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Ito A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Friday, January 23, 1942, at 10:00 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee 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 hereinett,er referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pede, al Reserve System held on January 22, 1942, were approved unani- Mousiy. tkik Telegrams to Mr. Young, President of the Federal Reserve Of Boston, Mr. Sanford, Secretary of the Federal Reserve Bank New York, Mr. Leach, President of the Federal Reserve Bank of kle1111110nd -r. u Bowman, Assistant Vice President of the Federal Reserve krilt (If Atlanta, and Messrs. Dillard, Stewart, Powell, and Hale, Seces of the Federal Reserve Banks of Chicago, St. Louis, Minneand San Francisco, stating that the Board approves the estab- nt Without change by the Federal Reserve Bank of San Francisco oil Jan 11417 20, by the Federal Reserve Banks of New York, Richmond, t1nta, Chicago, St. Louis, and Minneapolis on January 22, 1942, and tEl 1/23/42 -2- by the Federal Reserve Bank of Boston today, of the rates of discount and Purchase in their existing schedules. Approved unanimously. Letter to Mr. Fleming, President of the Federal Reserve Bank Of Cleveland, reading as follows: "Referring to your letter of January 8, 1942, the Board of Governors approves payment of salaries to Mr. E. A. Carter, Assistant Vice President, and to Mr. Clyde Harrell, Assistant Cashier, at the rates of $7,500 and ' 4,000 per annum, respectively, as fixed by your Board of Directors, for the period January 8, 1942 to April 30, 1942. "For reasons stated orally to Mr. Brainard by Govor Szymczak, the Board is not willing to approve salaries at the rates of $10,000 and $6,500 per annum fixed by your Directors for C. W. Arnold, Vice President, and b Kossin, Cashier, Pittsburgh Branch, respectively, aut approves for the period January 8 to April 30, 1942, salary at the rate of $9,000 per annum for Mr. Arnold and salary at the rate of $6,000 per annum for Mr. a if fixed by your Directors at such rates. 17. "The Board approves giving the title of Assistant :los President to Mr. K. H. MacKenzie, now Manager, Business Statistics Function. " Approved unanimously. Telegrams to the Presidents of all Federal Reserve Banks trans- -46 a draft of Amendment No. 3 (consolidated) to Regulation W. The t4leer alns stated that the trade would not be asked to send representatiNes t ° Washington and that the Reserve Banks were requested to consult ith th e trade and the members of the Federal Advisory Council from he r "Psctive districts with respect to the draft of amendment, and to torw 41'd their comments and the comments and suggestions of the 112 1/23/42 —3— Reserve Banks to reach the Board on or before February 2, 1942. Approved unanimously, together with a telegram to Mr. Edward E. Brown, President of the Federal Advisory Council, transmitting a draft of the amendment and stating that if he, representing the Federal Advisory Council, had any comments or suggestions regarding the amendment they be submitted to reach the Board on or before February 2. Letter to the Presidents of all the Federal Reserve Banks, read1.rig a8 follows: "In the Board's bank debits statement for the first Week ending in March, or possibly April, it is proposed Tao insert the following announcement: Beginning with the month of March (or possibly April), only monthly bank debits figures will be collected by the Board; weekly bank debits statements will be discontinued after issuance of the statement covering the week ending March 4 (or possibly April 1). The monthly figures, which are available from the beginning of 1919, are more significant than the weekly figures for most purposes, since they mooth out the wide and frequently random weekly variations. A considerable reduction in the work of reporting debits will be achieved by the shift to a monthly basis. "On the monthly basis, if it is adopted, only 12 re? 1: rts per year, instead of 52, will have to be compiled r°rn Primary data, and it will no longer be necessary to Prorate and combine weekly figures 12 times per year to obln monthly figures. In addition to the large saving in 24e and other costs to the Federal Reserve System, a considerable reduction in paper consumption would be achieved by he d iscontinuance of the weekly debits statement. Incie+nallY, an article in the American Banker for December 31 the7Lee that 'the weekly figures (of bank debits) reported by Federal Reserve Board fluctuate widely and are meaningless -"'ese leveled out or accumulated'. 1123/42 -4- "The attached form has been drafted for the use of banks in recordin,7 and reporting their figures. If this proposal is adopted, a supply of the suggested form will De forwarded to you, in order that you may furnish enough epPies to cover several months' reports to the clearing houses, banks, or other agencies that submit debits rePorts directly to your bank. The banks presumably will viant to retain duplicate copies for their files. Space ,.) c r daily figures has been provided on the form in the irlief it will facilitate the job of reportingfor many ,anks and some errors and inconsistencies can be detected thereby. If a substantial number of banks prefer not to : 11 ePort their daily figures, a smaller form may subsequently ue PT;ovided for their individual use. t, tit will be observed that provision has been made for ,ue reporting of month-end deposits other than interbank ' ePosits "It is conbemplated that the reports of the individual bank ,s would be collected by the clearing house or other re, 13°rting agency, as at present, but that they would be mailed delivered to the Reserve Banks with or without a summary w ee°f; and that the Reserve Banks' reports to the Board n-d give monthly debits and deposits for each reporting b' o luc) instead of merely total debits for the reporting enter as at present. ab "Before passing finally on the proposal outlined 81°ve, the Board will be glad to receive any comments or ti gestions you wish to make concerning the revision in ' or reporting of bank debits. Please also advise whether of 11°t you think any changes should be made in the list Peporting centers in your district, assuming that only °Ilthly bank debits statistics are collected and published." Approved unanimously. Ilenlorandum dated January 21, 1942, from Mr. Wingfield, Assist- kit 0. Counsel, recommending that there be published in the February Ue nie Or the Federal Reserve Bulletin statements in the form attached to illorandum with respect to the following subjects: Report by Executive Officer of Loans from Another Bank Which Existed at Time of Admission to Federal Reserve System 114 1/23/42 -5Consumer Credit Interpretations of Regulation W Censorship Executive Order Establishing Office of Censorship Designation of Authority to Issue Licenses and Exemptions Government Contracts Executive Order Dealing with War Contracts War Production Board Executive Order Establishing War Production Board Foreign Funds Control Executive Order on Transfers of Property of Foreign Countries and Their Nationals General Ruling, General Licenses and Public Circulars Issued by .the Secretary of the Treasury Approved unanimously. Thereupon the meeting adjourned. Secretary. Chairman.
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