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MIUUT?!S
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Minutes of meeting of the Federal Advisory Council
held in the Federal Reserve Board room, in the Treasury build*
in**, Washington, I».C. , January 1$, 1915, at 10 A* If.
Present: Messrs. Jutes B. 5orgar, I . I* ^.ue, J. P.
Morgan. T. 0 . Wing, $?. 3. Rowe, George J. Soiy, Charles A.
lyerly, Rolls Veils, C*
Jaffray, J. Howard Ardrey, Archi
bald 'fains, and »?rriit B* ftrlm, secretary.
Absent, Ur.
Hr. Ja»<«e 3
. F. Spinney.
.
Morgan, President, in the Chair
Mr. Forgan announced that Mr.
. 7 . Swinney was pre~
vented from feeln* rrec«nt by the illness of Hr*. 3winner.
The ^resident announced that ir r.ccordance with the
authority of the Federal Advisory Council giver, at their
sreetin, on Tece^ber 15, 1014, the Executive Committee ha4
M T o i n t e d Mr. Kerr itt H. O r i m , as s e c r ^ U n of the Council,
at a salary of *1,200 per annuis, and had authorize! an assess
ment of ''150 ur on each M s r a i Reserve tank to provide for
the secretary#o salary together eith his traveling and inci
dental expenses.
The Executive Cowritteefs action *fes
confirmed.
On motion of Mr. Ardrey the Tims tee of the meeting of
the Federal Advisory Council held at Washington, December 15,
1^14, copies of which had beer eent to each m em ber of the
Council, »ere approved.
The President called for the reading of the minutes
of the Executive Comieittee held in Washington, January II,
1915, for the information of the Council. The secretary r«ad
the minutes and on th« suggestion of Hr* Bue lie ws* instructed
to insert the names of th* *e®bers of th* Committee present.
On behalf of the Aecuti ve Co«3sittee tfr. Rue then
moved that the minutes of th« Committee of January 16, 1 $ 1 $,
be
rrovea a& corrected.
Motion c&rried.
) f r » r d r e y then oved that the minutes of the vxeeutj*re C o m i t t e e held in Hew Tor% on Ieoer.ber IB, 1914, co’ies
ing which ha 4 been scrst to eacr member of the Council, and
0. Tr« cf Jar.u&r - 18, ^111, as corrected , be ar rove4 by the
Grim,ci^* Motion duly carried.
M 1 M £ 1 2 M
Federal Advisory Council - January
19# 19 15
The President submitted the recomoiendation of the Executive
Committee in connection with bankerfs acceptances and bills of
excnange, as same appears in their minutes of January 18, 1915,
and after due discussion Mr. Morgan moved that the recommendation
be approved and adopted as the action of the Council and be sent
to the Federal Reserve Board. Motion unanimously carried.
The President then submitted the recommendation of the I^xecutivs
Committee in relation to commercial paper eligible for rediscount
by Federal Reserve Banks, as sams appears in their minutes of
January 18, 1915. The circular of the Federal Reserve Board Ko»
1 3 9 dated November 1(, 1914, on this subject was read by the
President^ when 1 r. Seay stated that the Federal Reserve Board has
another circular on the subject in course of preparation to
supersede Ho* 13. As this tentative circular had not been
officially submitted to the Council Mr* Hue moved, seconded by
Mr. J%ffray, that the Federal lieserve Board be requested to
furnish the Council with copies of it and that the matter under
discussion be deferred until receipt of the new circular. Motion
unanimously carried*
A short recess was taken while Mr* Forgan called on the Tics*
Governor, Mr* F.A. Delano, and yt f p sttd that the Council be
furnished by the Federal Reserve Board with copies of its
tentative circular on the subject of commercial paper eligible
for rediscount* Chi Mr* Forganfs return he furnished each member
of the Council with a copy of the proposed new circular known
as circular He* 3, Series of 1915, and Regulation B . , Series of
1915.
