19200130_Minutes.pdf

At a meeting of the Federal Reserve Board held in

the office of the Board on Friday, January 30, 1920, at

11 A.M.,

PRESENT: The GovernorMr. StraussMr. MillerMr. HamlinMr. MoehlenpahMr. WilliamsMr. Chapman, Secretary.

Minutes of the meeting of the Board held on January

29th were read and on motion approved.

(At this point Mr. Williams joined the meeting.)

Business was presented and disposed of as follows:

The Governor read a memorandum commenting upon the

report of condition of the Guaranty Trust Company of New

York as at the close of business December 31, 1919.

Referred to the Governor for report, after con-sultation with the Federal Reserve Bank of New York.

Letter dated January 26th from the Chairman of the

Federal Reserve Bank of Dallas, enclosing a letter addressed

to him under date of January 24th by the American Exchange

National Bank, Dallas, Texas, in re the condition that the

examining committee be more active, imposed upon the exer-

cise of fiduciary powers by that bank.

Voted that the letter of the American ExchangeNational Bank be considered as an acceptance by itof the condition imposed upon the exercise of fidu,ciary powers.

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

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Letter dated January 29th from Consulting Architect

Trowbridge, recommending acceptance of the bid of the

New York Safe and Lock Company to install a vault in

the proposed new bank building of the Federal Reserve

Bank of Philadelphia at a cost not to exceed $598,158.

Approved.

The Vice Governor submitted for ratification a let-

ter addressed by him under date of January 29th to the

Acting Director of the Division of Foreign Exchange,

authorizing the Federal Reserve Bank of New York to pur-

chase in the open market bills drawn, accepted and in-

dorsed by the Park Union Foreign Banking Corporation,

the Asia Banking Corporation, and the International

Banking Corporation in connection with the stabiliza-

tion of rates of exchange between the United States

and China.

Voted to ratify the action of the Vice Governor

in addressing his letter to Mr. Crane in the form

submitted, and to authorize the extension of the

limit of the drawing of such bills to the sum of

$20,000,000 during the month of February 1920.

Letter dated January 28th, from the Chairman of the

Federal Reserve Bank of Atlanta, making a re7)ort as to

why the Clearing House Association of Atlanta, Georgia,

had so far failed to make effective the proposed plan for

differentiation in exchange charges in favor of items of


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banks on the par list and against items of banks not

on the par list.

On motion duly seconded it was voted thatthe Governor be authorized to address a letterto the Chairmen of all Federal Reserve Banks,requesting them to obtain from the leading clear-ing house associations of their districts expres-sions as to what extent the Board might count upontheir cooperation in securing nation-wide par col-lection, b7 such clearing house associations' dif-ferentiating tn exchange charges against items ofbanks not on the par list.

Telegram dated Janury 30th from the Chairman of

the Federal Reserve Bank of Dallas, requesting approval

of the following schedule of discount rates, effective

February 3d:

"Notes with maturity 1-90 days, including memberbank collateral notes secured by certifi-cates of indebtedness, 4-1%;

"Notes with maturity 1-90 days, including memberbank collateral notes secured by Libertybonds or Victory notes, 5e0;

"Corranercial paper with maturity 1-90 days, includ-ing member bank collateral notes so secured,

6%;"Agricultural paper 1-90 days, including member

bank notes so secured, 6%;"Agricultural paper 91 days to 6 months, 5e0;"Trade acceptances 1-90 days, 5,1%;"Notes secured by War Finance Corporation bonds,

7%"Minimum rate on bankers acceptances, not pub-

lished, W."

Voted to approve the schedule as submitted,except that the rates proposed on agriculturalpaper 91 days to 6 months, trade acceptances 1-90 days, and rediscounts of bankers acceptancesbe disapproved, and that the Board establish forthe Federal Reserve Bank of Dallas the followingdiscount rates on those classes of paper:


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Agricultural paper, 91 days to 6 months,Trade acceptances, 1-90 days, 6%;Rediscounts of bankers acceptances, 5%.

Letter dated January 30th from Consulting Counsel

rlliott, submitting his resignation as such, effective

February 1, 1920.

Voted to accept the resignation.

On motion duly seconded the question of employing

additional counsel to assist in the preparation of regu-

lations governing the operations of corporations to be

organized under the provisions of the vdge Act was re-

ferred for report to a committee consisting of the Governor,

the Vice Governor, and the Chairman of the Law Committee.

Report dated January 26th, recommending that action

on the applicntion of the Lincoln Trust Company, New York

City, for authority to accept drafts and bills of exchange

up to 100% of its capital and surplus, be deferred until

capital is increase4 and more time is afforded to determine

the policy and development of the bank.

Approved.

Letter dated January 29th from the National City Bank

of New York, advising of the opening on January 15th of

a branch of that bank in Cape Town, South Africa.

Noted.

REPORTS OF COMMITTEF, NO. I:

Dated January 30th, recommending admission of State banking


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institutions as set forth in theauxiliary minute book as of thisdate, subject to the conditionsstated in the Individual reportsattadhed to each application.

Approved.

Dated January 30th, recommending action on applicationsfor fiduciary powers as stated inthe auxiliary minute book as of thisdate.

Approved.

Dated Jan=ry 30th, recommending changes in stock at:Federal Reserve Brnks as set forthin the auxiliary minute book as ofthis date.

Approved.

At 1:05 P.M. the meeting adjourned.

Secretary.

Approved:

o 1%


Documents

19200130_Minutes.pdf