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GO VE R NORS C O NF E R E NC E May 27 and 28, 1935 Washington, D. C. F i r s t D a y ' s S e s 9 i o n , Monday, May27 Afternoon The m e e t i n g was c a l l e d to o r d e r at 2:35 p. m. Governors Young, H a r r i s o n , N o r r i s , Fleming, Seay, Newton, S c h u l l e r , M a r t i n , Geery, Hamilton, McKinney, and Deputy Governor Dey. Present: Mr. S t r a t e r , S e c r e t o r y . In t h e a b s e n c e of Governor C a l k i n s , Chairman of t h e C o n f e r e n c e , it was VOTED t h a t Governor H a r r i s o n be a p p o i n t e d C h a i r man P r o Tom. TOPIC - nrscouNT RATES NEW YORK The Board' s l e t t e r X-9194, which was s e n t to e a c h of t h e r e s e r v e banks on Moy 2, 1935, was g i v e n c o n s i d c r n t i o n . In c o n n e c t i o n w i t h t h i s t o p i c t h e r e f o l l o w e d c g e n e r a l d i s c u s s i o n of t h e e f f e c t of p r e s e n t r a t e s on b u s i n e s s c o n d i t i o n s , and it was t h e s e n s e of t h e C o n f e r e n c e t h a t w i t h t h e l o a n s and d i s c o u n t s in t h e Reserve System, and in t h o member banks os w e l l , at t h o i r p r e s e n t l o w l e v e l , t h e d i s c o u n t r a t e s were not a d e f i n i t e f a c t o r in t h e r e c o v e r y program, and would not be u n t i l t h e r e was e v i d e n c e of a marked improvement in b u s i - • ness conditions. action. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The t o p i c rrns t h c r c f c : r c p n s s e d without - 2 - • TOPIC - PROBLEM OF FUTJIBj_QQNTROL OF NEW YORK EXCESS RESERVES. After a g e n e r a l d i s c u s s i o n , it was VOTED to be t h e s e n s e of t h e Conference t h a t no a c t i o n is n e c e s s a r y or a d v i s a b l e at t h i s time, but t h a t t h e p r o b l e m of c o n t r o l l i n g excess r e s e r v e s is one which will r e q u i r e t h o utmost courage and i n g e n u i t y when t h e time comes f o r action. It was g e n e r a l l y conceded t h a t whatever a c t i o n on t h e p a r t of t h o Reserve S y s t e m is determined upon s h o u l d be t a k e n well in advance of any c r e d i t i n f l a t i o n a r y tendency, and t h a t a c t i o n s h o u l d not be p o s t p o n e d u n t i l s t a t i s t i c s i n - d i c a t e a d e f i n i t e t r e n d toward s u c h i n f l a t i o n . TOPIC - FOREIGN EXCHANGES AND GOLD MOVEMENTS. s t a b i l i z a t i o n . NEW YORK 3. . _Monetary_ Governor H a r r i s o n d i s c u s s e d b r i e f l y t h e c u r r e n t developments in f o r e i g n exchanges and t h o general t r e n d of g o l d and s i l v e r movements, and a l s o t h e general problems of monetary s t a b i l i z a t i o n in f o r e i g n c o u n t r i e s . It was under- s t o o d t h a t Governor H a r r i s o n would s e n d a moraorcndum on onch of t h e s e s u b j e c t s to e a c h member of t h e Conference. TOPIC - RE-OPENING OF PRIVATE CAPITAL MARKET. I. s e c u r i t y u n d e r w r i t i n g by banks. 2. . 2. _Refunding. New issues. NEW YORK Governor H a r r i s o n d i s c u s s e d w i t h t h e Conference what has been d e v e l o p i n g in t h e c a p i t a l market w i t h r e s p e c t to t h e r e f u n d i n g of maturing i s s u e s and t h e s a l e of new i s s u e s , and e x p r e s s e d t h e o p i n i o n t h a t excess r e s e r v e s , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • - 3 - r e g a r d l e s s of how h i g h t h e y may become, w i l l not make f o r a s a t i s f a c t o r y r e - o p e n i n g of t h e p r i v a t e c a p i t a l market unt i l c o n f i d e n c e is more f u l l y r e s t o r e d . At 3: 4 p. m. Governor H a r r i s o n l e f t t h e meeting and Governor N o r r i s t o o k t h e Chair. TOPIC - FULL REIMBURSEMENT FOR ALL FISCAL AGENCY OPERATIONS INCLUDING RE.:. CONSTRUCTION FINANCE CORPORATION SPACE IN BUILDINGS. CHICAGO 1. Report of Committee on Reimbursable Expense. Inasmuch as t h i s whole q u e s t i o n is adequately c o v e r e d in a r e p o r t of t h e Committee on Reimbursable Expense, • Governor Fleming, Chairman of t h a t committee, r e a d i t s rep o r t to t h e Conference. Governor Fleming e x p l a i n e d t h a t t h e s c o p e of a u t h o r i t y of t h e committee a p p o i n t e d at a Conf e r e n c e of Governors h e l d in October, 1933, was a p p a r e n t l y l i m i t e d to F i s c e l Agency o p e r a t i o n s and t h e reimbursement by t h e T r e a s u r y of expenses in c o n n e c t i o n t h e r e w i t h . S i n c e t h e appointment of t h e committee, operat i o n s f o r o t h e r i n s t r u m e n t a l i t i e s of t h e government have become so l a r g e t h a t a number of t h e Federal Reserve banks have r e f e r r e d t h e m a t t e r of reimbursement f o r n e c e s s a r y expenses in c o n n e c t i o n w i t h o p e r a t i o n s f o r t h e s e a g e n c i e s to t h e committee, and t h e committee' s work has been done as t h o u g h i t s s c o p e of a u t h o r i t y i n c l u d e d expenses i n c i d e n t to • t h e o p e r a t i o n s of o t h e r i n s t r u m e n t a l i t i e s of t h e government as well as f o r t h e Treasury. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 4 The committee, in i t s r e p o r t , r e q u e s t e d t h a t t h i s Conference c o n f i r m t h e work which it of developments s i n c e it t h a t if has done as a r e s u l t was a p p o i n t e d in October, 1933, and t h e r e p o r t mot w i t h t h o approval of t h e Conference, t h e committee r e q u e s t e d t h a t it be a u t h o r i z e d to appoint a subcommittee of not l e s s t h a n e i g h t , one of whom s h a l l b o a r e p r e s e n t a t i v e of t h e s t a f f of t h e Federal Reserve Board, to r e v i s e t h e manual of F o r m E so t h a t it w i l l i n c l u d e methods of d e t e r m i n i n g expenses which a r e r e i m b u r s a b l e f r o m t h e T r e a s u r y nnd f r o m o t h e r i n s t r u m e n t a l i t i e s of t h e government as well, in accordance w i t h t h e p r i n c i p l e s s e t f o r t h in t h e " P l a n f o r Computing Expenses of F u n c t i o n s and Units of t h e Federal Reserve Banks Which Are or May Become Reimbursable," dated May 16, 1934. The committee f u r t h e r r e q u e s t e d t h a t upon t h e approval by t h e Committee on Reimbursable Expense of t h e r e v i s e d manual, which w i l l be s u b m i t t e d by t h o proposed subcommittee, t h o r e v i s e d manual s h a l l become t h e manual of c o s t a c c o u n t i n g f o r a l l Federal Reserve b u n k s and s h a l l be used as a b a s i s f o r a r r i v i n g at t h e amount of r e i m b u r s a b l e expenses. After a general d i s c u s s i o n , it was VOTED t h a t t h e r e p o r t of t h e Committee on Reimb u r s a b l e Expenses be accepted, and t h a t t h e work done by t h e