossible, making the run to Key West in 2;3 hours whereas the regular schedule is 30 hours, '7e made only short stops to change engines and crews and wired ahead to have our lunches put on the train. "On the -gunboat our opportunity for rest was very limited because of the lack of accommodations, some of our men sleeping on chairs. I was nauseated from sea-sickaress as were others on board so got very little rest or sleep. "On the whole, the trip was anything but a pleasure trip and from the beginning was an exceedingly difficult experience that kept everyone at high tension. (S) June 13, 1926. J. L. Campbell, Deputy Governor. " Upon mot ion, the suggestion contained in . James' mEmorandum was approved. 515 6/15/26 —9— Letter dated. June 10th from the Secretary of the Federal Reserve Bealit of liew York, advising that the Board of Diractors on that day reviewed the bank's existing schedule of rates of discount and. purchase 'lade no change. Not ed. Telegram dated June 10th from the Assistant Federal Reserve Agent at 2.1 ch3flond, advising that the board. of directors on that day made no change in the benk's existing schedule of rates of discount and. purchase. No ted. Letter dated. June 11th from the Secretary of the Federal 'Reserve ealk Of Atlanta, advising that the board of directors on that day male no ehaalee in the bank's existing schedule of rates of discount and purchase. Not ed. Telegram dated June 10th from the Chairman of the Federal Reserve 1341/k Of 1.(ansas City, advising that the board of directors on that dau made 11° change in the bank's existing schedule of rates of discount end purchase. Noted. Memorandum dated June 14th from the Secretary, requBsting authority tQ , —41)-LoY Lir. Charles .:0 Joyce as extra relief man on the night force of ths 0-, vula Settlement Division, effective Jimo 15th, with salary at the per rate of 1.50 to ,,;3.00, depending upon the length of time employed each evenine. Approved. Letter dated June 8th from the Secretary of the Federal Reserve Of 0 oan Francisco, advising that the Executive Connittee on that day 5-16 6/11126 -10• (lesignated Less rs and L.. G-•. Cashiers at the Seattle and Los 3cougall as cth .ilss is ta.nt 3-canches, respectively, to serve the vacation ooriod.. Iroted. Letter acted June 15th from the Federal heserve .L1gent at Cleveland, with res-oect to concern felt by the Federal aeserve bank over loss of Posits by member banks in the eastern and southern districts of Ohio; the Federal .:eserve gent requestinc; euthoritz, to build. up the Departnlent of the Federal hesoive Bank of Cleveland, by drawing on the ,ly slj4:::ht increasec1 ex.1111 it :3e2 - ?artment of the bank and. with corarrativc., Dense, for tho purpose of making credit i.nvestisation of certain Ohio b.--mks, tile investis7ations it is desired. be absorbed by the Federal exf)ense of O5ervo haul:. Upon motion by :".r. Jame,s, it as voted to approve the proposal of the Federal ]Aeserve 2,..gent at C1Jveland. -teport of Committee on Salaries and :.;xoenditures on letter dated June llth from the Governor of the Federal .i.eserve '-,ank of .lichmond, meuesting 41)Prryt,al of increases in tl)(.) salaries of the following employet:s of the effective July 1, 1926; the Committee also recomramding airproval: Derart,, - ent Clements, 1. T. Gordon, H. IT. .r. 11urner, P. 'Ian Felt, S• ::a rtenstein, D. Aoproved.. Bank ':..elations hxamiiiiflg :Cxamining Fiscal isency Office jerv ice 2.)resont Sala'L ;3600 3600 3300 2400 2760 Pro nosed Salary 4200 3600 2520 3000 te6,4 6/15/26 Report of Cormittee on District 3 on letter dated June 11th from th3 Federal _eserve Agent at Philadelphia, advising if there is no objection to his (3-cinr so he would like to leave the Federal Reserve Bank about July 12th to make a trip abroad firom vinieh he would expect to return about 41-1gast 20th; the committee recommending approval. upon motion, it was voted, to approve the leave of absence requested by the Federal Reserve Agent. Report of connittee on Salaries and Expenditures on letter dated June llth from the Governor of the Federal Reserve Bank of Richmond., requesting al3Proval of the action of the Executive Cormittee of that bank in granting 11V extensions, with full pay, in leaves of absence for lass charlotte 3": 2.Ieade of the head office, vtho has previously been granted five months' leave of absence with full ray, and Miss Lillian uarroll, of the 3altimore Branch, who has received 60 clays, leave with pay; the Committee reco:umending that approval be given but that the Federal Reserve bank be jut on notice that further leave with pay will not be granted in the case of Miss Upon motion, the recormendation of the Committee was approved.. :ieport of Committee on Examinations on letter dated. June Ilth from the ,-ederal Reserve Agent at Dallas, transmitting and. recommending approval Of an 2or aoplication of the Uochise County State iank of 2ombstone, Arizona, alp.proval of its action in ..