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2269 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, December 31, 1952. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Szymczak, Acting Chairman Evans Vardaman Mills Robertson Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Mr. Leonard, Director, Division of Bank Operations There was a discussion, at the instance of Governor Evans, of the expenditure of Federal Reserve Bank funds for oil portraits of retiring Reserve Bank chairmen. ) Governor Evans recalled that former Deputy Chairman Mehornay of the Federal Reserve Bank of Kansas City, raised the question with him in 1951 and that, after discussion at a meeting of the Personnel Committee, he wrote Mr. Mehornay a personal letter on May 31, 1951, in which he quoted from the memorandum regarding mementos to retiring di16)'945, rectors which was attached to the Board's letter of January to the Chairmen and Presidents of all Federal Reserve Banks on the subject of "discretionary expenditures". In his letter to Mr. Mehornay, Governor Evans also remarked that if the practice of having portraits in oil made of retiring chairmen were adopted by all the Reserve Banks, the sum total Of the cost could be considerable and might raise the question whether -2- 12/31/52 the expenditures could be regarded as "reasonable". Governor Evans said that he had heard no more concerning the matter from Mr. Mehornay or others at the Federal Reserve Bank of Kansas City but that he noticed recently that the Cleveland Reserve Bank had commissioned an artist to do an oil painting of retiring Chairman Brainard, which made him apprehensive that his letter to mr. Mehornay might have indicated a more restrictive policy than was actually followed. Mr. Leonard stated that he did not know exactly how widespread the practice was among the Federal Reserve Banks but that a review of the files and his observations during visits to the Reserve Banks inhad purchased pordicated that at least three or four of the Banks least some cases traits for their directors' rooms and that in at on the these were charged as expenses for furniture and equipment, grounds that they were comparable to such expenses. the matter was one It was the consensus of the Board that s which should be left to the judgment of the Reserve Bank director in the for decision as to the reasonableness of any such expenditure light of the Board's letter of January 161 1945, and that there was no need for Governor Evans to reopen the matter with the Federal Reserve Bank of Kansas City. It was suggested, however, that as a matter of information Governor Evans might ask President Leedy on some occasion 2271 12/31/52 _3_ whether the Bank had proceeded with a portrait of retiring Chairman Caldwell. Reference was made by Governor Evans to requests received from the Federal Reserve Bank of Cleveland for authorization of an additional expenditure of approximately $84,000 for air conditioning the Cincinnati Branch building and an expenditure of approximately 4310 000 for air conditioning the Pittsburgh Branch building, and a request from the Federal Reserve Bank of Boston for authorization to expend not to exceed 81,250,000 for air conditioning and modernizing the present Bank building. Following comments by Mr. Leonard on these programs, it was suggested that Mr. Leonard discuss the aforementioned projects with the members of the Board individually prior to action by the Board on the requests. Before this meeting there had been sent to the members of the Board copies of a draft of letter to Mr. Trieber, First Vice President Of the Federal Reserve Bank of New York, prepared in response to Mr. Trieberts letter of December 22, 1952, with regard to a proposed plan for handling local clearings of checks among certain banks on Long Island, the cost of which plan mould be shared by the Reserve Bank. To the draft of reply was attached a memorandum dated December 29, 12/31/52 1952, from Mr. Leonard commenting on the proposed plan. the view In discussing the proposal, Governor Mills expressed y a group of that subsidization in this form of an operation whereb indirectly for the Federal commercial banks would perform a service pondent banks as an Reserve System might be misunderstood by corres business" rather than effort on the part of the System to "attract an effort to expedite the check collection function. He went on to of check collections, Point out that, with the large groath in volume it appeared that steps might have to be taken by the Reserve Banks to take the form of the establishdecentralize the function, which might cts under e Ment of facilities at locations throughout the Reserv distri York Bank except that a Plan similar to the one proposed by the New the facilities would be operated directly by the Reserve Banks, who of the check collection aould assume the expenses involved as part function. r and his colleagues Governor Mills said that Mr. Treibe that the initiation of the seemed to lean toward the subsidy plan and Bank except for the broad Plan was within the province of the Reserve the expenses of the Reserve Banks. suPervisory power of the Board over viewpoint of the possible Nevertheless, looking at the matter from the establishment of permanent Reserve Bank-operated facilities at outshould be included in the letter points, he felt that a paragraph 2 4 CP"P0). 