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22.60 A meeting of the Board of Governors of the Federal Reserve 88tem was held in Washington on Thursday, December 3, 1942, at 11:00 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak 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 hereinitt'er referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Fe er al Reserve System held on December 2, 1942, were approved unani- 11101181y. Memoranda dated December 1, 1942, from Mr. Morrill, submittitle the resignations of Edward Cook as a laborer and of Mrs. Mary B. 44411a1.1. as a charwoman in the Secretary's Office, to become effec%e as of the close of business on December 11, 1942, and January 15, 190, resnectivelY, and recommending that the resignations be accepted of those dates. The resignations were accepted. Letter to the ?residents of all the Federal Reserve Banks, g as follows: 000,1Z-1 12/3/42 -2- "In view of the increasing difficulties of obtainand retaining adequate staffs during the period of "le war emergency, the Board cancels letters X-9798 dated j .Lanuary 21, 1937 and 5-275 dated July 17, 1941 relating t,0 the retention in service or reemployment of officers and employees after attainment of age 65. "Whenever by reason of the employment situation it would be to the advantage of your bank to retain the servces of an officer or employee after he reaches age 65, .Vle Board will offer no objection to his retention on a emporary basis, whether or not his retirement is deferred 1) ,11rsuant to the resolution of the Retirement Committee Qated November 28, 1942, with the understanding on his Part that such temporary employment may be terminated at nY time. The Board likewise All offer no objection to bne temporary reemploym ent, with the same understanding, °f former officers or employees who are over 65. "Each such case of retention or reemployment should be reviewed not less frequently than once a year and a record made of the action taken. "This letter of course does not modify the existing 1111,!'ocedure with respect to the approval of salaries of ofleers nor apply to the Presidents and First Vice Presi, L'ents,t, Approved unanimously. Telegram to Mr. Fletcher, Vice President of the Federal Reserve tank of Cleveland, reading as follows: "Re absorption by PeoplesCity Bank, McKeesport, Pennsylvania, of Union Trust Company, Clairton, PennSylvania. Board agrees with opinion expressed in your -(1-letter of November 18, 1942, that the logical proce, IIfe Would be a sale to or consolidation with the local , ' t7Lional bank which, it is understood, has been negoo ating for the business. However, if, as a result of 'rrent negotiations, Peoples City Bank purchases assets and assumes deposit liabilities of Union Trust CornBoard approves establishment and operation of a ' ac nch at Clairton, Fa., by Peoples City Bank and the b crnisition of banking premises of Union Trust Company Peoples City Bank for approximately 00,000. Such 013Proval is on condition that (1) your counsel is of the Pinion that the branch may be legally established and 00..49 12/3/42 —3— "is satisfied as to the other legal aspects involved, ( 132) assets acquired by Peoples City Bank are approved Y an examiner for your bank, and (3) prior approval °f Proper State authorities is obtained." Approved unanimously. Telegram to 1.1.r. Leland, Chairman of the Federal Reserve Bank Or 0114 ' cago, stating that the Board of Governors of the Federal Reserve 83rst„ authorizes the issuance of a general voting permit, under the 8ions of section 5144 of the Revised Statutes of the United States, to the "Wisconsin Bankshares Corporation", Milwaukee, Asconsin, entiqin g such organization to vote the stock which it owns or controls of "The Baraboo National Bank", Baraboo, Wisconsin, at all meetings of 114rehoid ---4ers of such bank, and that the period within which a permit kay be issued pursuant to the authorization contained in the telegram is itmi ted to 30 days from the date of the telegram unless an extensio4 °f time is granted by the Board. Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, Nark as follows: ran,_ "In continuance of the practice of recent years, arements have been made to furnish the Federal Reserve 7 117 8 a supply of work sheets (form F.R. 456) for their ane in compiling member bank operating ratios for 1942 in furnishing such data to the Board. The printing ,e the work sheet was delayed pending consideration of sugp sted revisions in the form of earnings and dividends ret. It is anticipated now, however, that we shall be aj 'Le to forward the work sheets to you in the next few days. ro "The work sheet will not differ much from that used the 1941 ratios. Some changes were made necessary by the revision of the earnings and dividends report form. 2°6'3 12/3/42 -4"These and other changes were all worked out in cooperation with the Presidents' Conference Committee on Member Bank Operating Ratios. copies of form "According to our records, F•ft. 456 were sent you for compiling the 1941 data. In the absence of advice to the contrary, the same TIllber of copies will be forwarded to you for compillng the 1942 figures. "The same procedure as followed last year should be observed in sending the completed work sheets to the Board after completion of the tabulations usually zade at your Bank." Approved unanimously. Letter to Mr. Eugene E. Thompson of the Senate Small Business Celtlitt-ee, reading as follows: "Reference is made to your telephone request to Mrs Roland I. Robinson for information in regard to the extent to which Federal Reserve Banks deal with customers other than member banks. "The Federal Reserve Banks make advances for the , 1, 311rPose of providing working capital to established in' : . 118tr1a1 or commercial businesses that are unable to obain accommodation from the usual sources, and discount r Purchase such advances made by financing institutions, in, tr cl‘lding nonmember banks. They also make commitments to 4e such advances within a specified period at the Op, 4 1311 of the industrial or commercial concern or of the 'lnancing institution. n_ "Advances secured by direct obligations of the : 41ited States are made by the Federal Reserve Banks to :!'lclividuals, partnerships and corporations, and they purenase in the open market United States Government secuIlties and, when offered, bankers' and trade acceptances. United States savings bonds are sold to the public Y the e Federal Reserve Banks, and they receive subscrip°ns from the public for other United States securities '1.uct sell securities from their own holdings to banks and n!alers. The Federal Reserve Banks deliver newly issued a. tted States Government securities to the purchasers effect denominational and other exchanges of secu: Ities and redemptions for the owners. United States ngs bonds are held in safekeeping by the Federal Reel've Banks for the owners on request, and they also hold J 41 0Z^Z;b4 12/3/42 -5- "Treasury bills and certificates of indebtedness in safekeeping for nonmember banks. To a limited extent Federal Reserve Banks cash . ulted States Government checks on presentation by inda-vIduals, and they also have direct dealings with the Public on a relatively small scale in supplying curand coin, particularly as regards those that ,,lave a considerable volume of such transactions. As Federal Reserve Banks do not maintain deposit acfor such customers, it is necessary that any transactions involving deposit credit be made for the account of a member bank. "Nonmember banks may also make arrangements to receive coin and currency from the Federal Reserve nks and, under conditions specified in the Federal "eserve Act, may be granted the privilege of partici1ating in the check clearing and wire transfer ar, ,angements." 1 Approved unanimously. Thereupon the meeting adjourned. Secret ry. Appro Chairman.
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