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1:'02 A meeting of the Federal Reserve Board was held in the office of the Board on Tuesday, November 1, 1921, at 4:00 p.m. PRESENT: Governor Harding Mr. Platt Mr. Haml in Mr. Miller Mr. Cris singer Mr. Hoxton, Secretary. Minutes of the tvio meetings of the Board held October 26th and 318t were read and on motion approved. The Governor reported the reserve positions of the several Federal liesel`ve banks as at close of business October 25th, 26th, 28th and 29th, ani the status of rediscounts between the Federal reserve banks as of the 8' 927ne dat es. The Governor reported redi scount transactions, member bank prot11188°rY notes secured by Government obligat ions, rate 6%, as follows: Date ......___ Bank rediscounting Richmcmd Dallas Minneapolis Richmond Dallas 26 °et. 26 °et °et. 28 °Qt. 28 With New York Boston New York New York Boston Amount 110,000,000 2,500,000 1,000,000 5,000,000 500,000 • 1,500,000 Matur it i es 7-15 days 11-15 1-15 7-15 ft 1-90 "(Coml) 11-15 it Letter dated November 1st, from the Railway Loan Advisory Committee or th p -ederal Reserve Board, recommending approval of the form of obliga- :1404 ,..,_ 8 mmitted u by the Western Maryland Railway Company for a loan of 31,000,000 six parts, the carrier electing at this time to take over the second 1441 „ — the loan in the amount of :,t 200,000, under the provisions of Section Z10 Or the Transportation Act, 1920. as amended. Approved. - 9 Letter dated October 31st, from the Railway Loan Advisory Corrrmittee of the -eederal Reserve Board, recomrendinp; approval of the form of obligat104 submitted by the IT York, 7evi Raven and Hartford_ Railroad Company for a 1°a/1 of ."9,630,000, in two parts, the carrier electing at this time to take. over the first instalirent of tle second part of the loan, in the artion, of '400,000, under the provisions of Section 210 of the Transporta- t1011- k‘,..ct, 1920, as anended. Approved; Hr. Hamlin not voting. Letter dated October 28th, from the Railway Loan Advisory Committee c)f the Federal Reserve Board, re comrrendi ng approval of the form of obligatic) SUbmittecj by the Evansville, Indianapolis and Terre Haute Railway Comf or a loan of .4400,000, in eight parts, the carrier electing at this tI to take over the third part of the loan, in the amount of n50,000, unthe provisions of ection 210 of tle Transportation Act, 1920, as /*rem ea.. Approved. Draft of letter dated October 27th, prepared by General Counsel 1'131' the signature of Governor Harding, addressed to the American 7onign taz, lflg Corporation, and calling attention to a failure on the part of said e01.1)o ration to comply with certain requirements of the agreement entered Illt° between said Corporation and the iiiederal Reserve Board. Appro ved. .44 .'f:•-: Letter dated October 25th, from the Assistant Federal Reserve Agent at Atlanta, submitting E.... ,(1justmnts in personnel and salaries at the Binning- ha and "Tcw Orleans Branches. Approved. Letter dated October 25th, from the Assistant Federal Reserve Agent t St.Louis, transmitting, with fvorab_le recommendation, application of the Peoples savings Bank and. Trust Commy of 2ine Bluff, Ark., for authority t accept drafts and bills of exchange ue to 100, of its capital and el111)1us, under the provisions of Section 13 of the Federal Reserve Act and ----On "C", Series 1920, issued by the Federal Reserve Board. Appro v ed Letter (1:1 tot' October 29th, from the Assistant Federal Res -rve Agent ehice.go, transmitting, with favorable recommendation, application of the 41'chants and Illinois 'rational Bank, Ieoria, Ill., fbr authority to accept 'akfts and, bills of exchange up to 100: of its capital and surplus, under the Provisions of Section 13 of the Federal Reserve Act and Regulation "C", 4ries 1920, issued by the Federal rve Approved. Letter dated October 25th, from the Assistant Federal Reserve Agent San •I•rz-zicisco, submitting, with favorable recomarendLtion, application of the alley Bank of Fresno, California, to take over the business of the 11L,-tional "Rank of Reedley, Cal. and. to establish a branch at that place. • Formally approved, having been approved by the initials of four members of the Board October 31, 1921. Two letters dated October 27th, from the Assistant Federal Reserve Aglent at Ch1c0, recommending, on account of location and characteristics as n'rely neighborhood banks, that the Adems state Bank and the Drexel State I ank, both of Chicago, be designated by the Federal Reserve Board as 1 .1Y ng banks, with a reduced reserve requirement upon demand deposits 13cZ to 10/.;. Approved. Memorandum dated IToveraber 1st, from the Assistant Secretary of the 'tk, advising that seven Federal reserve banks and ten branch banks ettlirig through the sold settlement fund, will be closed on Armistice Day, ' irloer 11, 1921, and recommending that there be no gold settlement fund cleat'ing on Friday, rrovember 