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

the Board on Friday, January 20, 1922, at 11:40 a.m.

PRESENT: Governor HardingMr. PlattMr. H aal linMr. MillerMr. MitchellMr. CrissingerMr. Hoxton, Secretary.

Minutes of the meeting of the Board held January 18th were read

and on motion approved as amended.

The Governor reported the reserve positions of the several Federal

Reserve Banks as at close of business January 17th and 18th.

Telegram dated January 18th, from the Federal Reserve Bank of San

Francisco, advising of the establishment by the Board of Directors of that

Bank, subject to the review and determination of the Federal Reserve Board

of a discount rate of 4?-.-?,--% upon all paper of all maturities, and a minimum

ala'r72,t. rate for open market purchases of bankers acceptances.

Formally approved, having been approved yesterdayby the initials of members of the Board.

Letter dated. January 19th, from the Deputy Gorernor of the Federal

Reserve Bank of New York, advising that the Board of Directors of that Bank

had, subject to the review and determination of the Federal Reserve Board,

fixes a rate of 3,-1-511, as the minimum rate for the open market purchases of

bankers acceptances.

Approved.

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Letter dated January 16th, from the Chairman of the Federal Reserve

Bank of Philadelphia, requsf sting authority to reduce from 4% to 3i% the

minimum rate for open market purchases of bankers acceptances.

Appic ved.

Leeter dated January 13th, from the Chairman of the Federal Reserve

Bank of San irancisco, requesting approval of the Federal Reserve Board for

the appointment of certain officers and employes of that Bank as regular and

special Federal Reserve Bank examiners.

Appro ved.

Letter dated January 18th, from the Secretary of the Federal Reserve

Bank of New York, advising of the action of the Board of Directors of that

Bank in fixing at5,000 a year that portion of the salary of Assistant

Architect Ten Eyck which. is to be paid by the Federal Reserve Bank of New

York, with the urrierstanding that that , portion which is to be paid by the

Federal Reserve Board shall be reduced to :112,500 per annum.

Appio ved.

Letter dated January 19th, from General E.H. Crowder, submitting the

name of Mr. Clarence Marine for nominat ion by the lederal Reserve Board as

a member of the Superior Liquidating Commission in Havana, Cuba, in place of

Mr. Oscar Wells.

Upon motion, it was voted to nOminate Mr. Clarence Marine,upon the recommendation of General Crowder.

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Letter dated January 17th, from the Governor of the Federal Reserve

Bank of Kansas City, submitting resolutions passed by the Kansas City Clear-

ing House Association with reference to freight rates on shipments of wheat

stopped in transit, and requesting the Zederal Reserve Board to cooperate

in securing favorable consideration by the Interstate Cormrerce Commission.

The Govieynor was requested to transmit the resolutionreferred to/fhe Chairman of the Interstate Commerce Commis-sion without recommendation.

Letter dated January 17th, from the Chairman of the Federal Reserve

Bank of Atlanta, submitting a resolution of the Board of Directors of that

Bank, protesting against the absorption by the Bank of expenses incurred

through the operations of the Fiscal Agents Department.

The Governor was requested to transmit the saidresolution to the United States 7reasury Department,with advice that the Board indccrses the positiontaken by the Federal Reserve Bank of Atlanta.

Upon motion the Board approved the bond of Mr. Joseph C. Nevin,

Assistant Federal Reserve Agent at Cleveland, Ohio, in the mount of ̀.1 50,-

000.

The Governor,submitting a list prepared by the Secretary of the sev-

eral committees of the Federal Reserve Board, called attention to Section

1, Article 4 of the By-Laws, as follows:

"There shall be an'..Ixecutive Committee of the Board consistingOf three menbers, which shall include the Governor and Vice-Governor and oneOther. The third member shall be nominated and elected at a regular meetingOf the 7oard. Members of the Board shall serve as far as practicable inrotation and for periods to be fixed by the Board from time to time. Twomembers shall constitute a quorum for the transaction of business."

In view of the fact that IL-. Miller, the present thirdmember of the .xecutive Committee, has been serving for sixmonths, it was voted to elect Mr. Mitchell to that place.

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Telegram dated January 19th, from the Governor of the Federal Reserve

Bank of San Francisco, tendering his resignation as a member of the Board's

Committee on Internal Economy and Comparative Efficiency.

Accepted, with the understanding that Mr. Mitchell andMr. Miller are authorized to select a successor to Gov-

ernor Calkins on the Auxiliary Committee.

