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Minutes of actions taken by the Board of Governors of the 4044, ' 1 Reserve System on Thursday, December 16, 1948. PRESENT: Mr. Mr. Mr. Mr. Mr. NcCabe, Chairman Eccles Draper Evans Clayton Mr. Mr. 1:1r. Mr. qv" Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the Fed- a 'serve System on December 15, 1948, were approved unanimously. Menlorandum dated December 13, 1948, from Mr. Thomas, Direc- tor of the Division of Research and Statistics, recommending intht, tt ill the basic annual salaries of the following employees in effective December 26, 1948: ski t. Tualatin Aliea Title Economist Economist Salary Increase To From $4,981.20 $5,232.00 4,228.80 4,479.60 Approved unanimously. 14emorandum dated December 6, 1948, from Mr. Bethea, Direc- r the D sion of Administrative Services, recommending an Ntlee . thqt, ln the basic salary of Joseph E. Kelleher, Assistant to ireet °I . in that Division, from $6,235.20 to $6,474.60 per anIlk44 errective Deceinber 26, 1948. Approved unanimously. t iô A6/48 -2Letter to Mr. Leedy, President of the Federal Reserve Bank 411Bas City, reading as follows: b, "The Board approves the following minimum and maxisalaries effective January 1, 1949, for the respecalve grades at the wedercl Reserve Bank of Kansas City 1,s, tentatively submitted with your letter of November 27, 1.48 and approved by the Board of Directors on December : 4'1u' 1948: Grade Minimum Maximum Salary Salary 1 $1320 $1740 2 141,0 1980 3 1620 2220 4 1800 2460 5 2040 2760 6 2280 3120 7 2580 8 2880 9 3180 10 3600 I 11 4000 12 13 iE 14 5600 7600 15 6300 8500 16 7000 9500 le, "The Board approves the payment of salaries to em44e:s: other than officers, within the limits specitii;- ''or the grades in which the positions of the respectiig e emPloyees are classified. It is understood that all tall ;°Yees who will be receiving salaries below the mini* their respective grades as a result of the change the tbah,„ .4.ein salary scale will be brought within the appropriate ( (0T) ' 5'.5) Approved unanimously. Letter to Mr. Sheehan, Chief Examiner of the Federal Reserve or Ne 1.°P1c) reading as follows: 19 "Reference is made to your letter of December 9, Co su bmitting the reauest of the Montclair Trust ti4e1W, Montclair, New Jersey, for approval of an addi41 trivestment of $224,000 in bank premises, to 2139 1V16/48 -3cover proposed modernization and improvement of the main "-oe building and branches. „ "It is noted approval of the appropriate State au' 40rities has been obtained. "In view of your recommendation the Board of Goverapproves an increase in the bank's investment in 44k premises by not more than $224,000." Approved unanimously. Letter to Mr. Volberg, Vice President of the Federal Reserve or San Francisco, reading as follows: Tr,, "Enclosed is a letter to Bank of America National and Savings Association extending to January 1, 012' the time within which the bank may establish and yòb-11 for business a branch at Shanghai, China, which tici; /gill please deliver to the bank. There is enclosed -° cooy of the letter for your files." Approved unanimously. Latter to Mr. Volberg, Vice President of the Federal Reserve or San Francisco, reading as follows: 1,48 "This is to acknowledge your letter of December 9, eatA 'advising that, in your opinion, the proposed.lolk: °Y) of the branch that Peoples Bank, Lakewood 11114111h California, wishes to establish at Village Road as the Way, is in the same unincorporated community ""a head office of the bank. cial he Board has no reason to differ with your ?onMr 811-°111 and it will be appreciated if you will advise at;;* 11- Brewer, President of the Peoples Bank, that brRrlit appears that the location of the proposed or Tial in fact, in the same unincorporated town 11 --Lage as the head office of the tank, it is the of .t}:t8 ()Pinion that the law permits tne establishment filrlir branch without approval by the Board. Please copy of your advice to Mr. Brewer for the ''163 files.n Approved unanimously. • Letter to Mr. Falkner C. Broach, Vice President, National of "lea, Tulsa, Oklahoma, reading as follows: "This refers to your letter of November 26, 1948, ! t! tit king when the franchise tax is paid the Treasury by e Federal Reserve Banks and whether we can give you "Some idea of what it will amount to this year in cornWith last year. It is assumed that you refer r the amounts being paid the Treasury as interest on Iltstanding Federal Reserve notes not covered by gold sel ' tlficates pledged with the Federal Reserve Agents 8 collateral for such notes. "Payments to the Treasury by the Federal Reserve ilo s for the year 1947 as interest on Federal Reserve p '98 amounted to $75,224,000, as shown in Table 6, (1,,1 !? 