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768 A. meeting of the Board of Governors of the Federal Reserve SysWas held in Washington on Wednesday, Tune 2, 1937, at 3:00 p. in. PRESENT: Mr. Eccles, Chairman Ransom, Vice Chairman Mr. Broderick Mr. Szymczak Mr. McKee Mr. Davis Mr. 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 reto and the action stated with respect thereto was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal R eserve System held on Tune 1, 1937, were approved unanimously. Telegram to Mr. Austin, Chairman of the Federal Reserve Bank of elPhia, and Mr. Stewart, Secretary of the Federal Reserve Bank of St. Louis, stating that the Board approves the establishment without °Ilan° by the respective banks today of the rates of discount and purchase in their existing schedules. Approved unanimously. Letter to Honorable Henry G. Morgenthau, Secretary of the Tree41471 reading as follows: "Under date of February 5, 1920, Mr. R. C. Leffingwell, A88 istant Secretary of the Treasury, wrote to the Board in; : i ting attention to a recommendation made by the Secret Serrlce Division of the Treasury that a vault clerk be assigned 2r duty at the Bureau of Engraving and Printing with respect : kac t) the custody of the reserve stock of Federal Reserve notes. that time it appeared that the stock of Federal Reserve '769 6/2/37 "notes was held in the joint custody of a representative of the Secretary of the Treasury and a representative of the Director of the Bureau of Engraving and Printing, and that the Secret Service Division thought that in addition a separate vault clerk, independent of the Loans and Currency Division of the Treasury and the Bureau of Engraving and Printing, should be placed in charge of the Federal Reserve vault, and that he should be made responsible for its contents. "In replying to Mr. Leffingwell's letter, the Federal Reserve Board approved of the appointment of a vault clerk t° serve as custodian of the reserve stock of Federal Reserve 11"sla at the Bureau of Engraving and Printing with the distinct understanding that such custodian should be subject 8°1-elY to the jurisdiction and orders of the Secretary of the Treasury, and that the Federal Reserve Board and the FederaI Reserve banks should be in no way liable for his acts, either of omission or commission. Pursuant to this action Mr. William J. Rowan was appointed as vault clerk and has since been carried on the Board's payroll. "The Board is, of course, interested in having adequate Protection for the reserve stock of Federal Reserve Currency Ett the Bureau of Engraving and Printing. Since, however, the ?stodY of such notes is clearly the responsibility of the reasurY Department, and since the Board would prefer not to , ' errY on its payroll any person who is not subject to its ?rdeirs and instructions, it would be appreciated if any costs I ncurred at the Bureau in connection with the custody of Fed7 1 3,1 Reserve notes which are chargeable against the Federal peserve banks could be included in the cost of production of Rsderal Reserve notes, which costs are paid by the Federal Re serve banks monthly upon receipt of advice of the amount Ilereof from the Bureau of Engraving and Printing. "If such an arrangement can be worked out the Board would elPPreciate it if it is made effective as of Tuly 1, 1937." Approved unanimously. Telegram to Mr. Young, Vice President of the Federal Reserve ttillk or chicago, referring to the application of "The State Bank of tondo n Mills", London Mills, Illinois, for permission to withdraw im°-, ,rem membership in the Federal Reserve System, and stating thEit the Board waives the usual requirement of six months notice of in41on 40 withdraw, and that, accordingly, upon surrender of the Fedr eserve bank stock issued to The State Bank of London Liil1s, the 6/2/37 -3- PecleM1 Reserve Bank of Chicago is authorized to cancel such stock and IllEtke appropriate refund thereon. Approved unanimously. Thereupon the meeting adjourned. Chairman.
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