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1401 A meeting of the Board of Governors of the Federal Reserve System with the Presidents of the Federal Reserve Banks was held in Washington on Tuesday, October 19, 1937, at 10:35 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Davis Mr. Morrill, Secretary Mr. Bethea, Assistant Secretory Mr. Carpenter, Assistant Secretory Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Tyatt, General Counsel Mr. Paulger, Chief of the Division of Examinations Mr. Goldenweiser, Director of the Division of Research and Statistics Mr. Smead, Chief of the Division of Bank Operations Mr. Parry, Chief of the Division of Security Loans Messrs. Young, Harrison, Sinclair, Fleming, Leach, Newton, Schaller, Martin, Peyton, Hamilton, McKinney and Day, Presidents of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco, respectively Mr. H. H. Kimball, Acting Secretary of the Presidents' Conference Mr• Harrison stated that the Presidents' Conference had been in session all day yesterday and had completed consideration of the topics on the program for the Conference and that the minutes of the session would be sent to the Board as soon as they were prepared. 1402 10/19/37 -2- In connection with the topic on the Conference program with respect to the desirability of a general review of the leased wir e code book, Mr. Harrison stated that the Conference had appointed a committee consis ting of operating officers of Federa res erve banks l to consider the matter and would app reciate it if the Board would appoint a mem ber of its staff to wor k with the committee. Mr. Harrison then referred to the request of the Board that the Conference discuss the desirability of bi-weekly meetings of the boards of directors of the Federa res erve banks on uniform dates and l stated that the Conference had appointed a committee of three presidents to con fer vith the Board regarding the matter. The question of Uniform meetin g dates was discus sed briefly and it was understood that the committee appointed by the Presidents' Conference would submit a written report. The Conferenc e also had discussed the question of the distribution to member banks by the Board of Governors rather than by the Federal reserve banks of new and revised regulations issued by the Board and Mr. Harrison stated that it was the fairly unanimous °Pinion of the Presidents that, except in unusual cases, it would be more s atisfactory if the Board would resume the previous practice of distributing its regulations through the Federal reserve banks in order that the direct contact between the member banks and the Federal reserve banks in connection with matters relating to the regulations might be maintained. Mr. Harrison also reported that the Presidents had discussed certain l egislative proposals wit res h pect to the Federal Reserve 1403 10/19/37 -3-System and had appointed a committee to study the general question of legislation and sub mit to the Presidents' Conference for its information a wri tten report with res pect thereto. Mr. Harrison then stated that the Conference had also considered reports submit ted by various committee s and had voted, in connection With the report of the Commit tee on Free Services, that at the present time no charge should be imposed for handling non-cash collections but that this action did not app ly to the charge now being made by the Federal Reserv e Banks of Bos ton and Nev. York for handling drafts with securities attached which are not the property of a member bank. In connectio n with the status as to eligibility for discou nt of Paper of finance companies under Regulation A, Discounts for and Advances to Member Banks by Federal Reserve Banks, recent ly issued by the Boa rd of Gov ernors, Mr. Harrison stated tha t the Conference had approved the sub stance of a resolution whi ch would be forwarded to the Board in due course and which would state the understanding of the Conference as to the effect of the elimination from subsection 1(a) of the Re gulation of the requirement that paper, in order to be eligible for discount under that subsection must be used "in the first instance for the pur pose of producing, purchasing, carrying or marketing goo ds. At the suggestion of Chairman Eccles each President reviewed briefly the business situation in his district and there was a general dincussion of recent developments. 1404 10/19/37 -4- At the conclu sion of the discussion the meeting adjourned.
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