After the members of the Council had expressed their views
on the subject matter of the circular Mr* Morgan moved that a
committee consisting of MSssrs* Seay, Sue and Wing, be appointed
to revise the circular in accordance with the views expressed
by aembers of the Council and report bask to the CounSil at 4 P.M.
The motion was passed unanimously.
Mr. Forgan announced that the Federal Reserve Board invited the
members of thS Council to meet with them at the Metrpolitan Club
for luncheon where they would be pleased to hear from the members
of the Council as to general conditions of business through ths
country. The Council then went in a body to the Metropolitcin Club
where each member addressed the Federal Reserve Board as to con*
ditions prevalent in his district.
The Feaeral Advisory Council then adjourned until 4 P.M.
At 4 P.M. the Federal Advisory Council resumed its session.
PreseSt: Messrs. James B. Forgan, L. L. Rue, J. P. Morgan, 3. 0.
Wing, V. 3. Rows, George J. Seay, Charles A. Lyerly, Rolla Wells,
C. T. Jaffray, J. Howard Ardrey, Archibald Kains and Merritt H.
Grim, Secretary.
President Forgan in the Chair:
m
u t
Federal Aaviaory Council - January 19, 1915*
#3
Mr. Seay on belahf of the Committee appointed at tne morning
session to revise tentative circular No. 3 and Regulation B . ,
both of Series 1915, reported by furnishing the Council with a
copy of circular Ho. 3, in which no change was suggested and a
copy of Regulation B . , altered to meet the views expressed by
member a of tne Council as per copy filed herewith and made part of
these minutes*
Trie circular and Regulation B. , as amended by the Committee
were on notion unanimously approved by the Council, and the
President was requested to turn them over tc the federal Reserve
Board as its recoma endation of the changes which should be made
in tentative regulation £•
At five o fclock the members of the Federal Reserve Board
entered for a joint session with the Federal Advisory Council,
Givernor Hamlin presiding at the joint meeting. The members ef
the Federal Reserve Board who were present were. Governor Hamlin,
Vice-Governor Delano, Measre. ¥.3*. 0. Harding, A. C. Miller,
Paul M. Warburg, John S. Williams, also Secretary H. Parker Willis.
Mr. Forgan then presented to the Federal Reserve Board the
Councilvs opinion in regard to the discounting of bankers 1
acceptances and bills of exchange under section 13 of tije Federal
Reserve Act and the purchasing on the open market of similar
obligations under Section 14* He also handed to the Board a copy
of tentative regulation B, series of 1915, on the subject of
commercial paper eligible for rediscount by the Federal Reserve
Banka as it had been awended by the Council. Then followed a
general discussion b etween members of the Federal Reserve Board
and tiw Federal Advisory Council relative to the Council's
opinion given in regard to acceptances and bills of exchange and its
reasons for the changes suggested in the Board 9s regulations in
regard to the eligibility of commercial paper for rediscount.
Mr. Herding handed Mr. Forgan some copies of a tentative
circular to be issued by the Federal Reserve Board on the subject
of national banks acting ae Executor, Trustee, etc. with the
request that the members of the Council should give it their
consideration. Copies were then handed to the members of the
Council for this purpose* Governor Hamlin informed the Council
that the Board would be glad to have the Council's recomfnendatlons
either individually or collectively in regard to the conditions
under which State Banks should be admitted to membership in the
Federal Reserve System and further that the Board would be glad
at any time to have the Council 9s recommendations on any subject
connected ?rith the operation of the Federal reserve banking
system. The joint session adjourned at 6:10 P.M.
CIRCULAR NO. 3
Series of 1915
Superseding Circular 13 of 1914.
FEDERAL RESERVE BOARD.
W a s h in g to n ,
January 15, 1915.
COMMERCIAL PAPER.
