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901 A meeting of the Board of Governors of the Federal Reserve listem was held in Washington on Monday, June 4, 1945: at 2:00 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans Mr. Carpenter, Assistant Secretary Mr. Goldenweiser, Economic Adviser, Division of Research and Statistics Mr. Thomas, Director of the Division of Research and Statistics Mr. Gardner, Chief, International Section, Division of Research and Statistics At the beginning of the meeting Mr. Thomas B. McCabe, Army and lla\rY crni 1-u.--,-dati011 Commissioner, was present and discussed informally th th e members of the Board a draft of regulations, which were in %tirse °II preparation by his office, covering the disposition of sur— °Ala vroperties of the United States held abroad. T he'rnas, At the conclusion of the discussion Messrs. McCabe, Goldenweiser, alld Gardner withdrew from the meeting. The action stated with respect to each of the matters herein— referred to was then taken by the Board: Ncierel The minutes of the meeting of the Board of Governors of the Reserve System held on June 2, 1945, were approved unanimously. Me t4 4.vi morandum dated June 1, 1945, from Mr. Thomas, Director of of Research and Statistics, submitting the resignation tt anor ttve aa M. Esser as a library assistant in that Division, effec— of the close of business on June 20, 1945 and recommending 6/4/45 —2— that the resignation be accepted as of that date and that appropriate Pa rment be made for the accumulated and accrued annual leave remaining to her credit at that time. The resignation was accepted as rec— ommended. Letter to Mr. Caldwell, Chairman of the Federal Reserve Bank Of nsas City, reading as follows: a . "The Board of Governors approves the payment of sal— les to the officers of the Federal Reserve Bank of Kansas iltY: and its Branches effective June 1, 1945, at the fol— e.°I'ang rates which are the rates fixed by your Directors, 8 submitted with your letter of May 12, 1945: Ne Annual Salary Title G. Leedy $20,000 President Ici!nr7 0. First Vice President 15,000 Koppang Caries O. Hardy 12,000 Vice President • 'N. toolley Vice President and Cashier 11,000 hn P hillips, Jr. Vice 9,600 President A. Gregory Assistant Vice Pres— B. P. 7,200 ident T Assistant 7,200 Cashier 11.17 Yn" E. Park Assistant Cashier 7,000 • U. Sherman 5,500 Assistant Cashier • Bruce Robb Manager, Statistical C. 6,600 Division E. Sant. 6,600 Auditor 4,! 4,800 Assistant Cashier '1-4111/' Alexander BRANCH e° Ii. rge H. Pipkin 10,000 Vice President L. el Stempel 4,800 Assistant Cashier G. Duck Assistant Cashier 4,000 Zi lji ireO r p.CZ , BRANCH 8,500 Vice President L. "tL. , -4. B. Mathes 6,000 Cashier Davenport 4,800 Assistant Cashier Fritz 4,800 Assistant Cashier °AMA BRANCH 11.1% E'arhart 10,000 Vice President "c414 K. U. 5,000 Friedebach Cashier ,&1 4,800 Assistant Cashier P. Doran 4,000 Assistant Cashier j ? . 1 4 903 6/4/45 —3— "It is noted from your letter that Mr. S. A. Brown, Cashier, Denver Branch has resigned effective June 30, 1945, and that Mr. P. H. Larson has been appointed to succeed him. "Accordingly, the Board of Governors approves the 13aYment of salaries to Mr. Brown as Cashier, Denver Branch, his present rate of $5,700 per annum for the month of Itine 1945 and to Mr. Larson as Cashier of the Denver Branch the rate of $5,000 per annum, effective July 1) 1945, the rat e fixed by the Board of Directors. The Board notes that you have been instructed by Y°ur Directors to take up with the Board again the matter :LITrere4ses in the salaries of Mr. Leedy as President, Koppang as First Vice President, and that you : .11tend to do so within a short time when you will also ccquaint the Board with the views of your Directors con— Preei,the establishment of a new ceiling for the vice sidents in charge of the branches, and of the action Your Board of Directors desires to take in that con— nection. in 4..."In your letter of May 12, you refer to the fact that cit ' lxing the salary of Ur. Mathes, Cashier of the Oklahoma wo, 'Branch at $6,000, it was overlooked that since this pe"J-d involve the discontinuance of the supplemental corn— now being paid at the rate of $156 per annum, the num Proposed increase would actually be only $144 per an— a. 8 . 11-C1 ask the Board to indicate whether it would approve tor,„"LarY for Mr. Mathes of $6,300, if voted by the Direc— salary of $6,300 would result in a net increase of 44 as compared with the original intent of an increase 1945 - However, the Board approves, effective June 1, arid salary for Mr. Mathes at any figure between $6,000 adiri:)300, inclusive, which your directors may fix. Please arv '7, the Board if any change is made in the proposed sal— " °t, $6,000 for Mr. Mathes. recliii It is believed that the increase for Mr. Robb will lati're certification under the salary stabilization regu— t0 41 8 and, accordingly, his salary is approved subject the receipt of an appropriate certificate in support of Frrease. t'ecto lj't is noted that the salaries as fixed by your di1945 are for the period June 1, 1945 to December 31, Kopp '4-nelusive, except the salaries of Messrs. Leedy and arig which are to continue at their present levels, 904 6/4/45 -4— action by your board and the Board of Governors. In 4./1 accordance with the established procedure of approving salaries for the regular salary year, the approval of sal— as given herein, except for the President and First Vice President whose salaries are approved to the expira— 'lon of their terms, February 28, 1946, is for the period ending May 31, 1946, if the directors extend the salaries at the same rates for the periods indicated. It is under— Stood, of course, that if