Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, November 16, 1921, Volume 8, Part 2

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A meeting of the Federal Reserve Board was held in the office
Of the Board on Wednesday, November 16, 1921, at 12:00 a.m.
PRZSMIT:

Mr.
Mr.
Mr.
Mr.
Mr.

Platt
Hamlin
Miller
Mitchell
Hoxton , Secretary

Minutes of the meeting of the Board held November 15th were read.
4141 en motion approved.
The Vice Governor reported the reserve positions of the several
?ecierea Reserve banks as at close of business Noveriber 14th, and the status
Of rediscounts between the Federal Reserve banks
as of the same date.
Two letters dated November 9th, from the Federal Reserve Agent
t 421 Flan cisco, transmitting with favorable recoil-mend ation, the appli4tiorl of the B ank of Italy to establish a branch at the corner of Eighth
ktellile and Irving street, and a branch at the corner of Ninth Avenue
and
eithent street, San Francisco.
Approved, Mr. Mitchell voting "No". Mr. Mitchell
stated that he was unalterably opposed to the granting
of authority to the Bank of Italy for the establishm9it
of any additional branches.
Letter dated November 9th, from the Governor of the Federal Res"Bank of New York, submitting the details of certain contracts in
Canwith the construction of the new bank building.
No ted.
Letter dated November 16th, from the Railway Loan Advisory Comtee of the Federal Reserve Board, recomrrending approval
of the form
or 0
,
°ligation submitted by the Wheeling & Lake Erie Railway Company for a




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1c)an, in four parts, of 4,460,000, the carrier electing at this time
to take over the first part of the loan amounting to

260,000, under

the provisions of Section 210 of the Transportation Act, 1920, as amended.
Approved.
Vice Governor Platt submitted to the Bard a letter of
oYember 12th from the Deputy Governor of the Federal Reserve Bank of
Atlanta, setting forth the position of that bank with regard to the disPute with the Federal Reserve hank of Boston, upon which matter action
Was

taken by the Federal Reserve Board at its meeting on November 15th.
It was the sense of the meeting, that while this
dispute was settled by the Board at its meeting yesterday, with respect to the specific case in question, the
Federal Reserve Board should secure an exoression of
opinion from all of the Federal Reserve banks in the matter of rebating upon inter-bank discounts with a view to
securing a uniform practice among the Federal Reserve
banks in the matter of rebating as between themselves and
as between the Federal Reserve banks and their member
banks.
Vice Governor Platt submitted to the Board a telegram from

the Governor of the Federal Reserve Bank of Minneapolis, advising that

that bank is continuing to require a margin of 20; upon all adiances sered by Liberty bonds and Victory notes.
Upon motion by Mr. Miller, the Vice Governor was
requested to inquire of the Federal Reserve Bank of
Minneapolis, why this requirement is mide.




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Reference was made to the condition of member banks in different
Parts of the country, and a discussion ensued regarding the need of a
More effective supervision by the Federal Reserve Board and especially
the need of a greater efficiency in the examination of member banks.
Upon motion, a committee, consisting of 11-. Platt,
Mr. Mitchell and Mr. Crissincrer, was designated, it being
the function of this Committee to make an investigation
of the whole subject of member bank examinations, and to
advise the Board what steps should be taken with a view to
securing the more effective supervision desired. This Committee was further authorized to constitute, for its assistance, an auxiliary committee chosen from among the
Governors and Federal Reserve Agents of the several Federal
Reserve banks.

IIRPORT3 OF COMMITTEE NO. 1.

Dated November 15th, recommending certain action on applications
for fiduciary powers, as set forth in the
auxiliary minute book as of this date.
Approved.
Dated November 15th, recommending action on applications for admission of state institutions, subject to the
conditions stated in the individual reports
attached to the applications, as set forth in
the auxiliary minute book as of this date.
Approved.

At 1:00 p.m. the meeting adjourned.

Approved
Secretary.
Vice Governor