The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1053 A. meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Monday, August 28, 1939, at 3:55 P. x. PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymezak Davis Draper Mr. Morrill, Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Wyatt, General Counsel Mr. Wyatt said that Judge Townsend, Acting Assistant Solicitor Gen " .41 at the Department of Justice, bad called on the telephone this Ilfte11100/1 and said that the President had asked the Attorney General tor e list of things that each Government department or agency could do i, " the event of war to protect our neutrality and the public inte„ re . 'b. Mr. Townsend wondered, Mr. Wyatt said, whether the Board e°111(1 give him a statement covering the things that the Board of Govl'ils3r8 could do. Mr. Wyatt stated that he asked Mr. Townsend whether 4 vien+ everything ,that could be done under any imaginable circumctatr, -'s, and that Mr. Townsend replied that he understood that some c.(41rerences had been held, that the Board already had a plan worked °1xt, -41d that he would like very much to have a copy of it as soon as Doeqble. Mr. Wyatt stated further that he inquired whether the Attorney 404erca was sending out letters asking for this information, to which Mr, T "illsend replied that there was not time enough for that and that 1_054 8/28/39 -2- the i nformation should be sent directly to the Attorney General, end that thereupon he (Mr. Wyatt) advised Mr. Townsend that it would be ilaceesary to submit his request to the Board and that he would be advise u when that had been done. Mr. Townsend asked, Mr. Wyatt said, that his secretary be called on the telephone when the matter had been talcen 11P with the Board. A discussion ensued during which it appeared that those preset were not aware of any memorandum of the kind requested by Mr. Tc)wIlsend, Reference was made to the various conferences in the past 1/1 Mr. Goldenweiser, Director of the Division of Research and Statistics of the Board of Governors, participated and Mr. Ransom called Mr. Thomas, Assistant Director of the Division of Research 4hd St atistics, on the telephone who stated that he knew of no memol'"111L of this character, and that he had a file which contained 14tIlells notes on the general subject but nothing in the nature of a 17t1Eld. or comprehensive memorandum. It was agreed that Mr. Wyatt should be asked to draft, in collaboration with Messrs. Thames and Morrill, a memorandum with respect to the contents of which Messrs. Thurston, Parry and Hammond might be consulted, and that the memorandum should be submitted to the Board for consideration tomorrow morning. References were made during the course of the discussion to various points which might be covered in the memorandum, each as the powers which the Federal Open Market Committee had granted to its executive committee and in turn the powers which the executive 1055 8/28/39 committee had granted to the Federal Reserve Bank of New York, the power of the Board to regulate margin requirements under Regulations T and U, the power to Change the discount rates at Federal Reserve banks, and the statement which had been prepared with respect to loans by the Federal Reserve banks to nonmember banks on Government obligations at par. While these specific matters were mentioned it was understood that the draft of memorandum would cover all of the powers that it was thought desirable to mention in a brief memorandum. Thereupon the meeting adjourned. v d: Vice Chairmen.
@FedFRASER