11th, and that all Federal reserve banks and ' cnes be so advised. Approved. ::r. Crissincer referred to a letter of Oct. 26th, addressed to him Governor Harding, and stated that he agreed to the suggestions made by 4°."rnor Harding, and that his office would, prior to the issuance of certif. leates of authority to commence business, require each newly chartered 114't1ona..1 bank to make that subscription to the capital stock of the Fedcral ervo bank of its district, which it is required by law to rake. Upon motion, the secretary was instructed to supply the Deputy Comptroller, Mr. Fowler, with su:ficient stock application forms for this purpose. IL 4 -5- 1:e1norandurn dated October 25th, from ::r. J. R. l'itchell, advising c)f the appointnvnt of :-iss L. C. Vierling as Stenographer in his office, stfective October 27, 1921, at ,,1500 per annum, including bonus. Noted. Upon MD tion of Nr. Hamlin, the application of the Ri.pEs -rational 13411k of"fashinp.,ton, D. C. for fiduciary power was not acted upon. but was Ilef erred back to Commit tee :To. 1. Upon recommendation of Cornmittee . 1, the application for man- ber "1"-P in the Federal l'Lese I've System of the runsey Trust Comcany of ' zh iflp:ton, D. C. was ordered circulated. Telegrai dated iToventer 1st, from the Federal Reserve Bank of Chicago, stating that the Board of Directors of that Bank hold the opinion that the discount rate at that Bank should be reduced from 6';7:, to 57:. pro- 11.40(1 that the Federal reserve banks adopt the rates suggested for the S,Yst ern at the recent conference between the federal Reserve Board and. th 6 Governors and Chairmen of the 'Federal reserve banks, but that should '1'e rates not 'be put into effect by all of the Federal reserve banks, t the rate in the Chicago District should be Not ed. Telegram dated October 31st, from the Federal Reserve Bank of San 'clsco, advising that the Board of Directors of that Bank had, subject to 110 review and determination of the Pederal Reserve Board, established ' (Ii secunt nate of for all paper of all naturities, in lieu of 51 -fs: now qta • ining. Approved, effective immediately. -6- Telegran dated October 31st, from the Federal Reserve Bank of 411sas City, advising, that the Board of Directors of that Bank had, subJect to the review and determination of the Federal Reserve Board, established a rate of 5c,Z, in lieu of 61 now obtaining, said rate to be effective simultaneous with the adoption of modified rates by the other ?PA reserve banks. :!r. Plz.Ltt roved that the Kansas City rate be made ; met ion lost. It was then, won motion, voted to appxo ve the 5(:: rate for the Federal Reserve Bank of Kansas City, said rate to be effective tomorrow. Kr. Platt voted_ "no". CI-overnor Harding stated that the Board of Directors of the Federal --uve Bank of Atlanta had. voted to reduce the rate of discount at that taw, from 64",-.: to 51 uoon all classes of paper of all maturities. Approved; Governor Harding being authorized, to rake announcement of this action tomorrow. Nr. Platt voted "no". Draft of letter dated October 27th, prepared by General Counsel fov, the sip,nature of the Secretary, addressed to the Federal Reserve 4Retit at Chicago, in reply to the alication of the Great Lakes Trust e'arriParIZT of Chicago for the surrender and cancellation of its holdings of in the -Federal Reserve Bank of Chicago, and expressing the opinion that the Federal Reserve Board cannot at this time legally approve the QI)Plica,tion, because liquidation of the Trust Company is to take place on' 11Pon the happenine; of a certain contingency. Ap pro ved -7- Letter dated October 28th, from the Comptroller of the Currency, 4%1:amending that lIrs. Maude tr. Halley be retained as money counter in the Division of Redemption, effective as of October 31, 1921. Approved. Letter dated October 31st, from the Comptroller of the Currency, °commending approval of a salary of4,000 per annum to be paid to Mr. 11711liarn C. Evans, National Bank Examiner in the liv:Telfth Federal Reserve istri.et Approved. Letter dated October 28th, from the Comptroller of the Currency, ramending approval of a salary of?t*,3,000 per annum to be paid to Mr; Aarr ed Boysen. National Bank Examiner in the Third Federal Reserve Dist let. Approved. Letter dated October 31st, from the Comptroller of the Currency, reef\ rending approval of a salary of :16,000 per annum to be paid to Mr. Jo„ Et -P11 IL Logan, National Bank Examiner in the Twelfth Federal Reserve 3)ietri et Appio ved. 4 PM, IL T IITS 0 COLMITTETE NO. 1: Dated October 29th, Recommending chtm -;es in stock at Federal Reserve :2ariks, as set forth in the auxiliary minute book as of this date. Approved. Dated October 26th, lecormending action on applications for fiduciary If 31st, Dowers, as set forth in the auxiliary minute book as of this date. Approved. At 5:30 p.m. the meeting adjourned. Secretary.
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