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1704 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Friday, December 5, 1941, at 11:00 PRESENT: Mr. Mr. Mr. Mr. 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 hereinafter r eferred to was taken by the Board: The • tLLrlUtes of the meeting of the Board of Governors of the Federal Reserve System held on December 4, 1941, were approved unani- Telegrams to Mr. Sanford, Secretary of the Federal Reserve Bank of New York, Mr. Davis, Assistant Secretary of the Federal Reserve ' lank of Philadelphia, and Messrs. Hays, Dillard, and Of Hale, Secretaries the Federal Reserve Banks of Cleveland, Chicago, and San Francisco, respec tively, stating that the Board approves the establishment with°Ilt change by the Federal Reserve Bank of San Francisco on December 2) by the Federal Reserve Banks of New York, Cleveland, Chicago, and San Prancisco on December 4, 1941, and by the Federal Reserve Bank of Philadelphia today, of the rates of discount and purchase in their exiating schedules. Approved unanimously. 1_705 12/5/41 -2Memorandum dated December 1, 1941, from Mr. Smead, Chief of the Division of Bank Operations, recommending that the following inCreases -"4I salaries of employees in that Division be approved, effective as of December 16, 1941: Designation *rick, L. S. Daniels, Mortimer B. Mitchell, H. Willis Scudder, Dilver Riirley, John Smith, Jewe j. B.l Goheen, Loretta M. Jones, Marjorie Hainer, Sybil P. 13°Yer, Rita E. S. Buchanan, Avelyn ,srYan, Evelyn Margaret K. HeMminger, Tressa B. Martin, Dora Wright, Zelpha M. Conover, Esther Millican, ThelmaW. C. Thomas, Ellen C. 4°PPit1g, C atherine E. Trott, Sarah Louise 1!Illes, Mildred C. uarvenpa, h Aili L. Sarfer, C harlotte M. Technical Assistant Technical Assistant Supervisor, Call Report Section Supervisor, Reserve Bank Section Senior Clerk Secretary to Mr. Smead Senior Clerk Senior Clerk Secretary Clerk Secretary Clerk Clerk Clerk-Stenographer Clerk Clerk Clerk Clerk Clerk Clerk-Stenographer Clerk-Stenographer Clerk Clerk-Stenographer Clerk Salary Increase From To A6,200 4,800 A6,400 5,000 3,200 3,300 3,100 2,800 2,400 2,100 2,100 2,000 1,900 1,900 1,800 1,740 1,740 1,740 1,740 1,700 1,680 1,620 1,620 1,620 1,500 1,440 1,440 3,200 2,900 2,500 2,200 2,200 2,100 1,980 2,000 1,860 1,800 1,800 1,800 1,800 1,800 1,740 1,680 1,680 1,680 1,560 1,560 1,500 Approved unanimously. Memorandum dated December 1, 1941, from Mr. Nelson, Assistant Seeretarir, -J recommending that assent be given by the Board to the nation examianci certification by the Civil Service Commission of Robert W. 1706 12/5/41 -3— Rieseberg, an accounting clerk in the accounting section of the Secretaryt s Office, for the position of accounting and auditing assistant. Approved unanimously. Memorandum dated December 2, 1941, from Mr. Nelson, Assistant Secretary, recommending that assent be given by the Board to the ex and certification by the Civil Service Commission of Vincent " I Bogart, a supply clerk in the procurement section of the Secretary's Office for the position of junior typist. Approved unanimously. Of the Memorandum dated December 2, 1941, from Mr. Paulger, Chief v43i0n of Examinations, submitting the resignation of Laurence Skees as a Federal Reserve Examiner in that Division, to become effective as of the close of business on January 7, 1942, and recommending that the re signation be accepted as of that date. The resignation was accepted. °randum dated November 27, 1941, from Mr. Goldenweiser, Dio:eni the Division of Research and Statistics, submitting the resigtie.ti°11 of Bruce Waybur as a junior economist in that Division, to become effective as of the close of business on December 6, 1941, and recomraeriding that the resignation be accepted as of that date. rector The resignation was accepted. Memorandum dated December 1, 1941, from Mr. Goldenveiser, Diof the Division of Research and Statistics, submitting the 1707 12/5/41 —4— resignation of Robert B. Martin as a clerk in that Division, to become effective as of the close of business on December 1, 1941, and recommending that the resignation be accepted as of that date. The resignation was accepted. Bond in the amount of $10,000, executed under date of December 3) 1941/ 1-LT John Henry Zirckel as Federal Reserve Agent's Representative at the Baltimore Branch of the Federal Reserve Bank of Richmond. Approved unanimously. as fol Letter to the Presidents of all Federal Reserve Banks, reading "There are enclosed a copy of the Board's letter of N?v?mber 10 to the Administrator of the Farm Security AlTlnistration, and a copy of the reply of the Acting Administrator dated November 28, 1941, relating to section 6(k) of Regulation th "The phrase 'member banks' in the last paragraph of R e letter of November 28 apparently refers to the Federal ,,!eerve Banks, and therefore, although your bank is of eurse free to advise any interested person as to the conthese enclosures, there would seem to be no need iltj circularizing all the member banks in your district ' ess you feel that it is desirable to do so." J Approved unanimously. Letter to Mr. Hays, Vice President of the of ,, plLev Federal Reserve Bank e.Land, reading as follows: 26, 1 s is with reference to your letter of November 41, concerning the classification of a certain gas coop.'lng range under the Supplement to Regulation W. You have the suggested, it is quite apparent from ri"As the :seecriptive material which you enclosed that while ' ange has Clean more than seven lY desi heating surfaces it is of gned principally for home use. The test 1708 12/5/41 -5- heating surfaces' is recognized to be not altogether satisfactory and some thought has been given to a Substitute definition. If you have any suggestions along this line, the Board would be glad to receive them." "'seven Approved unanimously. Letter to Mr. Stroud, First Vice President of the Federal Reserve sank Of Dallas, reading as follows: "This is in reply to your letter of November 26 rePrding the registration of Hemenway-Johnson Furniture Company and its subsidiary under Regulation W. "We agree with your first conclusion, to the effect that the Hemenway-Johnson Company of Shreveport should file a single Registration Statement with the Federal Reserve Bank of Dallas covering the operations of all its !',(31'es. As to the registration of Hemenway Home Service, its main office is located at Alexandria, Louisiana, ectlon ? 