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Minutes of actions tahen by tas 50ard cf Governors of the Federal Reserve System on Tuesday, July 2, 1952. The Board met in the Board Room in executive session at 10:00 a.m.. PRESENT: Mr. Mr. Mr. Mr. Martin, Chairman Sumczr,1: Vardam-..n Mills Following the executive session the Secretary was informed by the el- . liairman that the followinG actions had been taken by the Board: Unanimous approval was given to a letter to the Presidents of all Federal Reserve 1.-.1.1-1],cs readin6 as follows: "At the meeting or the Conference of Presidents held 27-28, 1952, t'te Freidents expresoed a teneral ' ee-Ling that it would be help:ul if the Board nf Governors 1:Tould receive the annul budL;ets of the Reserve Banks up to a later date than October 1. , 1 "The Board recognizes that su'r)mission of the budL,ets QY Octdber 1 entails some difficulties, but feels that it sh°uld have sufficient time to permit adequate review and consideration of the budgets before the beginning of the budget period. "Expenditures now aggreuting about 125 million a :rear are covered by the 36 budgets received from the liedRe8erve Banks and brooches. It is obvious that conHdtime 4 required!able to analyze budGets this Lla&ILL1.0e, btain additional information when necessary from the ti and to prepare summries and memoranda for considera°n by the Board. f_ as."In the circumstances, the Board feels that it is not ible to receive the Reserve Dank budget;.; up to a later u te than October 1." Feb j Unanimous approval also was given to the rocoramendation contained in a memorandum dated july. 15, 1952, from the Division of 7/22/52 Personnel Administration recommending, for the reasons stated, that the provision contained in the Independent Offices Appropriation Act of 1953 that leave accumulated by Federal employees during any calendar year must be used prior to June 30 of the following year or be forfeited be not adopted as a part of the Board's leave program. The Board also authorized the Chairman to negotiate for the services of Mr. Charles Molony, of the Associated Press, for employment by the Board with salary ot the rate of $10,800 per annum, it being understood that if the Chairman was unable to obtain the services of Mr. Molony at that salary he would discuss the matter with the Board again. It wee, further understood that Mr. Molony's title as an assistant to Mr. Thurston would be fixed after it was determined whether he would enter the employ of the Board. Unanimous approval also was given to the recommendations contained in the following memorandum submitted by Governor Vardaman under date of July 18, 1952, with the understanding that no notice of the action would be sent to the Federal Reserve Banks until the effective date of the discontinuance of the Division of Selective Credit Regulation: "In view of the fact that the Division of Selective Creal+ Regulation is to be discontinued in the near future, eind the desire of the Defense Agencies to continue the VProgram for the duration of the Defense program, I ieve that the Board's V-loan operations should be carOfl endently as a separate unit of the Board's • by During World War II all V-loan matters were handled an n SmeOffice of the Administrator for War Loans with Mr. nA t ,-"-` as Administrator and Mr. Boothe as Assistant Adminis-Lat°r. During the present period the V-loan program has laus 7/22/52 -3- again been handled by Mr. Boothe, Assistant Director of the Division of Selective Credit Regulation, and Mr. Noyes, the Director of the Divisio n, has acted in nn advisory capacity. "Reports which have reached me from both the guaranteeing agencies and the financial community indicate that the V-loan program is operating very successfully at present with guaranteed loans for defense production purposes aegregating approximately $2 billion. RECOMMEND ATIONS: It is recommended that, at the time the Division of Selective Credit Regulation is discontinued, there be created an Office of Defense Loans and that Gardner L. Boothe, II, be designa ted as Administrator. It is further recommended that J. J. Connell, Assistant, Mrs. Margaret Wolfe, Secretary, and Miss Dorothy Drayer, Stenographer, all presently assigne d to the Division of Selective Credit Re6ula! iOn, be transferred