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Minutes of actions taken by the Board of Governors of the ?ederal Reserve System on Monday, June 20, 1949. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the I ?ederaReserve System on June 16, 1949, were approved unanimously. Minutes of actions taken by the Board of Governors of the Pederal Reserve System on June 17, 1949, were approved and the acti°118 recorded therein were ratified unanimously. Memorandum dated June 171 19490 from Mr. Millard, Director he 41141, Division of Examinations, recommending increases in the basic salaries of the following employees of that Division, effec- tive ' J une 26, 1949: Narae Bender, Jr. Williams IlerlDert H. Hagler Title Assistant Federal Reserve Examiner Assistant Federal Reserve Examiner Assistant Federal Reserve Examiner Salary Increase From To $3,351.00 $3,476.40 3,100.20 3,22.60 4,730.40 4,85:).80 Approved unqnimously. Letter prepared for Chairman McCabe's signature to the Honorable 106S 6/20/49 -2- krron M. Cowen, Ambassador Extraordinary and Plenipotentiary, Em13488Y of the United States of America, Manila, P.I., reading as fol10148: "Thank you for your comments regarding the work of Mr. David L. Grove in Manila, as contained in your letter of June 6 and in your cable of June 3. it you know, Mr. Grove's assignment in Manila was originally planned to run until May. Governor Cuaderno then asked for a six-month extension of this period, and the Board, after consideration, agreed to extend the assignment by three months, to August. "I doubt whether our schedule of other work will perany further extension of this assignment. However, if the Board receives a further request from Governor Cuaderno, the matter will again be given careful consideration, and the points brought out in your letter will of course be taken into account." Approved umanimously, together with a letter prepared for Chairman McCabe's signature to Mr. Wilbur, Chairman of the Federal Reserve Bank of San Francisco, reading as follows: "Thank you very much for your letter of June 13 in which You comment on the work of David Grove in helping Governor elladerno in Manila. "As you know, Mr. Grove's assignment in Manila was originally planned to run until May. Governor Cuaderno then ked for a six-month extension of this period, and the 1,c3EIrd, after consideration, agreed to extend the assignment u1 three months, to August. "We are very much pleased, of course, that the work of Mesers. Exter and Grove in Manila has been so successful is so highly esteemed. It is our impression, however, na flat their work up to now, plus the remaining two months of that they r°ve's assignment, will about complete the part Could be expected to play in the planning and organization :r initial operation of the Bank. It is also our impresv 011 that Cuaderno and his Philippine assistants are doing a : of a little t creditable job, including the organization of itself. account good ;Iesaarch Department that should give a and steadfast the "liming that Cuaderno continues in r ()Vv9 6/20/49 -3- "determined way that has impressed all of us so favorably, I doubt very much that a further extension of Grove's assignment is really so essential to him. "I also doubt whether our schedule of other work will permit any further extension of this assignment. However, if the Board receives a request from Governor Cuaderno, the matter will again be given careful consideration, and the points brought out in your letter will of course be taken into account. "I am glad to learn from your letter that your visit to the New York Bank was so interesting and worthwhile." Letter to the Board of Directors of the "Central Valley Bank Escalon, California, stating that subject to con- c)r t. --s of membership numbered 1 and 2 in the Board's Regulation the Board approves the bank's application for membership in the "'al Reserve System and for the appropriate amount of stock in the, 'ederal Reserve Bank of San Francisco. The letter also con"'"cl- the following special comment: "It is understood that the plan to be completed before mission to membership contemplates, among other things, merger into the applicant bank of the Bank of Hughson, Ughson, California, and the State bank to be organized to Succeed the First National Bank in Richmond, Richmond, :. a.lifornia; the removal of the head office of the applicant bnk to Richmond, California; increase in the combined caPital of the constituent banks through the sale for cash °I ' $50,000 par value common stock for $80,000 and $150,000 value of preferred stock carrying five per cent cumulalve dividends and having no voting rights in any circum8tances, so that the applicant bank will have $550,000 1 .1d-up, unimpaired capital; and establishment of branches 'L k. the present location of the constituent banks in Escalon eald Hughson. "Permission is also requested to establish branches Oakley and El Cerrito, California. Authorizations for ue establishment of the proposed branches will be conained in a separate letter from the Federal Reserve Bank." r Z 6/2o/49 -4Approved unanimously, for transmission through the Federal