12/31/52 -5- to Mr. Treiber indicating that at the end of a trial period the Board would appreciate advice from the Bank as to the merits of inBank operation. stituting this sort of plan as a direct Federal Reserve ed his At the request of Governor Mills, Mr. Leonard express views on the proposal, stating that he also favored the ilea of estabies at points lishing Reserve Bank-operated check collection facilit might prove helpful outside the Reserve Banks but that he thought it to experiment with both that type of operation and the kind proposed by the New York Bank for a time. He pointed out that the situation was somewhat complicated by the fact that the New York and PhiladelPhia Reserve Banks have developed a number of county and regional Clearing arrangements whereby banks in the areas concerned exchange being made on the checks among themselves by mail, with settlement t to these clearbooks of the Reserve Banks, that the expenses inciden pating banks, and that if ing arrangements are borne by the partici the New York Reserve Bank should at the outset establish the Long n and carry the entire Island clearing arrangement as its own functio that participate in exPense, the question might be asked by the banks Banks should not the present clearing arrangements why the Reserve also assume the full expense in their areas. Mr. Leonard then dis- pation in cussed the extent of the Reserve Bankt contemplated partici -6- 12/31/52 the Long Island plan, both in the early stages and later, and brought out that according to the Bank, the payments to be made by the Bank be in the form once the arrangement was in full operation, which would Of limited membership fees at the rate of $5 per thousand checks cleared, h of the presenting bank exclusive of items drawn on any office or branc its Check or branch, should be more than offset by savings in operating Collection Department. Thereupon, unanimous approval was given to a letter to Mr. Treiber in the following form, the last paragraph reflecting the suggestion made by Governor Mills during the Coregoing discussion: r of December "Receipt is acknowledged of your lette local clear22 regarding the proposed plan for handling d. ings of checks among certain banks on Long Islan the purposes with thy sympa ete compl in is "The Board check collection of the proposal, to expedite and improve essary handling of procedures and to minimize the unnec al and the Federal checks by the banking system in gener noted that the proReserve Banks in particular. It is objectives with posal is expected to accomplish these checks and a substanrespect to a substantial volume of and at a saving of tial number of participating banks, to the participating over-all cost to the Reserve Bank and banks as well. proposed as an "It is understood that the plan is Reserve Bank, the ct prote experiment with limitations to a precedent. lish estab y saril and that it does not neces the experiment is if that er, It is to be expected, homev similar programs successfullproposals or requests for Reserve districts al Feder will be forthcoming in other ict. Distr your as well as in other areas of , t)r)v-yr4.040 12/31/52 -7- "The Board considers it important that the experimental nature of this proposal be clearly understood, as the principle of a Federal Reserve Bank paying other banks for performing banking transactions which the Reserve Bank might otherwise be called upon to perform is one which could be abused and lead to unreasonable requests and to dissatisfaction if the requests were not granted. "At the conclusion of the trial period the Board will welcome your thinking as to the merits of instituting this sort of a plan as a direct Federal Reserve Bank expense-paid operating facility serving in the public interest of a more decentralized and expeditious check collection system." Thera was presented a request that John N. Kiley, Jr., Technical Assistant, Division of Bank Operations, be authorized to travel to Richmond, Baltimore, and Charlotte during the period January 5-17, 1953, to visit the Federal Reserve Bank of Richmond and its branches for the purpose of discussing and reviewing matters pertaining to procedure and methods functional expense