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/160 A meeting of the Board of Governors of the Federal Reserve St was held in hashington on Thursday, August 19, 1937, at 11:00 PRESINT: Mr. Mr. Mr. Nil% Ransom, Vice Chairman Szymczak McKee Davis Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Special Assistant to the Chairman Mr. Wyatt, General Counsel Mr. Paulger, Chief of the Division of Examinations Mr. Dreibelbis, Assistant General Counsel Mr. Wingfield, Assistant General Counsel Mr. Leonard, Assistant Chief of the Division of Examinations Mr. Van Fossen, Assistant Chief of the Division of Bank Operations Mr. Blattner, Assistant Director of the Division of Research and Statistics Mr. Chamberlin, Federal Reserve Examiner There was presented a tentative draft of an amendment to Regulat10 Ft Trust Powers of National Banks, to provide for the establishment °Peration of common trust funds. Mr. Ransom stated that he had l'egllested that the amendment be discussed at this meeting with a view to 4tellmining whether it should be sent to the Federal reserve banks EllIcl°ther interested parties for their conments and criticisms. The 1310 11(3sed ftlendment was discussed and certain changes were made therein. Mr. Ransom moved that, after the amendment has been cleared with the Securities and Exchange Commission and the Bureau of Internal Revenue, copies thereof be sent to the Federal reserve banks, the American Bankers Association, the 1161 8/19/37 -2Federal Advisory Council, State bank supervisors, and such other interested parties as he may determine, for their criticisms and suggestions. Carried unanimously. At this point Messrs. Thurston, Wyatt, Pauleer, Dreibelbis, wirier; Leonard, Van Fossen, Blattner and Chamberlin left the meetConsideration was then given to each of the matters hereinafter .4ied to and the action stated with respect thereto was teken by the 80eirci: The minutes of the meeting of the Board of Governors of the Federal Reserve System held on August 17, 1937, were approved unanimously. Telegrams to Mr. Young, President of the Federal Reserve Bank °tile " c3a, Mr. McAdams, Secretary of the Federal Reserve Bank of Kansas Y) -lid Mr. Sargent, Secretary of the Federal Reserve Bank of San CO, stating that the Board approves the establishment without ehat "bY the Boston bank on August 18 and by the Kansas City and San -elsee banks on August 19, 1937, of the rates of discount and purqi , se 4 111 their existing schedules. Approved unanimously. Telegram to Mr. Clyde Austin, c/o Douglas Tobacco Company, ' Georgia, reading as follows: "Board of Governors has appointed you director of 4 ,eLville branch of Federal Reserve Bank of Atlanta for ,:e.Pired portion of term ending December 31, 1938. Please acceptance collect." Approved unanimously. Telegram to Mr. W. E. Ulawen, Williamsport, Tennessee, reading r°1lows: 11_62 8/19/37 "Board of Governors has appointed you director of Nashville branch of Federal Reserve Bank of Atlanta for unexpired Portion of term ending December 31, 1939. Please wire acceptance collect." Approved unanimously. Telegram to Mr. Edward L. Norton, Birmingham, Alabama, reading rcalows: "Board of Governors has appointed you director of BirM?nghem branch of Federal Reserve Bank of Atlanta for unexred portion of term ending December 31, 1937. Please 'lre acceptance collect." Approved unanimously. Letter to Mr. Young, Vice President of the Federal Reserve Bank Of 0114 ' eago, reading as follows: "This refers to your letter of August 3, 1937 with retr?'ard ttheo a possible embezzlement or abstraction occurring at Bank of Sturgeon Bay, Sturgeon Bay, Wisconsin. It is c?ed that since the examiner was unable to furnish auffiyient Proof of the guilt of any of the parties involved, b°4r Counsel is of the opinion that the matter should not r the Ported to the Bureau of Investigation until an audit of ,; books of the bank has been made. You inquire whether this ocedure meets with the Board's approval. 