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1030
meeting of the Board of Governors of the Federal Reserve Systal"'es held in Washington on Monday, July 26, 1937, at 2:30 p.
PRESENT:
Mr.
Mr.
Mr.
Kr.
Mr.
Eccles, Chairman
Ransom, Vice Chairman
Broderick
McKee
Davis
Kr. 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
Reference was made to the revised statement prepared by "Messrs.
Go
ldenweiser and Thurston pursuant to the request made at the
rtieting of the
Board on Tilly 23, 1937, on the subject, "Objectives
"°11etarY Policy", for possible use in replying to the request re4 Under date of July 2 from Senator Smith for a report on bill
SI 199° (Thomas
bill).
The statement was discussed paragraph by para-
1/11 elad a
number of changes were suggested.
At the conclusion of the discussion
Mr. Goldenweiser was requested to revise
the statement to incorporate the suggested
Changes and to submit copies of the revision to members of the Board for further
consideration prior to approval by the
Board.
At this point Messrs. Thurston, Wyatt, Goldenweiser, Thomas and
left the
meeting and consideration was then given to each of the
1031
7/26/37
-2Zettera
hereinafter referred to and the action stated with respect
thereto was
taken by the Board:
The minutes of the meeting of the Board of Governors of the
FAA
Q.L
Reserve System held on July 23, 1937, were approved unanimously.
Telegrams to Mr. Yaeger, Vice President of the Federal Reserve
Batik
'
c/ Minneapolis and Mr. Gilbert, First Vice President of the Federal R
"erve Bank of Dallas, stating that the Board approves the establishrae
ut without change by the banks today of the rates of discount
Purchase
in their existing schedules.
Approved unanimously.
Telegram to Mr. Carl Newman, President, Calavo Association,
Sarite' Ana' California, reading as follows:
"Board of Governors has appointed you director of
n,-."geles Branch of Federal Reserve Bank of San Francisco
ir3;' unexpired portion of term ending Decamber 31, 1937.
'
ease wire acceptance collect."
Approved unanimously.
Letter
Cleve).
to Mr. Taylor, Cashier of the Federal Reserve Bank of
44d, reading as follows:
tic "The Board approves the changes in the personnel classi"lon plan of the Federal Reserve Beni:
, of Cleveland reT-lestAA
In your letter of July 21, 1937, as indicated by
- revised Form A pages inclosed therewith.
tniti.:
It is noted, however, that on all of the pages subwith your letter of July 21, 1937, the date these
i qta
, were submitted in their original form, June 14, 1937,
1 es the date of the bank's letter submitting the
th;-!' It is also noted that on a number of these pages
J.11 uate such
pages were approved in their original form,
or4e 28, 1937, is shown as the date of the Board's letter
"Proval. In view of the provision in paragraph 3 of
1_032
7/26/37
-3;the Board's Instructions Relating to the Operation of the
Personnel Plans that 'any change in the Personnel clessifi,rtion plan, whether in name of department, title of posi10n, description of work, or in maximum annual salary,
shcrald receive the approval of the Board before it becomes
:
4.
f,!ctive,' and since all of the pages submitted with your
:
'
u er of July 21, 1937 involve changes in titles and/or
4Ie d
escription of work, it is suggested that the date of
is3c)ur letter submitting these revised pages, July 21, 1937,
Shown on the pages as the date of the bank's letter sub1:1tti nE the
pages, and that the date of this letter be shown
j,the date of approval of such pages. Corresponding changes
"'Ill he made in the Board's copy of your personnel claSsification
plan."
The changes
referred to in the first paragraph of the above lette
Wet.e changes in
the title for the position "Audit Examining Clerk"
at th
head
office, Cincinnati and Pittsburgh branches to "Audit Senior
Clerk,
:al nd minor revisions in the description of work of certain positiohs
in the Audit Department at the head office end branches and the
00,1,e11.
cY and Coin Department of the Pittsburgh branch.
Approved unanimously.
Letter to Mr. Schaller, President of the Federal Reserve Bank
DChiceo, stating
that the Board approves the changes in the person121classification
plan o the bank, as requested in his letter of
20n
1937, to provide for increases in the maximum salaries for the
13°sitioils
Of "Planning Specialist" and "Cost Accountant" in the PlanOf the bank.
Approved unanimously.
Letter to Mr. Clark, Vice President of the Federal Reserve Bank
Atlette
readinv as follows:
1033
7/26/37
"Referring to your letter of July 19, 1937, the Board
lotes
without objection the suggestion, approved at the meetof the board of directors of the Federal Reserve Dank of
Atlanta held on July 9, 1937, that at some time in the fall
the
directors of the bank meet in joint session with the
irectors of the several branches."
