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1285 A meeting of the Board of Governors of the Federal Reserve 8Ystea was held in Washington on Friday, August 31 1945, at 3:00 p.m. PRESENT: Mr. Ransom, Vice Chairman Mr. Szymczak Mr. Evans Mr. Carpenter, Secretary Mr. Hammond, Assistant Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman Mr. Thomas, Director of the Division of Research and Statistics Mr. Vest, General Attorney Miss Bourneuf, Economist in the Divi— sion of Research and Statistics Mi. Thomas referred to the letter dated July 231 19451 from Sellat°rPePPer, Chair.man of the Foreign Trade Subcommittee of the aertate n `401mittee on Small Business, and the Board's reply thereto 11111:ler date Of July 31, 1945, with respect to obtaining information abollth, t-- 4- acilities available to small foreign traders for financing N'ort 1,4 --,Pments. He reported that a meeting of certain members of the t 'Joard's or New ,,or.k staff and representatives of the Federal Reserve Banks litivror :on and Philadelphia and two member banks had been held in July 31 and August 1, 1945, for a preliminary discussion 44d that a tentative form of questionnaire had been drawn up for the 13141Po8e „ " Thomaa developing the desired information. It was the consensus, said, that the information should be obtained by personal trttervievira with a limited number of banks in Federal Reserve districts 1$411‘e th„e was activity in the financing of exports, rather than by 1286 8/V45 -2- a fin41 questionnaire to a larger number of banks, and that because of the short time available for the survey and the fact that it would be il Vracticable, if not impossible, to send the necessary instructio— uu to the representatives of the Federal Reserve Banks who would be m°malted to participate in the survey a meeting should be called to be attended by the representatives of the Board and the Federal Reserve 8 4nks involved to discuss the whole matter and particularly the vuure to be followed in collecting the information. The questionnaire referred to by Mr. Thomas was read and a 'of changes therein were suggested. After a discussion as to the Federal Reserve Banks which would be invited to participate in the survey, the procedure outlined by Mr. Thomas for making the survey was approved and he was authorized to telephone the Presidents of the Federal Reserve Banks of New York, Philadelphia, Atlanta, Chicago, St. Louis, and San Francisco and invite each of these banks to have a representative attend a meeting to be held. Mr. Thomas stated that a meeting of the Staff Group on Foreign yo elle8t8 Ilas scheduled to be held at the Federal Reserve Bank of New rk on 4 liell8t 9 and that it had been suggested that the meeting reterrea `' to above be held at the New York Bank on August 10. There en411eci a cli3eLlssion of whether it would be more desirable to hold the Illeeting at the Board's office rather than at the Federal Reserve Bank "NsITYork and it was agreed that it would probably be more conventt t° the majority of those who would attend, to hold the meeting rtfo."1 _1_6,0 1 8/3/45 inì _3_ lkshington. Accordingly, it was understood that Mr. Thomas would 411 ' arige to hold the meeting here on August 10, 1945. At this point Messrs. Thomas and Vest and Miss Bourneuf withda'evirfram the meeting. The action stated with respect to each of the matters hereinafter referred to was then taken by the Board: Telegrams to Mr. Flanders, President of the Federal Reserve Bark of 10 eral a ..oeton, Messrs. Treiber and McCreedy, Secretaries of the Fed- eserve Banks of New York and Philadelphia, respectively, Mr. .4u, President of the Federal Reserve Bank of Atlanta, Mr. Dillard, Viee p ' l eeldent of the Federal Reserve Bank of Chicago, Mr. Stewart, 8eeret ru . 7 am of the Federal Reserve Bank of St. Louis, and Mr. Earhart, Vice? ' l eeident of the Federal Reserve Bank of San Francisco, stating that 4, '"e Board approves the establishment without change by the Fedrq-Res. -rve Banks of St. Louis and San Francisco on July 31, by the Federal Reserve Bank of Atlanta on August 1, by the Federal Reserve 844k8 of "Iv York, Philadelphia, Chicago, and San Francisco on August '3194 or rl' 5' 44d by the Federal Reserve Bank of Boston today of the rates 'ut and purchase in their existing schedules. Approved unanimously. Ilemorandum dated August 2, 1945, from Mr. Bethea, Director the D. 07-eion of Administrative Services, recommending that Mrs. Redford be appointed as a charwoman in that Division on a 8/3/45 —4— temp *rarY basis, not to exceed two months, with basic salary at the rate of 44u per annum, plus supplemental compensation for overtime of$216 on the basis of a 44—hour workweek, and in addition to the ak/Y specified a 10 per cent night differential for work performed 41rter 6 P.m., effective as of the date upon which she enters upon the Perr°rmance of her duties after having passed the usual physical e)e'rairlation. The memorandum stated that it is not contemplated that 1418s Recir°rci will become a member of the retirement system. Approved unanimously. Letter to Mr. Rice, Vice President of the Federal Reserve Bank Of M "ew York, reading as follows: ;In accordance with the requests contained in your lette of July 30 1945, the Board of Governors approves for a further period of six months beginning August 8, _7845, the continuation of Mr. Spencer S. Marsh in an 'un— ; eligned' position in conjunction with the executive de— T program of your Bank. he 'The Board of Governors also approves for a further ; 011-cT1 of six months beginning August 9, 1945, the tem0111.1 Y assignment of Mrs. Mary C. Bruce as an Assistant aee""r1 in the Domestic Research Division of the Re— c1;11 Department, pending a revision of the personnel ' 88ification plan of that department." Approved unanimously. Letter to Mr. Boles, Assistant Federal Reserve Agent at the Fed-'.