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1_694 A meeting of the Board of Governors of the Federal Reserve 8Yetem was held in 'Washington on Wednesday, December 3, 1941, at 11:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper 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 hereinreferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Feder , Reserve System held on December 2, 1941, were approved unani- M01181 . Memorandum dated November 27, 1941, from Mr. Paulger, Chief c3f the Division of Examinations, recommending that the designatio of n lesista-rut Federal Reserve Examiner Thomas P. Howard be changed to Fedel ' al-Rese rve EXaminer, with an increase in salary from $3,400 to $3,600 Per nv,_ '‘urit11111 both effective as of January 1, 1942. Approvedunanimously. M r thereemo andum from Mr. Nelson, Assistant Secretary, submitting eigriati°r1 of Paul T. Phinney as a clerk in the Secretary's Of"eel t0 becoe effective as of the close of business on February 1942, a 4) recommending that the resignation be accepted as of that date. The resignation was accepted. 1695 12/3/ha -2Letter to Mr. Hill, Vice President of the Federal Reserve Bank of Philadelphia, reading as follows: "In accordance with the request contained in your letter of November 29, the Board approves the designations of the following employees of the Reserve Bank as Special assistant examiners: Arthur J. Bartels Joseph W. O'Brien Robert Wharton Clement Joseph Shandle John J. Kiefer George C. Haag Harry K. Margolf, Jr. Edward P. Munro Edward S. Stouch" Approved unanimously. Letter to Mr. Powell, First Vice President of the Federal Reselnre Bank of Minneapolis, reading as follows: "Referring to your letter of November 24, 1941, the Board - of Governors approves the payment of salaries to the officers of the Helena Branch shown below for the Period ending May 31, 1942, at their present rates which, ' e°rding to our records, are as follows: C. J. Larson Assistant Manager A. W. Johnson Assistant Manager $13520) "It is understood from Mr. Peyton's letter of.NoI er 25, 1941, that Mr. Larson is to be brought into j e Head Office for a training period and that Mr. . unns°n's appointment as Assistant an Manager will terminate --n return to the Helena Branch. re „lit Larson's will be appreciated if you will advise the efti ve date of the above appointments; also, the effecHel:ncaltar2fl. Hoerr's resignation as Cashier of the Z Approved unanimously. Letter abl 0Pranei 8 prepared for the signature of Chairman Eccles to HonorBiddle, Attorney General of the United States, reading as "The Co mmissioners of the District of Columbia have 1696 12/3/41 -3- "directed the Assessor to place on the list of taxable Property the lot s and building held and occupied by the Board of Governors of the Federal Reserve System between 20th and 21st Stre ets, north of Constitution Avenue, Northwest, Washingt on, D. C., and have submitted to the Board tax bills covering such property for the fiscal years 1938, 1939, and 1940 in the aggregate amount of 200,985.86. Under date of Dece mber 3, 1941, the Commissioners published an advertisement in a local newspaper listing real estate Which would be sold in the office of the Collector of Taxes beginnin g on January 6, 1942, for default in the Payment of taxes and included in such list the lots and building above described, with taxes indicated to be due thereon in the aggregate amount of 315,019.04. The Comrnissioners have also directed the Water Registrar to remove the Federal Rese rve Building from the list of those entitled to the free use of water. "The property of the Government of the United States is not legally taxable by the District of Columbia the , and action of the Distri ct Commissioners, therefore, raises a question regarding the status of the Board of Governors as an establishment or part of the United States Gove rnnt. It is clear fro m the history of the enactment of n!s Federal Reserve Act that Congress created the Board Of Governors (formerly known as the Federal Reserve Board) a 'strictly governmental organization' and this is c0n1:trmed by an opinion rendered by the Attorney General of United States, under date of November 16, 1914. B„ Board In view of the governmental functions which the performs and the nat ure and importance of the re,r1sibilities with which it is charged under the law, l'iDee Board feels that it is import ant that no doubt should lispermitted to arise as to its status as a part or estabshot2ent of the Government, and accordin , gly, that it to ,_d not accede to the view that its prop erty is subject ment6axation by the District of Columbia when other Govern_ _Property is the not so subject. In the circumstances, 0111 4loard respectfully requests, pursuant to the term s thathe Executive Order of the President dated May 31, 1918, cot,„" aPpropria te se;Zs,soners of theproceeding be instituted against the District of Columbia to quash the asor taxes which has been made or to enjoin their for such other reli ef as may be deemed ad- T ' 1 697 12/3/41 -4- "Your attention is invited to the fact that the District of Columbia proposes to sell this property at a sale beginning on January 6th next and, accordingly, you n11, I am sure, appreciate the necessity of prompt action in this matter. "In view of the Board's interest in the matter and the specialized nature of the subject, it will be appreciated if Your office will consult with the Board's Counsel in the consideration of this matter and in the institution and prosecution of the suggested proceeding. ,. "For your information in connection with this matter ./.1.ere are enclosed herewith copies of pertinent communicar ct eceived by the Board from the Commissioners of the Columbia, together with copies of opinions _elidered lop; the e0J7umbia and by Corporation Counsel of the District of counsel for the Board of Governors with reference to the question at issue." TtliZi Approved unanimously. Boston Letter to Mr. Curtiss, Chairman of the Federal Reserve Bank of reading as follows: forth"Your letter of November 26, 1941 in which you set the views of the Board of Directors of your Bank the question of participation by the Bank in the foraccounts maintained by the Federal Reserve Bank of ork, has been brought to the attention of the Board T'nors. The Board appreciates very much the conand — ,a' 4-on which your the directors have given to this matter frankness with which they 4.a.on t, have stated their posi"Since, as nted at thestated in your letter, a committee was last Presidents' Conference to study .airliesquestions that have been raised in connection with °rat !accounts, the Board will defer any further considit 4.°11 of the subject until the rePort.11 committee has submitted :1:1 oriY sid:T :Ti Approved unanimously. Letter to Mr. W. J. (It the pa Snow, Jr., Director of Finance and Accounts rill Credit Administration, United States Department of Agriculture, 1698 12/3/41 Ileading as follows: "In reply to your letter of November 22, there is attached a list showing the amount of Federal intermediate credit bank debentures held by certain banks as of December 31, 1940 and June 30, 1941. The suggested form which accompanied your letter requested the par amount of such debentures, but in accordance with a telephone conversation with Mr. Patterson of pur office, we are furnishing the book values as carried LT the banks and as shown by their reports of condition. understood that you desire these figures for 'riternal "It is , use in your organization be and that they will not published." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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