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609 A meeting of the Board of Governors of the Federal Reserve System wee h eld in V.ashington on Tuesday, April 20, 1943, et 11:00 a.m. PRESENT: Mr. Eccles, Chairman Mr. YcKee Lir. Draper Mr. Mr. Mr. Mr. The Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman action stated with respect to each of the matters herein- "terreterred to was taken by the Board: On the afternoon of April 16 Messrs. Eccles, McKee, Draper, 5'.118 (the members of the Board who were in Washington), Morrill, Clayton, 13.4 t"nard d iscussed informally the question of policy with respect to tth l‘equests for deferment from military service of employees of the Of GOVernors. Pt that time the whole matter was discussed at the light of the experience of the Board in connection with 1.414vi dlial cases that had been considered and also in the light of the Dericii4" ees of Martin Krost and Kenneth Villiams, Senior Economists 14 the 1)-vielon of Research and Statistics. During the discussion, Mr. 1 celled attention to the fact that the Board had approved requests ter the Re8ectr cleterment of Paul Simpson, Iunior Economist in the Division of eh and S tatistics, end Howard Hackley, Attorney in the Legal Divithat in ve n case of Paul Simpson the request had been disapproved, 't1(1 thEit the case eiori of Howard Hackley was still pending. ir It was the consensus of the members of the Board present that e'4.141-Ither recuests for deferment were made they should be restricted 610 4/20/43 -2aa much as posible (not to exceed three or four in number), and it was 1" tood that ChLirman Eccles would discuss the matter with Mcs5rs. Krost and and inform the Board's Committee on Deferment whether l'equests should bC made for the deferment of either or both of these ernPloyees. 1. grost informed Chairman Eccles that he did not wish to be cleferre- . and Williams stated that a re:Jiest for his defermont would be agreeable to Mr.im h. •Thereupon Chairman Eccles discussed the matterr flather th rs. McKee, Draf;er, and Evans and suggested that the d"c'rrnent, be reciuested, one the three memb,rs of the ''°`11"( en ncurr(4 in th.- t suFre Lion on the bqsis of the r,osition taKen 13'"nairnr' -n Lecies and i. Goldenweiser, Director of the Divi,ion of and S that Latistic,, that Mr. Williams occupied a Key position and his services were essential. It i;:ras agreed unanimously that the Committee on Deferment should make a request for the deferment of Mr. williams accordance with the :_irocedure es6ab-lashed by the Executive Order issued by the President under date of librch 6, 1943. Memorandum dated April 17, 1943, from ir. Goldenweisc-r, Direc- ()1' ()I1 the :Division of Hesearch and Statistics, submitting the resignatiorl of lArs. GlInhild Anderson enny as an Associate EconomiA in that Livict3/1, to bec,ome effective as of the close of business on Lay 8, 1943, 'Ilcil'ecommendinp that the resignation be accepted as of that c:ate. The resignation was accepted. the Lettep dated. April 1' 1943, addressed to Mr. omead, Chief of 41,• lsion of 'ank Operations, by Zelpha Cron, submitting her 611 4/2o/43 r'e8iMotion as a clerk in that Division, become effective as of the cicee of businee: on April 30, 1943. Mr. Swead had noted on the letter tl t he r ecommended acceptance of the resignation. The resignation was accepted, with the understanding that either an appropriate deduction would be made by the Board from Mrs. Cronts salary, or a refund made by Mrs. Cron to the Board, for nine days and six hours of unearned annual leave. Letter to Mr. Paddock, President of the Lederal Re. erve Bank of (3.ston rec.ding as follows: A,"In contained in your letter of)1.,ori1 accordnce with the reeuest 14, 1943, the Board approves the designation of the a6 suecial asAstant e.xaminers for the Federal Rez), ye lank of Boston: Robert Lyle ililton C. Aborn H. Leland Atkinson Edward Ilartin Kenneth M. Nute Leo A. Dinsmore William V. Reegan Eldon F. Everett Charles P. Reidy, Jr. o‘arren K. Hadley Stanley Rupert John F. Alderry Jasper A. Lane John F. Sullivan" Approved unanimously. Letter to lir. Flemin, President of the Federal Reserve Bank of elevpi and reP.6ing as follovs: ter "In accordance with the recAuest contAnod in your letof o 1 1l 15, 1943, the Board approvcs the ap7ointment R. Gladden as an assistant examiner for the Federas da;"eserve Bank of Cleveland. Please advise us of the Of :,11Pon which the appointment becomes effective and also ilue salary rate." AlDproved unanimously. Lettor to Mr. 1,.cLarin, President of the Federal Reserve Bank of ta 'reading as follows: 612 4/20 /43 "In accordance with your request the Board of Governors approves the changes in the Personnel Classification Plan of the Nashville Branch, as submitted with your letter of April 159 1943.11 Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, reading 48 follows. it "Referring to the Board's letter 5-521 of rune 30, 1942, to i8 requested that an additional item, shown belor, be added ,.... the form of application from financing institutions for antees made pursuant to Executive Order 9112: '13. If F substantial portion of the stock ?f the applicant for the loan or of the financing institution is controlled by the other, or a substantial portion of the stock of both is controlled bY the same interests, or if there are any officers or directors common to both, describe each such relationship briefly." Approved unanimously. lierlorandum dated iDril 16, 1943, from Mr. Paulger, Chief of the 41U81°4 of E xaminations, recommending that the budgets for the year 1943 the belik e xamination departments of the respective Federal Reserve be EIPProved as submitted by the Banks in the following amounts: Federal Reserve Bank 83,345 359,046 164,097 139,956 108,209 58,860 251,357 107,070 44,692 67,486 54,350 133,574 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Approved Amount unanimously. 613 4/20/43 -5Letter prepared for the signature of Chairman Eccles to Honorable Paui V. McNutt, Chairman of the War Manpower Commission, reading as follows: "On behalf of the Board of Governors of the Federal Re! el* "System, I request that the Federal Reserve Banks be 'eclared essential activities by the War Manpower Commission. "The Federal Reserve System was created by an Act of Conpr approved December 23, 1913 and the Federal Reserve Bank c 8 and the Board of Governors together constitute the rountryls central banking organization, a type of agency e°gnized in every modern nation as an arm of the Governs:nt. While the officers and employees of the Federal ReSee Banks are not Federal employees, they are employees te agencies whose activities in the fullest sense of the c_FT are necessary on the financial front for the proseftu'tlon of the war. More information with respect to the 13,../2ctione of the Reserve Banks is given in the attached -Lef memorandum. sit "The Board wishes to emphasize that the employment 1 t1°n of the Federal Reserve Banks is already extremely cri1:, theidleal' and the situation may well make it impossible for them to perform properly their functions so necessary to pown effort unless they are designated by the War Man' 'dommission as essential activities." j Approved unanimously. , Thereupon the meeting adjourned. APPr Chairman.
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