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was held in the office of the A II:looting of the Federal Reserve Board 2edera.1, ').eserve Board on Wednesday, ,lune 27th, at 11:00 a.m. PFESETTT: Governor Crissinger Yr. Platt Mr. Hamlin Mr. Miller Fr. James Mr. Cunningham 1,:r. Davies Mr. Holton, Secretary l Reserve "roard held on rune The minutes of the meeting of the Federa 26th were read and approved. proposed revised 'T-1,z2vs of the The Governor submitted a draft of the Board which after amendment were upon motion adopted. A copy of the new By- as a part of this Laws as adopted is filed in the office of the Secretary record. ar letter addressed to the Cloverrx)r The Governor submitted draft of circul tion "J", Series of Of all Federal Tieserve Banks, subject, "Amendments to Regula 192011, on, this circular After full di scussion and. some ilt erat, f being left thereo was approved, the release and transmission to the discretion of the Governor. of the Feeeral Reserve Bank Letter dated June 25th, from the Chairman Of ors declaring-, 7:.ew York, trvnsmitting the resolution of the Board of Direct The usual dividend for the six months' period enclinf; June 30, 1922. .i,pprov ed. an of the Federal Reserve Bank Letter dated June 25th, from the Chairm 01' of Directors declaring the "Richmond transmitting the resolution of the Foard usual dividend for the six months' period ending June 30, 1923. Approv ed. -2- 6/27/23 Draft of letter dated June 26th, prepared by General Counsel for the signature of the Governor addressed to the Under Secretary of the Treasury With reference to the contribution of funds by Federal Reserve Banks to defray expenses of Treasury Savings Sales Organizations. Approved. Letter dated June 25th, from the Federal Reserve Agent at PhiladelPhia, requesting the Board to reconsider its action taken at the meeting of June 19th, whereby the Board approved a salary of 02800 per annum for Paul H. Ailing, Chief of Business Reporting Division in lieu of a salary of ,;;3,000 reoommended by Mr. Austin. Upon motion, the Board declined to reconsider the action taken June 19th. Letter dated June 21st, from the Governor of the Federal Reserve Bank of Philadelphia replying to the Bo'Ird's letter of June 20th, and advising that the Board of Directors of that Bank desired the Federal Reserve Board to regard certain recommendations for salary adjustments submitted in Governor Norris' letter of June 15th as exoeptionA oases under the terms of the Board's circular letter of August 9, 1922, X-3500. Upon motion, the salary adjustentssubmitted in Governor Norris' letter of June 15th were approved. Letter dated June 26th, from the Seaboard National Bank of New York aPPlYing for permission to accept drafts drawn upon it by banks or bankers in foreign countries or dependencies or insular possessions of the United St3tes designated by the Federal Reserve Board for the purpose of furnishing dollar exohunge. Approved. -3- 6/27/23 or Crissinger by Mr. Paul Letter dated June 26th, addressed to Govern in the Island M. Warburg, with reference to a suggested Currency Association Of Cuba. Noted. of the Revised Regulations in Hamlin submitted a tentative dr._Ift Page proof form. and recomReferred to the Law Committee for report mendation. Secretary, Mr. J. P. Moore, Mr. Hamlin stated that he had granted his increase an increase in salary from 42900 to $3000, effective July 1, 1923, said of Members of the Board to allow being allowed to accordance with the custom up to a maximum their Secretaries an increase of 4100 for each year's service salary of $3,000 per annum. order would be the matter The Governor stated that the next thing in ed resolution with refdocketed under Unfinished Business, namely, the propos es at Havana, Cuba. erence to the establishment of Federal Reserve Bank Agenci resolution and Mr. Hamlin submitted the following moved its adoption: by virtue of the so"WHEREAS, the United States Government, ons with Cuba which called Platt amendment has entered into relati especially in matters it does not have with any other foreign country, States having been Of finance and currency, the currency of the United made legal tender by Cuba; of the opinion that the WHEREAS, The Federal Reserve Board is desirable as a means of stabilizestablishment of an agency in Cuba is