19210610_Minutes.pdf

A meeting of the Federal Reserve Board was held in the

Office of the Board on Friday, June 10, 1921, at 3:30 p.m.

PRESENT: Vice Governor PlattMr. MillerMr. MitchellMr. Criss IngerMr. Hoxton, Secretary.

Minutes of the meeting of the Board held June 9th were

read and on motion approved.

The Vice Governor reported the reserve positions of the

several Federal reserve banks as at close of business June 8th

.and the status of rediscounts between the Federal reserve banks

as of the seam date.

The Vice Governor reported rediscount transactions, mem-

ber bank promissory notes secured by Government obligations, raft e

ere, as follows:

Date Bank redis- With Annunt Maturities counting

June 9th Dallas Boston $1,000,000 11-15 days

Letter dated June 9th, from the Chairman of the Federal

Reserve Bank of Richmond, transmitting salary adjustments author-

ized, by the Board of Directors of that Bank, made in accordance

With the plan of consideration of such adjustments fbr employes

Other than officers won the anniversaries or semi-anniversaries of

the entrance of such employes into the service of the Bank, saici

Plans previously authorized by the Federal Reserve Board.

Approved.

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Memorandum dated June 9th, from the Assistant Secretary

Of the Treasur.q. Gilbert, as follows:

"In connection with the offerino; of Treasurynotes of Series A 1924, dated June 15, 1921, it willbe necessary, I stpoose, for the Federal ReserveBanks to take action to permit paper secured by thenew Treasury notes to be discounted at the FederalReserve Banks. ro question is involved as to anypreferential rate of discount and I assume ti-etthere will be no difficulty in having advarres ordiscounts secured by the notes made eligible for re-discount at the Federal T.-',eserve Banks at a flat rateof 6 per cent, in the same moaner as Treasury certi-ficates.

"There also arises the mestion of rettine; re-ports from the Federal Reserve Barks and reL)ortingmember ban lm as to holdings of and loans on the newTreasury notes. It seem to me that it will be neces-sary to introduce a new itan in the reports, designa-ted "Treasury notes". The Treasury notes constitute anew class of security md it would be a mistake to com-bine then either with Victory notes or with Treasurycertificates."

After discussion, the Vice Governor was requested_ to wire allFederal Reserve banrs, ten in number, havini: a unifoffn rate u,,on cer-tificates of ialobtedness, that the Board is of the opinion that thediscount rate for new Treasury notes should be the same as the rateOh certificates of irdebtedness, and. sh:uld be sham noon the rate

schedule in the sane column as certificates of indebtedness, The

Vice Governor was r eaue sted to trammit the same toleram to the two

Federal reserve banks meintainine; rates uniforn with the interest borne

13Y the certificates and to add the further ooinion of the Board. that a

Ilniform rate should son be established on all el-overnment secured paper.

Draft of letter dated tiune 10th, prepared by General Counsel

for the si,nature of the Vice Governor, in re)ly to the letter

Of June 3rd from the 7:at ional Foreign Trade Council, of :Tow Yoxic

City, with l'eference to i'znerican .cold coin used. by rsons in

E.;$4:

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Argentine in settlerent for goods exported from the United States.

Approved.

Letter dated June 9th, from the Chairman of the Federal Re-

serve Bank of New York, with reference to the allocation among

Federal reserve banks of funds accruing from the German reparation

received by the Federal Reserve Bank of New York for the credit of

foreim banks.

Upon motion of Mr. Mitchell, it was voted toconcur in the proposals of Mr. Jay.

Draft of letter dated June 10th, prepared by General Coun-

sel for the siglattuie of the Vice Governor, addressed to the Cash-

ier of the Federal Reserve Bank of Minneapolis, on the subject of

the publication of a non-par list by Federal reserve banks.

Approved.

R.MDORTs OF COMMITTEE NO. 1:

Dated June 9th, Reconmenling certain action on applications forfiduciary powers, as set forth in the amdliaryminute book as of this date.

Approved.Dated June 9th, Recommending approval of the application of blr.

Nathan S. Jones to serve at the sane time asdirector of the Ridgewood National Bank of Ridge-wood, N.Y. and as director of the ManufacturersTrust Co. of Brooklyn, N.Y.

Approved.

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Dated June 10th, Recommending approval of the application of Mr.George Eustis Paine to serve at the sane timeas di. rector of the Farmers Loan 8: Trust Co. ofNew York City, as second vice president and di-rector of the Johnsonburg National Bank of John-sonburg, Pa., and as first vice president anddirector of the Essex County National Bank ofWillsboro, N.Y.

Approved.Dated June 9th, Recommending approval of the application of Mr.

Roberdeau Annan to serve at the same time asdirector of the Second National Bank of Clurber-land, Md., as president and director of the FirstNational Bank of Fro stburg, Md. and as presidentand director of the First National Bank of Mid-land, Md.

Approved.Dated June 9th, Recommending approval of t In application of Mr.

Eugene Giles to serve at the sane time as officerof the National Copper Bank of Salt Lake City, asofficer of the First National Bark of Park City,Utah, and as officer of the First National Bankof Ely, Nevada.

Approved.

The meting adjourned. at 4:35 p.m.

Seer etary.

Vice Governor.

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