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1001 A meeting of the Board of Governors of the Federal Reserve J tern a held in Washington on Wednesriv, June 21, 1944, at 1100 a,tu. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Cl?airmPn Rans-,m, Vic r ChairmP.n Szynczak Draper Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinqter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the lkeserve System held on June 20, 1?!/, were approved unani- Memorandum dated June 20, 190,-, from Mr. Paulcfer, Director t the Division of Examinations, recommending that Miss Giovanna M. tfatt "tit be appointed as a steno7ranher in that Division on a temporary ei 18 for an indefinite period, with basic selarr at the rate of 1,440 11"an"mt effective as of the date upon which she enters upon the perforri ' - 11ce of her duties after havinP: passed satisfactorily the usual examination,with the understanding that if anythin7 derogatory 1,1 the investicTion of he- referenc-s her services m,),- be -4ted Ap_lroved ”nanimously. 1002 6/21/44 -2Letter to Mr. Brairlat-d, Federal Reserve Agent t the Feder21 Reserve Bank of Cleveland, rePding as follows: "In accordance with the request contained 4,1 rir letter of June 15, 1944, the Board of Governors approves the appointment of Mrs. Gertrude L. Fry as Alternate Assistant Federal Reserve Agent with annual salary of g1,440, effective when she enters upon her duties. "This approval is given with the understanding that She Nill be olaced upon the Agent's payroll and will be "le1,7 responsible to him, or, during a vacancy in the of Agent, to the Assistant Federal Reserve Agent, and to the Board of Governors, for the proper performance ?f her duties. When not engaged in the performance of her duties as Alternate Assistant Federal Reserve Agent -, with the approval of the Federal Reserve Agent, she may during a vacancy in the office of the Federal Reserve gent, of the Assistant Federal Reserve Agent, and the President, perform such work for the Bank as will not be InconsistPnt with her duties as Alternate Assist-nnt Federal Reserve Agent. "Mrs. Fry should not enter upon the performance of her duties as Alternate Assistant Federal Reserve Ant her bond has been examined by your counsel to dewhether its execution comolies fully with the Printed on the reverse side thereof, followiniT rulest the bend should be forwarded to the Board prom?tly for °val. Please advise us as to the date when Mrs. Fr:T4''llally assumes her duties as Alternate Assistant PederP1 Reserve Agent. „,"Please advise us also as to the action, if any, we :nould take with respect to releasing the Bonding Company 12:01m liability under bond of Miss Anne J. Erste who, as stated 4-01 your letter, has been Pranted a leave of absence or an indefinite period." r X Approved unanimmisly. Letter to Mr. Meyer, Assistant Cashior of the Federal Reserve kre:: or Chica70, readinr, ns r°11-Jws: "The Board of Governors approves the changes in the T)er3 °nnel classification plan of the Federal Reserve Bank 1003 -3"of Chicago, involving the establishment of the positions of Assistant Sunervisor and Correspondent in the Correspondence and Treasury Regulations Division of the Bond Department, as submitted with your letter of June 16, 1944." Approved unanimou-1-. Letter to Mr. Willett, First Vice President of the Federal ReBank of Boston, reading as foll —rq: "This refers to your letter of May 25 in which you state that some member banks in your Dio+rict believe that "Serve balances held at the close of business on Mondays, ;lther than reserve balances held at the close of business Saturdays as at present, should be repeated for Sundays in rtermining whether a member bank has incurred an average deficiency subject to a penalty. It is noted that the eason for the suggestion is that occasionally a member 4bank may have an average deficiency in reserves subject a penalty because of P big increase in deposits late Saturday against which it could not provide the required reserve until Monday. "The question presented in your letter has not preIjously been considered by the Board, but a similar ques,:L ( In pertaining to required reserves was decided in the ',!egative in the Board's letter of December 9, 1930 to the Federal Reserve Bank of St. Louis, a copy of which was nt to all Federal Reserve Banks with the Board's letter -6824 of the same date. At that time some Federal ReServe Banks suggested that deposits at the opening of busines? h Saturdays (close of business Fridays) be used as the ir s1-8 of required reserves on both Saturdays and Sundays. d e Board felt, however, that in comput3ng daily average t!Posits over either a weekly or a semi-monthly period, he correct procedure as to Sunday was to repeat close-oft'lleiness Saturday figures in accordance with general custom, rather than close-of-bus;ness Friday figures. The BoPrd !of the oninion that the same procedure should be followed in computing daily average reserve balances, i.e., 1471rday close-of-business reserve balances, rather than 8,!daY close-of-business balances, should be repeated for `kuday in accordance with existing practice. r 1004 6/21/L4 "Incidentally, at the time of the decision made in 1930, there was much more nossihil5tv than now that net demand deposits (the amount subject to reserve) of a country member hank might go up ln+P Sa+urday, because under the then existing law member banks could offset balancer dlle from banks only lin to the amounts of their demand de?sits due to hanks. Under the present provisions of Sec19 of the Federal Reserve Act, all demand balances Ue from domestic banks (except private banks and American ranches of foreign banks) may be deducted from total de-and deposits. It would appear that the situation referred can arise no more than three or four times in any one calendar year and only if denosits are increased by an flanticipated large amount on Saturdays and the increase s not offset—as it would be ordinarily--by a. corresponding ,ncrease in due from banks or cash items in process of col.-4ection.n t Approved unanimously. Telegram to Mr. Day, President of the Federal Reserve Bank of Francisco, reading as folic: "Referring your June 13 letter, Board will interpose no• objection to purchase of the 60 foot strip of vacant re)r°Perty behind your present building in Los Angeles at a °at of not to exceed $0,000." Approved unanimously. Thereunon the meetinp adjourned. Chairman.
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