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At a special meetinc of the Federal reserve Bo-rd, held in the office of the Board on 3aturday, May 1920, at 11-30 PRESENT: The Governor 1.pr. ior nyehlenpah lir. Williams 1:1,r. Emerson, Assistant 3ecretary. Business was presented and disposed of vs follows: The Governor reported the reserve --)o,itions of t'qc suveral Federal Reserve Banks as at close of business :-ay 27th, 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 prDmissary notes secured by Government obligations: rate 5:42 on al paper secured by certificates of indebtedness bearing rate of 5-4 or less, as follows: Bank Eediscounting Date La - 27th Atlanta with Net York Amount .2,500,010 Maturities 8-15 days Noted. The Governor reported rediscount tran saction, pursuint to authority heretofore vested in him; me,r,ber bank promissory notes secured by Government oblications: rate 54 on piper secured by certificates of indebtedness, and 5-1/Z4 on TK-.per secured by Liberty bonds and Victory notes, as follows: ith Bank nediscountinr, Date Lay 27th Dallas New York Amount 3,-)00,000 :'aturities 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 5:: on paper secured by certificates of indebtedness bearing rate of 5') or less; 5-1/e on parer secured by certificates of indebtedness bearing rate of 5-1X; 5-1/271 on paper secured by certificates of indebtedness 'Waring rate of 5-1/27f, and 5-1/2A on pallor secured by Liberty bonds and Victory notes, as follows: Date May 28th ith Bank Pediscounting Richmond Cleveland Amount -Z;5,000,000 Maturities 11-15 days roted. FETOIITS OF CO=ITTT:11 NO. 1: Dated May 29th, 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 application. Aprroved. Dated May 28th, recommending changes in stock at Federal 7eserve Banks, as set forth in the auxiliary minute book as of this date. Approved. Dated May 26th, recommending approval of application of 504 ':;endell 'Endicott to serve at the same time as a director of the Chase National Bank, New York City, and of the International Trust Company, Boston, :ass. Approved. Dated :ay 29th,submitting resignation of Lisa Esther 1:,orey as Office Assistant in the office of Secretary of the Board, effective at the close of business June 21, 1920. Accepted. Other business was presented and disposed of as follows: Tlemorandum dated :ay 28th from the Assistant Secretary, giving a digest of reliort made by rr. E. P. :.enzel of the Federal Reserve Bank of New York, on the subject of whether or not the usages of trade in certain foreign countries warrant the Board in continuing to grant permission to member banks to accept drafts drawn on thcmselves by banks or bankers located in those countries for the purpose of furnishing dollar exchange; together with application of the Liberty National Bank for permission to accept drafts drawn upon themselves by banks or bankers located in Brazil, action on which has been deferred pending the completion of report by lir. 1:enzel. On motion duly nade and seconded, it was voted that the Liberty National Bank be granted permission to accept drafts drawn upon it by banks or bankers located in those countries which have been, or may be designated by the Board as countries in which the usages of trade require the furnishinc, of dollar exchange, and that the BoIrd reserves the right to modify or, on CO days' notice, to revokn its approval either as to any particular member bank or as to any country. 503 The Governor submitted _ for approval of the Board, draft of letter to the Governors of all Federal Teserve Banks on the subject of discount rates. Arproved as amended. Telet;ram dated May nth from the Governor., Federal fleserve Bank of Minneapolis, recommendinc the following discount rates at that Bank: Member bank 15 day collateral notes: Secured by Treasury certificates of indebtedness Secured by Liberty bonds or Victory notes Secured by elicible notes Customers' notes, maturities one to 90 days: Secured by Treasury certificates of indebtedness Secured by Liberty bonas or Victory notes Commercial paper, maturities one to 90 days Trade acceptances, maturities one to 90 days 5-1X 7:7 4 5-1/2:: 7-;1 -1,! 6-05 Bankers acceptances rediscounted for member banks, maturities one to 90 days Acricultural or live stock paper, maturities one day to six months On motion duly made and seconded, it was voted to approve the rates recommended by the Federal Peserve Bank of Minneapolis, with the exception of the rate of 7;.: on member bank 15 day collateral notes and customers' notes secured by Liberty bonds and Victory notes, with advice that the Board is unwilling to advance the rate for this class of paper above Ei,;1 at this time. 506 At 12-15 P-..11" the meeting adjourned. Assistant 3ecrotary. : *.t-i"r0Ve1i: Governor.
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