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574 A, meeting of the Board of Governors of the Federal Reserve SysWas held in Washington on Monday, April 19, 1937, at 10:30 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Broderick Szymczak McKee Davis Mr. Mr. MY. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Considerat ion was given to each of the matters hereinafter to and the action stated with respect thereto was taken by the The minutes of the meeting of the Board of Governors of the Federal Reserve System held on April 16, 1937, were approved unanimously. e1 The minutes of the meeting of the Board of Governors of the Fed- Reserve System held on April 17, 1937, were approved and the actions ecorded therein were ratified unanimously. Letter to Mr. Drinnen, First Vice President of the Federal Reserve Bank of Philadelphia, reading as follows: "Referring to your letter of April 14, the Board of Ffrs of the Federal Reserve System notes without obthe action of the Executive Committee of your bank d granting Miss Sara G. Peoples a vacation of six weeks ' ,r13 1 -E the samher of 1937, three weeks of which is to be with ' 4'1 Pay and three weeks without pay. "It is understoo d that the regular vacation with pay tO Ut1,4 -41-Leil Miss Peoples is entitled is two weeks." Approved unanimously. Letter to Mr. Fleming, President of the Federal Reserve Bank of 575 4/19/37 -2- Cleveland, reading as follows: "In accordance with your request, the Board approves the designation s as assistant examiners for the Federal Reserve Bank of Cleveland of the employees listed in your letter of April 14, 1937. It is understood that the designation of such employees as assistant examiners has been requested in order that they may be available to lend temporary assistance to your regular examining staff, and that they Will not be transferred permanently to the examination department without the Board's approval. Please keep the Board/ s Division of Examinations currently advised of any .d eductions from the list." Approved unanimously. Letter to Mr. Fletcher, Vice President of the Federal Reserve Ba of Cleveland, reading as follows: "In accordance with your recommendation, the Board extends to June 30, 1937, the time within which the 'Monongahela Trust Company', Homestead, Pennsylvania, may accomplish membershio." Approved unanimously. Letter to Mr. Dillistin, Assistant Vice President of the FedReserve Bank of New York, reading as follows: "Your letter of April 6 and the copy inclosed therea letter dated February 18, 1937, from National °14mercial Bank and Trust Company, Albany, New York, toWith a draft of proposed reply thereto, relating 2_ the absorption of exchange charges, was brought to the of the members of the Board and discussed at a recent :ecent meeting. I was asked to advise you that the Board cP"eee with you that replies to inquiries of this character °m member banks should in general be limited to a statethnt of the position indicated in the third paragraph of ine,Ird's letter X-9846, of March 18, 1937. It suggests ch connection that your proposed letter might well be asel_!ged so as to include only the first three paragraphs Irafted and the last paragraph slightly revised as fol.Lows: 1:11 of Z 576 4/19/37 -3"'Until the Board has made determinations which are of general application with regard to questions Of this character, it would seem that member banks Should exercise their own judgment as to whether or not, in the circumstances of particular cases, the payment by such bRnks of exchange charges or the absorption of such charges for their depositors should be deemed to be "compensation for the use of funds constituting a deposit" so as to came within the classification of "interest" within the meaning of subsection (a) of Section 2 of Regulation Q as amended effective February 11, 1937, having in mind, of course, that, ae the Board has indicated, the decisions of the member banks are subject to review upon all of the facts 811"n by the records of the bank and the examiners' raPorts.tti Approved unanimously. Thereupon the meeting adjourned. ecretary. 44royed: Chairman.
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