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1169 A meeting of the Board of Governors of the Federal Reserve Sys— tem was held in Washington on Thursday, August 15, 1946, at 10:30 a.m. PRESENT: Mr. Eccles, Chairman Mr. Szymezak Mr. Draper Mr. Carpenter, 'Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman Mr. Vardaman was absent for the reasons stated in the minutes the Board of Governors of the Federal Reserve System for August 6, 1946. The action stated with respect to each of the matters hereinafter referred to was taken by the Board: Memorandum dated August 14, 1946, from Mr. Bethea, Director of the D. lvleion of Administrative Services, recommending, for the reasons etli ned therein, that the appropriate account classification in the of the Division of Administrative Services be increased by t9)000 to cover additional expenditures for printing and binding during 1946. Approved unanimously. Letter to Mr. Gidney, President of the Federal Re-,erve Bank of elelw ' "L alld, reading as follows: "Reference is made to your letter of August 9, 1946 requesting the Board's approval of the payment to the Re— -rement System of $4,601 to provide for the cost of estab4'shing past service credit for Mr. Edward C. Keister, an eMPloyee of the Pittsburgh Branch. "The Board approves the payment to the Retirement Sys+ L'ela under Section 9 of the Rules and Regulations as ,equested." ii Approved unanimously. 1170 8115/46 -2-Letter to "The Huntsville State Bank", Huntsville, Ohio, read- IlaS follows: "The Board is glad to learn that you have completed arrangements for the admission of your bank to memberin the Federal Reserve System and takes pleasure in t'l'ansmitting herewith a formal certificate of your membership, . "It will be ao.:reciated if you will acknoldedge re" 3-Pt of this certificate." Approved unani.,iously. Letter to the Presidents of all Federal Reserve Banks, prepared &tia„ --ordance with the action taken at the meeting on August 13, 1946, and reading as follows: "You have noted the recent newspaper accounts of the lettere sent by the President to the various departments and e gencies of the Government asking them to hold expenditures z ? the lowest possible level as a means of reducing infla,. ; 3°flarY pressures. A copy of the President's letter is en'4-osed. Special letters were sent by him to the Departments °f Navy, Agriculture and Interior, the United States Maritime Commission, the Tennessee Valley Authority, and the Federal Works Agency. "No letter was received by the Board of Governors but bbecause of the System's interest in effective steps to comt inflation, the staff has been asked to restudy the ard's budget for the current year and to defer or reduce "erelitures wherever practicable having in mind the ef'lcient conduct of the Board's affairs. "It is also suggested that the Federal Reserve Banks Undertake a sihtilar review of their expenditures for the rPose of effecting INhatev,2r economies may be possible in 84.11110nY with the President's request. In the event your 'udY indicates the desirability of substantial changes in services or functions performed at your Bank or a branch, , anY, it will be appreciated if you will take the matter 'I)with the Board of Governors before the changes are made. "As noted in the President's letter, the Government ?sta blishments have been asked to absorb the recent increase In Federal salaries to a considerable extent by reductions Z e r 8115/46 -3- in the number of employees, and the Board and the Federal Reserve Banks should keep this in mind in working toward increased efficiency and productivity of employees. Special attention is also called to the President's comment with respect to eliminating or delaying work of 'low priority' and the purchase of materials and esluipment which are in short supply. "The Board will appreciate it if you will undertake the review of expenditures at your Bank as promptly as Possible and if you will be prepared to report the progress made at the meeting of the Board and the Presidents of the Federal Reserve Banks in October." Approved unani,Ilously. Letter to the Presidents of all the Federal Reserve Banks prePared in accordance with the action taken at the meeting of the Board °11 J1,1 "4:Y. 30, 1946, reading as follows: "For your information there is attached a memorandum Presenting in full information with respect to the proposed .111"veY5 of member bank loans outstanding to commercial and 'ndustrial business and of member and nonmembcr bank loans °Iltstanding to farmers. In view of the importance of the if conducted, to the Reserve System, to commercial barks, and to the public generally, the Board desires to lscuss the proposals with the Presidents at the joint 8sion of the Presidents' Conference and the Board, to be eld early in October. arid."It has been suggested that the survey of commercial industrial loans be made as of a date no later than ;he first of November of this year; and that the survey of marmer real estate loans and of other loans to farmers be Te as of a date no later than December first, with sup. p: mentary surveys of production loans to farmers in the ; t 'e spring or early summer, in order to get a picture of peak demand for these loans. The supplementary surveys : 1 1ght be made at different dates in different Federal ReServe districts, each Reserve Bank deciding the most ap':r°Priate date in accordance with agricultural conditions In its district." r j Approved unanimously. adjo Thereupon the meeting /12.11 ecretary.
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