7/21/2019 19150312_Minutes.pdf

http://slidepdf.com/reader/full/19150312minutespdf 1/5

At

a

regular

meeting

of

the

Federal

Reserve

3oard

held

in

the

office of

the

Board at

11.15 a.

on

Friday

Larch 12

PRESENT:

V r

Delano

presiding

Lr.

Harding

Lr.

Warburg

Liller

Lr.

Willis

3ecretary.

The minutes

of

the

meeting

of 11.15

a.

m.

Thurs-

day

Larch

11th

were

read

and

approved.

Lr.

Delano

reported

the

existing

status

with

reference

to work

on

the

circular providing

for

admission

of

3tate banks

to the

Federal

Reserve

system.

The

Secretary

of

the

Board

read

a

letter

from

the

3ecretary of

the

Treasury Lr. LcAdoo

stating

his

positi n

with

reference

to

the appeal

of

the

northern

New

Jersey

banks

for

redistricting

and

also

his

position with

reference

to

the

rate of

rediscount

between

Federal

Reserve

banks

•:ith the

request

that the

latter

be recorded

in the

minutes.

The

3ecretary

of the

Board

was instructed

to

dis-

tribute

to each

member

of

the

Board

a

copy

of

the unamended

r:linutes of

the

meeting

of

Wednesday afternoon

Larch

10th

including

therein

however the

language suggested by

Sec-

retary McAdoo with reference to

his

own position.

7/21/2019 19150312_Minutes.pdf

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216

The

Board

resumed discussion

of the rate

of

rediscount between Federal Reserve

banks

and

the

Jecre-

tary

of the

Board

read

telegrams and a

letter

from

various

Federal

reserve

banks

relating to

the

subect.

:Ir

Hard-

ing

also reported

the

substance

of

a converat

on with

Governor

::cord

of

the

Federal Reserve Bank of

Atlanta.

The principle

involved in

the

action

taken was

rediscussed.

In

view

of a possible misunderstanding

on the

part

of

Fed-

eral

Reserve

banks

as

to

the

nature

of

the action

taken

on

I : a r c h

10th,

the 3ecretary of

the

Board was

instructed

to

send

a wire to

each Federal reserve agent stating

that

the

action

related only

to

voluntary rediscounts

between

banks.

On motion,

the question of

appeals

in the

redis-

tricting

matter was

laid

on

the table

until

Saturday,

Liarch

13th.

Delano

reported

the

receijt of a message

from

the Governors of reserve banks in conference

in

this Jity,

to

the

effect that they would

like

an op ortanity

of

confer-

ring

with the

Board.

It was

infornally

agreed that

the

Gov-

ernors should

be

informed that such

members of

the

Board

as

are

in their offices

at

four o clock

on the

afternoon

of

this

day,

would be glad

to

meet

informally

in

the

Board room

with

such

Governors

as

might

feel disposed

to

attend.

7/21/2019 19150312_Minutes.pdf

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217

It 

was indicated

 th._t

the

Go

vernor

s had 

a

larg

e

nu: ber

 

of

toni

cs

b

efore

the

m.

Mr.

Warb

urg

sugg

ested the

 

desir

ability

 of namin

g

s

ub

-commi

ttees o

f the

 

Board to

 

deal with the

 more importa

nt

of

th

ese

sub

jects.

A

t this

 

p

oint a

 

b

ulletin

 

annou

ncing th

e

succ

ess

of

 th

e

operati

on perf

ormed

u

pon

S

ecretar

y of 

the 

T

reasury

1

:cAdoo at

Provid

ence 

Hos

pital

was

r

ead to the

Boar

d.

T

he

Secret

ary w

as ord

ered to

r

ecord a m

inute

ex i 

ir

essive of

the

sat

isfacti

on

of

the

members

 at

receivi

ng 

thi

s

ne

ws.

Th

e 

S

ecretar

y

of 

the

 

B

oard 

was dire

cted to ask

the

Comptr

oller

of

the

 

Curr

ency

fo

r a

file of

 

the 

fo

rms

f

or

bank repo

rts sen

t to

:7a

tional

ba

nks

during

the

p

ast

few

ye

ars

the

sam

e for

the 

us

e of

the

B

oard.

On

moti

on

it

was

 

v

oted

to

app

oint a

Com

mittee

 

of

two

pe

rsons

1:r. 

Del

ano

and

: L r Harding

 

o

n

t

he

r

elation

of

the

reserv

e

syst

em with

 the

Treas

ury

Depa

rtment

and

w

ith

the

offi

ce of

the

Co

mptroll

er of 

t

he 

Curren

cy.

Mr

Delan

o

nrese

nted

to

 the

Board a

re

port

rela-

tiv

e

to

the

weekl

y  mo

nthly an

d

annu

al r

eports of

Federal

reserve

 

agents and

the

 same

afte

r discuss

ion

was

r

eferred

to

r

.

Harding

 for

 fur

ther

re

vision.

