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At a meeting of the Federal Leserve Bbard held in the office of the Board on March 3, 1919, at 11 A.L., PRESENT: The Mr. Mr. Mr. Mr. Governor Miller Hamlin Tilliams Broderick, Secretary. Morning business was presented and disposed of as follows: The Governor reported the purchase of special 20 certificates of indebtedness of the United States for depopit with the Comptroller of the Currency as collateral for Federal Reserve bank notes, as follows: For Federal Reserve Bank Date Amount Feb.28, 1919 41,000,000 Boston 500,000 Feb.28, 1919 St. Louis 500,000 Yard, 1919 Kansas City 500,000 Mar.1, 1919 Philadelphia Approved. The Governor reported the following rediscount transaction pursuant to authority heretofore vested in him: March 1st, by the Federal Reserve Bank of Chicago for the Federal Reserve Bank of Dallas, 410,030,000 fifteen day member bank promissory notes secured by Government obligations: rate 4,O. Noted. Mr. Hamlin reported that he had prepared a draft of resolution upon the occasion of the resignation of Milton C. Elliott, Esq., as General Counsel of the Board. 154 -2On motion duly seconded, the following resolution was ordered spread upon the minutes and the Secretary was directed to transmit a copy thereof to Mr. Elliott. "RESOLVED: that the Federal Reserve Board hereby places upon record this expression of its regret at the resignation of Milton C. Elliott, Esq., as General Counsel of the Board, and its aporeciation of his industry, ability and valuable service while holding this office. "It is a source of satisfaction to the members that Mr. Elliott will be available as Consulting Counsel, so that the Board will continue to have the benefit of his judgment and experience.' Mr. Miller reported that he had visited New York and conferred with Mr. Jay concerning the recommendation that Ur. Shepard J. Morgan be appointed Assistant Federal Reserve Agent at New York at a salary of $9,000 per annum. He stated that he was not satisfied with the character of the work at present done by Mr. Major B. Foster, assistant to Mr. Jay without title, at a salary of 0,000 per annum, and recommended that, in view of existing circumstances, the Board do not approve a salary in excess of 4;7,500 per annum for Mr. Morgan if appointed. (Mr. Williams joined the meeting during the discussion of this matter). Voted that the Governor advise Mr. Jay that, in view of present conditions in his Department, the Board is unwilling to approve a salary in excess of $7,500 per annum for Mr. Morgan if appointed as Assistant Federal Reserve Agent at New York. Mr. Miller stated that when in New York he had not -3been able to see Mr. Trowbridge, Consulting Architect of the Federal Reserve Bank of New York because of latter's absence from city, to invite him to be present at the discussion by uovernors of Federal Reserve banks of the question of new bank buildings. Voted that the Governor extend such invitation to Mr. Trowbridge. Lotter dated March let from the Asia Banking Corporation, advising of its intention to establish branch offices at Hongkong and Canton, China. Noted. Letter dated February 28th from the National Park Bank of New York, applying for permission to invest not to exceed $1,125,000 in the stock of the Park-Union Foreign Banking Corporation. The Governor submitted for approval draft of reply by him, dated March 3d. Approved. Opinion of General Counsel dated March 3d, in re permission to certain directors of the National Park Bank to become directors of the Park-Union Foreign Banking Corporation. Approved. Opinion of Assistant Counsel Harrison dated February 27th, in re application of Lumbermens Trust Company, Port- -4land, Oregon, for membership in the Federal Reserve System. Approved. Opinion of Assistant Counsel Harrison, dated February 24th, in re security for drafts accepted by the American Foreign Banking Corporation, New York. Approved. Opinion of Assistant Counsel Harrison, dated February 24th, in re Section 11 (k) - deposit of securities with State officials by National banks exercising trust powers in Minnesota. Approved. Memorandum by General Counsel dated January 4th, in re domestic acceptances. Approved as submitted and ordered that date be changed to February 28th. Voted that copies of opinion be sent to the Governors of all Federal Reserve banks. Letter dated February 28th from the Federal Reserve Agent at Kansas City, advising that, through oversight, the salary of 11r. Phillips, Assistant Cashier and Manager of the Bond Department of the Federal Reserve Bank of Kansas City was fixed at $3,600 instead of4,000 per annum, beginning January 1, 1919, and requesting approval of the increase to 4,4,000, effective January 1, 1919. Approved. 