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Minutes of actions taken by the Board of Governors of the hderal Reserve System on Friday, June 24, 1949. The Board met in the Board Room at 9:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Szymczak Draper Evans Vardaman Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Riefler, Assistant to the Chairman Vest, General Counsel Leonard, Director, Division of Bank Operations Mr. Young, Associate Director, Division of Research and Statistics Mr. Hostrup, Assistant Director, Division of Examinations Mr. Smith, Special Counsel Mr. Mr. Mr. Mr. Mr. Mr. Mr. each member of Before this meeting there had been sent to the Board a copy of a memorandum prepared by Mr. Smith under date of Board should 411" 9/ 1949, with respect to the question whether the made in the c11151-Y with the formal demand of Transamerica's counsel, se of the hearing on the Clayton Act proceeding against that examination reports of C°11Poration, that the Board's 1943 and 1946 inspection by counamerica and its affiliates be produced for eel for Transamerica. In the memorandum Mr. Smith stated that he believ ed the "open" or non-confidential sections of the reports should be so without the necessity of Produced and that that might be done 1104 6/24/49 -2- the Board reversing the Hearing Officer's ruling that only parts Of the reports be made available for inspection by Transamerica's The memorandum also stated alternative ways in which the c°1111sel. l'el°1"te might be made available to Transamerica. Mr. Evans stated that he had no objection to changing the companies 11°all'e present policy so that in the future holding /f°111d be given copies of examination reports, excepting the confid'ettial sections, in the same manner in which they were given such Ports prior to the action of the Board on January 31, 1945, but available to Transthat he did not feel there was any reason to make of examination 'eltlIca Corporation at this time the complete reports it would seem tri4ae in 1943 and 1946 and if such action were taken desirable to follow the same procedure with respect to reports of --Lunation of all other holding companies and their affiliates in Vhich upon the Board's event a large amount of work would be imposed staff or appeared to Supply reports for which no demand had been made t° e%ist. for the Board's There followed a discussion of the reasons holding company "ti°4 of January 31, 1945, adopting a rule that iates would not be furnished with copies of reports of examina0 stated that conversations 1 4 Of the subject companies, and Mr. Vest l'ith Mr Board and who made the McKee, who was then a member of the r40t4( '°11 to withhold such reports, and with Mr. Dreibelbis, then 7 6/24/49 -3- Gelleral Attorney of the Board, had added little to the reasons for MoPting such a rule beyond those contained in the minutes of the leeting at which the action was taken. Mr. Vest added that denial c't the request of Transamerica's counsel for the 1943 and 1946 remight raise possible issues in the Clayton Act proceeding Ithich counsel for the respondent would present in court, that the flC58 Were such a decision would be considered an erroneous rul1.4 but even so might not be considered a reversible error, but that the issue could be eliminated entirely if the reports were 4 to Transamerica. Townsend, Mr. Vest also said that when Mr. 8014 4-citor of the Board, was in Washington earlier this month, he illtlormed him that he did not have any objection to making the reP°11.18 available at this time but that he (Mr. Townsend) raised the to take an ‘ilesti07a Whether it would be desirable for the Board a•ctio n which might be considered as contrary to a ruling of the Heartlig Officer. Mr. Evans reiterated that he had no objection to making the "s available in their entirety as requested, that he had alrel reto ' SY made available certain portions of the reports in accordance lth th thought gave e ruling he had given at the hearing which he Traria america's counsel everything he wanted, and that his only obilktion Board's action of wato the amount of work involved if the al4111. ' - t'Y 31, 1945, was rescinded. 