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At a meeting of the 7xecutive Committee of the Federal
reserve Board held in the office of the Board on Wednesday,
May 19, 1920, at 3 P.M.,
7173ENT: The Governer
LIr. Lliller
1.:.oehlenpah
Mr. Emerson, Assistant Secretary.
Minutes of meeting of the Board held May 15th were
read, and on motion approved.
Business was presented and disposed of as follows:
The Governor submitted for approval of the Board, draft
of letter dated May 15th to the Federal reserve Bank of St.
Louis, in regard to recent legislation enacted in the State
of rississinpi providing for a depositors' guarantee fund upon
the eligibility of Mississippi State banks for rombership in
the Federal reserve System.
Approved.
Telegram dated May 19th from the Chairman, Federal
Peserve Bank of St. Louis, recommending rate at that Bank of
5-1/27 on paper of all maturities secured by certificates of
indebtedness bearing that rate, effective May 20
1920.
Approved.
Telegram dated May 19th from the Chairman, Federal leserve Bank of Atlanta, recommending a rate at that Bank of
4 on parer of all maturities secured by certificates of
5-1/1)
465
indebtedness bearing that rate, effective May 21st.
Approved.
Letter dated May 15th from Assistant Federal Reserve
Agent at New York, reporting on financial and business conditions in the Second Federal Leserve District.
Noted.
Letter dated May 18th from the Federal
eserve Agent
at 4.-)hilade1phia, in retard to banking and business conditions
in the Third Federal Reserve District, and reporting upon
the tictivities of the Federal Reserve Bank of Philadelphia.
Noted.
:leyorandum dated May 19th by the Assistant Secretary,
with reference to whether or not a copy of the stenographic
report of proceedings of the conference of the Federal Advisory
Council and Class "A" directors of Federal Reserve Banks with
the Federal Eeserve Board should be furnished to Federal reserve Banks.
On motion duly seconded, it was voted
that the shorthand reporter furnish to the Board
one copy of report of the -proceedings, and advise those attending the conference requesting
copies of the stenographic report that the same
may be obtained through the Federal Reserve
Board upon request at their respective Federal
Reserve Banks.
The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank
promissory notes secured by Government obligations; rate 51
466
on paper secured by certificates of indebtedness bearing rate
of 5';"; or less; 5-1/4lo on paper secured by certificates of indebtedness bearing rate of 5-1/41, and 65 on paper secured
by Liberty bonds and Victory notes, as follows:
Maturities
Date
Bank Rediscountinr
7ith
Amount
May 17th
Minneapolis
Cleveland
;:5,000,010
11-15 days
Noted.
The Governor reported rediscount transaction, Pursuant
to authority heretofore vested in him; member bank promissory
notes secured by Government obligations; rate
U7 on parer
secured by certificates of indebtedness bearing rate of 5(7,;
5-1/4
on paper secured by certificates of indebtedness bear-
ing rate of 5-1/4 , and 5-1/2"; on paper secured by Liberty
bonds and Victory notes, as follows:
Bank Rediscountinr
Date
May 17th
Richmond
with
Boston
Amount
.%10,000,000
Maturities
11-15 days
Noted.
The Governor reported rediscount transactions, pursuant
to authority heretofore vested in him; member bank promissory
notes secured by Government obligations: rate el on commercial
paper, as follows:
467
-4Bank Rediscountiliel
Date
St. Louis
St. Louis
..ay 17th
May 18th
7:ith
Amount
Maturities
New York
Cleveland
.;15,000,000
5,000,000
31-90 days
Noted.
The Governor reported the reserve positions of the
several Federal Reserve Banks as at close of business May 17th,
and the status of rediscounts between Federal Reserve Banks as
of the same date.
Letter dated May 12th from the Federal Reserve Agent
at Minneapolis, suggesting appointees to the Board of Directors
at the Helena Branch of that Bank.
Tabled for the next regular meeting of the
Federal Reserve Board.
Application of the Union Savings Bank& Trust Company,
Cincinnati, Ohio, for authority to accept drafts and bills of
exchange up to 100
of its carltal and surplus, under the pro-
visions of Section 13 of the Federal Reserve Act.
Approved.
Letter dated May 13th from the Chairman, Federal Reserve Bank of Dallas, advising that at the last meeting of the
Board of Directors of that Bank they approved, subject to the
approval of the Board, compensation at the rate of!,2.50 per
meeting
for directors attending executive committee meetings
at the Houston and El Paso Branches of that Bank.
