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231 A meeting of the Board of Governors of the Federal Reserve SYstem waS held in Washington on Monday, February 12, 1945, at 10:30 PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein- atter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Peder;1, 1. Reserve System held on February 10, 1945, were approved unani1401181y.. Letter Or New York, to Mr. Rice, Vice President of the Federal Reserve Bank reading as follows: let,"In accordance with the request contained in your pr' er of February 8, 1945, the Board of Governors ape payment of salary to Mrs. May K. Pichel as a Dinlor Clerk in the Lire Transfer Section, Wire Transfer Collection Department, for a further period $3,f8ax months beginning February 1, 1945, at the rate of ar4 ( 2) . Per annum, which is $300 in excess of the maxmima sa Al in the personnel classification an for laryprovided the position she occupies." Approved unanimously. or el. Tel egram to Mr. Brainard, Chairman of the Federal Reserve Bank rid, reading as follows: 232 2 / 12/45 -2"Your letter January 31. Board approves appointments Messrs. Howard Evans and Harry H. Ostendorf as Federal Reserve Agent's Representatives at the Pittsburgh and Cincinnati Branches, respectively. "Approval is given with understanding that they will ta placed upon Agent's pay roll and be solely responsible to him, or during vacancy in office of Agent to Assistant Federal Reserve Agent, and to Board of Governors for proper Performance of duties. When not engaged in performance of duties as Federal Reserve Agent's Representatives they 111'V, with approval of Federal Reserve Agent or, in his abice, of dent in Assistant Federal Reserve Agent and Vice Presicharge of Branch, perform such work for Branch as not be inconsistent with duties as Federal Reserve Age,s Representatives. "Messrs. Evans and Ostendorf should execute the usual °!th or office, but, assuming that they will be covered -u "der the bankers blanket bond, execution of the usual ,,.I 8I retT bond may be deferred, if you desire, pending the 'iasposition of the matter of discontinuing surety bonds referred to in Board's letter February 9. • is "Please advise effective date of appointments. It assumed 0 Dsteadorf that salaries proposed for Messrs. Evans and 1e as Federal Reserve Agent's Representatives will , submitted to Board for approval in accordance with the '41.1a1 practice." Of r Approved unanimously. Ilkk Letter to Mr. Meyer, Assistant Cashier of the Federal Reserve of c hicago, reading as follows: "The Board of Governors approves the changes in the vo7scnnel classification plan of the Federal Reserve Bank ti leag°, involving the establishment of two new posi°--, as requested in your letter of February 6, 1945." Approved unanimously. Letter to Mr. Gilbert, President of the Federal Reserve Bank of 'reading as follows: 233 2/12/45. -3- Board of Governors approves the appointment 5 Messrs. Charles R. Moore, E. P. Simmons, Lawrence S. t :ollock, Ira T. Moore, and Jake L. Hamon as members of Industrial Advisory Committee for the Eleventh Federal Reserve District to serve for terms of one year each, beginning March 1, 1945, in accordance with the _action taken by the Board of Directors of the Federal Epserve Bank of Dallas, as reported in your letter of ebruary 8, 1945." Approved unanimously. Letter to Mr. Charles R. Erdman, Jr., Commissioner, Department q n°m1c Development, Trenton, New Jersey, reading as follows: "With further reference to your letter of January 1945, there is enclosed a copy of an amendment to ;egulation Wwhich was adopted by the Board effective 4: 131 11arY 5, 1945. The amendment has the effect of exa:'ing 13 from the Regulation any extension of credit guarnteed in full or in part by any State agency pursuant to State legislation similar to Title III of the Servicemen's Act of 1944, and since, as you say in your -Lo!tter of letter November 29, 194)1, the Veterans Loan Authority New Jersey is empowered to guarantee payment of 90 7 cent of unpaid balances of loans made to qualified ,74 Jersey veterans for the purpose of establishing or eet ablishing themselves in businesses or professions, wo la clear that the enclosed amendment to Regulation Vi uld exempt such loans." 17 4 IZ Approved unanimously. Letter to Mr. Flanders, President of the Federal Reserve Bank of b 4308 , to,." reading as follows: nit rel„,.anY thanks for your letter of February 2, 1945, re ' - 1-ng to the restriction of travel pursuant to the a queet of the Director of War Mobilization. I have holn1 Your eel that letter to the members of the Board and they the question whether, and to what extent, the 234 2/12/45 -4'travel which you have in mind is essential in the light of Justice Byrnes' request is one for the exercise of Your own good judgment." Approved unanimously. Letter to Mr. Rounds, Chairman, Retirement Committee, Retire— nlent f Stem of the Federal Reserve Banks, Federal Reserve Bank of New 'reading as follows: "Reference is made to your circular letter No. 93 January. 15, 1945, regarding the proposed amendment to ,lle resolution adopted by the Board of Trustees of the Retirement System on May 5, 1942, which provided special benefits for employees reemployed after military service. "It is noted that this resolution was designed not ' . 1.11Y to enable the Reserve Banks to comply with the Selec— btve Service Act with respect to the retention of pension , -nerits under the Retirement System, but that it went bed this requirement in that it provided for a special onal benefit of a pension for the period of military uervice, all benefits being conditioned, among other things, len application for reemployment within forty days after charge from the service of the United States, the period 2ecified in the Selective Service Act for reemployment ' 1-ghts, ce ,"Since the Selective Service Act has been amended re— cor44 to extend the period for reemployment rights to a period within ninety days after discharge from 1tarY ti-1 ,' service, or within ninety days after hospitaliza— yo'n continuing for not more than one year after discharge, wilall_raise the question of whether the employing banks will ch," to have the resolution amended to conform with this cql.g in the law. lett 'The Board favors an amendment as proposed in your vid er which would extend the period within which an indi— zneill may apply for reemployment and still receive the ' dial pension benefits." 1r P Approved unanimously. Letter "'er tO Mr. klthrtioria Leach, President of the Federal Reserve Bank of reading as follows: 235 2/12/45 -5"Reference is made to the Board's letter of February 3'.1943 and your reply thereto dated February 5, 1943, in wrach it was agreed that Mr. R. S. Brock, Jr., Auditor of You would undertake the work of auditing the books and accounts of the Board of Governors for the calendar Years 1943 and 1944. , "It occurs to the Board that it would be desirable .10 designate the auditor of the Board's accounts to audit zrans actions covering three calendar years rather than has been the practice in recent years. The longer P ferl°d will afford more economical and efficient audits er°111 a long-range point of view. It has been the Board's Perience that each time a new auditor is selected it ,,ates same time for him to become acquainted with the records and procedure. Therefore, while the Board does task°t contemplate any change in its policy of rotating the B among the auditors of several of the Federal Reserve canks, the Board will be glad to have your institution ,arrY on this work for the calendar year 1945. It is un.-lerstood from our recent conversation by telephone with ; .(1, 31.1 that the continuation for an additional year of the ,:a'ngsment which has been in effect during the last two ars would meet with your approval. However, your conion of this understanding will be appreciated." j li Approved unanimously. lelegram to Mr. Davis, President of the Federal Reserve Bank c)r St, L, °Lk-Ls, reading as follows: "Retel February 12 and telephone conversation, Board $ no objection to expenditure of approximately 32 interpose 532 for alterations and additions to Nugent Building and , eroofing present Bank building." Approved unanimously. Thereupon the meeting adjourned. hr) Secretary. 4PProired: Chairman.
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