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256 Minutes of actions taken by the Board of Governors of the -8-1 tet Reserve System on Thursday, February 26, 1948. The Board -11 the Special Library at 12:20 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman pro tern Szymczak Draper Evans Vardaman Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Vest, General Counsel The principal item on the agenda for this meeting was the cleternlination of the action to be taken by the Board with respect tcithe ETPointment of members of the Personnel Committee for the Etr beginning March 1, 1948. The matter was discussed, and while there (liseu s agreement with the suggestion previously made in informal .bechssicx4 that only one member of the Personnel Committee should the tellged each year, it was decided to take no action to appoint he,d elabers of the new Personnel Committee until after Mr. McCabe eell confirmed and had assumed his duties as Chairman of the totird. Che.irman Eccles referred to recent informal discussions I' lating to the use of the Board members' dining rooms, and there : 11 Et cliscilseion of the various problems that had arisen in con-cvtion. therewith. 257 2/26/48 -2At the conclusion of the discussion, upon motion by Mt. Vardaman, Mt. Draper was asked to study the matter and submit his recommendation for consideration at a future meeting of the Board. At this point Mt. Vest withdrew and the action stated with N13, -et to each of the matters hereinafter set forth was taken by thelloard. Peaeral Minutes of actions taken by the Board of Governors of the Reserve System on February 25, 1948, were approved unani- 11101284. Letter to Mr. Peterson, Assistant Cashier of the Federal Ileeerve B of Minneapolis, reading as follows: ."This refers to your letter of February 19, reParagraph C of the 'Rules for uniform applibY t0 ; ! 14 Federal Reserve Banks in waiving penalties el ' ; eficiencies in reserves of member banks', enWith the Board's letter S-902 of March 5, "BY 'deposits' in the paragraph referred to is illeant net demand deposits' and 'time deposits',i.e., the 8.mounts to which reserve requirements apply." Approved unanimously. a tire Letter to Mt. Wellman, Deputy Chairman of the Federal Reor San Francisco, reading as follows: The Board of Governors has received your letter ; s ITtlarY 28, 1948, relative to the frequency of 131, e'l audits and is pleased to note that your Generj alla Auditor will undertake to make two balance sheet ts of each branch during the calendar year in the r1414.s. or 258 2/26/48 -3"Although, as mentioned in your letter, there would appear to be little difference between a policy of two %1(lit6 in a 12-month period and the Board's suggestion two audits in a calendar year, the policy followed at Your Bank has resulted in six branch audits during each of the last four calendar years instead of eight, ! is would be the case if two audits of each branch were zade during a calendar year. "You suggest that perhaps the Board feels that ch branch should have a resident auditing staff. s A_ uch suggestion was intended. The Board does not sire that the effectiveness of the program of branch by head office auditors be diminished in any The Board's suggestion that the branch audit ofc'gram be reviewed related primarily to the frequency t. the audits under the present program which for some - originally as a wartime measure - has been less all the former prewar policy required." Z Approved unanimously. Letter to Mr. Whittemore, President of the Federal Reserve er Boston., reading as follows: pet, "This will acknowledge receipt of your letter of pi ' 1:11e ' rY" 9, 1948, in which you enclosed a copy of SupNo. 1 to the 1948 budget of your Bank, contain$3 estimates of additional expenditures aggregating )();),() to be made in 1948 beginning about March 1. ite In accordance with this supplement the following itir ! Is in the 1948 budget report for your Bank have been -1"eased by the amounts shown. "Furniture and Equipment 111% ellases ""lrniture and equipment $ 4,000 t purchseda i entais Plarniture and equipment rented (comitelY distributed) Less distributed to other Units _32,000 $36,000 32,000 4,000 Stock of Supplies stationery, and supplies Less distributed 27,000 27,000 259 2/26/48 "Check Collection Country Checks Printing, stationery, and supplies E4uipment rental 27,000 32,000 39,000 $63,000" Approved unanimously. Letter prepared for Chairman Eccles' signature to Mt. J. 0. Peck,, -"esident, Nebraska Bankers Association, Columbus, Nebraska, rsEo4 -4-lag as follows: "Mr. Needham, General Counsel for the American Beaakers Association, has advised us of the visit to W4shington during the week of March 15 of officers the Nebraska Bankers Association and we have sug;;sted to him that you arrange to include in your °81ILm a visit with the Board of Governors. 'Officers of the Minnesota Bankers Association " al be in • Washington during that week and they have ac ricePted an invitation to luncheon at the Board's of: t 8 on Wednesday, March 17, 1948, at 1 p.m. The ss;:ers of the Board will be delighted if the repretivee of your Association will also join us for i he—le\ileorl at that time. Mr. Needham has told us that jell-eyed this would fit in with your plans. It is' viin_ticiPated that all of the members of the Board oe here and we will be looking forward to your Approved unanimously. - Chairman pro tem. Secretary.