The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1942 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Monday, October 26, 1956, at 11:00 a. in. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Broderick Szymczak McKee Davis 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 referred to and the action stated with respect thereto was taken by the Board: The minutes of the meeting of the Board of Governors of the Pederal Reserve System held on October 25, 1936, were approved unanimously. Telegrams to Mr. McAdams, Secretary of the Federal Reserve Bank of Kansas City, and Mr. McKinney, President of the Federal Reserve Bank of Dallas, stating that the Board approves the establishlent without change by the Kansas City bank on October 24, 1936, and IDY the Dallas bank today, of the rates of discount and purchase in their existing schedules. Approved unanimously. Bond, in the amount of $50,000, executed under date of October 20, 1956, by Mr. Edward Albert Zehner as Alternate Assistant 1943 10/26/36 -2- Federal Reserve Agent at the Federal Reserve Bank of St. Louis. Approved unanimously. Bonds, each in the amount of 40,000, executed under date of October 16, 1936, by Messrs. William Russell Young and Ira Arthur Thornton as Acting Assistant Federal Reserve Agents at the Federal Reserve Bank of Kansas City. Approved unanimously. Letter to Mr. Wheeler, Chief of the Division of Research of the Federal Reserve Bank of San Francisco, reading as follows: "This will acknowledge your letter of October 9 with which you enclose a letter addressed to you by Mr. Shaughnessy, President of the San Francisco Stock Exchange, relating to collateral value of certain types of newly issued securities, such as the General Paint new preferred. "As you suggest in your letter, a broker subject to Regulation T may extend credit on a given stock, such as a new stock, for the purpose of purchasing or carrying securities, only if the stock is effectively registered with the Securities and Exchange Commission, or is admitted to unlisted trading privileges, or is temporarily exempted in accordance with Rule AN 1 of the Commission. Unless a security is so registered or admitted, or is exempted, moreover, the Board has no power to permit extensions of credit on it by such brokers for the purpose specified. "An inquiry as to whether a given stock is exempted under the Commission's rules should be taken up with the Commission. If the San Francisco Stock Exchange should decide to make any formal suggestions to the Securities and Exchange Commission regarding the amendment of the 'AN rules' to apply to such stocks as are mentioned in Mr. Shaughnessy's letter, we shall appreciate information to that effect." Approved unanimously. Memorandum dated October 23, 1936, from Mr. Morrill recommending that the Board authorize the addition of t,750.00 to the 1944 10/26/56 budget for the item "Subsistence Expenses - Board Members", in order to provide funds for the estimated subsistence expenses of members of the Board for the balance of the year. Approved unanimously. Thereupon the meeting adjourned. Secretary APproved: Chairman.