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At a meeting of the Federal Reserve Board held in the office of the Board on Tuesday, March 2, 1920, at 11 A.M., PRESENT: The Mr. Mr. Mr. Mr. Mr. Mr. Governor Strauss Miller Hamlin Mbehlenpah Tallians . Chapmmi, Secretary. PRESENT ALSO: Mr. 1-Iarrison, General Counsel Mr. Paddock, Chief, Division of Operations and Examination. Minutes of meetings of the Board held on February 27th and 26th 'were read and on motion approved. Business was presented and disposed of as follows: On motion duly seconded, it was voted that the Law Committee instruct General Counsel to render an opinion as to certain phases of the Federal 7eserve Act relating to tho suspension of reserve requirements. Letter dated March 1st from the Acting Governor, Federal eserve Bank:of ITew York, submitting a report of Mr. 1, :enzel and Mr. Crane regarding the Argentine gold export movement for 1919 and 1920, and requesting an expression of the Board's views as to the Federal Reserve -Bank of New York: undertaking with Messrs. Kuhn, Loeb Company, certain transactions involving the shipment of gold from London to New York. -2- Ordered circulated. The Governor read letter dated March 1st from the Assistant Federal Reserve Agent at row York, making daily report of the business ana financial situation in raw York. The Governor reported the reserve -)ositions of the several Federal Reserve banks as at close of business February 20th, and the status of rediscounts between Federal Reserve banks as of the sL-,. .e date. The Governor reported rediscount transactions, nursuant to authority heretofore vested in him; member bank promissory notes secured by Government obliations, rate 4-3/4, on paper secured by certificates of indebtedness, and 5-1A7 on paoer secured by Liberty bonds and Victory notes, as follows: Date 13a nk Bealscounting l'eb.26th .ii1ade1piia. Viith (Cleveland Amount ;5,000,000 .. (Dallas Maturities 11-15 days 9,000,000 lkyted. The Governor reported rediscount transactions, pursuant to authority heretofore vested in him; member bank -promissory notes secured by Coverarlent obligations, rate r on paper secured by certificates of indebtedness, and 5-1X on paper -0_ secured by Liberty bonds and Victory notes, as follows: Bank .ediscourting Date March 1st With (Dallas Philadelphia..)I:ansas City CUinneapolis Amount 2,500,000 5,000,y00 4,500,000 Yaturities 11-15 days Noted. Memorandum by Mr. Smead dated February 28th, submitting table showing the average monthly number of member banks having deficient reserves, the amount of penalties (including interest assessed by the Federal Reserve banks), and the rate of penalty charged. Ordered that a copy be furnished to the Comptroller of the Currency, and that similar information be submitted to the Board monthly hereafter. Letter dated February 25th from the Acting Governor, Federal Eeserve Banh of New York, in reply to the Board's circular letter (;.-1837) of February 18th, transmitting comments f the Federal Advisory Council upon special rates for the rediscount of bankers' acceptances, and the policy that should be pursued at Federal Reserve banks having open market rates for such purchases. Noted. 1.1r. Miller moved that in view of the conditions existing in the Second Federal Reserve District, the Governor take irnmediate steps to secure the resignation of Mr. Benjamin strong -4as Governor of the Federal Reserve Bank of Kew York, and to auggest to the Board of Directors of that Bank that they proceed to fill the office of Governor of that Bank. Ordered laid .on the table. Letter dated February 26th from the Organization Counsel of the Federal Reserve Bank of New York, requesting the Board's views as to the holding in New York of a conference of representatives of Federal Reserve banks to discuss personnel and welfare questions. Referred to the Governor for negative reply. (At this point 1.-!r. 3trauss joined the meeting) Letter dated February 24th from the Federal Reserve Agent at Dallas, requesting approval of the appointment of H. T. Jernigan as an examiner of that Bank at a salary of $..3,600 per annum. Approved. Letter dated Larch 1st from the Federal Reserve Agent at Philadelphia, requesting approval of the following appointments in the department of examination at that Bank: Salary 42,600 per annum Maurice E. Reeve, and the desig2,000 William Welch, nation of Y.r.C.E.Wolfinger as Federal reserve rxaminer. Approved. Letter dated February 25th from Joseph Wayne, jr., • -5Chairman of the salary committee of the Board of Directors of the Federal Reserve Bank of Philadelphia, submitting for approval increases in salaries of junior officers of tnat Bank. Referred to Llr. Paddock for report. .1,etter dated February 28th from the Secretary of the Federal Reserve Bank of Chicago, submitting for approval, recommendation for the payment of additional compensation to employees of that Bank on Ldarch 1, 1920, for the first quarter of 1920. Referred to the 'secretary for report. Letter dated February 25th from the Chairman, Federal Reserve Bank of Dallas, in re compensation of Governor Van Zandt. Referred to Mr. Hoxton for re2ort. )licat,ions of the following banks for authority of their paid in capital and surplus, to accept up to 100 drafts and bills of exchange drawn upon them under the provisions of Section 13 of the Federal Reserve Act: Continental rational Bank, Kansas City, Lo. Lawrence National Bank, Lawrence, Yansas. Approved. REPORTJ OF CO2.11.11TTE O. 1: Dated :larch 2d, recormending admission of State institutiOqi as set forth in the auxiliary minute book -6as of this date, subject to the conditions stated in the individual reports attached to each application. Approved. Dated March 1st, recommending changes in stock at Federal Reserve banks as set forth in the auxiliary minute book as of this date. Approved. Dated March 1st, recommending approval of applications for fiduciary powers, as set forth in the auxiliary minute book as of this date. Approved. Dated Feb. 28th, recommending approval of salary of 02,400 per annum for Mr. Frank 7i. Shanley as National Bank Examiner in the Seventh Federal Reserve District. Approved. Dated Feb. 28th, recommending appointment of Mr. H. M. Cameron in the Division of Analysis and Research at salary of .1,500 per annum on a full time basis, with the understanding that he is to work on a three-fourths time basis. Approved. Dated March 1st, recommending increase in salary of Mr. George E. Good of the Board's Gold Settlement Division from 32,j00 to $2,250 per annum, effective March 1, 1920. Approved. (At this point 14r. Harrison joined the meeting) Other business was presented and disposed of as follows: Letter dated February 25th from Vice-President Sharp of the International Banking Corporation, requesting the Board to authorize the inclusion of documentary acceptances by commercial houses for the purpose of financing imports as liquid -7assets for reserves against acceptances. The Governor sub- mitted for approval reply by him dated ::arch 2d, and letter addressed by him to Hr. Kenzel, Controller of Investments of the Federal aoserve Lan:: of :Tau York, requesting recommendation in the premises. Approved. The Secretary stated that the volume of work in the Office of the Chief Clerk and Supply Agent had increased in such proportion that he deered it necessary to relieve Hr. Dela::ater, at present Chief Clerk and Supply Agent, of the duties of Su-oply Agent, and recommended that effective narch 15, 1920, Hr. C. E. Foulk, at Present Private Secretary to Hr. Hamlin, be transferred to the office of the Secretary with the designation of Supply Agent. Approved. A discussion ensued as to the Propriety of the Board making a statement in answer to the suggestion that has been made nublicly, that an embargo be imposed upon the export of (_;old from the United States. It was the sense of the majority of the Board that the opportune time to make public an expression of the Board's views in the premises would be presented when discount rates at Federal aeserve banks wore next increased. (At this point Mr. Paddock joined the meeting and made a statement of observations made by him upon his recent visits to the Federal -eserve Banks of Ch'moo, Minneapolis and 7ansas City). At 1-05 P.M., the reetirv- adjourned. Secretary.
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