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955 A meeting of the Board of Governors of the Federal Reserve Systera " 4 held in Washington on Tuesday, June 13, 1944, at 10:30 a.m. PRESENT: Mr. Mr. Mr, Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Special Assistant to the Chairman Mr. Smead, Director of the Division of Bank Operations Mr. Paulger, Director of the Division of Examinations Mr. Dreibelbis, General Attorney Mr. Vest, Assistant General Attorney Mr. Pollard, Assistant Director of the Division of Examinations 14r. McKee stated that Mr. Delano, Comptroller of the Currency, ailed Mr. Dreibelbis on the telephone to inquire what the positi°4 131' the Board was to be with respect to loans which had been made nienth "banks to executive officers of the banks prior to June 16, 19332 and which, because of the limitation contained in section 22(g) the peaer I Reserve Act, could not be renewed or extended beyond 41111e 16 '1944. It appeared from Mr. Dreibelbisi conversation with Mr. 4411° that counsel for the Comptroller of the Currency had taken the 14/q",34 that any executive officer who had such a loan in a national 411t1 Weltild have to reduce the loan to not to exceed $2,500 on or before e 16, 19 44, or resign his position with the national bank. 1n this connection, it appeared that there was little or no 956 6/13A4 -2likea Mood that Congress would act to extend for a further period the tineWi which such loans could be renewed or extended. Ur. McKee referred to the letter addressed by the Board on Janu417.28, 1938, to Vice President Gidney of the Federal Reserve Bank of lielv York, a copy of which was sent to the Comptroller of the Currency 1)14 Which was not otherwise distributed by the Board. Mr. McKee stated that inasmuch as the Board did not have authority to remove an executive qlacer or take other action against the officer or the bank under 4ction 22(g) of the Federal Reserve Act in the event such a loan were 11(t renewed or extended but was merely allowed to remain in the bank as a. P4st-clue obligation, he would prefer to have the Board withhold any 44411 in the matter for a period of three or four months following June 16(It this year, with the thought that by that method the maximum amount Pres 814re would be brought to liquidate such loans, and during that 414 8 ther Pecif ic cases might be presented on the basis of which such furaction as then appeared necessary could be taken by the Board. Of' jazia u Section 22(g) of the Federal Reserve Act and the Board's letter 41 7 28, 1938, in to Mr. Gidney were read, and the whole matter was the light of the history and purpose of the statute. At the conclusion of the discussion, there was unanimous agreement that Mr. Dreibelbis should call Mr. Delano on the telephone and tell him that the position of the Board on the matter was expressed in its letter of January 28, 1938, to Mr. Gidney, that the Board would prefer to Withhold any ruling on a hypothetical basis at this time, and that in the period of the next three or four months 957 6/13/a —3— specific cases might arise which would enable the Board to consider the ques— tion what course should be followed in the light of the facts. There was then presented a memorandum dated June 10, 1944, from 111 pre ibelbis, stating that the disclaimer of interest of the Federal ileserve }3enks in and to the real estate owned by the Board of Governors the D istrict of Columbia had been executed by all of the Federal Re8*ve Banks endreturned to the Board and that, if agreeable to the 1308.rd . 