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227 A meeting of the Board of Governors of the Federal Reserve S tem was held in Washington on Friday, February 12, 1943, at 11:00 PRESENT: Mr. Mr. Yr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Evans Mr. Morrill, Secretary Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of dovernors of the "11 Reserve System held on February 11, 1943, were approved unaniZousiy. Telegrams to Messrs. Treiber and Hays, Secretaries of the Fecler ' al Reserve Banks of New York and Cleveland, respectively, Mr. Leach, I'l'esicierit of the Federal Reserve Bank of Richmond, Messrs. Stewart and P°Well 'Secretaries of the Federal Reserve Banks of St. Louis and MinIlea130 1-1-8/ respectively, 1:r. Caldwell, Chairman of the Federal Reserve np Of aansas City, Mr. Gilbert, President of the Federal Reserve Bank and Mr. Hale, Secretary of the Federal Reserve Bank of San Co, stating that the Board approves the establishment without ell Ige by the Federal Reserve Banks of St. Louis and San Francisco on ?ebt'llarY 9/ and by the Federal Reserve Banks of New York, Cleveland, 228 2/3443 -2Minneapolis, Kansas City, and Dallas on February 11, 1943, of the rates of discount and purchase in their existing schedules. Approved unanimously. Llemorandum dated February 3, 1943, from Llr. Wyatt, General C°11nsel, requesting that he be granted special leave with pay, which w°111d not be chargeable against his annual leave, from March 12 to 411-1 12, 1943, inclusive, so that he might attend the 4th Army Orienta- tion Course at the Command and General Staff School, Fort Leavenworth, Kansas. Approved unanimously. Liemorandum dated February 11, 1943, from Mr. Morrill, recomlendi --"g that lass Pearl Grimsley be appointed as a kitchen helper in the Secretary's Office on a temporary basis for a period of not to exteed 60 days, with salary at the rate of 4-10080 per annum, effective Pebrup , 1-2, 1943. Approved unanimously. emoranda dated today from :Ir. Morrill, submitting the resigtlati°r1 cf Frank Connell as a kitchen helper in the Secretary's Office, to bee°me effective at 2:30 p.m. on February 12, 1943, and recommending (1)h + t -a" the resignation be accepted as of that time, and (2) that Mrs. Ploren "McVearry be appointed as a kitchen helper in the Secretary's Orric e on a temporary basis for a period of not to exceed 60 days, with ale-rY at the rate of $1,080 per annum, effective February 13, 1943. Approved unanimously. 229 2/12/43 -3Memorandum dated today from Mr. Morrill, recommending that the DL, ard accept the resignations of Misses Carlena Woods and Courtney Thomas as kitchen helpers in the Secretary's Office, effective as of the close of business on February 6 and February 11, 1943, respectively. The resignations were accepted. Letter to Mr. Mulroney, Vice President of the Federal Reserve Bank of Chicago, reading as follows: "Reference is made to your letter of December 31, !'942 With regard to the application of the Board's Regulation 0 to inactive officers of smaller member banks who are also directors and serve as members of the discount c ommittee. "As stated in the Board's circular letter, 5-3531 dated September 23, 1941, a person who is an inactive of:leer and director of a member bank and with respect to a resolution has been adopted by the board of direcors providing that he is not authorized to participate ;3?1 the operating management of the bank will not be Conan executive officer because of his service on the vscount committee where the by-laws of the bank or resolution of the board of directors requires the service in ro, ti°n of every director as a member of the discount cornarid the directors do in fact serve as members of and t'e ce"mittee in accordance with such by-laws or resolual°n. Your letter, however, points out the difficulty in 113PlYing this principle to small member banks having usualbY Only five directors all of whom are also serving as ,..emers of the discount committee. "In the circumstances, the ruling contained in the Board, e ,,s letter S-353, referred to above, is hereby extendthat, in addition to the rule enunciated therein, an ',"-_Iloer of a member bank with respect to whom a resolution scribed above has been adopted who is also serving as a 'Xector and as a member of the discount committee where bV: I of the members of the board of directors are also mem1.41.? of, and do in fact serve on, the discount committee, i„:"- not be considered an executive officer within the mean"g of Regulation 0." Approved unanimously. Thereupon the meeting adjourned.
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