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628 A meeting of the Board of Governors of the Federal Reserve 8Yetem was held in Washington on Friday, April 26, 1946, at 10:30 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans Vardaman Mr. Carpenter, Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Ped.Reserve System held on April 25, 1946, were approved unani4101181y. Telegrams to Mr. Whittemore, President of the Federal Reserve BcItlit f Boston, Mr. Treiber, Secretary of the Federal Reserve Bank . Ne " York, and Messrs. Leach, McLarin, and Gilbert, Presidents of the p ,, e'eral Reserve Banks of Richmond, Atlanta, and Dallas, respec'Live -1-Y, stating that the Board approves the establishment without ellariPe 'V the Federal Reserve Bank of Atlanta on April 24, by the Pedera, 4- Reserve Banks of New Richmond, and Dallas on April 25, 841bY the Federal Reserve Bank of Boston, today, of the rates of -"a and purchase in their existing schedules. Approved unanimously. 629 4/26/46 -2Telegrams to Mr. Whittemore, President of the Federal Re- Bank of Boston, and Mr. Caldwell, Chairman of the Federal Resent e Bank of Kansas City, stating in each case that effective "rlre 411.1 27, 1946, the Board approves (1) the elimination by the Bank of the preferential rate of 1/2 per cent on advances to member banks tirider paragraphs8 and 13 of section 13 of the Federal Reserve Act Secured by obligations of the United States which have one year or less to run to call date or to maturity if no call date, it bein g understood that the rate of 1 per cent in effect at the Bank w°111c1 be applicable to all advances to member banks secured by 84ch Obligaj03 irrespective of the date upon which they mature are called, and (2) the reestablishment without change of all Other rates now in effect at the Bank. Approved unanimously. Memorandum dated April 22, 1946, from Mr. Paulger, Director °It the, n. sion of Ex 'nations, recommending that the salary of kilfr from eY 8. Aker, Assistant Federal Reserve Examiner, be increased 42)650 to $2,870 per annum, effective May 5, 1946. Approved unanimously. t,nt of Letter to Mr. Williams, President of the Federal Reserve Philadelphia, reading as follows: Reference is made to your letter of April 19 advising that at the directors have authorized, subject to the concurnee of the Board of Governors, a general increase of 10% g 630 4/26/46 -3- TT on the first t4,000 of present salaries of all employees except officers. "The Board authorizes your Bank to make a general increase of 17 /6 on the first l';4,000 of present salary to all employees, other than officers, including those em— Ployees who, under earlier authorizations, are presently recelvins salaries in excess of the maximums under the Personnel classification plan, provided that any increase tun this authorization does not cause the total salary to exceed the rate of 17,500 per annum. "Please advise the Board as to the date the general Increase becomes effective and forward a list of employees Whose salaries, under this authorization, are in e.vce?s of 115% of the present maximum annual salaries for the respective positions under the personnel classification Plat-L it Approved unanimously. Letter to Mr. Koppang, First Vice President of the Federal .ReSe e Bank of Kansas City, reading as follows: "The Board of Governors approves the changes in the Personnel classification plan of the Federal Reserve Bank Kansas City and its branches at Denver and Oklahoma ltY as submitted -with your letter of April 18, 1946." Approved unanimously. Memorandum dated April 25, 1946, from Mr. Ransom, stating that it la..Glad be helpful in preparing for the trial of the case which has been 4 4-netltuted against the Consumers Home Equipment Company and A.B. Chereton, President, if Mr. Norris, Assistant United States Att°1 ' neY who would have charge of the prosecution at the trial, could r()tle t° Washington for a few days to work with Mr. Townsend, and recom— rne"ing that the Board approve payment of Mr. Morris' actual trans13°Istati0 ri e:=10enses to and from Detroit, as authorised by the Board's 631 4/26/46 -4- travel regulations for heads and assistant heads of divisions of the 8°ardt e staff, as well as the payment to him of a per diem allowance in lieu of subsistence of $8.00 during the period that he is absent fr(IIM Detroit, it being understood that these payments would be narged against the appropriate item of the non-personal budget of the Legal Division. Approved unanimously. Letter to Mr. Austin, Vice President and Cashier of the Federa" Reserve Bank of Dallas, reading as follows: "This 12 regarding the Penaltyrefers to your letter of April charges of $99.19 and 8104.73 incurred by the Was' , rungton County State Bank, Brenham, Texas, as a result of deficiencies in reserves during the last half Of F ebruary and the first half of March. is noted that the deficiencies resulted in part from "It • Inexperienced help overlooking the fact that a reducicIn in the member bank's balances due from other banks, ,sed to purchase Government securities, would result in ;11 increase in its net demand deposits and required reserve; that the member bank permitted its reserve balance to decline to an average of $233,000 in the second half of me e.br!larY and an average of $282,000 in the first half of a lien, although its reserve requirements had been running bli°1111d $300,0001 due doubtless to the fact that it had !arrying substantial excess reserves during previous °ne; that the bank's average reserve balances exceeded 1;e1, required reserves by approximately 37 per cent during mor-1 1,and by 5 per cent during the first two and one-half we,:- of 1946, including the periods in which the deficiencies both penalties be -incurred; and that you have recommended wa51-ved in view of the bank's excellent record. Bank In the above circumstances, the Board authorizes your not to make the assessments." Approved unanimously. 632 4/26/46 -5- Thereupon the meeting adjourned.
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