reports, including operating of determining and allocating expenses. Approved unanimously. At this point Mr. Leonard withdrew from the meeting. There was presented a letter dated December 20, 1952, addressed to Chairman Martin by Mr. Myron Bone, Vice President of the American Industrial Bankers Association, stating that the members of the Association's legislative committee would like to visit the Board's offices at -8- 12/31/52 current econ10:00 a.m. on February 3, 1953, for a discussion of ment finanomic trends, particularly in the field of consumer instal cing. were prepared Folloaing a statement that members of the staff to meet with the group, which previously visited the Board's offices made of Mr. Bone early in 1952, it was suggested that inquiry be the Board, with a disvthether the committee could have luncheon at s of the Board who desired cussion period thereafter, so that any member tandto meet with the group could have that opportunity, with the unders would be invited to ing that if this could not be arranged the group meet with the staff at 10 o'clock. It was agreed that an invitation should be extended to Mr. Bone on the basis suggested. Division of Personnel AdminisAt this point Mr. Allen, Director, tration, entered the room. sent to the members of the Before this meeting there had been er 24, 1952, from the Division Board copies of a memorandum dated Decemb of Personnel Administration reading as follows: by the Board on "The budgetary procedure adopted each member of work the that June 12, 1951, provided n of merit eratio consid for ed review of the staff be year. increases in January and July of each or has subdirect on divisi "Accordingly, each in his division mitted the names of those employees 2277 12/31/52 -9- "for whom he recommends meritorious salary increases. Attached are lists of the proposed increases including the pertinent comments made by the division heads for employees in classification Group Vi and above. Of the 525 members of the Board's staff merit increases have been recommended for 47 or about 9 per cent. The increases aggregate $6,500 on an annual basis and will increase the Board's payroll by .28 per cent. This compares with 47 merit increases approved in January 1952 or 8.5 per cent of the staff. "The 47 increases are fairly evenly divided beare tween professional and non-professional jobs and cation classifi the well distributed over nearly all of grades. "It is recommended that all of the proposed merit increases be approved effective with the payroll period beginning January 4, 1953." e At the request of the Board, Mr. Allen described the procedur for considering merit increases, the criteria set up for justifying such increases, and the procedures for recommending to the Board annual one-step (progress) increases and salary adjustments incident to position reclassifications. He brought out in this connection that the only classified employees ineligible for consideration for merit of their respective increases were those whose salaries were at the top staff. grades, comprising about 25 per cent of the Board's Mr. Allen also reviewed the procedure for granting merit increases before the Present plan was adopted in 1951 and stated reasons why the current desirable adminisProcedure was believed to be more equitable and more tratively. 227-1 12/31/52 -10- Governor Vardaman stated that although he would not oppose granting the increases recommended, he felt that the current procedure was unduly complicated, that it failed to reward outstandingly meritorious service properly, and that it would be preferable for the Board to review the salaries of all of the employees of each division once each year. Governor Robertson inquired what steps had been taken to insure that all division heads were using the same criteria in recommending merit increases, to which Mr. Allen responded that the standards to be applied were discussed at a meeting of all the division heads When the current procedure was put into effect and that the evidence accumulated since that time seemed to indicate a generally uniform application of those principles. Governor Robertson referred to the fact that the percentage of employees recommended for merit increases was considerably higher in some divisions than in others, and Mr. Allen stated reasons why such differences might exist. He also stated that he had sent to each division head for his consideration a statement showing the percentage of persons in each division for whom merit increases were recommended. Further comments by Governor Robertson were to the effect that every reasonable effort should be made to see that there was a good 0279 -11- 12/31/52 understanding on the part of all division heads of the standards for considering merit increases and that such