Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, May 28, 1920, 4:45 PM, Volume 7, Part 2

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At a special neeting

f the 2odera1 ::cserve
-

held in the office of the Board on Friday, :.-ay

6, 1,at

4-45 P.14.,
irman
i'17,1":31.47,T2: The
The Governor
1.1r. 7i11or
ah
1,r.

BIASiEOSS

was oresented L.,J disposed of as follows:

TeleLram dated 1.Tay 2Cth

Deputy Governor .Thrle of

: of Lich, advisin[_1: that the 772.:
, ecuthe 1:ederal reserve Bnn7,-.
tive Colarnittee of that Ban-V had fixed the followinL discount
rates, sub,ject to the arovl of the Board, to le mnounced
at the close of business 1:.ay 2cdth, and to become effective
June lot:
horwer ban7: collateral notes and rediscounted customers' notes of n11 .-Tatu.rlties,
secured by UnIted 3tates certificates of in....... 5-,
Oeltedness, all issues.--. ..
7ember banks collateral -notes and rediscounted customers' notes secured by Liberty
bonds or 71ctory notes
I'aners accertances rurchased or rediscounted. • •........ • • ..•
••

'




4141*W0011,*••

On motion duly made and seconded, it was
voted to approve the rates recornended by the
icderal eserve iank of 7.ichmond, and advise that
hank that if it desires, the Board authories
alternative rate on member banks collateral notes
secured by Liberty bonds and Victory notes of
5-1/2" to c,5", to be arTlied at the discretion
or that 1?lik.

500

Thlegram dated May 28th from the Chairman, Federal
reserve Ban) of Chicago, submitting for the arprOVa1 of the
Board, recommendation of the loard of Directors of that lank
of the follovin

discount rates, to be announced at close of

business Thy 29th, and to become effective June 1st:
Commerci!31 raper:
For advances not exceedint2 15 days, secured by all classes of elicible conmiercial
paper, exceptinr.banicers' acceptances, and
for rediscounts of such parer, all maturities.
Libert,T bonds_ and Tic tor ::otes:
For advances not exceeding 15 days on
Liberty bonds, Victory notes and customers'
notes securel b, either of the forepin,
and for redisnounts of customers' notes, so
secured, for periods not exceeding 90 days.. • •

0:

Ban:ers' Acceptances:
For advances not exccedio 15 days secured by ball-zers' acceptalices and for rediscounts of same not exceedin 90 days
United '.3tates 2reasuy.1 (7,ert1ficates of
Indebted.ness:
For advances not e'xceedin 15 days secured by Unitedcitates Treasury certificates
of indebtedness, and for rediscounts of customers' notes so secured not exceeding 90
days

r,

.%.prroved, Er. Lilliroas not voting.
The Covernor ronorted that

2.ncus':% IcLean of the

I::ar Finance Corporation, hal accented the Foard's appointment
as a member of the railway Loon :•dvisory Committee to the board,
vice




Frederick A. Delano, rusined.

501

Letter dated ray 28th from the railway Loan Advisory
Committee to the Board, recommending that approval be given
to recommendation of the Interstate Commerce Commission of a
loan of U4,600 to the Salt Lake & Utah .i.aliroad, under the.
provisions of Section 210 of the Transportation Act of 1920.
On motion duly made and seconded, the
Governor was authorized to transmit to the
3ecret2ry of the Treasury, with the approval
and endorsement of the Board, the report of
the Railway Loan Advisory Committee, recommending that this loan be made to the Salt
Lake & Utah Railroad Company, to be secured
by bonds of the Cowpany in an amount onethird greater than the amount of the loan.
At 5-5 P.Y., the meeting adjourned.

ss stant 3ocretarv.
Arnroved:
•