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U')' Aot- At a regular meeting of the Federal Reserve Board held in the office of the Board at 10:40 a. m. on Wednesday, November 3, PRESENT: Lir. Hamlin, presiding Mr. Warburg Er. Delano Li'. Harding Miller 1.:r. Williams Er. Willis, Secretary. The minutes of the meeting of October 29, were read and approved. On motion the application of the Federal Reserve Bank of New York for Federal reserve notes, duly recommended by the Committee an Issue and. Redemption, was approved as follows: 5 denomination It 10 :;2,0:.)0,000 15,000,000 4,960,000 On motion applications for the issue of stock in Federal reserve bLnks, duly recommended by Li*. Harding, were approved as follows: Shares. DISTRICT No. 9. First National Bank Midland, S. Dak. 17 924 DIST:2.10T Iro. 11. Jtate National Bank Shares. 300 San Antonio, Texas On motion applications for the surrender of capital stock in Federal reserve banks, duly recommended by Mr. Harding, were approved as follows: shares. DISTRICT No. 10. First National Bank 15 Idaho Springs, Colo. DISTRICT No. 11. Merchants National Bank Dallas, Texas. 160 Er. Hamlin presented a memorandum from the Attorney General of the United States with reference to the power of the Board in making assessments. On motion the memorandum was referred to the Committee on Lecal Matters for study and rel)ort. Mr. Delano stated to - the Board that some difficulty had occurred in the Uinneapolis Bank, that Mr. Rich was in the city and would like to meet either the Board or a eornittee thereof. The point at issue re- lated to the status of Er. C. R. Losher, and the matter had reached such a stage as to call in question the .7,-ood relations between Mr. Rich and the Board of Di- 925 rectors of the Bank, Mr. aich feeling that he shoUld receive the support of the Board in .his attitude, if possible. On motion it was voted that the standing committee having charge of the Minneapolis Bank, (Mr. Warburg and Mr. Delano), should with the Jovernor of the Board, be authorized to meet with Mr. Rich, and to report the results to the Board. The OecretaiT was di- rected to inform Mr. Rich that the meeting would occur at 3 p. m. this day. an notion it was voted that the Board itself should afford La*. Rich an opportunity of appearing before it prior to his departure from the city. The Jecretary of the Board having read a memorandum from Er. Broderick asking authority to employ local stenographic aid in examining Federal reserve banks whenever necessary, the desired authority was, on motion, granted. L:r. Warburg, to whom had been referred the question of the purchase of acceptances drawn on Lonna, presented by Federal Reserve :k;ent Perrin, reported that in his judgment there was no objection to the transactions described by 1,r. Perrin. On motion the report was accepted, and the Secretary of the Board was directed to reply accordingly. 11.r. "Varburg, to whom had been referred a letter from Deputy Federal Reserve Agent Hackney, returned the papers in the case to the Board. The same were received and ordered placed on file. The Secretary of the Board read a memorandum from the Comptroller of the Currency further explaining his attitude with respect to the action of the Board on the Federal Trust Company. The memorandum was received and ordered filed. an motion the following resolution, offered by Li'. Warburg, was adopted: RE3OLVED, That in the absence of any two or more members of the Committee on Issue and Redemption the members of the Executive Committee of the Federal Reserve Board, in order, may act in the places of the members of the Committee on Issue and Redemption. On motion it was voted that this action be made applicable to all of the committee, so that in the absence of any two °is more members of any committee, members of the Executive Committee should be authorized to 927 act in their place. On motion :r. HwAlin was named a member of the Committee on Issue and aedemption. The Committee on Issue and aedemption havin recommended that there be ordered printed :or the Federal eserve BLnk of Richmond. ,3,000,000 each of Federal resevve notes of 0.0 and .::LO denomination, an order was, on motion made to that effect. The Secretor:- of the Board read a letter from Federal eserve .A.,7ent 3osworth relative to the advertis- ily,- of the Badger State Bank of Milwaukee, Wisconsin. The letter was reoeived and ordered La'. Harding stated to the Board that he had read the recent report of the examination of the Federal aeserve Bank of Atlanta. There were several