The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BOARD 265 WASHINGTON February 18., 1922. X-3335 SUBJECT: Annual Election of Officers and Approval of Salaries by Federal Reserve Board. Dear Sir: Some of the Federal Reserve Banks have apparently overlooked the Board's instructions of December 23, 1915 and January 6, 1916, regarding the annual election by the directors of all officers and the approval of their salaries annually by the Federal Reserve Board. The Board understands that all officers are annually elected by the Board of Directors .. but in some cases salaries have not been submitted for the Board's approval~ upon the theory, the Board assumes .. that it is not necessary to do so in cases where no changes have been made in the salaries. I enclose copies of the Board's letters above referred to and would state that the Board desires to have submitted to it for approval all salaries voted by the Board of Directors-to officers for the year 1922. Very truly yours, G o v e r n o r. Enclosures : X-3335a & 487. TO CHAiliEN OF ALL F.R.3ANKS c 0 p y December 23~1915. X-3335a I S I R: ' ' ,, The question has been brought before the Federal Reserve Board from various so..1rces whether the officers and employees of Federal R~serve Sanks are to have a definite tenure of office, or are to hold office subject to the pleasure of their boards of directors. Investigation shows that there is a lack of uniformity in the by-laws of the several banks on this subject, and that r.. o definite action has thus far been taken as regards the Board's own relation to the matter. I am, therefore, instructed to advise you that the Federal Reserve Joard has determined to ask the several banks to submit to it each and every year, as of Janua~y 1, their lists of officers and el:lployees, v>'ith salaries for approval, such action to be a reatter of regular routine, involving a preceding annual action on the part of each board of directors in electinb or re-electing officers and employees for another year. It is also suggested that (in the course of each such year) the officers and employees of each bank shall be co •• sidered to hold their appointments for the calendar year and subject to the pleasure of the boards of directors of such oank. Respectfully~ (Sit;necl) H~ Parker iJillis, · Secretary. r.~.,~-1 I' , , ' • S i r Your l3ttor of Jc:·:nuetry third was subrr.itted to the Board) and ,,. I am directed to s"'-7 to you tilc:.t the Board is in accord oiiith the vie·Ns f expressed therein. As you stated) the real point is that the list of all salaries should be subrr.itted to the Board once a ye&r for its approval 1 and the month of January -,vould seem to be the natural tirr.e for such apl)roval as th:..t is the usual month -,,hen changes in salaries are made. The Board does not wish to convey the idea that it desires that all clerks should have definite terms of office. These ap- pointments may be for an indefinite term provided thay are terminable at the pleasure of the Board of Directors of the Bank. While the gener.;,l custom is that clerks are ap:lointecl by the officers of the ba::1k, the officers 1 senior and junior 1 as a rule 1 are appointed or elected by the Board of Directors of the Bank) generally to serve for the ensuing year. It would appec..r) therefore 1 that this gener::-.1 practice ought to be observed also by the Federal Reserve banks r.nd senior and junior off icars ought to be appointed f rorr. year to year and their salar.ies ~ as all othe_rs 1 _ should be_ dUb }ect to c'cnnuc..l approval by ti1e Federal Reserve Board. Very truly yours 1
@FedFRASER