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A meeting of the Federal Reserve Board was held in the office the Board on Tuesday, September 27, 1921, at 11:00 a.m. PRESENT: Governor Harding Mr. Platt Mr. Hamlin Mr. Miller Mr. Mitchell Mr. Crissinger Mr. Hoxton, Secretary. Minutes of the meeting of the Board held September 23d were read. motion approved, as amended. The Governor reported the reserve positions of ths several Fed- reserve banks as at close of business September 24th, and the etat1 13 °f rediscounts between the Federal reserve banks as of the same date. The Governor reported. rediscount transactions, member bank pro- 111188°17 notes secured by Government obligations, rate 6%, as follows: Date SelDt, 26 411t, 26 Bank rediscounting Richmond Atlanta New York Cleveland Dallas Boston With 8°Pt. 26 Amount $10,000,000 1,500,000 2,000,000 1,000,000 Maturities 11-15 days 1-90 et (Commtl.) 1-90 days (Cormel. ) 11-15 clays Letter dated September 24th, from the Railway Loan Advisory CornOf the Federal Reserve Board, zecomananding approval of the form "°bligation submitted by the Aransas Harbor Terminal Railway for a e'r50,OOO, unier the provisions of Section 210 of the Transport- - Act, 1920, as amended. Ap)roved. r;z2t_k. -2- Memorandum dated September 22d, from the Secretary. advising that the minutes of the meeting of the Board on February 26,1921, ordered writ- tEll ill longhand and placed in the confid.ential records of the Board, are "ill segregated from the other minutes, and recommending that these tabliltes be new placed in their regular order in the minute binder for 14clezillg ptuposes, and that they, as well as the stenographic records of the ineetings of February 28th and March 2d, be now recorded as confidential °111ST to the extent that other minutes of the Federal Reserve Board alle so rega rded. Approved. Telegram dated September 24th, from the Chairman of the Federal lieeellre Bank of Cleveland, advising that the Board of Directors of that Bezik ilaat subject to the review and determination of the Federal Reserve established a minimum rate of 5% on open market purchases of eceePtances, said rate having been approved informally yesterday by a InaittitY of the Federal Reserve Board. Upon motion, formally approved. After discussion of the program to be considered for discussion 4t the conference of Governors and Federal Reserve Agents, to be held °et°13er 25th, it was the sense of the Board that this conference should be ma illlY devoted to the internal economy and efficiency of the several era' reserve banks, and the policy which should in future govern the Pecle rel. Reserve System in the rre.tter of the par collection of checks. Gov1440 r Harding stated that he would prepare in written form the remarks ON. 01•0. With Which he will open the conference and would in advance submit a c.c5PY of the proposed opening remarks to the Federal Reserve Board. Letter dated September 24th, from the Governor of the Federal lleserve Bank of Kansas City, requesting approval of the Federal Reserve 4ard for the expenditure of $100,000 for certain real estate in the eitY of Denver, to be purchased, with a view to the erection of a building ter the Denver Branch. Approved. Letter dated September 236., from the Governor of the Federal ReBerle Bank of New York, regarding the matter of an expense account allowed by. the Board of Directors of that Bark for Mr. Snyder, in connection with a t4P to Europe which Mr. Snyder was authorized to make by the Federal 48erte Bank of Now York. Governor Harding was authorized to send a reply, a Copy of which is on file. Letter dated Septenter 24th, from the Federal Reserve Bank of New Y°1‘it ' enclosing, with favorable recommerriation, application of the Bank of 14/141hattan County, Now York City, dated September 24, 1921, for permission t0 accePt drafts drawn by banks anl bankers in the various countries fa 4 gaated by the Board, for the purpose of creating dollar exchange. Approved. Memoranda dated September 24th and 26th, from the Secretary and BSI-Stant Counsel of the Board, advising that the bonds of Federal Ileserte Agents and Assistant Federal Reserve Agents have been duly checked, recommending that the Board approve the bends now covering all Federal -4- Agents and Assistant Federal Reserve Agents; also, recommending that those bonds which have been in force for four years or more be renewed. Upon motion, the Board approved the bonds now covering all Federal Reserve Agents and Assistant Federal Reserve Agents as to the sufficiency of the Sureties thereon and the sufficiency of the amounts thereof, and the Secretary and Counsel of the Board were directed to procure renewal bonds for those bonds which have been in force for four years or wore. Letter dated September 20th, from the Assistant Federal Reserve 4geat — San Francisco, submitting, with favorable recommendation for the 8.13Proval of the Federal •tieserve Board, the application of the Security l'rtlat and Savings Bank of Los Angeles, California, for permission to e8tablish a branch in that city. Appro ved. Telegram dated September 26th, from the Chairman of the Federal "13enk of Dallas, inquiring what action the Board has taken with ileeer to a possible attempt by the Amer lean Bankers Association conCO at Los Angeles to reopen the campaign against the par collection of Dallas might send ' aid suggesting that the Federal Reserve Bank 118tenl l'elpre sentative to Los Angeles with a view to taking part in the disctisetoria. Governor Harding was requested to advise Judge