-ve Bank of Dallas, reading as follows: accordance with the request contained in your July 30, 1945, the Board of Governors approves, etive July 1, 1945, the payment of salaries to Mr. treaml,'Yd) Federal Reserve Agent's Representative, Houston '") at the rate of $3,300 per annum, and to Mr. 8/3/45 —5— :G. W. Stover, Federal Reserve Agent's Representative, oan Antonio Branch, at the rate of 0,180 per annum." Approved unanimously. Letter to Mr. Sproul, President of the Federal Reserve Bank of ew York, reading as follows: "Mr. Szymczak has referred to the Board your letter julY 25 expressing your wish to have Mr. Norris 0. John or return from his present mission in Iran by way of Tfldia, Australia, and New Zealand in order that he i'gut visit the central banks of those countries. The 02axi'd agrees that these visits would be to the interest g the System and approves the proposal. We shall be d, as requested, to furnish Mr. Johnson credentials 2 ;L:.ki to arrange with the State Department for the necesa 17 appropriate authorization. To this end it will be Preciated if you will furnish us as specific informaas possible as to Mr. Johnson's itinerary, the passPort he now holds, and the circumstances of his present oession so that we may take the matter up with the State Partrilent with full knowledge of the details." i 4 Approved unanimously. Letter to the board of directors of "The Bank of Leipsic ParkY," L elPsio, Ohio, stating that, subject to conditions of membersiltp 4 illabered 1 to 3 contained in the Board's Regulation H, the Board 4PProve 8 the bank's application for membership in the Federal Reserve SYsterri 44d for the appropriate amount of stock in the Federal Reserve 114k °f Cleveland. Approved unanimously, for transmission through the Federal Reserve Bank of Cleveland. Letter to the board of directors of "The State Exchange Bank," Center Kansas, stating that, subject to conditions of membership V3/45 -6- nuillbered 1 to 3 contained in the Board's Regulation H, the Board approves the bank's application for membership in the Federal Reserve SY8tera and for the appropriate amount of stock in the Federal Reserve Bank of Kansas City. . Approved unanimously, for transmission through the Federal Reserve Bank of Kansas City. Letter dated August 2, 1945, to Mr. Davis, President of the It Bank of St. Louis, reading as follows: 191., his letter is in response to yours of July 17, with regard to the proposed alterations in the 4-ttle Rock Branch building. te "In view of the statements contained in your letrar! the Board approves your proceeding with the prepaou n of detailed plans and specifications for the changes t,d, it being understood that such approval at this .4"le does not include any commitment as to whether or c en aPProval would be given by the Board for the actual onstruction work." Approved unanimously. Or Letter dated August 2, 1945, to Mr. Hitt, First Vice President the pc , "leral Reserve Bank of St. Louis, reading as follows: sub ."Reference is made to your letter of July 24, 1945, NOtting for the consideration of the Board information alal",.'espect to the purchase of acceptable assets and asfl of the deposit liabilities, amounting to approximem $1,208,000, of The Scotland County National Bank of 148 4-3, Memphis, Missouri, by the Bank of Memphis, Memphis, ' soT,i, as of April 28, 1945. incl. On the basis of the information submitted, which acti4d "a report of a special investigation of the transthe ) 01111 made by one of your examiners as of July 2, 1945, did -°ard concurs in your conclusion that the transaction not resul., u in any change in the general character of A (I:co JL Ka, 8/3/45 -7- he business of the Bank of Memphis nor in the scope of tl2e corporate powers exercised by it, within the meaning °I membership condition numbered 1 applicable to the State IlleTber bank, and will interpose no objection to the transLon as consummated. It is noted that the transaction Was effected with the consent of the Commissioner of Fiance of the State of Missouri and that counsel for the Re serve Bank approves its legal phases." Approved unanimously. Letter to Mr. Davis, President of the Federal Reserve Bank of St, Loui 3, reading as follows: 10, "This refers to Mr. Peterson's letter of July 20, ' 4)/ enclosing a copy of the resolution adopted by your boarrl of directors on July 12, 1945, recommending that the d Board of Governors rescind the Order for Hearing to a,tellline whether the membership of the Pine Lawn Bank rust Company should be