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May 4, 1923.
laTO
DLTLI FOR
OV2NOR C.. IS ING
•
The undersigned request that you call a special
meeting of the Federal Reserve Board for today,
4th, 1923, at :7,:00 p.m.
ridRy, May
A special nreting of the Federal Reserve Board, called at the written
reqUest of three
members thereof, was held in the office of the qovernor at
3:00 PMOn
Friday, May 4, 1923:
PRES-21TT:
Governor Cri ssinger
Mr. Platt
Yr. Ham 1in
Mr. Miller
Mr. Davies
Mr. Eddy, Assistant Secretary.
Consideration was given to a number of telegraphic requests for postOf the hearing scheduled for 10:00 A.T. Monday, May '7th, on the pro13°8111 of the Federal Reserve Bank of Poston to establish an agency
at Havana,
°Ulla.*
The Governor was requested to send to the Chairman of the Board of
1)1•I'ector5 of the Federal Reserve Bank of Atlanta
the following telegram, and
"hor iz ed also to make public
the contents thereof:
"Board has received a number of telegrams asking
postponement of the hearing on proposed Cuban
agency scheduled for Monday next. You are advised that the Board sees no occasion for postponement of hearing. This hearing was called by
the Board at the request of certain connercial
banks for the purpose of getting further and.
fuller information with respect to certain euestions
in connection with proposed agency, more particularly for the purpose of determining thether such an
agency might result in unfair competition with member banks dealing in Cuban exchan2e and, in the event
that an agency should be authorized, what should be
the precise scope of its operat ions in purchasing,
collecting and selling exchange.
Several telegrams
have been received by me from your district, from
which it appears the signers are suffering from a
misapprehension as to the purpose of the hearing and.
from the fear that your bank may be deprived of the
benefits which have accrued to it from supplying a
large volume of Federal Reserve notes for circulation
in Cuba. I can assure you that whatever is done the
;
5/4/23
Board will recognize the equity your bank
now has in the situation because of the substantial volume of notes it has suimlied to
Cuba. This is also recognized by lovernor
Harding in his amended plan for an agency and
full 'ovision will be made in case any agency
is authorize(' to insure thz t your bank shall
be given facilities the same as those existing
for the redemption of its unfit notes in Cuba and
the pli.cing into circulation of new and fit notes
as may be required. I trust that this information will allay any misgivings as to the purpose
and outcome of the hearing to be held next ronday.
'
,lease so advise the followinr, from whom I have
received telegrams with respect to this natter:
John K. Ottley, Atlanta
C. 13. Claiborne, rew Orleans
L'dw. W. Lane, Jacksonville
Senator Wm. J. Harris, Atlanta
Oscar 7ells, First rational Panic,
Birmingham, and
T. P.. Bennett, .,uperintendent Panks,
Georgia.
The meeting adjourned at 3:45 p.m.
Assistant
APProved:
Go vernor
cretary.
@FedFRASER