19200707_Minutes.pdf

At a meeting of the Federal Reserve Board held in

the office of the Board on Wednesday, July 7, 1920, at 11 A.M.,

PRESENT: The ChairmanThe GovernorMr. HamlinMr. MoehlenpahMr. PlattMr. nlliamsMr. Emerson, Assistant Secretary.

PRESENT ALSO:Mr. Logan, Assistant Counsel.

Minutes of meeting of the Executive Committee held

Tuesday, July 6th were read, and the action of the Committee

set forth therein ratified.

Business was presented and disposed of as follows:

Memorandum dated July 6th from the Director, Division

of Analysis and Research, recommending that the Board establish

a subscription price of $4 per annum for the complete (second)

edition of the Federal Reserve Bulletin effective at once,

present subscriptions to continue on the old basis until the

subscription periods already paid for have been completed.

Approved.

The Governor reported the reserve positions of the

several Federal Reserve Banks as at close of business July 3d,

and the status of rediscounts between Federal Reserve Banks as

of the same date.

The Governor reported rediscount transactions, pur-

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suant to authority heretofore vested in him; member bank

promissory notes secured by Government obligations; rate 7%

on commercial paper, as follows":

Date Bank Redis- With Amount Maturities counting

July 6th Kansas City Boston $6,009,638.40 45 days

Noted.

The Governor reported rediscount transaction, pursuant

to authority heretofore vested in him; member bank promissory

notes secured by Government obligations; rate 65 on commercial

paper, as follows:

Date Bank Redis- With Amount Maturities counting

July 6th St. Louis Cleveland $5,000,000 31-90 days

Noted.

The Governor reported rediscount transactions, pursuant

to authority heretofore vested in him; member bank promissory

notes secured by Government obligations: rate 5-1/2,r0 on paper

secured by certificates of indebtedness, and 0 on paper secured

by Liberty bonds and Victory notes, as follows:

Date Bank Redis- With Amount Maturities,counting

July 6th Minneapolis Cleveland $2,500,000 11-15 daysff Richmond Boston 10,000,000

Noted.

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(At this point the Chairman and Mr. Williams joined

the meeting)

The Governor submitted telegram received by him from

the Governor, Federal Reserve Bank of Kansas City, replying

to telegram sent by the Governor in connection with advice

received from the First National Bank, Rawlins, Wyoming, that

the Omaha Branch of the Federal Reserve Bank of Kansas City

had refused to rediscount for it, domestic acceptances secured

by bills of lading covering wool in transit.

On motion duly made and seconded, the

Governor was authorized to obtain from

Governor Miller further data supplementing

his telegram with reference to the refusal

of the Omaha Branch to rediscount acceptances

based on wool in transit for the First National

Bank of Rawlins.

Letter dated July 6th from the Governor, Federal Re-

serve Bank of Boston, advising that under date of July 2d

his Bank had discounted for the Federal Reserve Bank of

Dallas, 35,000,000 member bank promissory notes secured by

Government obligations, which collateral the Dallas Bank

had accepted as security to notes at face value rather than

market value. The Federal Reserve Bank of Dallas advised

that it does not desire to request additional collateral from

its member banks, but would be willing to lodge further paper

with its Agent for the account of the Federal Reserve Bank

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of Boston as additional security for the $5,000,000 rediscount.

Referred to Assistant Counsel for report.

Letter dated June 29th from the Governor, Federal Re-

serve Bank of Philadelphia, recommending increases in salaries

of employees of that Bank in the amount of $14,560 per annum,

effective July 1, 1920.

Approved.

Letter dated July 3d from the Deputy Comptroller of

the Currency, advising of reassignments in the National Bank

Examining force during the month of June, 1920.

Noted.

Mr. Moehlenpah moved that the salaries of private

secretaries to Members of the Board be fixed at a minimum of

$3,000 per annum, and a maximum of $3,500 per annum.

Motion disapproved.

The Governor submitted for approval of the Board,

draft of letter to the Chairman, Federal Reserve Bank of

Dallas, with reference to the policy to be pursued by that

Bank in connection with the settlement of claims due on ac-

count of items forwarded for collection by the Federal Re-

serve Bank of Dallas to the Bank of Ranger, Ranger, Texas,

failed.

Approved.

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On motion duly made and seconded, the Governor was

authorized to communicate with the Chairman, Federal Reserve

Bank of Dallas, expressing surprise of the Board at the

negligence of the officers and employees of that Bank in

connection with forwarding items for collection to the Bank

of Ranger, Ranger, Texas, a non-member bank, for the period

of more than three weeks without receiving any payment or

advices from that institution.

Letter dated July 2d from the Governor, Federal Re-

serve Bank of Cleveland, recommending that that Bank be given

authority to acquire a parcel of property immediately adjoin-

ing the site of their new bank building.

On motion duly made and seconded, the

Board approved the acquisition of this property

by the Federal Reserve Bank of Cleveland on

terms satisfactory to the Board of Directors

and to the Counsel of that Bank, with the

understanding that the ,purchase price will

not exceed $375,000.

At 12-40 P.M., the meeting adjourned.

Approved:

I /7-/lia/4•2Chairman.

Assistant Secretary.

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