The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1925 A meeting of the Board of Governors of the Federal Reserve emINas held in Washington on Friday, December 17, 1943/ at 11:00 PRESENT: Mr. Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters herein— ter r eferred to was taken by the Board: IP .erea A . The minutes of the meeting of the Board of Governors of the rteserve System held on December 16, 1943, were approved unani— 111011 Telegrams to Messrs. Treiber, McCreedy, and Clouse, Secre— ie8 of the Federal Reserve Banks of New York, Philadelphia, and Cleveland, Ileaerve respectively, Mr. Dillard, Vice President of the Federal Bank of Chicago, Mr. Stewart, Secretary of the Federal Reserve 11411k (4 St. Louis, Mr. Mehornay, Deputy Chairman of the Federal Re— of Kansas City, and Mr. He, Secretary of the Federal Re— of San Francisco, stating that the Board approves the es— t4b1i8hillent without change by the Federal Reserve Banks of St. Louis 4"844 Fr ancisco on December 14 and by the Federal Reserve Banks 1926 12/17/43 -2Of New York, Philadelphia, Cleveland, Chicago, Kansas City, and San CO on December 16, 1943, of the rates of discount and purchase their existing schedules. Approved unanimously. It was reported that Lafayette Washington, a junior mail clerk inthe S ecretary's Office, was being retired, upon his application, as or February' 1, 1944. Memorandum of this date from Mr. Morrill, submitting the reskon of J. W. Belt as acting building manager in the Secretary's 411 " , to become effective as of the close of business on April 28, 19LL and recommending that the resignation be accepted as of that date The resignation was accepted. Ot Letter to Mr. Lassiter, Chairman of the Federal Reserve Bank C vild, reading as follows: "In accordance with the request contained in Mr. lialdents letter of December 9, 1943, the Board of Govapproves the payment of salary to Mr. Adolph C. Blenert, Federal Reserve Agent's Representative at the 1timore Branch, at the rate of 0,600 per annum, and he Payment of salary to Mr. T. Wesley Bagby, Federal atserve Agent's Representative at the Charlotte Branch, the rate of ,,160 per annum, both increases to be .1-fective January 1, 1944." Approved unanimously. kicthr. Letter to Mr. Leach, President of the Federal Reserve Bank of ) reading as follows: 12/17/43 -3"This is in reply to your letter of December 1943 regarding the payment of salary to Mr. J. P. : , et the rate of ;42,880 per annum, the salary which been receiving for a number of years and which is cess of the maximum annual salary provided in the nel classification plan for the position to which 11, Green he has in expersonhe is now_assigned. „ "In accordance with your request, and in view of 'Ile circumstances, the Board approves continuation of payment of salary to Mr. Green at the rate of ,12,880 per an1111111 until he is retired upon reaching the age of 65." Approved unanimously. Letter to Mr. Nardin, Federal Reserve Agent at the Federal 11"1"ve Bank of St. Louis, reading as follows: "As the Boardrequested in your letter of December 10, 1943, of Governors approves the payment of salaries toyessrs. Garland H. Parsell, Carl Ritzel, and John A. 1, ", Federal Reserve Agent's Representatives at the e2uisville, Memphis, and Little Rock Branches of the Fed61a1 Reserve Bank of St. Louis, at the rates of $2,880, 12(), and 3,000 per annum, respectively, effective "IlarY 1, 1944." Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank of 4 1140-, reading as follows: anr4 "This refers to your letter of October 22, 1943, Bo- a subsequent conference which representatives of the ,,,ard had with your Mr. 'Wayne and Mr. Boushall, President Of Plan Bank of Virginia, regarding the question that bank is admitted to membership the Morris c_an Corporation of America and the Industrial Finance 14710?ration would be holding company affiliates of the I*11T,Plan Bank of Virginia. po the Board has carefully reviewed the facts and proactions discussed in Mr. Wallace's memorandum of 1928 12/17/43 -4"October 18, 1943, and concurs in his conclusion that if the Morris Plan Bank of Virginia should be admitted to membership after such proposed actions have been taken neither the Morris Plan Corporation nor the Industrial .111ance Corporation would be a holding company affiliate of the bank under those parts of the definition which refer to ownership or control by a company of more than 50 per cent of a member bank's outstanding shares or more than 50 per cent of the number of shares voted for the election of directors of a member bank. It is understood that in connection with any application which may be led by the bank for membership the Federal Reserve ank will make an investigation to determine whether or