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825 At a regular neetin-: of the Pederal Reserve Board held in the office of the Board at 11:00 a. In. on Wednesday, October 6. PRESENT: Lir. Hamlin, presiding Er. 77arburg Lir. Delano Li.. Harding 1Ir. Willis, Secretary. The minutes of the meeting of October 4 were read and approved.. The minutes of the Board meeting of September 2 and 3 were taken up for consideration, and the Secretary of the Board read a memorandum from Ur. L:cAdoo suggesting a form of statement of his own remarks on September 2. The memorandum was accepted as a correction of the minutes, and on motion, the minutes of the Board meeting of those dates were approved. Lr. Warburg reported to the Board that he had consulted with Er. Lalburn concerning the proposed plan of issuing interim certificates in lieu of Government thirty year 3% bonds, pending the printing of the latter, but had become convinced that the plan was not feasible, and had so informed Governor ahoads of Philadelphia who ) 80C originally offered the suggestion. On motion applications for Federal reserve notes, duly recommended by the Committee on Issue and Redemption, were approved as follows: For the Fej.oral Reserve Bank of Dallas, ,320,000 in the following denominations: 5 denomination 10 :;400,000 520,000 400,000 For the Federal Reserve Bank of Cleveland, 000,000 in the following denominations: ,A0 denomination 20 50 L.Lr /100,000 400,000 200,000 Hamlin presented a letter from The Ila- tional Bank of Norwalk, Connecticut, offering .)111,000 . of Panama 2f, bonds, and 1.30,000 of 2; consols, under the terms of the Federal Reserve Act. On motion it was voted that the 3ecretary of the Board inform the bank of the action recently taken on this matter, and that he maintain a file of offers or applications as the same come in from banks authorized•to make such tenders of bonds. 11r. Hamlin presented a letter from Federal 827 aeserve Agent Curtiss making inquiry whether Federal, reserve banks could rediscount paper for savings banks, or whether the Board would grant authority to make such rediscounts under the clause authorizin- it to exercise that function. On motion it was voted that the Secre- tary reply stating that the Board is not disposed to take this subject 11-1-) now for consideration, but will bear it in mind in connection with later action. On motion, in accordance with the recommenda- • tion of the Com:aittee on State Banks, the following action upon applications of member banks for fiduciary powers, was approved: Applications approved: First National Bank, Pendleton Oregon. Aberdeen National Bank, Aberdeen, S. D. Referred back to Federal Reserve Agent: city National Bank, Belfast, 7:aine. Rejected: Capital National Bank, Salem, Oregon. On motion the following al,i lications for stock 1 in Federal reserve banks, duly recommended by the Corn mittee on State Banks, were approved: 828 DISTRICT NO. 8. Staunton National Bank SharTs. Staunton, Ill. 17 Florence, S. Dak. Bryant, 3. Dak. 18 18 DISTRICT NO. 9. First National Bank First National Bank DISTRICT NO. 11. Farmers & lIerchants National Bank Kaufman, Te:cas. 45 DISTRICT NO. 9. First National Bank Bridgewater, S. D. - DISTRICT NO. 11. State National Bank Albuquerque, IT. M. 30 On motion the following applications for the surrender of stock in 2ederal reserve banks, duly recommended by the Committee on (State Banks, were .approved: DISTRICT No. 10. First National Bank Heavener, Okla. 19 Lr. Hamlin stated to the Board that it was the opinion of the Federal Reserve agent at Boston that the Federal Trust Company of that place would probably not enter the system should the Board insist upon action markingdown its securities to current value. On Motion the auestion of requiring such readjustment of 829 Taocurities, was referred to the Committee on Jtate , Banks. On motion a report of Mr. Harding relative to re(,iscounts for the Hibernia Balk and Trust Company of New Orleans, was laid on the table. The question of control of the stock of Federal rese:ve notes at New Orleans coming up, the Secretary of the Board presented certain memoranda from Counsel. On motion it was voted that the Comptroller of the Currency be advised that notes needed for use in New Orleans shall henceforward be held at the Jubtreasury in that place for his account, and shall be released subject to alications duly made upon the regular form, of requisition approved in the same way as for other issues of Federal reserve notes. A report of Mr. Harding relative to the letter of Federal Reserve Agent Jay regarding the obtaining of credit information concerning certain New Jersey banks which have applied for fiduciary powers, was road and the contents noted. On motion it was voted that the Governor of the Board submit to the Board the result of an inveciti- 830 fation recently made by him with reference to the. Comptrolier's authority and responsibility regarding information relating to the condition of member banks. The Secretary of the Board read reports of the Committee on Staff declining the application of, Elizabeth Blackistone for appointment on the staff of the Board, accepting the resignation of James Hoover, subject to 30 days' leave of absence, and accenting the resignation of Harvey S. Nicholson as messenger, the said Nicholson, however, to be retained on the staff for duty as janitor at 010 per month. On motion the recommendations of the Com_littee in these particulars were aiTroved. The Secretary of the Board having presented memoranda prepared by Counsel relative to the proposed transfer of banks in Louisiana from the Dallas to the Atlanta district, it was, on motion voted that Mr. War• burg Er. Harding and the Secretary of the Board prepare and send out a letter to the various banks in Louisiana asking an expression of their opinion as to the proposed -transfer. 