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At a special meeting of the Federal Reserve Board,
held in the office of the Board on October 26, 1918, at
3 P. Li•,
PRESENT: Mr.
Er.
Mr.
Mr.
Mr.

narding, presiding
Strauss
Miller
Williams
nroderick, Secretary.

Business was presented and disposed of as follows:
Telegram dated October 26th, from Federal Reserve
Agent at Atlanta, advising that Cashier Stiles of the Jacksonville nranch of the Federal Reserve Bank of Atlanta had
tendered his resignation.
voted.
Letter dated October 18th, from Dr. n. Parker
•r

fr;-

Willis, Chief of the Division of Analysis and Research, giving plan of investigation of the following topics:
1. Trade acceptance inquiry;
2. uold policy inquiry;
3. Federal Reserve note inquiry.
Approved.
Form letters submitted by Dr. Willis, to be sent
to merchants, banks and bankers, requesting certain data
for use in connection with compilation work of the Division
of Analysis and Research.
Approved.
uovernor Harding reported the purchase of special

2,70 certificates of indebtedness of tne United States for




-2deposit with the Comptroller of the Currency as collateral for Federal Eeserve bank notes, as follows:
For Federal Reserve Bank of:
New xork,
Boston,
Minneapolis,

Date
Oct.26,1918

Amount
14;5,000,0W
2,000,000
500,000

Approved.
uovernor Harding reported that Secretary McAdoo
had formally approved the minutes of the meeting of October
22d, at which the policy was adopted in re changes in reserve status of banks in outlying sections of reserve and
central reserve cities, in pursuance to the provisions of
Section 19 of the Federal Reserve Act.
Letter from Counsel dated October 26th, in re
criticism of opinion rendered in re credit desired by International Products Company.
Tabled for further consideration by the
Board. Papers referred to Yr. Strauss for his
information.
Letter dated October 25th, from Deputy uovernor
Case of the Federal Reserve Bank of New Xork in re rediscount of customers' notes given for tne purpose of carrying
Fourth Liberty Loan bonds and secured thereby.




Referred to Counsel for opinion.
Application of Old National Bank, Spokane, Wash-

-3ington, for authority to accept drafts and bills of exchange up to 100/0 of its capital and surplus, under the
provisions of Section 13.
Approved upon the understanding that
the Spokane Branch be instructed to keep in
touch with this Bank and ascertain if management is carrying out promises with respect
to reduction of slow and doubtful items appearing on last examination.
Article for insertion in November Bulletin in re
examination of State Bank members.
Approved.
Memorandum by Secretary dated October 17th, in re
examination of Uuaranty Trust Company of New York.
Voted that, in order to attain uniformity in the standard of examinations in
future, cooperative examinations of State bank
members of the Federal Reserve System will be
conducted in all States in which arrangements
have been effected whereby examiners from the
staff of the Board or of the Federal lieserve
banks may act with the examination staff of the
State in which such examinations have not heretofore been made; and, in addition, special independent credit examinations of such members
will be held.
(At this point Mr. Williams joined the meeting)
Memorandum by Seoretary dated October 25th, in re
special certificates purchased that day to cover debit
balance in Treasury's General Account.




Noted.

1401

-4Letter dated October 23d, from uovernor of the
Federal Reserve Bank of Minneapolis, and two letters dated
October 23d, from Federal Reserve Agent at Minneapolis in
re recommending modification of Board's ruling with respect
to the classification of electoral groups for class "A" and
class "B" directors.
Voted to disapprove.
Memorandum dated October 25th, from Comptroller of
rethe Currency, submitting abstract of Schedule 31 of last
port of examination in regard to "Affiliated Companies".
Ordered circulated.
Proposed letter dated October 25th, to be addressed
to First National Bank of Duluth, Minn., stating that advanced consideration will be given its application for the
exercise of fiduciary powers.
Approved.
REPORTS OF COMMITTEE NO. 1:
Dated October 2bth, recommending admission of State institutions as set forth in the auxiliary
minute book as of this date, subject to
the conditions stated in the individual
reports attached to each application.
Dated October 25th, recommending changes in stock at Federal Eeserve nanks as set forth in the
auxiliary minute book as of this date.




-5CHANGES IN STAFF:
Dated October 23d, recommending approval of increase in
salary of Examiner William Jo Duane from
43,600 to 0,900 per annum, effective
November 1, 1918.
Approved.
At 4:20 P. M., the meeting adjourned. ,

Secretary.
ApprOved: