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319 X-7465 WHEREAS, c e r t a i n Federal r e s e r v e banks have h e r e t o f o r e made g e n e r a l or f l a t - r a t e r e d u c t i o n s i n t h e s a l a r i e s of t h e i r o f f i c e r s and employees, some i n connection with share-the-work p l a n s and others independently of such p l a n s ; WHEREAS, nation-wide e f f o r t s a r e now "being made t o encourage i n d u s t r i a l and "business i n t e r e s t s t o r a i s e s a l a r i e s and wages i n order t o i n c r e a s e the purchasing power of t h e people and thereby t o promote "business r e c o v e r y , a movement i n t h i s d i r e c t i o n i s a l r e a d y under way, and i t would "be well f o r t h e Federal r e s e r v e "banks t o p a r t i c i p a t e i n t h i s movement; WHEREAS, a l l of t h e Federal r e s e r v e "banks a r e o p e r a t i n g a t a p r o f i t , most of them having a l r e a d y r e a l i z e d s u f f i c i e n t net earnings t o pay t h e i r dividends f o r the f i r s t s i x months of 1933, and the aggregate n e t earnings of the twelve "banks a r e f a r i n excess of t h e i r aggregate dividend requirements; WHEREA.S, t h e Banking Act of 1933 amends Section 7 of t h e Federal Reserve Act so a s t o r e l i e v e the Federal r e s e r v e "banks of the n e c e s s i t y of paying any f r a n c h i s e t a x t o the Government, thus e l i m i n a t i n g any f i n a n c i a l i n t e r e s t of t h e Government i n t h e i r earnings; WHEREA.S, the increased d u t i e s devolving upon t h e Federal r e s e r v e "banks under l e g i s l a t i o n enacted during 1933, t o g e t h e r with t h e improvement i n "business c o n d i t i o n s , a r e r e s u l t i n g i n a subs t a n t i a l i n c r e a s e i n t h e volume of t h e i r work, thereby e l i m i n a t i n g t h e n e c e s s i t y of reducing the number of employees a t the v a r i o u s Federal r e s e r v e "banks, including those where a d d i t i o n a l employees were t a k e n on i n c a r r y i n g out the share-the-work p l a n s i n e f f e c t a t those "banks; WHEREAS, i t appears t h a t t h e cost of l i v i n g i s advancing; NOW, THEREFORE, BE IT RESOLVED, That t h e r e appears to "be no occasion f o r continuing i n e f f e c t t h e emergency r e d u c t i o n s i n s a l a r i e s of the o f f i c e r s and employees of t h e F e d e r a l r e s e r v e "banks; BE IT FURTHER RESOLVED, That i t i s t h e sense of t h e Federal Reserve Board t h a t t h e Board of D i r e c t o r s of each F e d e r a l r e s e r v e bank should give prompt c o n s i d e r a t i o n t o t e r m i n a t i n g t h e emergency r e d u c t i o n s i n the s a l a r i e s of t h e i r o f f i c e r s and employees, e f f e c t i v e J u l y 1, 1933, or a s soon t h e r e a f t e r a s i t i s p r a c t i c a b l e t o do so; BE IT FURTHER RESOLVED, That t h e Board's S e c r e t a r y be hereby i n s t r u c t e d t o t r a n s m i t a copy of t h i s r e s o l u t i o n to t h e Chairman of the Board of D i r e c t o r s of each F e d e r a l r e s e r v e bank and r e q u e s t him t o b r i n g i t t o the a t t e n t i o n of t h e Board of D i r e c t o r s a t i t s next meeting.
@FedFRASER