Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, March 14, 1919, Volume 6, Part 1

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19

At a meeting of the Executive Committee of the
Federal Reserve Board held in the office of the Board on
March 14, 1919, at 11 A.M.,
PRESENT: The
Mr.
Mr.
Mr.

Governor
Hamlin
Williams
Broderick, secretary.

Business was presented and disposed of as follows:
Memorandum from General Counsel dated 'March 13th,
regarding the pi.oposed sale of equipment of the Division of
Foreign Exchange.
General Counsel having stated that he
knew of no law prohibiting the sale of the
equipment and supplies in question, the sale
thereof was authorized by the 'Board.
Memorandum by General Counsel dated March 13th,
regarding the application of the Army rational Bank of
Schofield Barracks, Hawaii, for trustee powers.
General Counsel having stated that there
appears to be no legal objection to granting
the application, same was referred to the
Board's sub-committee for the usual memorandum
and recommendation.
Letter dated March 12th from Deputy Governor Case,
Federal Reserve Bank of Eew iork, regarding the operations
of National banks in his district, Which are members of the
Witham System.




Read and noted.
Letter dated March 10th from Mr. W. . Ramsey,

- 91
1

e
Chairman of the Board of Directors of the Federal Reserv
the
Bank of Dallas, enclosing minutes of the meeting of
Board held on March 6th.
Noted.
Letter dated March 10th from Mr. W. F. Ramsey, Chairman of the Board of Directors of the Federal Reserve Bank
of Ir.
of-Dallas, again recommending increase in the salary
the
W. P. Clark, Chief Clerk of the Auditing Department of
- 125 to 4150 per month.
El Paso Branch, from 3
Approved.
Telegram from Federal Reserve Agent Ramsey at Dallas,
reporting defalcation by subordinate employee of the El Paso
Branch, aggregating from 4a,000 to ;;5,000.
Read and noted.
Application of the Seattle rational Bank, Seattle,
the
Washington, for permission to invest $70,000 in stock of
American Foreign Banking Corporation.
Approved.
Letter dated :arch 5th from Mr. S. G. Sargent, Chief
Examiner, Federal Reserve Bank of San Francisco, enclosing
correspondence with the Bank of Rosalia regarding their
method of handling their customers' Liberty bonds.




Referred to the Secretary for reply.

-3Memorandum from the Department of State dated March
10th, enclosing copy of communication from the Legation of
r
the United States at The Hague, Netherlands, dated Decembe
the
26, 1916, regarding the floating of a large loan in
efUnited States, Denmark, Switzerland, and Holland, in an
fort to avoid the menace of severe economic policy on the
part of Belgium, France and England.
Read and noted.
Memorandum from General Counsel dated March 11th,
in regard to proposed amendment to the Negotiable Instruments
Law in re notice of defect.
Read and noted.
Memorandum by General Counsel dated :Larch 11th, with
reference to the right of a Federal Reserve bank to count as
reserve earmarked gold held by such bank in a foreign agency,
together with complete file of correspondence relating to
the Bank of England transaction.
head and noted.
Memorandum by General Counsel dated March 12th, regarding the Denby Bill, providing for Federal incorporation
of companies engaged in foreign trade.




Referred to Mr. Hamlin.
The Governor reported the purchase on March 13th, of

-4States
special 2;,; certificate of indebtedness of the United
for
for500,000 for the Federal Reserve Bank of Atlanta,
.
deposit with the Comptroller of the Currency as collateral
for Federal Reserve bank notes.
Approved.
Reports of discount rates at Federal Reserve banks;
no changes recommended.
Noted.
The Governor reported the following rediscount
transactions, pursuant to authority heretofore vested in him:




March 13th, by the Federal Reserve Bank
Louis for the Federal Reserve Bank of
$t.
of
Richmond, 2,500,000 member bank eleven to
fifteen day collateral notes securedby Government obligations; rate 4%.
March 13th, by the Federal Reserve Bank
of Kansas City for the Federal Reserve Bank
of Richmond, .:;2,500,000 member bank eleven to
fifteen day collateral notes secured by Government obligations; rate L*.
March 13th, by the Federal Reserve
of Chicago for the Federal Reserve Bank
Richmond, $5,000,000 member bank eleven
fifteen day collateral notes secured by
ernment obligations; rate 4;;.

Bank
of
to
Gov-

March 13th, by the Federal Reserve Bank
of Chicago for the Federal Reserve Bank of
Dallas, i";5,000,000 member bank fifteen day
collateral notes secured by Government obligations; rate 4.
March 13th, by the Federal Reserve Bank

197

-bof Chicago for the Federal Reserve Bank of
Philadelphia, 45,00u,000 member bank fifteen
day collateral notes secured by Government
obligations; rate 4.
March 13th, by the Federal Reserve Bank
of Minneapolis for the Federal Reserve Bank
en
of Philadelphia, i'5,000,000 member bank fifte
obliday promissory notes secured by Government
gations; rate 470.
March 13th, by the Federal Reserve Bank
New
of Chicago from the Federal Reserve Bank of
tanaccep
rs'
York, purchase of :120,000,000 banke
y
thirt
for
ces maturing within CO days; rate iti;
sixty
to
day paper, and 4-1/8:i; for thirty-one
day paper.
Koted.
of
Draft of letter by the Governor to the Chairman
ve bank, forthe Board of Directors of each Federal Reser
between
warding copy of correspondence dated March 13th,
al Reserve
the Director General of Railroads and the Feder
Reserve banks
Board, regarding the rediscounting by Federal
tion.
of trade acceptances of the Railroad Administra
Read and approved.
n on applicaReport dated March 14th, recommending actio
forth in
set
as
s
tions for fiduciary power
date.
this
of
as
the auxiliary minute book
Approved.
Application of the Merchants and Farmers Bank of
to exercise
Charlotte, North Carolina, for permission
fiduciary powers.




-6It appears from the report of the Comis
mittee that the only criticism of tnis bank
est,
inter
el;
and
Teo
ing
charg
is
the fact that it
6.
is
ina
Carol
Vorth
in
rate
whereas the legal
it
During the discussion as to whether or not
ams
Willi
Mr.
s,
power
ee
trust
ed
should be grant
apto
voted
was
It
ng.
meeti
withdrew from the
n.
catio
prove the appli
changes in stock
Reports (2) dated March 13th, recommending
forth in the
set
as
banks
ve
Reser
at Federal
date.
this
of
as
book
e
minut
auxiliary
Approved.
of
Letter dated March 11th from the Comptroller
of,..;1,08o per
the Currency, requesting approval of salary
Federal Reserve
annum for Miss Martha J. Lartin, Clerk in the
Issue and .Redemption Division.
Approved.
Application of the Fifth Avenue Bank of rew York
exchange up
for permission to accept drafts and bills of
the provisions of
to 100,.; of its capital and surplus, under
section 13.




Approved.
At 11:55 A.M., the meeting adjourned.