Approved unanimously.
Letter dated July 24, 1937, to Mr. E. B. Harshaw, Vice Presicl"' Grove City National Bank, Grove City, Pennsylvania, reading as
follows:
our letter of July 16, 1937 addressed to the Federal
De
•
Posit Insurance Corporation has been referred to the Board
f
q3G°7ernors for reply and was received by us on July 22,
' We regret that you have had so much difficulty in
°In?
+ aining an answer to the question presented in your let"Since your bank is a national bank, the question
s4;''uer the distribution of coin banks to depositors conan unlawful payment of interest on deposits dePend
nds upon the interpretation of the Board's Regulation
:
t which relates to member banks, rather than upon the in:
a rPretation of
Regulation IV of the Federal Deposit InsurAe Corporation,
which relates to insured nonmember banks.
Copy
of Regulation Q is inclosed herewith for your conenience,
e case which was presented to the Board some time
lt ePPeared that the coin banks there under consideration
th:! used for the accumulation of coin or currency, or both;
'
tc 6 such banks
were distributed by loan, gift, or otherwise,
savingth, s
depositors or prospective savings
depositors; that
co- coin banks were constructe
d so that money placed in them
diuld. not be
removed without unlocking the banks; that the
coliouting bank retained the key or combination to the
ae-n bank.
s, and that the coin banks had no value except as
ces to aid in the accumulation of savings and were not
" for any other purpose.
.In that case, the Board took the position that the
tiot ribution of coin banks of the type described above did
/tell constitute a payment
of interest on deposits within the
toarl g of section 19 of the Federal Reserve Act or the
you-- s Regulation
Accordingly, if the coin banks to which
refer are of the kind described above, the distribution
1_034
7/26/37
-5"°1* such banks will not constitute a payment of interest
Cri deposits. Of
course, if the coin banks which you have
mi
are substantially different from those described
it is suggested that you communicate further with
the Board."
Approved unanimously.
Letter to Mr. Walsh, Federal Reserve Agent at the Federal Resellre Bank
of Dallas, reading as follows:
"Receipt is acknowledged of your letter of 'Tilly 16,
9('7, transmitting for the Board's information and files
With respect to the indebtedness and outside busireportwith
'Less
of, and ownership of bank stock by, officers
eMployees of the Federal Reserve Apent's Department ocIIPYing responsible positions.
"tinder the revised procedure outlined in the Board's
letter c
--e, dated June 25, 1937, such reports need not in
""e future be
submitted to the Board of Governors as the
rlocedure contemplates that such reports with respect to
ore Assistant Federal Reserve Agents and other employees
the Federal Reserve Agent's Department occupying responble positions will be submitted by the Federal Reserve
ent to the Board
of Directors of the Reserve Bank, and
t1:
1,
Board's examiners have been instructed to review the
tiTts regarding indebtedness, outside business activi04,e,) and ownership
of bank stock submitted to the Board
uirectors, and to advise the Board of Governors of any
411sual
situations presented thereby.
"It has been noted that the report as submitted to
zelfB
o
ard of Governors included information regarding
yourit ) Els Chairman of the Board and Federal Reserve Agent.
cilitl.rieW of the transfer to the banks of the non-statutory
Fedles previously performed in the offices of Chairmen and
upoellil Reserve Agents and the placing of the Chairmanship
Boan en honorarium basis, the procedure set forth in the
mijd's letter S-8 does not require that the reports sub1.es ed to the Board of Directors of the Reserve Bank with
ect to the Federal Reserve Agent's Department include
''-crmation regarding. the Federal Reserve Agent."
t
Approved unanimously, with the understendinE that a copy of the letter would be
sent to the Presidents of all Federal reserve banks.
1_035
7/26/37
Mr. Morrill subnitted a recommendation, which had been approved
15Y tha Personnel Committee, that the Board authorize the purchase of
4111°'€111‘s, tables, settees, ladders, trucks, die for stamping initials
O
tatel) wiping cloths, "A" extension trestles, lamps, paper bailer
8411Wirel toilet room supplies, and ring binder, and for the laying of
cktPet8 and felt floor cushion, as listed in purchase orders Nos. 1797,
1802
1804) 1805, 1806, 1807, 1808, 1810, 1811, 1815, 1816, 1817, 1818,
1819
'18211 1822, 1823, and 1833, at a total cost of $1,117.67, and of
eotton
4eg$. and watering hose from the Procurement Division of the
:
418417 Department, as listed in purchase orders Nos. 201 and 202,
'
cr 118e it the
Board's new building.
Approved unanimously.
Thereupon the meeting adjourned.
Yrl&1/L47,(2
Secretary.
414
'
31 d:
Chairman.
@FedFRASER