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Ameeting of the Board of Governors of the Iederal Reserve

SYstem was held in Vlashington on Saturday, January 7, 1939, at 11:30

a. naL.

PRESENT: Mr. Eccles, ChairmanMr. SzymczakMr. McKeeMr. DavisMr. Draper

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Chairman

The action stated with respect to each of the matters herein-

after referred to was taken by the Board:

The minutes of the meeting of the Board of Governors of the

Federal Reserve System held on January 6, 1939, were approved unani-

mously.

Letter to Mr. Sinclair, President of the Federal Reserve Bank

Of Philadelphia, reading as follows:

"In accordance with the request contained in your

letter of December 31, 1938, the Board approves the ap-

pointment, effective January 1, 1939, of Joseph R. Campbell,at present an assistant examiner, as an examiner for the

Federal Reserve Bank of Philadelphia."

Approved unanimously.

Telegram to Mr. Hitt, First Vice President of the Federal Re-

serve Bank of St. Louis, reading as follows:

"Relet January 4. Board approves appointment of

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"F. J. Mueller as an examiner for your bank. Please ad-vise of effective date."

Approved unanimously.

Telegram to Mr. Gilbert, First Vice .President of the Federal

Reserve Bank of Dallas, reading as follows:

"Relet December 30. Upon basis of available infor-mation, Board agrees with your conclusion that Wirt G.Bowman Investment Company is not a holding company af-filiate of The First National Bank of Nogales, Nogales,Arizona. Please advise bank accordingly."

Approved unanimously.

Letter to Mr. Fletcher, Vice President of the Federal Reserve

Bank of Cleveland, reading as follows:

"This refers to your letter of December 29, 1938,stating that on account of a typographical error in theagreement which the BancOhio Corporation, Columbus, Ohio,executed on December 12, 1938, as a condition to the is-suance of a general voting permit entitling it to votethe stock which it owns or controls of The First NationalBank of Delaware, Delaware, Ohio, such corporation, atyour request, executed under the same date a correctedagreement, which you inclosed with your letter. Suchagreement has been accepted in substitution for thatforwarded to the Board with your letter of December 19,1938, and, in accordance with your request, the latteris inclosed herewith in order that you may return it toBancOhio Corporation."

Approved unanimously.

Telegram to Mr. Swanson, Vice President of the Federal Reserve

Bank of Minneapolis, reading as follows:

"Relet December 22, 1938 Board interposes no objec-tion to payment of a dividend by Bank Shares Corporation,

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"Minneapolis, Minnesota, out of actual net earnings of

corporation provided that corporation's capitel is unim-paired at time of declaration of dividend and will not be

impaired by declaration thereof. Board also interposes no

objection to adjustments by corporation of its asset values

on a proper basis but attention is directed to possibilityof overstatement of values of subsidiary bank stocks if

dividends are declared by banks shortly after the date as

of which capital structures of banks are used as a valua-

tion base."

Approved unanimously.

Letter to the Presidents of all /ederal reserve banks, reading

as follows:

"There are being sent to you today under separate

cover copies of the radio script that has beenprepared at the request of the National Emergency Coun-cil. Copies of an earlier draft were sent to all xederal

Reserve banks for criticism. The script was revised inthe light of many helpful suggestions that were received.

"Copies of the script are today being released tothe National Emergency Council in Washington, and thatagency will distribute copies to its local representatives

throughout the country, who will solicit your cooperationand make all arrangements for presenting the program."

Approved unanimously.

Memorandum dated January 5, 1939, from Mr. Foulk, Fiscal Agent,

recommending that, for the reason stated in the memorandum, the sum of

15.0C be added to the item "Miscellaneous" in the 1938 budget for the

-tiscal Agent's Office to pay Brink's Express for transporting payroll

cash for the month of December 1938.

Approved unanimously.

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Thereupon the meeting adjourned.

Chairman.

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