Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, January 23, 1936, Volume 23, Part 1

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188
A meeting of the Board of Governors of the Federal Reserve System
was held in Tashington on Thursday, January 23, 1936, at 11:30 a. m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Thomas, Vice Chairman
Hamlin
Miller
Szymczak

Mr. Morrill, Secretary
Mr. Bethea, Assistant Secretary
Mr. Carpenter, Assistant Secretary
Consideration was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the
Board:
Letters to Mr. Curtiss, Chairman of the Federal Reserve Bank of
Boston, and Mr. Powell, Secretary of the Federal Reserve Bank of
Minneapolis, stating that the Board approves the establishment without
Change by the Boston bank on January 22, and by the Minneapolis bank on
January 21, 1936, of the rates of discount and purchase in their existing
schedules.
Approved unanimously.
Memorandum dated January 17, 1936, from Mr. James submitting a
letter dated January 10 from Mr. Curtiss, Chairman of the Federal Reserve
Bank of Boston, which requested approval of changes in the personnel
Classification plan of the bank to provide for the new position of
manager" in the Securities Exchange Division, and for an increase in
the salary range for the appraised position of "manager" in the
Statistical (Industrial) Department, effective January 1, 1936.

The

memorandum stated that the proposed changes had been reviewed, and recom-




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mended that they be approved.
Approved unanimously.
Letter to "The Overland National Bank of Grand Island", Grand
Island, Nebraska, reading as follows:
"The Board of Governors of the Federal Reserve System
has given consideration to your application for permission
to exercise fiduciary powers, and grants you authority to
act, when not in contravention of State or local law, as
trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, committee
of estates of lunatics, or in any other fiduciary capacity
in which State banks, trust companies or other corporations
which come into competition with national banks are permitted to act under the laws of the State of Nebraska, the
exercise of all such rights to be subject to the provisions
of the Federal Reserve Act and the regulations of the Board
of Governors of the Federal Reserve System.
"This letter will be your authority to exercise the
fiduciary powers granted by the Board pending the preparation of a formal certificate covering such authorization,
Which will be forwarded to you in due course."
Approved unanimously.
Letter to Governor McKinney of the Federal Reserve Bank of Dallas,
reading as follows:
"This refers to your letter of November 19, 1935, with
inclosures, regarding the authority of your bank to grant
the application of the Blue Ridge Federal Credit Union,
Blue Ridge, Texas, to be placed on the par list.
"It is noted that counsel for your bank has expressed
the opinion that a Federal credit union cannot properly be
Classified as a bank and that, inasmuch as the Board's
Regulation J authorizes Federal Reserve banks to accept for
collection only such checks as are drawn on banks, a Federal Reserve bank is not authorized to collect checks drawn
on a Federal credit union. In connection with this matter,
the Board requested the views of the Governor of the Farm
Credit Administration with respect to the authority of Federal credit unions to receive deposits subject to check;
and there is inclosed herewith a copy of a letter, dated




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"January 14, 1936, received by the Board from the Governor
of the Farm Credit Administration in which the opinion is
expressed that Federal credit unions cannot properly be
Classified as banks and are not authorized to receive
deposits subject to check.
"In view of the opinion of counsel for your bank and
the opinion of the Governor of the Farm Credit Administration with respect to this matter, the Board feels that a
Federal credit union is not an institution of a kind rhich
should be placed upon the par list and, accordingly, that
the application of the Blue Ridge Federal Credit Union
should not be granted."
Approved unanimously.

Thereupon the meeting adjourned.

Approved: