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Minutes of actions taken by the Board of Governors of the ecleral Reserve System on Tuesday, June 21, 1949. the The Board met in Board Room at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Draper Evans Vardaman Clayton Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Riefler, Assistant to the Chairman Leonard, Director, Division of Bank Operations Mr. Bethea, Director, Division of Administrative Services Mr. Vest, General Counsel Mr. Young, Associate Director, Division of Research and Statistics Mr. Mr. Mr. Mr. Mr. Mr. of bank holding Chairman McCabe referred to the discussion com, low nY legislation at the meeting on June 14 and stated that folthat meeting he talked with Secretary of the Treasury Sny- 0 said he had no objection to having the legislation sent to and his only question was whether it would be considered 4t this session if introduced. teaked with Chairman McCabe said that he then Mr. Staats, Assistant Director of the Bureau of the illIciet) 'who requested that a draft of the proposed bill be sent to "(1 Who stated that he would call Secretary Snyder, the Compler of the Currency, and the Federal Deposit Insurance Corporation ' I 4 " 6/21/49 -2- Which he would advise as to whether the Bureau would be able to clear the bill. At chairman McCabe's request, Mr. Vest reported that he delivered copies of the draft bill to the Bureau of the Budget on uesday, June 15, that when he called the Bureau on Friday, June 17 leo. he was informed that the Treasury Department had stated 4-'f9, Y -that it would like to make a formal report on the draft if it was to — 5A1 to Congress with the acquiescence of the Budget Bureau, that 11° °Ile Was available at the Federal Deposit Insurance Corporation to COntient on the draft importance of the legand that because of the on the Budget Bureau thought that it would be desirable to t4ke the matter up with the President. Mr. Vest stated that it was 11113tood that the Budget Bureau was sending a draft of the bill to the three offices last Friday with a request for their comments lic)t later than Wednesday, June 22. Senator RobertChairman McCabe also said that he talked with so)a °Y telephone concerning the legislation and that Senator Robert- - l'elt the correct Procedure had been followed in sending the bill t° the Budget glad to have the Bureau and had stated he would be sent to him within the next few days but he could not start hear- Or it until early in July. arlee Chairman McCabe added that in accord- with the understanding at the meeting on June 14, copies of the Were sent on June 17 to all Federal Reserve Banks and to renreti a. -Yes of the interested groups with which it had been discussed. 1076 6/21/49 -3There followed a discussion of the procedure that might be followed in connection with the bill, and it was understood that Cheillilan McCabe would continue to do what he could to bring about the introduction of the bill and that he would report to the Board °4 the results of his further conversations during the next few days. Reference was then made to a memorandum from the Division Of pe rsonnel Administration dated June 13, 1949, proposing changes illthe Board's travel regulations effective July 1, 1949, along the lines established for Government departments operating on approDtiated funds in the Travel Expense Act of 1949, Public Law .92. had conMr. Clayton stated that the Personnel Committee eiaered the a per diem memorandum, that it recommended adoption of 'lance of $9.00 for members of the Board's staff and an allowance Of 7 cents per mile for the use of privately owned automobiles which Vere the rates provided in the Travel Expense Act of 1949, and that Divis 1°Ya heads be authorized to approve travel requests for use of i)tl\ratewere now authorized to automobiles for Persons for whom they EIDDrove the understandtravel by other means of transportation, with 1./ tha t all such travel authorized by division heads would be re15c)rted Jal the monthly report of travel submitted pursuant to the Eteti°4 of the Board at a meeting on November 19, 1948. He went on to 815r th_„p ' _t no recommendation was made with respect to per diem for I07-7 6/21/49 -4- 13°e•rcl members which formerly had been $10.00 compared with the $6•00 per diem of the Government. There followed a discussion, during which it was suggested that -"I view of present costs of travel and in view of the fact that Per diem for Board members had been $10.00 at the time Governent per diem was $6.00, there was justification for