366

Upon call of the Governor, a meeting of the Federal Reserve Board

was held in the office of the Board on Wednesday, April 21, 1926 at

a.me

PRESENT: Governor Crissinger::r. PlattMr. HamlinMr. Millerr. JamesMr. Noe11, Asst. Secretary.Mr. McClelland, Asst. Secretary

The reading of the minutes of the meetings of the Federal Reserve

ea,rci. held on April 15th and 19th was dispensed with.

The Governor stated that the meeting had been called primarily to

e'llslcier the matter laid on the table at the meeting on April 19th, namely,

he resignation of Mr. Robert B. Warren from the Board's Division of Research

44(1. Statistics; the Board having deferred action pending receipt of inform-

ti°11 as to the plans of the Federal Reserve Bank of New York by which Mr.

Viarren has been offered a position. The Governor presented the following

letter from Deputy Governor Harrison of the New York bank:

"Our Directors after considering the organization of thePora...4

‘jj'e;f1 Department of this Bank in its relation to the technical

7ture and, increasing volume of its operations have approved the1,ec0narnendation of the officers to employ another man for work inwie Department.

At the present time the Federal Reserve Bank of New York444nales eighteen foreign accounts of varying activity and im-Poortance. The aggregate of these accounts, in most of which the,ther bank.s participate, is approximately ;200,000,000, and. re-atTxlsibility for its successful conduct is one which demands the

aition of some man with knowledge of central bank procedure and.'13e rat ions , as well as general knowledge of international exchange.

The Department now has a manager, Mr. Crane, a chief, Mr.

bill4.Sew-

and eleven operating clerks. It handles all investments ofs and, maturities for foreign accounts, now aggregating about

40000,000; keeps full and complete records of purchases, sales'44(1 Llaturities under advice to all other participating Federal

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

3674/21/25 -2-

"Reserve Banks; handles all collections for foreign accounts,

usually aggregating three hundred items by each foreign mail;

nandles deposits and payments for foreign correspondents; cashes

onecks drawn upon foreign accounts; earmarks gold which nma a-

mounts to ,;50,000,000; handles all purchases of imported goldaS well as transactions involving payments of gold for export;

makes shipments of currency to foreign correspondents; makesloans on gold for foreign accounts; gdts reports each day anddetermines for and certifies to the Treasury Department theaverage exchange rates of forty different currencies for theguidance of the Treasury Department under the terms of the

Tariff Act, and generally handles all the foreign operationsOf the bank.

The number of our foreign accounts, the increase in the

volume of their transactions and their importance to the systemas a whole emphasize the responsibility of the New York Bank,Which under the terms of Section 14 is now acting in these mat-

ters, not only for its man account but also as agent for theOther Federal Reserve Banks.

In the circumstances, our Directors have authorized the

officers, after consultation with the Governor of the Federal

Reserve Board, to offer Mr. Warren, a member of the DivisionOf Research and Statistics of the Federal Reserve Board, a

Position in the Department at a salary of .6,000 per annum,aad submit this recommendation to the Federal Reserve Boardfor its approval, believing not only that Mr. Warren has allOf the ability and qualifications essential for the position,uat also that his service to the system may be only the greater

because of the opportunity which would be afforded him to obtaina much closer contact with the actual operations of the system's

foreign business. It would be our thought, if the Federal Reserve

Board approves the salary recommended, that 1.1r. Warren would aid

generally in the operations of the department and perform some-what the same work that he is now doing, since foreign reportson international and monetary matters as well as the reports

arid statements of the central banks with whom we are doing

business, have such a direct bearing upon the foreign work*doh the New York bank is now undertaking on behalf of thesystem as a whole.

This letter is merely to confirm what has already been

reported to the Governor of the Federal Reserve 3oard, and as

already stated to him, the officers and directors of the NewYork Bark would. appreciate an early action by the Federal Res-

erve Board, if only because Governor Strong would like to have

an opportunity to taace Mr. Warren abroad with him when he sailsO n Saturday, April 24th."

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

3681/21/26

_3-

During the discussion which followed, Mr. Plattstated that he had been under the impression fromthe presentation of the matter at the last meeting,that the New York :Reserve Bank was setting up a newdepartment under the Federal Reserve Agent to doPractically the same work now done by Mr. Warren forthe Board's Division of Research and Statistics.Mr. Harrison's letter, he stated, shows that this isnot the case and that Mr. Warren is wanted by theNew York Reserve Bank in their Division of ForeignBanks which has reached very large proportions.

