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A meeting of the Board of Governors of the Federal Reserve

Systemwas held in Washington on Aednesday, November 10, 1937, at

11:00 a

PRESENT: Mr. Eccles, ChairmanMr. Szymczak

•130Rrcl:

4111%d to and the action stated with respect thereto was taken by the

Mr. Morrill, SecretaryMr. Bethea, Assistant Secretary

Mr. Carpenter, Assistant Secretary

Mr. Clayton, Assistant to the Chairman

Consideration was given to each of the matters hereinafter re-

Telegrams to Mr. Young, President of the Federal Reserve Bank

"Boston, Messrs. Stewart and Sargent, Secretaries of the FederalReserv

Banks of

1111c/nlaa, Chairman

that the

Board approves

41118 and San Franciscohrld

Xansas City banks today)their

existing schedules.

St. Louis and San Francisco, respectively, and Mr.

of the Federal Reserve Bank of Kansas City, stating

the establishment without change by the St.

banks on November 9, 1937, and by the Boston

of the rates of discount and purchase in

Approved unanimously.

Letter to Mr. Schaller, President of the Federal Reserve Bankcar eti4 e41,,0

$ reading as follows:

2s, 1:Receipt is acknowledged of your letter of OctoberUpon the subject of the recent survey of your

Of dePartment as the same may be related to a review'jl'elears' salaries by a committee appointed by yourward.

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"While the report to which you refer has been preparedand filed, the Board has not as yet had an opportunity toconsider it, nor have surveys of the legal departments ofau

the the banks been entirely completed. Since its viewswith respect to an individual survey might be influenced by'factors

developed in a review of the whole, the Board pre-u,T to withhold comment with respect to a particular one

il It has had an opportunity to review the same in the.p_ E3"ht of the entire situation. At that time, if the Boardfeels that comment should be made, you will be advised ac-c°rdingly.”

pallas

Approved unanimously.

Letter to Mr. Walsh, Chairman of the Federal Reserve Bank of

' reading as follows:

de,„,"The Board of Governors of the Federal Reserve SystemBa-"ed some time ago that surveys should be made of thep: Examination and Auditing Departments at all of thepo aral Reserve Banks. There is attached a copy of a re-

Ora R

of the survey of the Auditing Department of the Fed-

tc eserve Bank of Dallas recently conducted by the

the e8Examiners Jones and Cagle. An additional copy of

rePort is inclosed for President McKinney.at 4 le the survey indicates that the auditing functionpe :he Federal Reserve Bank of Dallas in general is beingmeirl-rmed in substantial conformity with the standards recom-ba::ed bY the Conference of Auditors of the Federal Reserve

Sefftshteld in Washington in November 1936, the conclusions

Whichr-h bY the examiners indicate a number of mattersmerit consideration.

wh "It will be appreciated if you and any of your directors

this, Y011 may designate end President McKinney will reviewrea-4rePort of survey and give the Board the benefit of your

sta.et'l°ne to the matters referred to above and any otherviews.elments concerning which you would like to express your

tion "The footnote of the letter transmitting the recommenda-

sot-2,°f the Conference of Auditors to Mr. George L. Barri-orei .1.11airman of the Conference of Presidents of the Fed-riatu 'eserve Banks, called attention to the confidential

°f the material contained in that report and other-rniation relative to the auditing activities at the Fed-

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440/3?

eral Reserve Banks. As the inclosed report refers fre-quently to the Auditors' recommendations and also contains°ther information of a confidential nature concerning' thelepetivities of the Auditing Department of your bank, it will

to ePPreciated if the report itself is not made available0(1? ne bank's employees and the officers directly in chargea ''Ale operating departments. Of course, the Board sees

tOadobi ection to the report, or parts thereof, being submit-

b rto, or discussed with, your directors and such of the"k s officers as you and President McKinney deem advis-able.ft

Approved unanimously.

Memorandum dated October 29, 1937, from Mr. Wyatt, General

e°1111sel• recommending that the Board again subscribe to the Congres-siorial 8ervice,

covering legislation relating to banking and currency

Infatters, l'urnished by the Commerce ClearinR House, Inc., for the

4ecial session of Congress to convene on November 15 and for the

l'egIllar session, at a cost of if5.00 per week during the special

Bession. and a flat charge of :11;120.00 for the period of the regular

se4i011 C°ngres5.

hEtdueen e

PProved by the Personnel Committee, that the Board authorizethelpill‘c

Be and installation of certain kitchen equipment, as listed-Tk rcha,

e order No. 2474, at a total cost of 4719.70.

Approved unanimously.

There was presented a recommendation from Mr. Morrill, which

Approved unanimously.

Thereupon the meeting adjourned.

AlDpl.oved: Sec etary.

Chairman.

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