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604 A meeting of the Board of Governors of the Federal Reserve Syste a held in Washington on Monuay, April 19, 1943, at 11:00 a.m. PRESENT: Mr. Eccles, Chairman Mr. McKee Mr. Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinal%er referred to was taken by the Board: Uemorandum dated April 17, 1943, from Mr. Paulger, Chief of the 1)41-81.°11 of Ex aminations, recommending that John William Taylor be 411P°i4teci 48 an Assistant Federal Reserve Examiner on a temporary basis t(31'44 indefinite period, with basic salary at the rate of $2,400 per 41111144, anci with official headquarters at Minneapolis, Minnesota. By unanimous vote, Mr. John William Taylor was appointed on a temporary basis for an indefinite period as an examiner to examine Federal Reserve Banks, member banks of the Federal Reserve System, and corporations operating under the Provisions of sections 25 and 25(a) of the Federal Reserve Act, for all purposes of the Federal Reserve Act and of all other acts of Congress pertaining to examinations made by, for, or under the direction of the Board of Governors of the Federal Reserve System, and was designated as an Assistant Federal Reserve Examiner, with official headquarters at Minneapolis, Minnesota, and with basic salary at the rate of $2,400 per annum, all effective as of the date upon which he enters Upon the performance of his duties. 605 4/19/43 —2— ato Memorandum dated April 12, 1943, from Mr. Dreibelbis, General r ecommending that John C. Baumann, an Attorney in the Legal tivisi°11, be granted leave of absence without pay beginning April 20, 1943, so that he might enter active duty with the United States ArrnY, aricithat he be granted the benefits provided in the policy adopted by tileBoard on November 14, 1940, and amended August 20, 1941, for all eraPloyees entering military service. Approved unanimously. 4/111, Letter to mr. Fletcher, Vice President of the Federal Reserve Of ca eveland, reading as follows: ter "In accordance with the request contained in your let— cf GL r„APril 13, 1943, the Board approves the appointment ex.E. :'ge T. Quast, at present an assistant examiner, as an advi:Ler for the Federal Reserve Bank of Cleveland. Please efp ' e us of , - ective.11 the date upon which the appointment becomes Approved unanimously. ot Letter to Mr. McLarin, President of the Federal Reserve Bank kLla.nta, reading as follows: 1943 "Ackn owledgment is made of your letter of April 13, AtztiLtdvising the Board that Mr. J. E. Denmark, General artw:'42 was granted a leave of absence to enter the 15 10”rvices, effective at the close of business April and that Mr. Winslow E. Pike was appointed Act— leral Auditor, effective April 16, 1943. the n .'"n this connection, the Board of Governors approves atenent of salary to Mr. Pike, Acting General Auditor, Present '"4- 16 to Mayrate of“1000 per annum for the period 31, 1943." Approved unanimously. 606 4/19/43 -3Letter to Mr. Day, President of the Federal Reserve Bank of 811 Fr • ehelsco, reading as follows: ti "In view of the Executive Order issued April 8, no acean be taken with respect to the adjustments in salaries 3, °facers of your bank as proposed in your letter of April ti 1943/ until the situation is clarified by further regulab or statements of policy. We hope, and have reason to ie ' s leve, that these will be forthcoming shortly. Until there to clarification of policy, however, it is not possible even -Ll_cate what action the Board could or might take. or With respect to the proposed increases in the salaries t,ne allagIng Directors of the Los Angeles, Portland and Seat' 4_ -Le Branches, the Board agrees that the policy of increas174 the importance of the branches and the services rendered whoel !it highly desirable to have men in charge of a branch the Rave standing in the community and who can ably represent all aspects of the work as well as operate the q:nrcTieeltiient 1)4,4 However, the Board believes that the salaries to be otquto the officers in charge of the branches depend not it4Y. uPon the Position but also upon the abilities and qualfofations of the respective individuals. It is felt, therein'e, that any substantial increase in the salary of a manag44clirector of one of your branches should be due to individa ciTertt. That is to say, the increase should be based upon me2-c'ermination that the managing officer has risen to and enrs the r equirements and responsibilities called for by the geci Programan y dshould not be based alone upon a coneePtio tiorl 1, of what would be an appropriate salary for the posibrat ‘JY" reason of the increase in the importance of the tionch,c)1* in the services which it renders. In this connecbrarIL't is recalled that the managing directors of your !s have served in that capacity for many years. ariea 'efore considering the proposed increases in the sallike t°f the managing directors, therefore, the Board would collsidc have additional data in order that each case may be It wi reci on the basis of an individual merit adjustment. Propc7:-_,be appreciated, therefore, if you will review the in th-ekk increases in the salaries of the managing directors kentae light of these comments and submit such further cornto th anci suPporting data as you may feel would be helpful e Board in considering the matter." Approved unanimously. 607 4/19/43 -4Letter to Mr. Day, President of the Federal Reserve Bank of Pl'ateisco, reading as follows: d, 'This is in response to a letter of April 3, 1943, adL2ssed to the Board of Governors by the Peoples Bank of w°0d Village, a copy of which is enclosed, requesting 0'.i.tvice regarding the Board's objection to a proposed plan anization involving the Peoples Bank of Lakewood 14-Lage and two other banks. in "Each of these banks is already in existence and serva different community. The reorganization is to be 'ected by the two other banks under the charter of the absorption of People's Bank, with additional stockholders he„eillarged capitalization, and by the removal of the co'Lw4uarters of the Peoples Bank to Bellflower and the of the offices at Lakewood Village and Garden GrZT 4 Of i "It Will be recalled that in granting the application tihe e 4oples Bank for membership hi in the System, the Board Of wn,(wernors acted uoon representations to it that the !Dank c arized as a bona fide local independent institution, it was expected to be continued as such, for the ' 90se °f serving at that hi the needs of its community, which asl:e hadro bank. These representations were buttressed by purnnees and agreements signed by the stockholders for the 14,,-•`., g,„ — e of satisfying the Board that this status would be --"uained. Plan such as is now proposed, less than a year after these conj. assurances and agreements, is wholly beyond what was for'eMPlated by the Board when it approved the application fro, mellthership. The execution of such a plan would depalt the concept of the bank as a local independent instituOf and would materially impair or destroy the significance these assurances and agreements. co,„4„ ?lease --4-Lnglye ll inform the Peoples Bank of Lakewood Village acApproved unanimously, together with letters to Honorable Preston Delano and Leo T. Crowley, Comptroller of the Currency and Chairman of the Federal Deposit Insurance Corporation, respectively, transmitting copies of the above letter. ittt) UemOrand , I,-"Llum dated April 171 1943, from Mr. Dreibelbis, General r_e 0mmending that there be published in the May issue of the 608 4/19/43 _5Pede ral Reserve Bulletin statements in the form attached to the memoranfi ' 1411"rith respect to the following subjects; Amendment s to Federal Reserve Act War Loan Deposit Accounts Reserves Amendment to Regulation D War Loan Financing Guarantee Agreement National bank Loan Limitations POrei, *1.1 runds Control nevocation of Special Regulation Issued by l'ederal Reserve Bank of San Francisco Treasury Department Releases Approved unanimously. Thereupon the meeting adjourned. Chairman.
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