W h e n C ircu lar N o. 13, b ea rin g d a te o f N o v e m b e r 10, 1914, and the a cco m p a n y in g regula
tions w ere issued it w as b e lie v e d th a t a p e rio d o f tw o m o n th s w ou ld suffice to en able m em ber
banks to fa m ilia rize th eir cu stom ers w ith th e req u irem en ts o f R e g u la tio n N o. 4 o f 1914.
It
appears, h o w e v e r, th a t in m a n y d istricts th e n ee d e d rea d ju stm en ts o f b an k in g and business
p ra ctice can n o t b e effected in so sh ort a p eriod . A n e x te n sio n o f tim e has th erefore been
asked b y b o th m em b er ban k s and th eir cu stom ers fo r the p u rp ose o f a d ju stin g their m eth od s
to the n ew req u irem en ts.
T o m eet these requ ests the B o a r d has b y R e g u la tio n A , a cco m p a n y in g C ircular N o. 2 , Series
of 1915, e x te n d e d R e g u la tio n N o . 3, Series o f 1914, fo r a p e rio d o f six m on th s, or un til J u ly 15,
1915, s u b je c t to the m o d ific a tio n s co n ta in e d in the a cco m p a n y in g reg u la tion (B -1 9 1 5 ) w h ich
supersedes R e g u la tio n s N os. 2 and 4 (19 14 ).
T h e B o a r d in clu d es in this re g u la tio n (p a ra g ra p h I I I ) a n ew m e th o d fo r ce rtify in g to th e
e lig ib ility o f bills fo r re d isc o u n t. W h ile b an k s w ill n o t be req u ired to c o m p ly w ith the p ro v i
sions o f this p a ra g ra p h u n til a fter J u ly 15, th e n ew m e th o d p rescrib ed is m a de a p art o f this regu
la tion in o rd e r th a t a d v a n ce n otice m a y be g iv e n to all b an k s so th a t those w h ich are e q u ip p e d
to d o so m a y b eg in to op era te u n d er its p rov ision s as s o o n as p ossible. T h e B o a r d suggests,
fu rth erm ore, th a t F e d e ra l reserve ban k s insist th a t th e a c co m p a n y in g regu la tion b e app lied as
p ro m p tly as p ossib le to all so-ca lled “ p u rch a sed p a p e r ” (th a t is, p ap er b o u g h t th rou g h brok ers
or oth erw ise fro m cu stom ers w ith w h om the p u rch a sin g b a n k has n o d ire ct business re la tio n ).
W h ere su ch d ire ct con n e ctio n s d o n o t e x is t the req u irem en t th a t statem en ts, b oth as to business
con d ition s and m e th o d s o f b orrow in g , be fu rn ish ed appears to b e a m a tte r o f p ru d en ce and sh ou ld
n o t b e d e la y ed . S om e b orrow ers m a y n o t b e able to g iv e a sta tem en t in the requ ired fo rm
u n til a fter th e close o f th eir business year. In such cases statem en ts fo r th e p reviou s yea r
m a y b e a cce p te d , e v en th ou g h th e y m a y n o t co n ta in all the desired data.
W h ile it has b een th o u g h t b e st n o t to insist, as a m a n d a to ry req u irem en t, u p on a w ritten
statem en t in th e case o f lim ite d b orrow in g s b y d ep o sito rs, w h en officers o f m em b er ban ks, fro m
th eir ow n p erson al k n ow led g e, c e r tify to th e e lig ib ility o f the p ap er fo r d isco u n t, it is urged,
neverth eless, th a t m em b er ban k s d o th eir u tm o s t to a ccu sto m th e ir b orrow ers to fu rn ish in g such
statem en ts.
In ord er to fa c ilita te op era tion s, p a rticu la rly d u rin g the in itia l p e rio d , the m a n d a to ry
requ irem en ts as to the con te n ts o f b o rro w e rs ’ statem en ts h a v e b een m o d ifie d , b u t b an k in g
p ru d en ce requ ires th a t w h e n e v e r p ossib le th e ob se rv a n ce o f th e rules o rig in a lly p rescrib ed
sh ou ld b e en cou ra g ed .