setting per cliem for Board members somewhat higher than the present figure and tilet a rate of $12.00 might be set for Board members. Following the discussion, upon motion by Mr. Clayton and by unanimous vote, paragraphs 1, 21 3, and 4 of the Board's travel regulations were amended to read as follows, effective July 1, 1949: "1. Members of the Board shall be allowed either ( and a per (la) actual necessary transportation expenses or (b) 12 ilem in not to exceed underterms The ir actual necessary travel expenses. travel necessary ee()red are defined below. When actual '' ' set f3tPenses are claimed, the items of expense shall be supbe shall forth in detail in the travel voucher which shall not expenses Ported by by satisfactory receipts. Such the of Members t allowed when claimed in a lump sum. prrd shall also be allowed reasonable expenses for telece°11e, telegraph, cable and radio service, and for misc1 ILlaneous expenses, including stenographic and other 1;c7ioal service, when such expenditures are necessary business while in a travel 4 the ' status. transaction of official of divisions of the Board,H A"2. eads or assistant heads s Washington staff (who shall include Assistants to the Federal Reserve Bank auditorsChairman or the Board), the r who audit the accounts of the Board, and any other spes°ns traveling on official business of the Board upon sh .1.fio authorization of the Board's personnel Committee, a 1 be allowed either (a) actual necessary transportation 1078 6/21/49 -5- expenses and a per diem in lieu of subsistence not to exeed 9.00 or (b) upon specific authorization of the Board's ! i Irersonnel Committee their actual hen the travel voucher is supported by satisfactory receipts. "3. All other persons traveling on official business the Board pursuant to proper authorizations shall be allowed actual necessary transportation expenses and a per in lieu of subsistence not to exceed $9.00. For the purposes of paragraphs 1, 2, and 3 above, ithe term actual necessar trans ortation expenses includes the, cost of all necessary official travel by railroad, air:he, steamboat, bus, streetcar, taxicab, automobilel and tl Other means of conveyance, together with minimum priced single first-class accommodations in staterooms on vessels c_31" one standard lower berth or single seat in a sleeping or :hair car, except that persons referred to in paragraphs 1 nd 2 above may be allowed any Pullman accommodations ob, It sIina fare, and that, when a ble in connection with a single ng 4fligle bedroom is not available, any member of the Board ,IY be allowed the extra railroad fare necessary to enable ;Ira to obtain Fullmin accommodations, the cost of which , uoes e not exceed the cost of a compartment, as well as the _xtra cost of such accommodations. This item also includes to .'jasonable expenditures for the ordinary incidentals n of lensPortation which are not covered by the definitio ' baggage +el" diem in lieu of subsistence, such as cost of cable fansfer; official telegraph, telephone, radio and :Zssages relating to transportation; steamer chairs and steamer rugs; and the usual taxicab, streetcar or bus fares of abode station or wharf or other terminal to place or Place place of of business and from place of abode or L Usiness to station or wharf or other terminal while in . ' travel status. When using his own automobile in official at a rate not +favel, the traveler may be allowed mileage "v exceed 70 per mile in lieu of actual operating expenses. of "When savings can be effected by the purchase '"Und trip or special rate tickets, they shall be obtained. to in 1)43. "Extra expense incurred by persons referred extra fare on travel trx',glsaPhs 2 and 3 above by reason of allowed be will lEl'ns, or unusual means of conveyance, , 0 When the travel voucher is accompanied by a satisfac;'IrY showing of the necessity therefor, or that the cost allowance saved by 11e°f, less the amount of subsistence : /110 salary of the of e e xpeditious travel and the amount ' T -6"traveler for the time thus saved, does not exceed the cost of rail or steamer transportation and Pullman or stateroom fare between the points of travel." Mr. Vardaman referred to a news item that appeared in the under date of June 13, 1949, reporting an interview ithehairmanMaybank of the Senate Banking and Currency Committee e°11cerrling the bill to establish a National Monetary Commission, 115:)9, on which the Board submitted a favorable report under date c)t 146tY 18, 1949. At Mr. Vardaman's request, Mr.Carpenter read a copy. of the news report which stated that the President was reported bY L'enator Maybank to be opposed at this time to the Senate-approved but that he favored the idea of such a study and believed it sholaci be put off until after the Treasury and Federal Reserve Board c °1/1Pleted a similar study. Mr. Vardaman outlined his interest 14 th e creation of the Commission and suggested that steps be taken it clear that the System was not undertaking any study of the ki4c1 .