3(c) of the regulation appears to require that Its Registration Statement be filed with the Federal Reserve1, sank of ?.11d, the factAtlanta, or a branch thereof. On the other that that subsidiary registers with the Atlanta bank need not affect the cordial relations enjoyed between the company and the Federal Reserve Bank of Dallas; the natural channel for communicating with the Federal serve System is the Shreveport office of the parent c°mPany, itthrough seems highly desirable that any existthat have proved mutually advantageous nould be continued." Approved unanimously. Tele , tatlk of ,,,a. gram -co Mr. Hale, Vice President of the Federal Reserve n Francisco, reading as follows: 4, I:Reference your telegram December 3 the classificaradio :111 -kn. ltles receiving sets' in Supplement, Group C-10, As radios. We automobile have been in touch with National Automobile Dealers °0ciation and believe it will send out a correction. Approved unanimously. Letter to Mr. Caldwell, Chairman of the Federal Reserve Bank of 1709 l2/5/41 -6- Kansas City, reading as follows: "Reference is made to your recent discussions with members of the Board relating to the retention by the Federal Reserve Bank of Kansas City of an outside firm of attorneys as counsel for the Bank. This matter has been given careful consideratio n by the Board and I have been requested to advise you of its conclusion. "In 1937 the Board requested that a survey be made by a member of its legal staff of the legal divisions of the Federal Reserve Banks. Following the submission of the reports of these surv eys the Board, in June 1938, adopted a resolution in which, in view of the material differences in the to the practices of the Federal Reserve Banks with respect employment of counsel and the manner in which their legal work was handled, the position was taken that as a Tatter of gene ral policy the legal work of each Federal Reserve Bank should be conducted under the direction of a .1111 time gene ral counsel who represents only the Federal t4?erve Bank; that, however, with respect to the banks lch did not have such counsel the adoption of this poltnr should be regarded as an ultimate objective to be ate:red when circumstances permitted without disturbing t'1',"1.8ting arrangem ents if otherwise satisfactory; and that President of each Federal Reserve Bank should be adrili sed that it was the desire of the Board to be consulted Yl l)e lgfore the Bank made any change in the mann of ZrrnItti er its legal work or the principal personnel engaged therein. i stud "This policy was adopted by the Board after a careful fee,Y . of all of the aspects of the matter and it does not it would be justified in departing therefrom by CT.°Ylng the rete ntio n of outside counsel by the Kansas "Y Bar Approved unanimously, together with the followin g letter to the Presidents of all Federal Reserve Banks: it "In 1937 the Board requested one of the members of --s legal staff to make a survey of the legal divisions °I the Federal Reserve Banks. Following the submission reports of these surveys the Board, in June 1938, ted a resolution in which, in view of the material 41Terences in the practices of the Federal Reserve Banks 1710 l2/5/41 -7itinth • respect to the employment of counsel and the manner in which their legal work was handled, the position was taken that as a matte r of general policy the legal work of each Federal Reserve Bank should be conducted under the direction of a full time general counsel who represents only the Federal Reserve Bank; that, however, with respect to the banks which did not have such counsel the adoption of this policy shoul d be regarded as an ultimate objective to be attained when circumstances permitted without disturbing existing arrangements if otherwise satis!aetory; and that the President of each Federal Reserve tank should be advised that it was the desire of the Board to be consulted informally before the bank made any change Ir1 the manne r of conducting its legal work or the principal personnel engaged therein. "Advice of the adoption of the policy as set forth in the set the resolution was not sent to the Federal Reserve Banks time for the reason that it was felt that the polic y euld be broug ht to the attention of the respective Federal see Banks as occasion might require, but in accordance 1!:LIsq the last e President clause of the resolution a letter was sent to of each of the Federal Reserve Banks on June 2 1938, stating that it would be appreciated if, whenever aliircum.stances developed in the future indicating the desirma ltY of a change in the principal legal personnel or the Bann_i er in which the legal work of the Bank was conducted, the aK would advise the Board informally before action was taken. Recently the Board has had occasion to reconsider and petrlrm the polic y as set forth above and requested that all b_rral Reserve AJo rd Banks be advised of the position which the had taken." e r Thereupon the meeting adjourned. Secretary. Approved.: Vice Chairman.
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