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204 Minutes of actions taken by the Board. of Covernors of the Pedo Reserve System on Friday, February 17, 1950. The Board the Board Room at 10:40 a.m. PRLSET: Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Carpenter, Secretary Sherman, Assistant Secretary Kenyon, Assistant Secretary Morrill, Special Adviser Riefler, Assistant to the Chairman Thomas, Economic Adviser to the Board Vest, General Counsel delson, Director, Division of Personlel Administration Mr. Young, Director, Division of Research and Statistics Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. There Were presented telegrams to the Federal Reserve Banks Philadelphia, Chicago, St. Louis, and San Francisco stettht the Board approves the establishment without change by the Reserve 17',nk of San Francisco on February 14, by the Federal Ban4 of S. Louis on February 15, and by the Federal Reserve flks of uelsr y -ork, Philadelphia, and Chicago on February 160 1950, of thE) 1.1t9-2 of discount and purchase in their existing schedules. 1p roved unanimously. lef°re this meeting, there had been circulated among the mem, b. of Board a memorandum from the Personnel Committee dated '1950, su,iLestLng that the Board consider a recommendation 0 111E7 9 In an attached memorandum from the Division of Personnel 117/50 — ; stration — dated February 3, 1950, that the Board adopt a fixed 11)lieY rith respect to the employment of non-citizens which would state that one of the requirements for appointment to the Board's "f iStcizt the applicant must be a citizen of the United States, except that in special circumstances a non-citizen could be emAoyed on e temporal -I basis for a. specific limited :eriod when it : lee found necessary to employ a person whose --nolTiedge and information lqitlrespect to other countries could not be obtained by the employCitizen. of The policy would not exclude the temporary em- exchange students or trinees from other countries. The ll'-ff memorandum stated that the recormendation was submitted in view ec)rilDlications that arise in processing ar,plicAions for employment °f'11°11-citiz„s because of policies and laws affecting such appoint- °ther Federal agencies, and because it was felt that in view -tile l̀ttitudr, o: - Congress with respect to giving preference to vet1,z,ris ono creer people in Government service, the Board might invite tie if it should employ a non-citizen. There had also been circulated an accompanying memorandum l'°1111'4 t41tt, tile Vest dated January 24/ 1950/ stating that on balance he felt Veterans Preference Act of 1944 to l'31 would be held applicable erqt-aoy,,,pL, in the absence of exce_tional circumstrnces, with l'ect 4) sucg qi,tters as the giving of preference of appointments of ,r- 2/17/5o 1)1'1113°1111e' and in reductions of Personnel, and that it would be his g' l ecommendation at that the Board continue to follow the provisions "he Veterans Preference Act wherever it could do so as a practical tatte ta order to avoid the creation of any issue with respect to tta aPpl ication. 141'. Szy1flcza4 stated that Mr. Nelson had raised the question t "'le P ersonnel Committee because the Division of Research and Sta- tiati IgaS Canad4_ giving consideration to recommending the appointment of a citizen to fill a vacancy in Group S (salary range (-4600 - *5350) azid before making a recommendation in the matter pursuLdit to the approved by the Board on February 15, 1944, the Personnel Comrelt the broc- der question of policy to be followed by the Board 141th res et 0 E ilic',tions from non-citizens should be considered in I'll " Olt of the Veterans Preference Act and other possible cuestions th trn Ight be raised as to why the Board had not appointed P person from th ttee Of ice eister of those available in the Civil Service Commission instead 41uring the ensuing discussion, Mr. Nelson stated that Civil Serv- l'illes d° not permit the appointment of non-citizens in the uovernment '4'ice and that he felt it would not be desirable for the Board to apl'()trIt a o no/1-citizen to a position under circumstances in which a veteran °ther citizen who had also applied for a similar position in the Board's 4'tion might create an issue as to why their applications had been 207 2/17/50 -4- Nected in favor of a non-citizen. rie stated that under the Board's Present 1 ,olicy, which was adopted prior to enactment of the Veterans Prf4f erenee Lct of 1944, employment of a non-citizen was possible but tht p,ny. suci application was to be considered by the Board on the °f c recommendation from the Personnel Committee which would be ade in the li8ht of all the information available. Mr. Nelson also 81:gested that, since the Division of Personnel Administration recently been lDy rec,uested to check references on several applications filed non-citizenc, he felt it would be desirable for the Bo!.