The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
At a meeting- of the Federal Reserve Board held in the office of the Board on Friday, March 12, 1920, at 11 A.M., PRESENT: The Mr. Mr. Mr. Yr. Mr. Governor Strauss Miller Hamlin Williams Chapman, 3ecretary. Minutes of meeting of the Board held :March 10th were read, and on motion approved. Minutes of meeting of the Board held March 11th were read, and on motion apnroved as amended. Business was presented and disposed of as follows: Telegram dated .'arch 11th from the Governor, Federal Reserve Bank of Chicago, requesting that in view of the exnected demands upon that Institution in the near future, the Board endeavor to arrange that other Federal Reserve banks take over the ::20,000,000 of paper now carried by that Bank for account of the Federal Reserve Bank of New York. Referred to the Governor for reply. On motion duly seconded, it was voted that General Counsel be instructed to inform the Board as to the method of recording in the minutes of the Board's meetings a record of permissions granted to Federal Reserve banks, allowing 1 their reserves against deposit liabilities to fall below the minimum prescribed by law. -2- The Governor reported the reserve positions of the several Federal Reserve banks as at close of business March 10th, 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 5-1/27. on paper secured by Liberty bonds and Victory notes, and 5;,! on paper secured by certificates of indebtedness, as With Bank Rediscounting, Date Amount M,000,000 6,030,030 (Xansas City 5,000,000 (Dallas March 11th Maturities 11-15 days Noted. Letter dated March 9th from Controller of Investments Yenzel of the Federal Reserve Bank of New York, recommending that the Board do not approveas reserve against acceptances, acceptances of commercial houses as distinguished from bankers' acceptances. Approved, and ordered circulated. Letter dated March 6th from Assistant Federal Reserve Agent Sargent of the Federal Reserve Bank of San Francisco, submitting for approval, form of verification of loans and -3discounts to be used in connection with the examination by the examining department of that Bank of the United States National Bank and. the First National Bank, both of Vale, Oregon, Mr. Williams moved that it is the sense of the Board that Federal Reserve banks should send out an appropriate form to be filled out by borrowers of member banks which Federal Reserve banks may be examining, for the purpose of ascertaining whether or not loans claimed to be in such banks are genuine, in cases where such course appears desirable for the protection of the Bank. Motion lost. Voted that it is the opinion of the Board that under their power to examine member banks, Federal Reserve banks have the right to verify the loan accounts of such member banks. Voted further that the form of verification report submitted with Mr. 7argent's letter be approved. Voted further that in transmitting to the Federal Reserve Bank of San Francisco advice of the approval of the form, the Bank be advised that in approving the form, the Board expresses no opinion as to the advisability of its use in connection with examinations to be made of the two national banks mentioned 7,Ir. Sargent, as the Board in this respect is not in a position to judge. r-2ORTS OF c=ITTrE NO. 1: Dated March 12th; 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. Dated March llth, recommending ap7roval of applications for fiduciary powers, as set forth in the auxiliary minute book as of this date. APproved. Dated March 11th, recommending approval of application of Yr. H. A. Chetham to serve at the same time as a director of the First Yational Bank, St. Joseph, Mo., the Live Stock National Bank, Sioux City, Ia., and the National Stock Yards National Bank of National Stock Yards, Ill. Approved. Other business was presented and disposed of as follows: Letter dated March 11th from Acting Governor Case of the Federal Reserve Bank of New York, submitting for approval, proposed basis for settlement by that Bank with the United States Grain Corporation for the so-called German gold acquired by the Reserve bank from the Grain Corporation and held abroad. Approved, the Federal Reserve bank to be instructed that should it be decided to bring the gold to the United States, insurance covering such movement should be made in terms of dollars. At 1-15 P.M., the meeting adjourned. Secretary. Approved:
@FedFRASER