The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1025 A meeting of the Board of Governors of the Federal Reserve Syswas held in V.ashiniton on Friday, July 23, 1937, at 10:30 a. in. PRES.F.ET: Mr. Mr. Mr. Mr. Ransom, Vice Chairman Broderick McKee Davis Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Wyatt, General Counsel Mr. Goldenweiser, Director of the Division of Research and Statistics Mr. Thomas, Assistant Director of the Division of Research and Statistics Mr. Currie, Assistant Director of the Division of Research and Statistics There was presented a revised draft of a statement, prepared by messrs. Goldenweiser, Thurston and Currie pursuant to a request of the toar _ , 0( with respect to major questions involved in bills before C0A e:re "havi ng price stabilization as their objective. The original l'eclilest of the Board on July 13 that such a statement be prepared was WI t4 the VieW that it might be used in replying to the letter received trota s enator Smith under date of July 21, 1937, requesting a report on S '19gn (Thomas bill) and to other similar requests. At the conclusion of a discussion of the draft, it was understood that Mr. Davis, With Messrs. Goldenweiser and Thurston, would prepare a further revision of the statement for discussion by the Board at its next meeting. Thereupon Messrs. Goldenweiser, Thomas and Currie withdrew Meeting and Mr. Dreibelbis, Assistant General Counsel, entered 1026 7/23/37 -2the r,o0m. Reference was made to a memorandum dated July 7, 1937, from Mr. Wyatt General Counsel, submitting the report prepared by Mr. Dreibelbis, AsE3istant General Counsel, on the survey made by him of the legal divi'1.(1111 of the Federal Reserve Bank of Kansas City. The report called at- tetition to the fact that Mr. H. G. Leedy, who is retained as counsel ror the Federal reserve bank is also retained by the Commerce Trust (11413611Y of Kansas City. Pectercti Ur. Ransom suggested that the Board take the position that each reserve bank should have on its staff a full time counsel who woUld ' i ve his entire time to the bank and not represent other interests. Mr. Broderick referred to the action of the Board on January 19, 1937, r eauesting him, in consultation with Messrs. Dreibelbis and Morrili., to see that a survey was made of the legal divisions of the l'espeetive Federal reserve banks with a view to obtaining greater unir°1Xity in the arrangements with counsel at Federal reserve banks and the basis On which they are compensated. He stated that these surveys hd ueert Intide as to six Federal reserve banks and that it appeared that the rernainine six could be covered in a comparatively short time. 41ded that, while he was of the opinion that the 11°111c1 not employ He ederal reserve banks or retain as regular counsel attorneys who are also bY any other bank or by a bank holding company, investment brokerage tt:s8o t ::::: kd er e r concern, he felt that it would be preferable for taking the matter up with the individual Federal re41111e banks until the reports on the surveys which are to be made at 1027 7/23/37 the six remaining Federal reserve banks have been submitted by Mr. Dreibelbis and his (Mr. Broderick's) report on the basis of these surveys could be considered by the Board. Mr. Ransom expressed the opinion that it was desirable to reach 'Et decision on the matter as soon as possible and that if the Board Eled that the existence of dual relationships such as that at Kansas City sh °uld be discontinued, the Federal Reserve Banks should be ad171 ,9ed proMptly of the Board's position in order that counsel who might be affected would have reasonable time in which to make changes in their a rrangements before the end of the year. He also stated that sh°111c1 the matter be considered by the Board during his absence he wished t° be r ecorded as being of the opinion that regular counsel for a Federal reserve bank should under no circumstances be counsel for another bfihic or tor a brokerage concern or any other organization over which the Board of Governors exercises any jurisdiction or has any regulatory EltIthori ty. At the conclusion of the discussion it was agreed to take no action on the matter Pending submission to the Board of the reports of the surveys of the legal divisions Of the six Federal reserve banks which have not yet been made and the consideration of Mr. Broderick's recommendations based thereon. At this point Messrs. Thurston, Wyatt and Dreibelbis left the )4ettri , rid c onsideration was then given to each of the matters hereintItter ret, , 'erred to and the action stated with respect thereto was taken %tie Eioard. 1028 7/23/37 -4The minutes of the meeting of the Board of Governors of the Fed'1-1 Re serve System held on july 22, 1937, were approved unanimously. Telegrams to Mr. Kimball, Secretary of the Federal Reserve Bank NewlOrk, Mr. Austin, Chairman of the Federal Reserve Bank of Philehia, Mr. Taylor, Cashier of the Federal Reserve Bank of Cleveland, 414 Mr. /bung, Secretary of the Federal Reserve Bank of Chicago, stetthat the Board approves the establishment without change by the ile"I'k bank on july 22, 1937, and by the Philadelphia, Cleveland and Chieag° banks today, of the rates of discount and purchase in their °listing schedules. Approved unanimously. Memorandum dated July 20, 1937, from Mr. Goldenweiser, Direc°I' of the Division of Research and Statistics, recommending the ap- P°14 ment on a temporary basis for a period of three months of Mr. 4lek Brandt, tate as a draftsman in the Division, with salary at the $200 per month, effective as of the date upon which he enters 145°14 the pe rformance of his duties. Approved unanimously. ()rand= dated July 21, 1937, from Mr. amead, Chief of the 41181°11 of Bank Operations, recommending the appointment on a temporary b 81a tc)r a period of three months of Mrs. Lorraine M. Rhinehart as a °c11°Mater operator in the Division, with salary at the rate of $120 De/. koiath, e ffective as of the date upon which she enters upon the 151*ortlia.nce of her duties. Approved unanimously. 1029 7/23/37 -5Memorandum dated July 20, 1937, from Mr. Morrill reconmending, thc• approval of the Personnal Committee, the appointment of Robert C, IVithorspoon, Joseph P. Harris, Jr., and George R. Kay as elevator °Pel'4t°1's in the Board's new building, with salary at the rate of"41,200 15 annum, " effective as Soon as their services may be required, after hay,. 'flg. Passed satisfactorily the usual physical examination. The memoalso recommended that the Board furnish uniforms for the elevator (111t0 1's which, it was estimated, would cost approximately $22.00 each. Approved unanimously. Telegram to the George A. Fuller Company, New York, New York, l'eciirlE.)c1S follo: "Atttampted to phone your office today after inability , to 10_ 'aze your local Vice President Distler. Have been inLfIrled that there is no intention on your part to work lnters Saturday or Sunday. Our Board believes this is a vie"h of faith on the part of your office and Distler in ipeel7 Of promises made by President Crandall to Chairman yoe-ese Board expects word from you in the morning that u have arranged for painters both Saturday and Sunday." C Approved unanimously. Thereupon the meeting adjourned. (ild1421ii.A.41111q0 : 1 Secretary.
@FedFRASER