He, therefore, moved that the amployment ofMr. Warren by the New York Reserve bank at a salaryOf ,6,000 be approved.

Mr. Platt's motion being put by the Chairwas carried, the members voting as follows:

Governor Crissinger, "aye"Mr. Platt, "we"Mr. Hamlin, "aye"Mr. Miller, "no"Mr. James, "no"

Mr. Hamlin then moved that the Board accept Mr.Warren's resignation from the Division of Research andStatistics, effective at close of business Li8r 5th.

Unanimously carried.

cl Governor then presented letter dated April 20th from Mr. Alexander• TN._-,-017bridge, accepting the Board's proposal, made by the Governor under

kthoritY granted at the meeting on April 6th, for a fee of y10 ,000 to cover

448"vices as consulting architect in ccmnection with the buildings to

13 erect"- er Congressional authority to house the Detroit Branch of

Reserve Bank of Chicago and the Baltimore Branch of the Federal

c4erPlre Bank of Richmond; Mr. Trowbridge suggesting that the fee be divided440

tv10 parts - 41,000 for Detroit and „6,0 0 for Baltimore, and that when

411brait5 his reports he immediately be paid .)3,000 on the Detroit fee and

On the Baltimore fee, leaving a balance of .)1,000 each to be paid

ir

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

3694/21/26

the buildings are completed.

Upon motion, by Mr. James, it was voted to employMr. Trowbridge in connection with the building pro-jects named, and to approve the plan of payment sug-gested by him.

Letter dated April 17th from the Under Secretary of the Treasury, sub-

illittilag copy of a proposed amendment to the Treasury's Currency Instructions,

desiellating the Federal deserve Banks and their Branches as agents for the

11"LetIPtion of United States Motes, Gold Certificates and Silver Certificates

1lAtit for further circulation; the Under Secretary inquiring whether theBOarci

any objections to the new procedure which is almost exclusively

41a '11'1°001-t1t ing change at the Treasury and imposes upon the Federal deserveBazits

ana Branches no additional duties or changes from present proceduree%ce

115 daily telegraphic reports to the Treasurer and the preparation ofEtppro

Pilate documents in support of redemption entries in the transaript

°t the rl- ,reasurer, s account

The Secretary reported he was advised by theSecretary of the Governors' Conference that theproposed change had been discussed at the lastConference and that the Governors were in favorof it.

Mr. James then moved that the Board inter-pose no objection.

Carried.

Liemoran.dum from Counsel

*44ted-by the Board on April

lerk in his office at a

Pile 0

dated April 20th advising that under authority

6th he has appointed Mr. 'Alson Lee Hooff as

salary of .,1200 per annum, effective April 20th.

Noted.

1.t000rt of Committee on Salaries and 2,xpenditures on letter dated

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

4/21/26-5_

370

413111 17th from the Chairman of the Federal Reserve Bank of St. Louis, re-

questing approval of the action of the Executive Committee of that bank in

grall:tillg to Miss Grace Toler, of the Transit Department, leave of absence,

/71t4 full Pay, on account of illness, for a period of thirty days from

APril 13th; the Committee recommending approval.

Approved.

Letter dated April 15th from the Governor of the Federal Reserve

441k of San Francisco, submitting statements in the amount of ,?2,314.78,

eillIratted by Messrs. Baker, Hostetler and Sidlo covering legal services

retki-'gred by :Ix. Baker in connection with the Idaho-Grimm Alfalfa Seed

Growers Association case; the Governor Stating that the bills have been

14)441 bY the Federal Reserve Bank of San Francisco and requesting that

—u-Lu as the case has been considered a System matter the Joard arrange

rsitibursement to that bank of the share due by the other Federal Reserve

bkiksa

Upon motion, the Secretary was instructedto arrange for pro-rating the above expense

in the usual manner.

Il TS OF STANDING COMMITTEES:

3)4tecl, April 20th, Recommending action on applications for fiduciary Paversas set forth in the Auxiliary Minute Book of this date.

3)41tea, Approved.

April 20th, Recommending action on application for fiduciary rovers

as set forth in the Auxiliary Minute Book of this date.

Or ered held.

4DDrovea: nF adjou A4 10:30 a.

41141'

APr

Governor.Asst. Secretary.

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