'lt was planned to record the disclaimer with the Recorder of peeds f°1 'the District of Columbia at the expense of the Board and to eerld a Photostat of the disclaimer to each Federal Reserve Bank. The rtiera°raticlum also stated that Mr. Dreibelbis planned to send a photostat 7 theclisclaimer to Mr. Keech, Corporation Counsel for the District of ' 41.11mt thereby having an exchange of correspondence with him which Wo Ilaai til :ng l to a conclusion the matter of the taxation of the Board's The procedure outlined in Mr. Dreibelbis' memorandum was approved unanimously. At v t --Ls point Messrs. Thurston, Smead, Paulger, Dreibelbis, " Pollard withdrew from the meeting, and the action stated with ' 41)eq t -0 each of the matters hereinafter referred to was then taken the toard. The minutes of the meeting of the Board of Governors of the vai Re serve System held on June 12, 1944, were approved unanimously. Ilemorandum dated June 10, 1944, from Mr. Goldenweiser, Director 958 —4— qthe Division of Research and Statistics, recommending that Miss Leila 14aalighlin be appointed as a clerk-typist in that Division on a tempo2'411 basis for a period of not to exceed three months, with basic salary t the rate of $1,560 per annum, effective as of the date upon which she ertel*8 upon the performance of her duties after having passed satisfact°rlaYthe usual physical examination. Approved unanimously. Memorandum of this date from Mr. Morrill recommending, effective 414p, -4.3) 1944, (1) that Mrs. Lois A. Love and Mrs. Della M. Payne be Pointed a s cafeteria helpers in the Secretary's Office on a temporary 4.84 tor a period of not to exceed 90 days, each with basic salary at the rate °f $1,200 per annum, and (2) that Miss Eileen Chapman be ap- Potriteci as a cafeteria helper on a part-time temporary basis of six hclirs f9r each working day for a period of not to exceed 90 days, with b4ie salary at the rate of $810 per annum plus supplemental compensaticll Of 15 per cent and with a deduction of $6 per month for meals in- tea•cl of Itio si nce she will have only one meal a day. Approved unanimously. Me 'morandum dated June 9, 1944, from Mr. Morrill recommending the a the 8ec_ PPointment of Mrs. Rushia H. Brown as a telephone operator in reta,-.1 88,4147 at the rate of $1,500 per annum, effective as of the expira- tlot f her 41), ,te s Office be made permanent, with no change in her present Present temporary appointment at the close of business on 16)1944. Approved unanimously. 959 _5— Letter to Mr. Young, President of the Federal Reserve Bank of Chico go, reading as follows: "The Board of Governors approves the payment of salary to ° Irr. Kenneth E. Haefele, Assistant Counsel, Detroit Branch, 3 a, t the rate of $6,000 per annum, for the period ending March tll 1945, which is the rate fixed by your Executive Commit— ee as reported in your letter of June 8, 1944. "Please advise us as to the date Mr. Haefele's appoint— becomes effective." Approved unanimously. Letter to the "Merchants Bank of Winona", Winona, Minnesota, reading as follows: ha "The Board of Governors of the Federal Reserve System considered the application for permission to exercise t• uciarY powers made by you on behalf of The Merchants Na— Bank of Winona, Winona, Minnesota, the national bank which the Merchants Bank of Winona, Winona, Minnesota, • l as to be converted, and grants such national bank authority, th. tre2tive if and when it is authorized by the Comptroller of Irer;Currency to commence business, to act, when not in contra— of State or local law, as trustee, executor, adminis— r, registrar of stocks and bonds, guardian of estates, aa an'lgnee, receiver, committee of estates of lunatics, or in Other fiduciary capacity in which State banks, trust nies or other corporations which come into competition banks are permitted to act under the laws of the of Minnesota, the exercise of all such rights to be re Ject to the provisions of the Federal Reserve Act and the gUlations of the Board of Governors of the Federal Reserve 8Ystem. 3„ "After the conversion of the Merchants Bank of Winona ' arl60 cl The Merchants National Bank of Winona becomes effective holl the Comptroller of the Currency authorizes the national boa to commence business, you are requested to have the raj", of directors of the national bank adopt a resolution -Ing your application for permission to exercise fiducia;! : ! : . powers, and a certified copy of the resolution so adopted 10 for"-Ld be forwarded to the Federal Reserve Bank of Minneapolis oTit.!,a1 to the Board for its records. When a copy of etioht:s ution has been received by the Board, a formal cer— t. tte covering the national bank's authority to exercise Powers will be forwarded." 