CHARLES S. HAM LIN,
Governor.
H. P A R K E R W ILLIS,
Secretary.
76222— 15
REGULATION B
Series of 1915
Superseding Regulations 2 and 4 of 1914.
FEDERAL RESERVE BOARD.
W a s h in g to n ,
January 15,1915.
COMMERCIAL PAPER.
The word “ bill,” when used in this regulation, shall be construed to include notes, drafts,
or bills of exchange, and the word “ goods” shall be construed to include goods, wares, mer
chandise, or staple agricultural products, including live stock.
0
I.
ST A TU TO R Y R E Q U IR E M E N T S .
The Federal Reserve A ct provides that a bill (other than an acceptance covered by the
regulation accompanying Circular No. — ), to be eligible for rediscount by a member bank
with a Federal reserve bank, must com ply with the following statutory requirements:
{a) It must be indorsed by a member bank, accompanied by a waiver of demand notice
and protest.
(b) It must have a maturity at the time of discount of not more than 90 days, except as
provided by Regulation C, accompanying Circular No. 4, Series of 1915.
(c) It must have arisen out of actual commercial transactions; that is, be a bill which has
been issued or drawn for agricultural, industrial, or commercial purposes, or the
proceeds of which have been or are to be used for such purposes.
(id) It must not have been issued for carrying or trading in stocks, bonds, or other invest
ment securities except bonds and notes of the Government of the United States, but
the pledge of “ g ood s” as security for a bill is not prohibited.
II.
CHARACTER
OF PA PE R
E L IG IB L E .
The Federal Reserve Board, exercising its statutory right to define the character of a bill
eligible for rediscount by Federal reserve banks, has determined:
(а) That it must be a bill the proceeds of which have been used or are to be used in pro
ducing, purchasing, carrying, or marketing “ goods’ ’ in one or more of the steps of
the process of production, manufacture, and distribution;
(б) That no bill is “ eligible” the proceeds of which have been used or are to be used,
(1) For permanent or fixed investments of any kind, such as land, buildings, machinery
(including therein additions, alterations, or other permanent improvements,
except such as are properly to be regarded as costs of operation). It may be
considered as sufficient evidence of compliance with this requirement if the
borrower shows, by statement or otherwise, that he has a reasonable excess of
quick assets over his current liabilities on open accounts, short term notes, or
otherwise;
(2) For investments, whether made in “ goods” or otherwise, of a merely speculative
nature.
III.
M ETH OD OP C E R TIFY IN G E L IG IB IL IT Y .
The Federal Reserve Board has adopted the following Tnethod by which member banks,
after July 15, 1915, shall eertify that a bill is eligible for rediscount when applying for redis
count thereof:
(3)
4
for one of its own depositors, pro-
vided either*
(4) su ch b ill bears
and the seller o f the g ood s, and
co n ta in s a sta tem en t on its fa ce th a t it w as issued fo r g o o d s a ctu a lly p u r
ch a sed o r sold ,
fo r re d isco u n t d oes n o t e x c e e d $5,000, b u t in n o e v e n t a su m in excess o f
ten p er ce n t o f the p a id -in c a p ita l o f the m e m b e r ban k ,
the~m em ber b a n k w ill b e req u ired to c e r t ify in th e le tte r o f a p p lica tio n , o v e r the sign a tu re
o f a d u ly a u th o r iz e d officer, th a t, to th e b e st o f his k n o w le d g e and b elief, the bill was
issued fo r on e o f th e p u rp oses m e n tio n e d in p a ra g ra p h s I (c) and I I (a) h e re o f and th a t it
co n fo rm s to th e p ro v is io n s o f th e a ct and th e req u ire m e n ts o f th is re g u la tio n .
