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A meeting of the Federal Reserve Board was held in Governor IILElek's office on Monday, April 9, 1934, at 3:30 p. in. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Black, Governor Hamlin Miller Thomas Szymczak O'Connor Governor Black reported that he had just appeared before the con.tA-a on Interstate and Foreign Commerce of the House of Representatives at a hearing on the so-called stock exchange bill and had stated to the Cotanittee the opinion of the members of the Board as expressed "the meeting of the Board on iLpril 6, 1934, that (1) margin requireeta should be imposed in connection with loans on securities by banks aa well as by brokers and dealers, and (2) that brokers and dealers slaw.) be allowed to borrow from nonmember banks which should be required tO lde by such provisions of the law and regulations as are applicable to 'neMber banks with respect to loans on securities. Governor Black also reported that he had talked with Senator G1,483 t°4eLY and that the Senator had informed him that he had submitted to th e Senate Banking and Currency Committee a substitute for the draft Or the Stock exchange bill under consideration by the Committee, and the substitute bill would vest the supervisory authority given by the bi 11 in a new commission of three members appointed by the President v Elm . ' with the advice and consent of the Senate, and would not give the Reserve Board any control over margin requirements. 814ek Governor stated that he had advised Senator Glass that he felt the Board have authority to impose, if, as and when needed, margin requirements 4/9/34 -2- oil member banks in connection with loans on securities, and that Senator G148e had practically agreed with this suggestion. After a full discussion, it was unanimously voted as the opinion of the members present that it would be proper to draft, for the use of Senator Glass, an amendment to the substitute bill which would empower the Federal Reserve Board, when in its opinion such action is necessary, to impose margin requirements in connection with loans on securities by member banks, and that it should be stated to Senator Glass that, in the opinion of the Board, such power should be vested in the Board. Thereupon the meeting adjourned. Governor.
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