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June 2 3 , 1948.

Mr* Mariner 5. Eccles,
Hotel Ben Lomond,
Ogden, Utah*
Dear Marriners
First thing this morning I called Carpenter and found
that the record v/ith respect to the New York salary matter was
about as follows:
Ihe Chaiiman was to advise Bob Stevens that the Board
i s not willing to consider any adjustment in the f i r s t two officers of the Bank and that the Committee would be glad to receive
additional infoimation respecting the others. No l e t t e r was contemplatedj however*
I asked Carpenter when the Chaiiman would be in, also
whether any communication had been had with N w York as yet. H
said that the Chaiiman was coming in today in order to attend the
N C meeting following which he would go to his fam on the eastA
ern shore of Maryland. I then asked Carpenter to t e l l him that I
felt the matter should be discussed again a t a Board meeting before being taken up with N w York for the reason that the particue
lar form of the action at the l a s t meeting would lead various
officers at the New York Bank with salaries in excess of $20
thousand to expect some adjustment and that this would be a mistake since I f e l t certain a majority of the Board would not be
willing to make any adjustments, with the possible exception of
During the forenoon, T m came to m office and we chatted
about the matter in a very friendly fashion. H then suggested
that when he called Bob Stevens he say not only that the Board
would not consider any adjustments in the f i r s t two salaries, but
also was loathe to make any increases of senior officers (below

Mr. Marrlner S* Eccles


the f i r s t two) whose salaries were in the range of other Federal
Reserve Bank Presidents or First Vice Presidents* Biat, of course,
would meet entirely the objection to the form of the action taken
l a s t Friday*
I also told Ibm that I thought we had a great deal of
information here about a l l the officers above $10 thousand per
annum and that I thought i t was not so much a case of knowing more
about their duties as i t was our judgment as to the reasonableness
and propriety of adjustments proposed by the New York Bank and the
relationship of any proposed adjustment to others* Ibm did not
seem to think that we should rely entirely upon our own information
although he agreed that i t would be well for the Personnel Committee to have a session a day or so before anyone comes down from
New York and brief themselves with information to be supplied by
Smead, Nelson, or Leonard*
Ibm also told me that Snyder had called him this morning
about Southard, stating that he would not stand in the way of our
obtaining Southard's services but wanted to ask a favor in connection with i t . He said that the Treasury is under t e r r i f i c diffi~
culty at the present time in obtaining men from private business or
from universities to serve a t the Treasury for the reason that they
a l l naturally feel that next November might witness a change which
would mean that they would, in a l l liklihood, be replaced after the
f i r s t of the year* He therefore asked whether or not we would be
willing in the event Southard came to the Board to allow him to
divide his time between the Board and the Treasury, with the understanding, of course, that he would be a permanent employee of the
Board and carried on our regular payroll* T m had already spoken
to Spike who i s heartily in favor of such an arrangement, and I told
him that I would also favor i t although there i s plenty of wor*c for
such a man to represent a single agency. He was going to speak to
Matt and the others and then report back to Snyder,
Ihe weather continues hot here* A brief thunder shower
cooled i t off a l i t t l e at the Burning Tree area l a s t evening* 94°
i s predicted for today and continued warm for tomorrow*
Please give m best to the whole gang.
Will keep you advised as to whether I go out to Denver on
July 17.

Yours sincerely,