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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.