meeting minutes, april 5, 1920, volume 7, part 2 · 2018. 11. 6. · letter dated april al from...

At a special meeting of the Federal Reserve Board held

in the office of the Board on Monday, April 5, 1920, at 11 A.m.,

PRESENT: The GovernorMr. MillerMr. HamlinMr. MoehlenpahMr. Emerson, Assistant Secretary.

Business was presented and disposed of as follows:

The Governor presented for approval of the Board, pro-

gram for the conference with Governors of Federal Reserve banlz,

beginning April 7, 1920.

Approved, Mr. liller voting "No". Li..

Miller expressed the opinion that conferences

with the Governors should not be opened except

in the presence of the Federal Reserve Board.

Memorandum dated April 5th by General Counsel, sub-

mitting an opinion covering rediscounts by Federal Reserve

banks for State member banks, when part of the capital of such

State member banks is allocated to departments of such banks.

Approved.

The Governor reparted statement of the New York clear-

ing house association as of close of business April 2d, and

the condition of the Federal Reserve Bank of New York at the

close of business April 3d.

Letter dated March 71st from 1::r. James F. Caldwell,

President, First National Bank, Nashville, Tenn., on the subject

of discount rates of Federal Reserve banks, and general discount

program of the Federal Reserve System.

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

Ordered circulated.

Telegram dated April 5th from the Federal reserve Agent

at San Francisco, explaining the reasons why that Bank had

recommended to the Board the adoption of the next to lowest

bid for the steel construction work for its new bank building.

Referred to the Governor for procurement •

of further information from Governor Calkins,

who will be in at at the Conference of,

Governors on April 7th.

Letter dated April al from Governor IcDougal of the

Federal Reserve Bank of Chicago, advising that upon approval

of the Federal Reserve Board and upon recommendation of their

Counsel, they would proceed with the dismantling of their

bank building, as recommended in their letter of T'arch 19th.

Noted.

Telegram dated April Zd from iederil reserve Agent at

Dallas, recommending for that Bank the rate of 5-1/2,1 on re-

discounts of bankers' acceptances.

Approved.

Tele,ram dated April 3d from the Federal Reserve .:.gent

at Dallas, recommending additional space for the Houston branch

of that Bank, and the renovation of such space to suit the

needs of the branch on a cost plus basis, advising that the

total expense would be inconsiderable.

Approved.


-

Memorandum dated April Eth by General Counsel, sub-

mitting for approval of the Board a draft of letter for trans-

mittal to the Federal eserve banks on the subject of adver-

tisements of State member banks.

Approved.

emorandum clated Afril 3d by 7r. Emerson, suggesting

the de:I,..A.bility of securing from the Secretary of the Treasury

an ex-ression of opinion as to the feasibility of retirinE ex-

cess collateral deposited to secure Federal Reserve bank notes

maturinL; during the month of April in the amount of

consisting of special one year 2 certificates of indebtedness.

The Governor reported that this matter had

nreviously been referred to the Secretary of the

Treasury in connection with communication from

the Federal Eeserve Agent at St. Louis, and the

Secretary of the Treasury had advised that the

power to issue and redeem certificates of in-

debtedness to secure Federal Reserve bank note

circulation was vested in him under Section 5

of the Pittman Act, and that he did not deem it

feasible to reduce the Federal reserve 1)ank note

circulation at this time by retirement of special

certificates of indebtedness, believing that con-

traction in currency circulation should be through

the medium of Federal Reserve notes.

Voted to refer the matter to General Coun-

sel for an expression of opinion as to the au-

thority of the Secretary of the Treasury under

the provisions of the Pittman Act.

Memorandum dated April 5th by General Counsel, advis-

in that on 3d an opinion was rendered in the injuct ion


suit of Georgia oo=tiv bans aLainst the -.Cederal71106f1C,

an of of Atlanta in connection with par collections bj the

Reserve Lan7K, denvine the plaintiffs' action to remand the

case to 3tate Court, anJ ,1-tinE the defeild.ant's

to disiss th,7i bill 'of

1:otod.