te supply of clean curing banking conditions and furnishing an adequa rency; States and the State DepartWHEREAS, the President of the United important that such an agency ment have advised this Board that it is should be established; 6/27/23 -4- of Atlanta and the "WHEREAS, the Federal Reserve Bank petitioned the Federal Federal Reserve Bank of Boston have each an agency in Havana, Reserve Board for authority to establish tions permitted under Cuba, for the purpose of conducting opera Section 14 of the Federal Reserve Act; Boston desires to WHERAS, the Federal Reserve Bank of the purpose of buying and establish such an agency primarily for and collecting bankers' selling cable transfers and buying, selling ng satisfactory bank endorseacceptances and bills of exchange beari ments; the currency now in circuWHER1IkS, a substantial portion of ve notes of the Fedural Reslation in Cuba consists of Federal Reser establishment of an erve Bank of Atlanta; and it is feared that the Cuba might result in the agency of another Federal Reserve bank in n; and the Federal Reserve retirement of such notes from circulatio in Cuba primarily Bank of Atlanta desires to establish an agency Federal reserve in order that it may maintain the circulation of its notes in Cuba; of Boston does not desire WHEREAS, The Federal Reserve Bank but is willto put its Federal Reserve notes in circulation in Cuba to preserve as far ing, if authorized to establish such an agency, ve notes issued as possible the circulation in Cuba of Fe(,eiN1 Reser ta; through the Federal Reserve Bank of Atlan VE BOARD, that the appliRESER AL BE IT RESOLVED BY THE FEDER Atlanta and the Federal Reserve cations of the Federal Reserve Bank of such agencies are hereby Bank of Boston for permission to establish tions: granted on the following terms and condi Atlanta and the Federal Reserve of Bank (1) The Federal Reserve lish an agency in Havana, Bank of Boston are each authorized to estab and sell cable transfers; buy, sell Cuba, and through such agency to buy bills of exchange, which and collect prime bankers' acceptances and prime dollars, arise out of actual import acceptances and bills are payable in two or more responsible or export transactions, bear the signatures of t, have not more than 90 Parties, bear a satisfactory bank endorsemen are secured at the time of days to run, exclusive of days of grace, and the actual import or export and purcase by shipping documents evidencing ing title to such goods; the actual sale of goods and conveying or secur shall be necessary to the and to exercise only such incidental powers as "bills" as hereinafter used shall exercise of the above powers. The term s and bills of exchange of the mean cable transfers, bankers' acceptance kinds described in this paragraph. Atlanta SHALL NO2 BUY OR SELL (2) The Federal Reserve Bank of ST OF THE FEDERAL RESERVE BANK OF ANY CABLE TRANSFERS EXCEPT AT 2HE REJJE F, AND shall not purchase, sell or BOSTON AS PROVIDED IN PARAGRAPH 3 HEREO as originate in or are drawn upon collect any bills in Cuba except such Federal Reserve District and such banks or other drawees, in the Sixth the to purchase in order to maintain Other bills as it shall be necessary asing purch e befor notes in Cuba; and ciraulation of its Federal reserve drawees or drawn upon banks or other in, g natin in Cuba any bills not origi 6/27/23 District it shall first offer "in the Sixth Federal Reserve Reserve Bank of Boston bills to purchase for the Federal Reserve Bank of Boston. to be selected by the Federal of Boston shall not pay (3) The Federal Reserve Bank s in Cuba, except as hereinout its awn Federal Reserve note s OR CABLE TRAN52ED5 are after provided, and wherever bill Agency and the sellers reoffered for sale to its Havana notes, the Federal Reserve quest payment in Federal Reserve Federal Reserve Bank of Bank of Boston shall request the CABLE TRANSFEES for it Atlanta to purchase such bills OR Federal Reserve notes issued and immediately pay for them with of Atlanta. The Federal through the Federal Reserve Bank its option comply with such Reserve Bank of Atlanta may at if it purdases such bills request or decline to do so, but for them only with its own or CABLE TRANSeERS it shall pay AS MAY BE NMESSARY INCIFederal Reserve notes AND SUCH CASH SE AND shall immediately