-ourcha.sing the assets and assuming the lia- bilities of the - irst National Jank of 2ombstone; the ,ommittee also recomIlle4aing appraVal. Approved. 518 6/15/26 -12-- Letter dated June 10th from the Federal aCtv- eserve .,..r;ont at Chic of the mcei-ot of a letter from the editor of th) merican -ssociation ,:ourna.1, inquiring with regard. to the bank's study °f earnings and expenses of member banks and requesting the Federal _ese-ve lient to write an article for publication in the July issue of the Journal tbe subject "Need for Bank Standards"; the Federal 2- ,eserve .rjent stat111 he has notified the editor of the Journal that the time is too short to Prepare all article for the July issue, and further, that the bank's stlIclY is not ti*Jt J - ar encruji advanced to make any public statement as to 4 -weed-are or conclusions. Noted, with e..-pnroval. -- Jraft of re-oly, oxpared by. Counsel and a.)-oroved by the Law Committee, to 1„ ‘' - 6( er dated June 3rd. from the Chairman of the Coranittee on Banking and 0111, , Of the United States Senate, recuesting the views of the Board 04 n Proposed vicral- ,Ticu1tura1 Credits Act, the effect of which amendment to the 2':...r, De to permit Federal Intermediate Credit banks to make loans, advances Or ( "is counts havin a maturity of less than six months in cases where such 10. 'advances or discounts re-oresent part of a series of loans, advances or eal-lilts to a single borrower, all of -,thich are secured in whole or 13art °Y the sane chattel mortgage and some o f ifnich have a matth-ity of at least S. months. Upon motion, the proposed reply was approved. .deport of Law Committee on matter referred to it at the meting on ‘111114 , ' 1 -arlielY, manor,r,iduin from Counsel dated 27th, with reference 519 6/15/26 -13- to the action of the xecent Govern° xs' Conference in recommending that the Federal Reserve System acting through the Board retain Mr. Newton D. Baker as special counsel to consider litigable matters only; Counsel in his mem"andurn :cecanmending that the Board a-Trove the recommendation of the G.°Ire rao rs Conference and setting forth a plan to put the recommendation illto effect if anoroved by the Board. The Law Conznittee reported against the retaininP; of special counsel at the present time and suggested that the Pecleral Reserve banks be requ.ested to forward to the Counsel of the Board. Q1 Papers in suits brought against Federal Reserve banks and also in suits brbctleist by Federal Reserve banks, which are of system-wide interest, after whiCu. the Beard can determine what action should be followed in each specific eases After discussion., upon motion by Mr. the suggestion of the Law Cormittee was approved. Memorandum from Counsel dated June 5th submitting draft of letter to all Federal iieserve Agents, with reference to the 2,ct of Congress which was aPProved. on May 24, 1996, to prohibit the offering for sale as Federal Par„ — Loan Bonds, of any securities not issued under the terms of the Farm Loan 4et, to limit the use of the words "Federal" "United States" or "Reserve" tile titles of private institutions and to prohibit false advertising by 1314, --411ts not members of the Federal Reserve System; the letter statin that since tilia 13 a criminal statute violations of its provisions come under the juris(lieti°11 ‘4erit5 Of the Department of Justice, and. requesting the Federal Reserve to report the facts in all cases of violations of this law coming to their Xl°tioe to the local United States district attorney, and also to send 520 6/15/26 -14- 4 full report of the matter to the Federal Reserve Board, in dunlicate, in order that the Board may transmit a copy thereof to the Department of Justice. Upon motion, the proposed letter was approved. Ilemorandum from Counsel dated June 10th, referring to letter dated June 5th from the Governor of the Federal Reserve Jank of Dallas, raising the ouesti011 Illether the Federal the eserve bank may, of its am volition, strike from Par list the rAne of the First State Bank, jylie, Y2exas, which has agreed t° remit at par but repeatedly fails to comply with special instruct ions to tele eraPh non-payment of checks drawn on it and forwarded direct to it for 11911nrent and which in some instanaes returns checks drawn upon it umaid withZt Pretestin[; such checks thereby subjecting the Federal Reserve bank to pose liability for negligence in the collection of such items; Counsel recom- Ille11(1111E; that the _)oard rule that x ederal Reserve banks nay remove from the par list the name of any non-wmember bank which rereatedly fails to ramit promptly for cash letters sent to it, to protest unpaid cash items sent to it, to comlAY with instructions to wire advice of non-payment, to comply with any other 131'0'71310n of aegulation "J" of the iederal Reserve Board, or of the zederal - ve bank,s check collection circular, or which for any other reasonable may be deemed by the Federal Reserve bank to be an unfit or unsafe gor collection - unless checks on such bank can safely be collected at r 111 acceptable funds throuji another bank in the same city or town. After discussion, upon motion, counsel's recommendation was approved as was also a proposed letter to the Governor of the Federal :Reserve Bank of Dallas prepared by Counsel in accordance with his recoladendation. 