Thc,, Gow;raor rerorteJ transactioos, pur-

suant to :.thorIty heretofore v.,773te,.7., in.lit aiunor bank

,nrol,issorLi 110 too b: U0voet ra.:u

bj certific"-es of indebt(Lless, a:2j 5-1/2:7

on 1,:q7er 6ecl.lred b:LLertj lionai and Victor'1.,otes, as follos:

Date

Apr.lst ..."rv,y) nnn 11-15 doIor rmo 1,1()

it Louis an2rt..:1:i01000 7,510,0T) T.A.thin 15 etasClevclana

1,oted.

datod April 5th from the 7.eecier„,..1 :::eserve

ent at San Franeisco,,advisins that the Javincs Uniuti Lank

Trust',,S;n1"-.),aaj, the 1,:erca;Al1u Ean' and the 1.:ercanti1e

Trust Copray, all of,ja, tT,(:, first two of which arc

members of the ;:ederal 2;,;:.,, t.om, intend to .30'11.olidate

-,.1.7er the 1:lac. of the laV.. -,-.,11Xner, in vie'v: of the

Y:Lett7t nx?Inaious of t7.1 '1•:t, they are


in a satisfactory condition, it will be necessary to examine

the consolidated hank for membership, or thet',--

the Mercantile Trust Company, the non-member 1,-„Zrz,

consolidation, will be sufficient.

Referred to the Governor with authority

to advise Lir. Perrin that s',-oe satisfactory

reports of (-)....2:_ination are cove-x.1_2 the

t7o member banks, it will T,e ffieient t.

:Ae only the Mercantile Tri.. Company bef2n -:

;o1i4ation.

At P.,11., on motion .e'meetin was adjourned

until 3 o'clock this afternoon.

At the meeting was Bd with the following

members present:

The GovernorMr. MillerMr. HamlinMr. chi enpahMr.Znerson, Assistant Secretary.

The Covornor reported that he had taken up ...-Ath

, General Counsel the authority of the 3ecretary of the ,Treasury

under Section 5 of the Pittman Act in connection 1:..ith the

issuance and retireuent of one year Treasury certIficate6 of

indebtednesstO secure Federal reserve bank note cire-c,lation,

and advised the Board that GenerL1 Counsel had infod

that entire poter in t'ais matter was vested by Taw in the

300retary of the Trcasury, and was solely t iL Jirction.

Letter dated ril 3d from Mx. Ia_.-11Lel, Controller


II

U-

of 1-.;.,vents, Federal Reserve Bank of New York, advisixl,„

that foreign banki,,g corporations doirc business under aL,ru-

nQnt .ith the Federal Reserve Board, provided for in Section

E of the Federal Reserve Act, desire the Federal L.Jserve

hoard or the iederal reserve Board throu3.11 the 2ederal Reserve

Ban:c. of New York, to wire Shanghai daily certain silver quo-

tations for the use of all of such foreign banking corporations

doinc, business there, all expenses in connection with cabling

to be reimbursed by those corporations.

On motion duly seconded, the governor vas

authorized to advise Lr. enzel that the Board

sees no objection to the Federal Reserve Lank

of York undertaking to perform this sLrviee

for these corporations; also to advise hi .1 to

proceed with the preliminary arrangements.

Letter dated Larch 17th from the Federal -4:eserve

Agent at New York, on the question of where a Federal Leservo

bank buys bankers acceptances from a member bank with that

member bank's endorsement, whether this paper shouLl be classed

as a rediscount and figured in the amount of the rediscount

linc): such bank.

Ordered circulated.

Letter dated April 1st from the Comptroller of the

Currency, advising that from time to time National banks re-

quest permission to reduce their capital stock, and at the


-7-

same time are borrowing from Federal Reserve banks and city

correspondents, and requesting the views of the Eoard as to

whether or not permission should be granted such banks to

reduce their capital stock.

Eeferred to the Governor with authority

to advise the Comptroller of the Currency

that the Board does not consider it wise to

permit a bank to reduce its capital when it

is evident that all of its existing capital

is needed in its business.

The Governor reported that I:A.. Ia)ehlenpah's term

as a member of the Executive Committee expired April 1st, and

that owing to the resignation of 1.1r. Strauss thare were now

two vacancies on the Executive Committee.

