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176 At a regular meeting of the Federal Reserve Board held in the office of the Board at 11.15 a. in. on Thursday, March 4, PRESENT: Er. Hamlin, presiding, Er. Harding Er. Delano Er. Miller Er. Warburg Er. Willis, Secretary. The minutes of the meeting of 11.00 a: in. Tuesday March 2, were read and approved. certain The minutes of the informal conference with Governors of Reserve Banks held at 3.45 p. in. on Tuesday, March 2d and 12.15 a. in. Wednesday, March 3d were referred to Mr. Delano as a Committee to examine and report on the same. The Board discussed the question of discount rates between Federal Reserve banks and considered the proposals to name the same rate between Federal Reserve banks which rediscount prevails at the rediscounting bank at the time the is made; and as an alternative, to set the whole subject as a special order for Monday. , Larch 8th. It was finally agreed that no action be taken until a full meeting of the Board prepared could be obtained, memoranda in the meantime to be by Mr. Harding with reference to the various plans that have been suggested for disposing of the situation. The Governor of the Board read a letter from Assistant Secretary Malburn notifying the Board that Congress had provided for the expenses of converting bonds and notes as provided by law, into long term bonds. On motion this letter was referred to the Committee on Legal Matters, Governor Hamlin, Chairman. The subject of redistricting appeals was taken up for discussion, and L:r. Miller moved that Mr. Warburg and Delano constitute a committee to look into the :Tow Jersey appeal; Mr. Miller and Mr. Harding to look into the appeal affecting the counties of Wetzel and Tyler (West Virginia); Mr. Delano and Mr. Miller to look into the :Tebraska-Wyoming cases; all to report to the Board on redistricting in these cases as early as possible, and preferably on Tuesday, March 9th. On motion it was voted that the Governor proceed to the preparation of a statement for presentation of the case relating to powers of the Board in redistricting, for transmission to the Attorney General of the United States, asking an expression of opinion as to the power of the Board regarding the review of the work done by the Organization Committee, the readjustment of boundaries and the redistricting of the country. The Secretary was ordered to transmit to the Corn- 178 mittees dealing with the redistricting question, the stenographic testimony taken in the hearings. On motion a rate of rediscount named by the Federal Reserve Bank of an Francisco was approved as follows: For bankers acceptances 2 to 4% An application of Federal Reserve Agent Curtiss for the issue of Federal reserve notes, duly recommended by the Committee on Issue and Redemption was approved, as follows: ;720,000 760,000 720,000 400,000 400,000 Five dollars Ten dollars Twenty dollars Fifty dollars One hundred dollars ,„13,000,000 On motion, the application of the First National Bank of Montgomery, Ala., for power to exercise the functions of EIxecutor, trustee, etc., duly recommended by Counsel and by Mr. Harding, as Chairman of Committee, was approved. The Governor of the Board reported as to a letter to be written by him to Governor Seay of the Federal Reserve Bank of Richmond relative to the power of the latter to issue notes against gold instead of collateral. The draft of a letter to be sent to Lir. J. B. Forgan, with reference to the question of rediscounts between 179 Federal Reserve banks was taken under advisement and on motion referred to Mr. Harding for preparation of a final draft. The Secretary of the Board presented a communication from Mr. L. P. Hillyer, Director of the Feddral Reserve Bank of Atlanta, stating that he had abandoned his plan of forming a partnership with his son for the sale of commercial paper. The schedule of salaries at the Federal Reserve Bank of Richmond, transmitted by Federal Reserve Agent Ingle, for approval by the Board, was referred to the Committee on Operation of Federal Reserve banks. A letter from lir. Ingle relating to the use of revenue stamps on acceptances was referred to Counsel for an expression of opinion. The Secretary of the Board was directed to take up -fith the Secretary of the Treasury the preparation of a suitable form of reply to Li.. J. B. Coulston of Pasadena. A report from Federal Reserve Agent Martin relative to notes offered for rediscount by the First National Bank of I.:orrilton, Ark., was presented to the Board by the Secretary, and it was directed that he write a formal letter to the Bank in question. On motion, at 1.00 p. m. the Board adjourned to meet at 11.00 a. rn. Friday, March 5th. APPROVZD:
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