(b) In th e ca se o f a b ill w h ich d o e s n o t c o n fo r m to th e c o n d itio n s d e scrib e d u n d e r I I I
(« ) (l-)- a tid (2 ) h e re o f o r o f tt b ill p u rch a se d o th e rw is e th an fro m o n e o f its ow n
d e p o s ito rs , th e m e m b e r b a n k sh a ll p la ce a c e r tific a te u p o n th e b ill su b sta n tia lly
to th e fo llo w in g effe c t :
Eligible for rediscount with Federal reserve banks
itnder Federal Reserve Board Regulation B (Series of 1915).
Credit f r t e r = = *
w h ich c e r tific a te s h a ll b e d o o m e d a r e p r e s e n ta tio n b y th e m e m b e r b a n k th a t, to th e b e s t o f
the k n o w le d g e a n d b c l ief -o f its c u i y a u th orized officers, th e b ill co n fo r m s to th e p r o v is io n s
o f the ac t a n d th o re q u ir e m e n ts o f th is re g u la tio n :
a
F w th e p u r p o se o f e n a b lin g i-t t-o-affix th e a b o v e e c r t i f i c a t e ^ v e r } " m e m b e r b a n k s h a ll
m a in ta in a c r e d it file, b e a r in g an id e n tific a tio n n u m b e r o r n a m e , w h ich sfo&ll co n ta in a sta te
m en t o f th e fin a n c ia l c o n d it io n o f th e b o r r o w e r , e ith e r sig n ed b y th e b o rro w e r o r d u ly ce rti
fied b y a m e m b e r b a n k or n o ta r y p u b lic , to b e a c o p y o f a sig n ed sta te m e n t. S u ch sta te
m en t s h o u ld c o n ta in all th e in fo r m a tio n essen tia l to a cle a r and c o r r e c t k n o w le d g e o f the
b o r r o w e r ’ s c r e d it a n d o f h is m e th o d s o f b o rro w in g . A sch ed u le s p e c ify in g ce rta in in fo rm a
tion w h ich su ch s ta te m e n t s h o u ld in c lu d e a n d th e m a in p o in ts to b e o b se r v e d is h ereto
appended.
R e g u la tio n s N os. 2 and 4 o f 1914 are h e re b y re v o k e d .
CHARLES S. HAMLIN,
Governor.
H. P A R K E R W ILL IS,
Secretary.
APPENDIX.
IN FORM ATION TO BE INCLUDED IN CREDIT FILES OF MEMBER BANKS.
The credit files of member banks, referred to in the above regulation, should include
informaton concerning the following matters:
(a) The nature of the business or occupation of the borrower;
( b) If an individual, information as to his indebtedness and his financial esponsibility;
(c) If a firm or corporation, a balance sheet showing quick assets, slow assets, permanent
or fixed assets, current liabilities and accounts, short term loans, long term loans,
capital (and surplus);
id) Them axim um and minimum amount of short term loans during the preceding year and
the anticipated maximum during the present year;
(e) A statement evidencing tho purpose of such short term loans and the policy of the
borrower in financing slow, permanent, or fixed assets;
(/) All contingent liabilities, such as indorsements, guaranties, etc.;
(g) Particulars respecting any mortgage debt and whether the mortgage is a lien on
current assets;
Ch) Such other information as may be necessary to determine whether the borrower
is entitled to credit in the form of short term loans.
W A S H IN G T O N : G O V E R N M E N T P R IN T IN G O F F IC E : 1915
MimjTBS
EXECUTIVE C O m a T T O K
JAJIUAHY M ,
1915
A meeting of th^ I^xecutive Committee of the Federal Ad
visory Council was held in the Federal Reserve Board Room* in
the Treasury Builuinfc , Washington, B.C., January 18, 1915,
at 11 A.K.
Present: James B. Forman, I. L. Rue, J.
Daniel 0. in^ , an a . 5. o^vo. The President,
Forgan,j resided.