increases should be for the purpose of rewarding outstanding service, regardless of an employee's salary, and should not be used for the purpose of creating a better alignment of salaries within the various divisions by bringing up the compensation of employees whose salaries seemed lo m in relation to others, although salary adjustments incident to job reclassifications would probably have to be taken into account to a certain degree. Thereupon, unanimous approval was given to increases in the basic annual salaries of the folloming employees, in the amounts indicated, effective January 4, 1953: Salary Increase From To Title Name MMI•••• Office of the Secretary Minutes Clerk Marian B. Treakle :$3,255 $3,335 8,560 3,660 3,495 3,415 8,760 3,785 3,575 3,495 Legal Division Wilson L. Hooff Eleanor E. Omohundro Eunice M. Boyd Erma Lee Hufford Assistant Counsel Clerk-Stenographer Stenographer Stenographer Division of Research and Statistics Albert Lorman Philip Milton R. Koch W. Trueblood T. Allen Moss Chief, Banking Section Economist Economist Economist 11,300 8,760 7,040 7,240 11,550 8,960 7,210 7,44o 2280 -12- 12/31/52 Title Name Salary Increase To From 41•••••••= Division of Research and Statistics Economist Economist Administrative Assistant Economist Economist Economist Clerk Statistical Assistant Clerk-Stenographer Clerk Clerk-Stenographer Clerk-Stenographer Library Assistant Paul S. Anderson Mona E. Dingle Gerald F. Millea Maurice Schwartz Murray Altmann Alfred P. Johnson Rita I. Ryhal Joan N. Yamamoto Marjorie Capps Anne D. Dougherty Nancy B. Kelly A. J. Messick Nell Tyson $5,940 5,9h0 519140 6,340 51o60 4,205 3,785 3,410 3,175 3,175 3,495 3,335 3,255 $6,14o 6,14o 65140 6,54o 5,185 4,330 3,910 3,535 3,255 3,255 3,575 3,415 3,335 Division of International Finance Chief, Financial Operations 11,050 and Policy Section 7,040 Economist 0 5,06 Economist 5,060 Economist 2,950 Clerk-Stenographer Frank M. Tamagna Ernest C. Olson Lawrence Bostow Gordon Grimwood Patricia Brown 11,300 7,240 5,185 5,185 3,030 Division of Examinations Frank C. Guth, Jr. M. F. Johnson K. P. Wendt A. P. Francoeur R. T. Pettijohn 7,240 71)140 4,870 4,995 4,745 4,670 4,170 4,295 295 4,420 Chief Reserve Bank Budget 8,560 and Expense Section 8,760 Federal Reserve Examiner Assistant Federal Reserve Examiner Assistant Federal Reserve Examiner Assistant Federal Reserve Examiner Assistant Federal Reserve Examiner tions Division of Bank Opera John R. Farrell 2281 12/31/52 -13- Name Title Salary Increase From To •••••••• Division of Bank Operations E. Ralph Massey Lee W. Langham David C. Crockett T. A. Veenstra, Jr. Maria Jo Peterson Technical Assistant Supervisor, Call Report Unit Analyst Analyst Clerk-Typist $7,040 7,240 5,185 4,205 4,330 5,310 4,330 h,165 3,270 3,190 Division of Personnel Administration John H. Stetson Personnel Technician 5,060 5,165 Division of Administrative Services Davis H. Wilson Joseph H. Hoyle Chas. V. Carey Henry Tate W. L. Thalley John H. Battle William Cobey Chief, Machine Tabulation Section Pay Roll Clerk Messenger Messenger Messenger Laborer Cafeteria Laborer 6,1140 3,785 2,792 2,712 2,792 2,632 2,712 6,340 3,910 2,872 2,792 2,672 2,712 2,792 8,760 8,960 Office of Defense Loans J. J. Connell Technical Assistant in connection with the Reference was made by Governor Vardaman, salaries of the Board's chauffeurs. foregoing discussion, to the level of id on the basis He said that in his opinion these employees were underpa work done was not comparable to of the services they performed, that the that performed by chauffeurs for other agencies, that he had proposed meetings of the Board several increases for this group of employees at necessary, the assignment times in the past, and that he would favor, if 2282 12/31/52 of new job titles to bring about reclassification of the jobs. Governor Vardaman also stated that he believed the Board at one time voted an adjustment of the chauffeurs' salaries. Gover- nor Robertson questioned Mr. Allen on this point, and Mr. Allen responded that a review of the minutes when the same question was asked on a previous occasion showed only that the matter had been referred to the Personnel Committee for consideration. He then reviewed the Committee, which culminadiscussions of the subject by the Personnel ted in discussion at the Board meeting on February 7, 1952, of a memo1952, which stated that in randum from the Committee dated January 14, ce to inthe opinion of the Committee it would be a dangerous practi of Board employees when crease arbitrarily the salaries of one group equal consideration was not given to others. The memorandum suggested of the Board's salary structure the possibility, however, of a revision were terminated or when the wage and salary stabilization regulations be taken. were revised so