— 'rerred to in the press article. Chairman McCabe said he could clarify the matter with Senam 3rbelik when he talked with him later this week. In the course of a discussion, Mr. Eccles suggested that, for iseeto a state11.' which he outlined, the staff be requested to prepare °I reasons for the establishment of a National Monetary CoinSio available for submission 4 with u view to having such a statement to, m -, 4 aybank and others. 1080 6/21/49 -7Chairman McCabe suggested that the statement be in the -14 of a letter to Chairman Spence of the House Banking and Curl'1Y Committee, that it take a strong position favoring the study eclItftPlated in S.1,59, and that he be authorized to use the draft 14 such discussions as he might have concerning the matter and to telkIrt back to the Board the results of his conversations. Mr. Varasman stated that since 1946 he had been advocating the, 4ormation of a commission for the purpose of making the study lItc1Posed and that he felt these suggestions would be constructive. Thereupon, the foregoing suggestions were approved unanimously, with the understanding that Messrs. Riefler and Young and such other members of the staff as they might ask would prepare a draft of letter to be used by the Chairman in the manner suggested above. Before this meeting there had been circulated among the ilitzbers of the Board a draft of letter to Mr. Davis, President of the /Iederal estate 441 Reserve Bank of St. Louis approving the purchase of from him dated by that bank as requested in a letter al)B lo, 1949. The letter was discussed briefly and upon motion by Mr. Vardaman, approved unanimously in the following form: the "This refers to your letter of June 10 regarding Allen the zsuation and negotiations with respect to 1.0"-te lot which your bank has had ugaer lease and which 1111s Part of the property upon which the bank building 81.4. 1081 6/21/14.9 -.8- "has been erected. You have advised that the directors have authorized the purchase of the property for $140,00G, subject to certain conditions and to the apProval of the Board of Governors. In accordance with Your request, the Board of Governors approves execution by your bank of an agreement providing for the purchase of the property for $140,000 under the arrangements outlined 4n your letter." Reference was then made to a memorandum from Mr. Young, '!Ilted* June 15, 1949, which had been circulated before vith respect to a proposed mission to Guatemala being the, zederal Reserve Bank of New York in response to a the, k-entral Bank of Guatemala. The memorandum stated this meeting, arranged by request from that Mr. Ernest * °1s°11, an economist in the Latin-American Section of the Division R e 'rch and Statistics, had been asked to serve as a member of t erai ssion for the period July 5 - August 1, 1949, that the Central krIk`)f Guatemala would pay his travel and subsistence expenses, and that , lt ''(as recommended that the Board approve his participation in the Mt. Carpenter nis-lon and pay his salary while so engaged. Of rectta a tie morandum from Mr. Vardaman dated June 20, 1949, which stated tIlt he had. no objection to the proposed mission but that he felt it 'llotacl be cleared with the American Ambassador to Guatemala before it aUthorized. a discussion of the memorandum, question was raised as to ther h ed the Federal Reserve Bank of New York was following the estab- 111-"eaure of clearing proposed foreign missions with the Board ber ()1*e. inA4 that such missions would be arranged. )c-ler'J V21/49 In the course of the discussion, it was suggested that the ehtire matter of foreign missions should be reviewed at a meeting lit which Mr. Szymczak is present with a view to making certain that the Procedure contemplated by the Board in its letter to Mr. Sproul °/1145•Y 10, 194, is operating satisfactorily. It was also suggested hat the Proposed mission to Guatemala and Mr. Olson's partici13"tot in it be approved, on condition that the State Department %At Prior approval of the mission from Ambassador Patterson. Upon motion by Mr. Vardaman, the foregoing suggestions were approved