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IGS
Minutes of actions taken by the Board of Governors of the
Federal Reserve System on Monday, January 26, 1973.
The Board met
in the Board Room at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Szymczak
Vardaman
Mills
Robertson
Mt. Carpenter, Secretary
Mt. Kenyon, Assistant Secretary
Mt. Allen, Director, Division of
Personnel Administration
Consideration was given to data which had been sent to the members
Of the Board with Mt. Allen's memorandum of January 2, 19)3, concerning
several persons suggested by Mr. Parten, Chairman of the Federal Reserve
Bank of Dallas, for appointment to the board cf directors of the El Peso
Branch to fill the two existing vacancies on that board.
Following a discussion, it was
voted unanimously to appoint Mr. R.
T. Hoover, Sr., President of R. T.
Hoover and Company, Inc., cotton
merchants, of El Paso, Texas, as a
director of the El Paso Branch for
the unexpired portion of the threeyear term ending December U, 1953,
and to appoint Dr. Everly J. Workman,
President of the New Mexico School of
Mines, Socorro, New Mexico, as a director
of the El Paso Branch for the unexpired
portion of the three-year term ending
December 31, 1955, provided in each case
that Chairman Patten first ascertained
and advised the Board that the appointment would be accepted if tendered.
There was a further discussion of who might be appointed as a
Class C director and Deputy Chairman of the Federal Reserve Dank of Dallas
If
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to succeed Mr. R. B. Anderson, during which reference was made to Chairman
Martin's report at the meeting on January 14, 1953, regarding Mr. Anderson's
statement in a telephone conversation that he would recommend Mr. George
L. MacGregor, Chairman of the Board, President, and General Manager of the
Dellas Power and Light Company, Dallas, Texas, or Mr. Robert J. Smith,
President of Pioneer Airlines, Inc., Da11a6, Texas.
Chairman Martin stated that both Mr. MacGregor and Mr. Smith also
were recommended by Chairman Parten, and that Mr. Dewitt T. Ray, member
Of the Federal Advisory Council from the Eleventh Federal Reserve District,
had indicated that Mr. MacGregor would be an excellent choice.
Following a discussion, Governor Robertson suggested that the Board
agree to appoint either Mr. MacGregor or Mr. Smith, leaving to Chairman
Martin the decision as between the two men on the basis of his judgment in
the matter after further conversation with Chairman Parten.
This suggestion was approved
unanimously.
Secretary's Note: Chairman Martin
later informed the Secretary that
he had discussed the matter with
Chairman Parten and that on the
basis of the authority given to him
by the Board he had requested that
Mr. Parten ascertain and advise the
Board whether Mr. Smith would accept,
if tendered, appointment as Class C
director of the Dallas Bank for the
unexpired portion of the three-year
173
1/26/53
-3term ending December 31, 1954, and as
Deputy Chairman of the Bank for the remaining portion of the year 1953.
Reference was made to a telegram dated January 16, 1953, from
Mr. Woodward, Deputy Chairman of the Federal Reserve Bank of Richmond,
sent in reply to the Board's telegram of January 8, 1953, to Mr. McCormick,
Chairman of the Richmond Bank, in which Mr. Woodward advised that Mr.
William H. Ruffin, of Durham, North Carolina, would not be available to
serve as a director of the Charlotte Branch for the unexpired portion
ot the three-year term ending December 31, 1955, because of the pressure
c't business affairs and his service as a director of two commercial banks.
It was understood that Chairman
Martin would discuss the matter with
Chairman McCormick by telephone, with
a view to obtaining names of other
possible appointees, and report back
to the Board.
The Secretary referred to plans which had been made, pursuant to
e•rProval given by the Board on April 17 and September 11, 1951, to relocate
certain essential operations of the Board at the Federal Reserve Bank of
Ilichmond in the event of an emergency arising out of enemy action.
He said
that work was constantly being done in Washington with respect to the whole
Ptogram of planning for a possible emergency, and that it appeared desirable
to establish a staff committee which would have responsibility for keeping
the Board's plans up to date and coordinating them with the over-all program
1/26/53
Of the Government, such committee to include representatives of the Division of Adyninistrative Services, Legal Division, Division of Personnel
Administration, and Secretary's Office, along with a representative of
the Division of Bank Operations to insure that the Board's program was
kept in line with the plans being worked out by the Federal Reserve Banks
and with the program being developed under Governor Robertson's directionl
to keep the commercial banking system in operation in the event of art
eillergency.
During a discussion of this matter, Governor Vardaman suggested
that such a committee might consider what provision should be made for
Moving to Richmond, in the event of an emergency, the immediate families
Of those persons on the Board's staff who would be expected to go to
that city in accordance with the program previously worked out.
At the conclusion of the discus-'
sion, unanimous approval was given to
the establishment of a staff committee
on the basis suggested, with the understanding that the committee would work
in consultation with Governor Robertson.