Letter dated January 20th, prepared by Governor Harding and addressed

to Mr. Harrison, Deputy Governor of the Federal Reserve Bank of New York, re-

garding the latter's suggestion that a conference should be held of the

Eligibility Committee of the Federal Reserve Banks with reference to the gen-

eral policy of the inter-bank conferences.

Approved; with slit amendment.

Letter dated January 16th, from the Secretary of the Federal Reserve

Bank of Chicago, making inquiry as to the authority which may rightly be

assumed by Federal Reserve Bank x;xaminers in their examinations of member

banks.

Referred to the Comptroller of the Currency for adviceas to the proper nature of the Board's reply.

Letter dated January 18th, from the Federal Reserve Bank of Philadel-

phia, detailing certain arrangements Which have been made by that Bank with

the First National Bank of Scranton, Pa., with a view to keeping in Scranton

a supply of Federal Reserve notes for the use of miter banks in that City.

Referred to the General Counsel.

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Letter dated January 17th, from the Chairman of the Committee on

Banking and Currenoy of the House of Representatives, submitting House Bill

No. 8399, with reference to Section XI of the Federal Reserve /let, and in-

quiring if it is necessary to have the provisions of that section extended

to October 31, 1922.

Upon motion, it was voted that legislation in thismatter is not necessary.

Upon motion, a recess was taken at one o'clock, the meeting to re-

convene at 2:30 p.m.

P ursuant to the terms of adjournment, the Board reassenibled at

2:50 p.m.

PRESENT: Governor HardingMr. PlattMr. HamlinMr. MitchellMr. Hoxton, Secretary.

Telegram dated January 20th, from the Federal Reserve Bank of

Chicago, requesting authority to reduce from 4% to 33-,1 the rate for open

:market purchases of bankers acceptances.

Approved.

After further brief discussion concerning the natter of the estab-

lishment of branches by the Bank of Italy, it was agreed that the letter

Prepared by Mr. Mitchell and submitted at the meeting of January 18th,

should be transmitted to the Chairman of the Federal Reserve Bank of San

Francisco, with the information that while the opinions expressed by Mr.Mitchell did not prevail so far as final action by the Board was concerned,that all Members of the Board nevertheless had been much impressed by thoseopinions.

1

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Yemorandum dated January 12th, from the Secretary of the Board, re-

comrnsnding that the salary of the Chief Clerk, Mr. J. D. DeLaMater, be in-

creased f,?'300. per annum, from 4200 to 4500 per annum, effective January

1, 1922.

Approved.

Two letters dated January 18th, from the Chairman of the Federal

Reserve Bank of Atlanta, requesting approval of the salaries of certain

new employes and advising of certain transfers, resignations and dismissals.

Approved, upon recommendation of the Committee onSalaries and Charge Offs.

Letter dated January 18th, from the Chairman of the Federal Reserve

Bank of Atlanta, submit ting a list of the Employes of that Bank and Branches

(other than officers and Assistant Federal Reserve Agents) showing the

salaries as of December 31, 1921, with proposed changes in galaxies of cer-

tain employes as of January 1, 1922; the changes in salaries proposed,

McCord stated, having all been considered and recommended by the Managing

Committee ard approved by the Salary Committee, subject to the approval of

the Federal Reserve Board.

Approved, upon recommendation of the Committee onSalaries and Charge Offs.

Letter dated January 14th, from the Federal Reserve Agent at Atlanta

advising that the Federal Reserve Board had disapproved, subject to further

information,- increases of '1300. each in the salaries of three employes of

the Federal Reserve Agent's Department, ani providing further detailed in-

formation regarding the said three employes.

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Upon motion, in view of the additional informationfurnished by Mr. McCord, the Bank was authorized to in-crease in the sum of ;7-300. per annum the salaries ofMessrs. J. W. Ilonneur, Examiner, J. E. McGuire, Examiner,and D. E. Moncrief, Manager of the Reseamh and Statisti-cal Division. Said action was talKon won recommendationof the Board's Committee on Salaries and Charge Offs.

Letter dated January 14th, from the Chairman of the 7ederal Reserve

Bank of Atlanta, givino; further and detailed information reT,rdinp.. certain

persons for vhom increases in salary were recommended by that Bank under date

of December 13, 1921.

