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Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, January 19/ 1953. The Board met in executive session in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Evans Vardaman Mills Robertson Following the executive session, the Chairman informed the Secretary that unanimous approval had been given to a request by Mr. Young, Director, Division of Research and Statistics, for authorization to travel to New York, New York, on January 22-23, 1953, to attend a meeting of the Policy Committee of the Committee for Economic Development to discuss a draft statement on credit and monetary policy, to attend a dinner to be tendered by the Committee for Eccnomic Development in honor of Mr. Marion B. Folsom, and to attend a meeting of a subcommittee of the Committee for Economic Development to discuss tax and budgetary policy for the fiscal year 1954. The meeting then adjourned. During the day the following additional actions were taken by the Board, with all of the members Present: Minutes of actions taken by the Board of Governors of the Federal Reserve System on January 161 1953, were approved unanimously. Telegram to Mr. Erickson, President, Federal Reserve Bank of Boston, reading as follows: -2- 1/19/53 "Reurtel January 19, Board approves effective January 20, 1953, rates of 2 per cent on discounts and advances to member banks under Sections 13 and 13a; 2-1/2 per cent on advances under Section 10(b); 3 per cent on advances to individuals, partnerships or corporations other than member banks under last paragraph of Section 13; and 3 to 5-1/2 per cent on loans under Section 13b direct to industrial or commercial businesses, including loans made in participation with financing institutions. Otherwise, Board approves establishment, without change, of rates of discount and purchase in Bank's existing schedule. Board will announce change in discount rate immediately." Approved unanimously. Memorandum dated January 12, 1953, from Mr. Sloan, Director, Division of Examinations, recommending the appointment of Alexander S. Barnes as Assistant Federal Reserve Examiner in that Division, on a temporary-indefinite basis, with basic salary at the rate of 10,795 per annum, and with official headquarters in Washington, D. C., effective as of the date upon which he enters upon the performance of his duties after having passed the usual physical examination and subject to the completion of a satisfactory employment investigation. Approved unanimously. Letter to Mr. Bilby, Vice President, Federal Reserve Bank of liew York, reading as follows: 12S 1/19/53 -3- "Reference is made to your letter of January 9, 1953, requesting the Board's approval of the payment of salary to Mr. Edmund J. McMullen. "Subject to the approval by the Board of Governors of the appointment of Mr. McMullen as an Assistant Examiner for the Federal Reserve Bank of New York, the Board approves for a period of not exceeding one year from January 8, 1953, the payment of salary to Mr. McMullen, while serving in such position, at his present rate of $5,391 per annum, which is $291 in excess of the maximum established for the grade in which the position is classified." Approved unanimously. Letter to Mr. Meyer, Vice President, Federal Reserve Bank of Chicago, reading as follows: "In view of the circumstances described in your letter of January 9, 1953, the Board of Governors approves the payment of salary to the fo)1(2-7.ing employees, effective as of November 1, 1952: Proposed Proposed Equiv.Grade Dept. Job Name Grade Ann. Sal. Annual Salary Maximum $3,940 —6— $li,712.214 $4,o98 66 Cwynar, Ignacy $3,940 6 $4,712.24 $4,098 Ukinski, Stanley A. 66 maximum the "The Board notes that these salaries exceed established for the grade in which they are classified, and are based on a 44 hour week, 40 hours at straignt time and 4 hours at one and one-half times the hourly rate." Approved unanimously. Letter for the signature of the Chairman to Mr. Johns, President, Federal Reserve Bank of St. Louis, reading as follows: "Due to a series of unrelated developments, the Board has recently lost three of the economists employed in the 129 -4- 1/19/53 "Banking Section of its Division of Research and Statistics. We are moving as expeditiously as possible to fill these vacancies with qualified men but, as you know, the recruiting of the caliber of person we want here does require some time. "Both to help us over the heavy load of work which we anticipate in the next month or two and also to provide him with some