committee be r a t i f i e d and approved; • t h e committee is https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and f u r t h e r , t h a t a u t h o r i z e d to a p p o i n t a subcommittee f o r • - 5 t h e purposes o u t l i n e d in t h e r e p o r t ; and f u r t h e r t h a t , t h e Committee on Reimbursable Expense be, and it i s , given f u l l a u t h o r i t y to a c c e p t t h e r e p o r t of t h e subcommittee and to a c t t h e r e o n , s u c h a c t i o n to be t h e same as though t a k e n by t h i s Conference. . IQPIC - EXECUTIVE OFFICERS IN FEDERAL RESERVE BANKS BE GIVEN WIDER LAT> ITUDE IN ALLOWING SALARY IN ADVANCE TO EMPLOYEES SEVERING THEIR CONNECTION WITH THE BANK. CHICAGO Governor S c h a l l e r e x p l a i n e d t h a t t h e Chicago r e s e r v e bank was c o n f r o n t e d by a d i f f i c u l t p r o b l e m because it f e l t it n e c e s s a r y , in o r d e r to e f f e c t economies in s a l a r y e x p e n d i t u r e s , to r e l e a s e some employees who have been in i t s s e r v i c e f o r u c o n s i d e r a b l e timo. of c o u r s e , S u c h employees, be g i v e n r e a s o n a b l e advance n o t i c e . would, However, it was h i s o p i n i o n t h a t as s o o n as t h e s e employees were g i v e n n o t i c e , t h e i r v a l u e and u s e f u l n e s s would be s e r i o u s l y i m p a i r ed. It was t h e f e e l i n g of t h e Governors t h a t t h e p r o b l e m would be g r e a t l y s i m p l i f i e d if t h e r e s e r v e banks were p e r m i t t e d , in some c a s e s , to pay s e v e r a l months' r e g u l a r s a l a r y in l i e u of advance n o t i c e of d i s m i s s a l where immediate d i s m i s s a l would o t h e r w i s e be a s e v e r e h a r d s h i p upon t h e employees a f f e c t e d . A g e n e r a l d i s c u s s i o n of t h i s t o p i c brought out • t h e f a c t t h a t some of t h e o t h e r Federal Reserve banks were https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 6 - • f a c e d w i t h t h e same p r o b l e m in v a r y i n g d e g r e e , and t h a t it would be v e r y h e l p f u l , and more economical in t h e l o n g e r view, if t h e Boards of D i r e c t o r s , or t h e E x e c u t i v e O f f i c e r s , were p e r m i t t e d some l a t i t u d e in t h e payment of c o m p e n s a t i o n f o r l i m i t e d p e r i o d s to employees whom it might become nec- e s s a r y to d i s m i s s f r o m t h e s e r v i c e , t h r o u g h no f a u l t of t h e i r own, because t h e y were no l o n g e r needed. VOTED t h a t it is It was t h e s e n s e of t h e C o n f e r e n c e of Governors t h a t t h o Bonrds of D i r e c t o r s of t h e F e d e r a l Res e r v e banks s h o u l d be p e r m i t t e d , in t h e i r d i s c r e t i o n , to pay up to s i x months' s n l n r y to o f f i c e r s or employees upon their involuntary separation f r o m the service. TOPIC - ACTION BY FEDERAL RESERVE BOARD ON REPORT OF GOVERNORS' CONFERENCE UNDER DATE OF FEBRUARY 2, 1935, CONCERNING_ CHANGE FROM MORSE TO TELETYPE SYSTEM IN OUR INTER-BANK COMMUNICATIONS. CHICAGO Governor S c h u l l e r r e f e r r e d to a l e t t e r a d d r e s s e d to him, under d a t e of May 7, 1935, by t h e S e c r e t a r y of t h e F e d e r a l Reserve Board, commenting upon t h e recommendations of t h e Leased Wire Committee c o n t a i n e d in i t s r e p o r t d a t e d November 3, 1934, which was a p p r o v e