19210303_Minutes.pdf

186

A rmetin.; of the Federal Reserve Board vras hold in the

office of the Board on Thursday. March 3, 1921. at 11:15 a.m.

PB2SZET: Governor HardingMr. 'Platt

Marnlin• Mr. Miller

Mr. WillsMr. Hoxton, f:',ecretary.

17117.072TT ALSO:Lon, General Counsel.

Minutes of the meetin7 of the Board held. March 2d were read

a/Y-1 on motion, approved, as amended.

The Governor reported the reserve positions of the several

?ederal Reserve banks as at close of business March 1st, and the

Status of rediscounts between tile Federal Reserve banks as of the

same date.

Governor TT:rdia7 advised the I'eani. that he had yesterday

aubThitted to Mr. 7roor-e L. Harrison, De L)uty Governor of the Feder-

al Reserve Bank o --cw York, the various letters addressed hr the

C°111Ptroller of the Currency to the Federal Reserve Board wherein

references were node to the Federal Reservo Bank of I'm York. and

to Trember banks in :Tay York City, and reauested that the officers

().2 the Federal Reserve 7),,nk of -ow York carefully read the said

lotters and prepare a statement for the Federal Reserve Board in

resPeet thereto. Governor TTi-xdin(-,. jated that he had included.

0111°114-" the letters delivered to ::r.Harrison Pie letter regardinc7 the

.ranty Trust Company, written by the Comptroller of 'no Currency

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

187

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and filed with the Board wsterday, at which tins the Comptroller

Of the Currency suggested that the letter be filed and not read at

the ii. eting. Governor Harding further stated that he held receipts

executed by Er. Harrison for all letters aforesaid.

Letter dated Febrmry 28th, from Mr. Dnerson, submitting a

coPy of a circular which is being sent out by the Pinkerton ration-

al Detective Agency to its clients relative to the organization of

the producers Consunnrs Cooperative Bank by organized labor.

roted.

Letter dated February 28th, from the Consulting Architect,

ise?lying to Governor Harding's letter of February 25th, relative to

certain patent rights in connection with the recent vault tests,

ca1d reqtusting the Board's authority for the payment of a fee of

1382.80 to a patent attorney.

Referred to General Counsel, with the under-

staiding that the fees referred to will be paid

if the ratter be found to be in proper shape.

With reference to a recent letter received from the Fed-

'al Reserve Agent at Chicago, conimenting upon the reports received

by iTational bank examiners, Governor Harding was requested to pre-

pare a letter to all Federal Reserve Agents, =king inquiry as to

the frequency of rational Bank examinations, as to their efficiency

and sufficiency and as to their value to the several Federal Reserve

banks, and inquiring if the several Federal Reserve banks would pre-

fer to have under their control the matter of the examination of


•

1Tatio nal b "as

Letter dated February 25th, from t efQr,.7.1 Tecorvo

at Boston 7,:ith relation to the paper of commission -houses, and

transmit re;-)lies to a questionnaire sent out -by the Federal "7

serve of Boston.

su,7,-:ested that the Federal 7eserveLank of cv. York si;lould be requested to send out asimilar questionnaire, and the matter was referred137,7- the Boa-d. to 7:r. Famlin. •

Mr. Hnlin broirht up the ratter of the publication of the

Iflden -').1st of the Federal Reserve bulletin, and su7ested that

3,000 co':)i.es of that work be ordered by the Federal reserve Board,

to be -sold at a price of each.

j,e:rOvod.

Letter dated Febr-,..ari 25th, frcrn the Cho. irmz.-',11. of the 7oard

Of ti( ?eaeral 7`cos,:....rve.7rrilk of i-7onsas City, express in; tbaly:Toval

. 0f the c ers aul direcharc of that bank of the policy of apply-

Iiro:,i,:-ressive discount rates, and exivessin!77,tic disinclination

Of *L-c-J; to discontinue such oolicy.

7.7o -bed,

Letter dated t fro:TI t o "Director of the -7)ivi sion

Of P.esearch enciceh n ai-roposed letter bo tie Cia 1r:7:an

Of th 7oard of t-hc- Federal 7.7 es(a.ve i3a2.17..:. of it. Louis, re..77.1-:U.n,:-.7 re-

onthe acceptree market in tl.:nt district at the request of

the Ln.-,or ican ...•".ccepth.nce Counc ii

Referred to Crovolilor araiea with oower. it bolaFthe sense of the meet la: that all such re:orts should'be distributed tirouyil one channel, namely, the Divis-ion of Analysi s B ',Research,


189

Letter dated February 25th, from the Governor of tir Federal

Reserve i3ank of 7,ichmond, expressily; his views as to the acce.)tance

for discount by 2ederal Resrve banks of paper of non-rerrber -honks

Of ler od for discount by member banks.

