Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, June 22, 1920, 11:00 AM, Volume 7, Part 2

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5T-()

At a meeting of the Federal Reserve Board held in the
office of the Board on Tuesday, June 22, 1920, at 11 A.M.,
PRESENT: The
Mr.
Mr.
Mr.
Mr.

Governor
Moehlenpah
Platt
Williams
Chapman, Secretary.

PRESENT ALSO:
Mr. Logan, Assistant Counsel.
Minutes of meeting of the Board held June 16th were
read, and on motion approved.
Business was presented and disposed of as follows:
The Governor reported the reserve positions of the
several Federal Reserve Banks as at close of business June 19th,
and the status of rediscounts between Federal Reserve Banks as
of the same date.
The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government obligations; rate 5-1/24 on
paper secured by certificates of indebtedness, and 670/ on paper
secured by Liberty bonds and Victory notes, as follows:
Date

Bank RediscountiAg.

June 15
June 16

Minneapolis
Richmond
Kansas City
Kansas City

June 19




Noted.

With

New York
Cleveland
New York
New York

Amount

$3,500,000
5,000,000
5,000,000
7,000,000

Maturities

11-15 days
/I

12-14 days
10-15 days

-9-

The Governor reported rediscount transaction, purbank
suant to authority heretofore vested in him; member
rate 74
promissory notes secured by Government obligations;
on commercial paper, as follows:
Date

Bank Rediscountin

With

June 16

Minneapolis

Cleveland

Amount

2,500,000

Idaturities

1-90 days

Noted.
The Governor reported rediscount transaction, purbank
suant to authority heretofore vested in him; member
promissory notes secured by Government obligations; rate
64
5-1/27, on paper secured by certificates of indebtedness,
and 74
on paper secured by Liberty bonds and Victory notes,
on commercial paper, as follows:
Date

Bank Rediscounting

With

June 18

Minneapolis

New York

Amount

.5,000,000

Maturities

11-15 days

Noted.
Letter dated June 17th from the Chairman, Federal
Reserve Bank of Philadelphia, in further explanation of disby United
count rate proposed by that Bank on paper secured
States certificates of indebtedness.




Noted.
Letter dated June 17th from the Chairman, Federal Re-

-3serve Bank of Atlanta, in re discount rates of that Bank
on paper secured by United States certificates of indebtedness.
Noted.
Requests of the Federal Reserve Banks of Philadelphia,
Richmond, Chicago, Dallas, Boston and St. Louis, for authority
to declare dividends at the rate of ec per annum for the
period January 1 to June 30, 1920, to their respective stockholders.
Approved.
Letter dated June 16th from the Chairman, Federal
al of payment
Reserve Bank of Philadelphia, requesting approv
by that Bank to its employees of bonus for the six months
ending June 30, 1920, on the following basis:
0 On annual salaries
2%/
15% On annual salaries
not more than
10% On annual salaries
not more than

of $1,500 or less;
in excess of $1,500 and
$3,000;
in excess of $3,000 and
$4,000.

Approved.
Letter dated June 15th from the Chairman, Federal
al of the followReserve Bank of Atlanta, requesting approv
that Bank ating schedule of allowances to directors of
tending meetings:




Hotel bill
Meals
Incidentals
Approved.

-

$5.00 per day
2.00 per meal
3.00 per day

553

-4Letter dated June 16th from the Chairman, Federal
of the following
Reserve Bank of Atlanta, requesting approval
yees of that
schedule of allowances to officers and emplo
Bank travelling on its business:
Hotel bill
Meals
Incidentals

3.50 per day
1.25 per meal
2.00 per day

-

Approved, upon the understanding that employees will render accounts for expenses
actually incurred, not to exceed ,t,a0 per day.
Letter dated June 15th from the Chairman, Federal
of the followReserve Bank of Atlanta, requesting approval
of the Federal
ing schedule of allowances for the member
Reserve District when
Advisory Council for the Sixth Federal
or the Federal
attending meetings of the Board of Directors
Advisory Council:
,Totel bill
Meals
Incidentals

