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0i0 A meeting of the Board of Governors of the Federal Reserve drstem was held in Washington on Thursday, February 14, 1946, at 2:15 p.m. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman McKee Draper Evans Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— after referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Ped eral Reserve System held on February 13, 1946, were approved unani1101184. Memorandum dated February 11, 1946, from Mr. Bethea, Director Ot the Division of Administrative Services, recommending that the b4si annual salary of each of the following employees in that Divi_ qc),, ue increased, as indicated below, effective as of the beginning of the riv-&-u, payroll period following approval by the Board: 're•rae Rarry E. P. L. Kern Relerl Watkins Ilialen kid W. e Staley lba. 14211 qertrude Rlith I. MurPhY Bowes Nellie G. Tobler Title Purchasing Clerk Senior Mail Clerk Clerk—Stenographer Clerk—Stenographer Clerk Clerk—Stenographer Page Elevator Operator Approved unanimously, effective Salary Increase To From $2,540 2,430 2,040 2,100 1,680 1,740 1,620 1,620 $2,650 2,496 2,166 2,232 1,770 1,836 1,704 1,638 211 2/14/46 -2February 24, 1946. Memorandum dated February 8, 1946, from Mr. Thomas, Director of the nA.vision of Research and Statistics, recommending that the ap, Pcintment of Ernest J. Hopkins, an Economic Specialist in that Divi814xa, be extended for an additional period of not to exceed six months, etrective when his present six-month appointment expires at the close or business February 15, 1946, and that his salary be increased from t6,020 „, "c) i140,440 per annum, effective at the beginning of his new ap1°111tillent• The memorandum stated that it was assumed that Mr. Hopkins IY°1134 continue to be excluded from the Federal Reserve Retirement System because of the nature of his appointment. Approved unanimously. Memorandum dated February 13, 1946, from Mr. Bethea, Director Or the n. -lvision of Administrative Services, submitting the resignation Or Herb„ -1'6 E. Becke, a chauffeur in that Division, and recommending that th e resignation be accepted effective as of the close of busitles January 29, 1946. The resignation was accepted as recommended. Memorandum dated February 13, 1946, from Mr. Bethea, Director °t the n. - 44-vision of Administrative Services, submitting the resignation ot 1[1,8. Gloria Jenkins, a cafeteria helper in that Division, and recornmenctin. g that the resignation be accepted effective as of the close 212 2/34/46 _3.... c't business February 11, 1946, and that a lump sum payment be made for 44Y accrued annual leave remaining to her credit at that time. The resignation was accepted as recommended. Letter to Mr. Peterson, Vice President of the Federal Reserve liazi ltof St. Louis, reading as follows: "In accordance with the request contained in your letter of February 8, 1946, the Board approves the app,cintments of Robert Frederich Schalk and Paul William 45011 as assistant examiners for the Federal Reserve Bank °f St. Louis. Please advise us as to the effective dates 0f appointments." Approved unanimously. Letter to Mr. Willett, First Vice President of the Federal Re814 ' /Ie Bank of Boston, reading as follows: 191.4, "Reference is made to your letter of January 22, submitting the request of The Brooks Bank and Trust rnPanY, Torrington, Connecticut, for approval of an addi, 1°nal investment of $110,000 in bank premises, and your further letter of February 5, 1946. th "It is understood that the bank proposes to raze the t buildings now carried as bank premises and to con, 4 11.1et a new building on a portion of the land now occued at a cost not to exceed $110,000 and that additional Penditures for furniture and fixtures are not expected 1° exceed from $10,000 to $15,000. The remainder of the , 41143 consisting of a lot approximately 50' x 150' is to leased to the G. C. Murphy Company under an agreement 0 erect a store building thereon costing from $130,000 , 0 $150,000, to absorb all taxes and pay the bank $3,000 ,tT.r annum rental for the land for a period of thirty years ,,the expiration of which the ownership of the building ' 4u2-L1 vest in the bank. The present carrying value of bankhouse, furniture and fixtures is $102,868. In view the fact that the actual cost of the new bank building dZ,?Xpected to be less than $110,000, and that of the adfurniture and fixtures less than ,'>15,000, it p j J Z 213 2/14/46 -4- "appears that the aggregate of the bank's investment in land, building, furniture and fixtures will amount to appraximately 225,000 when the transaction is completed. "In view of your recommendation and the information submitted, the Board of Governors approves the proposed additional investment in banking premises by The Brooks I tnk and Trust Company