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462 At a regular meeting of the Federal Reserve Board held in the office of the Board at 11.00 a. m. on Wednesday, June 2, PRESENT: Mr. Hamlin, presiding, Mr. Harding Mr. Delano Mr. Miller Er. Warburg Mr. Willis, Secretary. The minutes of the meeting of May 28, and the June 1 minutes of the morning and afternoon meetings of were read and approved. On motion a bid for a new safe to be used in ted connection with the Gold Settlement Fund was presen dollars. and approved at two hundred and sixty-nine (269) the Mr. Delano asked to reconsider the vote of n preceding day, whereby it was agreed to refer'bertai the adquestions relating to the circular providing for stating mission of State Banks to the Attorney General, consideration that he thought this subject. should be set for ry could be at a meeting at which the Secretary of the Treasu present. On motion the proposal was adopted. The suggested Secretary of tile meeting was set for 3.00 p. in. this day, the wishes Board to inform the Secretary of the Treasury of the 463 of the Board and to inform the Board whether he could be present. Mr. Hamlin was recorded as voting in the negative. After discussion of the power of the Board to refer legal questions direct to the Attorney General it was agreed to obtain the opinion of the Board's Counsel on this subject; and the Counsel having ap-eared and heard the statement of the question at issue, gave it as his opinion that the Board could, through its authprized rxecutive Officlers, place matters directly before the Attorney General of the United 3tates. Mr. Miller moved the adoption of the 3tate Bank circular as the report of the Committee that had been engaged thereon, the details of language and the mode of promulgating the circular to be determined later. The motion was carried. Mr. Hamlin was re- corded in the negative. Mr. Harding reported with reference to the insurance of the employees of the Board, submitting the bids of various insurance 00=panies, particularly these of the Metropolitan and 'Iquitable Life. In a general way all the proposals provided that employees 464 should receive an insurance equal to a year's salary, payable only in case of death while employed by the Board, but with the proviso that within thirty days after leaving the employ of the Board any such employee might apply and get a policy equal to his insured salary for one year with the Board, subject to usual premium. The report was accepted and it was moved to ratify the proposal of the 3quitable Life Assurance Company, effective as of July 1, 1915, the cost of insurance to be paid by the Board, technically as an advance in the salary of each and every employee. After discussion it was voted to lay the proposal on the table, the Governor in the meanwhile to submit the matter to the Comptroller of the Treasury in order to obtain assurance of . the legality of the proposed method of paying premiums. A letter making inquiry with reference to the renewal of bank acceptances in trade with South America was referred to Ni'. Warburg for report. On motion it was voted henceforth to make • public the weekly statement of the Board, as to the condition of Federal Reserve Banks for use in the Sunday 465 morning newspapers and not sooner. A letter from Mr. William Ingle, relating to• advertisements published by a member bank reSpecting the sale of 'Teal Estate Bonds" said to be issued under the provisions of the Federal Reserve Act was referred back to Mr. Ingle with the reouest that he take up the matter with the bank in question. A letter from Governor Strong of the Federal Reserve Bank of New York, relative to the double liability of State Banks and Trust Companies in New York, was read to the Board and ordered filed. The Secretary of the Board was directed to obtain from all other Federal Reserve Banks the same information with respect to double liability in their districts, requesting that such data be obtained through the aid of the counsel of each such bank. The daily report with reference to the purchase of acceptances by Federal Reserve Banks was brought up for discussion and La*. Warburg called attention to the fact that the acceptances of member banks now preponderate in the portfolio of Federal Reserve Banks over those of non-member banks. A telegram from the Federal Reserve Bank of Dallas 466 Texas, relative to the retention of certain counties in Oklahoma in the Dallas district having been read, it was voted that the Secretary reply with a statement that a decree in the matter had already been sent out, stating however, the substance of this decree. Telegrams from two State Banks (First State Bank, Geyser, nontana and Commercial Bank and Trust Company of Laurel, flississippi) were read, both indicating a disposiregution to wait until the issuance of the new State Bank lation. The Secretary of the Board presented forms for withdrawal use by insolvent banks in making application for These were approved and ordered printed in suf- of stock. ficient quantity. A letter from Governor Sawyer of the Federal Reserve Bank of Kansas City inquiring whether member banks Counsel might buy and sell real estate loans was referred to of the Board for opinion. A letter from Federal Reserve Agent Wellborn, district relative to the credit situation in the Atlanta was referred to Mr. Harding for such report as he might deem best. A letter from Governor Rhoads relating to the 467 conversion of 2; into bonds was referred to the Special committee on relations between the Federal 2eserve Board and the Treasury Department. A memorandum nrepared by the Comptroller of the Currency relative to the admission of State Banks as National banks, they to retain such branches as they already have, was referred to ir. Delano, as a sr,ecial committee to consider and report on the subject. The Secretary of the Board requested permission to present a letter from Lr. George Foster of Spokane, 7/ashington, relative to the consideration of a plan of banking reform suggested by him. After the history of the Foster correspondence had been outlined, the Jecretary was directed to say, in reply, that the Board is now fully engaged in applying the eederal Reserve Act, hut that should it reach the point of recommending amendments, it would duly consider r. Foster's suajestions. On motion at 12.50 p. m. the Board adjourned to meet at 3.00 p. m. this day. Jecretary. APPROVED: Chairman.
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