521 6/1.5/26 -15- 1.1ernorand.um from Counsel dated. June 11th with reference to the action c'f the recent Governors' Conference in votin7; that, pending a further co:.sideration 0_ the effect of the decision in the case of the Federal _teserve Of 6an .1.ra-,acisco v. Idaho-arirm Alfalfa seed. ,irowers .2i.ssociation on the practice of Federal .::,esercre banks in extending credit to t'cleir member the diecleral ..Loserve Banks, as authorized in the ',oard.'s letter of 1?ebrIlarY 27, 19 26 (X-4544) should eliminate from their rediscount application blanks any letters or other symbols designed to indicate whether the 1* 413er red.iscourited is depositors' paper or purchaseipaper aid. that the C°11ferelice recommend to the 3oard that these applicati n blanks should not coil reference to rediscounted pacer obtained by a member bank from a 11°4-tleinb r bank; Jounsel (1) Statin'; that the 3oard.'s letter, H-4544, tal4es Care Of the sit uat ion as to the elimination from applications for rodi, °1-111t of any letters or other symbols designed. to indicate whether the Paper offered for rediscount is depositors' Taaper or purchased pater Such time as the Board chooses to revoke the authority contained in that otter; (2) Stating that in his opinion the ,"..oexd.'s Regilations should to curin."0,1 --eLL in accordance with the provision of the letter, H-454.1, but that 40 boa. leves it ':;ould. be ve7 unwise to further amend the'i?.‘e gulations so as to eliminate from the aoplications for rediscount the infof.:iation as to Or tlie 13a1Br offered was acquired. from a non-member bank; and (3) ,. ---u-111E, that as no immediate action is reouired, that furth3r conof t the subject be Postponed until such tino as the .3oard under- 01ieral revision of its 2,ogu1ations as it would seem -and.esirable 522 6/15/26 -16- to Undertake piecemeal amendments wit il the fate of the so-called 110Pad4en Bill (H. R. 2) is decided, as this bill if it becomes law necessitate a complete new issue of regulations. Liter discuss ion, it was voted that the above memorandum be mferred back to the Law Committee to be held in abeyance until such time as the Comidittee is prepared to recommencl to the T3oard a revision of its aegulations. ZEtnorandam from Counsel dated June 11th, with reference to the action (314 the recent Governors' Conference in agreeing that each Federal :Reserve bank should send to Honorable Zewton D. Baker, through the office of the 13°41.(1's Counsel, a report of its present procedure and. practice in the tlatter of making rediscounts for, or advances on bills payable of, member bark st including a description of the policy of the Federal Lieserve bank In 4ecluiring additional collateral and the steps taken generally in deal- ing with weak banks, as well as aiw other pertinent facts that might enble lir. Baker to make a thorough study of the subject with a view of infollIling all the Federal Reserve banks of the dangers to be guarded aeainst ani the procedure to be followed in such of their operations as be concerned with or relating to the principles of law involved. in Id-alio-Grimm Alfalfa Seed Growers Association case;_Clounsel stating that as the litigation in the case mentioned has already been terminated alicl it Baker has submitted his' final bill which ha.s already been paid, W01,1 ,z seem that the action of the Governors' Conference really involves a. new SPecial the employment of Hr. Baker which would require the approval of Board- a.mroval he recommends be given. 523 6/15/26 -17- After discussion, it was voted that this mamorandum also be referred back to the Law Committee. 1. PORTS OF STANDING CCE,alIzir, 2,1,S: Dated, June 10th, 2.ecommending changes in stock at lederal _:eserve 12th, Banks, as setforth in the Auxiliary ::inute 300k of 14th, this date. Approved. Jated, june 10th, Recomnending action on applications for fiduciary 11th, powers as set forth in the Auxiliary -inute nook of this date. Approved. Dated, June 12th, flecommending approval of the application of L. Jurden for permission to serve at the same time as director of the 2ide1ity -ational›,an"4;-. and Trust Oompany, Kansas L;ity, 1o. as director of the Union and Planters Bank and '.L:rust company, ;..emphis, Tenn. and as director of the iirst National ;)ank, Allston, Dated, t1 ne 10th, Approved. ecommending approval of the arplication of Mr. Lieorgp W. Jauer for permission to serve at the same time as director of the 2irst National 3ank, Hoselle, J. and as director of the Union County l'rust Company,. .21izabeth, • J. Approved. The meeting adjourned at 12:00 o'cloci noon. Secretary. 4pProvt:a: Vice-uovernor.
@FedFRASER