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IWO Minutes of actions taken by the Board of Governors of the Fecleral Reserve System on Friday, December 13, 1946. The Board met the Board room at 10:40 a.m. Mr. Lccles, Chaivman Mr. Draper Mr. Evans Mr. Carpenter, Secretary Mr. Nelson, Director of the Division of Personnel Administration A180 present was Li-. Grady, Chairman of the Federal Reserve Berik of San Francisco. Mr. Vardaman's office reported that he was absent on personal ChairA-Lan Eccles stated that Mr. Grady was returning to Calitorrii.e... on Llon.day of next week - d inasmuch as this would be the last °I)Portunity the Board would have to confer with him before he loft 14411trigt on respect to the proposed appointment of Mr. Mongols ae Pi-1'st Vice President of the Federal Reserve Bank of San Francisco, (ChRirma n Eccles) had invited Mr. Grady to meet with the Board thl in executive session. After an informal discussion of the reaction in the tielfth Ndei,a1 Reserve District to the ap,Jointment of Mr. Earhart as Presi411t, of the Bank and of the desirability of - policy of rotation in t4 C lass A c'drecto of the bank, Mr. Grady stated that he thought 141'' tkrIgQ.F.; 'as a good m that he realized that Mr. IAangels had shor tcoming in personality and in his lack of acquaintance 1771 12/13/46 -2-and others in the district, but that it should be re- eled that :Jcssrs. Earhart and 'iangels had not had -n opiortunity *IlleM°3c:,-. Day and Clerk were the chief executive officers of the 4111ç to show what they could do in this respect. President Earhart P48t had Was He also said that very anxious to have Lr. Yang. ls appointed as vice President, end that the members of the board of directors excellent contacts i:,h4 ch would enable them to be of considerable 8.1s4-arice to Messrs. Earhart and Mangels in their y.ork outside the There was agreement on the Dart of the members of the Board artct 1 Grady that it would be well for the Board to defer action on the aPDointment of Mr. '1.Engels until after Mr. GI-ay had had an opPortianity following his return to San Francisco to revie7 the matter '1113 with the understandin that he would call Chairman Eccles bT. 134ne cemeti-te after the first of the year and that the Board 11.1. d then act on the appointment in the light of Mr. Grady's report. Mr. Rvans referred to the approaching retirement of Mr. Ambrose 414.1111gi-ng Director of the Los Angeles Branch, and in4uired whether he had anyone in mind who could succeed to that position when 411 he bc'se left. ]Ilr. Grady replied that that was one of the things Ot h,7c1 an opportunity to discuss with Mr. Earhart, but that ic)111c1 be done in the near future. Thereupon lir. Grady withdrew and Messrs. Sherman, Morrill, r 'Apri , 'c-1-1(1 Vast v,ere called into the meeting. 1772 12/13/46 -3There were presented telegrams to Mr. Blair, Secretary of the Federal Reserve Bank of Cleveland; Mr. Leach, President of the Federal Reserve Bank of Richmond; Mr. LieLarin, President of the Neral Reserve Bank of Atlanta; Mr. Dillard, Vice President of the Neral Reserve Bank of Chicago; Mr. Stewart, Secretary of the Fed- eral Reserve Bank of St. Louis; Mr. Powell, First Vice President of the Federal Reserve Bank of Minneapolis; Mr. Caldwell, Chairman of the Federal Reserve Bank of Kansas City; Mr. Gilbert, President of 4Federal Reserve Bank of Dallas; and Mr. Volberg, Vice President the Federal Reserve Bank of San Francisco, stating that the to4N aPProves the establishment Aithout change by the Federal Re41,ve Bank of Chicago on December 9, by the Federal Reserve Bank of ragoisco on December 10, by the Federal Reserve Banks of Atlanta 41,zi alleas City on December 11, and by the Federal Reserve Banks of tleve.1 and, Richmond, Chicago, St. Louis, Minneapolis, and Dallas on 4411115 er 123 1946, of the rates of discount and purchase in their e)16t,in ' schedules. Approved unanimously. Before this meeting there had been sent to the membcrs of the to rd co . Pies of memoranda dated December 10, 1946 from the Personnel Coth." '4qtt ee With respect to the appointment of Class C directors, de- 1€44ti.