to the Office of Defense Loans at heIr then existing grades and salaries. I would suggest, towever, that Mr. Boothe's salary be reviewed by the Board at an early date to determine whether it is commensurate th the duties he is performing. It is also recommended that as soon as possible after the Office of Defense Loans is established, the Administrator submit through the Budget Officer for consideration and apby the Board a budget which will provide for the .jral 13 4:;anefer of funds from the budget of the Division of Selecl'-31e14I:‘e Credit Regulation to cover expenses of the Office of enee Loans for the remainder of the current calendar Year. "So far as physical location is concerned, it seems de)_art of that the Office of Defense Loans continue to occupy the space on the first floor presently being utilized uY the Division of Selective Credit Regulation. "The method of handling communications with the guaranteeite and the Federal Reserve Banks should continue to c!" lecl as at present. It is not contemplated that there be any change in the present arrangement regarding legal 1 :rcts of the 1 program, which are being handled by Mr. Howard kley, Assistant General Counsel." 1 be h:T The following additional actions were taken by the Board: '108 V2V52 -4Minutes of actions t,11,cn by the Board of Governors of the P.ederal Reserve System on July 21, 1952, were approved unanimously. Letter to Yr. Wiltse, Vice .2r:sident, Federal Reserve Bank of New York, read4 ng as follow,): "In 'Iccordance w:th the reitst, cultlined in your letter of July 14, 1952, the Board .2.,proves the appoint,, 12lent of Thomas E. A&....ras as t:ittiner for the zederal Reserve B 1. )1 or I:ow York, n(1 the designation of Dean W. Bassett as a special assistant examiner. "Please advise us or the date upon 1.,lich the appointment of Mr. Adams is made effective." Approved unanimously. Letter to Mr. Denmark, Vice President, Federal Reserve Bank of Atlanta, reading as folio In accordance with the recommendation contained in Yot.i.r letter of July 14, 19')2, the T',oard approves the aDice) , intment Of Hugh A. Barrett as an e7;.Liainer for the Federal e:cserve Bank or Atlanta. If the apointment is not made -fective August 1, 1952, as p1unn(4, please advise us." f Approved t:nani,aotu,ly. Letter to Mr. Mangels, First Vice President, Yetlora] Rt serve Bank Of San 'rancisco, reading as follows: let "In accordance with th-7_,, request contained in your o - f t!r of July 91 1952, the Board approves the designation Re,tne following specil a3CEtL1Lt eal.'ners for the if rve Bank of San g - rercisco. Za4TIAND • I. Brueckner R. R. Spence SALT LARE4 CITY M. H. Atwood C. E. Bradshaw 11. E. Meyer D. W. Sheets '2,'112:1TLF. WT—Penndngton F. C. StanC„ring L. C. Grundvic G. J. Wriht G. C. Harwood. '7397 7/22/52 -5- "It is noted that 11 employees previously approved as special assistant examiners have been removed from the current list of special vssistant el7.aniners and our records have been adjusted accordingly." Approved unanimously. Letter to Mr. INeigel, secretary, Federal Reserve Bank of St. Louis, reading as follows: , "The Board of Governors approves the payment of salthe following named officers of the Iederal Reserve . 1 , . 13 11k of St. Louis, as requested in your letter of July 11, -?),, for the period July 16, 1952, through May 31, 1993, at the rates indicated, as fixed by your Board of Directors: Name Title Annual Salary l'has J. Abbott, Director of Research Jr. $9,200 Geo. E. Kroner Chief Examiner 9,200 Willis L. Johns8,000 Assistt, , nt Vice President teen Koptis Assistant Vice President 7,200 Gilmore Assistant Vice President 7,200 It is noted that the resignation of Mr. J. H, Gales, Assistant Vice President, became effective July 15, 1952." Approved unanimously. Letter to Mr. Sproul, President, 7ederal Reserve "9ank of Nei, Yor, l'(1401ing as follows: viev of the circumstances described in your letter In ? : cs.fLiotT liu3 0-Y r 3t-,1-1; 1952, the Board of Governors approves the continuapayment of salary to Mr. Alfred L. Pitts, as AsDestant Counsel, for the period SeTtember 1, 19)2, tbrough 1952, at his present rate of ',8,600 per annum, whinber c ;icual-etell:aste fixed by the Board of Directors as indicated 13011„:Although the retention of Mr. Pitts is approved, the 1)01 ' .'1 of Governors continues of the opinion that as a general 1cY all members of the Retirement System should be retired 1 1)0fl eaching retirement ace and that exceptions to this polc14 8t811°111C1 be held to a minimum. However, the Board apprees that in some individual cases the best interests of 7/22/5? -6- "the Bank may be served throuh the retention of the person involved." Approved unanimously. Letter to Mr. Tiodckinson, Chairman, Federal Reserve H7 of Boston, reaaing as follows: "Inf with. the request contained in your July 1952, the Board of Governors approves payment of salary to Mr. Clifford E. Morrissey, Al-?rnate AssistLalt Federal Reserve AL,ent, at the rate of Til,b0 per annum, effective April 30, 1952." Of Approved unanimously. Letter to Mr. Neely., Federal Reserve Agent, Federal ReEierve Of Atlanta, reading as follows: , "In accordance with the request contained in your Jjtter of July 1, 7952, the -Board of Govri.c,rs approves 1,11e Payment of salary to Aana Lou Cullom, Federal Refierve ,T s RePresentntive, Nivj11 'Branch, at the rote of g I er 0 per annun, effective Aw.ust 12 1952." Approved unaniPouly. Letter to Mr. Gidnev, President, Federal Reserve Barilz of Cle-,7eland, , l'eading as follows: The Board of Governors unroves the payment of salc,_ al'iee to the officers named "pelow at the rates indicated 0 f r the T= . Er.4')qtmber 1, 7)52, through April 30, 11,"53, Provided are fixed lj your Board of Directors. , Eale_ Title , Annual Sala.ry It. G. Johnson Cshier C"rge W. Hurst Assistant Cashier V22/52 "The rates which the Board aproves are those proposed in your letter of July Approved unanimoul,ly. Letter to Mr. Leedy, President, Federal Reserve Br.:1IL of iianias city) reading as follows: "In accordance with the reuest contained in your letter of July 10, 1952, the Board. of Governors apfroves tl:le additional expenditure of c;117 a r,onth in connection with the acceptance of the new 'service Agreoplent' at the 44?Dlaha Branch. This .-ouroval as indicated in your letter 18 subject to the further approval of the rtLSlabilization Board." Approved unanimously. Letter to The First Natien1 of Coffeyville, Coffeyville, Icarisae ) reading as follows: t "The Board of Governors of the Federal Rf:serve ,7,ys4?111 has given consideration to your supplel,ental a011Ca 'Ion for fiduciary powers, and grants you authority to act) When not in contravention GJ' state or local law, as rteeistr,-)rof stocics and bonds, -_ssiunect, feceiver, comi ," °f estates of lunatics, or in iny ether fiduciary cavaeltY in which State banks, tri—t coni,n ies or other er,22 P°.rati.°1113 which come into conpetition with 11;Aional bans e Permitted to act under the laws of the state of Kansas. :Ile exercise of addition to those heretothese powers, granted to act as trustee, executor, administrator 0,a Claardian of estates, shall be subject to the prevision... , 0 ;the Reserve Act and the rulr;Lions of the Board Governors of the Federal Rescrve Eystcm. "This letter willbe your authority to exercise the tion-, 7 , 1-Y Powers granted by the Board pending the prepora, 41,. a formal certificate co%ering such authorization, 'lch will be forwarded to you in due course." Approved unaniucly, for transmittal through the Federal Reserve BanI.L of FatIsas City. 1310 7/22/52 -8Letter to the Presidents of all Federal Reserve BanRs and the Vice Presidents in charge of the Detroit and Los Angeles branches, rece,- 14E as follows: "Reference is made to the Board's letter S-1282 (V-13) of March 12, 1951, tronsmittIng instructions for the prep&ratIon and. submission of Forms P.R. 577 and F.R. 579 for use in connection with reporting on Reullition V loans. "The Department of the Air Force has requested that, beining with the re-ports for July 1952, an extra copy of Form l'R. 579 be provided. This will require preparation of the . /1Ur Force 579 in triplicate, as is no done for the Generel berv ices under pragraph 1 on pege 3 of: Adminstrao bove Instructions. It will no longer be necess.ary to submit separate Forms .R. 579 for General Eervices Administration and the Defense ?feterials Procurement Agency, A single combined form should 11° Prepared in triplicate beljnning with the July 31, 1952, reports.H P Approved unanimously.
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