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4 I -11. f t _Jr meetinc 'of the Federal Reserve Peerd was held in the office of the Federal Reserve .9,oard on 71ednesday, May 23rd at 11:00 o'clock. ?R7,S..=: Governor Cri inger Platt Yr. Hamlin Fr. Filler Mr. James Yr. Hoxton, Secretary 1 oard held on May l'he minutes of the meeting of the Federal Reserve . 2211d were read . and on motion approved. Letter dated May 21st, :rore 7,7r. J. U. Case, Deputy Governor of the Peoeral Reserve Bank of Mew York, advising that one of the large Few York eitY banks has recently drawn ''1,000,000 of 'Federal reserve notes for shipto Russia, and that the Federal Reserve Penk of Mew York has learned that '350 ,000 was withdrawn for shipment to Germany. Mr. case stated the 7ederal Reserve Rank of Lew York has no accurate information that Of this matter, it is clear that this kind of shipment is becoming somewhat ccnr2110n, and in view of the potential possibilities of its reaching into large it seems desirable that the Federal Reserve System have some method 11°1 'knowing the amounts of such shipments. Yr. Case, in his letter, sug- "sted that a feasible method fur doing this might be to have a private letter sent to the larger banks renuesting that allshipments of United States 1 ''' 11cY (including ,.`ederal Reserve notes) to or from foreien countries in alll°11/1t5 of 10,000 or more, might be reported to the federal -eserve lanks 1-assifieti by the foreign c:ountries ,_oncerned. 7he "oard being advised that Mr. Case was In the 7reasury building attending a meeting of the Governors' -ommittee On Open Yarket .)urchases, he was requested to confer with the T'oard. r 5/23/23 -2- 1 Fr. Case entered the room and he stateil that he had been advised that Federal Reserve not es are in certain countries abroad sold at the present time at a premium over gold, because gold is not circulating in those countries; furthermore, that the Federal Reserve Bank of .7,ew York has been conducting an investigation of foreigi balances in this country and that this investigation has developed the informtion that exports of Federal Reserve notes are being made. Thereupon, 1,:r. Case was requested to submit to the Board a complete set up of a practical method designed to secure for the Federal Reserve System the information regarding foreign movements of Federal "eserve notes outlined in Mr. Case's letter aforesaid. The Governor called up the raitter referred to him yesterday for consultati0/1 with the Treasury Department, namely, the letter dated. May 17th from the ehirmarl of the Federal Reserve Bank of Boston advising of a suggested apAropriat ion of :4 2500 by the Federal Reserve Rank of Boston to help carry on work of the Treasury Savings Sales, tthe request for said appropriation 0ni from Mr. F. C. Ayres, local director of the Treasury Savings Sales. The Governor reported that he had conferred with the Under Secretary of the Treasury, Mr. Gilbert, and that Mr. Gilbert appeared to approve of the appropriation by the Federal Reserve Bank of Boston, requested by Mr. Ayres. Mr. Miller moved that the Governor be requested to reply to Mr. Curtiss advising that the Board shares the doubt expressed by Mr. Curtiss as to whether an appropriation of this character may be properly conridered as cominp: within the fiscal agency functions of the Federal Reserve bank. Mr. Miller's 7ot ion being put by the chair was lost. esent voted as follows: Upon call of the roll, the merrbers Mr. Filler, "aye" Goverlor Crissinger, "no" Mr. Platt, "no" Earnlin, "no" Mr. James, "no" A Mr. dames moved that the matter be referred to Counsel for opinion. Mr. Filler moved as a substitute to Mr. James' motion that the request for the appropriation referred to, be declined. /I 5/23/23 -3- The chair put 17r. Miller's substitute motion which was lost; the roll being called the members voted as follows: Governor Cri ss Inger, "aye" 17r. Miller, "aye" Mr. Hamlin, "no" I.Tr. Platt, "no" Mr. Janes, "no" Thereupon, Mr. Jormes withdrew his original motion that the .matter be referred to Counsel for an opinion. Fr. --)latt moved that the Board will make no objection to the expenditure with relation to the sale of Savings Certificates mentioned in Mr. Curtiss' letter, but that the Board is of the opinion that this is a fiscal agency function which shouldmbe reimbursed by the Treasury Department. Mr. Platt's motion being put by the chair was lost; the roll was called, the members voted as follows: Mr. ?latt, "aye" Governor Crissinger, "no" Mr. Hamlin, "no" Mr. Miller, "no" /.7.r. James, "no" Mr. Hamlin then moved that the Governor be requested to submit to Counsel, Mr. Curtiss' letter of May 17th with a view to ascertaining the legality of an, appropriation for the special purpose referred to in Mr. Curtiss' letter. Carri ed. At this Imint, Mr. 0. W. Barton, Vice President of the Metropolitan National 4211 Of rinneapolis entered the room, upon invitation of the Board, and as Chairman of a Committee appointed by the National Bank Section of the American 13411kere' Association, presented to the Board the views of his Committee with l'esPect to the handling of Non-cash Collection Items by Federal Reserve banks. Mr. Barton stated that he had come to Washington, upon invitation of the Board, for the purpose of conferring with the Committee of Federal Reserve bank Governors appointed to consider the question of NonCash Collectron Items which is meeting today in the Board room and he sup;gested that each Federal Reserve bank should confine 5/23/23 -4its handling of Non-cash Collection Items to items originating and payable in the Federal Reserve bank's own district. Mr. Barton withdrew from the room and the Poard discussed the request Of. the Bank of Italy that the Federal Reserve Board reconsider its action in declining to approve the establishment of branches of the Bank of Italy 4t Yuba City and Sacramento, California. Mr. Miller moved that Mr. Perrin be advised that inasmuch as the facts submitted to the Board as to adequate banking facilitkes at Yuba City and Sacramento have been challenged as incomplete, he is requested to rake further investigation and report to the Board. Mr. Miller's motion being put by the chair was carried, and the Law Committee was requeste0 to prepare, a draft of letter to Yr. Perrin for submission to the Board at its next meeting. The Board then further discussed the natter of the establishment of 4 Pederal Reserve bank agency at Havana, Cuba. Mr. James discussed the possibility of reconsidering the action of the Poard, whereby it was determined to establish a ?ederal Reserve bank agency at ITavana, and stated that in his opinion a final disposition of this matter should not be made until tlie full membership of the Board, including the Secretary of the Treasury, shall be present. Mr. Miller suggested that the Pederal Reserve Bank at New York should be requested to ascertain exactly what kind of bills are drawn in Cuba on United States banks covering exports to this country. The meeting adjourned at 1:45 p.m. Secretary. 441/roved:
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