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20S A meeting of the Board of Governors of the Federal Reserve 83%tem was held in Washington on Saturday, June 13, 1942, at 11:45 adne PRESENT: Mr. Eccles, Chairman Mr. McKee Mr. Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinreferred to was taken by the Board: Memorandum dated June 12, 1942, from Mr. Nelson, Assistant Secretary, recommending (1) that Dean E. Brundage and Carl J. Gellogg, elevator operators, be promoted to the position of page in the Secre- t47's Office, with an increase in their salaries from ',1,200 to $1,260 13er'8411111-111, effective as of June 16, 1942, and (2) that James F. Bird Ilcil)°nalci A. Hurst be appointed as elevator operators in the Secret47's °ffice on a temporary basis for an indefinite period, with sales at the rate of P11200 per annum, effective as of the date upon ' c they enter upon the performance of their duties after having 1.`leecl satisfactorily the usual physical examination. Approved unanimously. Mezorandum dated June 11, 1942, from Mr. Nelson, Assistant ..r.etar7 / recommending (1) that Mrs. Grace Phillips be appointed as it tie clerk in the Secretary's Office, with salary at the rate of )000 Per annum, effective as of the date upon which she enters upon ' t4 Pe rt°rmance of her duties after having passed satisfactorily the 6/13/42 -2481141 1047sical examination, and (2) that the following increases in 88.1611.es of employees in the files section of the Secretary's Office be approved, effective as of June 16, 1942: IlAW& Rggialation tether G. Crews terrlice O'Brien iviar margery.Ic, Haislip D. maize 1,_ 111elta E. ' jel'Y U. 'Ward Jacobs Ll File Clerk File Clerk File Clerk File Clerk File Clerk Junior File Clerk 3-11-•gaZT—Inar-CS-§.-•e To From $1,920 1,860 1,620 1,620 1,500 1,440 $2,040 2,040 1,740 1,740 1,620 1,560 Approved unanimously. Letter to the board of directors of the "Tipton Farmers Bank", on '*--1-ssouril stating that, subject to conditions of membership tliziber ed 1 to 3 contained in the Board's Regulation H, the Board apProve_ a the bank's application for membership in the Federal Reserve ratea 4nd for the appropriate amount of stock in the Federal Reserve tklac °f St. Louis. Approved unanimously, for transmission through the Federal Reserve Bank of St. Louis. Letter Itt4t eo.11 to the board of directors of the "Seguin State Bank & Seguin, Texas, stating that, subject to conditions of mem, ehip 11041,4 uumbered 1 to 6 contained in the Board's Regulation H, the ‘4 eilProves the bank's application for membership in the Federal 44aripe s Ystem and for the appropriate amount of stock in the Federal 4rve ma...Ink of Dallas. 1210 6/13/42 -3The letter also contained the following special comment: "It is understood that the bank is to discontinue handling trust business until a sufficient volume is availto justify the expense of installing the necessary records but that it has some potentially profitable business which may be acquired later and the management wants "e bank admitted to membership on the same basis as banks : xercising fiduciary powers so that it will be in position Z? accept new accounts at any time. The examiner expresses ;41? opinion in this connection that the bank has the facilI ttles and that the management is qualified to conduct a heust department satisfactorily. In the circumstances, fore, and with the understanding that, when it is de) l'-.1ded to accept trusts again, steps will be taken by the tall to provide the necessary organization and equipment Insure efficient administration of the accounts, the ,c)ard has prescribed the standard trust conditions which ;re.prescribed for aJ1 banks coming into membership and exAreleing fiduciary powers, and it will not be necessary un;er the provisions of condition of membership numbered 1 or the bank to obtain the Board's permission to accept new rUSt business. certain powers whi"It appears that the bank possesses re el.1 are not being exercised and which are not necessarily u red in the conduct of a banking and trust business, 811clul sue" as the powers to guarantee securities and to act as firrletY. Attention is invited to the fact that, except for to exercise any powers not elarY powers, if the bank desires actually exercised at the timeof admission to member1713 'it will be necessary under condition numbered 1 to 013. sl.' 1/1 the permission of the Board of Governors before exthem. In this connection the Board understands p01, 11 there has been no expansion in the scope of the cora ate powers exercised by the bank since the date of Its PPlication for membership." e 1 . Approved unanimously, for transmission through the Federal Reserve Bank of Dallas. Memorandum dated June 9, 1942, from Mr. Goldenweiser, Director "the D. lvision of Research and Statistics, reading as follows: 6113/42 —4— "We have received the attached request from the Divi8i°n of Civilian Supply of the War Production Board that we now collect monthly statistics of department store iniNrentories by departments instead of the quarterly statistics °egun last October at that Division's request. These data are currently needed by the War Production Board and the uffice of Price Administration for the determination of Paicies in connection with control of inventories and raktIoning of goods for civilian use. Under the circum!Lances it seems desirable that we obtain this additional i rformation for the present, and there are attached, for °ard approval, letters to Mr. Henderson of the Office of , ;rice Administration, Mr. Weiner of the War Production c°ard, and the Federal Reserve Banks explaining the proedure that we propose to follow. "'We have consulted with representatives of the War Pr oduction Board and the Office of Price Administration, ere the data are likewise used extensively, and have entatively agreed upon the program which is set forth ln the attached letters. "It is likely that the extension of this service, t°gether with others recently inaugurated, require 4 e Pansicn in personnel at some of the Banks. In view e„the importance of the information, such additional :Penditure would seem justifiable. In this connection "Ur attention is called to the last paragraph of the Pl'oPosed letter to the Federal Reserve Banks." n Approved unanimously. The letter to the Presidents of all the Federal Reserve Banks, which it was proposed would be sent after approval of the suggested Procedure by Mr. Leon Henderson, Administrator of the Office of Price Administration, and Mr. Joseph Weiner, Deputy Director of the Division of Civilian Supply of the War Production Board, was in the following form: ".The War Production Board and the Office of Price trtration have indicated a need for