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1833 A meeting of the Board of Governors of the Federal Reserve S'Ystera Was held in Washington on Saturday, December 9, 1944, at 10:30 4.41. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters herein— ter r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ReServe System held on December 8, 194)1, were approved unani- 4°141Y. Letters to the "First State Bank of Meriden", Meriden, Minnesota, 44 the "p latte Valley Bank, Ravenwood, Missouri", Ravenwood, Missouri, g as follows: all "The Board is glad to learn that you have completed Fed arrangements for the admission of your bank to the he,,a1 Reserve System and takes pleasure in transmitting here a formal certificate of your membership. It will be appreciated if you will acknowledge re— eeiPt of this certificate." Approved unanimously. Letter to Mr. Rice, Vice President of the Federal Reserve Bank urK, reading as follows: 8;3- 1 , -2la„ "This is in reply to your letter of November 30, regarding the assignment and salary of Joseph F. ,/44 uelaney. fo "In view of the fact that the maximum annual salary $i r the position formerly occupied by Mr. Delaney was IV°0 and that his present assignment to an 'unassigned' ltion in a roving capacity is part of the training lejmn under your Executive Development Plan, the Board's ti ter of November 24, 1944 may be regarded as authorizafor the continuation of Mr. Delaney in the 'unassigned' : ce tion for a further period of six months beginning Dewhi ! te 1, 1944, without specific reference to his salary, thee" may be increased in an appropriate amount within Inaximum of his former position." g Approved unanimously. Letter to Mr. Leland, Federal Reserve Agent at the Federal Re4rve Bank of Chicago, reading as follows: It, e "In accordance with the request contained in Mr. /Ic ert e letter of November 29, 1944, the Board of Goverme ' 8 approves the payment of salaries to the following of the Federal Reserve Agent's staff, at the rates shoers wn, effective December 1, 1944: Annual Salary h -11Z4Lk9_ Title e"Ilrlee j. Scanlon Alternate Assistant %,500 Federal Reserve Agent NnIst J. Pet Federal Reserve Agent's Representative, 4,000 Detroit Branch herett D. Jones Reserve Federal Agent's Representative, 3,740" Detroit Branch Approved unanimously. Letter /140 rite Bar , to Ih‘. Dolph Briscoe, a Class C director of the Federal k of Dallas, reading as follows: "1 have brought to the attention of the other members 835 12/5/44 -3- "of the Board of Governors your letter of December 1 .stldtting your resignation as a Class C director of he Federal Reserve Bank of Dallas, and it is with sin— cere regret that the Board accepts your resignation. 'To interest in and contribution to the Federal t Reservea, System during the period of your service, first a director of the San Antonio Branch, and then as a C director of the Federal Reserve Bank of Dallas, ,4-e indeed appreciated and the Board trusts that your :1terest will continue after the termination of your of— lcial connection with the System." 7 Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks read— g as tollows: a l "For your information there is enclosed a copy of a J-eter received from the Federal Reserve Bank of Minne— dated November 27, 1944, requesting an expression Of views . A ; . m of the Armed Services and the Maritime Com— co-84-on as to the practice which should be followed in with T—Loans in obtaining legal opinion as to t:Tetion lneorporation of the borrower and the validity of the w'ract between the borrower and the financing institution. 8e1"Th1e inquiry was referred by the Board to the Armed i ces and the Maritime Commission by letters dated De— ' cern, er 1, 1944; and there is enclosed a copy of the Board's j le'er to the Navy Department, together with a copy of a randum received from the Navy Department in reply, 4.,4 dett° December 2, 1944, signed by Commander Donald P. es, Chief of Finance Division." ' Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks read— f011OWS: Of I_"There is attached a copy of the Board's 'Manual arici rvl!tructions Governing the Preparation of Earnings 410ense Reports and Profit and Loss Statements by the; ederal Reserve Banks' (B-1067), revised, except 12/9/44 -4_ Has effective January 1, 1945. Alsohereinafter indicated, enclosed are samples of Forms F. R. 95, 96, 96a, /c1 418, revised for use beginning January 1945. A 5upux,7 of the revised Manual and forms is being shipped to Yolut Bank. "The principal change in the instructions is the profor reporting salaries of all employees, including as ?teria and telegraph employees, and building employees s-Lgned to buildings classified as 'Other Real Estate', the item 'Salaries' on Form 96, concerning which you 1.944e.been advised in the Board's letter of October 25, In connection with this change, the expense item Cafeteria net expense' has been eliminated. Cafeteria Pense will henceforth be reported in appropriate exems: on Form 96, and to the extent that they are burlillbursable from cafeteria receipts, as an item of reims2able expense on Form 96a. Also eliminated for the j'lle reason are the profit and loss items, net income (or b:nse) of (1) other real estate originally acquired for house purposes, (2) miscellaneous assets acquired tset s tlement of claims account closed banks, and (3) He cellaneous assets acquired account industrial advances. inneceforth, earnings derived from such assets and expenses , ' I red in connection therewith will be reported as earninpli 96" aqd expenses in appropriate captions on Forms 95 and in respectively. A similar procedure should be followed reP°rting earnings and expenses of miscellaneous assets , aco account industrial loans on Form F. R. 418, the tmentsstatement of net earnings on industrial loans and Z itil certa".Other changes are to clarify the instructions at are In points and bring them up to date. Among these repoeertain changes incorporating recommendations in the of the Special Committee on Simplification of : Nr the el°nal and Operating Reports, YThich was approved by rIlliejnference of Presidents on October 16, 1943. The Jantl lonal expense report, Form F, was revised as of recoarY 1, 1944, in accordance with the Special Committee's iiarynti endations. In view of the changes made as of Janto4,1,' 1944, in the functional expense instructions, the teetZv'ng changes in present Form 96 instructions are ef4-ve retroactively to the first of this year: 1837' 1219/44 —5— Cost of currency shipments. Branch reports, instead of head office reports, should include the cost of shipments made by the branch (a) of fit Federal Reserve notes to Banks of issue, (b) of unfit Federal Reserve notes to V,ashington, and (c) of cur— rency of all kinds to the head office or other branches. 2. to the Retirement System. a. Special contributions to the Retire— ment System should be included in expense item 3, 'Retirement System contributions for current service', instead of in 'Salaries'. b. Retirement System contributions for current service of all employees, including cafeteria and telegraph employees, should be included in item 3, 'Retirement System contribu— tions for current service'. Adjustments to reflect these changes should be made in 1.,7 current month's reports on Form 96. Revised reports vr pf,teceding months need not be submitted. or 4,Provisions regarding the establishment and maintenance ne 'Reserve for Registered Mail Losses', on pages 40-41, A€1., become effective if and when the revised Loss Sharing ,lent between the Federal Reserve Banks is approved. 10„ A new schedule 'D' to accompany the annual profit and e4istatement provides for a classification of losses ac1x.Lg tl to the groups used in submitting reports on form Oct ;'), attached to the Board's letter of December 6, 1937 -L Approved unanimously. Thereupon the meeting adjourned. Chairmen.
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