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933 A meeting of the Board of Governors of the Federal Reserve System h.,, -Lct in Washington on Thursday, June 8, 19L41 at 10:?,0 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Leonard, Director of the Division of Personnel Administration ALSO PRESENT: Messrs. G. C. Brainard, R. E. Klapes, F. F. Brooks, B. R. Conner, H. B. McDowell, G. D. Crabbs, T. E. Millsop, and A. Z. Baker, directors of the Federal Reserve Bank of Cleveland MII* Brainard, as chairman of the board of directors of the Federal 4, Bank of Cleveland, stated that when the request was made for this w with the Board the directors had decided upon a person whom they be PlsePared to appoint, iAth the approval of the Board of Governors, hIN ent of the Federal Reserve Bank of Cleveland, but that this per— rPersonal the th plans had changed since that time and he would not be avail— or the position. As a result of that development, Mr. Brainard said, Ilectors had no program to present at this time, but it was thought fc)r the personnel committee of the board of directors, and such tot a cill'etors of the Cleveland Bank as could join, to meet with the Board h, -Lscussion of the situation. He also stated that since the meet— th ZZ31 e the Board on February 4.943 Personnel committee of the directors with 'the directors had considered a long list of possible appointees, of wh °r11 had worked out, and that the directors would like to have a 934 6/844 —2— tree arid franK discussion of the matter with the Board. Mr. Klages, as chairman of the oersonnel committee of the board of cltreet°") stated that his committee had Fiyen the matter a great deal of th°11ght and had definite conclusions with respect to the type of man they 118111c1 like to have at the head of the Bank, that the directors felt that 111'4 ' ''tErall1L.' had done an excellent job in operatinf- the Bank hut had lacked 4reeight Itr'liays develoninF official personnel, that the time miFht come when would be qualifi-d to fill the position, that Mr. Kossin, Vice Neident in charge of the Pittsburgh Branch, was also developing very rap— -4 'and that therefore the directors were faced with the problem of find— meone who could serve for a period of seven to ten years, who would be 4Neable to the banks of the District, and who was of a calibre to bring the NIrth Di strict up to the place where it should be without adversely affect— the Morale of the official perscnnel of the Bank. He added that the com— t1414e had considered a great number of possibilities which had not worked becallse the position was not sufficiently attractive or because of a Illeqion whether a particular individual would be satisfactory. l(r. Brainard stated that President Fleming wanted to leave the Bank Pte er lc -L.), 1944, but that he might be persuaded to remain beyond that 4%. that were tb 3 thought necessary. There was general agreement, however, MI, e it was known throughout the District that Mr. Fleming had made to leave, his successor should be chosen as promptly as possible. 4r, 4 Brooks inquired whether the Board would have any objection to the (404 ot an outstanding industrialist who had all of the qualifications 935 6/8/44 bq-ieved to be necessary for the nosition of President of the Bank except that he had not had any commercial banking experience. When asking this Illeation, Mr. Brooks sd he had in mind one of the present directors of the Federal Reserve Blnk of Cleveland. This question was discussed, and t!itleirthers of the Board indicated their feeline that no prescribed pattern c°1aci be established bY which a selection could be determined in any oarticlar ease and th7,+, all of the circumstances would 're:ye to be considered Pnd the best man selected i-n the lirTht of those circumstances. It was inr_'icPi%ed tht, the lack of benkin,g experience would not be a bar to approval by the although Mrt4leextthe McKee expressed his feeling that, because of the impor- Federal Reserve Banks from an operating standpoint, someone 11c3111.(1 be selected who had had commercial being experience. The suggestion q80 made that, in the interests of the career system which was beie:, t°',3treci amonr, e the Banks, it was of great importance, whenever the best insyotem viould th be served by the selection of someone within SY.te 111, that that be done. • Liillsop inquired whether there would be any objection, if Mr. ?I Were unvrilling to continue for a further period, to leaving the p0f Pr esident vacant until a satisfactory appointment could he made. Nyt 0 111 *b Ransom referred to the importance of the position of President, the standpoint of the operations of the Federal Reserve Bank t ° the standpoint of the service of the Presidents as members of 11 pe der') n VPen Market Committee, and expressed the opinion that the CleveWhich was one of the larq,er Banks in the System, should not be 936 6/a/44 With°tit a President durin- the period ahead when the System would be faced With a number of important problems. The other members of th‘.? Board were c' "want with the position expressed by Mr. Ransom. ? • In response to a further question by Mr. Millsop as to whether Mr. e0414 be continued on a month-to-month basis if he were willine to (1° the members of the Board stated that they would prefer that arrange 14e4 to °Ile in which the position of President would be left vacant. to 4 gerieral discussion followed of various individuals who had beer 118iciered b y the directors for the position of President of the Cleveland 44k At the conclusion of the discussion th- meetin: adThqrned with the INeretancti_ g u that the Cleveland directors would hold a separate meeting ci that, if desirable, another joint meeting would be held. _thaitti20 : Vice Chairman.
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