71) of the Board's 1947 Annual Report. Payments ti;'34g 1948 have been made at quarterly intervals, and t e ,ggregate for the year, which has not yet been de07. 111ed, will be larger than for 1947. A statement current earnings and current expenses of the Federal crerve Banks for the first half of the year 1948 is 131,tained in the August issue of the Federal Reserve ; fc 1!tin on page 1022. A complete operating statement 111, the year 1948, showing the payments to the Treasp:,' will be published in the February issue of the "ral Reserve Bulletin. zibo :We appreciate the opportunity of writing you of 1,1C' these payments and hope that you will find such of. the above information that you do not already hnve "e help.n Approved unanimously. qt4 ct Letter to Mr. Frank Pace, Jr., Assistant Director, Bureau of °get 'Prepared in accordance with the action at the meeting the 13°e'I'd on December 7, 1948, and reading as follows: offi "You will recall that, at a meeting held in your c)f j e On July 22, 1948, to discuss certain aspects the tT: Proposed amendments to H. R. 2799, you asked cati 'he Board of Governors prepare a statement indiket! generaljy the conditions it would like to see - anY legislation authorizing the Federal Home ;1 12/16/48 -5"Loan Banks and the Federal Savings and Loan Insurance Corporation to borrow from the Treasury. "The enclosed memorandum, together with the draft of a ProPosal to amend the Federal Home Loan Bank Act, has been Prepared by the Board's staff in response to that request, atIld the Board has asked me to transmit the draft to you and ° make it available to such other interested agencies as , 11111aY suggest. In the preparation of the draft the i:e.rd's staff has consulted extensively with the staffs of the Treasury and the Federal Deposit Insurance Corporation, hrld the draft has benefited from their suggestions. We advised the staff of the Bureau of the Budget from ' c 4e to time of the progress of the work. We cannot, of 1%:111*se, speak for other agencies or their staffs, but the ,„4rd is staff has received the impression that the Treasury Probably will have no objection to the draft and that the g°111Ptroller of the Currency will adhere to the Treasury's 0. . 1*111 position. The staff of the Federal Deposit Insurthe! Corporation, on the other hand, appears to believe 1046 the Federally-provided liquidity in the building and association field is already ample and should if any-,14g be reduced. Ilam . : While the Board would not propose that the Federal co,: boan Banks and the Federal Savings and Loan Insurance °-ation be authorized to borrow from the Treasury, it pr . leves that if such authorization is to be part of the C:Ident's legislative program at the coming session of in ,!ess, provisions to accomplish the objectivesoutlined "! attached memorandum should be included. 48 "The draft is not regarded by the Board or its staff 4ijerfected. Before the draft can be considered a defilq17 . Proposal for legislation, many specific provisions atio Probably require some revision in the light of informc()r,IF:,11111ch is not now available to the Board and after of i;4-tation with other agencies to insure the workability legi".7 legislation. While the Board approves the general al' ative objectives stated in the memorandum, if there at :'441 be changes in the essential features of the draft, 144 there should be changes in the general circumstances ap, 4 d/ the Board would wish to review the situation -La the light of such changes." V tj!!! Approved unanimously. Ch tN0 Let+ 'er to Mr. Black, Cashier of the Federal Reserve Bank of l'eading as follows: m e "Reference is made to your letters of October 27 and mber 12, 1948, in which you advised that it appears enses for 1948 at your head office and Detroit Branch "4.11 exceed budget estimates for the year as follows: Detroit Head Branch Office Function IGoeneral Overhead $ 83,000 Z°vision of Space $17,000 207,000 174eral Service 58,000 ' s°8tage and Expressage 9,000 61,800 7,'43ek of Supplies 17,000 "onsUmer Credit 8,800 ,le,curities 1,500 s'Aueek Collection 270,000 °Unting 7,500 Pik and Public Relations 2 000 'ederal Reserve Note Issues 2,800 ,. "The Board accepts the revised figures as submitted, 1, 14`4 appropriate notations are being made on the Board's -eeords.ft Approved unanimously. Sec
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