4 Approved unanimously. 960 -6Letter to Mr. C. N. Nichols, Managing Director of the NortheastSiding and Insulating Contractors Association, Inc., New 1°11c) New York, reading as follows: "This is in reply to your letter of June 9 to Dr. Parry I. h further reference to the Board's decision not to add cl.L.nsulated brick siding' to the materials exempted, for fuel unsTation reasons, from Regulation W. 'Your question is whether, in the light of information tO • you refer concerning the production of this material, thellch fo oard would be willing to reopen the question. That ini,rmation, as you have outlined it, seems to us to include iiTIfficient new facts to justify reopening the question at as s time, Particularly since the Board's recent decision, our letter of June 1 brings out, was based in large part o Other considerations." Approved unanimously. tank Letter to Mr. Turman, Secretary pro tern of the Federal Reserve Of Atlanta, reading as follows: DI "In response to your letter of June 8, the Board will be d to see Messrs. Hall, Glenn and Porter, constituting the re e::arch, Planning and Public Relations Committee of your di-"QM, on Monday, July 17, at 11:00 a.m." r Approved unanimously. Letter to the Comptroller of the Currency, reading as follows: is respectfully requested that you place an order with the B eau of Engraving and Printing for printing 49,060,200 Sheets of Federal Reserve notes of the 1934 Series during the rise a1 Year ending June 30, 1945, in the amounts and denomina, tio stated for the following Federal Reserve Banks: Number of DenomiAmount sheets nations Boston $70,020,000 1,167,000 $5 10160,080,000 1,334,000 164,640,000 686,000 20 31,200,000 52,000 50 102,000,000 85,000 100 10,800,000 900 1000 961 -7-- New York "Denominations 5 10 20 50 100 Philadelphia 5 10 20 50 100 500 1000 Cleveland 5 10 20 50 100 500 1000 Richmond Atlanta Chicago 5 10 20 50 100 10 20 50 100 500 1000 5 10 20 50 100 500 1000 10000 St. Louis 5 10 20 50 100 5 10 20 50 100 500 Number of sheets 4,150,000 3,800,000 1,550,000 350,000 525,000 1,556,000 1,786,000 703,000 111,000 89,000 1,000 3,000 1,084,000 959,000 1,042,000 100,000 50,000 1,000 1,000 1,638,000 2,431,000 1,479,000 180,000 84,000 2,046,000 883,000 45,000 57,000 3,500 2,000 1,250,000 2,335,000 1,260,000 171,000 234,000 9,600 5,100 100 1,225,000 1,2570000 528,000 25,000 61,000 420,000 368,000 333,000 10,000 15,000 1,000 Amount $249,000,000 456,000,000 372,000,000 210,000,000 630,000,000 93,360,000 214,320,000 168,720,000 66,600,000 106,800,000 6,000,000 36,000,000 65,040,000 115,080,000 250,080,000 60,000,000 60,000,000 6,000,000 12,000,000 98,280,000 291,720,000 354,960,000 108,000,000 100,800,000 245,520,000 211,920,000 27,000,000 68,400,000 21,000,000 24,000,000 75,000,000 280,200,000 302,400,000 102,600,000 280,800,000 57,600,000 61,200,000 12,000,000 73,500,000 150,840,000 126,720,000. 15,000,000 73,200,000 25,200,000 44,160,000 79,920,000 6,000,000 18,000,000 6,000,000 962 -8- Kansas City Dallas 5 San Francisco Total "Denonations $5 10 20 50 100 500 1000 10 20 50 100 500 5 10 20 50 100 500 1000 $5 10 20 50 100 500 1000 10000 Number of sheets 672,000 1,054,000 650,000 4,000 53,000 1,000 1,000 632,000 528,000 261,000 25,000 24,000 1,000 1,860,000 1,400,000 2,084,000 113,000 150,000 3,000 2,_000 15,654,000 19,298,000 11,459,000 1,186,000 1,427,000 21,100 15,000 100 Amount $40,320,000 126,480,000 156,000,000 2,400,000 63,600,000 6,000,000 12,000,000 37,920,000 63,360,000 62,640,000 15,000,000 28,800,000 6,000,000 111,600,000 168,000,000 500,160,000 67,800,000 180,000,000 18,000,000 24,000,000 $939,240,000 2,315,760,000 2,750,160,000 711,600,000 1,712,400,000 126,600,000 180,000,000 12,000,000" Approved unanimously. Thereupon the meeting adjourned. eci:
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