811 r. itai:lin repored the result of an investigation into the case of Deruty Federal Reserve Agent Hackney of Boston, and recommended the transmission of a general letter to all Federal reserve agents informing them in all those cases where the deputy is paid on a fee system, such fee shall be paid only when the Federal reserve agent has specifically requested the deputy to render service. It was aTreed that the Governor pre- pare such a letter for transmission. The Secretary of the Board read a letter from 212ral eserve Agent Wellborn relative to the retaining fee of Counsel for the Branch Bank at :Tew Orleans. On motion the fee specified was apxroved, and the letter was referred back to :L.:I:. Harding for reply. The question recurrinc of the appointment of a committee to attend the Linneapolis conference of Governors of reserve banks, it was on motion voted, that the Board should say to the Governors that if the public business permits, some member of the Board will doubtless be nlad to attend. The Secretary of the Board presented a report prepared by lir. Warburg at the rerluest of the Board with "8t)Q • reference o.the'eo ablishment of foreign agencies of Federal reserve banks. The report was received*, and on motion, ordered circulated. The Secretary of the Board presented a lotter from Federal Rose Agent Toni on inquiring whether • Federal reserve banks may purchase acceptances of concerns such as °omission houses which do some accepting and discounting. On motion it was voted to cite the terms Of the Regulation to Mr. Tenison, and to say, that the question of eligibility of acceptances or ac-ertors is left to the judr_pent of Federal reserve banks under said regulation. The Board, however, would not wish to see those who are not in the hal) t of accepti arly considered eligible as acceptors.. A letter from Federal Reserve Agent.Tenison, with ref:erence to the question of his salary was read and. noted. The Secretary of the Board presented a letter. from the State Department relative to the payment of =port duties in Chile, and was instrioted to inform the persons interested in the matter,of the action taken. The question of conditions under which the traveling fipenses of members of the Federal Reserve Board should be paid from the funds of the Board, and the preparation of rules to govern the same, were on motion, referred to a special committee consisting o Delano and 1:r. Warburg. The 3ecretary of the Board having presented a letter from Counsel with reference to the eligibility of Governor Seay of Richmond as director of the Bank of Richmond, it was on motion, voted that a redraft be made informing the bank that it is supposed that the holding of the governorship would preclude the possibility of a 9 directorlrepresenting commercial or industrial pursuits. A letter from Federal Reserve Agent Ingle, with reference to the date from which bank dividends shall be computed, was on motion, referred to Counsel. A memorandum from Counsel with reference to the method of accounting for Redemption Fund moneys held by the Treasurer of the United states on behalf of Federal reserve banks, was read and noted. A telegram from Federal Reserve Agent Perrin respecting the date for a meetinf- of reserve agents having been read, it was on motion, voted that the date 834 for this conference be fixed for the first Thursday in :Tovember, (1:ovember 4), the place of meeting to be Washincton, and th.9t it be sur:geste to the re- serve agents that they prepare a careful programme . in advance. The Secretary of the Board called attention to a circular recently sent out by hr. Gordon Jones, a director of the Federal Reserve Bank of :Kansas City, accompanied by a letter to the Board. The letter and circular were noted and ordered filed. The Secretary of the Board called attention to a letter of application from r.r. W. H. Winants for appointment as Deputy Federal Reserve agent at Kansas City. The application was noted and ordered fileo. The ,;ecretary of the Board having asked for the release of an opinion of Counsel of June 23, relative to the conduct of Federal reserve agents, and also a letter of september 25, addressed to assistant treasurers with reference to the form of gold order certificates, it was on motion, agreed that the opinion and letter be released and distributed to reserve agents. 835 Lir, Warburg, to whom had been referred the opinion of Counsel relative to the limit of liability of a single acceptor, reported favorably to the opinion with a slight modification. On motion it was agreed that the opinion as thus changed be transmitted to Federal Reserve Agent Curtiss who had made inquiry concerning the point at issue; but that it should not be published until further notice. On motion at 1:00 p. m. the Board adjourned to meet on Thursday, October 7 at 11:00 a. m. ;,;ocrotary. Chairman.
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