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1023 A meeting of the Board of Governors of the Federal Reserve antena was held in Washington on Saturday, June 23, 1945, at 11:00 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters hereinreferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ' rel Reserve System held on June 22, 1945, were approved unanimously. Memorandum dated June 21, 1945, from Mr. Bethea, Director th. 71 e, ivision of Administrative Services, recommending that Miss 4rtrim --e Murphy be appointed as a clerk-typist in that Division on 4t el1113°rary basis for an indefinite period, with basic salary at the Ilte °I* $1,440 per annum, effective as of the date upon which she ettt e uPon the performance of her duties after having passed satistact . the usual physical examination, with the understanding that -vthing derogatory develops in the investigation of her references 8ervices may be discontinued. The memorandum stated that Miss would become a member of the Board's retirement system. Approved unanimously. Letter to Mr. Rice, Vice President of the Federal Reserve Bank 1024 6/23/45 —2— ew York, reading as follows: "The Board of Governors approves the changes in the Personnel classification plan of the Federal Reserve Bank of New York, involving an increase in the maximum annual salaries for the positions of Dishwasher and Bus Boy, as submitted with your letter of June 19, 1945." Approved unanimously. Letter to Mr. Meyer, Assistant Cashier of the Federal Reserve Bank of Chicago, reading as follows: "The Board of Governors approves the changes in the Personnel classification plan of the Federal Reserve Bank • Chicago, involving increases in the maximum annual sal— ar:les for the positions of Chief Engineer and Watch En— glneer, as submitted with your letter of June 15, 1945." Approved unanimously. Letter to Mr. Caldwell, Federal Reserve Agent at the Federal 4"r1Te Bank of Kansas City, reading as follows: "In accordance with the request contained in your ett ler of June un 16, 1945, the Board of Governors approves, effective July 9, 1945, the appointment of Mr. D. E. Chase 0 8.? Federal Reserve Agent's Representative at the Oklahoma 4.1tY Branch with salary at the rate of $3,180 per annum, succeed Mr. J. C. Clark, Jr., who has resigned effec— JulY 7, 1945. Tt, is noted from your letter that Mr. Chase will be 4. Placed upon the Federal Reserve Agent's pay roll, and Ois approval is given with the understanding that he will O7 1e1y responsible to him, or during a vacancy in the ,'Lice of Agent, to the Assistant Federal Reserve Agent, ; ;1 x1 to the Board of Governors, for the proper performance • his duties. When not engaged in the performance of duties as Federal Reserve Agent's Representative he TY, with the approval of the Federal Reserve Agent or, • his absence, of the Assistant Federal Reserve Agent, 0 1025 6/23/45 —3— and the Vice President in charge of the Branch, perform such work for the Branch as will not be inconsistent with Ills duties as Federal Reserve Agent's Representative. "It is also noted from your letter that, before Mr. Chase assumes his duties as Federal Reserve Agent's Repre— sentative, he will execute the usual oath of office which Should be forwarded to the Board." Approved unanimously. Letter to Mr. Knoke, Vice President of the Federal Reserve Bank New York, reading as follows: "Pursuant to the request in your letter of June 19, the Board of Governors has approved your Bank's opening dollar account and a securities custody account on its 000ks in the name of De Surinaamsche Bank, in addition to the earmarked gold account which your Bank has for .°me time maintained for De Surinaamsche Bank, and sub— 8 'rot to the usual terms and conditions upon which your maintains accounts for other foreign central banks. shall be interested to know of the replies made by rthe.other Federal Reserve Banks to your offer of partici— Patlon in these new accounts." Approved unanimously. Letter to Mr. Dillard, Vice President of the Federal Reserve Of Chicago, reading as follows: t "Under date of June 16 you were advised that the ifcard had designated Dr. Parry and Mr. Vest as its repre— : entatives for the purpose of the Conference with Con— ,J ; Ilers Home Equipment Company, which is scheduled for . 11.7.10. It now appears that, due to matters which will ?glare their attention here, it will be impracticable (31 'Dr. Parry or Mr. Vest to come to Chicago for this conference. hp "This is to advise you, therefore, that the Board. j's designated Mr. Bonnar Brown, Assistant Director, Dlvi83:on of Security Loans, and Mr. J. Leonard Townsend, As— ant General Attorney, as its representatives for the 6/23/45 —4— "Purpose of this conference. It is understood that they ll utilize the transportation reservations previously arranged for Messrs. Parry and Vest, and it is suggested that the hotel reservations referred to in your telegram ct June 15 to Dr. Parry be changed accordingly -- the one fl Mr. Vest's name to be changed to Mr. Townsend, and that in Dr. Parry's name to be changed to Mr. Brown." Approved unanimously. Memorandum dated June 21, 1945, from