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1536 A meeting of the Board of Governors of the Federal Reserve Slrste31 was held in Washington on Tuesday, November 16, 1937, at 11:30 PRESENT: Mr. Eccles, Chairman Mr. Szymczak Mr. McKee Mr. Mr. Mr. Mr. tB„red, Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Consideration was given to each of the matters hereinafter to and the action stated with respect thereto was taken by the Memorandum dated November 10, 1937, from 'Mr. Goldenweiser, tIllect°r of the Division of Research and Statistics, recommending the E1P%intment on a temporary basis for a period of three months of Mrs. Ilizebeth Longley as a clerk in the Division, with salary at the l*ete of 4120 per month, effective as of the date upon which she enters 11Pc3n the performance of her duties. Approved unanimously. Letter %'Montana, to the board of directors of the "Stockmens Bank", Casstating that, subject to the conditions of membership 141:4Therea 1 to 3 contained in the Board's Regulation H and the following 1)ecl-t1 co nditions, the Board approves the bank's application for mem- qoek in the Federal Reserve System and for the appropriate amount of in the Federal Reserve Bank of Minneapolis: 1537 11/16/37 -2- "4. Such bank shall make adequate provision for depreciation in its banking house and furniture and fixtures. 175. Prior to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate net depreciation of 43,173.27 in securities and estimated losses of 4264.13 in Other assets, all as shown in the report of examination of such bank as of October 11, 1937, made by an examiner for the Federal Reserve Bank of Minneapolis." Approved unanimously, together with a letter to Mr. Peyton, President of the Federal Reserve Bank of Minneapolis, reading as follows: "The Board of Governors of the Federal Reserve System : PPrclves the application of the 'Stockmens Bank', Cascade, ;; 1 3 tana, for membership in the Federal Reserve System, i',40ject to the conditions prescribed in the inclosed let-,r which you are requested to forward to the board of 15,rectors of the institution. Two copies of such letter tf;e also inclosed, one of which is for your files and Other of which you are requested to forward to the liallt oltdirt of Banks for the State of Montana for his j M t "It has been noted that while the bank is not authored to exercise trust powers, it may be exercising such b wers in one instance, as the examiner states that the t?It holds in connection with an unsecured loan a deed to the bank as trustee. It appears that the matter is or be referred to the bank's counsel, and it is assumed, course, that it will be followed to a satisfactory / Letter to Mr. H. F. Stokes, Assistant Cashier, National Metro"8ank of Washington, Washington, D. C., reading as follows: 30 "This refers to your letters of September 2, 9, and ce , , 1936, presenting the question whether deposits of ; ualn organizations may be classified by your bank as ses lngs deposits under the definition in section 1(e) of q. 11/16/3? "There is inclosed herewith a mimeographed ruling issued by the Board of Governors upon this subJ ect. It will be observed that on page 2 the Board has exPressed the view that the American Automobile Associa,Ely be considered an organization operated primarily religious, philanthropic, charitable, educational, fraternal or other similar purposes, and, therefore, that Id3ePo81t8 of the Association may be classified by member auks es savings deposits if they comply with the other requirements of the definition. it will also be observed that the Board of Gover11?rs has ruled that professional associations, trade asso!lations, business mans' clubs, and social clubs may be sidered as organizations operated primarily for the tiQve purposes. It is our view that the American AssociaA °II of Certified Public Accountants, the Washington Trade '41?sociati n Executives, and the National Press Club fall 0 /112thin the scope of the above ruling and, therefore, deof such organizations may be classified by member 's as savings deposits if they otherwise comply with e of savings deposits in Regulation Q. "You also ask to be advised whether deposits of the Na Utual Aid Association may be classified as savings ' 4ePosi+ batit -.s. It is understood that this association is a rs„,111 organization; that it has no capital structure as scresented by stocks or bonds; that it is maintained sirlY through the assessments paid by members, commisatoned and warrant officers of the Navy, Marine Corps, ' pet Coast Guard, which assessments are utilized for the ce ent of death benefits to the dependents of such offithes; and that the account in question is maintained for Eie Purpose of meeting any unusual disbursement from the nerit Fund. 11 "t will be observed that on page 3 of the inclosed milt;'ng the Board has taken the position that deposits of xtia , 41.1 or cooperative fire or life insurance associations th ' etnot be classified as savings deposits. It is our view or t he Navy Mutual Aid Association falls within the scope tion' ,8 ruling and, therefore, deposits of such Associads , MaY not be classified by member banks as savings re X tC this You should have any her questions regarding 3rotl cilatter or any similar matter, it is suggested that °D]municate with the Federal Reserve Bank of Rich- 1539 •L "In accordance with the request contained in your 1 ter of September 2, 1936, the inclosures in such letter are retarned to you herewith." Approved unanimously. Thereupon the meeting adjourned.
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