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897 A meeting of the Federal Reserve Board was held in the office of the Board on Thursday, November 4, 1920, at 11:05 a.m. PRI'SENT: The Mr. Mr. Mr. Mr. Mr. Governor Platt Miller Wills Williams Hoxton, Secretary. PRESENT ALSO: Mr. Logan, General Counsel. Minutes of the meeting of the Board held iTovember 3rd were read, and. on motion, approved. Business was presented and disposed of as follows: The Governor reaorted the reserve positions of the several Federal Reserve banks as at close of business November 1st, and the status of rediscounts between the Federal Reserve banks as of the same date. The Governor reported rediscount transactions, menber bank promissory notes secured by Government obligations, rates 7 % and 7:7 on C oinme rc ial paper, as follows: Date Nov. Nov. Nov. Nov. Bank Rediscount in 3d. Kansas City 3d, Minneapolis 1st, Dallas 3d, St.Louis With Boston Cl eveland Cleveland Philadelphia Amourt r 3,001,555 1,505,922.55 2,000,000 2,000,000 4,000,000 Maturities 12-15 days 44-75 " 1-90 11-15 " 31-60 Ii Memorandum dated :overaber 3rd, by the General. Counsel, with reference to the catension of provisions of Section 11 (m) Of the Federal Reserve Act. On motion, duly seconded, it was voted that the Board recommend to Congress the extension for one year, from January 1, 1921, the provisions of Section 11 (m); the natter to be referred to General Counsel for oreparation of the necessary bill. u98 -2- k RET2ORTS OF C07:TITT.LE NO. 1: Dated Nov. 3rd, Recommending approval of application for fiduciary powers as set forth in the auxiliary minute book of this date. Approved. Dated Nov. 3rd, Recommeriling approval 0,' the appointment of George C. Whelan as Technical Clerk in the Board's Gold SettleInt Division, at a salary of '1.440. per annum. Approved. Dated Nov. 3rd, Recomending approval of the of Miss Mary C. Williams, as Clerk-Typist, in the Division of Reports & Statistics. at a salary of ''11200. per annum, effective November 0, 1920. Approved. Dated Nov. 3rd, Recommending approval of increases in the salaries of the following employes of the Boa rd., effective November 1, 1920: _Division of Reports and Statistics: From 1.610. F. A. Walker 1465. Miss Edith Small 1465 Miss Isabel Baer Miss ,?.Betty Stewart 1465 Assistant to Governor: Miss Ruth L. Martin Miss Katherine I. Latterman To '1760. 1600. 1600. 1600. 1440. 1500. 1440. 1500. ;.)proved. Dated Nov. 1st, Submitting resignation of 'Jr. Jams S. Kean, as Assistant Chief Clerk of the Federal Reserve Board, effective at the close of business November 15, 1920. Accept ed. Other business was presented and disposed of as fol- (At this point Mr. Williams joined the meeting.) Telegram, dated November 3rd, from the Governor of the Fedei.al Reserve Bank of Chicao, requesting approval of the - letting of a contract for vault construction to the York Safe and Lock Company, in the amount of 700,000. Approved. Letter dated Kovember 1, 1920, from Governor Miller of the Federal Reserve Bank of Kansas City, calling attention to certain conditions in the Tenth Federal Reserve District. In view of the situation, Governor Miller asks if his bank would be warranted in advancing upon paper ineligible, but undoubtedly r:ood, and, i: it should be necessary for certain banks to merge, whether the Comptroller would permit these consolidations Without the usual foLnulities. determined that After full discussion, it vas Wills should, in behalf of the Board, visit the Federal Reserve Bank of Kansas City, leaving Washington this afternoon. Upon mot ion, it was resolved to authorize, for a period of 30 days, such member bans in the Tenth Federal Reserve District as may be designated by Mr. Mils, to offer for rediscount to the Federal Reserve Bank of Kansas City eligible paper which nay have originated in non-member banks. Governor Harding was requested to wire Governor Miller that the Board has no authority to permit discount of ineligible paper as defined by Section 13, but has authorized Mr. Wills to approve list of member banks to act as medium or agent for non member bank applicants. In reply to the question of expediting such mergers affecting national banks, as might become necessary under the existing conditions, the Comptroller of the Currency transmitted to Governor Miller the following telegram: 900 -4- "Your letter first instant to Governor Harding. If consolidation of certain banks becoms desirable, see no reason why this may not be successfully accomplished by having preliminary contract made by directors of one bank agreeing to purchase all assets of the other, ani guaranteeing all its deposits. The effect of this would be a de facto consolidation and formal resolut ions of stockholders looking to actual merger or coiperate consolidation can be passed later if this is deemed desirable." (At this point Mr. Williams withdrew from the meeting.) Liemorarriura dated November 4th, by General Counsel,.submitting an opinion as to the legality of Federal Reserve banks Providing the Treasury with funds required for the purchase of additional equipment necessary to carrying out the currency Printing program for the fiscal year 1922. Referred to the Governor with power. After further discussion of the Kansas City situation, Upon motion by Mr. Platt, Mr. 'Wills was authorized, in his discretion, to direct that the Federal Reserve Bank of Kansas City increase its basic rate fbr commercial and agricultural paper from 6% to 7%. At 1 p.m. the meeting adjourned. Secretary. Approved:
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