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2:30 At a regular meeting of the Federal Reserve Board held in the offiCe of the Board on Tuesday, Larch 16, at 11.15 a. m. PRESENT: Mr. Delano, presiding, 'Mr. Harding Mr. Williams Mr. Miller Mr. Warburg Er. Willis, Secretary. The minutes of the meeting of 11.15 a. m. Monday, Larch 15th, were read and approved. . Mr. Miller moved that it be the sense of the Board that such State banks as would add to the strength of the syss tem should be encouraged to avail themselves of the privilege of membership in the Federal Reserve system. Experience having demonstrated that 3Late banks were reluctant to enter the tern until assured that they can legally withdraw under such Board reasonable and proper restrictions as the Federal Reserve may see fit to impose, Mr. Miller further moved that the Ownlegal mittee on State Banks be instructed to secure competent opinion and advise the Board whether some method cannot be devised under the law whereby state banks which enter the 575t64 may be given the right of withdrawing. After discussion the motion prevailed. 231 Mr. =ler read to the Board a form of lette'r intended as instructions to Federal reserve agents. On motion, the draft was adoi:ted.and the Secretary of the Board was instructed to send out a letter addressed to each Federal Reserve agent embodying the substance of the draft, such letter to be signed by the Governor and Secretary of the Board. The Secretary of the Board presented applications for the exercise of the power of executor, trustee, etc., duly approved by 1:r. Harding and the office of the Comptroller of the Currency, as follows: First National Bank Second National Bank First National Bank Middletown ilational Bank Union Market National Manufacturers National Virginia National City National Bank National Bank of Wallingford, Conn. New Haven, Conn. Concord, N. Middletown, Conn. 7atertown, Waterbury, Conn. l'etersburg, Va. Knoxville, Tenn. Danville, 7a. On motion the applications aforesaid were laid on the table until further orders. Applications for the exercise of executor and trustee, powers approved by Counsel and by La% Harding, were referred to the office of the Comptroller of the Currency with request for report. On motion, the alTlicati)n of the Federal Reserve 232 ,Bank of Richmond, Va. for Federal reserve notes, duly . recommended by the Committee on Issue and Redemption, was approved as follows: Ton dollar denominations Twenty dollar denominations .200,000 240,000 On motion, the application of the 'Federal Reserve Bank of 7ew York for Federal' reserve notes, duly recommended by the Committee on Issue and Redemption, was approved as follows: Five dollar denominations ft Ten 111". .)1,000,000 1,000,000 Miller gave formal notice to the Board of his Intended absence from the City of two weeks Or more and on motion, the Board expressed approval of his action. On motion, the following resolution was adopted: The Board being in receipt of a letter from the desire Secretary of the Treasury stating that he does not under to stand in the way of a decision on the subjects review in the matter of redistricting and, although besettlement lieving that these questions are pressing for and should be concluded, has determined that under the circumstances of the Secretary's illness and the prospective absence of two other menbers, that no vote on these questions be taken before April 15th, but that thereafter they be disposed of by definite action as soon as practicable. The Secretary of the Board was instructed to maim all informal statement covering the substance of this resolution for the press. 233 The question of anproving the minutes of the Board held at 3.00 p. in. March tenth having been brouL:ht up, it was voted after discussion that the aforesaid minutes be approved in skeleton form, all references to discussion of the subjects then under advisement, and all statements of the rosition assumed by different members of the Board being eliminated from the minutes proper, such stateents, however, to be filed, if requested by members with all other - ertinent documents bearing upon the (1.uestion of rates for rediscounts between Federal reserve banks, as an addendum to the minutes of that date. The question of acceptances in trade between two forein countries, brought uy) in connection with an application from the National Park Bank of New York city, was laid on the table pending a larger attendance ui)on the Boar meeting. Jonsideration of the motion offered by 7illiams at the meeting of March fifteenth and then laid on the table recurring, . Miller offered the following substitute for the aforesaid motion: R-22)LVTLD, That it is the sense of this Board that the Federal reserve banks should immediately consider and advise this Board whether, and if so how far, in their judgment, they may with propriety and discretion assist the efforts of the National bank members in 234 their resrective districts, to secure the enactment of such legislation as may be necessary to remove the restrictions which now prevent the Federal Reserve Board from conferring upon National banks in certain states the right to act as executor, trustee, registrar, etc. Mr. Williams having accepted the substitute, after discussion the motion was carried, Mr. Warburg being recorded in the negative. The subject of admission of 3tate banks to the 2ederal reserve system having been called up, Lr. Miler asked to be recorded, in view of his aporoaching departure, as desiring to express his opinion to the effect that everything that could reasonably be done to expedite the settlement of the ouestion and the early admission of 3tate banks into the system, should be undertaken. The subject was laid on the table lending the attendance of a larger number of members. The secretary of the Board presented a form of pernit executor to National Ban1,:s to exercise the functions of trustee, Jounsel and the like, the same having been duly aprroved by the and by Harding. printed The 3ecretary was directed to have as many copies of the said form as might be considered necessa A letter from President J. T. lerry of the Southwest .ansas Jity, National Bank of jo!,-lerce, ' asking for an Wc- pression of the Board's wish with reference to the exercise of trustee powers having been read, the Secretary was directed t° 235 write a general reply to the effect that the Board did not care to ask any particular institution to assume the powers in ouestion, but would be glad to consider each application on its merits. In answer to a letter from Federal Reserve Agent Ingle as to Vie imposition of a penalty for deficiency in reserve, the Secretary was directed to say that the mater was left in the hands of the several Federal reserve banks for recommendation and that up to date it had been deemed inadvisable to do anything of the sort. Documents relating to the conditions under which Federal Reserve notes are issued were laid on the table for the present. In answer to an invitation from the Southern Commercial Congress and another from the Wholesale Grocers Association, for addresses by members of the Board before their organizations, the Secret-.ry was directed to send declinations wdith regrets. The application of the Trust Companies Magazine for °Pinions of Counsel of various Federal reserve banks relative to the exercise of trust company powers, was ordered declined. Federal Reserve Agent Perrin's report on the *California savings bank situation was presented to the Board and ordered circulated. The Chapman plan for the clearance of checks, referred to the Board by Mr. Hamlin, was ordered to be sent the Committe e on Clearahce. On motion, at 1.15 p. m. the Board adjourned to meet Wednesday /larch 17th at 11. a. m. Chairman.)
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