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tit 4




At a regunlr meeting of the 2edera1
Reserve Board held in the office of the Bonrd
at 11:10 a. m., on iqiiday, June 23,
PREOENT:
Mr. Hamlin, presiding :Jr. ':filliams
Mr. Delano

1.1r. Harding

1,1r. Allen, secretary.
The minutes of the meeting of Thursday, June 22, were rend and approved.
further consideration was given to
a revised letter of instructions to 2ederal
reserve agents and forms to be submitted to
the Board by those desiring exemption under
the Clayton Act and these wore approved.
A telegram, dated June 23, sined
by Mr. George M. Reynolds for a conference of
representatives from clearing houses at New
York, Chicago, $t. Louis, Kansas City, Dallas,
Atlanta, Cleveland, Minneapolis and Philadelphia

asking a meeting with the Board on Tues-

day, June 27th with a view to cooperating in
connection with check clearing and collection,
was referred to the Committee on Clearing, with
power.
The request of the Federal Reserve
Bank of Minneapolis that their application previously approved by the Board to convert 0350,000 of

4 United

States bonds into 3% bonds

and notes, was approved.
A letter from Mr. James B. Forgan,
Chairman, Federal Advisory Council, was read.
This called attention to a ruling of the Comptroller, of the Currency as to the issuance by
national banks of traveler's letters of credit
and was referred to the Comptroller of the Currency.
Attention was called to three changes
in staff, not affecting the salary list, at the
Federal Reserve Bank of Atlanta, and the letter
referred to the Committee on Operation of the







Federal Reserve Bank of Atlanta.
An opinion of Counsel given to the
Comptroller of the Currency, submitted for approval that it might be printed in the Bulletin,
was referred to the Committee on Law.
There was discussion of the steps to
be taken to further the consideration of amendments to the Act now pending before Congress.
The Secretary presented a report from
the Treasurer of the United States, submitting
offerings of United States bonds by member banks
for sale to Federal reserve banks, and the following resolution, offered by Mr. Delano, was
agreed to.
RESOLUTION ADOPTED BY THEFEDERAL
RESERVE BOARD.
Friday, June 23, 1916.

WHEREAS, It appears that the twelve
Federal reserve banks have purchased in
the open market bonds in excess of the
amount which might have been allotted to
such banks at the end of this quarterly
period on the basis heretofore determined
upon and announced by the Board.

NOW, THEREFORE, BE IT RESOLVED,
That it is the sense of the Board that
no necessity exists for enforcing the
requirement provided for under Section
18, of the Federal Reserve Act, at the
end of this quarterly period ending,
June 30, 1916, and that it will not at
this time require the Federal reserve
banks to purchase any of those bonds
which are offered for sale by member
banks through the Treasurer of the
United States under the provisions of
Section 18.
BE IT FURTHER RESOLVED, That the
Secretary be instructed to send a copy
of this resolution to the various Federal reserve banks and to the member
banks which have offered bonds for sale
in order that they may be notified of
the action of the Board in the premises.
On recommendation of Mr. Warburg, approval was given to the request of the Federal
Reserve Bank of Chicago for permission to purchase

35,000 warrants of the Town of Peabody,

Massachusetts, in addition to 425,000 previously authorized, these warrants being due on
November 6th.
The following resolution covering
the separation and adjustment of any losses




• 0 •




in connection with the gold certificates making up the Gold Settlement Fund, was approved
by the Board.

It was directed that copies of

this resolution be sent to Federal reserve banks
and Federal reserve agents.
RESOLVED that the gold certificates
comprising the Federal Reserve Agents'
Fund and the Federal Reserve Banks' Fund
in the Gold Settlement Fund shall hereafter be separated so that certain certificates shall be credited to each
Fund by number and transfers made upon
the books of the Federal Reserve Board
by both numbers of certificates and
amounts in dollars, and
BE IT FURTHER RESOLVED that any
loss which may occur in the Gold Settlement Fund after My 15, 1916 shall
be charged against the Federal Reserve
Agents' Fund or the Federal Reserve
Banks' Fund accordingly as ownership
of the lost certificate shall by its
number be indicated on the books of
the Gold Settlement Fund.
Er. Warburg was requested to prepare
a letter to the Secretary of the Treasury, asking if it is not possible to issue the balance
of the 00,000,000 in bonds, wnich Federal reserve banks have been authorized to convert

into 3% bonds and notes, at this time rather
than on the next conversion date, October 1,
1916. Governor Hamlin called attention to
a letter prepared by Counsel to be sent to
Senator Owen and Representative Glass, calling attention to the provision in the proposed
conference report on the Rural Credits Bill
under which the bonds contemplated to be issued may be purchased by Federal reserve banks.
A motion by Governor Hamlin, that Counsel send
the letter to Senator Owen and Representative
Glass, amended in accordance with the suggestions of Mr. Warburg, was lost by a vote of
two to two, Mr. Hamlin being recorded in the
affirmative. Mr. Harding then moved reconsideration of the motion and that Counsel prepare
a letter to be signed by him when approved by
the Governor and Vice Governor to be sent to
Representative Glass only.




This motion pre-




valled..
Harding read. a letter on clearing
prepared
of

to be sent to Mr. F, W. Foote

attiosburg, Mississippi, a director of the

Federal Reserve Bank of Atlanta.
A memorandum prepared by Mr. Delano
in connection with the Investments of the Now
Orleans Branch of the Federal Reserve Bank of
Atlanta

read and the suggestion that no

further action in connection with the purchase
by the Branch bank of United States bonds be
now taken in view of the circumstances,
approved.
A report of the Committee on Audit
and Panmination, dated June 22, 1916

cover-

ing salaries of National bank examiners and
their approval by the Federal Reserve Board,
was road and on motion of Mr. Harding re o

ORD

mitted that the Committee mIcht consult with
Counsel for the Board.

A letter from the Federal Reserve
Agent at Atlanta in reply to the complaint of
Mr. W. J. Mitchell, Vice President of the Comnercial National Bank of New Orleans as to exchange charges by the New Orleans Branch, was
ordered to be answered, the reply to be submitted to Mr. Harding for his approval.
At 12:50 p. m. the Board adjourned
to meet at 11:00 a. m., on Tuesday, June 27.




Secretary.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102