1.106 6/24/49 -4Mr. Vardaman stated that he raised this question because he felt the reasons stated in the Board's minutes of January 31, 1945) for adopting the policy of withholding such reports were in el.ror, that he felt strongly this record should be corrected, that he disliked making the reports of the 1943 and 1946 examinations of he did not /'Isallsamerica Corporation available retroactively but that see hov the Board could consistently resume the practice of furnish-n reports in the future without also complying with the request of he had reached l'Illiasamerica for the 1943 and 1946 reports, and that the conclusion that the best procedure would be to rescind retrots of "tivelY the Board's ruling requiring that examination repor hold4 4-11:, companies not be made available to the companies examined. There followed a discussion of Mr. he Vardaman's suggestion during which rerule the nd moved that the Board resci holdof ts repor quiring that examination ing company affiliates be not made and available to the companies examined g makin of that the Board adopt a policy to able avail such reports of examination manner the subject companies in the same of exts repor and to the same extent as availmade amination of member banks are stood under able to such banks, it being Federal that the Board would advise the nt was benceme annou Reserve Banks that no e in ing made by the Board of this chang ng comholdi policy but that should a bank ts of repor of s pany affiliate request copie 3, ary Febru examination completed between ve Reser al Feder 1945, and the present, the ts repor such Bank was authorized to make the extent available in the manner and to 6/24/49 -5authorized by the new policy. Mr. Vardaman's motion was put by the Chair and carried unanimously, with the further understanding that the action contemplated that the reports of the 1943 and 1946 examinations of Transamerica Corporation and of affiliated companies, except for the confidential sections and material in the open sections which should have been placed in the confidential sections, would be made available to the Corpthe oration pursuant to the request made at Board's the hearing now being conducted by Hearing Officer. meeting on June Reference was made to the discussion at the 13, 1949, of the procedure that would be followed in the event of the Illtrisamerica Corporation filed a motion at the conclusion 13°ard'8 testimony to dismiss the Clayton Act proceeding for failure °I) the Board to make a case. Mr. Vest stated that he was of the three %lion that the Board might handle such a motion in any one of r13: (1) the The Board might undertake to consider and decide 4pti°A itself, (2) the Board might refer the motion to the Hearing Ote4„, Board for a recommendation as to the decision, or (3) the 4leht refer disposition by the the motion to the Hearing Officer for lie41'ing Officer. considered, he He went on to say that all things telt the last alternative should be followed. nt comMr. Smith stated that he agreed with Mr. Vest's stateme make would be l)letelY and that the only additional comment he would th4t -4 ally have his opinion the Hearing Officer would not technic 1108 6/24/4, -6- authority to dismiss the case without action by the Board itself Itnd that if the Hearing Officer should reach a conclusion that such a 111°tion should be granted, it would then be necessary that an order Of dismissal be entered by the Board. Mr. Evans stated that, as indicated at the meeting on June 13) he would not wish to assume the responsibility of granting a Motion to dismiss the case and that if he should feel upon consid"ation that such motion should be granted, he would refer it to the Board. the He added, however, that he felt the question of considering be heard motion and of determining whether oral argument should lias Part of his responsibility as Hearing Officer and that until he had made a report to the Board in the matter, such a motion should be r eferred to him for hearing. Thereupon, Mr. Evans moved that if upon completion of presentation of the Board's case in the Clayton Act proceeding against Transamerica attorneys for the Corporation addressed to the Board a motion to dismiss the case, it be understood that the Board would enter an order referring the motion to the Hearing Officer for consideration and disposition. and This motion was put by the Chair statecarried in the light of Mr. Evans' considerament that if he should feel upon be should tion of such a motion that it the to matter granted, he would refer the n Vardama Board for formal action. Mr. voted "No" on this action. occur which would Mr. Evans stated that he hoped nothing would 1109 6/24/49 cause the Board to change its mind with respect to the handling of sUch a motion to dismiss, and the members of the Board all indicated that they would not do so in the absence of developments that could 110t now be foreseen. Chairman McCabe suggested that if other matters with respect t° the Transamerica hearing occurred to any of the members of the 1°411d, they should be brought up for consideration before Mr. Evans left to return to San Francisco. He also stated that he felt the the hands hattaling of the case should be left as far as possible in r the Hearing Officer and those designated to act in connection ith it unless some difference of opinion arose between the Hearing or the °tricer, his technical legal adviser, the Legal Division, Board. Solicitor which made it necessary to come to the members of the This suggestion was concurred in by all of the tOP9 1.4.1 vho were present. disposed of Mr. Szymczak stated that he assumed this action the to whether question raised at the meeting on April 12, 1949, as Co ngress should be asked to authorize subpoena power for the Board, 413 appointment of an "'-u- as the question concerning the possible Etlternate Hearing Officer. question regarding Mr. VardAmAn stated that he raised the IbPo it would be useless and elle power and that he was now satisfied 4 authority at this time, 'Judgment to request Congress to give such attention to the fact that in that he wished to call the Board's 1110 6/24/4, -8- a meraorandum dated April 25, 1949, and in a succeeding Board meeting he suggested that this whole question be reviewed by the Board to detera0-lute whether or not the Board should go to Congress to ask for the subpoena authority. The question of possible appointment of an alternate hearofficer VAS discussed briefly and it was understood that no "tion in this respect need be taken at this time. as liaiMr. Evans stated that since Mr. Morrill was to act 4 officer between the Board and himself as Hearing Officer, he felt it would be highly desirable if Mr. Morrill in that capacity /1°Illd attend some of the hearings in San Francisco. Mr. Evans also "Etted that there might be occasions when the hearings in San Francisco would be recessed for several days at a time, that some members or the staff on the West Coast might not find their time fully did '3ellipied during such recesses with work on the case, but that he 11 feel it would be desirable to request them to return to Washington " ir much 'ken recesses were to be for brief periods which would not kore wian cover transportation time. that he Mr. Evans also stated District or other c°11te mPlated visits to different parts of the Twelfth 4re48 if any such recesses permitted. his judgment It was the consensus that Mr. Evans should use ,.g. termining the best use of his time or that of the staff in such ' would keep the Ileric)ds of recess, with the understanding that he //°Etra informed. 11 6/24/49 -9_ In this connection, Chairman McCabe requested Mx. Evans to stud7 the officer personnel situation at the Federal Reserve Bank °r Si Francisco and its branches and to consult with Mr. Wilbur, Chairman of the Board of the San Francisco Bank, when he had an opPortunity to do so in order to obtain his observations in these t atters. Mr. Eccles entered the meeting at this time, and Messrs. Smith and Rostrup withdrew. There were presented telegrams to the Federal Reserve Banks Of New York, Philadelphia, Cleveland, Richmond, Chicago, St. Louis, 14133.4 eapolis, Dallas, and San Francisco stating that the Board approves the establishment without change by the Federal Reserve Bank of San 48 .110isco on June 21, by the Federal Reserve Banks of St. Louis and kiluleapolis on June 22, by the Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, Dallas on June 23) and by the ?edel'al Reserve Bank of Chicago on June 24, 1949, of the rates of dis°°Illat and purchase in their existing schedules. Approved unanimously. Chairman McCabe stated that he telephoned Mr. Aldrich, ChairOf the Chase Bank, New York, after the meeting on June 21 and thekt Mr. Aldrich would like to meet with such members of the Board /lere available on Tuesday, June 28, at 2:30 p.m. but that in view Of the fact that a meeting of the Federal Open Market Committee had bee called for that afternoon it would be necessary to set an 1112 6/24/49 -10- alternate time for meeting with Mr. Aldrich. Mr. Vest stated that this morning he received a letter from Mr. Eugene Southall, Counsel for the Chase Bank, but that Mr. Southhall furnished very little of the information concerning the business c't American Express Company which was requested of him pursuant to the discussion at the meeting on June 3. It was suggested that Mr. Aldrich be informed that a meeting //ith the Board would seem to be fruitless in view of their failure to furnish the information to enable the Board to consider the prol°8ed acquisition of American Express Company by the Chase Bank but ' that if knowing this Mr. Aldrich wished to do so, the Board would be glad to have him meet with such members as were available at luncheon "1:00 p.m. on Wednesday, June 29. It was understood that Chairman McCabe would call Mr. Aldrich on the telephone and inform him of these views. Mr. Thurston stated that proofs of the Annual Report to the Co 481*ess covering the calendar year 1948 had been sent to all menOf the Board and that in the absence of further changes by member. of the Board the Report was ready for approval and would be ' ile4t to the printer for final printing in the course of the next few laYs. Upon motion by Mr. Evans, the Annual Report was approved unanimously, would with the understanding that copies of House be sent to the Speaker of the the of President Representatives and the 1113 6/24/49 -11Senate as soon as it was printed. Reference was made to a memorandum from Mr. Leonard dated McLarin, President of jtule 17, 1949, and to a draft of letter to Mr. the Federal Reserve Bank of Atlanta, prepared in response to a letter from him dated May 30, 1949, requesting that the Board approve a the purpose 'Iftxtmum fund of $30,000 to be advanced by the Bank for of slaking loans to employees. the use of Federal Mr. Vardaman stated that he was opposed to Reserve Bank funds for making loans to officers or employees of the Neral Reserve Banks, that he had understood that this practice was Presidents' Cont° be eliminated as a result of discussions at the Banks would establish tel'ence in February 1948 and that the Reserve l'edit unions to take care of such needs, and that he felt there Reserve Banks al1°111d be no further additions to the funds used by the r°r making such loans. questioned the making of Mr. Eccles stated that the Board had discussed at the February 1948 41alle of this type, that the matter was Pro.Presidents of the Re-01dents' Conference at which time some of the desirable for the Re-. eerve Banks stated that they felt that it was ser, ve Banks to make advances to employees in emergency cases where the Board approved a letrU4ds- were not otherwise available, and that 1948, (S-107 FRLS 9061), te'r to all Federal Reserve Banks on March 12, ,4 4Ixtho, excess of $15,000 for such pur"zIng the use of an amount not in 6/24/4,c, -12- loses or $25,000 in the case of the New York Bank, with the understanding that an individual Reserve Bank might submit a request for 411 increase in the fund. During the discussion of the matter, Mr. Szymczak suggested that it be referred tc the Personnel Committee for study "h a request that the Committee submit a recommendation to the board as to a policy that should be followed. Mr. Vardaman stated that he was willing to refer the questi°4 to the Personnel Committee, with the understanding that he felt the Reserve Banks should be requested to liquidate their pre8s4t loans to officers and employees within the next two years and disc ontlnue the practice of making such loans. He added that he have no objection to authorizing each Reserve Bank to establish modest fund to be used as a revolving fund for taking care emerge situations which arose among: employees. Mr. Eccles stated he would not wish to approve an increase 14 the he fund of the Atlanta Bank, that, for reasons which he stated, vas opposed to the practice of employer-emploYee loans, but that he not object to continuance of the present authority under ihIch each making welfare Reserve Bank might have a fund for use in 143Etts to that New York is employees not in excess of $15,000, except Itlith°1-ized to have a fund of $25,000. Following the discussion, it was 6/24/49 -13agreed unanimously that the Personnel Committee would study the matter and submit a recommendation to the Board. Mr. Horbett entered the meeting at this time. Copies of two memoranda from Messrs. Riefler and Young and on of ReYoungdahl, Chief of the Banking Section of the Divisi 8e41"ch and Statistics, dated June 23, 1949, were then distributed 44a read in silence by those who were present. The first memorandum ree°mmended a program of credit policy for deflation, stating that in dated June 21: the light of the Board's discussion of the memorandum 1949, presented at the meeting on that date and of subsequent staff aleeussions, a revised program was suggested as follows: 1. 1-1/4 percent. Immediate reduction of rediscount rates to 2. and yields on Reliance on the market to determine prices y supply primar with Government obligations in accordance per2-1/2 the uing contin and demand forces, (but possibly ). cent long-term rate as a limiting factor 3. Complete discontinuance of sales of longer-term Government basis. market bonds, except on a traditional orderly 4 holdings of cerFirm maintenance of the System's present a rollwith tificates, notes, and shorter-term bonds, . issues over on an exchange basis of maturing sufficient to enable the Reduction of reserve requirements either immediately market to absorb System bill holdings, reserves at excess or as the: become due, and to maintain well dises reserv about 1.5 billion dollars, with excess banks. member tributed among the three classes of The second memorandum discussed the subject of large excess reee rves and the threat of excessive credit expansion. 1116 6/24/49 There was an informal discussion of the matter during which It was understood that the members of the Board would study the "tire question and that there would be further discussion of it at a meeting of the Board on Tuesday, June 28, 1949, at 10:00 a.m, pre- Parato— to the discussion of open market aspects of the program at at 2:30 p.m. on that a Meeting of the Federal Open Market Committee date. At this point all of the members of the staff with the excePtion of Mr. Carpenter and Mr. Riefler withdrew from the meeting. which had been given Mr. Szymczak reviewed the consideration to the employment by the Board of Mr. Arthur W. Marget, Economic 4 Actv_ 4-uer to Ambassador Harriman of the Economic Cooperation AdminisMr. Marget tlIttl°/1, and stated that it had been ascertained that 1, 1950, and would l'iotad be available for such employment on January be w illing to join the Board's staff with a salary at the rate of 43,500 per annum. commitment had been made to He also said that no Marget as to whether he would be appointed as associate or assiscs or as the teAlt director of the Division of Research and Statisti ehiep 'of the international economic policy unit of the international SeQtion, hie desirable to that it had been suggested that it would be capacity so that it Mr. Marget join the staff in the latter /(41-14 be before deciding possible to observe his work for a period Vhether he should position, and that the be appointed to an official 6/24/49 -15- questi0n was whether the Board would be willing to appoint him as chief of the international economic policy unit. Mr. Eccles stated that a salary of $13,500 for the positiot. of chief of the international economic policy unit would be °Ilt of line and would not be justified. In the ensuing discus- several of the members of the Board stated that they would ,tilling on the basis of the satisfactory information that had be' beell obtained with respect to Mr. Marget's abilities to appoint 114 as assistant director of the Division of Research and Statistica Riefler be reThereupon, Mr. Szymczak suggested that Mr. to advise Mr. Marget that the Board approved his appointResearch and StatisAssistant Director of the Division of tics . of the Az charge of the international economic policy unit annum, effective With salary at the rate of $13,500 per 411118.17 1, 1950. unanimously, This suggestion was approved be within would with the understanding that it Riefler and k the discretion of Messrs. Szymcza come to d requeste whether Mr. Marget would be exBoard's from Europe to Washington at the date of pense for a conference prior to the his employment. matters hereThe action stated with respect to each of the referred to was taken by the Board: Governors of the Minutes of actions taken by the Board of ioeciertti approved unanimously. Reserve System on June 23, 1949, were 1118 6/24/49 -16Memorandum dated June 24, 1949, from Mr. Sloan, Assistant Director of the Division of Examinations, recommending the appointbent of Miss Diane Kendrick Vigeant as a typist in that Division on r 4 temporary basis for a period extending through Septembe 17, 1949, with basic salary at the rate of $2,284 per annum, effective as of the her duties date upon which she enters upon the performance of after having passed the usual physical examination. Approved unanimously. Memorandum dated June 23, the 1949, from Mr. Bethea, Director of ding an increase in Division Of Administrative Services, recommen , the basic salary of john N. Lyon, an accountant in that Division June 26, 1949. fl‘ nl $3,476.40 to $3,727.20 per annum, effective Approved unanimously. Bethea, Director of Memorandum dated June 20, 1949, from Mr. that an assessthe Division of Administrative Services, recommending percent (.00208) of of two hundred and eight thousandths of one the total paid-in capital and surplus (sections 7 and 13b) of the levied against the Fed'eclerel Reserve Banks as of June 30, 1949, be the Board of Governors Reserve Banks for the general expenses of that the Banks be int°11 the period July 1 to December 31, 1949, and nts on July 1, tItIlJteted to pay in the assessment in two equal instalme 1949, and September 1, 1949. levying The following resolution the with an assessment in accordance 6/24/49 -17above recommendation was adopted by unanimous vote: ve Act, as "WHEREAS, Section 10 of the Federal Reser the Board of that amended, provides among other things, have power shall m Governors of the Federal Reserve Syste , in ve Banks Reser to levy semiannually upon the Federal san asses us, surpl Proportion to their capital stock and the and ses expen ment sufficient to pay its estimated half year salaries of its members and employees for the her with toget succeeding the levying of such assessment, year, half ding any deficit carried forward from the prece and ion of the "WHEREAS, it appears from a considerat of the Fednors estimated expenses of the Board of Gover period begins' month eral Reserve System that for the six equal to fund ning July 1, 1949, it is necessary that a (.00208) cent per two hundred and eight thousandths of one ion 7 (Sect us surpl of the total paid-in capital stock and ed be creat Banks and Section 13b) of the Federal Reserve ing, print of for such purposes, exclusive of the cost issuing and redeeming Federal Reserve notes; BOARD OF "NOW, THEREFORE, BE IT RESOLVED BY THE THAT: GOVERNORS OF THE FEDERAL RESERVE SYSTEM, several Federal (1) There is hereby levied upon the to two equal Reserve Banks an assessment in an amount 08) of (.002 cent hundred and eight thousandths of one per Secand 7 ion the total paid-in capital and surplus (Sect June ess busin tion 13b) of each such Bank at the close of 30, 1049. nearest hundred (2) Such assessment, rounded to the Reserve Bank in two dollars, shall be paid by each Federal and the equal installments, the first of July 1, 1949, second on September 1, 1949. t the Federal (3) Every Federal Reserve Bank excep sment by asses Reserve Bank of Richmond shall pay such above proas transferring the amount thereof on the dates to the Fund vided through the Interdistrict Settlement account the to Federal Reserve Bank of Richmond for credit m on Syste ve Reser Of the Board of Governors of the Federal ond to Richm e advic the books of that Bank, with telegraphic al Feder the Of the purpose and amount of the credit, and assessment by creditReserve Bank of Richmond shall pay its Board of Governors ing the amount thereof on its books to the above provided." of the Federal Reserve System on the dates as 1120 6/24/49 -18of the Letter to the Honorable John L. Rankin, Chairman C°112mittee on Veterans' Affairs, House of Representatives, reading 48 follows: 8, 1949, "This is in reply to your letter of June R. 2436 H. bill requesting comments with respect to the 1944. of to amend the Servicemen's Readjustment Act Veterans' "Under this bill, the Administrator of 1952, to purAffairs would be authorized until June 30, 501 of the Serchase home loans guaranteed under section provided that, among vicemen's Readjustment Act of 1944, they would Other conditions, the sellers certified that the sales to the recommit amounts equal to the proceeds of not over 4 per making of new loans to eligible veterans at be authorized cent interest. The Administrator also would direct loans to until June 30, 1951, to make 4 per cent from private lendveterans unable to obtain GI home loans Secretary of the ing sources at that interest rate. The to $800,000,000 for Treasury would be directed to provide up direct loans, the purchase of loans, and $500,000,000 for available each fiscal With specified limits on the amounts section 505(a) of Year. In addition, the bill would repeal which authorizes the Servicemen's Readjustment Act of 1944, ntee second guara the Administrator of Veterans' Affairs to ng Act to Housi National mortgage loans, and would amend the n should iatio Assoc provide that the Federal National Mortgage lj per bearing over Purchase no GI loans and no other loans cent interest. to make more cre"The proposed legislation is designed terms to finance dit available to veterans on very liberal between old the purchase of homes. It makes no distinction essentially and new houses and, therefore, is not designed the established to promote new construction. Departing from insurance of loans to Practice of Government guarantees and proposal would set a facilitate the purchase of homes, this loans to veterans Precedent by authorizing direct Government large percenfor this purpose. It might be expected that a purchase price loans, tage of the direct loans would be full such legislation and it would appear that, in other respects, homes without of ase purch might give further impetus to the down payments. the desire of veterans "The Board is fully sympathetic to ting veterans to assis to acquire homes and to a policy of 6/24/49 -19- "obtain needed financing on a sound basis. It believes, however, that the interests of veterans are not served by a liberalization of credit for housing at high prices, Which encourages them to assume excessive financial burdens which they may not be able to carry. By authorizing the extension of a large amount of Government mortgage credit, this proposal would tend to delay desirable readjustments in building costs and housing prices. With present credit Inflated prices, the liberalization of housing e default. ultimat of alities carries with it greater potenti Budget the that of Bureau "We have been advised by the on report the this of it has no objection to the submission bill H. R. 2436." Vardaman Approved unanimously, Mr. to letter not voting, together with a or Direct Jr., the Honorable Frank Pace, as reading , Budget of the Bureau of the follows: addressed by "There are enclosed copies of a letter , Chairman Rankin the Board today to the Honorable John L. of House the Of the Committee on Veterans' Affairs of on report a for Representatives in response to a request stment Readju men's the bill H. R. 2436 to amend the Service Act of 1944. with the re"This report is substantially identical of April date port made by the Board to your office under the to as Y, 1949, in response to a request for advice 686. S. and Board's views concerning the bills H. R. 2436 an Chairm The last paragraph of the enclosed letter to telephonefrom your ankin is based upon advice received by °ffice." Federal Reserve Bank Letter to Mr. Caldwell, Chairman of the Of 44nsas City, reading as follows: Federal Re"In the last report of examination of the serve Bank of Kansas City, it was noted that Mr. W. A. Alexander, who was appointed by the Board of Governors as a director of the Denver Branch, is reported as being a direcColorado. °I* of the Denver National Bank, Denver, g to branches of relatin "As you know, the regulations branch directors that l Federa Reserve Banks provide in part 6/24/49 -20- "appointed by the Board of Governors shall be persons who are not primarily engaged in banking and preferably are not directors of banks, although they may be stockholders. "Inasmuch as Mr. Alexander's term expires on December 31, 1949, the Board will interpose no objection to his continuing to serve as a director of the Denver Branch for the a remaining portion of his term while also serving as event that director of the Denver National Bank. In the Board the will similar situations should arise in the future that ration conside order in y promptl appreciate being advised of the matter will not be delayed." Approved unanimously. National Archives, Letter to Mr. Wayne C. Grover, Archivist, The /1111ehington 2, D. C., reading as follows: prepared on "Attached are four lists in duplicate requesting authority National Archives Forms 8, 40, and 108 to dispose of the records listed thereon. respectively to "The requests on Forms 8 and 40 apply, currency appliaccumulated material covering gold export and Reserve Federal catiors and export licerses (1917-1918) and These Bank organization committee records (1913-1914). records are not of a continuing nature. applies to re"One of the requests submitted on Form 108 and records Ports of examination of the Federal Reserve Banks members, or which relating to State banks that are no longer in the Federal Reapplied for but did not complete membership, destroy accumuto ty authori serve System. This request is for tion destruc for ty authori lated records and for continuing on Form request other The according to the schedule proposed. 107, and 108 covers records on Board of Governors Forms 10 and Dividend ReCondition of Member State Banks and Earnings purpose of Ports of Member State Banks, respectively. The the this request is to reduce from ten years to five years records. destruction schedule applicable to such destruction a"nmfor "Samples of the material proposed Pany the respective lists and samples of the films which have ted herewith for been made of the several records are transmit t)ur examination. The samples of material are for retention by Yoli, and we shall appreciate your returning the films to us after they have served their purpose. 1123 6/24/49 -21- "Some of the records referred to in the attached lists are confidential and, inasmuch as the rest of the material listed does not have a sufficient volume to justify its sales as waste paper, it is felt that all of the records should be incinerated, It will be appreciated if you will review the material and inform us when a decision is made with respect to the proposed authorization for destruction." Approved unanimously. Proved: Chairman.
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