Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, March 24, 1920, Volume 7, Part 2

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At a meeting of the Federal Reserve Board held in
the office of the Board on
PRESENT: The
Mr.
Yr.
Mr.
Mr.

eduesday, March

24,

1920,-at 11 A.M.,

Governor
Miller
Hamlin
1..oehlenpah
Chapman, Secretary.

PRESENT ALSO:
Mr. Harrison, General Counsel.
Minutes of the meeting of the Board held Larch 23d
were read, and on motion approved as amended.
Business was presented and disposed of as follows:
Memorandum by Mr. Emerson dated March 24th in re effect
of the Mew York .3tate daylight saving law on inter-Federal reserve bank transactions.
Voted that the Governor be authorised to
inform the Federal Reserve Bank of 1;e17 York that
the Board sees no objection to its observing
the working hours prescribed in the New York
State daylight saving law, with the understrinding that arrangements will be made to have the
necessary officers and employees of the Bank remain on duty each day until the close of the
inter-Federal reserve bank transactions.
The Governor read a letter addressed to the Secretary
of the Treasury, dated March 22d, by Mr. George Foster Peabody,
a director, of the Federal reserve Bank of 1:ew York, suggesting
the addition of two deputy governors to the staff of that Bank,
and increases in salaries of the present deputy governors.

The

Governor stated that the Secretary of the Treasury desired an
expression of the Board's views upon Mr. Peabodrs suggestion.




The Governor was authorized to say to
the („:ecretary of the Treasury that it is the
Board's view that there should be one or two
additional Deputy Governors of the Federal
reserve Bank of New York, but that the Board
does not believe it is necessary in order to
secure the services of suitable men to go into
the ranks of banit -presidents, believing that
younger men could be obtained at moderate salaries, even though it might be necessary to secure such men outside of Nev: York City, and to
inform the 3ecretary of the Treasury that it
is the view of the Board that no adjustment
should be made in the salary of Acting Governor
Case pending a permanent settlement of the governorship of the Bank.
Letter dated :.:arch 15th from Deputy Governor Talley of
Bank
the Federal reserve Bank of Dallas, advising that that
s of a branch
had arranged for the establishment on its premise
provide space
post office, upon the agreement of the Bank to
together with
and equipment therefor at Lt cost of •1,466.36;
ding approvmemorandum by r.r. 7merson dated rarch 23d recommen
al of such expenditure.
Approved.
Letter dated March 19th from the Acting Director of
has received
the Division of Foreign 1Th:change, advising that he
exportsettlement from the three foreign'bomking corporations
Board, coving silver: to the Orient under agreement with the
silver dolering the first shipment of three million standard
.18.
1
lars, such settlement being in the sum of ,15,304




Voted that the Federal reserve Bank of New
York be instructed to make no distribution of these
profits until a larger sum shall have been accumulated and until all expenses chargeable to such transted.
action shall have been ascertained and liquida

-3-

The Governor reported the reserve positions of thI severe.1 Federal Reserve banks as at close of busIness March 22nd,
and the status of rediscounts between Federal Reserve banks az
_

of the same date.
Letter dated March 22nd from the Chairman of the Federal
Reserve Bank of Richmond requesting ar-roval of the following salaries of employees of that "hank;
771-T..nit: Tr. Pro:ilea,
7. A. Latlit,
D. M. Hale,

4-1 f-lo
2,500
3,000.

Approved.
BEMRT•`1 077. C0mUP-077 ra. 1:
patea March 24th,

reeoinmending adulazion of State institutions
as net forth in the auxiliary minute book
as of this data, subject to the conditions
stated in the Individual reports attached to
each application.

Dated March 23rd,

recomwending approval of application of
T. A. Chancellor for authority to serve at
the same time as officer of the First National
Bank, St. 7etlreburg, Fla. and director of the
Citizens-American Bank & Trust Co., Tampa, Fla.
Approved.