01„ "In view of the circumstances of this case there is no Et;s1Jection to the procedure indicated in your letter. however, renaildit of the books of the bank should be made within a yon-8°nable time and a report thereof should be furnished to ' .,,bank. If such audit discloses an apparent violation or-f st criminal provisions of the banking laws of the United by any person, it is assumed that you will handle the Bo er in accordance with the procedure set forth in the arde s letters of July 8, 1937 and July 16, 1937 (S-12 and mers Approved unanimously. Letter tt °Tial to Mr. Robert A. Patteson, President The Tarrytown Na- ellk and Trust Company, Tarrytown, New York, reading as follows: refers to your letter of August 16, 1937 regardhe Payment of interest by your bank on a savings deposit 1163 8/19/37 -4n. ln the name of Sleepy Hollow Cemetery Association. "The Board of Governors has heretofore ruled that a corporation, association, or other organization engaged in ths sale and maintenance of cemetery lots may be considered a8 an organization operated primarily for religious, philanthropic, charitable, educational, fraternal or other similar Plurposes, within the meaning of the definition in section e) of Regulation Q, and, if such an organization is in 'act not operated for profit, its deposits in a member bank nlaY be classified as savings deposits provided they comply with the other requirements of the regulation. "The Board is now reviewing some of its rulings under the definition of savings deposits but, until such time as 11 decision is reached regarding this matter, it will be oPer for your bank to classify the deposit of the Sleepy ,110W Cemetery Association as a savings deposit provided, course, that the Association is not operated for profit that the deposit otherwise complies with the provisions °I' Regulation Q. "If you should have any further questions regarding ,suis matter or any similar matter, it is suggested that you ' .(3111municate with the Federal Reserve Bank of New York." r° Approved unanimously. Letter to Honorable William 0. Douglas, Acting Chairman of the -es and Exchange Commission, reading as follows: rez, "Following receipt of your letter of August 13th with Q..ard to publication of the statistics gathered by your : c8e8rch Division reflecting the status of restricted margin ; ecounts, I have discussed this matter with members of the hnrd of Governors as well as with Dr. Parry, whose views Previously been communicated to members of your staff. poi. The members of the Board concur fully in the general p„;cY of publishing information which is important to the .6,""-Lic and the disclosure of which is not incompatible with the Public interest. They are not prepared to take the posi' t °n that the publication of these data, collected from niner:e4 member firms, showing the number of restricted and unslistricted accounts, the debit balances, and the equity in Aceh accounts, would be incompatible with the public interest. fie°rdingly, it is felt that the question of whether the cog‘lres are to be made public should be determined by the si:!lission in the light of its experience and of what it con'era most advisable. "In the event that the Board should consider it desirable at th 8aMe future date to gather similar data, the matter can c4 be taken up again with the Commission. 1164 8/19/37 -5"I want to express to you our appreciation of your letter and of the cooperation which it evidences between the Commission and the Board." Approved, Mr. McKee votinc! "no". Letter dated August 18, 1937, to Mr. Schaller, President of the l'eciel'al Reserve Bank of Chicago, reading as follows: "Referring further to your letters of July 6 and July 9 With respect to the handling of currency for member banks -in the cities of Chicago and Detroit, and to the Board's reply thereto dated July 30, with which was inclosed a copy of its letter to Mr. Fleming, there is inclosed a copy of 4 letter from Mr. Fleming dated August 11, to which are attached copies of letters written to Mr. Fleming by Mr. and Mr. Sinclair, the other members of the Presidents' ' hlerence Committee on Free Services. "The members of the Committee apparently feel that there has not been sufficient time for the Reserve banks to ascer4 tain Just what can be accomplished through interviews with member banks toward reducing the expense of handling currency vi i' ll rehoY, and they are of the opinion that it would be adsnble to delay writing the Presidents on this subject until the time of the survey of the currency operations of the "rel Reserve banks to be made during the early part of next year. Confer wh "It is assumed that the Federal Reserve banks are doing teat they can to carry out the recommendations of the Commiton dent, Free Services which have been approved by the PresiConference and it is hoped that definite information With co respect to the results which have been or are to be acPliehed will be available early next year." Approved unanimously. Thereupon the meeting adjourned. ice Chairman.
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