Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, October 26, 1936, Volume 23, Part 5

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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




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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




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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.