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1.564 A meeting of the Board of Governors of the Federal Reserve 8741te1 was held in Washington on Wednesday, November 24, 1937, at 11:50 es m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Davis Mr. Morrill, Secretary Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. 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 113411: The minutes of the meeting of the Board of Governors of the w4- Reserve System held on November 23, 1937, were approved uneni1:4011811. Telegrams to Mr. Young, President of the Federal Reserve Bank °t Idosto On, and Mr. Helm, Vice President of the Federal Reserve Bank at R. -44 " 18 City, stating that the Board approves the establishment with°1t ch41186 by the banks today of the rates of discount and purchase in eZisting schedules. Approved unanimously. 14441. ktor, Mftorandum dated November 22, 1937, from Mr. Morrill recom13 the ePpointment of Mr. Julian B. Hammond as an elevator operIlith salary at the rate of $1,200 per annum, effective as of the 1465 11/24/37 data upon which he enters upon the performance of his duties after 11"IR passed satisfactorily the usual physical examination. Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank Ricl Ilnond, reading as follows: "There is inclosed a copy of a letter dated November 13$ 1937, from Mr. George T. Ellis, Assistant Trust Officer of The First National Exchange Bank of Roanoke, Roanoke, A.T. ,r€inia$ inquiring whether his indebtedness to the Colonialan National Bank, Roanoke, Virginia, which was inprior to the time he became an officer of The First 4.”icnal Exchange Bank of Roanoke, should be reported to ; Ze board of directors of his bank as provided in section 10(g) of the Federal Reserve Act and section 5 of the ard's Regulation O. It will be appreciated if you will ' 6131Y to the letter from Mr. Ellis. "For your assistance in connection with such reply, It i,may be stated that it is the view of the Board that, 0;arluch as section 22(g) provides that if any executive ! o icer of a member bank 'be or become indebted' to any ,her bank he shall make a written report to the board of ° i'lrectors fl irlis member bank, a report of the indebtedness required this case, notwithstanding the fact that Such indebtedness was incurred prior to the time Mr. Ellis iserte an executive officer of a member bank. This view T,..,uased upon the assumption that Mr. Ellis as Assistant e";''st Officer Participates in the management of his bank t,as to be an executive officer within the meaning of tlErt term as defined in Regulation 0. "A copy of our letter to Mr. Ellis is also inclosed." Approved unanimously. Letter to Mr. Clark, Vice President of the Federal Reserve 4t1c of Atlanta, reading as follows: 1937 "Reference is made to your letter of November 13, with inclosures, in reply to the Board's letter of oct e'uer 25 regarding the possible violations of section 1566 11/24/37 r•A "5136 U.S.P.S. by the Trust Company of Georgia, Atlanta, Ge°rgia, through purchase of corporate stocks for its ineurance reserve account. "It has been noted that the account has been invested in the following securities which do not appear as assets of the bank inasmuch as the reserve account is handled as trust account administered by the trust department of the bank: Bonds Stocks: PUrchased prior to June 16, 1933 Purchased subsequent to June 16, 1933 40.9,683.75 24,184.40 19,305.25 4;63,173.40 nou report that there was no intentional violation of ""e Provisions of section 5136 as the bank's management in 5"cl faith believed that it might invest funds not regarded :s a bank asset in securities other than those permitted by tIlIch section, but that since the question has been raised, 0 , e management has advised that it will arrange to dispose the stocks purchased since June 16, 1933. The bank has l'▪equerststed, however, that it be permitted to hold for at six months the 50 shares of U. S. Steel Preferred s laj .ek carried in the account, since the management does feel that a fair price can be obtained for the stock et this time. "In view of the circumstances and the relatively small • oant involved, the Board, in accordance with your recomoZ ' I ticm, will interpose no objection to the manner, as -Lined in your letter, in which the bank proposes to dis' use of the corporate stocks purchased since June 16, 1933.” Z Approved unanimously. Illenlorandum dated November 15, 1937, from Mr. Vest, Assistant 1'41 coUnsel, recoimnending that there be published in the December 1.1e c)f the Federal Reserve Bulletin a statement in the form attached t() them -emorandum with respect to the following subject: 1,1, .1 13lication of Revised Edition of Board's Digest of 'ulings. Approved unanimously. Thereupon the meeting adjourned.
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