Dated March 23d,

Dated 7:arch




23a,

recommandine approval of a2pliaation of
E. K. ThurrIond for authority to serve at
the same time as a director of the American
National Bank, Oklahoma City, Oklahoma, the
First National Bank, Sayre, Oklahoma, and
the First National Bank, Friek, Oklahoma.
A.p.droved.
recommending approval of application uf
J. M. Berry for authority to serve at the

.64

1-1,ce tirLe as a airector of the Central
1,Oklrihmr3, and
rational Eank of
Yati;,.r,d
Eank, Broken ArroN,
.Jitizens
thr..
.A.froved.
7, te1 2,11rh 23,1,

re‘xl:zr,-3ndin:7 a
of upplication of •
t.wv.eat
iioity
J. 7. Cros-bio for
4.$7•
1inie
a
director
85ilte
Csritral
the
Nat_
1 :link,
14,tioniAl 'Bank of
,rcvad.

Othc!r busin

- ,I.1nted anl dispo4 of az

Tha Oovcrnor sto.t1 that hs ,4as in ript of z.1 telegram from the .Cuvnor,
that thl 'Toarl r,.:!,celve. a copitt.,]!

of
t..2 that

April 3d for the purp:,7,3 uf conid2ring thl bil of the 7.4(3e
!
niltruction of the
A. Fuller Company for th,.!
a

in,„-; of that B,!.ng,c.
The Ouvernor wae authorized to advice
Millr that the date mentioned woos
agrable to the 3oard.,
The Governor stated that Congrenr,man !vans of Nebranka
.
71a1 aTtioel him that a delegation of YobrAiika bankers dosire;,
to come to Washington on April 38th for further dis-cutlaion of
the par clearing volition, and that the d1sow3ion would probably
take two ,Ilys; that he hal alvlsed Congressman INana that the
'Board would be agreeable to settince: aold,1 April 28th anl 29th




the 111.)raska

of hearin

by ra:lity 7-L)varnor

The quvernor real

Razisrif373Ls.ril.c.. of Richmond

Pop1,3 of th::,

t:irchan'es in a letter pr
Cha 1mr2n

el to 'be

60.7n1:,

rzuggeo t
by tha.7...:ard to

;7.11. v

t of tho

uii t

in regard to the par c,ollecticn systcm.
thori:v1,1 to
7ot:e1 that th%vernor be
r such.
7latt
letter
to
propol
rcise the
Way az 111 may deem proper to ineurperate certain
by
of the 3u7;,?3tione
7.arrison joined the 112at1nc71

;At thi t3

Ir. Tin nt1t1 that he had discussed with the
7.enara1 Counsel of

he Amrioan Te1aFhorL3 •

in. rew York on Monday last,.the

Telegraph CompanI

ion of a r4..?neNal of the

contract for the basol tole7,raph wire system, and that he
ast3ura1. by that officarthat if the renew4 .0ontract were
IvAl in the name of the 7blara1 Reserve Boar' , rather than
the

ir

name of the Federal Reserva "Bank of Chcfvo az at preuent,

the t?lephore and telegraph cwpany would make the renewal..on
the basis of the present rates.
The Chairmrr of the Law Committee submitted. for approval,•
draSt of resulatiorit;covorrinc th.3 organization and otbration of
corportions under Section I.5(L) of the Teleral Peuerve Act,
krown as the "7.7.1ge Act"




the proi:osed regulations havin7 hereto-

1
-6fore been submitted to the -embers of the Board individually
:()/- study.
Approved and ordered printed with fOrms
proposed by General Counsel.
Memorandum b; Mr. Paddock of March 23d, analyzing report of examination of the Federal Peserve Bank of Cleveland
as of the close of business February 14, 1S20.
Ordered circulated with the report of examination.
On motion duly seconded, it was voted that the Law
Committee be requested to submit to the Board for its consideration, regulations of the Federal Reserve Board to supersede
A

tLe regulations of 1917 now in force.
The Governor stated that he had a conference with
Director Scott of the Federal Reserve Lank of Dallas, and requested authority of the Board to write a letter to the Chairman of that Bank, instructing him to appoint a committee of
three directors of the Bank to consider and recommend to the
Board, changes in the organization of the Bank upon the understanding that neither the Chairman nor, the Governor of the
Ban't shall be appointed to such committee.
Approved.
At 12-30 P.M., the meeting adjourned.

Approved:




Secretary.