19210331_Minutes.pdf

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A meeting of the Federal Reserve Board was held in the office of

Board on Thursday, March 31, 1921, at 11:30 a.m.

PlE SENT : Governor Hard lugMr. PlattMr. HamlinMr. MillerMr. Cri ssingerMr. Hoxton, Secretary.

Minutes of the meeting of the Board held March 30th were read

arid- en motion approved.

The Governor reported. the reserve positions of the several Feder-

al Reserve banks as at close of business March 29th and the status of

l'ed-iscounts between the Federal Reserve banks as of the same date.

Letter dated March 30th, from the Railway Loan Advisory Committee

Of the Federal Reserve Board, requesting approval of a form of loan in

tho amount of :'1 311,000, to be made to the llorfolk Souti-Brn Railroad Co.,said loan to be made in two parts, the carrier electing to draw down at

this time that part of the loan amounting to !')111,000, under the provis-

1°118 Of Section 210 of the Transportation Act, 1920, as amended.

Approved.

Letter dated March 30th, from the Railway Loan Advisory Committee

(31' the Federal Reserve Board, requesting approval of a form of loan inthe amount of :11,564,000, to be made to the Alabama and Vicksburg Railway00

said loan to be made in two parts, the carrier electing to draw down4t this time thrt part of the loan amounting to 1,394,000, under the

'lons of Section 210 of the Transportation Act, 1920, as amended.

Approved.

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Letter dated March 30th, from the Assistant Federal Reserve

Agent at Yew York, in mply to a letter from Governor Harding calling

attention to the recent publication of a statement to the effect that

Senator La Follette had. recently in a speech indicated that in certain

specific cases the provisions of the Clayton Act with reference to

interlocking directorates were being violated in New York City. The

reply of the Assistant Federal Reserve Agent at New York clearly in-

dicated that the statements in this connection,attributed to Senator

La Follette, were erroneous.

Upon motion, it was moved t],at a letter giving theactual facts in the above case be sent to the Chairmanof the Senate Committee on Banking and Currency.

Letter dated March 30th, from the Consulting Architect.

stating his opinion that the fees proposed to be paid to the archi-

tects, engineers and builders employed by t'ne Federal Reserve Bank

Of IT, York are usual and reasonable.

In view of this letter and in accordance withaction previously taken, Gov:rnor Harding was author-ized to advise the Federal Reserve Bank of I:ew Yorkthat the Federal Reserve Board interposes no object-ion to the proposal of that bank to proceed at oncewith razing old buildings, making excavations andconstructing foundations for the new building.

Governor Harding stated that the Committee appointed by the

Board on March 29th to make a study of recommendations for certain

salary increases for senior officers of the Federal Reserve banks

has had a conference with the Chairman of the Board, and desired to

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report that in view of existing conditions the proposed increases

should not be allowed.

Approved, it being understood that Governor Hardingwill mention this matter at the forthcoming conferenceof Governors.

Letter dated March 29th, from the Chairman of the Federal

Reserve Bank of Chicago, stating that several employes of the Mem-

ber Bank Relations Department of that bank are now stationed tempor-

arily at the offices of certain specified member banks which are re-

garded by the Federal Reserve Bank of Chicago as being in an unsatis-

factory condition.

Noted.

Letter dated March 29th, from the Chairman of the Federal Re-

serve Bank of Chicago, suggesting that the published statement of

the Federal Reserve banks show that portion of profits Which must be

set aside for the payment of franchise tax required by law.

Referred to Governor Harding, with the understand-ing that, if he deem proper, he bring the matter up be-fore the next Governors' Conference.

With reference to the matter of reimbursing the office of

the Comptroller of the CurTerry for e3q)ense incurred in furnishing

the Federal Reserve banks with copies of examination reports, Mr.

biller moved that the question of such reimbursement be referred

to Governor Harding and to the Comptroller of the Currency with power.

Carried.

In accordance with action taken by the Board at its meeting

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en March 25th, the Committee composed of Mr. ?latt and Mr. Hamlin,

appointed for the purpose of preparing an amendment to the Kern

Amendment of the Clayton Act, reported with its recommendation the

following:

AN ACT to amend Section 8 of an Act ent itled "An Actto supplement existing laws against unlawful restraints andmonopolies, and for other purposes", approved October 15,1914, as amended May 15, 1916, and May 26, 1920.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRES=ATIVESOF BIE UNITED STATES OF AMERICA IN CONGRESS ASSMIBLM, ThatSection 8 of the Act entitled "An Act to supplement existinglaws against unlawful restraints and monopolies, and for otherPizrposes", approved October 15, 1914, as amended by the Actsof May 15, 1916, and May 26, 1920, be further amended bystriking out the period at the erri of the second_ clause ofsaid section and adding to said clause the following:

"or if in the judgment of the Federal ReserveBoard such an interlocking relation will notresult in a rastriction of credit or lesseningof competition."

Upon motion, the Board tentatively approved the aboveproposed mendment, and Mr. Platt was requested to confer

on the matter with tl-e- Chairman of the Bo rd, with aview to ascertaining the opinion of Yr. Mellon in thisconnect ion.

Memorandum dated March 30th, from the Division of Examination,

l'ecommeniing approval of the application for the consolidation of

the Bank of Social Circle, Ga. with the Walton County Bank of Social

Circle, Ga., a member of the Federal Reserve System.

Approved.

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REPORTS OF COMMIT TEE NO. 1:

Dated March 29th, •Reconmending approval of application for admission31st, of state institutions, subject to the conditions

contained in the reports attached to the applica-tions, as set forth in the auxiliary minute bookas of this date.

Approved.Dated March 31st, Recormend.ing approval o f the application of Mr.

J. W. Berryman to serve at the same time as officerand director of the First National Bank of Wichita,Kans. and as officer and director of the Stock-growers National Bank of Ashland, Kans.

Approved.Dated March 31st, Recommending approval of the application of Mr.

John B. Griffey to serve at the same time as direct-or of the CommBrcial National Bank and the 7.'orth-western State Bank, both of Indianapolis, Ind.

Appro ved.Dated March 31st, Recommending aparoval of the application of Mr.

jaMOS L. Gavin to serve at the same time as direct-or of the Coinmercial National Bank and the North-western State Bank, both of Indianapolis, Ind.

.Apnro ved.Dated. March 31st, Reco mending appr oval of the application of Mr.

Eversley Childs to serve at the same time asdirector of the Irving National Bank of Nor YorkCity and as director of the Tinker National Bankof East Setauket , N.Y.

Approved.Dated March 31st, Re co mend ing approval of the application of Mr.

Charles S. Child to serve at the sane time asdirector of the First National Bank and the North-ern Trust Company, both of PhilPdelphia, Pa.

Approved.

At 1:00 p.m. the meeting adjourned.

Secretary.

Approved:

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