--rd to recon- the policy to be followed at this time and that it would be his l'ee°zIllendation that it adopt the policy suggested in the merorandum from the 4vision or Peronnel Administration referred to above. In resl_on e to a ouestion from Chairman McCabe, Young ted th- t thz C;nadian citizen whose applietion had been under considerL-tion vas especially well qualified for the position and that, ith°11,gh dia not know whether the individual was still interested the aPpoint2len4, he felt it could be demonstrated thr,t his qualil'icntions vrere Superior those of tny veterans who had applied for 13°Iti°/-Is with the Board. 1949' Vest stated that the appropriation acts for the fiscal year provided that no Lp1 2roprieted moneys should be used to pay salaries liens, excet -1n eq secifically provided by lav, unless the individual , 208 2/17/50 —5— had taken out his first citizenship papers, and that the Legal Division Was looking into the 1950 appropriation acts ror the purpose of t ining whether they carried a similar provision. In the course of the discussion, Mr. Szymczak suggested that tIleP ersonnel Committee be requested to look into the proposed appointthe Canadian citizen referred to above for the purpose of cleterini ing Whether the circumstances were such that the Board would be flt 'i -1/4 8Ppointing him in preference to other a2plicants. Mr. Szymczak's suggestion was approved unanimously, with the understanding that a similar procedure would be followed in all future cases of a similar nature. Mr. Szymczak referred to the discussion at the meeting of the 13°8-rd and the Federal Advisory Council on November 15, 1949, at which the suggestion was made by the Council that the Board ask the Attorney era]. for an opinion as to whether aproval of Congress would be ecillirecl before any change could be mde in the price at which gold °1114 b tIlett the chased and sold by the Treasury. Mr. Szymczak also said Legal Division had prep red a memorandum on the question and after co nsidering the matter, it was his recommendation that the vileSt on i-- not be raised with the Attorney General and that if it should -ebr llght, up again by members of the Federal Advisory Council, the 80al,„ci state '"at in the circumstances the Board felt it was inadvisable t() ask f sueh .m opinion. that This suggestion was approved unanimously. 209 /17/5o Szymczak then suggested that, for res'ons which he " ed, the Board invite the principal officers and executive direct4)rs of the Intrnatilnal Bank for Reconstruction end Development erld the international Monetary Fund to the Board's offices at some e°111Terlient titde for a meeting et which the members of the Board and it Staf would review for them the domestic economic situation. He he lad tPlked the matter over informally with officers o' the tank and the Fund, as well as SecretFry Snyder, Chairman of the ktional Advisory Council, and that they felt such a procedure would be desirable. He also suggested that such meetings should not be held int,Prvels, but that one might be scheduled shortly after the or thr' Federal lield 1950, Open Market Committee which presumably would be at which time the Division of Research and Statistics, Ithie1111"4 carry the load of presentation, would have an opportunity to ratite. e necessary preparations. There followed a discussion of Mr. Szymczak's suggestion, 61111.111Illich the view WS expressed that if such P meeting were held, it not hr ' considered a precedent for subseauent meetings and th. t the d1Rcussion should not provide representatives of foreign banks End eArma. -4611 intergt-etations of economic data which were not made "le to the public. Vto, Chalrmen McCabe suggested that Messrs. Young, Thomas, and Riefler, 11/ ecliaboration with Mr. Szymczak, study the matter and submit 4).47 rt ehd '<'/17/50 —7— the Board s Consideration a specific proposal as to how such could best be arranged. This suggestion was approved unanimously. Mr. Szymczak also suggested that in the future whenever time Ottld Permit matters of policy in which the Board might have an interest poad hich were to be taken by the National Advisory Council, of which the Chairman Of' the Board is a /umber, be discussed at a meeting of the 11()'ecl,in order that the Chairman, or his alternate, might RTW14 the views 9f the members of the Board before such matters are acted upon by the C°1111cii. This suggestion wns discussed and approved unanimously. Mr. Szymczak then referred to the discussion at the meeting on elrY 3, 1950, of the possible appointment of Mr. Gamble of Brown %°"°17IPanY of St. Louis as a Class C director of the Federal Reserve 4'nk of St LOUip, stLtint-?, that the Personnel Committee had not been ble to °I' ascertain when Mr. Gamble would visit Washington for the purpose discussing the question. There followed a discussion of the matter, during which it was agreed that Mr. Szymczak would call Mr. Davis, President of the Federal Reserve Bank of St. Louis, on the telephone 'or the pur— pose of ascertaining when Mr. Gamble might be expected to visit Washington. 