criticisms of the bank, and he must admit that the re-port was not one to be proud of. He thouf;ht it his duty to call the report to the attention of the Board for such action as it micht deem best. On motion it was voted to refer the report to a special committee consistin7 of Hardin,_;, chairman, Mr. Warburg and Mr. Williams, with 928 request that the comittee examine the report, andl report thereon to the Board. Correspondence between the Comptroller of the Currency and Federal Reserve Agent Austin relative to the question of passing upon fiduciary powers, was read and ordered filed. Mr. Delano stated to the Board that Federal reserve notes had now accumulated for redemption in the hands of the Treasury to the amount of .:',9,000,000, abeut 60 per cent of them being fit and about 40 per cent unfit for further use. A large proportion of the accumulation consists of New York and Richmond • notes. Assistant Secretary of the Treasury Malburn said Mr. Delano, desires authority to ship the fit notes to the issuing banks, and to present the unfit to the Comptroller of the Currency, charging the cost of the clerical work involved against the Redemption Fund. On motion the foregoing matter was referred to the Committee on Issue and Redemption for report. The Secretary of the Board road a letter, 929 from 2ederal Reserve Agent Wellborn relative to the Purchase of warrants by the Aderal Reserve Bank of Atlanta. On motion the communication with attached documents, was referreu to Er. Harding, in consultation with Counsel, for report. The Secretalv of the Board having read a letter from Governor Rhoads of Philadelphia, asking , 0 Borough of Elkland permission to retain a ,:1,0.) warrant under exception to the Board's warrant regulation, the request was on motion granted. An application from Governor Aiken of Boston for power to buy OO,OOO Jtate of Vermont loan, was on motion granted. A letter from Governor Jtrong of New York suggesting a change in the terms of the Board's reulations as to municipal warrants, having been read the same was referred to Er. Warburg in consultation with Counsel. The 6ecretary of the Board read a letter from Er. R. H. Ilalone relative to the appointment o2 a denuty 2edoral reserve agent at Eansas 3it-. The letter was received and ordered filed. 930 A letter from the Comptroller of the Currency relative to the question of early transfer of member banks' reserves to Federal reserve banks, was read to the Board and, on motion, referred to the a:ecutive Committee. A letter from Federal Reserve Agent Perrin relative to the legal situation in California as affecting savings accounts in member banks, was ordered referred to Mr. Miller and Counsel in consultation with Mr. Perrin. The Secretary of the Board having presented 'certain correspondence relative to a proposal made by Federal Reserve Agent Miller for reduction of the amount of capital stock of Federal reserve banks, the same was referred to the Executive,Committee. The Secretary of the Board having presented a letter from Federal Reserve Agent Wellborn relative to the selection of electors by member banks, he was directed to send a suitable reply in consultation with Counsel* A letter from the cashier of the Jecond :Tational Bank of Cincinnati relating to the form of C.1 • acceptances, was read and ordered filed. 2, letter from Governor 1,:cpougal of Chicago relative to a joint meeting of the Governors' e::ecutive cul—ittee and tne Board having been read, the Secretary was directed to obtain at once tne full re-4 port of the Conference of Governors. On motion it was voted that the date for the proposed joint conference le set for Novamber 16. Delano submitted a draft of a proposed letter to all Federal reserve agents relating to the question of local agencies of Federal reserve banks. Tho letter was approved and ordered transmitted. A letter from Governor Aiken of Boston relative to the early a4otment of bowls to Federal reserve banks, having been road, was referred to :Ir. Warburg in consultation with Counsel, for report. A memorandum of Uounsel relative to the exercise of fiduciary powers in the states eL „Tising the twelfth district, 'laving been presented to the Board, was on motion roferre'2 to the Com„littee on Legal :jotters. A letter sent by iii'. Harding to Federal 9 .Aoserve'dgent Wellborn relativo to open mark t operations at New Orleans, was ordered circulated. On motion at 1:30 p. m. the Board adjourned to meet subject to the call of the Jecretary. APPROVED: a
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