4C('
-1()
-5Approved.
Letter dated May 15th from the Mercantile Bank of the
Americas, advising that a branch of their affiliated institution,
the Banco r.ercantil Americano del Peru, Lima, had opened a branch
in Pirua, May 15th.
Noted.
POETS OF COMYITTEE NO. 1:
Dated ray 19th, 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 apiplication.
Approved.
Dated flay 18th, recommending changes in stock at Federal Reserve Banks, as set forth in the auxiliary
minute book as of this date.
Approved.
Dated May 19th, recommending approval of application for
fiduciary powers, as set forth in the auxiliary minute book as of this date.
Approved.
Dated May 19th, recommending that application of the First
National Bank, Taterloo, Iowa, for authority
to exercise fiduciary powers be held pending
receipt of report of next examination.
Recommendation approved.
Dated May 17th, submitting resignation of Miss Kate rliucevich
as Stenographer in the office of Secretary of
the Board, effective June 14, 1920.
Accepted.
Dated May 14th, recommending approval of increase from :3,000
to 33,600 per annum in salary of rr. Clarence
F. Smith as National Bank Examiner, effective
'Tay 16, 1920.
Approved.
469
-6"Datod May 10th, recommending arproval of appointment f Yr.
Louis Bentley Ammerman as head of the Purchasing and Supply departments of the Federal Reserve Bank of San Francisco, at a salary of
2,400 per annum, effective April 28, 1920.
Approved.
Dated May 14th, recommending approval of appointment of Mr.
F. J. Maurice as Assistant Cashier of the
Detroit Branch, Federal Reserve Bank of Chicago,
at a salary of ;,500 per annum.
Approved.
Other business was presented and disposed of as follows:
Letter dated L:ay 18th from Yr. W. 7. 7arwie'tc, Comptroller
of tho Treasury, replying to letter to him from the Governor
relative to the authority of the Federal Reserve Board to purchase real estate for use as offices for the Board and its staff.
Referred to the Governor with power.
Letter dated Ll'ay 16th from the Governor, Federal Reserve Bank of Philadelphia, relative to the reduction in loans
of member banks with the Federal Reserve Bank of that District
during the past three weeks.
Noted.
Letter dated May 14th from the Governor, Federal Reserve Bank of Chicago, advising that the Board of Directors of
that Bank had approved, subject to the approval of the Board,
the expenditure of .2,425 as the pro-rata contribution of
that Bank toward providing new quarters for the Chicago Chapter
-7of the American Institute of Banking.
:eferred to General Counsel for report.
:emorandum dated 1:..ay 15th from the Assistant Jecretary,
suggesting that the Federal reserve 'flanks be advised that it
is no longer necessary for them to further withhold from circulation, silver certificates and standard silver dollars
which they have segregated and are now holding in their vaults.
Approved.
Letter dated Y.ay 14th from the Federal reserve Agent
at Dallas, recommending that :r. J.O. Douglas, Field representative of the Federal 2.eserve Lank of Dallas, be continued In
his present status.
Approved.
Letter dated La' 15th from Deputy Governor Adelson
of the Federal reserve Bad: of Atlanta, advising that representatives of the Federal Trust Company of Atlanta had called
upon him, stating that they were contemplating the organization
of a corporation patterned after the Federal Reserve Bans, to
be known as the Federal Reserve Corporation, for the purpose
of making advances to banks on their real estate loans.
Referred to the Governor with authority to
advise the Federal Reserve 'thank of Atlanta to
notify the promoters of this corporation that if
they formed a corporation known as the Federal
Reserve Corporation, the Federal reserve Dank
would take steps to notify the public through
471
the press and othervise, that such corporation
had no connection whatsoever with the Federal
reserve Bink of sAlanta or the Federal Peserve
f3stem.
Letter dated
Currenc,T, enclosin
15th from the Comptroller of the
a copy of the last report of exavination
of the Mellon 7,:,. ational 1,ank of Pittsburgh, Penns;Ilvania, to'ether with an analysis shawin
the loans of that Bank to its
officers and directors.
Letter dated May 14th fro;, aonator Owen, replyinG to
letter from the Governor to him :under date of May 12th.
Noted.
At 5 P.114, the meeting adjourned.
Assistant ,',ecretary.
F,Droved:
Govern
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