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608 A meeting of the Board of Governors of the Federal Reserve Systet"las held in Washington on Tuesday, April 27, 1937, at 10:45 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Broderick Szymczak McKee Davis Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Paulger, Chief of the Division of Examinations Mr. Dreibelbis, Assistant General Counsel Mr. Wingfield, Assistant General Counsel Mr. Cagle, Assistant Chief of the Division of Examinations Mr. Baumann, Assistant Counsel Mr. McKee referred to the action taken by the Board on April 20, 1937, 4_ 'n authorizing the issuance of general voting permits to TransCorporation and Inter-America Corporation, and stated that a lette r dated April 24, 1937, had been received through the Federal Re- 'Agent at San Francisco from Transamerica Corporation requesting Et Chang0 in, torit and certain understandings in connection with, the standard of agreement required to be executed as a condition precedent to the is silence of general voting permits authorizing the holding company Ettriii etes to vote the stock owned or controlled by them in the Bank Or Arae /lea National Trust and Savings Association, The First National r 1:441k "r°rtland, Portland, Oregon, and the First National Bank in lieno ' Reno, Nevada. After discussion of the request of the holding company affiliates, Mr. McKee moved that a telegram be sent to the Federal Reserve Agent at San Francisco, reading as follows: 609 4/27/37 -2“Re Sonne's letter of April 24, 1937, and inclosures, concerning voting permit applications of Transamerica CorPoration and Inter-America Corporation, San Francisco, Cali°rnia. Board has offered to issue general voting permits aPplicants on same basis on which such permits have been accepted by other holding company affiliates and Board is not , 1 11ling to make changes in the usual agreement in case of Transamerica Corporation and Inter-America Corporation where there are no unusual or special circumstances justifying such changes. In addition, Board cannot undertake in advance to (4).tline all facts which will be necessary at any particular 4ime to satisfy Board that any organization has ceased to be a holding company affiliate within meaning of applicable °visions of law. Vdth reference to effect of paragraph of ae,reements, please advise applicants that such paraaPh is not intended to limit their rights or to Rive e ard any rights which it otherwise would not have. How'1 bver) if applicants should desire that such paragraph (D) be from agreements, Board has no objection to such .saion. Advise applicants that such position of Board reParagraph (D) is in conformity with its nrevious on taken in other cases when requested (see Board's letX-9473-b). Reference last paragraph of Andrews' letter A • APril 24, 1937, advise applicants that until agreements 'reeutermi nated applicants will be bound in accordance with -8”thereof as applied to facts existing from time to v azie. f g Z n Z Carried unanimously. At this point Messrs. PaulFer, Wingfield, Cagle and Baumann lett he roam. Consideration was given to analyses prepared by the Division leaearch and Statistics, in accordance with the action taken by the °II March 30, 1937, of bill H.R. 5010 introduced by Representative l'atla/1 end bill S. 1990 introduced by Senator Thomas. Copies of the 111141-Yse8 had been sent to the members of the Board in connection with their cons ideration of the reply to be made to the letter received from Representative Steagall, Chairman of the Banking and Currency Committee c)r the lioUse of Representatives in regard to bill H.T. 5010. It TES 610 V27/37 agreed that Chairman Eccles should discuss the matter with Representative Steakr,,,, -°°-4-J- in view of the Board's understanding that no major banking legis14ti°11 is to be considered at the present session of Congress. At this point Mr. Dreibelbis left the meeting and consideration was then given to each of the matters hereinafter referred to and the Iletion stated with respect thereto was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal Re serve System held on April 26, 1937, were approved unanimously. Telegram to Mr. Sargent, Secretary of the Federal Reserve Bank Of Sall Francisco, stating that the Board approves the establishment withell"ge by the bank today of the rates of discount and purchase in its existing schedule. Approved unanimously. Letter to Mr. Swanson, Vice President of the Federal Reserve kk or , lAinneapolis, reading as follows: 19, "Receipt is acknowledged of your letter of April 13, tl,°) inclosing documents and correspondence relating to a-e assumption by the 'Montana Bank and Trust Company', aat Falls, Montana, (member) of the deposit liability of lie d 8un River Valley State Bank, Simms, Montana, (nonmember) the acquisition of a corresponding amount of assets. "In view of the relatively small amount of deposits ;!slimed and the fact that the offsetting assets acquired ireisted mainly of cash and readily marketable securities, does not appear that the transaction has resulted in any sue,'4ge in the general character of the business or in the Pa of the corporate powers exercised by the member bAnk, ;37, therefore, it is not regarded as earning within the 1411( 1i113? of general condition of membership numbered one, under th'_- _?h the bank was admitted to the system. It is understood 1)111 the transaction has been approved by the Montana State el41rtment of Banking, and it is assumed that your counsel V27/37 48 satisfied that it has not resulted in any change which will affect the status of the Montana Bank and Trust Company a8 a member of the Federal Reserve System." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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