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1203 A meeting of the Board of Governors of the Federal Reserve SYstera was held in Washington on Monday, August 30, 1937, at 2:30 P. ID, PRESENT: Mr. Ransom, Vice Chairman Mr. Szymezek Mr. 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 B3E1rd: There was presented a telegram received this morning from Presicle4t IlleKinney of the Federal Reserve Bank of Dallas stating that the of directors of the bank, at its meeting today, voted to estab114 4 discount rate of 1Ji- percent per annum on rediscounts of eligible 1411)er for member banks and advances to member banks under the provisions or s ''ion 13 and 13a of the Federal Reserve Act and a rate of 2 percerit (14 advances to member banks under the provisions of Section 10(b) °t the Federal Reserve Act, effective on and after August 31, 1937. 11111 zlxbsequent telephone conversation with Mr. Bethea, President leiCillheY had advised that the board of directors had established with°It change the other rates of discount and purchase in the bank's exlatillE schedule. Aresi Mr. Ransom stated that, following receipt of the telegram from dent McKinney, h (Mr. Ransom) had called Mr. Broderick on the teie Phone at Saranac Lake, New York, regarding the action taken by the 1204 8/30/37 -2- 41a118 hank, and that Mr. Broderick had stated that he was familiar "1 the circumstances surrounding the actions of the Federal reserve 11816C8 which had reduced their discount rates and with the reasons 8t"ed by the Board on August 20 in connection with its approval of lbed4ctions in rtes at the Federal Reserve Banks of Atlanta and Chicago €t" that he wished to be recorded in the minutes of this meeting as €1131:11'°17111E, for the same reasons, the reduced rates fixed by the board Or di rectors of the Dallas bank. Mr. Ransom also presented a telegram ill "received from Mr. Broderick stating that he approved the reduced Iltes fixed by the directors of the Dallas bank. The discount rate of 1 percent and the rate of 2 percent on advances under Section 10(b) of the Federal Reserve Act, established by the board of directors of the Federal Reserve Bank of Dallas were approved unanimously, effective August 31, 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 reduced rates 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. Letter dated August 28, 1937, to Mr. Preston, First Vice Presiet c)f the Federal Reserve Bank of Chicago, statint7 that the Board apD1.0ire the changes in the personnel classification plan of the bank, as 4Nesf-.. -"u in his letter of August 20, 1937, to provide for increases 111 the waximum salaries for the positions of Purchasing Agent in the 1205 e/30137 EcilliPment and Supplies Division, Chief of the Protection Division and Nfroll Clerk in the Disbursing Depar went. Approved unanimously. Letter dated August 28, 1937, to Mr. Ben Kastein, Cashier, The N"icnal Bank of Waupun, taupun, Wisconsin, reading as follows: "This refers to your letter of August 18, 1937, relattg to your bank's request for a certificate certifying that it is no longer authorized to exercise trust powers. "The reports of examination to which you refer do not contain sufficient information to satisfy the requirements Of section 11(k) of the Federal Reserve Act and section 16 of the Board's Regulation F relating to the issuance of such certificates. As pointed out in the Board's letter of June 1°1 1937, Regulation F provides that such information shall be developed by a national bank examiner at the tire of the next regular examination of the bank following the receipt the request for the certificate. This procedure is being followed in the case of your bank. "While the regulation provides that in exceptional ceees the Board may make, or may request the Comptroller of the Currency to make, a special examination to develop the required information, you do not request that a special ex?lin-nation of your bank be made and it is not apparent from he information at hand that there are such exceptional cir!umstances as would warrant a departure from the usual proceuUre or would justify your bank in incurring the additional eXPense of a special examination. In this connection, it is noted that three months have now elapsed since the last regular "amination of your bank. "The Federal Reserve Bank of Chicago has been advised with respect to your bank's desire to surrender its trust P°wers and it is suggested that any further correspondence c°ncerning the matter be directed to that institution." Approved unanimously. Memorandum dated August 27, 1937, from Mr. Foulk, Fiscal Agent, 111aellding that an amount of 10.00 be added to the item of printing fled in the budget for that office for 1937 in order that a new 1g06 8/30/37 -4f checks may be obtained. Approved unanimously. There was submitted a recommendation, which had been approved 1"he Personnel Committee, that the Board authorize the purchase of lamps, carbon brushes and lubricating oils, as listed in purchllse orders Nos. 1995, 1996, 1997 and 2017, at a total cost of $444.41. Approved unanimously. Thereupon the meeting adjourned. Assistant Secretary. rthAtil440,../441 Vi Vice ..hairman.
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