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248 A meeting of the Board of Governors of the Federal Reserve 8:Mem was held in Washington on Saturday, March 1, 1941, at 10:45 a on. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Davis Draper Mr. Morrill, Secretary Chairman Eccles reported that he had advised General Watson t the White House of his desire to have an opportunity to give the ?Ilesident the facts regarding the situation relating to the appointnient Of a President at the Federal Reserve Bank of Chicago before °thel's attempted to discuss the matter with him. At 10:50 a.m. Mr. Szymczak brought Walter J. Cummings, ellairl4an of the Continental Illinois National Bank and Trust Company °f Chicago and a class A director of the Federal Reserve Bank of Ch 0) into the meeting and there ensued a lengthy discussion of ' the clreumstances surrounding the presentation of Mr. Schramts name to tt. "directors of the Chicago Bank, the relation of a President of Pederal Reserve Bank to the Bank and the Board of Governors, the 44t/ille of the joint responsibility of the board of directors of a Fecie ral Reserve Bank and the Board of Governors in his selection, 44(1 the necessity for consultation between the directors and the members of the Board in making the selection. 249 3/3A1 -2The point was also brought out that notwithstanding the tact that Mr. Szymczak had obtained commitments from Messrs. Wood ' 1 ClImmings when he was in Chicago last summer and fall that be84 anything was done with respect to the selection of a President c't the Bank the matter would be taken up with the Board of Govern°1"8, that procedure had not been followed and that, when Mr. 823TIzczak was unable to get Mr. Cummings or Mr. Lewis to confer on the matter, arrangements had been made with Mr. Gregory, Deputy Chairman of the Bank, to have the executive committee come to Washfor a conference to which all of the other directors were invita e-. The names discussed at the conference of the executive coMmittee with the Board were also reviewed. Following further discussion of the next step to be taken t4 cvnnection with the matter, during which Mr. Davis left the keet ing, Mr. Gregory was cPlled on the telephone and arrangements Were made for him and Mr. Cummings to meet at the Union League eillb at 2:30 p.m. on Sunday, March 2, for a conference. Chairman Eccles stated that Mr. Gregory was expected in t4ellilltton on Monday, March 3, and that the Board would discuss the 1161°1° matter with him at that time. During the course of the discussion Chairman Eccles reviewed the — 'uostance of his conversation on the previous day with Mr. Schram " 4 stated that Mr. Schram could clear up the situation, and that he 250 3nia -3- had --, opportunity to do so because of the Board's ruling that no election had been held which would enable him to say that he was t available, and he would not be subject to the embarrassment Ilhich would have existed had the Board refused to approve his apPointment. Mr. Cummings responded to Chairman Eccles' statement With the comment that he would take the matter up with Mr. Schram this afternoon. A memorandum covering in more detail the discussion with XIS has been placed in the Board's files. At this point Mr. Cummings left the meeting and the action Eltated With respect to each of the matters hereinafter referred to /las then taken by the Board: The minutes of the meeting of the Board of Governors of the Peder.,, Reserve System held on February 28, 1941, were approved ously. Memoranda dated February 26, 1941, from Mr. Morrill, Secre' l ecommending, for the reasons stated in the memoranda, that the f °11cIving increases be made in salaries of employees in the Secrth+ 8 Office, effective as of March 1, 1941: bme Rot it. *t W•Ri . eseberg les R. Ellison krclerl Ball elster B. Dampley Designation Accounting Clerk Clerk Stenographer Painter Approved unanimously. Salary Increase To From $1,500 1,500 1,560 1,740 $10800 1,800 1,620 1,860 251 -4— Letter to the Federal Reserve Bank of St. Louis, reading follows: "The Board of Governors approves the changes in the personnel classification plan of the Federal Reserve Bank of St. Louis and the Little Rock Branch as requested in your letters of February 21 and February 24, 1941." Approved unanimously. Thereupon the meeting adjourned. Secretary. APProved: Chairman.
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