Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, July 17, 1939, Volume 26, Part 3

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A meeting of the Board of Governors of the Federal Reserve
System was held in Washington on Monday, Xuly 17, 1939, at 12:15 p.m.
PRESENT:

Mr. Eccles, Chainnan
Mr. Szymczak
Mr. McKee
Mr. Morrill, Secretary
Mr. Carpenter, Assistant Secretary
Mr. Clayton, Assistant to the Chairman

The action stated with respect to each of the matters hereinafter referred to was taken by the Board:
Telegrams dated July 14, 1939, to Mr. Kimball, Secretary of
the Federal
Reserve Bank of New York, Aft.. Leach, President of the
Federal Reserve Bank of Richmond, Mr. McLarin, Vice President of the
Federal Reserve BAnk of Atlanta, Messrs. Dillard, Stewart and Powell,
Secretaries of the Federal Reserve Banks of Chicago, St. Louis and
MinneaPOlis
Reserve Bank

respectively, and Mr. Gilbert, President of the Federal
f Dallas, stating that the Board approves the estab-

lishment without change by the Federal Reserve Banks of New York,
Richmond, Chicago, St. Louis, Minneapolis and Dallas on July 13, and
by the Federal Reserve Bank of Atlanta on July 14, 1939, of the rates
Of

discount and purchase in their existing schedules.
Approved unanimously.
Memorandum dated July 15, 1939, from Mr. Goldenweiser, Di-

rector of the Division of Research and Statistics, submitting the
resignation of William A. Salant as an economic assistant in the
Division, and recommending that the resignation be accepted effective




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at the end of the annual leave to which Mr. Salant is entitled.
The resignation was accepted to became effective at the close of business
on August 29, 1939.
Letter to NEI% John Edgar Hoover, Director, Federal Bureau of
Investigation, Washington, D. C., reading as follows:
"Reference is made to your letter of May 25, 1939,
With respect to the alleged use of S4,000,000 in reserves
for purposes other than the payment of dividends by the
Manufacturers and Traders Trust Company, Buffalo, New York,
and to the informal conference between Mr. Pennington, of
your Bureau, and Mr. Cherry, of the Board's staff, at which
time Ma.. Pennington examined the reports submitted to the
Board by the Federal Reserve Bank of New York regarding
this matter.
"Pursuant to the understanding reached at the conference, there are enclosed a copy of a letter dated June
19, 1939, from Vice President Gidney of the Federal Reserve Bank of New York addressed to the Board, a copy of
a letter dated June 21, 1939, from Managing Director O'Hara
of the Buffalo Branch of the Federal Reserve Bank of New
York addressed to Mr. R. M. Gidney, Vice President of the
Federal Reserve Bank of New York, and a copy of the annual
report of the Manufacturers and Traders Trust Company for
the year ending December 31, 1938."
Approved unanimously.

Thereupon the meeting adjourned.

_20—
)J24)

APProved:




Chairman.

tr)(nALA2L1(
Secretary.