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At a meeting of the Federal Peserve Board held in the office of the Board on Thursday, May 27, 1920, at 11-10 A.Y., PRESENT: The Chairman The Governor Mr. Miller Mr. Yoehlenpah Mr. 7Alliams Mr. Emerson, Assistant Secretary. Business was presented and disposed of as follows: Letter dated May 13th from the Chairman, Federal Reserve Bank of New York, recommending for the approval of the Board, the e tablishment of the following discount rates at that Bank: Commercial Parer: For advances not exceeding 15 days, secured by all classes of eligible commercial paper, excepting bankers' acceptances, and for rediscounts of such paper, all maturities. 75 Liberty, Bonds and Victor Notes: For advances not exceeding 15 days on Liberty bonds, Victory notes and customers' notes secured by either of the foregoing, and for rediscounts of customers' notes, so secured, for periods not exceeding 90 days.... Bankers' Acceptances: For advances not exceeding 15 days secured by bankers' acceptances and for rediscounts of same not exceeding 90 days e, •• United 7tates Treasury Certificates of Indebtedness: For advances not exceeding 15 days secured by United States Treasury certificates of indebtedness, and for rediscounts of customers' notes so secured not exceeding 90 .5-1/2 days 7)1scussion of the .prorosed chnlies in rates at York then ensued. The Chairman reported .upon his conference ::osterday with the officers nnd directors of the NewYorkBank on this subect. ';iilliams read a letter by hTh to Governor HardinL; under date of Lia-2 25th, rT0tCStil4; r.tainst zn.: further increase in discount rates at the Fejeral reserve Bank of York, reconendinT tint a stronc directinL head be flaccd in charge of the New Yor.;(.. Bank to fill the vacancy in the Governorship at tht. Lochlenpah submitted memorandum from hin to Governor Hardi42 under date of Lay 2tSth, statiw that he was opposed to the recoendation of the :.ew York Bnk for increase in discount rates at this On motion duly made and seconded, it was voted to approve the discount rates recorended by the Federal eserve Bonk of 1:ew York, as stated above, :r. :.,Toehlenpah and :r. 'illiams votinc "io", with the Chairman votin "Aye". On motion duly made and seconded, it was voted that no Governor be authorised to advise the YederL1 ::eserve Bank of New York of the approval of the discount rates as stated above, with the understandirk: that such rates would be made effective as of Tuesday, June 1st, and that no anno-lncement will be made until after close 177AA7 of busine.3L Taturday,ttrch4 29th: also to advise all other 'Federal Reserve Banks of he approval of the Loard of the above rates for the :,ev, York Bank and date of announcement, with a further statement th't this notification was not for the purpose of :nakino any su, cestion as to what action sho-.113 be taken by individual 7Aeserve Fanks,but In order to permit any other banks that miLht desire to increase their rates ' =1! 488 , 77 3to make such increases, if desired, effective in their districts simultaneously with those of New York. Letter dated 1:ay 15th from the Assistant Federal 7eserve Agent, Federal Reserve 13ank of Cleveland, submitting application of the 3econd Bank of Allerheny, Pittsburgh, Pennsylvania, for reduction in its reserve against demand deposits from ten to seven per cent, untler the provisions of 3ection 19, paragraph (b) of the Federal 7eserve Act. On motion duly seconded, it was voted to refer the application to the :]xecutive Committee of the Federal 7eservc Banc of Cleveland for its recommendation to the Federal r.eserve Board. Letter dated 1,:ay 264,h from the Chir-rlan, Federal Reserve Bank of ilew York, requesting approval of the Board to letting of contract by that Bank for the construction of a fire-proof building for storage purposes, authorized by the Board under date of April 16th with the understanding that the total cost of lot and building will approximate ;900,000, such contract to be let without asking for bids, in view of the necessity uf i:,oliately correneiqL, 1-mstrilction, 7essrs. :'arc n Cons, Contractors, having agreed to construct the buildin7 on a commission of eight rer cent on the cost, and • submit all contracts to the Federal reserve Panic for verification and audit. Approved. (At this point the Chairman withdrew from the meeting) • Letter dated liay 25th from the Chairman, Federal Reserve Bank of Cleveland, enclosing copy of letter from Swift Company to a member bank in the Fourth District, in re financing shipments for packers u:Ider acceptance credit. Noted. Letter dated May 27th froln:Ir. C,eorL;e L. Harrison, submitting his resignation as General 0ounsel of the :7ederal Reserve Board, effective July 1, 1920. On motion (hay seconded, it was voted that Mr. Harrison's resignation be accepted, and the Governor was authorized to express to 7arrison the Board's anpreciation of his services. Letter dated May 25th from the Governor, Federal Reserve Bank of Chicaso, with reference to complaints made by Mr. John A. Lynch of Chicago regarding certain activities of the Chicago Bank. Noted. Telegram dated Lay 26th from the Federal eserve Bank of Dallas, asking whether or not the Board had revoked its ruling' that a member bank might rediscount with a Federal 7.eserve Bank a non-member ban7,:'s notes secured by Liberty bonds and -Victory notes. Peferred to the Governor for negative reply. 490 -5Letter dated !,:ay 25th from the Executive Secretary, United States Bituminous Coal Commission, askinE that the Board designate a representative to an informal conference to be called by that Commission for the purpose of discussing - certain information concerning coal which has been, and is being collected by various Federal departments and agencies. On motion dulj seconded, it wal voted . that Dr. I:. A. Goldenweiser, Assistant 3tatisidcian, be designated as the Board's representative at this conference. . Telegram dated Lay 26th from Assistant Federal Reserve Agent at Philadelphia, requesting approval of the Board to the designation of Mr. Charles Litzenburg as an Assistant :xaminer of the Federal eserve I3ank of Philadell'hia. Approved. Telegram dated inlay 27th from the Chairman,. Federal Reserve Bank of Richmond, requesting approval of the Board of the establishment at that Ban'!: of discount rate of 5-112, on member banks collateral notesard customers' rediscounted notes secured by United States certificates of indebtedness bearinn• rate of 5-l/2;1, effective May 27th. Arproved. The Governor reported the reserve positions of the several Federal Reserve Banks.as at close of business May 25th, and the status of rediscounts between Federal Reserve Banks as of the same date. The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government oblications; rate 5'4 on paper , cured by certificates of indebtedness, and 5-1A, on paper secured by Liberty bonds and Victory notes, as follows: Date Bank T.ediscoun_tin;-: With Lay.75th ,:ansas City Boston 41.1ount .Z,T)0,100 11-11 days Noted. The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank promissory notes secured by Government oblications; rate e on commercil paper, as follows: Alvount BanixRediscounting Date ::.ay 25th St. Louis New York 5,010,000 Iaturities 31 VO days Noted. The Governor reported rediscount transaction, pursuant to authority heretofore vested in him; member bank Promissory notes secured by Government obligations: rate 5, 011 paper se4 or cured by certificates of indebtedness bearing rate of 5:: less; 5-1X on paper secured by all other certificates of Indebtedness, and on paper secured by Liberty bonds and Victory notes, as follows: -7Date Bank Led'sno-,; - ntipL rturit Amount With '7,500,000 Y.ay 11-1E The Govoroor rol ort(d rc,d;soor,,It transaction.ursiso ,ber to .. ,.1ktho2'it,' 'icrctof*)rc. 0.! 1_ 1-GT 3.2.- tietcs secilruC, L i/ 3red by Certificates of 11571.01,teduess Lass; 5-1 rate of , 02 on paper secured by certificates of ialjelto,.7no.ss bearina rate of 5-1/4:), and 5-1/27J on.pauer secured bj certificates of indebtedness bearing rate of 5-1/e, as follows: Date Pctrilt: P01-117-46.11C. Vith Amount Nev York .::',3,010,f7,00 17aturitiez 11-15 days ted. Dated recol -londitili-jsio-n of 3t;te iustitutions, as set forth ía the auxiliar.2; Liffato book as of L'As (Inte, sublect to tip ondtio%s in tLe div daal reports littached to eaoll anoi Approved. Dated ,7..r:ay 26th, reco:nmending cha2k-:. es in stock at Federal serve Et-11'1%s as set fortli in the auxiliary ninato book as of this date. Approved. Letter dated. Liay .,76th from , L. Peed, Private r. Ja- ,.1ocretarw to Er. A. C. Liner, submittinc; his resinat1on, lye June 15, 1920. Accepted. At 12-4 the meet lug adjourned, Assistant Secretary. Approve,',: Chairman.
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