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At a meeting of the Federal deserve Board held
in the office of the Governor at 1.10 p.m. on Saturday.
May 12,
PRESENT:
L. Harding, presiding,

Mr. Hamlin,

Mr. Delano,

Mr. Allen, Assistant
Secretary.

Mr. Miller,

Letters carrying into effect the action of the
Executive Committee at a meeting this day postponing the
going into use of exchange drafts between Federal Reserve
Banks from May 21 to June 1 were on motion of Mr. Miller
formally approved by the Board.
Governor Harding read letters from Jr. P. a.
Goebel, President, American Bankers Association, and J.H.
Paelicher, President, State Bank Section, American Bankers
Association, communicating a resolution of the Executive
Committee of the State Bank Section adopted on May 7, 1917,
at Briarcliffe, Scarborough,

IT.

and the Federal Reserve System.

Y., relative to state banks
These were ordered spread

upon the records of the Board, and referred to the Committee on the Bulletin for such use as might seem to the Committee desirable.




;•.;




The letters referred to are as follows:
"May 11, 1917.
Hon. J. P. G. Harding,
Governor Federal deserve Board,
.::ashington, D. C.
My dear Governor:
am glad that Mr. J. R. Puelicher, the
President of the State Bank Section of the American
Bankers association, has communicated to you resolution passed by his Section at the recent meeting at
Briarcliffe, N. Y. It was very enthusiastically received by the Executive Council of the Association,
and I believe that when the amendments referred to
have been enacted into law, you will see a large
number of state banks making application for admission into the Federal deserve System. I personally
believe that state banks entering the Federal Reserve
System are performing a patriotic duty to the country.
Very truly yours,
(6gd.) P. 4. Goebel,
President, American Bankers Association."
"May 11, 1917.
"Hon. I. P. 3. Harding,
Governor Federal Reserve Board,
dashington, D. C.
Dear Sir:
The following resolutions were unanimously passed
by the Executive Committee of the State Bank Section
of the Imerican Bankers Association at its meeting
held at Briarcliffe, Scarborough, N.Y., Monday, May 7,
1917, viz:
"WHEREAS the amendments to the Federal Reserve
Act covered in bill S. 1796 and its accompanying
changes as further amended by this Committee in
conjunction with Governor Harding and Mr. Delano
of the Federal deserve Board, successfully eliminated most of the principal objections to the

Federal Reserve System made to this Committee
by the State Banks of the United States in
answer to its questionnaire; therefore be it
HESOLVLD that this Committee recommend to the
State Banks of the United States that they consider carefully the Federal Reserve ict and its
amendments after the amended bill referred to
has become law, with the thought of joining the
system (if they feel warranted in doing so) in
order to strengthen the banking power of the
United States of which they are so important a
part."
"It gives me pleasure to transmit these resolutions to you, as they indicate that those representing
the State Bank Section consider the amendments recommended by your Board covering the admission of state
banks, as equitable, and if enacted into law, together
with the suggestions of the imerican Bankers Association
Committee of twenty-five appointed for the purpose of
adjusting the existing differences in relation to exchange charges, should tend to bring many of the state
banks into the Federal Reserve System, thus making the
banking system of the United States, to that extent, a
more unified one, and consequently a more powerful one.
Very sincerely yours,
(Ligd.) J. H. Puelicher,
President, State Bank Section
American Bankers Association."
The minutes of the meeting of the Committee on the
Clayton 4-ct held in the office of Mr. Hamlin at 3 p.m. May
11, 1917, received the approval of the Board and the action
therein was made the action of the Board.
Governor Harding read a letter from the Secretary
of the Treasury, suggesting that he direct having made a




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stamp contvinin6; the words "Your'Patriotic Duty -- Buy
a Liberty Loan Bond ,t' and thzt this stamp be placed upon
all outgoin,, 1 tters.

This letter was referred to the

Committee on Bulletin for a recommendation to the Board.
At 1.15 the Board adjourned.