provided the aggregate investment in land, buildings, furniture and fixtures does not exceed 225,000, and prior approval of the State Bank Commissioner ls obtained, if required, for the proposed additional investment in furniture and fixtures. The latter condition ls Imposed because the State law to which you refer apto apply to 'banking house or houses and equipment pears_herein contained'. The approval of the Commissioner rerers only to the erection of the banking house." Approved unanimously. Telegram to the Federal Reserve Banks of Boston, New York, Philad elPhia, Cleveland, Richmond, and St. Louis, reading as follows: "In connection with investigation of main office eumers Home Equipment by Chicago Reserve Bank's Desa t Branch, checking of sales slips representing cash :-Les of listed articles having a time price in excess ) 1;1 140 shows that majority of such sales were made at ' L ne alleged time price even though for cash. Forty-two cash sales of stainless steel tableware out of forty-eight ZIllecked had a cash sale price of t14.95 identical with 1.1 e time price. Accordingly, it is suggested that in con0 ; e!ion with the reinvestigation referred to in our wire rebruary ( 1946 you make a check of cash sales slips °nsumers' Form 114--a) or other relevant matters to deermine whether same pattern exists elsewhere, which may Indicate that cash price-time price breakdown is a fiction." cOn Approved unanimously. el Letter to Mr. Gidney, President of the Federal Reserve Bank of and, reading as follows: staffuReply to your letter of January 22 regarding the Group on Foreign Interests has been delayed until 214 2/14/46 -5- "after a meeting held in New York, January 30, which would give an opportunity for consideration of the points you mentioned. "With respect to representation of other Reserve Banks than New York, it seems to be the consensus that this matter is now in the hands of the Presidents' Conference. The g 4.. 11°uP will welcome any practical arrangement for representation of the Federal Reserve Banks that may be worked out. "With respect to the roster of System personnel, nothing has been done so far beyond the preliminary stage; but do not think there was ever any thought other than that the roster should contain the names of qualified persons Wherever they were in the System. There is now no new 1:alss1on in prospect, however, and in the last four years there have been occasions for only five persons from the :?ard and two Reserve Banks to go on foreign advisory mis1°ns, excepting, of course, those whose services were specifically requested by the State Department, the Army, and other Government agencies. In any event, however, Y2ur . suggestion will contribute to consideration of the °1110Ject when it comes up again." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks readas follows: "In order that we may bring our records on group and chain banking up to date as of December 31, 1945, it will .1,. 3e appreciated if you will kindly furnish the Board with e information outlined in the accompanying memorandum : Tering bank groups and chains operating in your District. ]""e desired information may be incorporated by reference to the reports of holding company affiliates on Form F. R. 437 and accompanying exhibits, in lieu of being repeated tn. the reports herein requested, to the extent that those reports and exhibits cover bank groups. it "In order to facilitate our tabulation of the reports, b 18 suggested that the report relating to group banking h! submitted as early as practicable, to be followed later 7 1 the report on chain banking. If desired, the lists of may be submitted in advance of the complete reports which b "-Lch are to show the degree and manner of control of the 44ks in the groups and chains. r 215 2/14/46 -6- "In addition to the reports covering groups and chains comprising three or more banks, it will be appreciated if krou will furnish the Board with a supplementary report showsimilar information covering affiliations which would 1811 within the scope of the requested reports on group and chain banking except for the fact that they comprise only two banks." Approved unanimously. Memorandum dated February 12, 1946, from Mr. Thomas, Director (4 the L'ivision of Research and Statistics, submitting a voucher for lieilubnz'sement for travel expenses incurred by Lewis N. Dembitz, an Ecolur , 4i-L8t, in that Division, on an official trip to Boston, Massachusetts, ?ebt ' llarY 4 to 7, 1946. The memorandum stated that the voucher needed eiDecial Board consideration because the less expensive Pullman accomI"ati°ns that are arlowed under the Board's travel regulations were t available and recommended approval of the voucher. Approved unanimously. Thereupon the meeting adjourned. Chairman.
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