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186
A rmetin.; of the Federal Reserve Board vras hold in the
office of the Board on Thursday. March 3, 1921. at 11:15 a.m.
PB2SZET: Governor Harding
Mr. 'Platt
Marnlin
• Mr. Miller
Mr. Wills
Mr. Hoxton, f:',ecretary.
17117.072TT ALSO:
Lon, General Counsel.
Minutes of the meetin7 of the Board held. March 2d were read
a/Y-1 on motion, approved, as amended.
The Governor reported the reserve positions of the several
?ederal Reserve banks as at close of business March
1st, and the
Status of rediscounts between tile Federal Reserve banks as of
the
same date.
Governor TT:rdia7 advised the I'eani. that he had yesterday
aubThitted to Mr. 7roor-e L. Harrison, De L)uty Governor of the Federal Reserve Bank o
--cw York, the various letters addressed hr the
C°111Ptroller of the Currency to the Federal Reserve Board wherein
references were node to the Federal Reservo Bank of I'm York. and
to Trember banks in :Tay York City, and reauested that the officers
().2 the Federal Reserve 7),,nk of -ow York carefully read the said
l otters and
prepare a statement for the Federal Reserve Board in
resPeet thereto.
Governor TTi-xdin(-,. jated that he had included.
0111°114-" the letters delivered to ::r.Harrison Pie letter regardinc7 the
.ranty Trust Company, written by the Comptroller
of 'no Currency
187
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and filed with the Board wsterday, at which tins the Comptroller
Of the Currency suggested that the letter be filed and not read at
the ii. eting.
Governor Harding further stated that he held receipts
executed by Er. Harrison for all letters aforesaid.
Letter dated Febrmry 28th, from Mr. Dnerson, submitting a
coPy of a circular which is being sent out by the Pinkerton rational Detective Agency to its clients relative to the organization of
the producers
Consunnrs Cooperative Bank by organized labor.
roted.
Letter dated February 28th, from the Consulting Architect,
ise?lying to Governor Harding's letter of February 25th, relative to
certain patent rights in connection with the recent vault tests,
ca1d reqtusting the Board's authority for the payment of a fee of
1382.80 to a patent attorney.
Referred to General Counsel, with the understaiding that the fees referred to will be paid
if the ratter be found to be in proper shape.
With reference to a recent letter received from the Fed'al Reserve Agent at Chicago, conimenting upon the reports received
by iTational bank examiners, Governor Harding was requested to prepare a letter to all Federal Reserve Agents, =king inquiry as to
the frequency of rational Bank examinations, as to their efficiency
and sufficiency and as to their value to the several Federal Reserve
banks, and inquiring if the several Federal Reserve banks would prefer to have under their control the matter of the examination of
1Tatio nal b "as
Letter dated February 25th, from t
efQr,.7.1 Tecorvo
at Boston 7,:ith relation to the paper of commission -houses, and
re;-)lies to a questionnaire sent out -by the Federal "7
transmit
serve
of Boston.
su,7,-:ested that the Federal 7eserve
Lank of cv. York si;lould be requested to send out a
similar questionnaire, and the matter was referred
•
137,7- the Boa-d. to 7:r. Famlin.
Mr. Hnlin broirht up the ratter of the publication of the
Iflden ').1st
of the Federal Reserve bulletin, and su7ested that
3,000 co':)i.es of that work be ordered by the Federal reserve Board,
to be s
- old at a price of
each.
j,e:rOvod.
Letter dated Febr-,..ari 25th, frcrn the Cho. irmz.-',11. of the 7oard
O f ti( ?eaeral 7`cos,:....rve.7rrilk of i-7onsas City, express in; tbaly:Toval
•
c ers aul direcharc of that bank of the policy of apply-
. 0f the
Iiro:,i,:-ressive discount rates, and exivessin!77,tic disinclination
Of *L-c-J;
to discontinue such oolicy.
7.7o -bed,
Letter dated
Of
Of
P.esearch
th
t
fro:TI t o "Director of the -7)ivi sion
enciceh n
ai-roposed letter bo tie Cia 1r:7:an
7oard of t-hc- Federal 7.7 es(a.ve i3a2.17..:. of it.Louis, re..77.1-:U.n,:-.7 reonthe acceptree market in tl.:nt district at the request of
the Ln.-,or ican ...•".ccepth.nce Counc ii
Referred to Crovolilor araiea with oower. it bolaF
the sense of the meet la: that all such re:orts should
'be distributed tirouyil one channel, namely, the Division of Analysi s B ',Research,
189
Letter dated February 25th, from the Governor of tir Federal
Reserve i3ank of 7,ichmond, expressily; his views as to the acce.)tance
for discount by 2ederal Resrve banks of paper of non-rerrber -honks
Of ler od
for discount by member banks.