d by t h e G o v e r n o r s ' C o n f e r e n c e at i t s meeting in Washington on F e b r u a r y 5, 1935, in which c e r t a i n changes a r e recommended in t h e opera t i o n s of t h e L e a s e d Wire System. • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a - 7 - Governor S c h u l l e r commented p a r t i c u l a r l y upon t h e o b j e c t i o n s r a i s e d a g a i n s t t h e u s e of t h e T e l e t y p e Syst e m and t h e s t a t e m e n t t h a t t h e F e d e r a l Reserve Board f e l t t h a t b e f o r e a n y t h i n g is done, a d e t e r m i n a t i o n s h o u l d be made by t h e Lensed Wire Committee, f r o m t h e s t a n d p o i n t of t h e S y s t e m as a whole, as to t h e t y p e of machines which s h o u l d be used; page machine. t h e two t y p e s b e i n g a t a p e machine and a Mr. M o r r i l l a l s o s u g g e s t e d in h i s l e t t e r t h a t t h e committee g i v e s p e c i a l c o n s i d e r a t i o n t o , and submit, a recommendation as to t h o p o l i c y which s h o u l d be f o l lowed in r e g a r d to t h e personnel p r o b l e m in t h e event t h a t T e l e t y p e machines a r e i n s t a l l e d . After g e n e r a l d i s c u s s i o n , it was u n d e r s t o o d t h a t Governor S c h u l l e r w i l l s e n d to e a c h of t h e Governors a copy of t h e l o t t e r f r o m t h e S e c r e t a r y of t h e Federal Reserve Board, d a t e d May 7, 1935, t o g e t h e r w i t h a memorandum prepared in t h e Federal Reserve Bunk of Chicago, w i t h r e s p e c t to t h i s problem, and t h a t as Chairman of t h e Leased Wire Comm i t t e e he will endeavor to r e c o n c i l e d i v e r g e n t views in o r d e r , if p o s s i b l e , to o b t a i n an agreement as to t h e use of T e l e t y p e machines; and f a i l i n g in t h i s , a n o t h e r r e p o r t by t h e Leased Wire Committee on t h i s s u b j e c t be s u b m i t t e d to t h e next Governors! Conference. Governor H a r r i s o n r e t u r n e d at 4 : 5 5 p. m., and • at h i s r e q u e s t Governor N o r r i s c o n t i n u e d in t h e Chair. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 8 - • T O P I C - D E S I R A B I LI TY OF RETIREMENT SYSTEM OF FEDERAL RESERVE BANKS INCLUDI N G FI R S T MORTGAGE REaL ESTATE LOANS IN I T S INVESTMENTS AND AD= VI S A B I LI TY OF RESERVE BANKS MAKI N G "N D S E R V I C I N G SUCH LOANS ORIGIN1 TI NG IN THEIR RESPECTIVE DI ST R I C T S UNDER AGREEMENT BETWEEN RETIREMENT SYSTEM , N D RESERVE BANKS. This t o p i c was p l a c e d on t h i s p r o g r a m by GovIt e r n o r McKinney of t h e F e d e r a l Reserve Bank of D a l l a s . was u n d e r s t o o d t h a t t h i s was in a f f e c t a r e q u e s t f r o m t h e chairman of a committee a p p o i n t e d by t h e Board of T r u s t e e s of t h e Retirement S y s t e m to o b t a i n t h e views of Governors of F e d e r a l Reserve banks, f i r s t as to t h e d e s i r a b i l i t y of i n v e s t i n g t h e funds of t h o Retirement S y s t e m in r e a l e s t a t e mortgages, and s e c o n d as to whether t h e Federal Reserve banks would be w i l l i n g to s e l e c t and s e r v i c e s u c h l o a n s . After g e n e r a l d i s c c u s i o n , it was VOTED t h n t t h o Governors• Conference s e e s no o b j e c t i o n to t h e i n v e s t m e n t by t h e t r u s t e e s of t h e R e t i r e ment S y s t e m of r e a s o n a b l e p r o p o r t i o n of t h e Retirement System' s f u n d s in f i r s t mortgages on r e a l e s t a t e , provided proper n a c h i n e r y c a n be s e t up to s e l e c t and s e r v i c e them, and t h a t it is t h o s e n s e of t h e Conference t h a t w h i l e t h e Federal Reserve bunks c o u l d , and would, c o n t r i b u t e a n y i n f o r m a t i o n in t h e i r power, t h e y can not bo e x p e c t e d at time to s e l e c t or s e r v i c e s u c h mortgages. •· https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis this - 9 • TOPIC - GENERAL DISCUSSION OF THE PRACTICABILITY, OF HOLDING DIRECTORS' MEETINGS AT FEDERAL RESERVE BANKS ON THE SAME DATE, ESPECIALLY AT THOSE BANKS HaVING REPRESENTATION ON EXECUTIVE COMMITTEE OF FEDERAL BOSTON OPEN MARKET COMMITTEE. Governor Young e x p r e s s e d t h e o p i n i o n t h a t it was f r e q u e n t l y a somewhat d i f f i c u l t mutter to get t h e members of t h o Executive Committee of t h e Federal Open Market Committ e e t o g e t h e r at i m p o r t a n t meetings, due to t h e f a c t t h a t meetings of t h e Boards of D i r e c t o r s , or of t h e E x e c u t i v e Committees, of t h e Federal Reserve banks were h e l d on d i f f e r e n t days, and s u g g e s t e d t h a t it would g r e a t l y f a c i l i t a t e t h e h o l d i n g of meetings of t h e Federal Open Market Executive Committee if arrangements c o u l d be made whereby Board meet- i n g s and E x e c u t i v e Committee meetings at those banks r e p r e s e n t e d on t h e Federal Open Market E x e c u t i v e Committee would be h e l d on t h e same d a y of t h e week. s i o n , it After g e n e r a l d i s c u s - was VOTED to be t h e s e n s e of t h e Conference t h a t if s u c h arrangements o r e p r a c t i c a b l e and t h e y c a n be conven i e n t l y made at t h e s e v e r a l banks r e p r e s e n t e d on t h e Federal Open Market E x e c u t i v e Committee, c o n s i d e r a t i o n s h o u l d be g i v e n to Governor Young' s s u g g e s t i o n . It was u n d e r s t o o d t h a t as a general t h i n g Thursday was probably t h e day t h a t would l e a s t i n t e r f e r e w i t h meetings of t h e Federal Open Market Executive Committee. • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • - 1- TOPIC - UNIFORM MEDICAL EXAMINATION OF EMPLOYEES AT FEDERAL RESERVE BOARD AND FEDERAL RESERVE BANKS AND BRANCHES. ( Report of Retirement Committee of Federal NEW YORK Reserve Banks. ) After d i s c u s s i o n , it was VOTED t h a t t h e r e p o r t of t h e Retirement Committee be approved and c o n c u r r e d i n . TOPIC - DESIRABILITY OF UNIFORM ACTION IN HANDLING BILL_OE LADING DRAFTS COVERING INTERSTATE LIQUOR SHIPMENTS RECEIVED FOR COLLECTIQN. ( See Federal Reserve Board' s DALLAS l e t t e r - 9 1 8 8. ) The Federal Reserve Board' s l e t t e r X-9188, of April 26, 1935, c a l l s a t t e n t i o n to t h e p r o v i s i o n s of Sect i o n 239 of t h e Criminal Code of t h e United S t a t e s , which makes it unlawful f o r a r a i l r o a d company, or e x p r e s s com- pany, or o t h e r p e r s o n in c o n n e c t i o n w i t h t h e t r a n s p o r t a t i o n of i n t o x i c a t i n g l i q u o r in i n t e r s t a t e commerce, to c o l l e c t t h e purchase p r i c e t h e r e o f , or net as t h e agent f o r t h o buyer, or t h e s e l l e r , f o r t h e purpose or buying, or s e l l ing, or completing t h e s a l e t h e r e o f . Counsel f o r some of t