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1193 A meeting of the Board of Governors of the Federal Reserve Systel 11,5 held in Washington on Thursday, August 26, 1937, at 2:30 p.m. " PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Davis Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Consideration was given to each of the matters hereinafter reteed to and the action stated with respect thereto was taken by the to(ird: The minutes of the meeting of the Board of Governors of the de ral Reserve System held on August 23, 1937, were approved unanitousiy. The minutes of the meetings of the Board of Governors of the 4(1e1111 Reserve System held on August 24 and 25, 1937, were approved 411d the actions recorded therein were ratified unanimously. There was presented a telegram dated August 26, 1937, from 141s• Vi 411den, First Vice President of the Federal Reserve Bank of RichkOlid stating that, for the reasons set forth in the telegram, the e4elltlye committee of the bank, under authority of the board of directo4) had. voted to establish a rate of 1. 1i percent on rediscounts of Paper for member banks and advances to member banks under th"Iclvisions of Sections 13 and 13a of the Federal Reserve Act, ' erre ctil the first business day following that on which approved by /e the to 11rd of Governors, and that no other change was made in the bank's ng schedule of rates of discount and purchase. 8 /26/37 -2-The discount rate of percent fixed by the executive committee of the Federal Reserve Bank of Richmond was approved unanimously, effective August 27, 1937. The establishment by the bank without change of the other rates of discount and purchase in its existing schedule was also approved unanimously. The reasons for approval by the Board of the discount rate of 1Pla at the Richmond bank were the same as stated by the Board in connection with its approval on August 20, 1937, of rate reductions by the Federal Reserve Banks of Atlanta and Chicago. Mr- Szymcznk stated that President Harrison of the Federal Resank of New York had called him on the telephone and had advised that ' at its meeting today, the board of directors of the bank had voted, Itileet to review and determination of the Board of Governors of the Reserve System, to establish a discount rate of 1 percent per 'ur rediscounts of eligible paper for member banks and advances to 14e/fiber banks under the provisions of Sections 13 and 13a of the Fed- Reserve Act, effective August 27, 1937; that, in accordance with theusluil custom, the rates for trade bills and repurchase agreements °I1G"al"nalent securities were reduced to 1%; and that no other changes Were tilade in the bank's existing schedule of rates of discount and DiAl.chese. The discount rate of 1 percent fixed by the board of directors of the Federal Reserve Bank of New York was approved unanimously, effective August 27, 1937. The reduction to 1 percent of the bank's effective rates for trade bills end on Govern- 1195 8 /26/37 4.111 ,••• , ment securities under repurchase agreement, and the establishment without change of the other rates of discount and purchase in the bank's existing schedule, were noted with approval. The Board's approval of the reduction in rates at the Federal Reserve Bank of New York was based upon the view that the reduction was desirable in furthering the System's policy of monetary ease and making Federal reserve bank credit readily available to member banks for the accommodation of comerce, business and agriculture without encouraging member banks to liquidate their portfolios in order to be in a position to meet the needs of present or prospective borrowers. Memorandum dated August 23, 1937, from Mr. Paulger, Chief of the Di . vision of Examinations, recommending, for the reasons stated in the Illemorandum, that the headquarters of Mr. Harold J. Newman, AssisIktit -ederal Reserve Examiner, be changed from Chicago, Illinois, to W4a1,4 D. C., effective as of August 23, 1937. Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of Zlos reading as follows: "Receipt is acknowledged of Mr. McRae's letter of 44g1st 19 1937, requesting a ruling on the question whether clia-up shares of a Massachusetts cooperative bank should .,,E3 considered 'stock' within the meaning of section 3(1) of e.gulation U. He states that his office has expressed en Vlformal opinion that such shares should be considered st°01c', and you are advised that the Board is of the same t Approved unanimously. 1196 -4- Thereupon the meeting adjourned. Assistant Secretary. 11131"clved:
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