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58 A meeting of the Board of Governors of the Federal Reserve 85r8te'2 ' was held in Washington on Friday, Zanuary 14, 1938, at 10:30 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Davis Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Wyatt, General Counsel Mr. Ooldenweiser, Director of the Division of Research and Statistics Mr. lead, Chief of the Division of Bank Operations Mr. Dreibelbis, Assistant General Counsel Mr. Thomas, Assistant Director of the Division of Research and Statistics Mr. Blattner, Assistant Director of the Division of Research and Statistics Mr. Garfield, Senior Economist in the Division of Research and Statistics Mr. Williams, Assistant Counsel There was presented a draft of letter to Mr. Helm, Secretary 131° tOf the Federal Reserve Bank of Kansas City, reading as follows: "The salaries fixed by your Board of Directors for the Officers of the bank for the year 1938, as submitted with Your letter of January 7, are approved by the Board as follows: Name G. H. Hamilton C. A. Worthington G. Leedy Title President First Vice President Vice President, General Counsel and Secretary Annual salary $25,000 16,000 15,000 1/ 59 1/14/38 Annual "Name J. W. Helm John Phillips, Jr. E. P. Tyner G. H. Pipkin M. W. F. Park D. W. Wooley S. A. Wardell Title Vice President and Cashier Asst. Cashier Asst. Cashier Asst. Cashier Asst. Cashier Asst. Cashier Auditor stILIKX 42,000 7,000 6,800 6,000 6,000 5,000 8,000 Denver Branch J. E. Olson S. A. Brown /* W. Jones Managing Director Cashier Asst. Cashier Oklahoma City Branch 10,000 4,800 3,900 C. E. Daniel R. O. Wunderlich R. L. Mathes Managing Director Cashier Asst. Cashier 10,000 5,700 4,300 Omaha Branch L. H. Earhart G. A. Gregory William Phillips 0. P. Cordill Managing Director Cashier Asst. Cashier Asst. Cashier 10,000 6,000 4,800 4,300 1/ Effective February 1, 1938. Salary approved by Board of Governors December 29, 1937. "The Board also approves payment of a retainer fee to Mr. G. Leedy, Counsel, at the rate of 4,9,600 per annum for the Period January 1-31, 1938,. "It i$ noted from your letter that William Phillips and P. Cordill, Assistant Cashiers of the Omaha Branch, and 4, A s Brown, Cashier, and J. W. Jones, Assistant Cashier of rj.Denver Branch, have been authorized to continue tempora1Y in their present positions, at the same salaries, pending :hej possible reassignment and the possible dismissal of at teest one of them. It is understood that you will advise the when any change is made in the status of these officers ! 3- 1Ld that, if they continue as officers in the changed status, the salaries proposed for them in the new positions will be subaitted to the Board for approval." Approved unanimously. Reference was made to Senate Bill 8-2171 which was introduced in 60 1/14/38 -3- the Senate on April 15, 1937 by Senator Byrnes and which would amend Section 12B of the Federal Reserve Act so as to eliminate from the computation Of the seniannual assessment paid by an insured bank to the Federal Deposit Insurance Corporation all deposits of other banks (except deposits Of trust funds) held by the insured bank. Shortly after the bill was introduced a routine request for a report on the bill was received from the Banking and Currency Committee of the Senate but, in accordance with the P°11-eY agreed upon by the Board, the request was filed without action. A few days ago a telephone request was received from the office of the Banking and Currency Committee requesting that a report on the bill be made and the office was advised that, while the matter was one primarily Within the jurisdiction of the Federal Deposit Insurance Corporation, the request would be brought to the attention of the Board. In accordance with the informal understanding reached by the members of the Board, Mr. Williecale, Assistant Counsel, called on Senator Byrnes (mho had made the request that a report be obtained from the Board) and inquired whether he had considered that a possible effect of the proposed amendment would be an Widesirable concentration of bank balances in reserve and central reserve cities. Senator Byrnes replied that the possible effect referred to by _ Mr. Williams had not been considered; that such a result might outany benefits that might be obtained by the amendment; and that if the Board regarded the possibility as a serious one he would like to have a report fram the Board regarding it. Mr. Williams called Senator 61 1/14/38 -4- Byes' attention to the fact that a report had not been made by the Federal Deposit Insurance Corporation on the bill and that it was assumed that the Board would feel that a report should be made by the Corporation before one was filed by the Board. Morrill In this connection, Mr. read a copy of a letter addressed to the Chairman of the Senate Banking and Currency Committee by Mr. Crowley, Chairman of the Federal Deposit I nsurance Corporation, under date of January 12, 1938. After a discussion of the proposed amendment and possible effects thereof, Messrs. Wyatt, Morrill and Goldenweiser were requested to prepare for consideration by the Board a draft of a report. At this point Messrs. Smead, Dreibelbis, and Williams left the Meeting. Further reference was made to the memorandum prepared under date of December 7, 1937, by Mr. Goldenweiser on the subject of improvement Of stat • istical information collected on business conditions, and there ellstled a discussion of the manner in which the procedure might be preented to the Federal reserve banks. During the course of the discus- sion the suggestion was made that in the boards of directors of the Fedn,. 1 reserve banks and the Industrial Advisory Committees there 1Ore ndoubtedly a number of individuals who had broad contacts with the . "lelness interests in the district and who could be helpful in maksuggestions with respect to the procedure to be finally adopted "d the most desirable method of putting it in operation. 62 1/14/38 -5Upon motion by Mr. Ransom, Messrs. Szymczak and Davis were requested, with the assistance of Mr. Goldenweiser, to submit to the Board a recommendation as to the procedure to be followed, the individuals who should be consulted, and a draft of letter to the Presidents or Chairmen of the Federal reserve banks asking them to extend invitations to the individual or individuals in their respective districts selected to consult with the Board and inclosing an outline of a program for the meeting to be attended by such individuals. In taking this action, it was understood that the recommendation and draft of letter would be submitted promptly in order that, if possible, the proposed meeting might be held prior to the next conference of Presidents of the Federal reserve banks. At this point Messrs. Thurston, Wyatt, Goldenweiser, Thanes, Blattner and to each of with Garfield left the meeting and consideration was then given the matters hereinafter referred to and the action stated respect thereto was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal Reserve System held on January 13, 1938, were approved unani- raell Sly, Telegrams to Messrs. Kimball and Stewart, Secretaries of the l'ederel Reserve Banks of New York and St. Louis, respectively, stating that the Board approves the establishment without change by the New on January 13, 1938, and by the St. Louis bank today, of the rates Of discount and purchase in their existing schedules. Approved unanimously. Memorandum dated January 12, 1938, from Mr. Morrill recommend- 63 1/14/38 -6- jag that, for the reasons stated in the memorandum, Miss Myriam O'Brien, a stenographer in the Office of General Counsel, be transferred to the Otric 0 of the Secretary, with no change in her present salary at the rate or $1,560 per annum, effective as of February 1, 1938, with the under standing, however, that in case the need for Miss O'Brien's services should not continue after the completion of the work referred to in the memorandtun, her employment may be terminated. Approved un Telegram to Mr. Young Qf Vice President of the Federal Reserve Bank Chicago, reading as follows: "In accordance with the recommendation contained in Your telegram of January 13, Board extends until February la) 1938, time within which 'The Oakland County' State Bank', Milford, Michigan, may accomplish membership in the System." Approved unanimously. Thereupon the meeting adjourned. p Secret ed: Chairman. Ty.
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