211 a/17/50 -8Mr. Szymczak referred to the discussion at the meeting on Februa 17 3, 1950, of publications of the Board and the Federal R r ese-ve Banks and stated that the Personnel Committee was having information on the matter and would expect to submit a report to the Board in the near future. Szymczak referred to the discussion at the meeting on FebrilerY 3) 1950, regarding Mr. Hitt, First Vice President of the FedtIc'6'1 Reserve Bank of St. Louis, stating that the Personnel Committee LIN felt that Cheirman Dearmont of the St. Louis Reserve Bank should be f°rIlled that the Board would have no objection to Mr. Hitt's com- Pleting his term the tInderstanaingo: office which would ex_ ire on February 28, 1951, with however, that he would not be reappointed for a new term. Following a discussion, it was agreed unanimously that a draft of letter to Mr. Dearmont as outlined by Mr. Szymczak should be prepared for the consideration of the Board. Mr,e gO P/. SzYmczek then referred to the action of the Board at its p -euruary ) 1950, with respect to Presidents and First Tice dents 28 , 4.951, or Federal Reserve Banks whose terms would expire on February 4rIci stated that the Personnel Con-At-tee expected to submit a '"-Pc3rt to 4, ''ue Board within the next few weeks. It was understood that this matter would be put on the docket for discussion early in March. ) 4 AT) 4.? -9At this point Messrs. Riefler, Thomas, Vest, Nelson, and Y°1'114ithdrew, and the action stated with resc)ect to each of the here i-,, referred ferred to WES tken by the Board: inutes of actions taken by the Board of Governors of the Perl Reserve System on February 15, 1950, were aproved unaniZOUsly. ellorndum dated February 14, 1950, from Mr. Young, Direc°f the Divl. . . sion of Research and Statistics reconnending in- sec. , ' In the basic annual salaries of the following employees in Di7ision, effective Februrry 19, 1950: SaLry increase Title From To 'leT'bert _urth Chief, Central and Eastern 7,600 8,800 European Section, Division De,vid L. of Research and Statistics jrove Chief, Latin American 3,300 7,600 Section, Division of 1b Research and Statistics A Ott° Rirschmen Chief, 7estern European and 7,600 8,800 British Commonwealth Section, Division of Research and Statistics tor Approved unanimously. 1"Thdum dated February 17, 1950, from Mt. Bethea, Director O 'e ' 11 the i'. 0inistrative Services, recommending an increase 4sic -"''Y of Jan,.es P. Lynch, reservation clerk in that Divirrora .'3,850 to ;",3,950 per annum, effective February 19, 1950. Approved unanimously. ()Dim . .e —811da from the heads of the divisions indic'ted below, recPPointnents to the st!:ff in those clivisions, effective as of 21_3 -10the dates upon which the appointees enter upon the performance of thj duties after havin passed the usual physical examination: Duration of flo Name Appointment Salary Title 2271LICI7OF THE SECRETARY Z11.5/50 Ella Temporary .Margaret Doutrich File Clerk :5'2,890 (six months) T TI VE SERVICE'S qle 50 Permanent 2,650 Clerk Jean W. l'iYer Approved unanimously. Telegram dated Februz-,ry 16, 1950, to :.4r. 1. P. Browning, Ogden kick ' L eles Company, Ogden, Utah, reading as follows: „:Board of Governors of the Federal Reserve System has 0einted you director of Salt Lake City Branch of Federal "Bank of San Francisco for unexpired portion of term „nd.r eoctIn December 31, 1951, and will be pleased to have your ePt'nee by collect telegram." 4 Approved unanimously. Letter to Mr. Strathy, SecretEr7 of the Federal Reserve Bank of ,Q01.4 'reeding as follows: ttie of "The Board of Governors ap'roves the appointments D. irssrs, J. G. Holtzclaw, Walker D. Stuart, Overton oc JnIlls, John L. Whitehurst, and Ross Puette as members eralae Industrial Advisory Committee for the Fifth Fed?serve District to serve for terms of one year each, be t.4'"ulng March 1, 1950, in accordance wita the actions en bY the Board of Directors and the Executive Committee es' rePorted in your letter of February 14, 1950." Approved unanimously. Lou.Letter to Mr. Weigel, Secretary of the Federal Reserve Bank of Is) reading as follows: Ile Board of Governors approves the appointments of ' 2/17/50 -11:Messrs. G. A. Heuser, Jacob VanDyke, Clarence S. 'rqnke, ?Ines Louis Crawford, and Marvin Swaim PS members of the '-nclustrial Advisory Committee for the Eighth Federal Res District to serve for terms of one year each, beMarch 1, 1950, in accordance with the action taken the Board of Directors as reported in your letter of elpr11:-rY 14, 1950. It is noted from your letter that, after the Committee h, elected its officers for the ensuing year, the Board of '401vernors will be advised." Approved unanimously. Letr to The Calcasieu-Marine National Bank of Lake Charles, Chrios Louisiana, reading as follows: , 70 "The Board of Governors has given consideration to -4 when fiduciary apolication and grants you authority to act, ,o not In contr-avention of State or local law, as trustee of :.2 1 - in connection with an issue of first mortgage bonds emn""e First Baptist Church, Jennings, Louisiana, in the suOnt cf 50,000. The exercise of such authority shall be theJect to the provisions of the Federal Reserve Pct and ReQ reTtalvtions of the Board of Governors of the Federal -erve System. rid 211is letter will be your authority to exercise the: of uel'rY nower -ranted by the Board pending the preparation 1111 11:°r7fic=1 certificate covering such authorization, which "e forwarded to you in due course." Approved unanimously, for transmission through the Federal Reserve Bank of Atlanta. Secretary. Ch irnan.
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