19200326_Minutes.pdf

At a meeting of the Federal Reserve Board held in

the office of the Board on Friday, March 26, 1920, at 11 A.Y.,

PR73ENT: The GovernorMr. MillerMr. HamlinMr. Moehlonpah

Chapman, secretary.

Minutes of meeting of the Board held March 25, 19.70,

'ere read, and on motion approved.

Business vas presented and disposed of as follows:

The Governor submitted for al-in-I-oval, draft of reply

on behalf of the Board, dated March 26th, to Senate resolu-

tion No. 320 in re rates on call loans ih commercial centers.

Approved as amended.

The Governor reported rediscount transactions, pur-

suant to authority heretofore vested in him: member bank'

promissory notes secured by Government obligations: rate 51,

on paper secured bi certificates of indebtedness, and 6-1/2;

on paper secured by Liberty bonds and Victory notes, as

follows:

Date Bank Bed's- 7:ith Amount Maturities

countinP

March 24th Riohmond Dallas 7:5,')20,000 11-15 days

Richmond Cleveland 5,000,000

St. Louis Minneapolis 2,500,000 If

3t. Louis Cleveland 5,000,000

Noted..

The Covernor reported the reserve positions of the

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

several Federal Reserve banks as at close of business March

24th, and the status of rediscounts between Federal Reserve

banks as of the same date.

'Memorandum by Yr. Emerson dated March 23d, submitting

for determination by the Board. the question of whether or not

the Federal Reserve Bank of New York should show in its s.tate-

ment of condition the contingaat liability assumed by that Bank

in connection with the purchase of bills under its contract

with the Bank of Japan heretofore approved by the Board.

Referred to the Governor with rower to in-

struct the Federal Reserve Bank of New York to

carry in its statement a footnote to the effect

that it has contingent liability in the amount

of such liability on bills bought and held for

account of foreign correspondents.

LtemorcIdum by Mr. Paddock dated March 25th in regard

to the examination of foreign banking corporations, submitting

the following recommendations:

That the practice of participating with the New

York State Banking Department in their examinations

of five corporations coming under their supervision

be continued:That, if it meets with the approval of the

Comptroller of the Currency, the examinations of the

International Banking Corporation of New York, the

First National Corporation of Boston, and the Shawmut

Corporation of Boston, be taken up by the National

Bank Examiners in connection with their examinations,

respectively, of the National City Bank of New York,

The First National Bank of Boston, and the Shawmut

National Bank of Boston, the institutions owning a

majority of the respective three foreign banking cor-

porations mentioned.

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

_

-3-

That an examination be made during the current

year of the Mercantile Bank of the Americas by Federal

Reserve examiners, either independently or with the Con-

necticut authorities, if they desire to participate;

That advantage be taken of any action of the New

York State Banking Department, toward the examination

of the foreign branches of foreign banking corporations

under their supervision.

Approved.

Memorandum by Mr. Imlay dated March 24th, advising of

the withdrawal from membership in the Federal Reserve System

of the State Bank of Trumansburg, New York.

Noted.

REPORTS OF C01,21=E NO. 1:

Dated March 25th, recommending changes in stock at Federal

Reserve banks, as set forth in the auxiliary

minute book as of this date:

Approved.

Other business was presented and disposed of as follows:

The Governor submitted for approval, draft of letter

by him dated March 26th (X-1873), addressed to the Governors

of all Federal Reserve banks, transmitting topics for dis-

cussion at the conference of Governors to be held on April 7th.

Approved as amended.

Letter dated March 26th from the Secretary of the

Treasury, requesting that the Board detail Yr. Montgomery B.

Angell, Assistant Counsel, to the Treasury Department for the

purpose of accompanying the Treasury's representative to the

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

-4-

Virgin Islands to make report upon monetary. conditions there.

Referred to the Governor with power.

At 1 P.n., the meeting adjourned.

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