„ -4. of Chairmen and Federal Reserve Agents, and appointment of ty 0 .,. hc-lrmen at the Federal Reserve Banks for terms beginning 1773 12/13/46 -4- January 1, 1947. The first memorandum recommended the reappointment orell Class C directors whose terms expire at the end of this year ecePt at the Federal Eeserve Arinks of Boston, Richmond, and St. Louis, that Rarold D. Hodgk;nson, Vice President, General Manager and ChairIan , tee Management Board of Vm. Filene's Sons Co., Boston, Mas- 'ehusett,, Chatil 2 '41 and Richard Thurmond Chatham, Chairman of the Board of anufactnring CaLpamy, Winston Salem, North Carolina, be 4131°11-Ited as Class C director b of the Federal Reserve Banks of Boston 41ciRichruond, respectively, and stated that reappointment of Mr. ileeallic)rlt, as Class C director at the Federal Reserve Bank of St. Louis the anointmant of a Class C director at the Federal Reserve Bank qehicago to succeed Mr. Vaymack were to be discussed by the Board. The atera oranthun also stated that Mr. Creighton, Chairman of the FedReserve Bank of Boston, had been authorized informally by the 4:11'cl to ascertain vthether Mr. Ho 411t `ts a kinson v:ould accept the appoint- C director of the Federal Reserve Bank of Boston if tendered by the Board. The. second memorandum with respect to the designation of &1C and Federal Reserve Agents and the appointment of Deputy - ell at the Federal Reserve Banks for the year 1947 included the eoke. p nclation that Mr. Wysor be designated as Chairman and Federal L4, r1re 1947 Agent at the Federal Reserve Bank of Richmond for the year d that Messrs. Donald K. David and Charles P. licCormick be 1_774 12/13/46 -5— Pp ointed as Deputy Chairmen of the Federal Reserve Banks of Boston and p; --Lehmond, respectively, for the coming year. It also stated that l'ee°rarnerldations with respect to the designation of Chairmen and apPcdlitarlent of Deputy Chairmen at the Federal Reserve Banks of Chicago axlci St* Louis would be submitted later. Ur. Evans stated that Mr. Vardaman as a member of the Pereonlie 1 Committee joined in the recommendations referred to above as 411 48 the recommendations hereinafter referred to with respect to the aPPointment of branch directors. The recommendations of the Personnel Committee were discussed and unanimous actions were taken by the Board as set forth below: The following were reappointed as Class C directors of the respective Federal Reserve Banks shown each for a term of three years beginning January 1, 1947: Name Robert D. Calkins arren F. Whittier George C. Brainard Rufus C. Harris Paul G. Hoffman W. D. Cochran Robert B. Caldwell J. R. Parten Brayton Wilbur Federal Reserve Bank New York Philadelphia Cleveland Atlanta Chicago Minneapolis Kansas City Dallas San Francisco Action on the recommendation covering appointment of Mr. Chatham as Class C director of the Federal Reserve Bank of Richmond was deferred it being decided that a vacancy would be left in the Class C directorate of that bank for the present. 1775 12/13/46 —6— The following were redesignated as Chairmen and Federal Reserve Agents at the respective Federal Reserve Banks shown for the year 1947 and the compensation of each as Chairman and Federal Reserve Agent was fixed on the uniform basis for the same position at P11 Federal Reserve Banks, i.e. the same amount as the aggregate of the fees payable during the same period to any other director for attendance corresponding to his at meetings of the board of directors, executive committee, and other committees of the board of directors; Name Albert M. Creighton Thomas B. McCabe George C. Brainard Frank H. Neely Roger B. Shepard Robert B. Caldwell J. R. Parten Henry F. Grady Federal Reserve Bank Boston Philadelphia Cleveland Atlanta ainneapolis Kansas City Dallas San Francisco Mr. Rurn1 was not reappointed as Chairman and Federal Reserve Agent at the Federal Reserve Bank of New York for the reason that under date of December 9, 1946, Chairman Eccles received a letter from him indicating that he would continue as a Class C director but suggesting that he be not redesignated as Chairman and Federal Reserve Agent. It was agreed that, since the remaining Class C directors were educators and should not be designated as Chairman and Federal Reserve Agent, Chairman Eccles would call Mr. Rum] on the telephone and request him to accept redesignation and continue as Chairman and Federal Reserve Agent for sixty or ninety days during which time the Board