Before this meeting there had been circulated among the members of
the Board a memorandum dated January 16, 1923, from Mr. Margot, Director,
1)11Tision of International Finance, stating that Arthur C. Bunco, Chief of the
Eastern Section in. that Division, had been asked by the Venezuelan
1/26/53
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Development Corporation to co to Caracas for approximately one month to
assist in the formulation of a program for increasing agricultural production, that Mr. Bunce was planning to take annual leave of approximately
. one month to accept this invitation, and that he expected to leave as soon
as passport and travel arrangements could be made.
The memorandum also
stated that the work would not be in the same field of economic research
8.3
Mr. Bunce's duties at the Board, that it would be made clear that the
Material prepared and the recommendations contained in any reports would
be made in Mr. Bunce's personal capacity as an expert in the field of
agricultural economics and not in his capacity as a member of the Board's
staff, that the Venezuelan Development Corporation would pay Mr. Bunce
a fee amounting to approximately $2,000 and that no expense to the Board
'ould be involved.
Governor Vardaman had requested that the matter be discussed at a
meeting of the Board, and he now raised the question whether it would be
dvisable to have a member of the Board's staff in the service of an
agenCY of a foreign government, particularly since the assignment would
Ilot be in the same field as Mr. Bunce's duties with the Board and upon the
completion of the assignment, he might still be under certain obligations
e'rising out of that work.
In response to a question by Chairman Martin whether extension of
the principle suggested by Governor V'irdaman would preclude the Board from
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re-employing a person who had previously resigned to accept a position with
a foreign government, Governor Vardaman stated that in such a case, he
vould feel that a very thorough investigation should be made before the
individual was re-employed.
Following a further discussion,
it was agreed unanimously that Governor Szymczak should inform Mr. Bunce
that he should not accept the assignment for the Venezuelan Development
Corporation while serving at the same
time on the Board's staff.
Chairman Martin referred to a letter dated December 2, 1952, which
he had received from Mr. Merle E. Selecman, Deputy Manager of the American
13sa1kers Association, inviting him to sit at the head table at a luncheon to
be given at the Waldorf Astoria Hotel in New York City on February 11 in
c°11nect1on with the Mid-Winter Trust Conference of the American Bankers
Association.
It was recalled that Governor Robertson was planning to
attend a portion of the conference prior to attending the System Trust
4a11iners' Conference, also to be held in New York City, and it was
Illiderstood that Chairman Martin would reply to Mr. Selecman that GovRobertson would attend the luncheon in his place.
There followed a discussion of what practice should be followed
the members of the Board in responding to invitations such as the one
tt°s1 Mr. Selecman, which) if accepted, would require special out-of-town
trips.
1/26/53
-7It was Governor Robertson's view that the Board ought to display
active interest in all banking matters, especially where the Board had
gone to some trouble to indicate an interest on its part in the work of
the organization extending the invitation, but that no member of the
Board should make a special trip unless it fitted in with other plans
or unless he was to participate actively in the program.
Governor Vardaman said that it had always been his view that the
: Chairman of the Board should not attend conventions or other meetings of
bankers' associations except for the purpose of making an address or
Participating actively in the program in some other way.
He also ex-
Pressed the opinion that in certain respects more good could be accomplished
by Participating in the programs of large organizations outside the banking
field, on the theory that the bankers were already informed concerning the
SYstem's policies and operations.
Governor Szymczak commented that each invitation must be dealt
l'ith on the basis of its own merits and that, generally speaking, it would
be inadvisable for members of the Board to make special trips to conventions
Oz
other meetings unless they were invited to have an active part in the
"
4"ogram.
Chairman Martin's comments were to the effect that there were
cicoasions where it was desirable as a matter of public relations for
-8-
1/26/53
members of the Board to accept invitations to speak to both banking and
nonbanking groups, provided that this did not become too much of a burden
from the standpoint of their regular duties.
novernor Mills said that he had been invited to speak at the
Pacific Northwest Conference on Banking at Pullman, .iashington, on April
9, 1953, and that he would like to accept this invitation, especially in
View
of the fact that he had been unable to accept a similar invitation
last year.
It was understood that Governor
Mills would accept the invitation to
speak at the conference, and that he
would represent the Board at the joint
meeting of the directors of the Federal
Reserve Bank of San Francisco and its
branches on March 31.
The meeting then adjourned.
During the day the following addi-
tional actions were taken, with all of the members of the Board except
Governor Evans present:
Minutes of actions taken by the Board of Governors of the Federal
Reserve system on January 23, 1933, were approved unanimously.
Letter to Mr. Pondrom, Vice President, Federal Reserve Bank of
IDallas, reading as follows:
"In accordance with the request contained in your
letter of January 16, 1953, the Board approves the designation of Dewey Carter Williams as a special assistant
17{;
1/26/53
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"examiner for the Federal Reserve Bank of Dallas, for the
specific purpose of rendering assistance in the examination of State member banks only.
Approved unanimo
@FedFRASER