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1331 A meeting of the Board of Governors of the Federal Reserv System e was held in Washington on Thursday, July 9, 1936, at 11:30 a. in. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak McKee Ransom Davis Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Consideration was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the Board: The minutes of the meetin g of the Board of Governors of the Federal Reserve System held on July 8, 1936, were approved unanimously. Telegrams to Mr. Robert Lassiter, Class C Director of the Federal Reserve Bank of Richmond, Mr. Thomas, Chairman of the Federal Reserve Bank Of Kansas City, and Mr. Sargent, Secretary of the Federal Reserv Bank e of San Francisco, stating that the Board approv es the establishment without change by the respective banks today of the rates of discount and purchase in their existing schedules. Approved unanimously. Letter to Mr. S. A. Jennings, Vice President, The Citizens National Bank & Trust Company, Mansfield, Ohio, reading as follows: "This the questi refers to your letter dated June 26, 1936, regarding on tion may be whether a deposit of the Mansfield Cemetery Associaclassified by your bank as a savings deposit under the definition contained in section 1(e) of Regulation Q. t. "The Board has recently taken the position that a corpora._1°n, association, or other organization engaged in the sale and 1ntenance of cemetery lots may be considered as an organization operated primarily for religious, philanthropic, charitable, 1332 7/9/36 -2- "educational, fraternal or other similar purposes within the meaning of section 1(e) of Regulation Q. Accordingly, if the Mansfield Cemetery Association is in fact not operated for profit and if its deposit meets the other requirements of the regulation , such deposit may be classified by your bank as a savings deposit and interest may be paid thereon at a rate not exceeding that prescribed in the supplement to Regulation Q, which is now 21 per cent per annum. In view of the above rulin g of the Board, it will be unnecessary for Your bank to conve rt this deposit into a 'time deposit, open T.ccount' or other time deposit in order to continue to pay interest thereon, provided that the deposit complies with the Other provisions of section 1(e) of Regulation Q. "It is hoped that this information will answe the r questions which you have in mind. If, however, you should have any other questions regarding this matter or any similar matter, it is believed that you may find it more convenient to communicat e with the Federal Reserve Bank of Cleveland, Which will be glad to answe r your inquiries." Approved unanimously. Letter to Mr. W. S. Hildreth, Vice President, The Peoples National 13ank, Charlo ttesville, Virginia, reading as follows: makingReceipt is acknowledged of your letter of July 1, 1936 inquiry with respect to the applicability of the oard's Regulation U to a particular situation which you describe. "In reply, you are advised that while Regulation U, at Present, does not apply to loans made prior to May 1, 1956, only the reduced balance of the loan to which you refer would come within the exemp tion and any new advance secured directly or Indirectly by any stock for the purpose of purchasing or Carrying any stock registered on a national securities excuange would be subje ct to the regulation. Consequently, an additional advance such as you refer to would appear to be In violation of the Regulation. "In the future if you have any furth er inquiry with respect to this regulation, it is believed that you will find it more convenient to address the same to the Federal Reserve tri : z ssfsti Richmond, 0 the officers of which bank will be very glad Approved unanimously. Letter to Mr. Logan, General Counsel of the Federal Reserve Bank of 1333 7/9/36 New York, reading as follows: "In response to your letter of July 1, 1936, you are advised that the Board has approved payment by the Federal Reserve Bank of New York to Messrs. Pitney, Hardin & Skinner, Escle., attorneys at Newark, New Jersey, the sum of $2358.41 as attorneys? fees in connection with services rendered and expenses incurred in connection with the loan by the Federal Reserve Bank of New York to the Passaic Print Vorks, Inc., of Passaic, New Jersey. . "'Lou are also advised that the Board approves the continuance of their employment in the event it becomes necessary to defend the title to the mortgaged property sold under an agreement whereby the Federal Reserve Bank of New York, in effect, has warranted the title of such property to the purchaser." Approved unanimously. Memorandum dated July 7, 1936, from Yr. Smead, Chief of the Division of Bank Operations, submitting, for the information of the Board, the final report of the Committee on the Destruction of Records Maintained by the Federal Reserve Banks, appointed by the Governors' Conference in March 1935, which will be submitted for action at the next meeting of the Presidents' Conference. The memorandum recommended that the Board defer acti°n on the report until after it had been considered by the Presidents' C°nference and the recommendations of the Conference received. Approved unanimously. Thereupon the meeting adjourned.
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