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1210 A meeting of the Board of Governors of the Federal Reserve Syst" held in Washington on Wednesday, September 1, 1937, at 2:30 p.m. PRESENT: Mr. Ransom, Vice Choi man Mr. Szymczak Mr. Davis Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Consideration was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the toarci: • There were presented telegrams dated August 31 and September 1, 1937 ) from 'Mr. Stewart, Secretary of the Federal Reserve Bank of St. Lokli 8) stating that the board of directors of the bank voted to estab1181, 'for the reasons set forth in the later telegram, a discount rate or 11. Percent per annum on rediscounts of eligible paper for member 4110, -8 and advances to member banks under the provisions of Sections 13 44 13 a of the Federal Reserve Act and a rate of 2 percent on advances to m eelber banks under the provisions of Section 10(b) of the Federal ReAct, effective the first business day following that on which ap1)11ed by the Board of Governors, and that on August 31, 1937, the 1143011tive committee had voted to establish without change the other 1b4tee of discount and purchase in the bank's existing schedule. The discount rate of 1 percent and the rate of 2 percent on advances under Section 10(b) of the Federal Reserve Act, established by the board of directors of the Federal Reserve Bank of St. Louis, were approved unanimously, effective September 2, 1937. 1211 9/1/37 0.11,..010 The establishment by the bank without change of the other rates of discount and purchase in its existing schedule was also approved unanimously. The reasons for approval by the Board of the reduced rates were the same as stated by the Board in connection with its approval on August 20, 1937, of rate reductions by the Federal Reserve Banks of Atlanta and Chicago. There was also presented a telegram received from President -t of the Federal Reserve Bank of Boston stating that the board of directors of the bank, at its meeting today, voted to establish for the reasons set forth in the telegram, a discount rate of percent 13el aroluna on rediscounts of eligible paper for member banks and ad43 to member banks under the provisions of Sections 13 and 13a "the Federal Reserve Act, and a rate of 2 percent on advances to 14e411) "banks under the provisions of Section 10(b) of the Federal Pelle/1 ' e Act, effective the first business day following that on which 4Proved t ErtesOf by the. Board, and had established without change the other discount and purchase in its existing schedule. The discount rate of 1 percent and the rate of 2 percent on advances under Section 10(b) of the Federal Reserve Act, established by the board of directors of the Federal Reserve Bank of Boston were approved unanimously, effective September 2, 1937. The establishment by the bank without change of the other rates of discount and purchase in its existing schedule WBS also approved unanimously. 1212 9/1/37 The reasons for approval by the Board of the reduced rates were the same as stated by the Board in connection with its approval on August 20, 1937, of rate reductions by the Federal Reserve Banks of Atlanta. and Chicago. In connection with the changes in rates at the Federal Reserve laRriks of St. Louis and Boston, there was presented a telegram just re• vedfrom Mr. Broderick stating that he approved the reduced rates es fixed by the boards of directors of the respective banks. Memorandum dated August 30, 1937, from Mr. Bethea, Assistant 4ereta recommending the appointment of Miss Dorothy E. Peeples as 4 Stein -°Erapher in the Office of the Secretary, with salary at the rate or 01 $5 --An per annum, effective as of the date upon which she enters 4°4 he performance of her duties after having passed satisfactorily the 14:̀11a1 physical examination. The memorandum also recommended that 1111r6eret L. Higdon, who was appointed on July 14, 1937, as a zten, 'Erapher in the Secretary's office on a temporary basis for a °d of not to exceed three months, be appointed on a permanent $ with no change in her present salFry at the rate of 0_,440 . per titri effective as of the date upon which she passes satisfactorily the Physical examination. Approved unanimously. Letter to the "Bank of Baraboo", Baraboo, Wisconsin, reading 3.01 I °Ws "The Board of Governors of the Federal Reserve Syshas given consideration to your application for perto exercise fiduciary powers, end grants you au'hority, effective if and when the Bank of Baraboo, Baraboo, tan 9/1/37 -4- "Wisconsin, is converted into a national banking association and is authorized by the Comptroller of the Currency to commence business as 'The Baraboo National Bank', to act, when not in contravention of State or local law, as trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics, the exercise 13f all such rights to be subject to the provisions of the Federal Reserve Act and the regulations of the Board of Governors of the Federal Reserve System. "After the conversion of the Bank of