h e Federal Reserve bunks have i n d i c a t e d t h a t t h e r e a r c c o n f l i c t i n g d e c i s i o n s in some or t h o s t a t e s , and t h a t in some c a s e s , d r a f t s w i t h b i l l s of l a d i n g a t t a c h e d c o v e r i n g i n t e r s t a t e shipments of l i q u o r , n i g h t be handled without coming under t h e p e n a l t i e s imposed • by t h e Criminal Code. It was f e l t t h a t d r a f t s without b i l l s of l a d i n g a t t a h c e d , drawn in s e t t l e m e n t of l i q u o r shipments c o u l d a l s o be handled without coming under t h e https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • - 11 - p e n a l t i e s imposed by t h e C r i n i n u l Cede. c u s s i o n , it After general d i s - was VOTED to be t h o s e n s e of t h e C o n f e r e n c e t h a t u n t i l t h e p r o v i s i o n s of S e c t i o n 239 of t h e Criminal Coclc ·'·J•c r e p e a l e d , or a p p r o p r i a t e l y amended, t h e F e d e r a l R e s e r v e banks s h o u l d d e c l i n e to h a n d l e d r a f t s w i t h b i l l s of l a d i n g a t t a c h eel, c o v e r i n g in t c r s t a t e l i q u o r s h i p m e n t s whenever t h e b i l l to be s u r r e n d e r e d upon payment or ac- of l a d i n g a t t a c h e d is c e p t a n c e of t h e d r a f t . T O P I C _ - D E SI R A B I LI TY OF U N I F O R M PROCEDURE • IN HANDLING TELEGRAPHIC TRANSFERS OF BANK BALANCES IN ROUND AMOUNTS FOR ACCOUNT OF NONMEMBER CLEARING BANKS OVER COMMERCIAL WIRES AT EXPENSE OF SUCH BANKS. DALLAS Governor McKinney e x p l a i n e d t h a t under t h e proced u r e now in e f f e c t , F e d e r a l R e s e r v e banks a r e p r o h i b i t e d f r o m h a n d l i n g t e l e g r a p h i c t r a n s f e r s of f u n d s t o , or from, nonmember c l e a r i n g banks. t h e D a l l a s bank, He a l s o s t a t e d t h a t in t h e o p i n i o n of p e r m i s s i o n to makes t h e s e t r a n s f e r s would be a g r e a t c o n v e n i e n c e to nonnember banks, and t h a t ho f e l t t h e y s h o u l d be g r a n t e d t h e same p r i v i l e g e s w i t h r e s p e c t to t e l e g r a p h i c t r a n s f e r s of f u n d s as was a c c o r ] ed to member banks. A f t e r g e n e r a l d i s c u s s i o n , in v i e w of t h e f a c t t h a t t h i s whole q u e s t i o n has been s t u d i e d by t h e S t a n d i n g Committee on C o l l e c t i o n s , and in v i e w of t h e f a c t t h a t com- m i t t e e had p r e v i o u s l y node s p e c i f i c recommendations, it https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis was • - 12 - VOTED t h a t t h e q u e s t i o n of t c l e g r n p h i c t r a n s fers for the c co un t of non mcmb or c l e a r i n g banks, commercial w i r e s , at t h e i r expense, o ver be g i v e n f u r t h e r s t u d y ; by t h e S t a n d i n g C o m m i t t e e on C o l l e c t i o n s , a n d t h a t t h e com- mi t t o e s h o u l d p r e s e n t i t s r e p o r t a n d recommcndutiona to t h e Chairman of . tho Governors' Conference. A d j o u r nae d at m. 6 : 3 p . m. : to r e c o n v e n e at 1 on T u e s d a y , May 2 8 . S e c o n d D a y ' s S e s s i o n , Tuesday, May 28, 1 935 Meeting was c a l l e d to o r d e r at 1 : 5 o' c l o c k . • m. w i t h t h e same a t t e n d a n c e as at t h e p r e v i o u s day' s s e s s i o n . Governor H a r r i s o n p r e s i d e d . TOPIC - REPORT OF INSURANCE COMMITTEE The r e p o r t of t h