Reserve Bank of San Francisco, together with a letter to Mr. Volberg, Vice President of the Federal Reserve Bank of San Francisco, reading as follows: "Reference is made to your letter of May 18, 1949, submittinE the application of the 'Central Valley Bank of California, Escalon, California, for membership subject to coMpletion of a plan contemplating, among other things, removal of its head office to Richmond, California, and requesting permission for the establishment of branches in Escalon, Hughson, Ovkley and El Cerrito, California. "It is understood that the Superintendent of Banks for the State of California has approved the plan submitted by the applicant, including establishment of the proposed branches, and, in view of your recommendation, the Board of Governors approves the establishment and operation of branches in Escalon, Hughson, Oakley and El Cerrito, by the Central Valley Bank of California', Richmond, California, Provided it accomplishes membership after completion, substantially as submitted, of the plan to which reference has been made, and provided the branches at Oakley and El CerIs to are established within six months after April 27, 1949, with the understanding that counsel for the Reserve Bank vill review and satisfy himself as to the legality of all steps taken to effect the plan and establish the branches." Letter to the Organizers of the "First State Bank of RichPlotIcy, Richmond, California, stating that subject to conditions of t4etlibelsshiP numbered 1 and 2 contained in the Board's Regulation H the following special condition, the Board approves the bank's e"ion for membership in the Federal Reserve System and for the /4313roPr1ate amount of stock in the Federal Reserve Bank of San isco, effective if and when the bank is authorized to commence 88 by the appropriate State authorities: 1071 6/2019 "3. At the time of admission to membership, such bank shall have a paid-up and unimpaired capital stock of not less than $200,000." Approved unanimously, for transmission through the Federal Reserve Bank of San Francisco. Letter to Mr. Volberg, Vice President of the Federal Re"'s Bank of San Francisco, reading as follows: "In accordance with the recommendation contained in your letter of June 110 1949, the Board of Governors extends to November 1, 1949, the time within which the Pedro), 'Fishermen and Merchants Bank', Los Angeles (San advise Please California, may accomplish membership. the applicant bank to this effect. "Your office will be advised in a separate communication with respect to the Board's action on the subject bank's application for reduced reserves." Approved unanimously. Currency, Letter to The Honorable, The Comptroller of the tee4ing as follows: order "It is respectfully requested that you place an printing 'with the Bureau of Engraving and Printing for 31)098,000 sheets of Federal Reserve notes of the 1934 in the Series during the fiscal year ending June 30, 1950, Federal amounts and denominations stated for the following Reserve Banks: Denominations Boston New York $5 10 20 0 Number of Sheets 250,000 1,325,000 225,000 10,000 $5 lo 1,65o)000 3,250,000 20 775,000 50 40,000 Amount $15,000,000 159,000,000 54,000,000 61000,000 99,000,000 390,000,000 186,000,000 24,000,000 1072 6/20/49 -6- 10 20 Number of Sheets 50,000 1,100,000 325,000 Amount 33,000,000 132,000,000 78,000,000 Cleveland 5 lo 20 50 100 50,000 1,375,000 625,000 125,000 10,000 3,000,000 165,000,000 150,000,000 75,000,000 12,0001000 Richmond 5 10 20 50 100 500,000 1,025,000 800,000 70,000 8o,000 30,000,000 123,000,000 192,000,000 42,0o00000 96,000,000 Atlanta 5 10 20 100 650,000 1,300l000 575,000 25,000 39,000,000 156,000,00o 138,000,000 30,000,000 Chicago 5 10 20 50 2,150,000 3,175,000 1,050,000 15,000 129,000,000 381,000,000 252;000,000 9,000,000 St. Louis 5 10 20 100 550,000 1,050,000 400,00o 15,000 33,000,000 126,000,000 Ol000l000 18,000,000 Minneapolis 5 10 20 100 50,000 375,000 lool000 5,000 3,000,000 45,000,000 24,000,000 6,000,000 4a4sas City 5 10 20 50 150,000 600l000 325,000 ,000 91000,000 72,000,000 78,000,000 31000,000 10 20 50 100 200,000 7251000 300;000 5,000 5,000 12,000,000 87,000,000 72,000,000 3,000,000 6,000,000 Denominations Philadelphia $5 Dallas 1 f2Y73 6/20/49 -7- San Francisco Denominations $) Number of Sheets lo 1,600,000 900,000 38,000 20 100 Total 5 lo 20 50 100 Amount 36,000,000 192,000,000 216,000,000 45,600,000 600,000 441,000,000 7,350,000 2,028,000,000 10536,000,000 162,000,000 213,600,000" 16,900,000 6,400l000 270,000 178,000 Approved unanimously. Memorandum dated June 10, 1949, from Mr. Bethea, Director Or the Division of Administrative Services, recommending that that Dil'ision be authorized to dispose of, on )3, sealed bid basis to the u. "lghest bidders, onelot of miscellaneous used office equip- rilett, one lot of used office machines, and one used electric water k)oler, with the understanding that the proceeds of the sales be clelDosited in the Board's account and credited on the books of the sion of Administrative Services to Miscellaneous Receipts. Approved unanimously. Chairman.
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