Referred to Governor kardUn for reply.

At this ooint , 12 :15 , Governor Strong, aC' the Federal

Reserve P,LInk of -cm, York, Governor T'orss., of the Pedorc,1 Reserve

nallk of Boston, and hr. CtTtiss, Mlairman of the Board of the Ted-

oral Rescie Bank of Boston, entered the meeting.

Letter dated Vebruary 23d, from hr. -caul L. 77a,r'our ,;. with

reference to the su7gest ion that the T3orrd rule as eli7ible ler

PtIrchoze by Federal P.escxve honks, bankers accerytnnces covering

irloort and export transactions having mturit les u: t six months.

Llso, with reference to the recent ruling of the Federal Reserve

?)eard requiring the presentation of original shipping document

as a condition precedent to the acceptance of drafts by member

banks. Upon invitation of the Board, Governor Strong, Governor

riorss and hr. Curtiss expressed their VieWS upon the matters set

forth in 1:r. Warbur,3's 1 otter.

At this point, one o Governor Strong withdrew from

the meeting.

Governor 1.-orss -)resented to the Board the detailed account

of the incidents leading up to and subsequent to the failure of five

On-member trust companies in Boston.


190

B27ORTS OF COT:rITT= TO. 1:

Dat ed Tarch and. econiriondin chmi.cs in stock ecleral P. es e 'rye" 3rd. Banks, as set forth in the auxiliary minute took

as of this date,

Dated,?eb. 11th, Beco n€nT1inr admission of State institutions as25th, set forth in the =Mary minute book as of

26th, this date, subject to the individual reports2r ch 1st. attached. to each application.

Approved.Dated :-.L.,rch 3rd, 9eco'.aramding that authority be -;iveli to certain

-ational banks to purchase stock in corporations

organized under the :f.drse Act, as set forth in

the aizci. liary minute book as of this date.

A pre ved.Dated Larch ls t , Reco mend i drovc,1 of the application of 7r.

j. Harahan to serve at the sz,me time as di-

rector of the coal 5.- Iron Tational Bank of ,'ew

York City, and as director of the First Rational

Bank of Tne =mid, Va.Awroved.

1.:anorindum dated Larch 2d, recomrnondin7 the errnlo:yment of

a temporary Telegraph Operator, at a salary of l65. oer month.

from April 1st to Auprust 30th, in order to )rovide a relief man to

permit the rc.:-,-ular operators to take their annual tvo weeks vacation.

Approved.

Letter ft ted. .7ebruary 14th, from the ''resident of the Indiana

tional 7/r.nk, IndianaT)olis. md. , rrakinr; c.q2 -01ication in behalf of

t .at bank for permission to purchase 54 additional shares of stock of

the ' 111 cr c ?ore i711 Banking Coorat ion.

App xov ed. .

Adjourned at 1:20 0.m., with the u.A.- orstandin7 that the meet-

1-11{ vaDuld reconvene at 3 otelock.t,is afternoon.


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Lt 3:20 this L.f t erne on the me eti rece avoned,, w ith those

members pisent 7:110 attoiled tho mor1in meetin2, ui th the exceot -

ion Of -r . tt. qoverner St ronr. was also oresont.

lovernor stated. that in ace° rdanc e with the authority

L7revjous11 nted, ID:7 the 7etz=:,,rd, hr. 7'orris liosl been a ooiuted

temporary man4rt 7or of the Credit Desrtment of that bank. at a salary

Of dq,000 ;)er annum. and that it Ims the wish of the *e.de:,.t.,.1 7eserve

2anaz of --ow York to yriko hr. -orris perranent manaeor of the Credit

pep artment , at a snl ry- of '12,000 per annum

L-mrov ed.

Letter dated hah 2d. from r il iams in r e p 1, - to a

quest 1011 out to him at the me °tin • .es terda:y- hr. latt, with re-

lation to the exorciuntion of Tational hanks in -Tar York City, dur -

1 ast .73pri rig mu between January 1st aril tluly 1. 1920.

Ordered filed, after a over nor

l'Tar. di n7.

At 3:50 p.m. the meetirip adjourned.

Se re tary.


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19210303_Minutes.pdf