e I n s u r a n c e Committee was s u b m i t t e d to t h e C o n f e r e n c e , and, a f t e r d i s c u s s i o n , it VOTED to a c c e p t a n d a p p r o v e wns the report. TOPIC - USE OF ORDINhRY bAIL FOR SHIPMENTG OF COUPONS, BONDS, SCRIP, STOCK CERTIFICATES, ETC.. _(See_Peder- al Begorve Board' s l e t t e r B - 1 6 3 of F e b r u a r y 2 6 , 1 9 5 5 l ) F. • BOARD A l e t t e r f r o m t h e S e c r e t o r y of t h o F e d e r a l R e s e r v e Board, d a t e d May 13, 1935, a d d r e s s e d to Governor C a l k i n s , Chairmon of t h e G o v e r n o r s ' C o n f u r c n c e , • to which was a t t a c h e d a memorandum c o n t a i n i n g e x c e r p t s f r o m r e p l i e s to t h e Board' s l e t t e r B - 1 6 3 of F e b r u a r y 26, 1935, was b r o u g h t to t h e n t t o n t l o n of t h e C o n f e r e n c e in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis o r d e r t h a t t h e q u e s t i o n might be - 13 d i s c u s s e d , as r e q u e s t e d by t h e S e c r e t a r y of t h e F e d e r a l Reserve Board. There f o l l o w e d a g e n e r a l d i s c u s s i o n of t h e a t t i t u d e of t h e postal authorities, us r e f l e c t e d in a lotter f r o m t h e T h i r d A s s i s t a n t P o s t m a s t e r G e n e r a l , a d d r e s s e d to t h e F e d e r a l R e s e r v e Board, d a t e d F e b r u a r y 1 4 , 1935; and w h i l e it was conceded t h a t t h e u s e of t h o o r d i n a r y mail f o r t r a n s m i t t i n g v a l u a b l e s of any c o n s i d e r a b l e amount, if it became a g e n e r a l p r a c t i c e , might r e s u l t in s u b s t a n t i a l l o s s e s , it was f e l t t h a t t h o h i g h s u r c h a r g e s e x a c t e d by t h e p o s t a l a u t h o r i t i e s on r e g i s t e r e d m a i l , j u s t i f i e d to some e x t e n t , t h e u s e of t h e o r d i n a r y m a i l s f o r t r a n s m i t t i n g val- • u a b l e s of t h i s n a t u r e , where t h e amount i n v o l v e d was r e l a t i v e l y small. While t h i s m u t t e r , in t h e o p i n i o n of t h e Governors, does not n e c e s s a r i l y r e q u i r e u n i f o r m i t y of act i o n on t h e p a r t of t h e F e d e r a l R e s e r v e banks, it was nev- ertheless VOTED t h a t t h i s C o n f e r e n c e approves t h e p r i n c i p l e t h a t money, s e c u r i t i e s , and o t h e r v a l u a b l e s s h o u l d be a d e q u a t e l y s a f e g u a r d e d by t h e u s e of r e g i s t e r e d mail f o r t r a n s m i t t a l , and t h a t e a c h F e d e r a l Reserve bank s h o u l d coo p e r a t e w i t h t h e p o s t a l a u t h o r i t i e s to d i s c o u r a g e t h e u s e of o r d i n a r y mail f o r t h e t r a n s m i t t a l of s u c h v a l u a b l e s . • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOPIC - ACTION OF THE BOARD OF TRUSTEES OF RETIREMENT SYSTEM OF THE FEDERAL RESERVE BANKS IN AMEND- ING THE RULES AND REGULATIONS OF THE RETIREMENT SYSTEM. Governors Fleming and Geery, b o t h members of t h e - 14 Board of T r u s t e e s of t h e R e t i r e m e n t System, d i s c u s s e d w i t h t h e C o n f e r e n c e c e r t a i n amendments to t h e Rules and Regulat i o n s of t h e R e t i r e m e n t S y s t e m of F e d e r a l R e s e r v e Bunks, a d o p t e d by t h e Boord of T r u s t e e s at i t s annual m e e t i n g on April 16, 1935, s u b j e c t to t h e a p p r o v a l of t h e F e d e r a l Res e r v e Board. It