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1933 A meeting of the Board of Governors of the Federal Reserve SYstem Was held in Washington on Monday, December 10, 1945, at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman McKee Draper Evans Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Ir. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— atter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Reserve System held on December 7, 1945, were approved unan— ttnoills. Memorandum dated December 6, 1945, from Mr. Bethea, Director °1'the Division of Administrative Services, submitting the resigna— or Miss Jean Gough, a clerk—typist in that Division, and recom— ke11"rig that the resignation be accepted as of the close of business °11114ber 5, 1 945, and that proper lump sum payment be made for any eq'lled annual leave remaining to her credit at that time. The resignation was accepted as recommended. Letter -'er prepared for the signature of Chairman Eccles to kb 111,1 L Leact., President of the Federal Reserve Bank of Richmond, 1934 12/10/45 -2l'ea'clirig as follows: "In my letter of February 16, 1939, you were requested to open an account on your books to be known as 'Board of Governors of the Federal Reserve System--General Fund' and You were authorized to honor checks drawn against such account Ithe4 signed by the Fiscal Agent or Deputy Fiscal Agent and 20untersigned by the Secretary of the Board or an Assistant Secretary. This authority was modified by the Board's letter 15, 1944, advising you that the Board had estabtlshed a 'Division of Administrative Services' and that, effective November 16, 1944, Liston P. Bethea and Fred A. Ilelson were authorized to countersign such checks in their eaPacities as Director and Assistant Director, respectively, of the new Division. t "Further changes in existing authorizations are necessitated by the retirement of Oliver E. Foulk as Fiscal Agent at t.e close of December 31, 1945, and the transfer of his func1°ns to the Board's Division of Administrative Services, effective January 1, 1946. The transfer will be accomplished by consolidating the functions of the Fiscal Agent with those 8 the Accounting Section of the Division of Administrative p rvices. The reconstituted section will be known as the s;..8cal Section of the Division of Administrative Services and semPson H. Bass, now serving as Supervisor of the Accounting , t,i°n, will be chief of the new section with authority to act ase. er uisbursing Officer and draw checks against the Board's gen1,81 fund account with your Bank. Also, effective January 1, , Josephine E. Lally, Deputy Fiscal Agent, All be transerred to the Fiscal Section as Deputy Disbursing Officer and authorized to draw checks on the Board's general fund acia count. with your Bank in her new capacity. Miss Lally's other : 11 '- les and responsibilities as Deputy Disbursing Officer will a: substantially the same as those which she is now discharging Deputy Fiscal Agent. jari "LOU' are, therefore, authorized and requested, beginning IG uarY 1, 1946, to honor checks drawn against the Board's aae2?ral Fund' account when signed by Mr. Bass or Miss Lally, ciDisbursing Officer and Deputy Disbursing Officer, respectively, Ae _ countersiFned by Mr. Bethea or Mr. Nelson as Director and ti;lstant Director, respectively, of the Division of Administratase Services. Specimen signatures of Miss Lally and Messrs. S, Nelson and Bethea are set forth below: Josephine E. Lally Deputy Disbursing Officer S. H. Bass Disbursing Officer ?fuovember 1935 12/10/45 —3— "F. A. Nelson, Assistant Director Division of Administrative Services L. P. Bethea, Director Division of Administrative Services This letter supersedes all existing authorizations with re gard to the signature and countersignature of checks drawn the Board's account, effective January 1 1946." ) Approved unanimously. Letter to Mr. Ray M. Gidney, President of the Federal Reserve taZk of Cleveland, reading as follows: to "The Board of Governors approves the payment of salaries A the following officers for the period January 1, 1946, to "il 30 1946, inclusive, at the rates shown which are the l'atee cola„ fixed by your Board of Directors for the purpose of w elting supplanental compensation now received into basic a eant,.._ as indicated in your letter of December 3, 1945: Name Annual Salary Title HEAD OFFICE : j r B. Anderson Assistant Cashier $5,450 Pn. 1:ge Emde Assistant Cashier 5,950 U.S Assistant Cashier tetzelberger 5,950 CINCINNATI BRANCH Brown k,6,000 Assistant Cashier 's J. Geers Assistant Cashier 5,950 PITTSBURGH BRANCH H. Nolte Assistant Cashier 5,650 ji' J' k Schmidt 6,000 Assistant Cashier 11' 5,850" Steinbrink Assistant Cashier Approved unanimously. Tel , - egram to Mr. Flanders °r Boston, President of the Federal Reserve reading as follows: colt 7In view of information furnished and recommendation N,I, alned in your letter of November 26, Board approves itl ilishment and operation of a branch in Belmont Center NI'ne Town of Belmont, Massachusetts, by Harvard Trust Cambridge, Massachusetts, provided Counsel for the "eaerve Bank will review and satisfy himself as to 1936 12110/45 —4— "the legality of all steps taken to establish the branch." Approved unanimously. Telegram to Mr. Young, President of the Federal Reserve Bank Or Chicago, reading as follows: "Relet fifth. Board extends to January 7, 1946, time which First Trust and Savings Bank, Galva, Iowa, may accomplish membership." Approved unanimously. Letter to Mr. Peyton, President of the Federal Reserve Bank apolis, reading as follows: whi "This refers to your letter of November 26, 1945, in • eh You state that the addition to the Helena Branch buildexpected to cost $5,000 or more above the architect's 8 'mates originally submitted to the Board. In view of the statements made in your letter, the 130, nr-rc.I will interpose no objection to an expenditure of