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263 A meeting of the Board of Governors of the Federal Reserve System was held in Washington on Monday, June 22, 1942, at 2:00 p.m. PRESENT: Mr. Eccles, Chairman Mr. Ransom, Vice Chairman Mr. Szymczak Mr. McKee Mr. Draper Mr. 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 hereinutter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ? e eral Reserve System held on June 20, 1942, were approved unanimously. Memorandum dated June 18, 1942, from Mr. Goldenweiser, Director 04 the Division of Research and Statistics, recommending that Miss ketth„ ' -- r b• Lupton be appointed as a clerk-stenographer in that Divi444 On a temporary basis for a period extending through August 31, 1942, with salary at the rate of t120 per month, effective as of the date U pon which she enters upon the performance of her duties after havIn g Passed satisfactorily the usual physical examination. Approved unanimously. Memorandum dated June 22, 1942, from Mr. Nelson, Assistant Secret arY, submitting the resignation of Anthony Diaz as a chauffeur 111 the Secretary's Office, to become effective as of the close of 12644 (:///42 -2- business on June 22, 1942, and recommending that the resignation be ac cepted as of that date. The resignation was accepted. Memorandum dated June 19, 1942, from Mr. Cravens, Administrator f°r the war Loans Committee, recommending that Miss Esther Severud and 011 Wright be transferred from the Office of the Secretary to the Ora ce of the Administrator, War Loans Committee, as stenographers on Pel'ruatlent basis, with no change in their present salaries at the rate or ft) , , - 0080 and 1,620 per annum, respectively, effective as of June 22, 1942, Approved unanimously. tank of Letter to Mr. Tice, Vice President of the Federal Reserve New York, reading as follows: "This refers to your letter of June 11, with re?ect to the retirement as of July 1, 1942 of Mr. Phil ,?.rPentier, a clerk in the Clearings Division of the reek Department, who is 60.6 years of age, because of serious heart ailment. "You state that your Directors authorized the offieY.? to make a payment of approximately 2,682 to the ue6lreme1ft System to bring Mr. Carpentier's allowance to 600 a year, and also to pay Mr. Carpentier P15 :,14°nth for the period July 1, 1942 to July 1, 1943. Board will interpose no objection to the making of ese payments by your Bank." Approved unanimously. Letter to the board of directors of the "Citizens' Bank of Follansbee, West Virginia, stating that, subject to conditikts of membership numbered 1 to 3 contained in the Board's Regulation L 26a 6/22/42 —37 H and the following special condition, the Board approves the bank's al3lication for membership in the Federal Reserve System and for the 14)131'°Priate amount of stock in the Federal Reserve Bank of Cleveland: "4. Prior to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of t'l,999.76 as shown in the report of examination of such bank as of April 13, 1942, made by an examiner for the Federal Reserve Bank of Cleveland." Approved unanimously, together with a letter to Mr. Fleming, President of the Federal Reserve Bank of Cleveland, read— ing as follows: "The Board of Governors of the Federal Reserve Sys— approves the application of the 'Citizens' Bank of °11ansbee', Follansbee, West Virginia, for membership ln the Federal Reserve System, subject to the conditions Prescribed in the enclosed letter which you are requested forward to the Board of Directors of the institution. .1170 copies of such letter are also enclosed, one of which for your files and the other of which you are requested 0 forward to the Commissioner of Banking for the State of liest Virginia for his information. "The examiner's answer to the appropriate question on Ptage 16 of the report of examination for membership is to hC effect that time and savings deposits are being handled 1-11 accordance with the provisions of law and the Board's l egulations, but the information given in answer to the ' the !ucceeding question leaves doubt as to conformity of of notice require 7greement with respect to the right to aTtended savings deposit withdrawals. It is assumed that, l ..ter looking into the matter, the Federal Reserve Bank J11 follow to a conclusion any necessary revisions in 74 "e bank's practice in this connection." Telegram to Mr. Leedy, President of the Federal Reserve Bank or }(,_ '`usas City, stating that, subject to conditions of membership num— bet,ed to 3 contained in the Board's Regulation H, the Board approves o .42?fiiiti 