Morgan,
r. J^mes 1.
The President reported that under the authority given
him at the meeting of the Lxecutivs Committee on December
IS, j.i*14 , he had a n o i n t e d Hr. Merritt H. Grim of Chicago,
secretary of the iederal Advisory Council, and had fixed his
salar at '1,200 per annum. Mr. Forgan recommended that A 1,000
be raised by assessing each Federal Reserve Bank ^150 to pro
vide for the secretary’s salary, ^raveling expenses and in
cidentals for the ensuing year; an account to be rendered to
the Council at the end of the year and any balance remaining
to be carried forward to the year following. On motion of
Mr . Morgan, seconded by Mr. Rue, the "resident’s action and
recommendation were a <roved and adopted.
Mr. tfrim be in. jprecent took up his dutis3 at once
The President stated that the minutes of the meeting
of the Executive Committee held in New York December 16,
1914 , bad oeen sent to each member of the Council. On
motion of Mr. Mor&an the/ **ere unanimcusi aj?] roved.
The -resident reported that he had o*s requested at the
previous meeting prepared a letter to the Federal Reserve
Board rerortin^ the findings of the Committee on the five ques
tions submitted to it by the Federal Reserve Board, which had
been submitted by mail to the members of the Council and
unanimously arproved by them and that it had been forwarded
to the Secretary of the jTederax Reserve Board on December
14 , 1914 .
The letter follows:
•Mr.
. barker Willis, Seer .tc.r/ ,
federal iei>erve Board,
A s h i n g ton, I> C
De<>r Sir:—
At a meeting of the Executive Committee of
the Federal Advisory Council held in New York Becep*ber 18,
1914, the various matters referred to it by the Federal
Reserve I o«. rd as s W t e d in your letter of the 17th inst.
were duly considered.
MIHUTSS
J a n u a ry 16» 1 9 1 5 ,
Continued -5
The Executive Committee met at 2:30
^resent:
Messrs. James B. Forg a n , I. L. Rue, J. T5. Morgan, Daniel
G. Wing and W. 3. Rowe.
On motion of Mr. Rue the Committee unanimously agreed to
submit the following statement to the federal Advisory Coun
cil at its meeting tomorrow with the recommendation that it
be sent to the Federal Reserve Board:
"That for the present at least we deem it wise for
the Federal reserve banks to buy in the open market under Section
14, bankers1 acceptances and bills of exchange only when such
bankers1 acceptances or bills of exchange are the acceptances
or bear the endorsement of member banks. Such purchases should
also be subject to the following limitations provided for ac
ceptances under Section 13 when offered for
discount as
follows:
f"Any Federal reserve bank may discount acceptances which
are based on the importation or exportation of goods and which
have a maturity at time of discount of not more than three months.
The amount of acceptances so discounted shall at no time exceed
one-half the paid up capital stock and surplus of the bank for
which the rediscounts are made.,ft
The subject of commercial paper eligible for rediscount
at the Federal Reserve banks was then taken up and after dis
cussion it was decided to recommend to the Council at its
meeting tomorrow that the following statement should be sent
to the Federal Reserve Board:
"In the oiinion of this Council many of the requirements in
connection with commercial paper eligble for rediscount under
circular N o . 13, dated Hov. 10, 1914 , which was deferred until
July 15, 1915, under Regulation A, Series of 1915, dated January
12, 1915, impose inconvenience upon the business public, the
Federal reserve and member banks and cannot successfully be
carried out in practice.
"It is our opinion that the regulations of the Federal R e
serve Board should provide that the management of the various
Federal reserve banks should determine the acceptability of
commercial paper offered for rediscount by their member banks.
Each application for rediscount should be considered upon its
own merits.