apii,:.?xlirately $60,000 for construction of an addition to the t'h-l-ena Branch building, which amount is $5,000 in excess of at authorized in the Board's telegram of May 9, 1945." Approved unanimously. Letter to Fidelity National Bank of Baton Rouge, Baton Rouge, ella, reading as follows: has "The Board of Governors of the Federal Reserve System tichigl:lien consideration to your supplemental application for -23-arY powers, and, in addition to the authority heretofore er, 1,' ' -4Led to act as trustee and registrar of stocks and bonds, ki!l'lits You authority to act as executor, administrator, guard1114 (3f est;ites, assignee, receiver, committee of estates of bav ! tles, or in any other fiduciary capacity in which State %1;‘83 trust companies or other corporations which come into lawilletition with national banks are permitted to act under the to bet the State of Louisiana, the exercise of all such rights the subject to the provisions of the Federal Reserve Act and ,-8tregulat10ns of the Board of Governors of the Federal Reserve 1937 12/10/45 —5— "This letter will be your authority to exercise the 41 .-duciary powers granted by the Board pending the preparaorl of a formal certificate covering such authority, which will be forwarded to you in due course." Approved unanimously. Letter to the Presidents of all Federal Reserve Banks readas follows: "For your information and guidance there is enclosed a 37Tudum, received from the War Department, dated signed by Lieutenant Colonel John S. Bachman, Chief 'of Advance Payment and Loan Branch, in reply to a letter ireceived from the Federal Reserve Bank of New York reporting t no further recovery can be effected on certain loans Kkaranteed under the provisions of Regulation V and inquiring :011t the procedure for transfer of the evidences of indebtedto the Guarantor." Copy Approved unanimously. Feder_ Letter to Mr. W. D. Gentry, First Vice President of the 4-L Reserve Bank of Dallas, reading as follows: wZou are correct in both of the conclusions stated in your Rer2' ..?r of November 29, 1945, relating to Amendment No. 19 to rie6LuationW since (1), the addition to footnote 7 permits rebaW, 18 or reviaions of instalment credit to be made on the , 18 of the provisions of the Regulation as amended rather than ac8 0 ()1.'dIzIg to the provisions in effect at the time the credit was extended, and (2), the addition to Option 2, permit— bia,g a maturity of 18 months in certain cases, relates to loans b not to sales. in.., "However, in connection with the latter, the difference beeLl'eatment is more a difference in form than in substance art e (a) if the new credit is to be used to purchase a listed cr,j1?-Le, the 18 months' maturity is not permitted, whether the cle-I : t is sale credit or loan credit, and (b), if a listed artithe 18 not involved, the 18 months' maturity is permissible under 40t anaendment in case of a loan, and the additional credit is Subjeot to the Regulation at all in the case of a sale. Aec, ' l clingly, in the case of a sale of an unlisted article, the palh : '''ents applicable to the unlisted article may be added at the 1938 12/10/45 -6of the outstanding obligation (in view of the last Clause of section 12(b) relating to mixed credits), thus ac-,complishing in many cases a result similar to that which :;culd be accomplished under the new part of Option 2, if it were applicable. Furthermore, a lender is not in a more , :e..vcrable position than a seller in a case where the additional credit is small in comparison to the outstanding credit since clause (i) in Option 2 prevents abuses in such cases." Approved unanimously. Letter to Commissioner of Internal Revenue, Washington, D. C., eactin g as follows: Section 22(b)(5) of the Internal that at amounts received under Workmen's il)InPensation for personal injuries or licluded in gross income and shall be taxes. Revenue Code provides Compensation Acts as sickness shall not be exempt from income wh "Certain of the Federal Reserve Banks pay to employees 42 are absent on account of sickness or injury amounts equal ;Vheir regular salary, for specified periods, in accordance re h established practices or regulations. When amounts are t,ce'tved under Workmen's Compensation Insurance as compensapr.). for such sickness or injury (as distinguished from amounts retcl on account of medical expenses and the like) the employer v.,,..ains the compensation as reimbursement for compensation add to the employee (where, as is usually the case, the PensLtion received under the insurance is less than the i;(31-Int which the employer has paid to the employee). It is te°88ible for the employor to ascertain at the time it makes ore Payments to the employee, at least in the initial stages thssuch Payments, the amount which will become payable under F_ompensation insurance. would be appreciated if you would advise us whether 'an. these circumstances the employee should report as his salhe net amount, computed by deducting from the total reti ved from his employer the amount which represented comnensan insurance advanced to him by the employer and subsequently ,ua ifled by the employer when paid by the insurance company." 2 Approved unanimously. 1939 12/10/45 —7— Memorandum dated December 6, 1945, from Mr. Paulger, Director (lithe Division of Examinations, submitting the expense voucher of Aker, Assistant Federal Reserve Examiner, in the amount of 423•10 covering the period November 14 to November 20, 1945, and 8tating that, during the recent examination of the Federal Reserve 411k Of Richmond, Mr. Aker was absent on account of illness for a Oc of 15 days from November 7 to November 21, 1945, inclusive. The m emorandum recommended payment of the voucher which included a Ilel'cli " 1 allowance, in lieu of subsistence, for the entire period ble illness. Approved unanimously. Thereupon the meeting adjourned.
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