as to permit such action to Following further discussion, of the it was agreed that the matter be placed should es salari chauffeurs' at n eratio consid for on the agenda s member the of all when a meeting t. presen were of the Board or Vardaman to the practice Reference also was made by Govern on the Board's automobiles of using United States Government license plates 2283 -15- 12/31/52 and displaying agency identification on the sides of the cars. It was his opinion that the use made of the automobiles was such as to justify the removal of the identification and the substitution of District of Columbia license plates. Governor Evans reviewed the reasons why the Board had decided to follow the present procedure of placing identifying insignia on the Board's cars, during which he referred to the discussion at the meeting on January 17, 1952. During the ensuing discussion, n be given to the matter Governor Robertson suggested that consideratio t so that, if the at an early meeting when all Board members were presen Columbia license plates, Board should decide to purchase District of plates were issued. the change could be made at the time the 1953 It was agreed that the matter should be placed on the agenda for consideration at a meeting when all of the members of the Board were present. withdrew from the meeting. At this point Governor Vardaman sent to the members of Prior to this meeting, there had been er 29, 1952, from the the Board copies of a memorandum dated Decemb regarding a letter dated DecemDivision of Personnel Administration, l Reserve Bank ber 16, 1952, from Mr. Sproul, President of the Federa payment of compensation to Dr. of New York, requesting approval of the ime basis through the year John H. Williams as a consultant on a part-t 1953. 2284 -16- 12/31/52 Following a brief discussion, it was agreed that action on the matter should be deferred until the return of Chairman Martin. At this point Governor Vardaman returned to the room. Before this meeting there had been sent to the members of the Board copies of a memorandum dated December 30, 1952, from the that Mr. Howard Phillips Division of Personnel Administration stating had advised the Board that he was not in a position to accept reof the Federal appointment as a director of the Jacksonville Branch January 1, 1953, Reserve Bank of Atlanta for the term beginning Martin, Mr. Phillips that in a letter dated May 1, 1952, to Chairman Ornamental Nurseries, suggested Mr. Harry Smith, of the Winter Garden and that it was the Inc., Winter Garden, Florida, as his successor, be appointed. Division's recommendation that Mr. Smith reach Mr. Neely, ChairMr. Allen stated that after failing to man of the he talked by telephone Federal Reserve Bank of Atlanta, Counsel of the Reserve With Mr. Patterson, Vice President and General basis of available informaBank, who subsequently advised that on the good director. tion it appeared that Mr. Smith would be a gh he had no objection to Governor Robertson said that althou procedure whereby any director *. Smith, he had some reaction against a 2285 12/31/52 -17- ar to select his successor, t of a Federal Reserve Bank or Branch migh appe act on the suggestion made by and that he felt the Board should not of other persons concerning Mr. Mr. Phillips without obtaining views Smith. in addition to Mr. Phillips, Governor Vardaman stated that, of the Federal Reserve Bank of Mr. Paul E. Reinhold, Class C director appointed director of the Birmingham Atlanta, Mr. Thad Holt, BoardPresident in charge of the Jacksonville Branch, and Mr. Lanford, Vice Smith to him. He also said that ChairBranch, all had recommended Mr. favorable to Mr. Smith. man Martin had told him that he was iThereupon, it was voted unan a as h Smit mously to appoint Mr. Branch director of the Jacksonville 1955, 31, mber Dece for the term ending the of rman Chai provided Mr. Neely, Atlanta, first Federal Reserve Bank of Board that ascertained and advised the intment appo the Mr. Smith would accept if tendered. letter to Mr. Woodward, Deputy There was presented a draft of Richmond, reading as follows: Chairman Federal Reserve Bank of oves the payment of "The Board of Governors appr as Assistant Vice salary to Mr. James Dewey Daane rve Bank of Richmond for President of the Federal Rese through May 31, 1953, the period December 16, 19 2, m, which is the rate at the rate of $9,000 per annu s as indicated in your fixed by the Board of Director letter of December 11, 1952." 