The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
2410
al Reserve
A meeting of the Board of Governors of the Feder
ber 31, 1942, at 11:00
SYstem was held in Washington on Thursday, Decem
a
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Ransom, Vice Chairman
Szymczak
McKee
Draper
Evens
Mr. Morrill, Secretary
Mr. Bethea, Assistant Secretary
Mr. Carpenter, Assistant Secretary
the matters hereinThe action stated with respect to each of
after referred to Was taken by the Board:
Governors of the
The minutes of the meeting of the Board of
1942, were approved unaniFederal Reserve System held on December 30,
mously.
the Board's staff,
Memorandum dated today to all members of
reeding as follows:
ng
"Effective XanuarY 4, 1943, the official worki
p.m.,
5:15
to
a.m.
8:45
from
be
hours of the Board will
through Satwith 30 minutes for lunch each day, Monday
duties reurday. For those classes of employees whose
hours of
quire working other than the official hours,
ctive
respe
duty will be assigned by the heads of their
dance
accor
divisions. The change in daily hours is in
as
yees,
emplo
with the wishes of a large majority of the
ire.
ionna
quest
indicated by their replies to the recent
the cafe"Since Saturday will be a full work day,
as has
day
teria will provide the same service on that
week.
the
been customary on the other work days of
2411
12/31/42
-2-
"The eight hours overtime during the 48 hour official
work week will be paid for at rates equal to those authorized by the Senate Toint Resolution which recently became
effective. The present practice of granting compensatory
leave for overtime in excess of official working hours is
being continued.
"The overtime payment made for the first half of
payDecember was based on a 44 hour week. The overtime
is
er
ment being made today for the last half of Decemb
based on a 44 hour work week for the period December 16period
December 23, inclusive, and a 48 hour week for the
December 24-December 31, inclusive, since Saturday, December 19, was a four hour day, while Saturday, December 26,
was an eight hour day.
"Some questions have been raised as to the method of
computing overtime. Overtime is computed on a 40 hour
basic week, and for employees on an annual salary basis
Payment for overtime during the official hours will be calculated on an annual basis and paid semi-monthly in equal
ate,
amounts. This means that the payments will not fluctu
in
ays
Saturd
depending on whether there are two or three
a period. Under the Government regulations just issued,
basis:
Payment for overtime is computed upon the following
onebe
The hourly rate is considered to
eighth of the daily pay, which in turn is
considered to be 1/360 of the annual salary.
Overtime is then paid at one and one-half
times the hourly rate so determined.
under
"On an annual salary of 5.1,440, for example,
and
.134.00,
is
rate
the Government regulations the daily
week
hour
the hourly rate is 50ยข. Overtime for a 48
number of
amounts to $6.00, computed by multiplying the
hourly rate
the
hours of overtime by one and one-half times
to
amount
would
(8 times 750. For 52 weeks the overtime
312, or 21.6% of the annual salary.
payable
"Under the Toint Resolution overtime is not
per
.2,900
of
on any part of basic compensation in excess
would
which
made
annum and no payment for overtime can be
cause the total of basic compensation and overtime compen
sation to exceed a rate of $5,000 per annum.
be
"Absence on approved annual or sick leave will
overof
amount
the
charged to leave and will not reduce
the
time compensation to which an employee is entitled for
official work week.
me
"Questions have been asked as to whether overti
ng
computi
in
ration
compensation is to be taken into conside
1
2412
-3-
12/31/42
tax
"retirement allowances and contributions and Victory
payments.
Retirement allowances and contributions, both
and
under the Federal Reserve Retirement System
comare
m,
Syste
ement
Retir
ce
Servi
the Civil
nts
puted on basic salaries exclusive of payme
the
for
tions
deduc
no
fore,
There
for overtime.
ime payretirement system will be made from overt
ments.
ime.