Baraboo into The Baraboo National Bank becomes effective and the Comptroller °f the Currency authorizes the national bank to commence bUsiness, you are requested to have the board of directors °f the national bank adopt a resolution ratifying your apPlication for permission to exercise trust powers, and a certified copy of the resolution so adopted should be forwarded to the Federal Reserve Bank of Chicago, to be forwerded to the Board of Governors of the Federal Reserve , System for its records. When a copy of such resolution has can received by the Board, a formal certificate covering Your authority to exercise trust powers will be sent to You,ti Approved unanimously. Letter to Mr. Charles S. Pyle, President, The National Bank of 15irj SUh, Rising Sun, Maryland, reading as follows: , "Receipt is acknowledged of your letter of August 26, in which you express the view that it would be de8irable for the Board of Governors to reduce the maximum r tElte of interest payable by member banks on time deposits ° 2 per cent per annum instead of 2-1/2 per cent per an- "As you are no doubt aware, member banks may at presc4t.Pay a rate of 2-1/2 per cent per annum only on time delosits having a maturity date 6 months or more after the ate of deposit or which are payable upon written notice °f 6 months or more. "The Board of Governors is always glad to receive sugestions and comments from bankers and others regarding matcoming within its jurisdiction. The matter of the rate °f interest payable by member banks on time and savings de: 1 021ts is one which is receiving constant attention, and the 11Cgesti0n contained in your letter is appreciated." Approved unanimously. 1214 9/1/37 -5Memorandum dated August 25, 1937, from :Mr. Parry, Chief of the 1)111ision of Security Loans, referring to the action taken at the meetthe Board on February 20, 1936, permitting certain classes of tilenther firns of national securities exchanges to file reports on Form 240 semi-annually instead of monthly, and recommending that the Ilow permit such member firms of the New York Stock Exchange as (1) d 0 not carry any margin accounts for customers, (2) do not borrow 111°IleY from banks, and (3) do not have balance sheet totals exceeding 01,00n „ 'svuO, to file their reports only at semi-annual intervals. The ttleni°111-111: 111m also requested approval by the Board of drafts of letters titehed thereto advising the Presidents of the Federal reserve banks e°11cerned that the Board has taken the proposed action and asking the to request semi-annual reports beginning as of December 31, 1937, Nt, he additional firms in their respective districts who are to rellort 'LLLY semi-annually, The reason given for the recommendation was that on the basis of information compiled from monthly reports of mem- be firms of national securities exchanges, it appeared that semi-an1141 IlePorts from the class of firms referred to, instead of monthly 1 would be sufficient for the current information of the Board. The recommendation and letters were approved unanimously. Letter to Mr. Christian C. Luhnow, Editor, Trust Companies, l'°1'k, New York, reading as follows: , "Your letter of July 27, 1937, to Vice Chairman Ransom, he receipt of which was acknowledged by him on August 2, 1215 9/1/37 -6- "has been handed to me for attention in the absence of Mr. Morrill and has been discussed with the Board's Division of Examinations. "Your purposes are fully appreciated and, while it does not seem to be practicable to clear such matter through the Board or to have the examiners submit contributions directly for publication anonymously or otherwise, it is possible that examiners may assist by suggesting to the officers of the institutions involved that anY systems or practices deemed worthy of such treatment be reported to you through contributed articles or descriptive material to be prepared by your staff for the information of your clientele. "The trust examiners for the several Federal reserve banks meet from time to time for the discussion of mutual Problems and it is probable that such a meeting will be held in the near future. The matter will be called to their attention at that time." Approved unanimously. Telegram to Mr. Schaller, President of the Federal Reserve Bank or chi °ego, reading as follows: "Referring your September 1 wire, no objection to your releasing figures of excess reserves of weekly reporting _...e]mber banks in Chicago as of Wednesdays and Saturdays. Please wire Board figures of excess reserves released as of Saturday." Approved unanimously. There was submitted a recommendation, which had been approved bY the -1-ersonnel Committee, that the Board authorie the payment of okleb 'era totaling 40.29.64, covering mopping apparatus and emergency 1.1°111 slIPplies for the Board's new building, as called for in purchase c'diers Nos. 1675, 1781 and 1930. Approved unRnimously. 1216 9/1/37 -7- Thereupon the meeting adjourned. Assistant Secretary. Vice Chairman.
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