not the Industrial Finance Corporation or the Morris rtan Corporation 'controls in any manner the election ° of a.majority of the directors' of the Morris Plan Bank t vlrginia. On the basis of such investigation, the ?ard when it considers the application for membership i 11 consider whether or not under this part of the holdnrolg Company affiliate definition the Industrial Finance !T?ration or the Morris Plan Corporation would be a t04411ng company affiliate of the bank when it is admitted 0; membership. It may be noted that this is a question 8, fact which it may be pertinent for the Board to conirlIder at any time after the bank is admitted to membership a the light of all the circumstances which may exist at nY particular time. v, "It has been noted that the Morris Plan Bank of ' t rginla owns almost all of the stock of the Morris Plan 41k of Washington. However, it is understood that if ahLMorris Plan Bank of Virginia is admitted to memberit contemplates disposing of its stock in the Morris ank of Washington." V 4 t Approved unanimously. Letter to Mrs. Valerie R. Frank, Secretary of the Retirement Ye.te °f the Federal Reserve Banks, Federal Reserve Bank of New Ntaci.41.1 e as follows: Y01.1 "Under date of October 30, 1943, the Board advised . its approval of the amendments to sections 1, 7, 1_929 12/17/43 -5- , and 11 of the rules and regulations of the RetireSystem to provide for a separate retirement plan 1°r employees of the Board of Governors. "Pursuant to the provisions of section 10 of the 1111es and regulations of the Retirement System, as thus !"nded, the Board of Governors has adopted the resolutlon enclosed herewith establishing the 'Board of Goverre Plan'. This Plan as embodied in the enclosed reso,ution has been approved by the Board of Governors and 'te filed with the Retirement Committee in accordance with the provisions of the said section 10. "In connection with the reservation of the right ' ct the Board not to make the Plan effective in certain leYeumstances as provided in the last sentence of the .rst paragraph of the resolution, you are advised that 2 're than two-thirds of the members of the Retirement !stem who were employees of the Board in a pay status T the date of adoption of the resolution and on December , 1) !1943 elected to accept the Board of Governors Plan Io 'ceore the close of business on December 15, 1943, in acwith the provisions of paragraph numbered (1) uI the said resolution." r I Approved unanimously. M emorandum dated December 16, 1943, from the Board's Personnel Cottitttee submitting, and recommending approval of, a proposed budget el)lrering the expenses of the Board of Governors for the year 1944. kth the budget was submitted a memorandum dated December 14, 1943, NIN[r. Morrill, stating (1) that, due to the necessity of having a ellt-off date to permit the preparation of the budget, the divisions ot the Board's organization were requested to submit their respective blIdeets to the Secretary's Office not later than December 1, 1943, 411(1) therefore, appointments, resignations, salary changes, or other 1930 12/17/43 -6- acihstments approved by the Board subsequent to that date (or 81101 earlier date as of which the individual division budget was PrePared) and not provided for in the budget would increase or decl'eaee the budget for 1944 accordingly; (2) that the budget did not include employees on military leave except to the extent that provision had been made for contributions on their behalf to the retirement systeland re imbursement of premiumo on national service life insurance; 41(1(3) that no provision had been made in the budget for (a) any necesearY additional contribution to the Retirement System of the Fed"al Reserve Banks to cover accrued liability under the Board of Gov6111 " s Plan in excess of the funded accrued liability under the Bank Plan or (b) fees and expenses of Mr. Neth Leachman's law firm during the year 1 944 in connection with the Transamerica matter. The budget as submitted was as follows: Salaries Retirement Contributions Total Personal Services ,31,619,459.85 1L5,513.25 T raveling Expenses Postage and Expressage Telephone and Telegraph Printing and Binding Stationery and Supplies Furniture and Equipment Books and Subscriptions Heat, Light, and Power Repairs and Alterations (Building and Grounds) 111,750.00 2,048.00 551835.00 60,140.00 19,000.00 81975.00 81 290.00 28,000.00 !I,',1,764/973.10 4,400.00 1931 12/17/43 -7-- ezyc Repairs and Maintenance (Furniture and Equipment) Medical Service and Supplies Insurance Miscellaneous Total Non-Personal Services Grand Total 3,930.00 1,400.00 5,300.00 16,005.00 325,073.00 $2,090,046.10 Approved unanimously. Thereupon the meeting adjourned. Secretary. Vice Chairman.