The Victory tax, however, is payable on overt
made
be
Deductions for the tax, therefore, will
nts.
payme
ime
from overt
help"It is hoped that these explanations will prove
you
that
sted
ful, but if you have any questions, it is sugge
of your
take the matter up with the head or assistant head
tion."
istra
nnel
Admin
Perso
of
ion
Divis
the
division or with
Approved unanimously.
ve Bank of
Letter to Mr. Young, President of the Federal Reser
Chicago, reading as follows:
Decem"Receipt is acknowledged of your letter of
Detroit
the
of
ber 22, transmitting a copy of the By-Laws
revised
as
go,
Branch of the Federal Reserve Bank of Chica
17, 1942.
ber
by your Board of Directors at its meeting Decem
ance
ntinu
disco
"Among the significant changes are the
of
n
natio
desig
of the office of managing director and the
as
go
Chica
of
Bank
a vice president of the Federal Reserve
has
Board
The
h.
the senior executive officer of the Branc
C. Harris, who
heretofore apnroved the salary for Mr. E.
dent to be
presi
has been elected by your Board as vice
accordance with
placed in charge of the Detroit Branch. In
ing to branches
relat
the recent amendment to the regulation
ves the disappro
of Federal Reserve Banks, the Board also
and the
tor
Direc
continuance of the office of Managing
the active
as
Bank
your
designation of a vice president of
manager of the Branch.
of Di"In accordance with the action of your Board
the
of
tors
direc
the
of
r
rectors in reducing the numbe
a
nting
appoi
not
is
Board
the
Branch from seven to five,
ber
g Decem
director to fill the vacancy in the term endin
Avery.
Mr.
of
n
natio
resig
the
by
ioned
31, 1943, occas
By-Laws
"It has been noted that, while the revised
fee of $10 for
retain the present provision for director's
241_3
-4-
12/31/42
"each meeting of the Board, section 10 of Article II with
by
respect to compensation of directors has been revised
the addition of the following sentence:
'rhen the Directors of the Detroit Board attend meetings at the Chicago office, or elsewhere in the District, they shall be entitled
to receive a fee of 20.00 for each meeting
attended and a per diem of 20.00 for each day
s
they are required to be absent from their place
a
and
of residence to attend such meetings,
ling
further allowance for actual necessary trave
ngs.'
expenses incurred in attending such meeti
on this revised
"The Board approves the payment of fees
basis."
Approved unanimously.
of the Federal
Letter to Mr. Dillard, Vice President and Secretary
Reserve Bank of Chicago, reading as follows:
Board
"You are correct in your understanding that the
ncompe
of
1942,
t
1,
Augus
has approved payment, effective
the
with
dance
accor
in
sation and expenses of directors
ber 4, 1942."
resolution transmitted with your letter of Decem
Approved unanimously.
al Reserve Bank of
Letter to Mr. Peyton, President of the Feder
1-inneapolis, reading as follows:
inluiring
"This refers to your letter of December 21
Citizens
the
of
case
the
in
as to the follow-up procedure
Bank of Montana, Havre, Montana.
rship was
"When the application of this bank for membe
regard
with
d
raise
were
ions
presented to the Board, quest
less
hat
somew
of
nity
a
comuuu
in
bank
to the need for a new
ished
establ
dy
alrea
were
banks
two
when
than 6,000 population
was
new bank
there; the fact that the formation of the
degree by friction
le
derab
consi
a
to
about
apparently brought
and the
between the members of its proposed management
the fact that
management of one of the existing banks; and
bank depends
for the present at least the financing of the
in view of your
largely upon one man. The Board felt that
the application
recommendation it was justified in approving
2414
12/31/42
"for membership but in the absence of any statement that
in view of the unusual circumstances in the case you contemplated closely following the situation until the bank
becomes well established it seemed desirable to mention
the need for such action. It was for this reason that the
the Board
statement to which you referred was included when
ship."
member
approved the bank's application for
Approved unanimously.
as,
Letter to "The Citizens National Bank of Hope", Hope, Arkans
reading as follows:
Sys"The Board of Governors of the Federal Reserve
fidufor
ation
tem has given consideration to your applic
not
when
act,
to
ciary powers, and grants you authority
exe,
truste
as
law,
in contravention of State or local
bonds,
and
stocks
ecutor, administrator, registrar of
guardian of estates, receiver, committee of estates of
lunatics, or in any other fiduciary capacity in which
which
State banks, trust companies or other corporations
ed
permitt
are
banks
l
come into competition with nationa
exerthe
as,
Arkans
of
State
to act under the laws of the
ons
cise of all such rights to be subject to the provisi
the
of
tions
regula
the
of the Federal Reserve Act and
Board of Governors of the Federal Reserve System.