A

r

ecommen

dation

havi

ng be

en resent

ed on

b

ehalf

of Chief

of

Division Broderick

for 

the acceptance

of

State

7/21/2019 19150312_Minutes.pdf

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2

1

8

ba

nk

 

ex

am

in

at

io

ns

 i

n 

th

e 

c

as

e 

of

 th

e Ba

nk

 o

f 

W

oo

dr

uf

f 

3

  J

. 

an

d i

n

th

e

ca

se

 

o

f 

th

e 

Ce

nt

ra

l 

T

ru

st

 

C

o.

 

Ch

ic

ag

o 

su

ch

 

a

cc

ep

ta

nc

e 

wa

s

a

ut

ho

ri

ze

d 

b

y 

th

e

Bo

ar

d

on

 t

he

 

c

on

-

di

ti

on

s

se

t

fo

rt

h

i

n

th

e 

me

mo

ra

nd

a 

o

f e

ve

n 

da

te

 h

er

ew

it

h.

A

 

le

tt

er

 f

ro

m 

H

on

.

3  J 

Hi

ll

 o

f C

on

ne

ct

ic

ut

 

re

qu

es

ti

ng

 t

he

 a

id

 of

 

t

he

 

B

oa

rd

 i

n

s

ec

ur

in

g

le

gi

sl

at

io

n

i

n

C

on

ne

ct

ic

ut

 

al

lo

wi

ng

 

Na

ti

on

al

 b

an

ks

 

t

o e

xe

rc

is

e 

th

e

fu

nc

ti

on

s

of

 

t

ru

st

ee

 

ex

ec

ut

or

 

e

tc

.

w

as

 

pr

es

en

te

d 

to

th

e 

B

oa

r

d.

 

Re

ce

ip

t

wa

s

 

o

rd

er

ed

 a

ck

no

wl

ed

ge

d 

a

nd

 

a

 

co

py

r

ef

er

re

d 

t

o

 

t

he

 

Fe

de

ra

l

Re

se

r

ve

 

Ag

en

t

at

 

Bo

st

on

 

an

d

an

ot

he

r

to

 

t

he

 

Co

un

se

l

of

 

th

e

Bo

ar

d.

A 

memorandum

from the Counsel of the Board 

in the

f

or

m o

f

 

a

 

l

et

te

r t

o L

i  Wa

rb

ur

g

re

la

ti

ng

 t

o 

t

he

 

us

e 

of

 

c

ol

-

l

at

er

al

 so

ld

 by

 

o

ne

 

Fe

de

ra

l r

es

er

ve

 

b

an

k

to

 

a

no

th

er

 f

or

 

th

e

p

ro

te

ct

io

n o

f Fe

de

ra

l 

re

se

rv

e

n

ot

es

  wa

s

re

ad

 to

 

th

e

Bo

ar

d.

O

n

mo

ti

on

 

a

 

c

op

y

w

as

 

o

rd

er

ed

 s

en

t 

t

o 

a

ll

 F

ed

er

al

 

re

se

rv

e

ag

en

ts

.

O

n 

m

ot

io

n

i t

 

wa

s

v

ot

ed

 th

at

 h

en

ce

fo

rw

ar

d 

a

l

l 

official

le

tt

er

s 

o

f

t

he

 B

oa

rd

 

re

la

ti

ng

 t

o 

m

 t

te

rs

 

o

f g

en

er

al

 

i

mp

or

ta

nc

e

b

e

pr

ep

ar

ed

 fo

r 

tw

o 

si

gn

at

ur

es

 

th

os

e 

o

f

 th

e

Go

v

er

no

r

o

r 

A

ct

i n

S

G

ov

er

no

r 

an

d 

th

e 

Se

cr

et

ar

y 

or

A

ct

in

g

S

ec

re

ta

ry

 o

f th

e

B

oa

rd

.

A

 

r

ep

or

t 

p

re

pa

re

d 

b

y

Ch

ie

f

o

f

Di

vi

si

on

 

B

ro

de

ri

ck

 

r

el

lY

t

iv

e 

t

o

m

et

ho

ds

 o

f 

ex

am

in

in

g 

t

he

 t

ru

st

 

de

pa

rt

me

nt

s 

o

f

Na

t

0

7/21/2019 19150312_Minutes.pdf

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banks 

autlid . rized to 

exercise 

the 

functions

of trustee

execut

or etc.

  was

present

ed to

the

Bo

ard.

Copie

s

we

re

or

dered 

trans

mitted to

 

ea

ch 

m

ember.

On

no

tion

questi

ons

r

elating

 to

the issu

of

2ede

ra1

rese

rve note

s at

:Tow Yo

rk

and

 el

sewhere

 

were

lai

d

on the 

table

for the

tim

e

b

eing.

A

let

ter to the

Nationa

l Park

Bank

rel

ating

to

ac

centanc

es in 

transa

ctions

 invol

ving trade

 

be

tween

two

forei

gn

countri

es

w

as

ta

ken up

f

or d

iscussi

on and

 

fi

nally

laid

on the table

for the

time

be

ing.

On 

motion

 the

 

Boa

rd adj

ourned t

o

meet 

on 3aturd

ay

::a rc

h 1

3 at

10.

30

a. 

m.