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A meeting of the Board of Governors of the Federal Reserve SYErtem NRS held in Washington on Friday, June 6, 1941, at 11:00 a.m. PRESENT: Mr. Ransom, Vice Chairman Mr. Draper Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary The action stated with respect to each of the matters herein- atter referred to was taken by the Board: Telegrams to Messrs. Sanford, Post, and Hays, Secretaries of th epederal Reserve Banks of New York, Philadelphia, and Cleveland, resPectively, Mr. Leach, President of the Federal Reserve Bank of ittehill°11d, Messrs. Dillard and Stewart, Secretaries of the Federal ReN*7e Banks of Chicago and St. Louis, respectively, Mr. Ziemer, Vice Pre„. *31dent of the Federal Reserve Bank of Minneapolis, and Mr. Hale, SecrA4, --.a7 of the Federal Reserve Bank of San Francisco, stating that the t card approves the establishment without change by the Federal Re%Ire Bof St. Louis and San Francisco on June 3, by the Federal 'ye Banks of New York, Cleveland, Richmond, Chicago, Minneapolis, 8. 41d SA„ -" Francisco on June 5, 1941, and by the Federal Reserve Bank of clelphia today, of the rates of discount and purchase in their ekiatir, -,g schedules. Approved unanimously. Memorandum dated June 5, 1941, from Mr. Nelson, Assistant e e4._ ' 45-177, recommending (1) that Kermit E. Shock, page, be promoted to t, 'e position of clerk in the Secretary's Office on a temporary 6/6/4i for an indefinite period and that his salary be increased from the rate of A1,260 to A1,440 per annum, effective June 16, 1941, and (2) that Marion E. Wright be appointed as a page in the Secretary's Office on a temporary basis for an indefinite period, with salary at the rate of A1,260 per annum, effective as of the date upon which he ellliers upon the performance of his duties after having passed satisl'Ic'torilY the usual physical examination. Approved unanimously. Memorandum from Mr. Nelson, Assistant Secretary, submitting the, esignation of J. Floyd Cannon as a guard in the Building Operation ' 141(1Maintenance Section of the Secretary's Office, to become effective ae of the close of business on June 18, 1941, and recommending that the resignation be accepted as of that date. The resignation was accepted. Letter dated June 5, 1941, to M. Ruml, Chairman of the FedReserve Bank of New York, reading as follows: "Your letter of June 2 in regard to the salary arrangement with John H. Williams has been brought to the attention of the members of the Board and I have been reauested to advise you that the action of the Board set 1?rth in my letter of May 29 is modified in accordance the request in the second paragraph of your letter eliminating the qualifying understanding that Mr. "Illiams will spend two days a week at the Bank and that the salary paid to him by the Bank will be at the .1:4e of one-third of his regular annual salary. With 111s modification, the Board approves the payment to Mr. ,1,. "llliams of salary for the month of June 1941 at the rate °f 22,000 per annum. 6/6/41 -3- "It is understood that you are to get in touch with Chairman Eccles and Mr. Szymczak some time during this month in order to work out a salary program for Mr. Willlems that will be approved by the Board of Governors." Approved unanimously. Letter to the board of directors of "The Genoa Banking Company", Gen°a, Ohio, stating that, subject to conditions of membership numbered It() 3 contained in the Board's Regulation H, the Board approves the ' application for membership in the Federal Reserve System and fe'ra the appropriate amount of stock in the Federal Reserve Bank of eleiTeland. Approved unanimously for transmission through the Federal Reserve Bank of Cleveland. Letter to the board of directors of the "State Bank of Francis Creekft (3fille the / Francis Creek, Wisconsin, stating that, subject to conditions mbershiP numbered 1 to 3 contained in the Board's Regulation H, Board approves the bank's application for membership in the FedReserve System and for the appropriate amount of stock in the Ped,„ Reserve Bank of Chicago. Approved unanimously, together with a letter to Mr. Young, President of the Federal Reserve Bank of Chicago, reading as follows: "The Board of Governors of the Federal Reserve Sysapproves the application of the 'State Bank of Francis Francis Creek, Wisconsin, for membership in the t'ederal Reserve System, subject to the conditions prescribed