e the
"This letter will be your authority to exercis
prepathe
g
pendin
Board
the
by
fiduciary powers granted
authorization,
ration of a formal certificate covering such
."
course
due
in
which will be forwarded to you
Approved unanimously.
e Banks,
Telegram to the Presidents of all the Federal Reserv
reading as follows:
that all
"Replies to Board's December 30 wire indicate
earnings
Federal Reserve Banks will charge this year's
ment
Retire
with their portion of the $4,594,033 accrued
final
System liability and defer actual payment until
In Board's
action is taken by all Federal Reserve Banks.
ment System
published statement amount of payments to Retire
2415
12/31/42
-6-
"will be shown as a deduction from current net earnings
against caption 'Retirement System (interest base adjust
statein
ed
ment)'. Suggest that same procedure be follow
on Balance
that
tood
Unders
Bank.
your
by
ed
ments releas
drawn in
Sheet, Form 34, and in published statements checks
r
deposits'
'Othe
favor Retirement System will be included in
until paid or cancelled."
Approved unanimously.
e Banks, readLetter to the Presidents of all the Federal Reserv
as follows:
representa"Informal discussions have been had with
Maritime
tives of the War Department, Navy Department, and
of uniformity
Commission with respect to an apparent lack
in the vouchers submitted by the Federal Reserve Banks repursuant to
questing reimbursement for expenses incurred
these discusof
Executive Order No. 9112. As an outgrowth
with respect
made
sions, the following suggestions have been
mly to
unifor
apply
to the preparation of the vouchers which
number
the
in
being
the three Services, the only variation
of carbon copies desired of Form 1034:
Form 1034
d be
1. That the month or other period covere
Deof
shown in the second column, 'Date
livery or Service/.
third
2. That a uniform legend be shown in the
g as
readin
es',
column, 'Articles or Servic
agent
fiscal
follows: 'Expenses incurred, as
of the United States, for the
pursuant to Executive Order No. 9112'.
r be
3. That the total amount only of the vouche
exthe
(When
shown in the 'Amount' column.
es
branch
and
penses of both the head office
not
is
it
r,
are included in the same vouche
desired that separate totals be shown for
each office.)
Commis4. The Navy Department and the Maritime (white)
1034
Form
of
copy
one
sion each desire
and five copies of Form 1034a (yellow); the
two
War Department desires one white copy and
.
yellow copies
2416
12/31/42
-7-
"Documents supporting Form 1034
ment
1. One copy only of each supporting docu
ipted
rece
to
is desired. (This refers both
to
and
s
firm
bills furnished by outside
ten
certified statements prepared in typewrit
form by the Reserve Bank.)
ce and
2. When the expenses of the head offi
voucher,
same
branches are included in the
arranged,
be
ld
shou
the supporting documents
of exct
obje
by
for all offices combined,
em
syst
ent
irem
penditure ('Salaries', 'Ret
red
desi
not
is
contributions', etc.). It
ly
that the documents be arranged separate
and
ch,
bran
each
for the head office and
ndiseparate totals for each class of expe
ce and
offi
head
the
ture need not be shown for
each branch.
ary
3. It is recuested that 3 copies of a summ
voucher
each
in
uded
incl
statement of expenses
ched
atta
the
with
ce
rdan
be submitted in acco
d to
arde
forw
g
bein
is
h
whic
form, a supply of
exthe
When
r.
cove
rate
your Bank under sepa
inare
ches
bran
and
ce
offi
penses of the head
d'
bine
'com
the
her,
vouc
cluded in the same
ary statefigures only are desired on the summ
ment.
uding copies of
4. All supporting documents, incl
ther securely
toge
led
stap
be
telegrams, should
staDles
the
h
(wit
er
corn
in the upper left
rs should
pape
ed
fold
any
and
,
opening on top)
permit ready
be arranged in such a manner as to
inspection without unfastening.
Commission prefer that
"The Navy Department and Maritime
included in the head office
expenses incurred at the branches be
War Department prefers this
vouchers without segregation, and the
son officers are stationed
arrangement except in cases where liai
ests that separate
at the branches. The War Department relu
having liaison officers. None
vouchers be submitted for branches
the submission of sepof the agencies will object, however, to
is found more convenient
arate vouchers for the branches, if it
e."
to have the branches follow this procedur
Approved unanimously.