6/22/42 -4- the 4PPlication of "The First State Dank of Lamed", Lamed, Kansas, t°r membership in the Federal Reserve System and for the appropriate 41°141t of stock in the Federal Reserve Bank of Kansas City. The tele- gt'aill requested that the Federal Reserve Bank advise the applicant bank of the Board's approval of the application and conditions of membership 151cribed, together with necessary instructions as to the procedure accompli5hing membership, and stated that a letter containing cetailed advice regarding such approval would be forwarded to the 41)P1icant bank through the Reserve Dank and that it was assumed the lieserve Bank would follow the matter of the bank's amending its charter With respect to the number of directors required. Approved unanimously. Letter to Mr. Stroud, First Vice President of the Federal Re%Ire Bank of Dallas, reading as follows: "Thank you for your letter of June 10, 1942, with reference to the purchase of watches by railroad employees. "The ruling on the wage assignment procedure has now been • , issued, but it does not appear that this will help 'he problem of the railroad companies materially. "Some of the railroad companies have arranged with i!ewelers to lend watches in the early period of employment, _ut scarcity of watches for this purpose may prevent such °' practice from solving the problem in full. "It rather appears that an amendment will be necess arY. There is a possibility that this may be safeguarded by .relating it to an order of the War Production Board, crliting sales to railroad employees who obtain certain rtifications from their supervisors." Approved unanimously. Letter prepared for the signature of Chairman Eccles to 6122/42 —5— Honorable Robert P. Patterson, Under Secretary of War, reading as f°11.ows: "This letter is written to cover a modification of the understanding expressed in my letter to you of June 13 which you acknowledged on June 14 with respect to the space in this building which has been occupied by the Inter-American Defense Board. "Last Friday General McNarney called at my office and presented a request for the assignment of certain sPace for the use of the Brazilian-United States Joint Defense Commission. In that connection I reviewed some of the increasing responsibilities of the Board in conecti0n with the war program which had made it necessary Or the Board to recall a portion of the space which it made available to the Inter-American Defense Board. !Ise also discussed the importance of the new Brazilianunited States Defense Commission and especially the desirability of doing everything possible to promote good relations with Brazil. To this end I am glad to cooperate even though the space covered by General McNarney's request is a part of that needed for our own work. "Therefore we are agreeable to the use by the Brazilianunited States Joint Defense Commission of the space marked 1266, 1266._A, 1266-B, 1266-C and 1266-D, as shown on the ..ttached floor plan, aggregating approximately 1,080 square ,set of office floor area, until it again becomes necessary 60 have this space to meet our own needs, of which we will gills you reasonable notice. Since this modification is e for the accommodation of the Brazilian Commission, .s space to be occupied by it is not to be offered or made frailable for the use of any other group or agency and will eevert to the Board in any event whenever that Commission r leases to use it. This is likewise the case as to the ter-American Defense Board with respect to the space asfled to it in the eastern part of the first floor of the ti,Street wing. We assume, of course, that any expense to Board caused by either of these Commissions will be re'440ursed upon request. 'With the modification outlined in this letter, the ' iuerstanding stated in my letter of June 13 remains un2anged and, assuring you again that we are taking pleasure '" accommodating the Brazilian Commission, as well as your r V 6/22/42 -6- "Department, I are Approved unanimously. Memorandum dated June 18, 1942, from Mr. Wingfield, Assistant Getl erkl Counsel, recommending that there be published in the July is— elle of the Federal Reserve Bulletin statements in the fora attached to the m em°randum. with respect to the following subjects: Consumer Credit Interpretations of Regulation Declarations of War War Financing Act to Mobilize Productive Facilities of Small Business Definition of Term "Unconditional" Guarantee Approved unanimously. Thereupon the meeting adjourned. Chairman.
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