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461 4.t a regular meeting of the Federal Reserve Board held in the office of the Governor at 11:20 A. M., on Monday, Larch 16, 191 FRa;LiLET: Ur. Harding, presiding, Ur. Warburg, Mr. Delano Willis, Secretary. Kr. Miller, The minutes of the meetin6 of the Board held on Larch 15 were read and, an motion, ar/proved. The minutes of the meeting of the Executive Committee held on Lrch 16 wore read and, on motion, approved, and the action therein set forth ratified. The minutes of the meetings of the Gold Export Committee held on March 16 and 18 'ere presented and, on motion, approved and the action therein set forth ratified. The minutes of the meeting of the C2ita1 Issues Committee held on March 13 v.ere presentei and, on motion, approved and the action therein 5et forth ratified. Mr. Harding read a draft of the letter to Mr. W. E. Frew authorized at tho Executive Committee meeting ot Saturday, March 16which was discussed. and, on motion, approved for transmission. On motion, Mr. Hamlin was authorized to accept an invitation to speak before the Texas Bankers Association at Galveston, on May 14, at the expense of the Board. The report of the examination of the Federal Reserve Bank of Richmond was read and, on motion, referred to the Richmond Committee. A draft of a proposed letter to Mr. N. U. Carpenter of the Citizens Bank of Portland, Oregon, road at the meeting of March 18, was presented, and referred back to Governor Harding. Mt. Harding presented business as follows: A letter from Governor Lynch of San Francisco, re arrest of Mr. D. C. Townley, which was read and noted. A letter from Federal Reserve Agent Rich, re the advance in interest rates and its probable result, read and noted. A letter from Federal Reserve Agent Rich, re the organization of savings departments in national banks, read and noted. At this point Mt. Williams entered the meeting. A letter from President I:vells of the First National Bala of Birmingham, re the organization of a proposed branch at that place, read and -discussed. A draft of a proposed amendment to the Federal Leserve Act, permitt:ng the paying out by any Federal Reserve bank of notes issued by any other Federal Reserve bank, was read, and it was ordered that a letter on the subject be transmitted t9 Chairman Glass of the House Banking and Currency Committee for consideration of the whole matter. A letter from Congressman Bacharach, re the prohibition of high interest rates paid by banks on deposits, was read and discussed, and it was voted to advise him that the Board is studying the situation and feels that the proposed plan would give the advantage to those who were charging irregular rates of interest on January 1, 1918. Telegrams from Federal Reserve Agent Ramsay (Dallas) re the directorate of the El Paso branch were read and it was ordered that a special order be docketed for Wednesday, March 20 as "Election of Directors, El Paso branch." A letter from Deputy Governor Treman of New York, re the erect of the military draft on the staffs of Federal Reserve banks, was read and referred to Mr. Harding. A letter from Federal Reserve Agent Ramsay (Dallas) enclosing a letter fran A. E. Upton of Denver, Colorado re capital requirements of member banks, was read and discussed. It was agreed that Mr. Harding discuss the 4uestion of admitting state banks of small Capitalization under specified conditions with Chairman Glass. A letter from :Ir. L;. Wilson, Director of the Liberty Loan Sales Committee, San Francisco, re sales of Treasury certificates in the Tweifth trict, ordered referred to Ur. L. B. Franklin. 4, A letter from Federal Reserve Agent Ramsay W.5.5 of Dallas transmitting the .1i:)plication of the First National Bank of Amarillo, Texas for power to act as agent in securing rediscounts was read and referred to Governor Harding for report on 71ednesday, • March 20. A letter addressed to Federal Reserve banks re the_ accepting or drafts on erroneous representatior,s as to export and import operations by member banks, drafted by Mr. Warburg, was read and ordered sent. A letter from Deputy Governor Treman re absorption of acceptances by Federal Reserve Banks, was read and it was agreed to discuss the matter with Governors of banks on Friday, March 22. A report of Committee No. 1 re the organization of Federal Leserve banks, accompanied by a proposed organization chart, was presented and discussed, and the matter was ordered presented to the Governors of banks at the conference of March 22. A memorandum of Counsel, re legislation to increase membership in the Federal heserve System, was presented and ordered redocketed for Wednesday, March 20th. Ur. Harding read to the Board a memorandum representing the substance of remarks to'be made by him at the dinner of the Southern Commercial Congress on the evening of Larch 18. • Reports of Committee No. I were presented and approved as follows: Dated March 18, recommending appointment of Miss A. E. ECkhardt (Division of Foreign 1:xchange) at 43,000 per annum, effective on assuming duty. 466 Dated March 16, recanmendir4:7 appointment of Mr, 2. B. Barrett as Cashier of the Cincinnati Branch at ',3,000 per annum, effective on assuming duty. 10, recommending the appointment of a male stenographer (Division of Audit and ''-yamination) at 1,200. Reports of Committee No. 2 were presented and approved as follows: Dated. March 15, recommending acceptance powers for the Merchants-Laclede National Bank of St. Louis, Missouri up to 100"; of capital and surplus. VI „15, remnmending the admission of the following state institutions *Upon conditions named by the committc,e in each cases Trust Compgny of New Jersey, Hoboken, N. J. 6 u slrires in the Federal :eserve Bank of Nov York. Depositors Savings & Trust Co., Akron, Ohio. 330 shares in the Federal Reserve Bank of Cleveland. Highland Park State Bank of Detroit, Detroit, Eich. 360 shares in the Federal Reserve Bank of Chicago. Security Bank, Iebster, So. Dakota. 32 shares in the Federal Reserve Bank of Minneapolis. First State Bt,,111 & Trust Co., Hereford, Texas. 45 shares in the Federal Reserve Bank of Dallas. Commercial Trust Co., of N. J., Jersey City, N. J. 1,500 shares in the Federal Reserve Bank of New York. Rittenhouse Trust Company, Philadelphia. 100 shares in the Federal Reserve Bank of l'hiladelphia. On motion, at 1:15 P. Ms, the Board adjourned. APPROVIO: Chairman
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