President of the Federal ReTelegram to Mr. Olson, Assistant Vice
serve Bank of Chicago, reading as follows:
izing new schedule of
"Retel today, no objection to circular
2417
12/31/42
"guarantee charges. Suggest you follow same practice as
heretofore in determining whether to charge minimum or maximum guarantee fee in case of 90 per cent guarantees involving
loans in excess of $150,000."
.Approved unanimously.
Telegram to 1.1r. Hale, 'Vice President of the Federal Reserve Bank
Of San Francisco, reading as follows:
"Re your wire December 30. Under guaranty agreement
guarantor, except during first 90 days of loan, would have
right after notice through purchase of loan to require transfer of collateral securing guaranteed loan. Accordingly, in
absence of any special circumstance which would leave voting
right of pledged stock after such transfer in member bank,
Board agrees with your conclusion that case would come within
Board's ruling of March 22, 1941, and would not result in
creation of affiliate relationship."
Approved unanimously.
Letter to Mr. Clerk, First Vice President of the Federal Reserve
Bank of San Francisco, reading as follows:
"Following receipt of your letter of December 23, 1942,
the
Governor Szymczak talked with Mr. Bell with respect to
cernotes,
y
Treasur
desirability of maintaining a stock of
s
in
Branche
the
tificates of indebtedness, and bills at
connection with the interdistrict transfer of such securinot
ties and was advised that the Treasury Department is
these
of
stocks
of
opposed, in principle, to the maintenance
stock
the
that
but
securities at the Federal Reserve Branches
purpose.
the
for
of such securities on hand is not sufficient
reIf all Branches were to be supplied, the additional stock
quired would be very substantial.
will keep
"It is understood, however, that the Treasury
ble at
practica
found
be
may
it
this matter in mind and that
of
supplies
limited
s
with
a later date to stock the Branche
r
transfe
trict
interdis
their
that
these securities in order
may be facilitated."
Approved unanimously.
Citizens Banking
Letter to Mr. John A. Scales, Cashier of the
Company, Sandusky, Ohio, reading as follows:
2418
12/31/42
"We have your letter of December 17 requesting inforthe security
mation regarding the proper composition of
,000 asset
$8,000
to
0,000
4;7,00
Portfolio of a bank in the
is of the
analys
any
e
compil
size group. The Board does not
ngs. Howgroupi
size
narrow
balance sheets of banks by such
Member
1942
30,
June
the
of
ever, there is enclosed a copy
find a
will
you
which
of
5
and
Bank Call Report, on pages 4
reserve
by
ities
liabil
and
assets
detailed classification of
own
breakd
r
simila
a
13
to
10
classes of banks, and on pages
these
While
on.
locati
by reserve classes and geographical
request, perhaps
Classifications do not exactly meet your
relationships in
ng
existi
ting
they will be useful in indica
different groups of banks.
investment poli"In order to make suggestions as to the
course be necesof
would
it
cies to be followed by your bank
t position
presen
bank's
the
sary to make a detailed study of
to make
not
Board
the
of
and its prospects. It is the policy
you
and
Clevel
in
are
you
time
such suggestions, but the next
H.
W.
Mr.
with
m
proble
this
s
might find it helpful to discus
Cleveof
Bank
e
l
Reserv
Federa
the
of
Fletcher, Vice President
certain general
land. You may possibly also wish to consult
published in the
ly
recent
policy
ment
statements on bRnk invest
July 1942
the
of
2
631-63
pages
on
Federal Reserve Bulletin,
"
issue.
1942
er
Decemb
the
of
issue, and pages 1190-1191
Approved unanimously.
Mr. Goldenweiser, DiMemorandum dated December 30, 1942, from
submitting, and recomrector of the Division of Research and Statistics,
the statistical and anarnending the approval of, a revised budget for
Federal Reserve Bank of Dallas
lytical function of the head office of the
for the year 1942.
se of S1,021,
The memorandum stated that the increa
ily expansion in
for which approval was requested, reflected primar
of work and an increase
Personnel made necessary by the larger volume
supplies, chiefly in conin expenditures for printing, stationery, and
at member banks in the disnection with the survey of commercial loans
ors.
trict that was initiated by the Board of Govern
Approved unanimously.
241_9
12/31/42
-10Thereupon the meeting adjourned.
Approved:
@FedFRASER