-

.5.00 per day
2.00 per meal
3.00 per day

Approved.
Letter dated June 17th from Assistant Federal Reserve
ess of that Bank
Agent at New York, reporting upon the busin
for the month of May, 1920.
Ordered circulated.
Letter dated June 16th from the Chairman, Federal
of Government bonds as
Reserve Bank of Atlanta, in re value




-5security to loans.
Referred to the Governor for instructions
Federal Reserve Agent at Atlanta, not
the
to
to accept as security for the issue of Federal
Reserve notes, any collateral paper, the market
value of which is not equal to the face amount
of the paper so offered.
Applications of the following banks for authority
us, under the
to accept up to 100% of their capital and surpl
ve Act:
provisions of Section 13 of the Federal Reser
National Bank of Tacoma, Tacoma, Wash.
Farmers tc Mechanics National Bank,
Fort Worth, Texas.
Approved.
Pf.PORTS OF COMMITTFE NO. 1:
Dated June 22d, 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.
at Federal
Dated June 18th, recommending changes in stock
the auxiliary
in
Reserve Banks as set forth
minute book as of this date.
Approved.
Dated June 22d,

recommending approval of applications for
fiduciary powers, as set forth in the auxiliary minute book as of this date.
Approved.

salary of $2,400
Dated June 17th, recommending approval of
per annum for Mr. Michael J. Hurley as
National Bank Examiner in the First Federal
Reserve District.
Approved.




555

-6Dated June 17th, recommending approval of salary of 02,400
per annum for Mr. Alexander B. McCans as
National Bank Examiner in the Eleventh
Federal Reserve District.
Approved.
Dated June 21st, recommending approval of increases in
salaries of Chief National Bank Examiners,
effective July 1, 1920, as follows:
To
From
0
?10,00
$8,000
D. C. Mulloney,
6,500
6,000
ter,
J. Schech
7,500
7,000
J. Wm. Pole,
8,000
7,500
Fred Brown,
Approved.
Dated June 21st, recommending approval of increases in
salaries of Supervising National Bank: Examiners, effective July 1, 1920, as follows:
To
From
$5,000
04,500
n,
Freema
R.
L.
5,000
4,500
L. K. Roberts,
Approved.
of $4,200
Dated June 21st, recommending approval of salary
W.
ead
as Super0.
Birckh
Mr.
for
annum
per
er,
ive
Bank
effect
Examin
al
Nation
vising
1920.
1,
July
Approved.
Dated June 22d,




recommending approval of salary at rate of
$30,000 per annum for Chief National Bank
Examiner Sherrill Smith, and salary at the
rate of $23,000 per annum for Chief National
Bank Examiner Daniel C. Mulloney; such
salaries to be effective during the time
Messrs. Smith and Mulloney are absent from
this Country in examining branches of National
banks located in South America, and to include
all expenses incurred by them.
Approved, in lieu of salaries for
Messrs. Smith and Mulloney approved by the
Board on June 8, 1920.

551;

-7Dated June 21st, recommending approval of increases in
salaries of employees of the Division of
Analysis and Research, as follows:
To
From
$4,000
;3,500
W. H. Steiner,
3,000
2,750
Miss Anna Youngman,
2,750
2,000
Snodgrass,
Miss Katherine
2,750
2,400
F. W. Jones,
2,400
2,000
Miss Pnth Cornwall,
2,250
1,800
Miss Faith WI lliams,
1,200
1,500(1:750 half time)
J. M. ,:hapman,
1,560
1,500
M. R. Adams,
1,560
1,500
Miss Alice Ross,
1,440
1,080
Heller,
Miss Rose
1,560
1,440
Johnson,
Miss Mary
1,440
Miss Helen S.Grant,
1,500
Bode,
M.
Miss Olive
Approved.
Dated June 21st, recommending approval of appointment of
Mr. Arata Kobayashi to assist in statistical
work in the Division of Analysis and Research
at the rate of $800 per annum for half time
work.
Approved.
Dated June 18th, recommending approval of increases in
salaries of National Bank Examiners, effective July 1, 1920, as follows:
To
From
$4,000
$3,900
G. M. Coffin,
4,500
4,200
H. W. Scott,
3,900
3,600
R. W. Byers,
2,700
2,400
M. E. Donough,
3,900
3,600
W. Z. Hayes,
3,300
3,000
F. Mitchell,
4,800
4,500
F. W. Stearns,
2,700
2,400
J. B. Funsten, Jr.,
3,000
3,300
J. W. Barrett,
4,500
4,200
K. B. Cecil,
5,000
4,800
C. H. Chapman,
2,700
2,400
". M. Lammond,
3,000
2,700
V. G. Snyder,
3,300
3,600
Summers,
S.
G.