unanimously. Secretary's Note: On June 28 Mr. Corliss of the Division of Financial Affairs of the Department of State called on the telephone to say that a cable from Ambassador Patterson indicated that the American Embassy in Guatemala had no objection to the proposed mission. Reference was then made to a memorandum from Mr. Draper dated 1949, recommending that the Board authorize ilsd 1947 Cadillac limousine for 0,47'). the purchase of The memorandum stated that ItIge's believed desirable to purchase such an automobile as an addition to ''Iseeent Board cars so that an additional car would be available to tqe car. - of needs which might arise when one of the automobiles was the „L ' .40P or during rush periods. Mr. Eccles stated that he was opposed to the purchase of an Iciciltic)ria-1 car, that the need for economy in operations of Govern141.t Vas being emphasized, that there had been criticism of the use 1,11.8•3 6/21/49 -10- °f automobiles from time to time, and that he felt that the present fleet of cars consisting of three passenger cars and a station wagon 11 adequate to meet the Board's needs except in rare instances at " 'which times it would be better business to hire additional cars from outside. He thought the addition of another car would set a bad ex- for the Federal Reserve Banks and would provide more automobile Ilerliice than was available in other Government agencies and that the Bcerd was not under obligation to furnish transportation for all indi1'144111e and groups coming to the Board's building. During a further discussion of the matter, Mr. Draper stated thEvt it was not contemplated that an additional chauffeur would be el4M0Yed, that the purchase of the additional car at this time was l'ecelllMended for the purpose of giving added carrying space, and that the re tention of a smaller car which was now seven years old would seeh, to be desirable since the turn-in value was small and the car '4°1114 be available for stand-by purposes. Mr. Eccles responded that he would not object to turning in one or the - Present curs and replacing it with a new car if that seemed nec- '17 because of the condition of the older car nor would he object to the 141rChase of an additional car and retention of the old car so long ke -u additional chauffeur was employed and the old car was kept only e He said he illergency use or when other cars were in the shop. 11.01,14 Object to adding an additional car which would be available for 114 o 4 the basis outlined in Mr. Draper's memorandum because it would 444 to the automobile expense of the Board and he did not think such 1084 6/21/49 -11- additional expense was justified. Mr. Draper moved that the Board authorize the purchase of the used Cadillac on the basis outlined in his memorandum, with the understanding that this would not result in employment of any additional chauffeurs and there would be no change in the policy of the Board with respect to the purposes for which the automobiles would be used. This motion was put by the Chair and carried, Mr. Eccles voting "no" for the reasons stated by him during the discussion. At this point, Mr. Bethea withdrew from the meeting. Before this meeting there had been sent to all members of the 1113a./..4 a 'draft of letter to the Presidents of all Federal Reserve Banks Vith respect to Section 13b activities under the Federal Reserve Act. Following a discussion, upon motion by Mr. Draper, the letter was approved in the following form: "At the last meeting of the Conference of Presidents Of the Federal Reserve Banks on May 2, 1949, it was indi!ated that, because of prevailing inflationary pressures, :711s Federal Reserve Banks generally had been following a f?strictive policy in the past few years with respect to !_ls making of loans and commitments under section 13b of le Federal Reserve Act. It was thought, however, that : Q°111e modification of this policy might soon become necessary. "In view of the changes which have recently developed 14 the economic situation, the Board believes that it would 11 be desirable to review our loan policy and reexamine 'Ur statutory responsibility. If a study of the monetary eliC1 credit situation is undertaken pursuant to authority granted by the Congress, one of the areas of investigation _ doubtedly will be our record on 13b loans, and since 10,ere is a statutory obligation on our part we feel our .11rrent as well as our past record of performance should be 411 accordance with the spirit and intent of the law. Under changed conditions many businesses may now or in