was u n d e r s t o o d t h a t a l t h o u g h t h e Rules and R e g u l a t i o n s of t h e Retirement S y s t e m were s u b j e c t to amendment by t h e Board of Trustees and become e f f e c t i v e upon t h o a p p r o v a l by t h e F e d e r a l R e s e r v e Board, n e v e r t h e l e s s , in v i e w of t h e l a r g e c o n t r i b u t i o n s made by t h e r e s e r v e banks to t h e r e t i r e m e n t f u n d , s u c h amendments were of p a r t i c u l a r i n t e r e s t • to t h e r e s e r v e banks a l s o . A f t e r g e n e r a l d i s c u s s i o n , it was VOTED t h a t t h e C o n f e r e n c e c o n c u r s in t h e amendments as made by t h e Board of T r u s t e e s , a n d a p p r o v e d by t h e F e d e r a l R e s e r v e Board. TOPIQ_-· KEEPING 1'" DESCRIPTION OF' SHIPMENTS OF NEW CURRENCY SENT THROUGH THE MAILS AND INCLUDING SOME NEW CURRENCY IN ALL SHIPMENTS. _(See F e d e r a l Reserve Board' s l e t t e r X - 9 1 62 of M a r c h 22, 1935.) F. R. BOARD At t h e r e q u e s t of t h e F e d e r a l R e s e r v e Board, t h e l e t t e r r e f e r r e d t o w n s discussed, together with the request of t h e T h i r d A s s i s t a n t P o s t m a s t e r G e n e r a l ; a n d it t h a t it • was t h e u n i f o r m p r a c t i c e of a l l of t h e r e s e r v e banks to k e e p a r e c o r d of t h e s e r i a l numbers, r e s p e c t to n e w b i l l s , whenever it https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis developed is particularly with p o s s i b l e to do so. - 15 - TOPIC - DISCUSSION OF DESIRABILITY OF P E R M I T T I N G BANK GUARDS TO TAKE ADVANTAGE OF THE SPECIAL RETIREMENT BENEFITS OF THE R E T I R E MENT SYSTEii 4T AGE 5. KANSAS CI TY Because of t h e s p e c i a l c h a r a c t e r of t h o s e r v i c e r e n d e r e d by bank g u a r d s , and t h o p r o b a b i l i t y t h a t t h e i r usef u l n e s s and e f f e c t i v e n e s s in many c a s e s w i l l become pro- g r e s s i v e l y l e s s f r o m y e a r to year a f t e r t h e y have a t t a i n e d age 5, it was t h e g e n e r a l o p i n i o n of t h e Governors t h a t men of t h i s c a l i b e r , who have s p e n t many y e a r s in t h e g u a r d s e r v i c e , would not be t e m p e r a m e n t a l l y , or by r e a s o n of p a s t e x p e r i e n c e , a b l e to a c c e p t c l e r i c a l p o s i t i o n s ; and t h a t in o r d e r to k e e p t h e e f f i c i e n c y of t h e g u a r d o r g a n i z a t i o n at maximum, it would be h i g h l y d e s i r a b l e if a some arrangement c o u l d be made whereby g u a r d s might be r e t i r e d at an age s u b s t a n t i a l l y under t h a t p r o v i d e d in t h e Rules and Regulat i o n s of t h e R e t i r e m e n t System, as amended. It was VOTED t h a t t h e S e c r e t a r y be i n s t r u c t e d to b r i n g t h i s m a t t e r to t h e a t t e n t i o n of t h e R e t i r e m e n t Committee of t h e R e t i r e m e n t S y s t e m and r e q u e s t t h a t f u r t h e r c o n s i d e r a t i o n be g i v e n to t h e p o s s i b i l i t y of d e v e l o p i n g some p l a n to this end, w i t h a p r o v i s i o n f o r payment of a n y a d d i t i o n a l c o s t s by t h o employing bank. Adjourned at 1 1 : 3 a. m. to r e c o n v e n e immediate- ly w i t h t h e members of t h e F e d e r a l Reserve Board and i t s staff. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H. F. STRATER Secretary.
@FedFRASER