2286 12/31/52 -18- Governor Szymczak inquired of Mr. Allen whether he had any comments with regard to Mr. Daane, and Mr. Allen stated that both Mr. Noyes, Assistant Director of the Division of Research and Statistics, and Mr. Dembitz, Assistant Director of the Division of International Finance, felt that Mr. Daane was a very capable economist and well qualified for the position of Assistant Vice President. He went on to say that at the present time two officers of the Richmond Bank, namely, Vice President Williams and Assistant Vice President Storrs, were devoting full time to the research function, but that it was understood that Mr. Daane would work directly with President Leach on matters having to do with the money market and Federal Reserve monetary and whom the organizacredit policy and that Vice President Wayne, with of Personnel Administional arrangement was discussed by the Division , felt that the appointtration and the Division of Research and Statistics ment of Mr. Daane was desirable and that any organizational problems could be worked out satisfactorily. Thereupon, the letter to Mr. Woodward was approved unanimously. Letter to Mr. McCormick, Federal Reserve Agent, Federal Reserve Bank of Richmond, reading as follows: Mr. "In accordance with the request contained in of Leach's letter of December 22, 1952, the Board 2287 -19- 12/31/52 w"Governors approves the payment of salaries to the follo at 's staff Agent ve Reser al Feder ing named members of the the rates indicated, effective January 1, 1953: Annual Salary Title Name Head Office Robert L. Shepherd Assistant Federal Re4,600 serve Agent tant Assis nate Morriss Barret, Jr. Alter 3,700 Federal Reserve Agent George H. Thompson, Alternate Assistant Jr. 4,200 Federal Reserve Agent Baltimore Branch Federal Reserve Agent's Eugene L. Shipley 6,700 Representative 's Agent E. Riggs Jones, Jr. Federal Reserve 6,000 Representative Charlotte Branch Federal Reserve Agent's T. Wesley Bagby 51hoo Representative 's Agent ve Federal Reser Winfred W. Keller 5,200" Representative Approved unanimously. Agent, Federal Reserve Letter to Mr. Lunding, Federal Reserve Bank of Chicago, reading as follows: ined in Mr. "In accordance with the request conta of GoverBoard the Meyer's letter of December 24, 1952, wing follo the to nors approves the payment of salaries the at staff members of the Federal Reserve Agent's rates indicated. Annual Salary Title "Name Effective December 1, l952: 's Everett D. Jones Federal Reserve Agent S6,13h Representative 's Agent August J. Pettke Federal Reserve 6,707 Representative 2288 -20- 12/31/52 Title 'Name 1953: 12, y Effective Januar Everett D. Jones Federal Reserve Agent's Representative Annual Salary 46,334" Approved unanimously. , sAt this point Messrs. Vest, General Counsel; Boothe Admini ant Director, Division trator, Office of Defense Loans; Noyes, Assist l, l of Research and Statistics; and Hackley, Assistant Genera Counse entered the room and Mr. Allen withdrew. there had been sent to At the request of Governor Vardaman, er 30, 1952, issue of each member of the Board a copy of the Decemb e by Ruth Montthe Neu York Daily News, which contained an articl Reynolds Reduction Company gomery regarding the $76,750,000 V-loan to particularly the fee of for the expansion of aluminum facilities, , Read & Company for financial $400,000 paid by the borrower to Dillon at the meeting of the Board services, to which reference had been made on December 22, 1952. information which formed the Governor Vardaman stated that the article was reported to have basis for certain statements made in the Services Administration, the been supplied by officials of General guaranteeing agency. made to the report by Mr. During a discussion, reference was December 241 1952, regarding a Vest at the meeting of the Board on 2289 12/31/52 -21- telephone conversation with Mr. Maxwell H. Elliott, General Counsel of General Services Administration, in which the latter indicated that General Services Administration was writing to Reynolds Reduction Company to obtain full information about the Dillon, Read (Sc. Company fee and that a copy of the letter to Reynolds Reduction Company would be sent to the Board with a letter of transmittal requesting that members of the staff of General Services Administration discuss the matter with members of the Board's staff. It was noted that no communication from General Services Administration had yet been received. Governor Mills discussed his experience with V-loans as a d loans commercial banker, stating that the negotiation of guarantee for working capital purposes almost always involved direct contact between the borrower and a bank or group of banks, with one bank nces assuming leadership for the group, and that in such circumsta he thought it was very doubtful that a "finder's fee" ever was paid. He felt that it would be of value to the Board in whatever further consideration it might give to the Reynolds Reduction Company loan to have available information from the Federal Reserve Banks as to whether they had knowledge of a "finder's fee" or any similar fee in the World War II connection with any other V-loan made during either or the current V-loan programs. ‘"'90 #4.