"V/e would therefore respectfully recommend that the require
ments in circular No. 13 , commencing with the words (in the
middle of the second paragraph on page 3 thereof) "It is however
thought advisable by the Board to require that on and after Jan
uary 15, 1915, etc.* should be permanently eliminated. n
There being no further business the Committee then
adjourned.
As arranged the Federal Advisory Council act in joint conference
with the Governors of the Federal Reserve Banka at the Hew Dillard
Hotel# T^aanington, D. C*, January 20 , 1915,
Present: Kesara* James B. Forgan, D. G. Win^# J. P. Morgan* W. 3 .
Howe, Georg© J. Seay, Char lea A. Lyerly, Holla Wella, C. T. Jaffray
J. Howard Atdrey, Archibald Kaina and Eerritt K* Grim, Secretary;
and the following Governors of the Federal Reserve Banka: leaera*
Alfred L. Aiken of Boston, Benjamin Strong, Jr* of Ke*> York,
Charleo J* Rhoada of Philadelphia, S. R* Fancher of Cleveland,
Georgs J, Seay of Richmond, Joseph EcCora of Atlanta, Ja^ea B*
I'cDou/’.al of Chicago, Kolia Walla of at. Louia, Tneodore ftold of
Kinneaiolia, O^cax tell a of Dallas, Arcuib^la Kaina of Uui Fr^nci«jco#
find J. F. Curtia, Secretary; alao Charles R* McKay, De.uty Governor of
Chicago and J.ir* Henricka of Hew York,
Absent: E* F. Swinney and L. L. Rue of the Council, and Governor
Charles ! • Sawyer of Kansas City*
It was stated that U r* Sawyer 1 a absence waa occasioned by a death
in his family, and that Ur. Swinney waa jrevented from being present
by the illness of Mrs* Swinney:
Mr# Ja: es B* Forgan, President of the Council, called the meeting
to order at 10: *50 A.&.
The Chairman, Hr. Forgan, atated that the purvose of thia Joint
meeting was to enable the members of the Council to bccoi^e better
informed as to conditions existing in the various districts and on
tiie problems confronting the governors of t e Federal reserve banks
and to give the governors an opportunity of discussing with the
members of the Council matters of mutual interest kn connection
with the conauct of the Federal Reserve Banks*
Mr* Forgan then Xal4 before the meeting the Federal Reserve Bank’s
tentative regulation B, Series of 1915, on eorrsnereial paper eligible
for rediscount by the Federal reserve banks as revised by the Federal
Advisory Council. 1 r * Strong, Chairman of the Board of Governors,
said that the governors woula consider these recommendations of the
Council at a subsequent meeting.
Then followed an informal discussion between the iiembera of the
Federal Advisory Council and the Governors relative to the settlement of balance© between Federal Reserve Banka and the clearing of
country bank checks through the Federal reserve banka# Informal
statements ^ere i ade by Governora Strong, Ueay, 1’cDougal, Wold and
othera, relating to conditions in this connection in their respective
districts.
Several oi the governors suggested that if the Federal \dviaory
Council would recommend to the Federal Reserve Board that action in
regard to putting in operation any general pl«^n for clearing checks
should be postponed it would materially uid them aa the Board waa
them to formulate some suoh plan at once but they did not
pressing
#2
unuary 20,1915
feel that a workable plan could be formulated and put in operation
Hr* Forgan stated that the Council not
having had the matter under consideration was not pxe|>ared to make
such a recommendation at thie time. No formal action therefore
was taken but Hr. Forgan on behalf of the Federal Advisory Council
stated that if the Governor a should deoide upon a plan for settling
balances between the Federal reserve banks or for clearing checks
either inter«dist?ict or intra-district or both and would send him
a copy of their findings he would submit aaa*e by mail to the members
of the councilt secure their recommendations in regard to it and
forward aa. e to the Federal Reserve Board# the strong probability
being that the Council would endorse the plans formulated by ths
Governors•
i oi' some time to come*
At 1 P.I . the Joint conference adjourned sine die.
@FedFRASER