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1_69 A meeting of the Board of Governors of the Federal Reserve 878ten was held in Washington on Saturday, February 4, 1939, at 11:30 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Davis Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters herein"'ter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the 4a"al Reserve System held on February 3, 1939, were approved unaniintnlay. Memorandum dated February 2, 1939, from Mr. Morrill recommendfor the reason stated in the memorandum, Robert W. Rieseberg, be Promoted to the position of Clerk in the Secretary's Office, Ilith salary at the rate of $1,330 per annum, effective as of February '1939, and that John J. Sowers be appointed as a Page in the Secre16 t " Office, with salary at the rate of 1.,080 per annum, effective es Of the date upon which he enters upon the performance of his duties "ter having passed satisfactorily the usual physical examination. The recommendations were approved unanimously. 170 2/4/39 erne. ir . „1.• Memorandum dated February 3, 1939, from Mr. Morrill recommendthat Mrs. Lillie J. Wiklund, relief charwoman, be appointed on a Permanent basis as a charwoman in the Secretary's Office, with no change 111 hex' Present salary at the rate of 50V per hour, effective immediately, and that Mrs. Almeda Steiner, who had been selected in accordance with the action taken by the Board on July 12 and Decamber 28, 1937, be ap%lilted as a relief charwoman in the Secretary's Office, with salary et the rate of 50V per hour, effective as of the date upon which she enters upon the performance of her duties after having passed satis1 the ---LY usual physical examination. 1 The recommendations were approved unanimously. M.emorandum dated February 2, 1939, from Mr. Smea'd, Chief of the . . Divislon of BAnk Operations, submitting a letter dated January 30 *°131 Mr. Martin, President of the Federal Reserve Bank of St. Louis, cli requested approval by the Board of a change in the personnel e1 4ssification plan of the Memphis branch of the bank to provide for at i 'nerease in the maximum salary for the position of "Maid" in the '‘Ilg House DeparLinent from 4480 to $572 per annum. The memorandum stated that the proposed change had been reviewed and recommended that It be sPProved. Approved unanimously. Letter to Honorable D. W. Bell, Acting Director of the Bureau 191 2/4/39 -3- Of the Budget, prepared in accordance with the action taken at the Meeting Of the Board on February 3, 1939, and reading as follows: "Acknowledgment is made of your letter to Chairman Eccles of January 27 enclosing a copy of a proposed report by the Secretary of Agriculture on S. 31 and reauesting an expression of views on the proposed bill. "The Board is preparing a report on this bill at the request of the Senate Committee on Banking and Currency and a copy will be sent to you. In the meantime, I am sending you copies of statements issued by the Board on August 2, 1937 and April 9, 1938, which indicate the Board's views on proposals of this general character. "There are enclosed comments on the proposed report by the Secretary of Agriculture, together with the copy Of his report." Approved unanimously. Letter to Mr. Parker, First Vice President of the Federal Reserve 13ellic of Atlanta, reading as follows: "Phis refers to your letters of January 23 and 27 relating to the condition report and published statement Of the American Bank and Trust Company, New Orleans, Louisiana, as of December 31, 1938. "It is noted that the bank reported 'None' against Asset item 9, 'Investments and other assets indirectly representing bank premises or other real estate', that the amount :T2,415,700 should have been reported against the it, representing an investment of 44,683,700 in the stock of the American Safe Deposit Co., Inc., an affiliate of the member bank and a $732,000 loan to the same concern; and that the statement of the affiliate, which Was Published on the same date and in the same newspaper as the bank's condition statement, correctly sets forth the extent to which the member bank owns stock therein 8,nd the amount of the affiliate's borrowings from the Member bank. It is understood from your telephone advice tO Mr. Smead that the member bank's failure to report the amount 4,2,415,700 against item 9 of Assets was due ,4> 1.17 2/4/39 -4-- "to the fact that it understood that all investments in affiliates had to be reported against item 4(h) of Schedule B of Form F.R. 105 and, consequently, reflected in item 5 of Assets rather than in item 9. The instructions, Form P.R. 105a, page 15, governing the preparation of condition reports of State bank members, provide that any investment in the capital stock of an affiliated corporation which indirectly represents bank premises or other real estate Should be included in Schedule C rather than Schedule B and) consequently, included in item 9 of Assets rather than in item 5. Apparently the member bank overlooked this part Of the instructions in preparing its report. Incidentally, It is contemplated that when Form F.R. 105 is reprinted item 4 of Schedule B will be revised by adding the words (except investments indirectly representing bank premises Or other real estate)' after the caption 'Corporate stocks'. "In the above circumstances and in view of your recommendation, the Board will not require republication of the December 31, 1938 condition statement of the American Bank and Trust Company, New Orleans, Louisiana." Approved unanimously. Letter to Mr. Young, Vice President of the Federal Reserve Bank °t Chicago, reading as follows: "This refers to your letter of January 31, 1939, i nclosing a copy of a letter from Wisconsin Bankshares Corporation, Milwaukee, Wisconsin, dated January 30, re(lesting an extension of time for filing its report to tLie Board for the year ended December 31, 1938. It is noted that the corporation stated that it would prefer delaying the report until such time as an audit, now in Progress, has been completed, and that it is hoped that the report will be submitted not later than February 15. "As stated on page 1 of Form F.R. 437, the annual !'ePorts are requested for the information of the Board in connection with general voting permits held by holding c°:31Pany affiliates. The Board desires to have the requested information as current as practicable. Inasmuch as the Board has not requested that audited data be sabMitted in the statements and schedules provided in Form 2/4/39 4101. 5410, "P.R. 437, it does not appear necessary for the corporatlon to await the completion of the audit before filing its report to the Board. It is recognized, of course, that the corporation and other organizations in the group must have a reasonable amount of time to compile properly tram their books and records the information requested. Accordingly, the Board will extend until February 15 the time for filing the report, if such time is deemed necesaarY for the proper preparation of the report. Please advise Wisconsin Bankshares Corporation accordingly." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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