Referred to Governor kardUn
At this ooint, 12:15
for reply.
, Governor Strong, aC' the Federal
Reserve P,LInk of -cm, York, Governor T'orss
., of the Pedorc,1 Reserve
nallk of Boston, and hr. CtTtiss, Mlairman of the Board of the Tedoral Rescie Bank of Boston, entered the meeting.
Letter dated Vebruary 23d, from hr. -caul L. 77a,r'our ,;. with
reference to the su7gest ion that the T3orrd rule as eli7ible ler
PtIrchoze by Federal P.escxve honks, bankers accerytnnces covering
irloort and export transactions having mturit les u: t
six months.
Llso, with reference to the recent ruling of the Federal Reserve
?)eard requiring the presentation of original shipping document
as a condition precedent to the acceptance of drafts by member
banks.
Upon invitation of the Board, Governor Strong, Governor
riorss and hr. Curtiss expressed their VieWS upon the matters set
forth in 1:r. Warbur,3's 1 otter.
At this point, one o
Governor Strong withdrew from
the meeting.
Governor .1-orss -)resented to the Board the detailed account
of the incidents leading up to and subsequent to the failure of five
On-member trust companies in Boston.
190
B27ORTS OF COT:rITT= TO. 1:
Dat ed Tarch and. econiriondin chmi.cs in stock
ecleral P.ese'rye
3rd. Banks, as set forth in the auxiliary minute took
"
as of this date,
Beco n€nT1inr admission of State institutions as
set forth in the =Mary minute book as of
this date, subject to the individual reports
attached. to each application.
Approved.
Dated :.- L.,rch 3rd, 9eco'.aramding that authority be -;iveli to certain
-ational banks to purchase stock in corporations
organized under the :f.drse Act, as set forth in
the aizci. liary minute book as of this date.
A pre ved.
drovc,1 of the application of 7r.
Dated Larch ls t, Reco mend i
j. Harahan to serve at the sz,me time as director of the coal 5.- Iron Tational Bank of ,'ew
York City, and as director of the First Rational
Bank of Tne =mid, Va.
Awroved.
Dated,?eb. 11th,
25th,
26th,
2r ch 1st.
1.:anorindum dated Larch 2d, recomrnondin7 the errnlo:yment of
a temporary Telegraph Operator, at a salary of l65. oer month.
from April 1st to Auprust 30th, in order to )rovide a relief man to
permit the rc.:-,-ular operators to take their annual tvo weeks vacation.
Approved.
Letter ft ted. .7ebruary 14th, from the ''resident of the Indiana
tional 7/r.nk, IndianaT)olis. md., rrakinr; c.q2 -01ication in behalf of
t .at bank for permission to purchase 54 additional shares of stock of
the '111 cr c
?ore i711 Banking Coorat ion.
App xov ed..
Adjourned at 1:20 0.m., with the u.A.- orstandin7 that the meet1-11{ vaDuld reconvene at 3 otelock.t,is afternoon.
-6-
Lt 3:20 this L.f t erne on the me eti
members pisent 7:110 attoiled tho mor1in
ion Of -r.
tt.
meetin2, ui th the exceot-
qoverner St ronr. was also oresont.
lovernor
L7revjous11
rece avoned,, w ith those
stated. that in ace° rdanc e with the authority
nted, ID:7 the 7etz=:,,rd, hr. 7'orris liosl been a ooiuted
temporary man4rt 7or of the Credit Desrtment of that bank. at a salary
Of dq ,000 ;)er annum. and that it Ims the wish of the *e.de:,.t.,
.1 7eserve
2anaz of --ow York to yriko hr. -orris perranent manaeor of the Credit
pep artment, at a snl ry- of '12,000 per annum
L-mrov ed.
Letter dated hah 2d. from
r
il iams
quest 1011 out to him at the me °tin • .es terda:y-
in r e p 1,- to a
hr.
latt, with re-
lation to the exorciuntion of Tational hanks in -Tar York City, dur 1 ast .73pri rig mu between January 1st aril tluly 1. 1920.
Ordered filed, after a
l'Tar.
di n7.
over nor
At 3:50 p.m. the meetirip adjourned.
Se re tary.
@FedFRASER