The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
086 At a regular meeting of the Federal Reserve Board held in the office of the Board on Thursday, June 20, 1918, at 11 A.M., PRESEM: Mr. Harding, presiding, Mr. Hanlin, Mr. Warburg, Mr. Aaliams, Mr. Miller Mr. illis, Secretary. Mr. Delano, The minutes of the meeting of the Board held on June 17th were read and, on motion approved. :r. was recorded as not voting on the ap2rova1 of the minutes. The minutes of the meeting of the Board held on June 18th were read and on motion approved. The minutes of the meeting of the Gold Export Committee held on June 18th, 19th and 20th, were presented and on motion approved and the action therein set forth ratified. By unanimous consent a report of the AtlantaCommittee dated June 20th, proposing the establishment of a branch of the iederal Reserve Bank of Atlanta at Nashville was read out of order and discussed. On motion the report was laid on the table. A report of the Atlanta Committee re organization of the Birmingham Branch was presented and on motion 1086 :7. H. 1ettig was approved as Director and as Chairman of the Board. A. A. Walker was approved as Manager of the branch at ,p4,000 per annum, provided the bank is willing to make him a director. A report of the Atlanta Committee re the organization of the Jacksonville branch was presented, discussed and referred to a special Committee consisting of Governor Harding and Mr. Williams. A letter from Senator Owen re reports of the current hearings on foreign exchange was read and it was agreed that Governor Harding say the Board would wish to appear before the Senate Banking Committee through Governor Harding as its representative, and that it is desired to have stenographic copies of the testimony from day to day. A letter from Federal Reserve Agent Heath enclosing a letter sent by the 6tate Superintendent of Banking in Michigan to Michigan State banks re gold deposits in Federal Reserve Banks was read and referred to the Bulletin Q1'arc *ttee(No.4), proper acknowledgment to be made by Governor Harding. A letter from Robert J. Patterson of the straw Hat Manufacturers Association was referred to Committee No.2. .1; letter from assistant Secretary Leffingwell transmitting a telegram from I. Collins to the President was referred to Governor Harding for reply. :rovernor Seay re the conditions A letter from , governing the sale of Treasury Certificates of Indebtedness was referred to the Eexecutive Committee; and the question of a revision of the rate schedule was transferred from Committee No. 2 to the 1-..xecutive Calnittee, the two matters to be considered together. letter from Assistant Secretary Leffingwell re the conditions under which rupee exchange is provided was read and referred to Committee ro. 2. A letter from iederal :::eserve Agent Hardy asking a modification of the Board's rules regarding savings deposits was read and it was agreed that the present rules must be maintained. The letter was referred back to uovernor '!ardins.. A letter from „iovernor Lynch re the cost of ship:?ing :;.old and notes between Alaska and San irancisco was read and referred back to the San irancisco bank with the suggestion that the matter is a business question, to be determined locally according as the gold to be had is or is not thought to be worth the cost of shipment. I 88 A letter from Federal Reserve Agent Jay re the conditions of establishing a branch at Buffalo was read and referred to the rew York Committee for consideration and report. Reports of Committees were read and acted upon as follows: Atlanta Committee: Dated June 18th, recommending agencies at Chattanooga and Savannah, read and laid on the table. Dated June 19th, presenting comparison of the Cincinnati and proposed Birmingham - Jacksonville by-laws; ordered circulated. No. 1. Dated June 20th, recommending approval of the appointment of George A. Acken of the Federal Re. 2,500 per serve Bank of New York at 4 duty; apassuming annum effective on proved. Dated June 5th, recommending the appointment of a messenger in the Division of Statistics at 4Z0 per month, effective on assuming duty; approved. • Dated June 19th, recommending approval of a stenographer for the Comptroller on temporary appointment for two months at :4,20j per edderannum, in place of La's. burn; approved. Dated June 19th, recommending that the Comptroller be authorized to purchase at the expense of the Board a macerator to cost3,500; approved. 1089 Dated June 20th, recommending increases at the Federal Reserve Bank of Atlanta as set forth in the report; approved. letter from the Comptroller of the Currency notifying the Board of the appointment of Miss N. B. • Gordon as clerk counter at $900 per annum; noted. Salary changes at the New Orleans branch were approved, as set forth in a memorandum filed with the Board by Governor Harding as of this date. Dated June 20th, recommending approval of certain employees of the Division of Foreign Exchange (Research Section) at salaries and dates of appointment as set forth in the report referred to; approved. Dated June 20th, recommending admission of state institutions upon terms named by the Committee in each case as follows: American Bank, Union Springs, Alabama; 35 shares in the Federal Reserve Bank of Atlanta. Liberty Bank & Trust Co., New Orleans, La.; 126 shares in the Federtd Reserve Bank of Atlanta. Union Savings Bank, Manchester, ich.; 45 shares in the Federal Reserve Bank of Chicago. Chappell State Bank, Chappell, Neb.; 30 shares in the Federal Reserve Bank of ransas City. No. 3. Dated June 17th, recommending changes in stock at Federal Reserve Banks as follows: - Applications for original stock: District 10. 