would find a successor. The following were appointed as Deputy Chairmen of the respective Federal Reserve Banks shown for the year 1947: 1.776 12/13/46 -7Name Donald K. David Lilliam I. Myers* Warren F. Whittier* Reynold E. Klages* J. F. Porter* D. Cochran* Robert L. Mehornay* R. B. Anderson* Harry R. Wellman* Federal Reserve Bank Boston New York Philadelphia Cleveland Atlanta Minneapolis Kansas City Dallas San Francisco *Reappointment At Mr. Evans' request, it was understood that the appointment of Chairmen and Federal Reserve Agents and Deputy Chairmen at the Federal Reserve Banks of Richmond, Chicago, and St. Louis would be considered at the meeting of the Board on Tuesday, December 17, 1946. Mr. Evans then presented a memorandum from the Personnel Cc4tlitt-ee dated December 10, 1946, with respect to the appointment ot Uj ectors of branches of the Federal Reserve Banks for terms 46.4 January 1, 1946. In accordance with the recommendations contained in the memorandum from the Personnel Committee the following were reappointed as directors of the respective branches of the Federal Reserve Banks shown, each for a term of three years beginning January 1, 1947: Name Thomas Robins, Jr. S. Headley Shouse Horiard W. Jordan Bratten Evans D. P. Cameron Rosco Stone George A. Slaughter Holman M. Cartwright Federal Reserve Bank Branch Buffalo Cincinnati Pittsburgh Nashville New Orleans Louisville Houston San Antonio 1777 12/13/46 The following were reappointed as directors of the respective branches of the Federal Reserve Banks shown, each for a term of two years beginning January 1, 1947: Name Ernest Gilbert R. B. aichardson M. E. Noonen Fred S. 'i .allace Fred G. Sherrill John U. LeGregor Federal Reserve Bank Branch Detroit Helena Denver Omaha Los Angeles Seattle It was voted to request the Chairmen of the Federal aeserve Banks concerned to ascertain informally hether the follo-Ang would accept appointments as directors of the respective branches shown for terms beginning January 1, 1947: T Name ". Vinton Hershey Business President and General Manager of Hagerstown Shoe Company, Hagerstown, Maryland 17. A. L. Treasurer, Monarch Mills, Sibley Union, South Carolina Robert President, Tennessee Coal, Gregg Iron and R. R. Company, Birmingham, Alabama haph President, Plunkett-Jarrell Plunkett wholesale Grocer Company, :Little Hock, Arkansas Farmer, Hughes, Arkansas Brinkley Green :m.:.neher and cattleman, Duncan, Oklahoma 44rold A. Steinfeld President, Albert Steinfeld and Company, Tucson, Arizona G. Hyer Farmer - Livestock feeder of sheep and cattle, Leiston, Utah Federal Reserve Bank Branch Baltimore Charlotte Birmingham Little Rock Lemohis Oklahoma City El Paso Salt Lake City 1778 12/13/46 -9In the discussion of the above appointments it was agreed that the Personnel Coalmittee should be on the watch for for' -rd looking educators and that care should be taken to see that Board appointments to the head office and branch boards included an adequate representation from this source as well as a balanced representation from business, industry, and agriculture. Evans stated that recommendations regarding the appoint- Of directors at Jacksonville and Portland branches would be ik itted Chairman Eccles then referred to the understanding that the toal„, 'would not designate Lar. Leland as Chairman of the Federal Ret've n 'ank of Chicago after this year. It was agreed that Chairman Eccles should talk with Mr. Leland by telephone and inform him that the Bo:rd's position had not changed. €,11 At thLs point Messrs. Vest and Nelson withdrew from the meetcine action stated with respect to each of the matters herein- set forth was then taken by the Board: Letter to Mr. DeMoss, Vice President of the Federal Hc:crve ' ct a7qL,s, reading as follows: IIIn accordance with the request contained in your lett_er of December 5, 1946, the Board approves the ap131,°intment of Thomas Royce Sullivan as assistant examiner 11:r the Federal Reserve Bank of Dallas. Please advise t °f the date upon which the appointment becomes efeotive.” Aooroved unanimously. 