Mr. Foulk, Fiscal Agent, 'reeo Inmending that an assessment of two hundred and ninety-five thousandths (*°°295) of one per cent of the total paid-in capital and surplus (secti°118 7 and 13b) of the Federal Reserve Banks as of the close of busi- Ilese June 30, 1945, be levied to cover the general expenses of the for the six months' period beginning July 1, 1945, and that the 4..al Reserve Banks be instructed to pay in the assessment in two eqai. instalments on July 2 and September 1, 1945. The following resolution levying an assessment in accordance with the Fiscal Agent's recommendation was adopted by unanimous vote: "WHEREAS, Section 10 of the Federal Reserve Act, ao.; amended, provides, among other things, that the Board Governors of the Federal Reserve System shall have P icmer to levy semiannually upon the Federal Reserve Banks, sti Proportion to their capital stock and surplus, an as8. !sment. sufficient to pay its estimated expenses and the aries of its members and employees for the half year : ucceeding the levying of such assessment, together with MY year, axid deficit carried forward from the preceding half timat "WBEREAS, it appears from a consideration of the esed expenses of the Board of Governors of the Federal j,.”rvo System that for the six months' period beginning -47 1, 1945, it is necessary that a fund equal to two 1 027 6/23/45 -5"hundred and ninety-five thousandths of one per cent (.00295) of the total paid-in capital stock and surplus (Section 7 and Section 13b) of the Federal Reserve Banks be created for such purposes, exclusive of the cost of printing, issujag and redeeming Federa; Reserve notes;"NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF GOV_ ERNORS OF THE FEDERAL RESERVE SYSTEM, THAT: "(1) There is hereby levied upon the several Federal Reserve Banks an assessment in an amount equal to two hundred and ninety-five thousandths of one per cent (.00295) ?f the total paid-in capital and surplus (Section 7 and Section 13b) of each such Bank at the close of business June 30, 1945. "(2) Such assessment shall be paid by each Federal Reserve Bank in two equal instalments on July 2, 1945, and SePtember 1, 1945, respectively. "(3) Every Federal Reserve Bank except the Federal ReServe Bank of Richmond shall pay such assessment by transthe amount thereof on the dates as above provided Lough the Interdistrict Settlement Fund to the Federal serve Bank of Richmond for credit to the account of the b°ard of Governors of the Federal Reserve System on the c4ke of that Bank, with telegraphic advice to Richmond the purpose and amount of the credit, and the Federal teeerve Bank of Richmond shall pay its assessment by creditthe amount thereof on its books to the Board of Goverrs of the Federal Reserve System on the dates as above Provided.fl ir Letter to Congressman Herman P. Eberharter reading as follows: "This is in reply to your letter of June 15 in which II call attention to the remarks concerning the Board's egulation Wwhich were made by you in the House of Representatives on June 13, and state that you would like to rave from the Board of Governors an expression of their eaction to the suggestion made by you that there be a special exemption of veterans from Regulation W. „ "The principal purpose of that proposal would be to ' 7 t it easier for the veteran to buy things on credit at Inle when he may be having difficulty in getting back int , 110;° civilian life. There is much to be said from that bjnt of view for the proposal, as you have pointed out, or 'we feel that we should invite your attention to some the other considerations involved. V 1028 6/23/45 -6"You will recall that the purpose of the Executive Order which provided for this regulation, like that of much wartime legislation that has been enacted by the Congress, is to assist in the Government's program for Nhting inflation and the spiraling upward cost of livIng. This is a purpose that is in the interest of veterans aS much as, and perhaps more than, any other group. If, as a group, they should find upon their return that the Prices of things they desire were out of all reason, they would not feel that their interests had been protected in their absence. Nor would they find it in their interest lf it were made possible for sellers who would like to be relieved from this regulation to load them down with goods at wartime prices under the lure of easier credit terms. result in many cases would be to saddle them with bupurdensome rdensome debt, which would also deprive them of the ule°,ns of enjoying the wider opportunities afforded by unrestricted production which we expect to come when hos: 1 . 111ties cease. Moreover, veterans and their families and dependent relatives are becoming more and more numerous, 80 that an exemption would be a long step in the direction Of nullifying the regulation before that action is justiVle cannot believe under present conditions that Isul? would be in their interest any more than it would ue In the interest of the general public." j?d. Approved, Mr. McKee voting "no." Thereupon the meeting adjourned. Chairman.
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