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'752 A meeting of the Board of Governors of the Federal Reserve 8Y8tem was held in Washington on Monday, June 23, 1941, at 10:15 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary The action stated with respect to each of the matters herein— after referred to was taken by the Board: rs of the The minutes of the meeting of the Board of Governo eral Reserve System held on June 18, 1941, were approved unanimously. rs of the The minutes of the meetings of the Board of Governo ecleral Reserve System held on June 19, 20, and 21, 1941, were approved and the actions recorded therein were ratified unanimously. Nelson, Assistant Memorandum dated June 19, 1941, from Mr. Secretary, submitting a request from Lawrence A. Kerns, guard in the lkilding Operation and Maintenance Section of the Office of the Sec— reporting for military l'etarY, for leave of absence for the purpose of cilltY with the United States Army, and recommending that Mr. Kerns be granted leave of absence for military duty beginning June 27, 1941, in accordance with the policy adopted by the Board on November 14, 1940, ff3r employees called for military service. Approved unanimously. Memorandum dated June 19, 1941, from Mr. Nelson, Assistant .753 6/23/41 Secretary, recommending (1) that James W. Sanderson be appointed on a permanent basis as a guard in the Building Operation and Maintenance Section of the Secretary's Office, with no change in his present salary at the rate of .)1,380 per annum, (2) that Adam V. Hauser, chauffeur, be promoted to the position of guard in the Building Operation and Maintenance Section of the Secretary's Office on a temporary basis for an indefinite period, and that his salary be increased from $1,200 to A1,380 per annum, effective July 1, 1941, with the understand1=rig that if his work in the new position during the next six months is entirely satisfactory, a further recommendation will be made that his James L. Jones salary be increased to A1,500 per annum, and (3) that and Maintenance be appointed as chauffeur in the Building Operation Section of the Secretary's Office on a temporary basis for an indefiannum, effective nite period, with salary at the rate of A1,200 per performance of his duties 48 of the date upon which he enters upon the after having passed satisfactorily the usual physical examination. Approved unanimously, with the understanding that the permanent appointment of Mr. Sanderson will be effective immediately. Nelson, Assistant Memorandum dated June 19, 1941, from Mr. Secretary, referring to the arrangement approved by the Board under Which Lida B. Sloan, stenographer in the Office of the Secretary, and IdlarY McDonnell, stenographer in the Office of General Counsel, were granted extended leaves of absence without pay to June 30, 1941, and 154 6/23/41 -3- recommending that the Board approve a further extension of the leaves of absence without pay for a period of one year from July 1, 1941, in order that they might continue their work in the Priorities Section of the Office of Production Management, that during such absence no contributions to the Retirement System be made by them or by the Board, aId that upon return to active service they be permitted to retain the benefits accruing from service rendered prior to such absence, provided ment System, it they do not withdraw their contributions to the Retire being understood that during the period of their absence they would not be members of the Retirement System. The memorandum also stated that on in so far as 11r. Wyatt, General Counsel, concurred in the recommendati 14iss McDonnell was concerned. Approved unanimously. ent of the Federal Reserve Letter to Mr. Hitt, First Vice Presid Sank of St. Louis, reading as follows: of June 6, 1941, "This refers further to your letter ies in your in which you state that one of the trust compan establishing a Common Trust district which is contemplating whether, in the periodical to Fund has requested advice as Trust Fund, Series G Common valuation of the assets in a be valued at par should States savings bonds of the United value, or at ty maturi te which is their cost and ultima each valuation. their redemption value at the time of therefore, their These bonds are not transferable and, is the amount at time ular partic liquidation value at any Which they can be redeemed at that time. to Common Trust "The Board's Regulation F relating of section 17(c) of Funds operated under the provisions n plan for the operaRegulation F requires that the writte things, tion of each such Fund shall include, among other .765 6/23/a -4- "detailed provisions relating to the basis and method of valuing assets in the Fund, but the regulation does not undertake to prescribe any precise method of valuation. However, one of the principal reasons for the requirement in the regulation that the assets of such a Common Trust Fund be valued periodically is to determine the amount which a participating trust may withdraw on the valuation date and to determine the basis upon which new participations may be issued to trusts on such date. In the circumstances, it would seem to the Board that the most appropriate basis for valuing Series G bonds for purposes of such a Common Trust Fund would be the redemption value of such bonds. This conclusion has been checked informally with officers of trust companies in other districts which are operating Common Trust Funds and they agreed with the conclusion." Approved unanimously. Thereupon the meeting adjourned. Secretary. Chairman.
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