for any reason, changes are appropriate before the expiration of that period, the e Board will consider such proposals whenever submitted." Approved unanimously. Te1egram to Mr. Peterson, Vice President of the Federal Reserve Louis, reading as follows: 1ln Doard extends to July 5, 1945, time within which Sbwitz City Bank, Switz City, Indiana, may accomplish mem— ership.11 Approved unanimously. r Letter to the Federal Deposit Insurance Corporation reading as lied "Pursuant to the provisions of section 12B of the or r'al Reserve Act, as amended, the Board of Governors Hari.I;le Federal Reserve System hereby certifies that the Of ttneen State Bank, Harlingen, Texas, became a member Federal Reserve System on June 1, 1945 and is now Fecit4 enaber of the System. The Board of Governors of the coll ; jetR rea eserve System further hereby certifies that, in with the admission of such bank to membership 141 the ie Federal Reserve System, consideration was given to tiori V-lowing factors enumerated in subsection (g) of sec— of the Federal Reserve Act: 1. The financial history and condition of the bank, 2. The adequacy of its capitn1 structure, 3. Its future earnings prospects, 905 6/4/45 -5-"4. The general character of its man5. 6. agement, The convenience and needs of the community to be served by the bank, and Whether or not its corporate powers are consistent with the purposes of section 12B of the Federal Reserve Act." Approved unanimously. Letter to Mr. James A. Garfield, Chief of the Surplus War Aircraft D. lvlsion, Defense Plant Corporation, Washington, D. C., reading as follows: 19) "Receipt is acknowledged of your letter of May 30, t45, regarding the possible effect of Regulation W upon sale by the RFC, acting through Defense Plant Corporat'of certain surplus war aircraft for which regulac4az alrea oty provide that they may be disposed of by ,a.ley lease, or instalment sale. .The class of aircraft to which you refer consists hair,fansport aircraft of 5,000 pounds gross weight or more rarl g a horsepower range of 450 to 2,400 with type prices soidgillg from $12,000 to $100,000 but some of which will be azic :(311 a price tag basis beginning at 3,900 after allowre made for conversion, overhaul and repair. You are lie that aircraft of 17,500 pounds gross weight and over or, °Primarily suitable for transportation of passengers crarZrg°es on principal commercial routes, and that air°f less than 17,500 but more than 5,000 pounds gross tili;"1' are primarily suitable for feeder lines and execu.''ransport uses. a.re ;The „ Regulation applies to 'instalment sales' which clill Ined as sales of 'any consumers' durable or semi' e good listed in section 13(a)' of the regulation. P004 .110te of the regulation reads as follows: 'The Executive Order defines "consimers' durable good" as including "any good, whether ti,?,17 or used, which is durable or semi-durable is used or usable for personal, family or household purposes, and any service connected 6/4/45 -6-""with the acquisition of any such good or of anY interest therein." Section 13(a) lists the consumers durable and semi-durable goods within the scope of the regulation.' 'It is the Board's opinion that the transport aircraft r,ferred to in your letter are not consumers' durable goods Illthni the meaning of this definition, and therefore are ret 'listed articles' within the scope of the regulation. °fleequently sales of such aircraft are not subject to the re gulation. f "As to the other class of aircraft to which you rer -- classified by you as 'personal type' -- the foreZg ,eln opinion would not appear to be applicable, and if p;:e7.are to be sold on terms more liberal than those now be°111ded by Regulation 1w, a change in the regulation would laj equired. are studying the application of the reguf, fn in this field and shall want to consult with you ner on this question." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks readEts j-0110WS: Am.,7 „ Inquiries have been received as to the effect of oe'Lunent No. 16 to Regulation Vi with respect to disasters clITTing before the effective date of the Amendment. mad 'In the opinion of the Board, no extension of credit me e after June 11, 1945, the effective date of the Amend..l1 be exempted by section 8(g) of Regulation 17 if the at° dlsaster occurred more than 6 months before the extenbet °f credit, regardless of whether the disaster occurred °re or after June 11, 1945." Approved unanimously. 30, /4emorandum addressed to the Board by Mr. Draper under date of 945, reading as follows: Secrete. '"e House Small Business Committee before which /7 Wallace testified on Tuesday, May 29 with 907 6/4/45 -7- "reference to medium and long-term credit has asked the ecretary if he could find out in general terms what had been the the Federal Reserve System with Section experience of 4 13-b loans since its inception to the present 41.ne. In view of the fact that Secretary Wallace is anx1°11s to reply, I am wondering if the Board would agree to a°Ine such general statement as the following: 'Since the enactment of Section 13-b in 1934 up to January 1, 1945, 20tw ithstanding the severe restrictions of that Section upon the terms and kinds of loans which could be made, e Federal Reserve System has made loans, commitments iand participations of approximately $525-million. After ti : ll11 charges for all expenses including overhead, etc., ;e record shows that the entire operation is in the black. TheI2 SYstan foresees no large amount of unsettled losses mach will materially alter this picture." The statement referred to in the memorandum was approved unanimously. Thereupon the meeting adjourned. As&stant Secretary. Chairman.
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