Upon recommendation of the Committee on Salaries ardCharge Offs, in view of additional infbrn•ation furnishedby Mr. McCord, the Board voted, in addition to the increasefor Marcus Walker, Manager of the New Orleans Branch vthichwas previously approved, to approve the increases recommend-ed for the following: Messrs. Campbell, Taylor, Roper, Black,J. A. Walker, McNanEra, Fort and McLarin.

Letter dated January 14th, from the Chairman of the Federal Reserve

Bank of Atlanta, setting forth the details of the procedure which will be

followed by that Bank in future with regard to all changes • in Der'sonnel and

salaries.

Noted, with approval.

Letter dated January 12th, from the Salary Committee of the Pcord of

Directors of the Federal Reserve Bank of Kansas City, submitting recommend-

ations of that Committee with reference to certain officers of the head

office and the branches.

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•The Board upon vote approved increases as recomended

for A. M. McAdams,C. K. Boardman, R. 0. Wunderlich. For

L. H. l'arhart; and. C. A. Burkhardt the Board authorized

an increase of P,900. per annum each, in lieu of the ?.1500

per annum each recommended by the Federal Reserve Bank of

Kansas City. Said action was taken in accordance with the

recommendation of the, Committee on Salaries and Charge Offs.

Letter dated January 18th, from the Chairman of the Board and Feder-

al Reserve Agent at Philadelphia, making recommendations for adjustments in

salaries of certain employes and ,officers of the Federal Reserve Agent's

Department and the Auditing Department.

Approved, with the exception that the proposed increasefor Mr. Arthur E. Post, Assistant Federal Reserve Agent, from$8,000 to t"8,500 per annum was disapproved. Said action wastaken in accordance with the recommendation of the Committeeon Salaries and Charge Offs.

Letter dated January 18th, from the Governor of the Federal Reserve,

Bank of Philadelphia, submitting for the approval of the Board adjustments

in salaries of certain department heads and employes.

Approved, said action having been taken in accordancewith the recommendation of the Committee on Salaries andCharge Offs.

Letter dated January 12th, from the Chairman of the Federal Reserve

Bank of Richmond, advising of certain adjustments in salaries of employes

Of that Bank as of February 1, 1922, in accordance with the plan adopted by

that Bank of adjusting salaries on anniversaries and semi-anniversaries of

employment.

The Secretary was instructed to advise Mr.Hardy, inview of the fact that all other Federal reserve banks haveabandoned the plan of considering salary adjustments onanniversary dates, to strOmit to the Board a new recommend-

ation which will cover all salary adjustments applicable to

the year 1922.

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Letter dated January 16th, from the Comptroller of the Currency,

submitting changes in the National Bank Examining force which were made dur-

ing the month of December, 1921.

Approved.

Letter dated January 17th, from the Comptroller of the Currenay,

requesting approval of a salary of A8,500 per annum to be paid to Mr. Herbert

W. Scott, Chief National Bank Examiner in the First Federal Reserve District.

Approved.

Letter dated January 19th, from the Conptroller of the Currency, re-

questing approval of certain salary increases for five Chief Examiners and

for certain rational Bank Examiners in the various twelve Districts.

Approved.

Three letters dated January 17th, from the Comptroller of the Curren-

cy, requesting approval of increases in the salaries of rational Bank Examiners

as follows: Yr. Norwin S. Bean, from $4,200 to A4,500; Mr. Edward F. Parker,

from ?4,500 to A5,000; Mr. Harold VT. Black, from A4,200 to A4,500.

Approved.

REPORTS OF COMMITTEE NO. 1:

Dated January 20th,

Dated January 18th,

Recommending changes in stock at Federal Reserve Banks,as set forth in the auxiliary minute book as of this date.

Approved.Recommending approval of the application of Mr. GebrgeI. Cochran to serve at the same time as director of theAnglo-California Trust Co. of ban Francisco and theFirst National Bank of Los Angeles; or as director ofthe Anglo-California Trust Co. of San Francisco and theCitizens Trust & Savings Bank, Los Angeles, Calif.

Approved.

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Dated January 10th, Recommending approval of the application of Mr. WarrenCruikshank to serve at the same time as director ofthe Irving National Bank of New York and as trusteeof the Fulton Trust Co. of New York.

Approved.Dated January 16th, Recommending approval of the application of Mr. B. S.

Walker to serve at the same time as officer and directorof the First National Bank of Breckenridge, Texas, andas director of the American Exchange National Bank ofDallas, Texas, and as director of the First NationalBank of Ft.Worth, Texas.

Approved.

At 4:00 p.m. the meeting adjourned.

Secretary.

App ved :

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