8 First National Bank, Shares. Heber Spring, Ark. 17 McAllen, Texas. 33 District No. 11 First National Bank, Boston Committee: Dated June 12th, recommending appointment of Jesse H. Metcalf, Providence, R.O., as Class C director at the Federal Reserve Bank of Boston for the term ending December 31, 1919. A supplementary report on the discounting of cold storage paper dated June 14th, was presented and on motion laid on the table. No. 4. Dated June 17th, recommending the creation of a new division to be called the Division of Research, Analysis, and Publication; presented and referred to the Executive Committee for report as to methods of making it effective. On motion it was voted that the question of sums to be charged off by the Federal Reserve Bank of Philadelphia as of June 30, 1918, be referred to the Committee on the Philadelphia bank for report. Ur. Williams offered the following statement which, on motion was inserted in the minutes: ''Governor Harding stated that the Comptroller of the Currency's statement in his circular of June 5, 1910, which represented that two of the members of the Board (who with the Jecretary of the Treasury and the Comptroller of the Currency constitute a majority of the members) individually approved "The plan for the guarantee of national bank deposits for i'5,k.)00 or less, upon which interest not exceeding 3 per cent is to be paid, and making it discretionary with the national banks as to whether or not they shall take advantage of its provisions" - was entirely correct so far as it applied to him as one of the two appointed members favoring the plan. "Lir. Hamlin said the Comptroller of the Currency correct in his statement representing him as entirely was his approval of the plan mentioned." expressed also having Mr. Hamlin offered the following resolution, which was referred to the Executive Committee for report: Resolved: That while each member of the Board must determine for himself the propriety or necessity of expressing his individual opinion on any question, it is the sense of the Board that in the future, to avoid embarassment; members should not quote publicly the opinions of other members on matters which have not formally been passed upon by the Board. The following letter from the Secretary of the Board was presented: June 17, 1918. 'Ton. W.P.G.Harding, Governor, Federal Eeserve Board, Washington, D.C. Dear Governor Harding: "Please receive this letter as a resignation of my office as Secretary of the Federal Reserve Board. The matter has been so fully considered with you that I need say nothing further except to convey my best respects to you and your colleagues and to Assure you of my strong and permanent interest in the Federal Reserve System, as well as of my desire to contribute whenever and whatever I can to its success. If it suits your convenience I should be glad to be relieved of duty on July 1st, or as soon thereafter as conditions will permit. With assurances of my very genuine personal regard, believe me, Sincerely yours, (signed) H.2arker Willis. On motion it was voted that the Secretary of the Board be requested to reconsider his resignation. On motion the following resolution levying an assessment for the support of the Board during the coming half year, was adopted: *alEREAS, under jection 10 of the fict approved Dec. 23, 1913, and known as the Federal Reserve Act, the Federal Reserve Board is empowered to levy semiannually upon the Federal Reserve banks in proportion to their capital stock and surplus, an assessment sufficient to pay its estimated expenses., including the salaries of its members, assistants, attorneys, experts, and employes for the half year succeeding the levying of such assessment, together with any deficit carried forward from the preceding half year; and 7:HEREA.3, it appears from estimates submitted and considered that it is necessary that a fund equal to one hundred and twenty-five thousandths (.00125) of one per cent of the capital stock of the Federal Reserve banks be created for the purpose heroinbefore described, exclusive of the cost of engraving and printing of Federal Reserve notes; row, THEREFORE, BE IT RESOLVED, That pursuant to the authority vested in it by law, the Federal Reserve Board hereby levies an assessment upon the several Federal Reserve banks of an amount equal to one hundred and twenty five thousandths of one per cent (.00125) of the total capital stock and surplus of such banks, and the fiscal agent of the Board is hereby authorized to collect from said banks such assessment and execute, in the name of the Board, a receipt for payment made. Such assessment, will be collected in two instalments of one-half each; the first instalment to be paid on July 1, 1918, and the second half on September 1, 1918. General discussion of the question of guaranty of bank deposits ensued. On motion of,Mr4 Hamlin the Board at 1:20 P.U. adjourned to 10:30 A41. on Saturday, June 22d, the meeting to be at that time devoted to a further discussion of guaranty deposits. APPROVED: Secretary, Chairman.
@FedFRASER