experience in working with the economic staff here at the Board, it occurred to us that it might be possible for you to loan us the services of Mr. William J. Abbott, Jr., the Director of your Research Department, for thirty days, beginning about the first of February. The Board would be prepared to reimburse you for Mr. Abbott's salary and expenses for that period, if you so desire, but in view of the relatively short duration of the assignment you may prefer to handle it on a nonreimbursable basis. "If you or Mr. Deming or Mr. Abbott would like any further information before reaching a decision in the matter, I suggest that you get in touch with Mr. Young." Approved unanimously. Letter to the Board of Directors, The Hartford-Connecticut Trust Company, Hartford, Connecticut, reading as follows: "Pursuant to your request submitted through the Federal Reserve Bank of Boston, the Board of Governors approves the establishment and operation of a branch at Danielson, Connecticut, by The Hartford-Connecticut Trust Company, Hartford, Connecticut, provided the merger of The Hartford-Connecticut Trust Company with Windham County National Bank of Danielson, Danielson, Connecticut is effected substantially as proposed) and prior formal approval of the State authorities is obtained." Approved unanimously, for transmittal through the Federal Reserve Bank of Boston. 130 r-1/19/53-) Letter to Mr. Gentry, First Vice President, Federal Reserve Bank of Dallas, reading as follows: "This refers to your letter of December 29 and to Mr. Leonard's recent conversation with you at Pittsburgh regarding a preparedness program for the storage of currency. "The program calls for the build up of substantial reserve supplies of dollar bills, and the further accumulation of unfit $1 bills is being considered by the Treasury as a temporary expedient. "From the information you have furnished it would seem that to participate fully in the program additional storage facilities would be required regardless of whether the supplies would consist of unfit bills or of new bills. It would seem appropriate, therefore, for you to proceed with preparations to make the record vault suitable for the storage of dollar bills. It is noted that you contemplate that the expense involved would be approximately $5,000 to $6,000." Approved unanimously. Letter to the Comptroller of the Currency, Treasury Department, Washington, D. C., reading as follows: "This refers to our letter of August 15, 1952, requesting that a supplemental order for printing 45,000,000 sheets of Federal Reserve notes during the fiscal year ending June 30, 1953, be placed with the Bureau of Engraving and Printing. It is respectfully requested that 31,030,000 sheets of this total be allocated in the amounts and denominations stated for the following Federal Reserve Banks: -6- 1/19/53 Boston New York Philadelphia "Denomi nations $5 10 400,000 11325,000 20 50 100 175,000 10,000 15,000 42,000,000 6,000,000 18,000,000 5 10 850,000 41800,000 51,0000000 576,000,000 20 1,450,000 348,000,000 50 100 5 10 110,000 661000,000 85,000 102,000,000 550,000 11425,000 475,000 171,000,000 114,000,000 100 35,000 20,000 21,000,000 24,000,000 5 10 500,000 1,250,000 20 50 4501000 50,000 100 20,000 5 10 550,000 675,000 20 50 675,000 81,000,000 162,000,000 5 10 451000 25,000 550,000 625,000 550,000 1,150,000 31125,000 27,000,000 30,0001000 333000,000 75,000,000 132,000,000 69,0001000 3751w0,000 20 50 100 1,125,000 75,000 60,000 270,000,000 45,000,000 72,000,000 20 Richmond Atlanta 100 5 10 20 Chicago Amount $24,0001000 1591000,000 5o Cleveland Number of sheets 331000,000 30,000,000 150,0001000 1081000,000 30,000,000 24,000,000 331000,000 132 -7- 1/19/53 St. Louis $5 10 20 50 100 Number of sheets 550,000 900,000 500,000 25,000 30,000 Minneapolis 5 10 20 50 loo 150,000 225,000 175,000 5,000 10,000 91000,000 27,000,000 )42 p000,000 3,000,000 12,000,000 Kansas City 5 10 20 5o loo 250,000 375,000 275,000 15,000 20,000 15l000l000 45,00o,o0o 66l000,000 9,000,000 24,000,000 Dallas 5 10 20 50 loo 350,000 525,000 350,000 15,000 25,000 21,000,000 63,000,000 84,00ol000 ?l000,000 30,000,000 San Francisco 5 10 20 5o loo 800,000 1,300,000 875,000 30,000 30,000 48,000,00o 156,000,000 210,000,000 18,000,000 36,000,000 Totals $ 5 10 20 50 100 6,650,000 16,550,000 7,075,000 415,0o0 34ol000 "Denominations Amount $ 33,000,000 108,000,000 120,000,000 15,000,000 36,000,000 $ 399l000l000 1,986,000,000 11698,000,000 249,000,00o 408,000,000n Approved unanimo ,•°"' Secretary
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