forfeited. is In view of the fact that your board of directors sat fled that the conditions at the Pine Lawn Bank hZ Trust Company have materially improved and the bank co ?ubstantially complied with the understandings and signediltilltments expressed in the letter of June 12, 1944, all directors of the member bank, the Board has dnelded • to rescind the Order for Hearing. cio "According], the Board will consider the matter thi,eed and you may, if you wish, destroy all copies of te; ?1,:der and transmittal letters sent to you in our let113p. March 27, 1944, except the copy enclosed for the - of Your Bank." Approved unanimously. rea444 g Tel egram to the Presidents of all the Federal Reserve Banks a8 follows: wheth"Deputy Alien Property Custodian has asked Board dist-,r Federal Reserve Banks would be available for the inatabution of copies of a proposed General Order and ''etions and forms associated therewith, relating --1- 1292 813/45 -8- "to the reporting by persons having custody or control of property interests in this country of Germany and Japan and of nationals of Germany, Austria and Japan. It is understood that Federal Reserve Banks would not be expected to take the initiative in making any such distribution but merely to give out copies upon request at the or branch or possibly to mail them out in response ° , 111ail requests if received. We anticipate that if any ?ostantial expense to the Federal Reserve Banks were found to be involved, the Alien Property Custodian would :I elmburse the Federal Reserve Banks on a cost basis. It ±8 not expected that the personnel of the Federal Reserve biank.s would have to be familiar with details of the reItTlrements of the order and forms. So far as is known, Br performance of this service by the Federal Reserve 13,, ks will not lead to requests for other services. The 'I'd feels that it is desirable to comply with this request unless you see some objection thereto. Please adSe by wire." Approved unanimously. Teiegram to the Presidents of all the Federal Reserve Banks readiti gas follows: "Referring Treasury's letter of July 25, 1945, re. ing adoption new procedure, effective September 1, ; 1 45, for reporting deposits in Treasury daily transcript, erP ril-ies to our wire of July 12 indicate majority of FedServe Banks prefer to carry reserves on collected -°n cmlY of Treasurer's General Account. In circuma ; str at ices: under new procedure there should be a segregation, ,,st for temporary period, of 'Deferred availability iteme dai7 on Form 34 into 'Treasury' and 'All other'. In ceIV and weekly wires to Board the two items should be Istled and reported against present code TAPP. It is or"!ratood that C/D's will be entered in the transcript blit'he Treasurer's General Account on the day of receipt tienthat the proceeds of any items in process of colleclase- 1."1-1-1 not become available for withdrawal or other 8 until credit therefor is given by the Federal Reserve Ace ' s in the collected portion of the Treasurer's General °114t, at which time they become deposits subject to f 1293 8/3/45 —9- "the reserve requirements prescribed by law. Under this Procedure overdrafts in the collected portion of the Treasurer's General Account will be covered by transfers of funds from other Reserve Banks, as in the past, but it ,Ite understood that it will be the policy of the Treasury 42,avoid such overdrafts. It may be desirable to consider '"le question at the next Presidents' Conference." Approved unanimously. Memorandum dated July 30, 1945, from Mr. Thomas, Director of the D4 . 4-Irleion of Research and Statistics, reading as follows: . "It is recommended that Mr. David L. Grove, an econo411st in the Division of Research and Statistics, be granted t1 advance of funds in the sum of $250 for use in helping ti°1 meet the expense of his forthcoming official travel on 1 , e mission to Guatemala, approved by the Board on July 1945 and July 24, 1945. Ile "It is also recommended that Mr. Grove be allowed a :diem in lieu of subsistence not to exceed $8 while abl ' d eat from Washington upon the discharge of the above escribed duty. "The arrangements for the advance of funds and the rate by cif Per diem are similar to those previously approved of t e Board in connection with foreign travel by members for ne staff except with respect to the security offered pledthe Pledge advance. In previous cases this security was a not °f funds in the Retirement System. Mr. Grove is serv:a , 1 ember of the Retirement System of the Federal Reei in t nanks but of the Civil Service Retirement System. paneiA r is possible that a pledge against the funds ran he might be arranged, it seems preferable to aras ge a pledge of amounts which would be due to Mr. Grove tie,aYment for accumulated leave in the event of resignawhi- or death. Mr. Grove has 34 days of accumulated leave, the in terms of salary to him in case of separation from leave°ard, 'would amount to approximately $600. Since this provalcan not be substantially drawn against without aprec,-'it appears to be ample security for the advance wutmended.0 Z Approved unanimously. Thereupon the meeting adjourned.
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