On motion duly seconded, it was voted

to appoint Lr. =or as a regular member of

the Executive Committee for the quarter end-

ing June 30, 1920, and to appoint rr. Hamlin

as a member ad interim of the Executive Com-

mittee, pending the appointment of a Vice-

Governor of the Board.

g'.emorandum dated April 3d by Lr. Wyatt with respect

to the Clayton Act application of 1;:r. Charles A, Hinsch and

other common directors of the Fifth-Third National Bank and

the Union Savings Bank Trust Company of Cincinnati, Ohio.

Deferred to the Clayton. Act Committee

for the purpose of ascertaining the per-

centage of stock of the Union Savings Bank

Trust Company owned by the shareholders of

the Fifth-Third :National Bank.


-C-

A7plication of the First '.,7tate Bar.21‹. of. Garfield,

Garfield, W.:.,..hington, for. :1-krifeer.....7.,ip in the Federal Peserve

Cs tern.

on 3tto bank

of the .0f01500 dTconferen T‘. offlictin statements n:..ports 0.7 •of the Federal Eeser .r.

• - ; : :o• 1:

recommenliL I Iicrlduciar powers,Ii:rminute Look a

Approved.

1,ated April 4th, -1-,..q2.071-nenlinn. ir stool.: at Feden_l;:rth in the auvIliry

minute Isoe: as f tIJ late.A1roved.

Da ed April 2d recomridinL approval of salary of ,40Oper annual for 1,r. George ii. Smith as NationalBan1c "Examiner in the Fourth iederal :ReserveDistrict.

Aprroved.

DL, ted April 1st,7-,-,yji.-.: _,'.17,provLil of in3rc3c3 in .,,./..1.1ries07 :::.tional --: Examiners as follows:

Nam,7: Fro:r. To',..,._.., 7---mpson :4,5,000

Hi,ean 4,8002-- _. • :3E. J. ,:,,., .,.-i,_.1.II,•i• . T.. -.. ..0.

L-.field

',1'..;-r,..1 .,-2. 1:..2:-.1-_,,sTheas :-.. ii

7,60,0701

2,4002,4002,4003,609,-,r,,n.,.., --I(.

3,9007,9007,0007,000,fl.,7003,0903 00017,701

;,... .:.. No6,:-.0nr.,

Approved.


-V-

Dated I.:arch 31st, reconmendine approval of increases insalaries of employees of the Division ofFederal Reserve Issue and Redemption, ef-fective April 1, 1920, as follows:

Name From ToSearing T.Dashiell .:.1,440 ,7;1,5001.'artha J. L:artin 1,200 1,260Susan V. Snead 1,260 1,32^;Julia KInsolvin g 1,200 1,2Z)Fannie P. Lleade 1,200 1,DHan P. Tharp 1,140leDorothy M. Feeder 1,020 1,14)Lary E. S heffer 7,,020 1,14 -)Lilybee C. Cobb 1,020 1,140Ada F. Grafford 11.,20 1,140Annie 1,7,.. Drewett - 1,r)20 1,140Eva Y. Devine 1,0Z0 1,140Yyrtle S. Reale 1,g20 1,080C. B. Zuesenberry 1,'-)20 1,000Thos. J. Liurray 1,:I")) (Add 3240 bonus)

.Approved.

Dated April 3d, rec.-- 7enlin the aprointment of J. Vion Papinas lo -)e Federal Reserve Agent'sDepartl*.nt, :eservo 1:ank of St. Louis,at a salar, of :7,1Y) per annum, effectiveApril 15,

Iprroved.

Dated April 2d, recommendinc incref,e'in salary of 1.1r.W.r.'.7hee1-wrieht at the Federal :reserve Bank of richmondfrom ,:;i2,2c)0 to !:;3,000per ,111111.11TI.

Approved.

Dated A ril 2d, sulnAtting schedule of increases in salariesof ev,t-lvees of the Transit Department, Fed-eral :eserve Ea:17,c of Richmond, effective A.rril1, 1020.

At 3-50 r.y., the meetine foljournetl.

Approved: . Assistn

Gover ir.


meeting minutes, april 5, 1920, volume 7, part 2 · 2018. 11. 6. · letter dated april al from...

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