in the enclosed letter which you are requested 6/6/a -4- "to forward to the Board of Directors of the institution. wo copies of such letter are also enclosed, one of which is for your files and the other of which you are requested to forward to the Commissioner of Banking for the State of Wisconsin for his information. "Apparently the bank is under a commitment to the F.D.I.C. to increase its common stock by 10,000 by means Of a stock dividend, and toward that end a reserve for dividends payable in common stock in the amount of $7,500 has been established. It is assumed that the Reserve Bank will, of course, see to it that the agreement With the F.D.I.C. in this connection is carried out, and It is understood that the management has it in mind to effect the increase at the next annual stockholders' meeting. "According to the letter dated May 6, 1941, from the .1pervising examiner for the F.D.I.C., during a recent S1 iscussion regarding an application for permission to re)7,000 of the R.F.C. debentures, the cashier of the Dank asserted that a representative of the Reserve Bank stated in the presence of the discount committee of the aPPlicant that if the bank were a member of the Federal R'serve System there would be no question about the retirement at this time of the entire P,17,000 Class A debentures outstanding. It is understood, however, that !the statement referred to does not correctly represent the position taken by your representative and that the Reserve Bank has made no commitments to the bank in this connection. The presentation memorandum accompanying the al?plication contains assurances that, if the bank is ad!altted to membership, applications for retirement of deb?ntures will be considered strictly upon their merits and With full regard for the necessity of maintaining adequate capital. "It is highly regrettable that the Supervising Examiner was given a wrong impression as to the Reserve Bank's Posltion in the matter and it is suggested that, if it has not already been done, you write him in the endeavor to correct the impression, and that you send the Board a copy of the letter." T Letter to the board of directors of the "State Bank of Fox take,, Fox Lake, Wisconsin, stating that, subject to conditions of 6/6/4i "erehip numbered 1 to 3 contained in the Board's Regulation H, the 13(LI'd approves the bank's application for membership in the Federal Reeerve System and for the appropriate amount of stock in the Federal lieserve Bank of Chicago. Approved unanimously for transmission through the Federal Reserve Bank of Chicago. Letter to the board of directors of the "Du Quoin State Bank", D4 , Q11°111, Illinois, stating that, subject to conditions of membership nt1Mbe red 1 to 3 contained in the Board's Regulation H and the following 8Aeciel. condition, the Board approves the bank's application for mem,bersu, "4-1)in the Federal Reserve System and for the appropriate amount of ck in the Federal Reserve Bank of St. Louis: "4. At the time of admission to membership such bank shall have a paid-up and unimpaired capital of not less than $100,000." Approved unanimously for transmission through the Federal Reserve Bank of St. Louis. Memorandum dated June 5, 1941, from Mr. Thomas, Assistant Diof the Division of Research and Statistics, referring to the 4tion taken the printing at the meeting of the Board on May 15 in connection with of 5,000 copies of the base book of "Banking and Monetary 8te't1stice. The memorandum stated that Messrs. Morrill and Thurston, " 41 4". Thomas (acting for Mr. Goldenweiser) had agreed that a price $1.50 a copy should be charged for the book; that since the purl) f the book was to make available in convenient form statistics 702 6/6/41 which previously had been supplied without charge, it seemed reasonable for the Board to bear a part of the initial printing cost of 2.60 Per copy; and that in addition to the 5,000 cloth-bound copies authorized by the Board, it mould be desirable to have printed 3,000 141bOtincl and for copies at about 40 cents each to be available for clipping meeting requests for specific statistics. The printing of 3,000 unbound copies of the base book was approved unanimously, with the understanding that the appropriate budget item would be increased by the amount of the additional cost. Thereupon the meeting adjourned. PrOAAA--c-C Secretary. Aph, : eatilred Vice C airman.
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