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1957 A meeting of the Board of Governors of the Federal Reserve aSrtiteat waS held in Washington on Wednesday, December 22, 1943, at 111430 .m. PRLSENT: Mr. Mr. Mr. Mr. Szymczak McKee Draper Evans Mr. Mr. Mr. Yr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinreferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pedes__, Reserve System held on December 21, 1943, were approved unani11101184,.. Memorandum dated December 20, 1943, from Mr. Morrill, recan11*1411g that the basic salary of Paul H. Berntson, a clerk in the ate„ 'etarY's Office, be increased from $2,400 to 2,600 per annum, ef_ teetiVe January 16, 1944. Approved unanimously. Letter to Mr. Hays, First Vice President of the Federal Reserve Cleveland, reading as follows: ad . "This refers to your letter of December 13, 1943, otitlsing that the Executive Committee of the directors °11 .!' Bank on December 9, 1943, approved payment of theYh san,'14-ls itemized in your letter submitted by Squire, 414 ' L er8 & Dempsey, counsel for your Bank, in the total se°111 of q,500. Of this amount, .'"750 covers fees for I'vlees under Regulation V from October 1 to December 1958 12/22/43 -2- "31, 1943, 500 for services on behalf of the 1%r Department and 250 for services on behalf of the Navy Departal_ent; 1,250 covers special services in connection with etirement System matters from July 1 to December 31, 1943; and ;1500 covers services in connection with the revision of Regulation N from July 1 to December 31, 1943. "It is noted that the amounts listed for Regulation V 0 perations will be included in your claims for reimbursement to the War and Navy Departments, respectively, and that the amounts listed for services in connection Retirement System matters will be prorated among the Federal Reserve Banks. t "The Board of Governors approves the payment of 4,500 f; ) . _Squire, Sanders & Dempsey for their services as speci4.eu in your letter." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, readtrig as follows: "A question has been raised as to the proper interonteai of the special condition regarding commitment m(ses Which is required to be included in guarantee agreec:nts executed with respect to so-called VT loans. That l ition, as set forth in the enclosures with the Board's 'iter of August 30, 1943 (S-680), reads as follows: '(B) The Financing Institution shall pay to the Reserve Bank at the end of each monthly or quarterly period, as fixed by the Reserve Bank, an amount equal to a percentage of any 2ommitment fee payable by the Borrower to the Financing Institution, which percentage shall be the same percentage as that specified in ection 16 of this agreement.' 1144._ The question raised is whether the part of the corn.,e to be paid to the Reserve Bank under this speeq1 condition should be computed upon the basis of the to 1-re amount of the commitment fee payable by the Borrower glaahe Financing Institution or merely on the basis of the gesrtanteed portion of the loan. The question has been sugt01,thed bY the fact that, under section 16 of the standard °f guarantee agreement of April 6, 1943, the amount ,, 1_959 1/43 —3— "of the guarantee fee is computed on the basis of that Part of the unpaid principal amount of the loan which the Guarantor is obligated to purchase. a. It is to be noted, however, that the special conton does not require that the part of the commitment see payable to the Reserve Bank shall be computed in the awe manner or on the same basis as the guarantee fee is computed under section 16, but merely incorporates the , l r4-taislga specified in that section. Accordingly, we "ave been advised that it is the intention of the War DeIlvan.rtment, the Navy Department, and the Maritime Commission hat, under the special condition in question, the Guarantor, r°ugh the Reserve Bank, should receive a specified percentage of the entire commitment fee payable by the Borrower IT30 .e the Financing Institution, and that the condition should eu so interpreted. The specified percentage in any case triad be the same as that stated in section 16 of the pareular guarantee agreement." Approved unanimously, together with letters to Colonel Cleveland, Mr. Coolidge, and Lieutenant Griffith of the War and Navy Departments and the Maritime Commission, respectively, transmitting copies of the above letter for their information. Letter prepared in Spanish for the signature of Mr. Ransom to the de la Republica, Bogota, Colombia, reading as follows: itn,_"The representatives of this Board, Messrs. Bray B;,7°nd 4 and Robert Triffin, who recently visited your -" in the course of an extensive trip made by them to wasucrtant centers in South America, have just returned to re "ington. They confirm and emphasize in their verbal by13,2!ts the account they had already given us more briefly ' ace ill of the abundant and gracious hospitality which you to °rded them. We wish to assure you that these courtesies tio17111r representatives are deeply appreciated. In par' 4r 'We are gratified by your generous willingness to have! in th'°n Enrique Davila join them in Asuncion and take part pe work being done there for the Banco de la Republica bk.il, ! i raguay. Senor Davila's familiarity with South American tical made his cooperation of the utmost prac' value. His work will be deeply appreciated by the I 96G 12/22/43 -4: Paraguayans, and we ourselves feel honored and happy in f_iaving Your Bank associated with us in the work that was being done for them. "We are also pleased to know that our project for the Preparation and publication of a series of studies of central ? / anking in the Latin American countries interests you and that the study already prepared on your country has had the benefit of corrections and improvements by members of your staff. We hope to publish the Colombian study in the Federal Reserve Bulletin in the near future. The reception which our representatives say the project received elseWhere indicates that the prospect of these studies is 7e-Lco1ed, that there is general willingness to cooperate 111 their preparation, and that they will therefore be of pr actical usefulness. tI,4 "One of the chief benefits that we anticipate from wil.8 program will be the closer contacts it will bring us t,21 our sister institutions in Latin America. The opportunity to exchange views from time to time on the central b4l a. problems of our respective countries is certain to elkilg °f great mutual advantage. To that end, and also in il:der that we may show our genuine appreciation of your r_ °11ghtfulness, courtesy, and generous kindness to our repiessintatives, we look forward to having from time to time o the future the pleasure of visits from your directors, -0-c?rs, and other members of your staff. 1:13;ease accept this renewed assurance of our cordial esteem Approved unanimously, together with a similar letter to the Banco de la Republica Oriental del Uruguay, Montevideo, Uruguay, and the following letter to the Banco de la Republica del Paraguay, Asuncion, Paraguay, both for Mr. Ransom's signature: tow:Mr. Bray Hammond and Mr. Robert Triffin have returned hitp;:qshington from their work in Asuncion and speak in the threat terms of the courtesy and attention that were shown bY your Bank in the course of their stay. We have heard 44,4" great interest of their accomplishments and suggestions, s„ c°rdially hope that the fruits of their efforts may be 4:?tantial. We were especially pleased that they had the lstance of don Enrique Davila of the Banco de la Republica, and feel sure that this cooperation has been of 1961 12/22/43 —5— If great advantage both to you and to ourselves. "The visit of Mr. Harmodio Gonzalez to Washington is recalled with pleasure, and we are happy to feel that the close association which has developed between you and ourselves will continue to be a source of pride and satis— faction to us both.” Under date of December 17, 1943, the Board received from Mr. "H. McReynolds, Administrative Assistant to the President, ad— that the President had indicated that the heads of departments and 4? nei es of the Government might, in their discretion, permit offices r estahl4 -, shments to be closed, or any employees whose services could be 813e'red to leave their work, not earlier than two hours in advance the usual closing time on Christmas Eve, December 24. In accordance % this advice, the Personnel Committee recommended that the Board e34tici this permission to its employees and that the division heads be 44th°1-*ized to arrange accordingly with respect to the employees in their N)ecttve divisions. Approved unanimously. Thereupon the meeting adjourned. f4JflWtLef Secretary. 4IPProved:
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