monthly informap;'n.regarding department store stocks by departments. To o thevicie such information, the Board has been asked to change bas.Present reporting system from a quarterly to a monthly thel!' We should like to aid these agencies in obtaining uesired information. It is contemplated that the -5n collection of monthly data would begin with sales during June and stocks as of June 30. Instructions relative to the collection of monthly data and the transmittal of rePorts to the Board are attached. "'Members of the Board's Division of Research and Sta! istics have met with representatives of the interested ar agencies and have discussed with them the need for such ts7,'tistics, their use, and the best methods of obtaining ,usra. These agencies have the authority, as a matter of :aw, to require such reports as they may need in the perof their duties. They agree, however, with our view that it is preferable to make use of the arrangements l isreadY established by the Reserve Banks for collecting ' acree data and believe that information thus obtained will tl,equately serve their present purposes. Collection of "e data through the Reserve System would afford the re. 1°1ting stores an opportunity to continue making their c!Ports on a voluntary basis and through the familiar t annsls of an agency that has had long experience with i"s Problems of gathering and interpreting this kind of trcrmation. All leading department stores should report se data and it is believed that if this situation is Properly understood full cooperation will be obtained. "As in the past, it is contemplated that the informas,'T will be made available outside the System only in ' s' ten form as will not disclose the figures for individual 1.11"sa, and the System will not be called upon to engage st anY policing activities on the basis of the department re inventory reports. The purpose of the monthly fig:18 to provide responsible war agencies--particularly tho witcls concerned with civilian supply and price controls-fa_ Illore current and detailed information for use in the ailueulation and administration of policies for which those ciss will be fully responsible. If, in the future, therlir, matt : sed for individual store reports arises, the entire psde-r Nill be reconsidered, particularly the question of Reserve participation in such a collection system. ti8ti In view of personnel losses and the increase in station cal work at the Reserve Banks because of war condi' s it may well be that clerical and perhaps other addiIna ' . !S to the Banks' statistical staffs will be necessary. asel7uch as this and other recently inaugurated projects to inessential at this time, provision should be made effij ure that they are carried out as promptly and as Ye111ft 4-entlY as budget for statism _ possible. If increases in the _Leal. and analytical department are necessary, Z 1 I2I 6/13/42 —6-- "We shall be glad to consider them as soon as they are submitted. "Future correspondence relating to this inquiry should be addressed to the Division of Research and Statistics." Letter prepared for the signature of Chairman Eccles to Honorable 110bert P. Patterson, Under Secretary of War, reading as follows: "I received this morning your letter of June 12, c nfirming our telephone talk of yesterday, concerning the space now occupied by the Inter-American Defense aboard. 17 'We are agreeable, as you say, to leave it to the 4," Department to decide whether the space assigned to Inter-American Defense Board is used by the joint l-United States Defense Commission and we have iglieed that notwithstanding the expiration of the origtlf Period of two months they may occupy the space unab the end of June, but the northwest wing, containing th°11t 5600 square feet, is to be vacated not later than e first of July as we are in need of it for other pureoses, . This will leave the area in the northeast wing, ,t , , c111eisting of about 5300 square feet now occupied by the r;el ' \-American Defense Board, (Including the conference Bon for the use of either the Inter-American Defense si-ru or the Joint Brazil-United States Defense Commisthcl aZ) or both, as the War Department may decide, until cou. space is needed for our work, of which we will of re: give reasonable notice. ove_ This is the understanding that you and I reached the telephone yesterday." Approved unanimously. Letter ae to the Presidents of n31 the Federal Reserve Banks, read- follows: cod "There is enclosed a copy of 'Air Raid Protection 14:for Federal Buildings and their Contents Par!, II : ansmitting the Code the Commissioner of Public Buildti -on referred to Section 602 providing for the designa.a4ci °f a Defense Coordinator for a building or a project deajequested that the superintendent or custodian be tecifneted as Defense Coordinator. In addition, the 1:7ve Construction Unit of the Public Buildings Administratio n has advised the Board that it is developing an 1 214 6/13/42 -7- "inventory of Federally-owned buildings and leased quarters in connection with the safeguarding, from subversive hostile acts and overt acts of aggression, of public buildings and Property as required by Public Law 528, 77th Congress, approved April 28, 1942. "It is noted that Section 103 of the enclosed Code Provides that it shall apply to all buildings or parts of owned, leased, or occupied by the Federal Govent or by any of its agencies, together with the conente of such buildings. In this connection the Board 110te the Commissioner of Public Buildings on December 1941, that the Federal Reserve Banks and Branches per'2rm 4. a large variety of fiscal agency, custodianship, and ositary operations for the United States Treasury and her departments and agencies of the Government. As in, ated in previous letters, the Public Buildings Adminisb,°n appears willing to extend its services to the -. :1-dings owned and occupied by the Board and by the Federal Reserve Banks, and the Board believes that the Fed/C.1 Reserve System should cooperate in activities of the of lie Buildings Administration with regard to protection b_ Public buildings and property. Accordingly, it will _7_4Ppreciated if you will furnish the Board with the name coLl_la address of a Defense Coordinator for each building ined or leased by your Bank and utilized partly or wholly p%?onnection with fiscal agency, custodianship, and dei operations, Also, please have the enclosed questoavtinaire form or forms filled out and returned to the taliV at your early convenience. We shall be glad to obit a additional copies of the 'Air Raid Protection Code' ,tesiredin J ; f 1 tr Approved unanimously. Thereupon the meeting adjourned. Chairman.
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