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At a regular meeting of the Federal Reserve
Board held in the office of the Board at 11:00 a. in.,
Thursday, October 1, 1914
PRESENT:
Mr.,Hamlin
Er. Williams
Mr. Delano
Mr. Warburg
. Miller.
The Governor of the Board presided and Er. H.
P. Willis acted as secretary to the meeting.
The reading of the minutes of the Preceding
meeting was deferred..
The Governor presented a dispatch from the
banks of San Francisco with regard to the proposed gold
fund.
After a discussion of drafts of letters to be
sent t
"0" directors it was voted on motion duly
made and seconded that the proposed drafts be approved
and that the letters be transmitted.
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On motion the fifth section of the committee
report on the steps of procedure to be followed in organing Federal Reserve Banks was adopted as amended.
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174
The full report of the couilittee as thus
adopted is as follows:
PROPOSED PRELMINARY REPORT OF PROGRESS ON THE
STEPS OP PROCEDURE TO BE FOLLO,ED
IN ORGANIZING FEDERAL RESERVE BANKS
FIRST:
As soon as the selection of Class "0" directors is completed, the Secretary of the Board,
on behalf of the Federal Reserve Board, shall notify the new directors and those previously elected
(Class "A" and "Be') of the selections made. Accomanyinh this notice, there shall be instructions
to the 2ederal reserve agent acting as chairman
of the reserve bank of the district, to call the
Board together, organize and proceed to the election of a Governor, who shall be the active manager
of the bank and the selection of a member of the
Advisory Council, but no other officers.
SECO:LTD:
The Secretary shall send to the Chairman and
Federal Reserve Agent of each bank: (A) tentative
by-laws; (B) tentative organization chart, explaining that these are offered for the consideration
of the Reserve Agent and the Board of the bank; that
they have not had the final approval of the Federal
Reserve Board but represent the work of certain experts appointed by tie Organization Committee. These
letters shall state, among other things, that it is
proposed in the near future to hold a meeting in
Washington to discuss various phases of the subject
which it is proposed to go over in considerable
detail. In the meantime careful study of the suggestions is requested.
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THIRD:
It is proposed that such portion of the
report prepared for the Organization Comrdttee
by Messrs. Willis and others, as may appear to
be of permanent value as a book of reference and
for the guidance of the Reserve Banks, shall be
reprinted as soon as possible and sent to the
Reserve Agents in such quantity as to enable
them to distribute them to all concerned. To
this end, the Secretary of the Board is requested
to make a careful review of the report as originally printed, and offer to this Committee his
suggestions as to what portions of it should be
reprinted.
FOURTH:
During the early period of its organization,
the Federal Reserve Bank of each district will not
need anything elaborate in the way of an accounting system, but they will need: (A) a general
ledger, (B) a stock subscription ledger, (i) a
book of stock subscription receipts. The Organization Committee caused the forms for the above
to be prepared, and it is desirable that the Secretary shall cause these to be set up to supply
each bank with them from headquarters, upon requisition of the Reserve Agent for such Reserve Banks
as wish to avail themselves of this •privilege.
FIFTH:
It is proposed that there shall be a meeting
held in Washington, within two to three weeks after
the selection of Glass "C" directors has been given
out, to which directors of the 2ederal Reserve Banks
will be requested to send a committee as large as
they choose, but not less than three. To this end
the Secretary is directed to prepare a letter of
invitation in the name of the Governor of the Board
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176
to be sent to the Chairman of each of the Federal
leserve Banks, requesting the directors to send
delegates to the meeting, as herein specified,
explaining in general terms the plan and scope of
the r,eeting.
While this invitation may result in a rather
large meeting, it is assumed that, after the usual
formal greetings and a preliminary statement of
the objects of the meeting, it will naturally break
up and subdivide into committees to discuss various
phases of the subject. Among other things to be
considered and in dealing with which committees will
be appointed on
Forms of Organization,
By-laws,
A Definition of Commercial Parer,
Uniform methods to be adopted by Federal
Reserve Banks in respect to statements
to be made; statistics; and accounting
methods.
The Federal Reserve Board also desires this opportunity of listening to such suggestions as the delegates
from the various aeserve Banks may have to offer.
SIXTH:
The Secretary is authorized to make an announcement
to manufacturers of various mechanical accounting machines,
inviting them to make such suggestions and criticisms in
regard to forms as they 1,Ay wish to make, as early as
possible.
On motion the following salaries were established
for Federal leserve Agents:
Pace
AUL__
•177
Boston
New York
Philadelphia
Cleveland
Richmond
Chicago
St. Louis
Minneapolis
010,000
16,000
10,000
10,000
10,000
10,000
10,000
7,500
Telegrams requestidc; conferences with the
Class "C" directors of the several Federal Reserve
Banks were ordered sent to the directors of each bank.
1.1% Williams reported to the Board facts regarding the Class "0" directors in the Federal Reserve
Bank of Chicago.
On motion it was voted that a copy of the
telegram received from the banks of San Francisco be
transmitted to the Nwr York Gold Fund Committee and also
to Mr. A. L. Mills of Portland, Oregon, for comment.
On motion, at 12:00 noon, the Board adjourned
to meet at 3:00 p. m. this day.
APPROVED:
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