Ramsey that the Board does not approve of the Federal Reserve Bank of Dallas taking any part in the matter. Draft of letter prepared for the signature of Governor Harding, kicll'eased to Mr. Wade H. Cooper, President of the Continental Trust Com1)8.11 Of Washington, D. C•, advising Mr. Cooper that he is in violation of -5- the Provisions of Section 8 of the Clayton Anti -Trust Act, and that unless he l*esigns immediately from either the Continental Trust Company or the thlioll Savings Bank, both of Washington, D. C., in order to terminate his /7101at ion of the Clayton Act, on or before October 3, 1921, the Federal Reaell'e Board, will immediately institute formal proceedings to enforce the law. Approved. Memorandum dated September 27th, from the office of the General C01Theelt with reference to an amendment to the contract between the Federal ilesel"te Bank of Dallas and R. M. Johnson, Receiver of the First National 134111z Of Hearne, Texas. Upon motion, the following resolution was unanimously adopted: WHEREAS a contract of agreement by and between the FM"ER.n., Z -- irarrt BANK OF DALLAS, TEXAS, party of the first part and R.M. as Receiver of the First National Bank of Hearne, Texas, ,,A4Y of the second part, has bean prepared for execution by said. -mirarties for the purpose, among other things, of settling the dif"noes which have heretofore arisen between said party of the mill St part and. the First National Bank of Hearne; aril of compro8Thli3ing the claims of said. party of the first part against the d First National Bfrnic. of Hearne, arising out of monies due the from the latter on account of bills payable to and paper 1,61111er , it`d-soounted by the former; and of dismissing the suit now pendin g in the United States District Court for the Western District Bp.2 ..ezae, in which R.M. Johnson, as Receiver of the First National Of Hearne, Texas, is plaintiff, and the Federal Reserve Bank o. Lianas, Texas, is defendant; ant for other purposes, and. 4 WHERIA,' S said contract of agreement provides that it shall become effective unless and until it is approved by the Comp""Jiler of the Currency 414 the Federal Reserve Board, and -6- WHEREAS, the Federal Reserve Board has examined said. contract ! (2 agreement and has caused it to be examined by its counsel and la satisfied from such exanination that it is in proper legal form szd that the Federal Reserve Bank of Dallas, Texas, has authority to execute such contraat, and. WHEREAS the Federal Reserve Board does not undertake to pass " 04 said contract with respect to the desirability of its execut ion 1110M the standpoint of the parties thereto, or with respect to other estions of policy or of financial advantage involved therein, but atends by this resolution to limit its approval specifically to e stions of the legality of the contract and of the authority of. hG Federal Reserve Bank of Dallas, Texas, to execute said contract. r Now THEREFORE, BE IT RESOLVED, that the Federal Reserve Board b,:ebST approves the contract of agreement to be executed by and 417een the Federal Reserve Bank of Dallas, Texas, and R.M.Johnson, : ; 8 Receiver of the First National Bank of Hearne, Texas, with respect D!,?ta legality and the authority of the said Federal Reserve Bank of a-1.1as to execute it, and BE IT FURTHER RESOLVED that a true copy of this resolution be . allilexed to said contract. Letter dated September 22d, from Miss Elsie Rackstraw, tendering her reeignat ion as Assistant Librarian of the Federal Reserve Board, to t411:e effect September 26, 1921. Approved. Letter dated Septerdper 21st, from the Chairman of the Auditors' Zxectlti-3/e t Committee of the Federal Reserve Bank of Chicago, Mr. F. R. 11r"aa, requesting the aloproval of the Federal deserve Board for an *411111141 meeting of the Auditors of the Federal reserve banks to be held 418 Year on October 11, 1921, at Washington. Upon motion, the Secretary was instructed to advise Mr. Burgess that the Federal Reserve Board desires the meeting of Auditors to be postponed until February, 1922. 0 -7- Draft of telegram dated September 27th, prepared by General Counsel tor the signature of Governor Harding and addressed to the Chairman of the Fecieral Reserve Bank of San Francisco, setting forth the opinion of the Pe(ieral Reserve Board regarding the procedure to be followed in the release c)f "Mira les by the trust departments of liquidating National Banks. Approved. Letter dated September 22d, from the Corqotroller of the Currency, rec"tending an increase in the salary of National Bank Examiner A. B. Ile4118 from $3000 to $3600 per annum, effective October 1, 1921. Approved. Letter dated. September 24th, from the Comptroller of the CurrenCsr, te questing approval of a salary of $3600 per annum to be paid to Mr. 1.r113tIlY J. Harrington, National Bank Exaniner in the Second Federal Reserve i)istrict. Approved. 114',---SIF COMMITTEE NO. 1: sep, t 23d, Reconmending approval of thB application of Mr.Robert N. Harper to serve at the same time as president of the District National Bank of Washington,D.C. and. as director of the Peoples National Bank of Leesburg,Va. Approved. 13ated. llth,Recommanding that the application of Mr. Marvin A. Neeland to serve at the same time as director of the Bank of North America, Phila. and. as director of the First National Bank of Carden, N.J., be held pending action by Congress. Upon motion, the application was approved. At 1:20 p.m. the meeting adjourned. ADiptoved: Secretary. Governor.
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