reDENTALLY TO COMPLETE THE PURCHA Bank of Boston at cost and sell them to the Federal Reserve ral Reserve Bank of Atlanta without recourse. If the Fede such bills promptly for the shall fail or refuse to purchase or shall not have available Federal Reserve Bank of Boston its awn Federal Reserve notes, in Havana a sufficient supply of on may itself purchase such the Federal Reserve Bank of Bost own Federal Reserve notes or bills and pay for them with its ency which it may have availin any other form of money or curr s issued through other Federal able except Federal Reserve note paragraph shall be construed Reserve banks. Nothing in this ral any way the right of the Fede as qualifying or limiting in cy agen such ugh hase bills thro Reserve Bank of Toston to purc its, cred book s, sfer tran ts, cable and pay for Viii= with bank draf s. note rve Rese with Federal or in any other manner except operation of ouch agencies, (And and t hmen blid (4) The astc l poAers through such agencies, shal the exercise of all the above ons Ilti regu and s rule and such further be subject to such changes . d may prescribe from time to time Boar rve as the Federal Rese right the rves rese y essl d expr (5) The Federal Reserve Boar such of nce inua cont time to the to revoke its consent at any inuance of such agencies OR TO cont .4is the agencies, to require its OF NEU ,A,ENCIES whenever in AUTHORIZE THE ESTABI.ISHMENT so. rable to do discretion it considers it desi above resoluMr. Hamlin's motion that the After discussion, the chair put tion be adopted. Carried. d as follows: Upon roll call, the Members vote " 4111 .f, -6- 6/27/23 Mr. Mr. Mr. Mr. Mr. Mr. Mr. Crissinger, "aye" Platt, "aye" Hamlin, "aye" Miller, "no" James, "aye" Cunningham, "aye" Dawes, "aye" Mr. Miller stated that he was in favor of a Cuban Agency, but objected to the resolution on the grounds that it contains no statement of agreement as to common operation by the Federal the agenReserve Banks of Atlanta and Boston and that it permits cies to deal in trade bills as well as bank bills. tal to the FedMr. Hamlin was requested to prepare a letter of transmit eral Reserve Banks of Atlanta and Boston and a press announcement for release this afternoon. Q. OF COMMITTEE NO. 1: state Recommending action on applications for admission of al individu the banks, subject to the conditions stated in the in forth set reports attached to the applications, as Auxiliary Minute Book of this date. Approved. approval of the application of Mr. Charles E. ding Recommen 'Dated June 26th, director Beury to serve at the same time as President and Vice as and hia., of the National Bank of North Philadelp both Company, Trust President and director of the 'loge of Philadelphia, Pa. Approved. William Joyce Dated June 26th, Recommending approval of the application of Mr. American National the of to serve at the same time as director York r-w of both Company, Bank and of the Metropolitan Trust Dated June 25th, June 25th, City. Dated June 26th, Dated June 26th, Approved. H. Peck Recommending approval of the application of Mr. Edwin of the director and t Presiden to serve at the same time as Vice 2rust Vernon Mount the Rye National Bank, Rye, N.Y. :aid of Company, Mount Bernon, N.Y. Approved. Recommending approval of the application of Mr. Charles W. of the National Reuter to serve at the same time as director President of and Bank of North Philadelphia and as director the Tioga Trust Company, both of Philadelphia, Pa. Approved. 6/27/23 Recommending approval of the application of Mr. John Y. Gilbert to serve at the same time as director of the National Bank of North Philadelphia and of the Tioga Trust Company, both of Philadelphia, Pa. Approved. Dated June 26th, Recommending approval of the application of Mr. 2. Charlton Henry to serve at the same time as director of the Market Street National Bank and ofmthe Pelham Trust Company, both of Philadelphia, Pa. Approved. Dated June 26th, Recommending approval of the applic.,tion of Mr. Fred 6pellisey to serve at the same time as director and cashier of the Market Street National Bank and as director of the chestnut Hill 2itle and 2rust Company, both of Philadelphia, Pa. Approved. Dated June 26th, Die meeting adjourned at 1:00 P.M. Seoret_lry, App roved:
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