157 -5Letter dated February 28th from the Federal Reserve Agent at Kansas City, advising that, through oversight, the Directors of the Federal Reserve Bank of Kansas City had neglected to appoint Counsel for the bank for the year 1919, and recommending approval of salary of 4150 per month for Mr. James E. Goodrich as Counsel of that Bank, effective January 1, 1919. Approved. The Governor stated that he desired to visit the Federal Reserve Bank of Philadelphia on Thursday, March 6th, at the expense of the Board. Approved. REPORTS OF COMTTEE NO. 1: Dated March 3d, recommending admission of State institutions as set forth in the auxiliary minute book as of this date, subject to the conditions stated in the individual reports attached to each application. Approved. Dated March 1st and 3d, (3 reports) recommending changes in stock at Federal Reserve banks as set forth in the auxiliary minute book as of this date. Approved. Dated February 24th, recommending salary of 0,900 per annum for Kinzie 3. Cecil, National Bank F,YAminer in Third Federal Reserve District. Approved. Dated February 24th, recommending salary of 4$2,400 per annum for John N. Barrett, rational Bank i:Acaminer in Federal Reserve District ro. 3. Approved. Other business was presented and disposed of as follows: The Governor submitted for approval draft of telegram prepared by him to advise Federal Reserve Banks to transfer to surplus account the amounts now held by them as reserves for franchise tax, such telegram not to be sent, however, until the Board is advised of the signing by the President of the bill making such transfers legal. Approved. Letter dated February 28th from the Federal Reserve Agent at Cleveland, requesting formal approval of the Board of the purchase by the Federal Reserve Bank of Cleveland of the property of the 'Ik:asonic Temple Association at a price, including commissions, not to exceed 4875,000. Voted that the purchase by the Federal Reserve Bank of Cleveland of the so-called Masonic property at Cleveland, Ohio, area 29,870 square feet, at a price, including commissions, not to exceed T875,000, with the condition that the Masonic.Fraternity will be permitted to occupy the upper floors of the building now on the lot up to January 1, 1921, without cost, be approved. The Governor submitted for approval draft of tele- -7gram dated March 3d, to be sent to all Federal Reserve Agents and Governors of Federal Reserve banks, in re availability of proceeds of bankers acceptances. Approved. Letter dated February 28th from the Federal Reserve Agent at Kansas City, in re resignation of Mr. Arch W. Anderson, Secretary-Cashier, and the appointment of junior officers of the Federal Reserve Bank of Kansas City. Noted. Letter dated February 28th from the Federal Reserve Agent at Kansas City, suggesting that he be permitted to defer the inauguration of his caapaign for additional State bank members. Approved. Letter dated February 27th from the Federal Reserve Agent at Chicago, in re campaign for additional State bank members. Referred to the Governor and Secretary. Letter dated February 27th from the Federal Reserve Agent at Dallas, in re campaign for additional State bank members. Referred to the Governor and Secretary. Letter dated February. 28th from the Federal Reserve 160 -8Agent at Chicago, transmitting copy of letter addressed by his Bank to the Postmaster General. Referred to the Governor for reply. The minutes of the meeting of the Board held on February 26th were read and on motion approved as amended. The minutes of the meeting of thexecutive Committee held on February 28th were read and on motion approved. The minutes of the meetings of the Gold Export Committee held on February 26th, 27th, 28th and March 1st, were presented and approved, and the action therein set forth ratified. The Governor reported the reserve positions of the several Federal Reserve banks. At 12:30 P.M., the meeting adjourned. Secretary. Approved:
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