the near Z 6/21/49 -12- "future find that they are unable to obtain necessary working capital from the usual credit sources and it is felt that increased emphasis should be placed upon the authority of the Reserve Banks under existing law to make industrial loans and commitments in such circumstances. "As you know, loans under section 13b are made only if banking loan accommodations are not available to the borrower. LJate often the Federal Reserve participates with the borrower's local bank in making the loan. Since many financing institutions and business concerns may not be entirely familiar with the facilities afforded by the Federal Reserve Banks for assisting in the financing of business enterprises, it is suggested that you take such steps as you consider appropriate in order to acquaint them with the nature of such facilities, either by circularizing financing institutions in your District, or through discussions by the officers of your bank with bankers and businessmen as occasion arises, or by other means. An expansion in 13b Operations may require some additions to the staffs of the &serve BAnks but the Presidents indicated at the last 'resident's Conference that they were prepared to make such additions as promptly as they became necessary. "In this connection, attention is called to the statement in the foreword to the Board's Regulation S that the regulation prescribes no restrictions beyond those required bY the law itself and that technical definitions of terms have been avoided lest they have the effect of restricting Or hampering the operations of the Reserve Banks under the s tatute. It is the Board's view that, in the light of present credit tendencies, the Reserve Banks should give symPathetic consideration to all applications filed with them 114der section 13b and that every reasonable effort should be made to provide financial assistance whenever it may properly e afforded in the circumstances of each case. Mr. Horbett, Assistant Director of the Division of Bank Operatic)lis) joined the meeting at this time. Reference was made to the probable expiration on June 30, 1949 the Board's authority to prescribe supplemental reserve re(Mire illents for member banks and to the question whether action sh 0111(1 , ue taken by the Board at this time to reduce member bank re8 in an amount greater than the reduction that would result 1086 6/21/49 -13- fr°r11 the discontinuance of the supplemental reserve requirements. In this connection, Chairman McCabe stated that he and Mr. Pls°t11, Vice Chairman of the Federal Open Market Committee, were ineetinfT with Secretary of the Treasury Snyder later this afternoon the purpose of discussing open market and Treasury financing 13°1ic ie8 and that before that meeting he would like to have the views cif the Members of the Board with respect to the program that might he followed in connection with reserve requirements and discount rates it relation to open market and Treasury financing policies. '4 par ticular, he was interested in knowing, whether, if the Treasury ' 4A.11d. be inclined to concur in a change in open market policy which %lotzld d iscontinue support of Treasury bills and certificates and ' \ 0112d prol,ide only for the maintenance of orderly market con(ilti°42 in this area of the market and if a public announcement to that effect were agreed upon, the Board would be willing to give the Trect ' 111-Y assurance that such a change in policy would not result in 411 like rease in rates during a period of declining business activity the Present and that the Board would take such action, includinz. redtlet. 10116 in reserve requirements and in discount rates, as might be rlece sarY to prevent an increase in short-term interest rates. ' During the ensuing discussion, Chairman McCabe referred to a 1 tter dated June 17, 1949, from Mr. Stevens, Chairman of the Federal ye Bralik of New York, and at his request, Mr. Carpenter read 087 6/21/49 P°rtions of the letter which reviewed the economic situation and °Iltlined monetary and credit policies that the directors of the Pederal Reserve Bank of New York believed to be desirable. At the conclusion of the discussion, it was agreed that Chairman McCabe might say to the Secretary of the Treasury that interE'st rates should not be permitted to rise in a period like the 131'esent and if it were decided to discontinue the support policy °II bills and certificates and engage in open market operations in tlkitarea of the market only to the extent necessary to maintain derlY market conditions, the System