-8-

W. P. Daugherty,
P. J. Lorang,
L. L. Madland,
B. K. Patterson,
M. D. Smiley,
J. H. Smith,
H. V. Walker,
L. H. Ackerman,
J. B. Chenault,
A. B. Faris,
E. C. Haneke,
J. F. Miller,
T. C. Thomas,
R. E. Brooks,
R. G. Finney,
L. W. Hoffman,
O. K. LaRoque,
Chas. A. Stewart,
D. R. Wood,
J. C. Borden,
Chas. E. Boyd,
T. E. Fletcher,
J. L. Griffin,
J. H. Beall,
W. P. Funsten,
R. C. Houston,
J. L. Kennedy,
Paul Partridge,
E. D. Robb,
F. T. Ransom,
A. R. Bradley,
L. C. Challman,
T. P. Farmer,
J. D. Mossman,
E. E. O'Brien,
Mr. H. Reed,
L. Wilson,
S. A. Longmoor,
A. D. Thompson,
C. H. Martin,
L. H. Martin,
H. B. Raney,
L. M. Sawyer,
Approved.

From
$3,300
2,700
2,400
3,600
3,000
4,800
2,400
2,400
4,200
3,000
3,000
4,500
3,900
2,400
4,200
4,000
3,000
3,000
3,300
2,700
3,000
4,200
3,600
2,400
2,400
3,900
4,000
3,900
4,500
3,900
2,700
3,000
3,900
3,900
2,700
3,600
3,300
3,600
3,600
3,600
3,300
3,000
3,000

To
$3,600
3,000
2,700
3,900
3,300
5,000
2,700
2,700
4,500
3,300
3,600
5,000
4,200
2,700
4,500
4,200
3,300
3,300
3,600
3,000
3,300
4,500
3,900
2,700
2,700
4,200
4,200
4,000
4,800
4,200
3,000
3,300
4,200
4,200
3,000
3,900
3,600
3,900
3,900
3,900
3,600
3,300
3,300

-9Letter dated June 17th from the Chairman, Federal
Reserve Bank of Philadelphia, requesting approval of the appointment of Mr. J. Frank Rehfuss as Acting Assistant Federal
Reserve Agent at that Bank.
Approved, the bond of Mr. Rehfuss as
such, to be fixed in the amount of $50,000.
Letter dated June 19th from the Chairman, Federal
Reserve Bank of New York, submitting for approval proposed
amendments to the by-laws of the Buffalo Branch of that Bank,
enlarging the powers of the Branch in appointing sub-committees, the members of which to receive $10 for attendance
at each meeting, and an allowance to cover their actual and
necessary travelling expenses.
Approved.
Letter dated June 22d from Mr. W. C. Coffey, Chairman
of the Committee representing the wool growers, conveying
to the Board an expression of thanks for the consideration
extended to the committee representing the growers, bankers,
manufacturers and the wool trade; also submitting for comment by the Board proposed statement to the press announcing
the plan adopted for meeting the situation in the wool industry.




Read with approval.

-10-

At 12-40 P.M., the meeting adjourned.

Approved;