19210622_Minutes.pdf

A meeting of the 2edera1 Resrve Board was held in the office

Of the Boa'd on Wednesday, June 22, 1921, at 11:20 a.m.

PRMTITT: Governor 1?ardingr.Plat t

Mr. HamlinMr. Miller

MitchellIr.Grissinj3er

Iioxton, Secret -J.ry.

The minutes of the meetin7 of the Board held June 21st were

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read and on motion approved.

The Governor reported the reserve positions of the several

Federal reserve banks as at close of bus iness ,7,ane 20th and the status

Of rediscounts between th Federal reserve banks as of the same date.

The Governor rep' ted Tools co unt transact ions ,manber bank

promissory notes secured by Government obligations, rate e&e.% as follows:

Date Bank red_Is-count inj

7ith Amount L'Iaturi ti es

Juno 21st Richmond Mew York ,000 ,000 11-15 da7sJune 21st Minneapoli s :7ew York 4,000,000 11-15 days

1-90 days

Memoranium dated June a st , from the Div is ion of Examination,

transmitting the application for membership in the Federal Reserve System

Of the Dixie Stockgrowers Bank, St. George, Utah, and recommending that

the application be not acted upon at this time, said recommendation

ecncurrjng in the opinion of the Federal eserve Agent at San Francisco.

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Approved.

Letter dated June 21st, from the Assistant Federal Reserve

Agent at Cleveland, transmitting with favo rable recommendation the

application of the Brotherhood of Locomotive Engineers Coorrative

rational BE.nk of Cleveland, Ohio, for authority to accept drafts and

bills of exchange up to 100,-1 of its cap ital and surplus.

Approved.

Telegram dated June 22nd, from the Chairman of the Federal

Reserve Bank of Atlanta, advising that the Board of Directors of that

bank had subject to the reviav ard determination of the Federal Reserve

Board fixed a rate of 6% upon raper secured by United States Treasury

notes.

Approved.

Letter dated June 20th, addressed to Mr. Miller from the

Wheatgrowers? Association of Spokane, Vlash., recnrsting an informal

Opinion to the effect that the notes of farmers made payable to the

Association and secured by warehouse receipts for grain shall be eligi-

ble for rediscount at the Federal Reserve Barks as agricultural paper.

Referred to General Counsel.

Telegram dat ed June 22nd, from the Cha irman o f the Federal

Reserve Bank of Atlanta, advising of the plan under thich that bank

Will take over certain Government bonds owned by the Bank of Tennessee,

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at Nashville, Tenn., ari at present used as collateral to loms at

[1the Federal Reserve Bank of Atlanta.

Governor Harding was requasted to advise the FederalReserve Bank of Atlanta that while the Board regretsthe original transaction, it is of the opinion thatthe plan proposed provides the best solution of thedifficulty at this time.

Governor Harding stated that he felt the tire had come when

the rediscount rate between Federal reserve banks should be reduced from

*A') to TZ.

After discussion, it was upon motion so ordered, Mr.Platt voting "No", and Lir. Miller not voting.

Letter dated June lath, from Mr. H. A. Moehlenpah, suggest inc

a ruling by the Board under vhich the Federal reserve banks would be

dixected to regard as eligible for discount the notes of the Investors'

Finance Corporation of Milwaukee, Wis.

Referred to Mr. ?latt for reply after caisultation withGeneral Counsel.

Letter dated June 17th from the Secretary of the Federal Re-

serve Bank of Chicago, sttmitting a list of adjustmnts in salaries of

the employees of that bank, approved by the Executive Committee on June

17th and effective July 1, 1921.

Approved, upon favorable recommendation by Mr. Mitchell,to whom this mat ter was referred at the meeting ofyesterday.

Draft of letter dated June 22nd, addressed by Governor Harding

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to the becreta.ry of the Ilreasury, regarding the proposed bill intro-

duced by Senator Capper, under the terns of which the Secretaries of

Commrce, ,,L7ricu1ture arti. Labor are added to the membership of the

Federal -Jeserve 1,oard.

Governor Harding was authorized to advise the Secretaryof the Treasury that the letter as drawn expressesthe sentiment of the Board.

Draft of letter dated June 22nd, addressed to the State De-

partment, replying to a letter of JUne 16th from that department ,

relative to the proposal to establish a Government baii in Cuba, to

be 000rated under the stpervi sion of the Federal Reserve Board.

Approved;..

Letter dated June 20th, from the Chairman of the Federal

Reserve Bank of Bostci, advising that that baiic had established, subject

to the review and. determination of the Federal Reserve Board, a discount

rate of 6`,Y) upon paper secured by United otates Treasury notes.

Appro ved.

R.1,1e0liTS OF CaTiTmE NO. 1:

Recommen.0 ing a2.) royal of applications for admissionof state institutions, subject to the conditionscontained in the irdivithaJ. reports attacher. to theapplications, as set forth in the alriliary minutebook as of this date.

Appnved.

Recommending certain action on aIy)licat ions forfiduciary pov:ers, as set forth in the auxiliaryminute book as of this date.

Appro ved.

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Recommending arp royal of the application of Mr.J. E. Sherrill to serve at the sane t1nx3 as directorof the First National Bank of Mooresville, N. C. andas director of the American Tryst Company of Charlotte,NO C.

Approved.

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

Secretary.

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