# -22- 12/31/52 It was also suggested that Mr. Vest might d.iscus3 the act Finance matter with Mr. John S. Bachman, Chairman of the Contr to ascertaining whether Committee, Department of Defense, with a view both the current Mr. Bachman, by virtue of his close association with mation that and the previous V-loan programs, could furnish any infor would be helpful. At the conclusion of the discussion, it was agreed that the matter should be placed on the agenda for further consideration at the meeting of the Board on January 5, 1953, in the thought that a letter from General Services Administration . might have been received by that time e Booth s. It was also agreed that Messr e and Noyes should talk with appropriat ve Reser al officers of all of the Feder maBanks by telephone to develop infor er's "find of tion regarding the payment of fees" or similar fees in the case Gover by other V-loans, as suggested d shoul nor Mills, and that Mr. Vest discuss the matter with Mr. Bachman. the staff except Messrs. At this point all of the members of ng and the following addiSherman and Kenyon withdrew from the meeti tional actions were taken by the Board: of Governors of the Minutes of actions taken by the Board 1952, were approved unaniFederal Reserve System on December 30, mously. 2291 -23- 12/31/52 Letter to Mr. Latham, Vice President, Federal Reserve Bank of Boston, reading as Collows: ma"In view of your recommendation and the infor the 1952, 24, ber Decem of r tion contained in your lette 1953, 13, June until ds exten Board of Governors further ny, the time within which Norfolk County Trust Compa in East h branc a lish estab Brookline, Massachusetts, may the in ed grant rity autho Milton, Massachusetts, under exlike a ded provi 1951, Board's letter of April 10, s." ritie State autho the tension of time is granted by Approved unanimously. al Reserve Bank Letter to Mr. Pondrom, Vice President, Feder of Dallas, reading as follows: December 23, "Reference is made to your letter of Board the prothe of ion 1952, submitting for considerat Company, Tucson, Trust and posal of the Southern Arizona Bank ed at 3545 Last locat now e Arizona, to move its branch offic at 3344 East ion locat new Speedway, Tucson, Arizona, to a de the outsi are ions locat Speedway, Tucson, Arizona. Both area. an polit metro city limits of Tucson but within its the Board con"On the basis of the facts submitted, e in locachang curs in your opinion that the proposed a branch of tion does not constitute the establishment Reserve al within the meaning of section 9 of the Feder not required." is Act, and, therefore, the Board's approval Approved unanimously. Reserve Banks, prepared Letter to the Presidents of all Federal the Board on December 18, pursuant to action taken at the meeting of 1952, and reading as follows: 2292 -24- 12/31/52 m Research "Pursuant to recommendations of the Syste dents' Presi of ee mmitt Advisory Committee and the Subco adopted , stics Stati and Conference Committee on Research the 1952, , 17-18 at their joint meeting on November bank debits Board has decided to revise the monthly series in bank r membe series and the weekly reporting anda. ng memor panyi accom the manner described in the mmittees m subco Syste by 9oth revisions have been proposed these of ts repor the appointed to study the matters and reof heads the to d subcommittees have been distribute nt Curre on ttee search and to the members of the Commi Reporting Series at each Reserve Bank. and "Copies of the revised report forms (FR. 573 your if d ciate F. R. 416) are enclosed. It will be appre with ning Bank will obtain reports on the new basis begin s report, March 1953 in the case of the monthly bank debit the to ct and beginning with March 11, 1953 with respe the in oned menti weekly reporting member bank form. As ds perio g attached memoranda, figures for overlappin be pre(estimates in the case of bank debits) should Bank of pared and forwarded to the Board's Division rable compa de Operations as soon as practicable to provi data on the new bases." Approved unanimously. Mr. Carpenter, SecreMemorandum dated December 16, 1952, from uction of certain material tary of the Board, recommending the destr attachments to the memorandum, outin the Board's files, as listed in schedules. right or according to stated destruction Tho memorandum ded as essential record material stated that the material was not regar the position that it could and that the National Archives had taken of the ut obtaining the approval be disposed of by the Board witho 12/31/52 Archives or the Congress. Approved unanimously. Assis a Secre ary
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