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153 A meeting of the Board of Governors of the Federal Reserve Systern was held in %ashington on Thursday, January 28, 1943, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans 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 hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the FedReserve System held on January 27, 19432 were approved unanimously. Memorandum dated January 23, 1943, from Mr. Paniger, Chief of the D4 . 4371sion of Examinations, submitting the resignation of William H. Seeger) d as an Assistant Federal Reserve Examiner, to become effective ,_ Of the close of business on January 23, 1943, and recommending that the resignation be accepted as of that date. The resignation was accepted. Letter prepared for the signature of Mr. Foulk, Fiscal Agent, t() tirs Fenner, Chief Examiner of the Federal Reserve Bank of Philadelphia, s-t-Lng as follows: wrhis refers to your letter of December 4, 1942, and sub?equent correspondence, regarding the voucher submitted by you lne the amount of 4)195 for overtime compensation paid under the _alr Labor Standards Act of 1938 to certain employees of your Dank who assisted in the examination of the Federal Reserve Bank of New York as of the close of business October 3, 1942. f 154 1/28/43 -2- "This voucher has been approved for payment. However, in view of the questions raised as to the correct method of computing such compensation, the Board's Division of Examinations is giving further consideration to the whole matter for the purpose of determining whether the present arre .r..ngement for paying extra compensation in cases of this kind should be revised. We will, of course, advise you Promptly if any action is taken in this connection." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, reading as follows: "For your information there is enclosed copy of a memoandum from the War Department, dated January 22, 1943, Signed by Lieutenant Colonel Paul Cleveland, which is in reply to an inquiry received from one of the Federal Reserve Banks as to whether or not tax notes can be used to meet renegotiation payments." Approved unanimously. Letter to the Presidents of a1] the Federal Reserve Banks, reading as follows: "You will find enclosed copy of a memorandum from the War Department, dated January 22, 1943, signed by Lieutenant Colonel Paul Cleveland, regarding amendments to guarantee agreements executed by Federal Reserve Banks pursuant to delegated authority. . 'There is also enclosed copy of a letter from the United States Maritime Commission, dated January 26, 1943, signed by R. E. Anderson, Director of Finance, regarding the same subject." Approved unanimously. Memorandum dated January 22, 1943, from Mr. Szymczak, submittin g a memorandum dated January 18 from Mr. Smead, Chief of the Division °r Bank Operations, with respect to the expiration on June 30, 1943, of the Provieion in paragraph 2 of section 16 of the Federal Reserve Act 155 1/28/43 -3- authorizing the Federal Reserve Banks to pledge direct obligations of the United States with the Federal Reserve Agents as collateral secu*V for Federal Reserve notes issued to the Federal Reserve Banks, and reco mmending that the Board request Congress (1) to extend until June 30, 19 the period within which direct obligations of the United States 11144. be pledged with the Federal Reserve Agent as collateral security for Federal Reserve notes and (2) to eliminate the following provision from Paragraph 3 of section 16 of the Federal Reserve Act: "Whenever Federal Reserve notes issued through one Federal Reserve Bank shall be received by another Federal Reserve Bank, they shall be promptly returned for credit or redemption to the Federal Reserve Bank through which they were originally issued or, upon direction of such Federal Reserve Bank, they shall be forwarded direct to the Treasurer of the United States to be retired. No Federal Reserve Bank shall pay out notes issued through another under penalty of a tax of 10 per centum upon the face value of notes so paid out." Approved unanimously. Memorandum dated December 30, 1942, from Mr. Carpenter, submittin "or approval by the Board a draft of letter to the representative Mellibere of the Federal Open Market Committee with which it was proposed t° enclose drafts of entries for the policy record covering actions taken by the Federal Open Market Committee during the year 1942. The irlem°randum stated that after any comments and suggestions of the repmembers of the Committee had been received the entries would be Placed in final form and submitted to the Board for approval. The draft of letter was approved unanimously. 156 1/28/43 -4- Thereupon the meeting adjourned. )61AA—CY Cage,411 Secretary. Chairman.
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