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At a regular meeting of the Federal Reserve Board held in the office of the Governor on Tuesday, Sel,tember 11, at eleven a.m., PRESENT: - . Harding, presiding, 2:1r. Hamlin, . Delano, narburg, Er. tinhorns, Mr. V,illis, Secretary. The minutes of the meeting of the Board held on Se tember 7 were read and, on motion, approved. The minutes of the meetings of the Iecutive Jommittee held on September 6 and 10 were read and, on motion, approved,and the action therein set forth ratified. Governor Harding presented business as follows: For the information of the Board it was explained that arrangements had been made to furnish the Treasurer of the United States with Federal reserve notes for payment over the counter against gold certificate, credited to the Gold Settlement fund. The method of passing upon gold exports which is now in effect was explained, with special reference to the management of those exports leaving New Orleans, and as to which information was desired from the New Orleans Branch. A telegram from Federal deserve ngent .ellborn assenting to the proposed plan for managing gold exports shipments from I:ew Orleans, was (7120 also read. The substance of a message received from ;(3vernor Strong on September 10 stating that the Federal Reserve Bank of New York was imposing a penalty of 6;.; interest, payable monthly, upon unpaid reserves of member banks, but that other Federal reserve banks were probably not acting as vigorously in the matter as they should, was stated to the Board. The draft of a letter to all Federal reserve banks with reference to the imposition of penalties on deficient reserves, and asking for information as to what these banks are doing, was presented, and, on motion, the transmission of the letter proposed was authorized, subject to minor modifications. The docket for the day was then taken up. A letter from Federal Reserve Agent Wellborn relative to the ownership of stock by members of his family, and informing the Board of the transfer of such stock, was read and noted. A letter from Secretary J. F. Curtis of the Federal Reserve Bank of New York with reference to the acceptance of the examination of State banking authorities of New York, New Jersey and Connecticut, was read and, on motion, refer- 221 Ted to the Committee on Operation of the Federal Reserve Bank of Boston. A letter from the Security National Bank of Dallas asking for permission to act as a medium for the discount of nonmember bank notes, was read and discussed and, on motion, referred to Governor Harding with power to act. Governor Harding reported a conversation with Lir. H. C. Hoover who had stated to him that wheat was not being placed on the market in its accustomed volume at the new rate of 42.20 per bushel, farmers having arranged to hold it back. He desired to have the Board direct the banks to decline to discount grain paper during the continuance of this condition. The matter was discussed, but no action taken. The application of the Equitable Trust Company for power to ship gold in order to create exchange, and a reply sent by the Assistant Secretary of the Treasury referring the Company to the Federal Reserve Bank of New York, were read for the information of the Board. Governor Harding stated that he had been receiving many letters from members of Congress with reference to the 41-44 ,0 ,9 foreign exchange situation. He called attention to cer- tain letters of the kind, and also to a standard form of reply he had been transmitting. He then read to the Board a general letter received from Honorable R. Owen discussing the whole situation. • The matter was referred o the Executive L;ommittee with power to pre- pare an nswer to Senator Owen and report the same back to the Board. On recommendation of the lommittee on Membership, changs in stock at Federal reserve banks were read and approved as follows: 4plications for original stock. shares. 150 66 216 District No. 1. The Back Bay National Bank Tanners National Bank Boston, Mass. Woburn, Mass. District No. 2. Union National Bank Friendship, N.Y. District No. 5. First National Bank Mount Hope, W.Va. District No. 7. First National Bank West Bend, Wis. District No. 9. First National Bank Mond. 66 66 9 9 50 50 15 15 1,pp1ications for original stock (Con.) District No. 10. Central National Bank Farmers National Bank First National Bank Citizens National Bank District No. 12. First National Bank Okmulgee, Okla. Sulphur, Okla. Tipton, Okla. Colby, Kans. 60 30 15 29 Bishop, Cal. Total 16 18 506 134 "pplications for Additional stock. District No. 2. Croghan National Bank District No. 3. Bituminous National Bank Croghan, N.Y. 3 3 L'inburne, Pa. 3 3 District No. 4. First National Bank First National Bank Carlisle, Ky. 1,vonmore, Pa. 1 6 7 District No. 5. First National Bank Peoples National Bank First National Bank Linoolnton, N.J. Salisbury, York, S.J. 12 15 12 39 Huntsville, Ala. 1,1400n, Ga. Pensacola, Fla. Lbbeville, Total Applications for Surrender of stock. 3 4 123 1 District No. 6. First National Bank Bibb Rational .bank American National Bank Henry National Bank District No. 10. First National Bank District No. 11. Citizens National Bank Denver, Colo. uanah, Tex Total 131 163 Shares 450 450 32 32 462 The application of the Citizens National Bank of Pineville, :;est Virginia, for the surrender of 36 shares of capital stock, was also approved. Upon recommendation of the Committee on staff, the salary of 1:r. Harry M. Poster as examiner in the Kansas City District, was approved at v2400 per annum, effective when Mr. Foster takes up his duties. A report of the Committee on Staff granting Miss Mabel Mickley leave of absence without pay for as long as may be necessary, subsequent to the exhaustion of her regular leave and sick leave, was approved. A report of the Committee on Staff, dated Septem- ber 11, with reference to certain changes in salaries at the Federal Reserve Bank of Dallas, was approved. Mr. Delano, as a special Committee on Reserve Cities, reported adversely to the request of a banker of Charleston, c' C., that the designation of that place as a reserve city be cancelled. Aln opinion of Counsel with reference to a plan proposed by the National Bank of Topton, 1. Va., which desires to issue 410 certificates of participation in a block of Liberty Bonds owned by the bank, and to be trans- o ferred by it to its trust department, was referred to the Oommittee on Law. n letter from the International Harvester Company renewing inquiries made by it on June 7 with reference to trade acceptances, was referred to counsel. Governor Harding reported that a committee from the ?ederal Reserve Bank of Xichmond had visited Baltimore to look into the 4uestion of quarters for the proposed branch at that place, and stated that the committee would probably visit ,iashinton shortly for a conference with the Board. 11r. .0arburg reported the result of a conversation with Mr. Levi ,. Aue, President of the Philadelphia National Bank, with reference to the proposed "YicKellar Amendment' granting banks power to make loans in excess of 1O capital and surplus. of their The matter was discussed, but no action taken. letter from President 3r1ggs of the Bank of New York, with reference to a possible increase of acceptance powers beyond the present 100,1 limit, was read, and, on motion, 7,:r. Warburg was authorized to transmit to him copy of the regulations already formulated for the conduct of business by certain foreign banks as probably providing a basis for meeting his 4C- ceptance requirements. On motion, the authority of the Bank of California of San Francisco to accept drafts and bills of exchange up to 100'14 of its capital and surplus, was renewed, it being noted, however, that under the Board's recent ruling such renewal was not technically necessary. Upon recommendation of the Committee on 'embership, the, following state banks were ordered admitted to the Federal reserve system upon the conditions set forth by the Committee on Lembership in each case: Commercial Savings Bank Hingham State Bank First 2tate Bank Mason City, Iowa, Hingham, Montana, Opheim, Lontana. On motion at 12.35 p.m. the Board adjourned to meet on dednesday, September 12, at eleven a.m. Oecretary. Chairman.
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