1779 12/13/46 -10Letter to nr. Blair, Secretary of the Federal Reserve Brk q el el- reading as "Receipt is acknowledged of your letter of December r, 1946, enclosing advertising material and a photograph of a unit which has the trade name 'Perfect-O-Mistor' 48 to rhich you have been requested to obtain a ruling tl:Iether it is included in the classification 'air condltioners under Regulation W. . "The material which you enclosed indicates that the !nit is designed only to eli Inate germs from the air. un the other hand, 'air conditioners' are commonly underto be devices intended to control the temperature humidity of the air. Some air conditioners likewise 2"-tcr dust and other impurities out of the air, but many room units do not have this feature. "In the circumstances, it seems clear that 'Perfectis not a listed article under Regulation T." Approved unanimously. Letter to Mr. Blair, Secretary of the Federal Reserve Bank C"`.1relalid, reading as follows: "Reference is made to your letter of December 4 !Id to your telegram of December 6 inquiring, in effect, :?ether the Board, in connection with its recent reviolic'n of Regulation U intends to prescribe new Statement & ) rrower and Statement of Changed Conditions forms. "The Board does not intend to Prescribe forms to rnee4. t the reuirements of the statements to thich refence has been made. At his option, a registrant may ; 44e use, to the extent appropriate, of prescribed or e46gested forms developed for use in connection with : responding provisions in the old regulation or he use his own forms." n Approved unanimously. Lett-r to the Secretary of State reading as follows: 19 "This will acknowledge your note of December 6, , informing the Chairman of the Board of Governors the Charge d'Affaires ad interim of India had in"11")cd whether it would meet with the approval of the 1780 12/13/46 -11"Board of Governors for Mr. M. L. Tannan of the Departmerit of Comiaerce, Government of India, to establish contact ;:ith the Board's Division of Examinations and Division of Bank Operations for the purpose of studying the method of Government inspection of banks and recruit'Qramotion, et cetera. "On Friday, December 6, prior to the receipt of Yeur note on December 9, Mr. Tannan celled at the Board's effices and discussed matters of interest with members e' the Board's Division of Examinations and Division of 'search and Statistics. ;le endeavored to be of assistance to Mr. Tannan and, although we understood that he to leave ashington on Sunday, Decaqber 8, we shall gLad to make arrangements for his further study of aatters mentioned should he plan to return to Lashington. "i.e shall be pleased to have you advise the Charge d Affaires accordingly." r At)-roved unanimously. Letter to the Comptroller of the Currency reading as follow:-: arid "It is respectfully re iuested that you place an er with the Bureau of Engraving and Printing, supVernenting the order of June 13, 1946, for printing deral Reserve notes of the 1934 Series in the amounts cl denominations stated for the Federal Reserve Bonk et St. Louis: 4 Denomination 10 50 loo liumber of sheets Amount 400,000 25,000 40,000 $48,o0o,00o 15,000,000 48,000,000" Approved unanimously. IlemorPndum dated liovemb,r 29, 1946, from Lessrs. Young and 14) rbqt 'b-ssistant Directors of the Divisions of Research and Statis% r41_, ' Or—rations, respectively, recommending that an pdditionPenn-,4. --L'Alre of ,31.20 per amth in connection vath the temporary tqqa, ttio.1-1 of IBM equipment to tabulate the commercial and indus- 1781 12/13/46 -12tilal loan survey results be authorized to cover a 10 per cent Fede1 411:eise tax on bills rendered for the use of machines. The 141111, „ l',,Aiclum also stated that this tould bring the total estimate for the Cost, of the machines for three months from ."1,36.Cri to '1,929.60. Approved unanirrously. Memorandum dated December 12, 1946, from ar. Carpenter, rece°441erldir,, that R. E. Sherfy, Division of Bank Operations, be dested as a 7:itness to the mutilation of signature plates bearing the "of officers of the Federal Haserve 113:,nks had been 4411 zect . In Eligning checks dram in their capacity as Fiscal Agents of the u nited States, and that Mr. F. A. Walker, of the sclme Division, bed "Ignated as his alternate, %ith the understanding thLt these ,qgri, 6.L'i°118 would continue until further action is taken by the Approved unanimously. Thereupon the meeting adjourn Secretary. 1 14 Chairman.
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