would take such action to rereserve requirements or the discount rate or to purchase securbe ities in the market (or a combination of all three) as might during refundliecessarY to prevent rates from rising, particularly lInd tax payment periods. In anticipation of the discussion of credit policy at this meet. the Banking nC; Messrs. Riefler, Young, and Youngdahl, Chief of had prepared a ic)n of the Division of Research and Statistics, kern, --arandum under date of June 21, 1949, suggesting actions that of the 112111t be taken by the System to combat deflation. Copies raekr, 1"8.4clum were distributed at this point, and it was understood ' tbat , afternoon. It would be discussed at a further session this The meeting then recessed and reconvened at 2:00 p.m. with the se.me attendance as at the close of the morning session. 6/21/49 -1)Chairman McCabe referred to the discussion at the meeting Oil June 3, 1949, and stated that he had a telephone conversation te'daY with Mr. Aldrich, Chairman of the Board of the Chase Bank, Nel`l York, and the latter requested that he be given an opportunity totle,-it with such members of the Board as were available on June 1949, at 2:00 p.m. for the purpose of discussing the proposed 13144cheze of American Express Company by the Chase Bank. Mr. Vest stated that pursuant to the understanding at the 3, he called Mr. Eugene Southall, Counsel of the ing on June " 11 'v Bank, on the telephone and informed him of the Board's view as e requested with xpressed at that meeting, that the information resPeet to tne foreign and domestic business of American Express °I:aP6111Y had not yet been received, and that it was difficult to ex1)x, es with respect to acquia view as to what the Board's position sitio, Bank would be - °f American Express Company by the Chase analyzed. 'uch information had been received and It was suggested that Mr. Aldrich be Informed that the Board. like to receive the be glad to meet with him but that it would 4ct 3 4 telephone conversa-tformation requested by Mr. Vest in his ti permit a study of • Q4 with •- Counsel for the Chase Bank in time to the -L4formation before the meeting. apThe foregoing suggestion was proved - mar11:-Iously. 6/21/49 At Chairman McCabe's request, Mr. Carpenter read the IneMorandum prepared by Messrs. Riefler, Young, and Youngdahl under aate of June 21 which suggested a program of credit policy for deflation, copies of which were distributed at the morning Session. ?. Memorandum recommended that in view of the current recession ' Th 14 economic activity and the prospects that such recession might consideration be given at °Iltinue and deepen during coming months, this time to: le of sales Sharp curtailment and early discontinuance orderly an of long-term Government bonds except on market basis. 2. each Prompt reduction of reserve requirements for ry tempora class of member bank, inclusive of the points age percent requirement now in effect, by say 3 against point against demand deposits and 1 percentage s reserve free time deposits. This would increase the as uted distrib of member banks by 2.6 billion dollars, follows: Central reserve city banks Reserve city banks Country banks $700 million 11 1,000 tI 900 s 3. Firm maintenance of the System's present total holding of bills and certificates. per cent. Reduction of discount rates to say 1-1/4 the suggested program Statements amplifying the reasons for made by Messrs. Riefler and Young and in the ensuing informal Eccles suggested that tilelassion of future System credit policy, Mr. .eredit as an instrument to policy was of relatively minor importance °1211:1at System might undertake recession and that no policy which the 6/21/49 -17- ta that direction would be successful in the absence of the adopt4'011 by the Government of consistent policies in other fields and of . which would increase purchasing power and otherwise encourage Bte r coasumer demand. Each of the members of the Board expressed inform.. &I.1 his views as to what System credit policy might include, and It w_ agreed that no action would be taken until after Messrs. Iiicaabe and Sproul talked with Secretary of the Treasury Snyder this artern, --°11, and that it would be desirable to call a meeting of the .lecleral Open Market Committee or its executive committee for the 1341Tose of considering System open market policy in the light of chang ing conditions and the conversations with Secretary Snyder. At this point Messrs. Riefler, Leonard, Vest, Young, and each of the withdrew, and the action stated with respect to balltter - hereinafter referred to was taken by the Board: Governors of the Minutes of actions taken by the Board of Pe eral approved unanimously. leserva System on June 20, 1949, were ' tor or c t Townsend, SoliciMemorandum dated June 14, 1949, from Mr. the Board, recommending a change in the title of Mr. G. How- hase from attorney in the Office of the Solicitor to Assis- 14t Solicitor, an official position, and also recommending an : ellcreEtse in his basic salary from $8,808.75 to $10,000 per annum, treti*7e June 26, 1949. Approved unanimously. 