The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1459 A meeting of the Board of Governors of the Federal Reserve 83rst was held in Washington on Thursday, October 28, 1937, at 11:30 PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Szynczak 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 reterred ") and the action stated with respect thereto was taken by the BOArd: The minutes of the meetings of the Board of Governors of the Pea era). Reserve System held on October 26 and 27, 1937, were approved 11111%4 4.11401181 y Telegrams to Mr. Young, President of the Federal Reserve Bank °t and Mr. Stewart, Secretary of the Federal Reserve Bank of 4. Lola chank stating that the Board approves the establishment without -e bY the Boston bank on October 27, 1937, and by the St. Louis 14111, ---ttIcleY, of the rates of discount and purchase in their existing eS6 Approved unanimously. iteta orandum dated October 28, 1937, from Mr. Morrill submitting eer-444ftdation of Mr. Spurney, Building Manager, in which/tr. Mor004cur ,A ap-"e"A s that the salary of Mr. Soseph T. Glotfelty, 1460 10/28/37 Prentice 0 engineer, be increased from 4pl,080 to 41,200 per annum, ef- fective November 1, 1937' Approved unanimously. Letter to the board of directors of "The Rio Grande County Del Norte, Colorado, stating that, subject to the conditions Of mellibershiP numbered 1 to 3 contained in the Board's Regulation H and the following special condition, the Board approves the bank's aDPlicati for membership in the Federal Reserve System and for the a PProPriate amount of stock in the Federal Reserve Bank of Kansas City: 4 ' S”h bank shall make adequate provision for depreciation in its banking house and furniture and fixtures." Approved unanimously, together with a letter to Mr. Hamilton, President of the Federal Reserve Bank of Kansas City, reading as follows: "The Board of Governors of the Federal Reserve System P er°17e8 the application of 'The Rio Grande County Bank', svm.N°rte, Colorado, for membership in the Federal Reserve ci, 76111) subject to the conditions prescribed in the inbo-sed letter which you are requested to forward to the 1_!ird of directors of the institution. Two copies of such are also inclosed, one of which is for your files Id the other of which you are requested to forward to the Bank Commissioner of the State of Colorado for his Statei nr°rmation. 4"The Board has noted your comments with respect to the - i°12- of the applicability of the statutory limitations to! the liability of the Western Acceptance Corporation, Colorado, which is reported to be in excess of such ' th LL tetions. It appears that you have advised the bank ", in the absence of a definite ruling by the Bank Corn- t 1461 10/28/37 "missioner of Colorado, it will be necessary to consider the liability of the corporation as an excess loan. In view of he circumstances and the further fact that the paper inred by the corporation is regarded as a heavy concentrai°n of credit, it is suggested that you advise the bank that an orderly reduction in the liability of the corporation will be expected." I Telegram to Mr. Sargent, Vice President of the Federal Reserve Bank 04, -1 San Francisco, reading as follows: "Re your telegrams October 28, October 26 and letter Octnl, --er 25 re Regulation T. If stock of new company is not . 1-1"en loan value for the purposes of the regulation, it maY be accepted end retained in margin account pursuant to section 5 of the regulation even if it is unregistered and ! 1?nexempted. When and if new stock becomes registered it 0.will have usual loan value of a registered security. SeIirities and Exchange Commission rule AN23 makes rule AN1 : liceble cable to new stock if it is exempted under rule AN23. The during any period while AN23 applies, if the new is listed on a national securities exchange it would have : LcIve the same loan value as if it were registered. If there 06 4- question as to when and if new stock becomes registered exemPted suggest consult local office Securities and .'xchange Commission." TV Approved unanimously. Letter to Mr. E. N. Dekker, Assistant Vice President, The National i, City Be , Of Cleveland, Cleveland, Ohio, reading as follows: in "Reference is made to your letter of October 19 inclosp4 8 questionnaire in regard to the operations of the twelve ,e era' Reserve banks under Section 13b of the Federal Reettl7c Act, and requesting that the desired information for eu F furnished by the Board if avail ederal Reserve District be erati:The Board has not had compiled data in regard to opUnder Section 13b in the detail called for by your et stionnaire. There is inclosed, however, a mimeographed esa!Ment showing information by Federal Reserve districts c) aPplications for industrial advances and commitments re' celved by each Federal Reserve bank to September 29, 1937, 1 Cr" 10/28/37 "the amount of such applications approved by the Federal Reserve banks, and the amount of industrial advances and comTtn.ents outstanding, together with certain other informa41011 regarding applications for industrial advances and cumMitments." Approved unanimously, together with a letter to Mr. Worthington, First Vice President of the Federal Reserve Bank of Kansas City, reading as follows: , "Referring to your letter of October 21, since Mr. vekker asks for certain information which cannot be comPiled from information at the Board's offices, it is sug:ested that you transmit such of the desired information 14j a s vailable direct to Mr. Dekker and furnish the Board lel copy of your reply. "With respect to questions A7 and B4, it might be well to tell Mr. Dekker that since most of the loans made by the :ederal Reserve banks are for long periods and many of them re Payable in installments, it is not possible to give him detailedt figures with respect to the repayment record at this runcljea; general statement as to repayment records, however, be given if you think it advisable." In connection with the above matter, the following letter to the Presidents of all Federal reserve banks, except Kansas City, was also approved unanimously: 1., e 1 4 "110r your information there are inclosed copies of our ofTes to letters received from the Federal Reserve Bank de VItisas City and Mr. F. N. Dekker, Assistant Vice Presi414 of the National City Bank of Cleveland, Ohio, with re! e to a questionnaire on industrial loans which Mr. Dek: "es asked the Federal Reserve banks to fill out. It is ee'erstood that Mr. Dekker has written to all Federal Rethee banks, and it will be appreciated if you will furnish Board with a copy of your reply to him." Letter to Mr. Lyman J. Briggs, Chairman, Federal Fire Council, as follows: ChEii "Reference is made to your letter of August 16 to the er6tillen of the Board of Governors in regard to the Fed"'Ire Council. In accordance with the suggestion con- 1463 10/28/37 "tamed in that letter, Mr. F. E. Spurney, Building Manager, has been designated to represent this organization." Approved unanimously. Thereupon the meeting adjourned. Chairman.
@FedFRASER