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

Federal Reserve Board on Tuesday, June 17, 1924, at 11:20 a.m.

PRSErT: Governor CrissingerMr. PlattMr. HamlinMr. MillerMr. CunninghamMr. JamesMr. Eddy, Secretary

PRESENT ALSO: Dr. Jtewart, Chief of the Board'sDivision of Research and Statistics.

The minutes of the meeting of. the Federal Reserve Board held on Jane

16th were read and approved.

Menorandum dated June 14th addressed to the Secretary by the Chief of

the Board's Telegraph Office, recommending the appointment of Ur. J. E. Mahoney

as telegraph operator at a 6a1ary of $165 per month, effective June 16, 1924.

Approved.

Letter dated June 9th from the Federal Reserve Agent at San Francisco,

enclosing copy of a communication addressed to him by the President of the

Pacific Southwest Trust and SLATings Bank withdrawing that bank's applications

for permission to acquire the First National Bank of Dinuba and the Central

Savings Bank of Calexico and to establish branches in their premises.

Noted.

Memorandum dated June 14th addressed to the 3ecretary of the Board

bY the Chief Clerk with regard to the bond of the Fiscal Agent of the Board.

Referred to the Law Committee.

The Governor then presented telegram dated June 14th from the Chairman

Of the Federal Reserve Bank of Atlanta, advising that the directors of that

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on that day voted to reduce the redi3count rate to 4% effective if and

when approved by the Board; together with telegrams subsequently exchanged by

the Governor of the Board with the Chairman of the Atlanta bank regarding the

reasons for the action of the directors in voting to reduce the rate.

After discussion, Mr. Hamlin moved approval of theaction of the directors of the Atlanta bank in reducing

the rate to the induction to be effective June 18,1924.

Carried, Mr. Platt voting "no".

Telegram dated June 16th from the Secretary of the Open Market Investment

Oftimittee quoting a telegram addressed to the Governor of each Federal Reserve

Bank with regard to money rates and stating that the directors of the Federal

Ileserve Bank of New York at their next meeting will probably authorize a minimum

Plrehase rate of 2%.

Noted.

Letter dated June 14th from the Federal Reserve Agent at Dallas, with re-

rd to the rediscounts of the bank and the character of paper pledged as security

tOr Federal Reserve notes.

Noted and ordered circulated.

Letter dated June 14th from the Chairman of the Federal Reserve Bank of

Dallas (1) requesting approval of the action of the directors of that bank in

41400inting Harold R. DeMoss as Assistant Cashier of the Houston Branch at a

"47 of cli3,000 per annum; (2) requesting approval of the designation as Examiner,

Without change in salary, of Mr. W. C. Franklin to be transferred to the head

°trice from the El Paso branch where he has been in charge of insolvent bank

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work; and (3) advising that the directors of tho bank have authorized the

4Zocutive Committee at their discretion to reduce the discount rate of the

lank to 4A and dismissing certain factors which have been considered in con

nection with a possible reduction.

Upon notion by Mr. Miller, it was voted that inthe Board's reply to Mr. Talley's letter it Should be

stated that it is the sense of the Board that the directors

of the Dallas bank should use their best judgment as to a

reduction in the discount rate, based on conditions intheir territory without reference to the situation inother districts.

The Governor then announced that beginning July 1, 1924, the membership

(If the various Standing Committees of the Board will be as follows, with member-

alliP on District Committees unchanged:

IIXSOCUNT .AND OPEN MAREET POLICY:Mr. MillerMr. PlattMr. Cunningham

Mr. Stewart, Secretary.

INTEAEATIOEAL FINANCE:Mr. MillerMr. Hamlin

Mr. Stewart, Secretary.

AGRICULTURAL CREDITS:Mr. CunninghamMr. JamesMr. Dawes

Mr. Goldenweiser, Secretary.

LAW AND LEGISLATION:Mr. HamlinMr. Platt

SALARIES. EXP.MITURES AND EFFICIENCY:Mr. JanosMr. Cunningham

Mr. Smead, Secretary

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NOMINATIONS:Mr. PlattMr. Miller

FEDERAL RESERVE BRANCIES:

Mr, Hamlin

Mr. Cunningham

CUBA: Mr. HamlinMr. James

EXAMINTIONS:Mr. PlattMr. James

Mr, Herson, Secretary

CLEARINGS:

Mr. HamlinUr. Dawes

CURRENCY: Mr. DawesMr. James

RUSEARCH AND STATISTICS:

Mr. MillerMr. Cunningham

Mr. Stewart, Secretary

After discussion, Mr. Platt moved that the Board's present

Committee on Economy and Efficiency be dissolved and that its

duties be taken over by th4 Committee on Salaries and Expendi-

tures, said Committee to be designated as the Committee on

Salaries, Expenditures and Efficiency of the Federal Reserve

banks and Federal Reserve Board.

Mr. Platt's motion being put by the chair was

carried.

Ur. Hamlin then moved that the By-laws of the Board be referred to

the

Executive Committee for such amendment as may be necessary on Jul

y 1st.

Carried.

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Report of Law Committee on letter dated June 11th from the Federal

Reserve Agent at Atlanta, with regard to the application for surrender of

twenty-three shares of stock held by the Canon Bank, Canon, Georgia; the

Committee submitting a memorandum from Counsel, datedJune 16th,stating that

he sees no legal objection to the Board's approval of the surrender and can-

cellation of the Federal Reserve bank stock allotted to the Canon Bank.

Upon motion, the application for surrender of stock

was approved.

The Board then discussed at some length the work and personnel of the

Board's Division of Research and Statistics.

Mr. Miller moved that the salary of W. W. Stewart,

Director of the Division,be increased from 0,000 to

410,0J0 per annum, effective July 1, 1924.

Carried.

The Governor then presented a telegram dated June 17th from the Avernor

Of the Federal Reserve Bank of Atlanta, requesting approval of a minixmim pur-

chase rate on bankers acceptances of all maturities of 2%.

After discussion, during which it was brought out

that the lowest minimum rate now in effect is 4;,

Mr. Hamlin moved that the Board approve a 2iLA minimum

purchase rate for the Atlanta bank.

Carried.

Mx. James then referred to the letter dated Jane 14th from the Chairman

Of the Federal Reserve Bank of Dallas, above referred to, and moved that the

Board approve a salary of c3,000 per annum for Harold R. DeMoss, as Assistant

Cashier of the Houston Branch, and. that it approve also the designation of Mr.

W. C. Franklin as Examiner, without change in salary.

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Approved:

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Mr. James' motion being put by the chair wascarried.

The meeting adjourned at 12:],g ,.m.

14%ok

Secretary

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