6/21/49 -18Memorandum dated June 21, 1949, from Mr. Leonard, Director (If the Division of Bank Operations, recommending the appointment f Miss Joy W. Lord as a clerk in that Division on a temporary in"nite basis, with basic salary at the rate of $2,284 per annum, effective as of the date upon which she enters upon the performlee of her duties after having passed the usual physical examinatiQa. Approved unanimously. Johnson, PersonMemorandum dated June 21, 1949, from Mr. salary of Nancy riel Officer, recommending an increase in the basic -, a clerk-stenographer in the Division of Personnel L' Chelbert IcInlinistration, from $2,799.24 to $2,874.48 per annum, effective jtille 26) 1949. Approved unnnimously. Bethea, Director Memorandum dated June 17, 1949, from Mr. or the recommending that the Division of Administrative Services, in that Di141Thltnient of Raymond Lee Watkins, a cafeteria helper increase in be extended on a permanent basis, with an atic effective June 27, salary from $2,020 to S2,086 per annum, 1949. Approved unanimously. Federal ReTelegram to Mr. Latham, Vice President of the Bank of Boston, reading as follows: 0) , r07-1:174 6/21/49 -19- "Retel June 20, 1949. Board approves designation Of Robert B. Higgins as a special assistant examiner for the Federal Reserve Bank of Boston." Approved unanimously. Letter to Mr. Wilgus, Assistant Vice President of the FedReserve Bank of Philadelphia, reading as follows: "In accordance with your letter of June 16, 1949, the Board of Governors approves the payment of salary to Joseph A. Costello, Traffic Clerk, Department of Colin exlections, at the rate of $4118 per year, which is is cess of the maximum of the grade in which his job classified." Approved unanimously. the Federal Letter to Mr. Walden, First Vice President of lie8e rve Bank of Richmond, reading as follows: in your "In accordance with the request contained desigletter of June 16, 1949, the Board approves the t exassistan nation of Charles P. Kahler as a special "liner for the Federal Reserve Bank of Richmond." Approved unanimously. Federal ReLetter to Mr. Volberg, Vice President of the sell/7e Bank of San Francisco, reading as follows: "In accordance with letter of June 17, 1949, tion of the following as the Federal Reserve Bank Armand A. Pascual John H. Gilmour H. H. Emmons H. L. Edwards A. L. Lambert in your the request contained designathe Board approves the s for examiner special assistant of San Francisco: L. T. M. P. L. H. C. W. Lee Merriam Petersen Van Der Like 1093 6/21/49 -20- "Appropriate notations have been made in the Board's records of the names reported as deletions." Approved unanimously. Letter to Mr. DeMoss, Vice President of the Federal Reserve 88-nk of Dallas, reading as follows: "In view of the recommendation contained in your letter of June 16, 1949, the Board of Governors extends to August 1, 1949, the time within which the 'Citizens State Bank & Trust Company', Kilgore, Texas, may accomplish membership." Approved unanimously. Broad Street, Letter to Holtzmann, Wise, Shepard & Kelly, 30 Nev York 4, N. Y., reading as follows: trans"This refers to your letter of May 24, 1949, York, New of mitted through the Federal Reserve Bank enclosing an application on Form 1)0 for approval and Corporareservation of the title 'International Funding organbe to proposed tion for Israel' for a corporation Federal the of ized under the provisions of section 2)(a) Reserve Act. will re"As requested in the application, the Board for Corporation serve the title 'International Funding this of date Israel' for a period of 30 days from the action with letter. However, the Board is postponing respect to approval of the title, awaiting more definite which will information concerning the proposed corporation to organize taken 1tleed to be developed if further steps are : with the filed are he corporation and organization papers , Board," Approved unanimously, for transReserve mission through the Federal Bank of New York. Secretary. Chairman.
@FedFRASER