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1145 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, July 22, 1948. PRESENT: Mr. McCabe, Chairman Mr. Szymczak Mr. Evans Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Thurston, Assistant to the Board Memorandum dated July 19, 1948, from Mr. Cherry, Assistant Counsel, reading as follows: "In a directive to all departments and agencies of the Government the Loyalty Review Board has prescribed that the following paragraphs be included in the loyalty regulations or procedures of each Government department and agency: 'The regulations and directives duly promulgated by and under the authority of the Loyalty Review Board, in accord with the provisions of Executive Order 9835, as set forth in Title 5, Chapter II, of the Code of Federal Regulations (13 F.R. 253), constitute the basic and controlling regulations to govern all loyalty adjudicatioa procedures in (name of Department or Agency). 'The following statement of procedures is therefore promulgated in accordance therewith.' "The Executive Order establishing the loyalty profor the Government provides that, although the heads the various agencies shall be personally responsible Ior the effective administration of the program in their agencies, the Loyalty Review Board created by such Ex:Tltive Order is authorized to coordinate and implement l'ue program. Hence, it would appear that the Loyalty lvlew Board has the authority to prescribe the direce. The inclusion of such paragraphs in the Board's Procedures for the administration of the loyalty proEr "would not jeopardize the rights of an employee at,1 ,d would not be objectionable from the standpoint of -le E , .Board. paragraphs may be substituted for the The -Lirst paragraph in the Board's procedures. r 1146 7/22/48 "In the interest of simplicity of procedure and in the interest of an employee whose loyalty to the Govern1 1 )4.4 may be in question, it has been suggested that a Iavorable report after initial determination be made °n1Y to the Chairman of the Personnel Committee by the Loyal+ Board rather than to the Board of Governors as ks3r now provided in the Board's procedures. Of course, this would not preclude the Chairman of the Personnel Committee from taking up such report orally with the other Board members if he so desires. There is set forth beow a proposed amendment giving effect to this suggestion: "Amend the 'Procedures for Administration of EmPloyees Loyalty Program' (Z-2208) by striking out the first sentence of paragraph (c) of Section 3 and substituting therefor the following: 'If the Loyalty Board, on the basis of all available information, reaches a conclusion that a finding clearly favorable to the Officer or employee is justified and that a hearing is not required, it shall report its conclusion, and recommend to the Chairman of the Personnel Committee of the Board of Governors that no further action be taken. Unless the Chairman of the Personnel Committee disagrees with such conclusion and recommendation, he shall refer the matter to the Director of the Division of Personnel Administration Who shall make an appropriate entry of the conclusion and recommendation in the personnel folder of the officer or employee.' "It is recommended that the Board adopt the above am endments." Mr. Cherry's recommendations were approved unanimously. Memorandum dated July 21, 1948, from the Division of PersonArl —411inistration submitting recommendations from the respective ' 4.0n heads that increases in the basic annual salaries of the follo4li-Lng employees in the indicated divisions be approved, effectiv. ' e "ay 25, 1948: 1147 7 22/48 -3- Designation DIVISION OF RESEARCH AND STATISTICS lielen M. Clerk Thompson 111-10-aIgg_OF BANK OPERATIONS Raymond 47.-Tolb Robert E. Sherfy Loretta M. Gohean Marjorie F. Jones Margaret Muehlhaus Rita S. Boyer Margaret K. Ball Jut Bryan Catherine Benson Esther G. Peck MarY L. Roberts Grace Van Carl M. Order Skinner Analyst Senior Clerk Senior Clerk Senior Clerk Administrative Clerk Clerk Clerk Clerk Clerk Clerk Clerk Clerk Clerk Salary Increase To From $2,648.76 e2,799.24 4,479.60 4,103.40 3,978.00 3,978.00 3,727.20 3,601.80 3,476.40 3,476.40 2,724.00 2,724.00 2,724.00 2,724.00 2,648.76 4,605.00 4,228.80 4,103.40 4,103.40 3,852.60 3,727.20 3,601.80 3,601.80 2,799.24 2,799.24 2,799.24 2,799.24 2,724.00 Approved unanimously. Letter to Mr. Carstarphen, Secretary and General Counsel of the Federal Reserve Bank of St. Louis, reading as follows: "In view of the considerations outlined in your letter of July 15, the Board will interpose no objection to Your Bank's undertaking the conversion of the generating equipment in the Bank to an emergency stand-by status and under normal circumstances obtaining all needed electrical energy from the local public utility company. "It is understood that the estimated cost of the above-mentioned program is approximately $55,000, includthe replacement at the present time of one of the -rect currant generators in the building with an alcurrent generator, and that at some future nme it will be necessary to incur some further exTease ror replacing the remaining direct current generator 14ith an alternating current generator." V Approved unanimously. Letter to Mr. Earhart, President of the Federal Reserve Bank San F rancisco, reading as follows: 1148 7/2248 -4- "This will acknowledge receipt of your letter of 17 7, 1948 in which you advised that actual expenses for 1948 will exceed budget estimates for the year by $7,956 in the Research and Statistical function at the head office. It would appear from the statements made in your letter that these increased expenditures are necessary and appropriate notations to this effect are being made on the Board's records. As you perhaps know, we will treat the above amount as an expenditure in excess of the budget, not as a change in the budget." Approved unanimously. Memorandum dated July 21, 1948, from Mr. Van Fossen, Assistant D irector of the Division of Bank Operations, recommending, 1'01 'the reasons stated in the memorandum, that $200 be added to tIle Miscellaneous item in the 1948 non-personal budget of that Division. Approved unanimously„ Secretary. APP1'°ved: Chairman':
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