The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
411 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, March 13, 1952. The Board met in executive session in the Board Room at 10:00 a m .. PRESENT: Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Evans Mills Robertson At the conclusion of the executive session Mr. Carpenter, Seereta, and Mr. Allen, Director of the Division of Personnel Adminis- trat;_ 4.un, were called into the meeting. Consideration was given to a memorandum dated March b, 1952 the Division of Personnel Administration in which it was stated that Robert N. Manatt, Assistant Federal Reserve Examiner, had beela called into the military service and that, since he had worked the Board for less than a year, he would be entitled under the 8°azdts established policy to payment of something less than one month's or 4417. that to The memorandum recommended, for the reasons stated therein, the B__ r oa d approve the payment to Ir. Manatt of an amount equal filll rionth is salary, or $281j.lÔ. After discussion, the recommendation was approved unanimously with the understanding that the Board would review its policy of giving benefits to employees which other Government departments and agencies are not authorized to Provide, and that for the use of the Board in that connection Mr. Allen would prepare a statement of special employee benefits that have been approved by the Board. 3/13/52 -2Reference was then made to a memorandum dated March 41 1952 the Personnel Committee, recommending the appointment of Mr. eclela Puckett, Dean of the College of Business Administration of the UlltliersitY of Denver, as a Class C Director of the Federal Reserve Ballac of Kansas City for the unexpired portion of the term ending ilecember 31, 1953, to succeed Mr. Robert L. Mehornay, if it were ascertained that Mr. Puckett would accept the appointment if tendered. The '1014orandum also recommended that Mr. Puckett be appointed Deputy Chair49110f the Bank for the remaining portion of the year 1952. The memo4111141 4.urther recommended that Mr. Aksel Nielson, President of the Title Guaranty Company of Denver, be appointed a Director of the Denver Branms for the unexpired portion of the two-year term ending December 31, 1953 1 60 succeed Mr. Puckett, if it were ascertained that Mr. Nielson would acceP'. the appointment if tendered. The recommendations of the Personnel Committee were approved unanimously. Before this meeting there had been distributed among the members °t the Board a memorandum dated February 21, 1952 from a staff committee 81thl11itting a plan for the creation of a centralized messenger servtee 4 the Division of Administrative Services to serve the Board's Ntte The proposed arrangement, adoption of which was recommended by the acnnel Conirnittee in a memorandum dated February 27, 1952, ' el M3/52 _3_ Contemplated that it would take effect as soon as the Division of istrative Services, in cooperation with other divisions of the 8t4ff, was able to work out the details, and that at that time the f°11."ing transfers of employees would be made: Proposed Transfer of Following Messengers to Division of Administrative Services Name gatrard L. Hargett 11041 H. Hanley Venclq O. Jeffries ./11111es Harvie Newton Qamie Reed 4sse D. Smith A. Bates aui Edward Hardy .„1,1-:Lliam H. Drake a.00ert Piper ? 1)ales V. ,."4-0-184a E. Carey Pinn ".• Thalley Title Messenger Messenger Messenger Messenger Messenger Clerk—Messenger Messenger Messenger Messenger Messenger Messenger Messenger Messenger LLa 3,032 2,792 3,032 3,032 3,350 2,632 2,952 3,032 3,032 2,792 3,032 2,712 Present Division Legal Legal Research & Statistics Research & Statistics Research & Statistics Research & Statistics International Finance International Finance Examinations Examinations Bank Operations Bank Operations Selective Credit Regulation . Proposed Transfers Within Division of Administrative Services kr -es 11. Norris D. Rogers Operator, Duplicating Devices Messenger, Board Room 44Eua Page 4 IlrarY ltertae Page O Hughes Page be'absorbed in Board's staff as vacancies occur wotad sotto $3,660 3)230 2,500 2,500 2,500 In the discussion of the proposed plan it was stated that it need close supervision at least in the initial stage, that while adiustments in the centralized messenger force might be necessary 3/13/52 in the light of experience and it would take some time to make the lie/reYstem work with full efficiency, there was reason to believe that it could be made to work satisfactorily with a savings in manpower. The creation of the centralized messenger force in the Division of Administrative Services and the transfer of employees, as above set forth, were approved unanimously to become effective as soon as the necessary details could be worked out by the Division of Administrative Services. In taking this action it was understood that such changes would be made in the arrangement as were shown by experience to be desirable. Thereupon, Mr. Allen withdrew from the meeting and the followmembers of the staff entered the room: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mi. ketbe Sherman, Assistant Secretary Thurston, Assistant to the Board Riefler, Assistant to the Chairman Leonard, Director, Division of Bank Operations Vest, General Counsel Young, Director, Division of Research and Statistics Youngdahl, Chief, Government Finance Section, Division of Research and Statistics Leach, Economist, Division of Research and Statistics Thomas presented a report of developments in the Government ties market and recent changes in loans and deposits of reporting 11 banks, which was followed by a brief discussion. 3/13152 -5At this point all of the members of the staff with the excep- tion of Messrs. Carpenter and Sherman withdrew, and the action stated vith respect to each of the matters hereinafter referred to was taken blithe Board: Minutes of actions taken by the Board of Governors of the 4deral Reserve System on March 12, 1952, were approved unanimously. Memorandum dated February 15, 1952, from Mr. Young, Director, Division of Research and Statistics, recommending that David L. Grove, Chief, Latin American Section, Division (ItIllternational Finance, be transferred to the Division of Research and Statistics as Economist, with no change in his Preeatt basic salary of $9,800 per annum, effective as of the Ute -Pon which he enters upon the performance of his new duties. Ilesleincrandum also stated that the Division of International Finance vaa -greeable to this transfer. Approved unanimously. Memorandum dated March 7, 19520 from Mr. Marget, Director, n of International Finance, recommending the appointment of 4ar1 Houser as Chief, Latin American Section, in that Division, 04 ate mporary indefinite basis, with basic salary at the rate of koor , Per annum, effective as of the date upon which he enters upon 41c; 3113/52 -6- the performance of his duties after having passed the usual physical examination and subject to the completion of a satisfactory employment investigation. Approved unanimously. Memorandum dated March 11, 1952, from Mr. Bethea, Director, Division of Administrative Services, recommending the appointment r Shirley S. Corbin as Charwoman in that Division, on a temporary balls for a period of two months, with basic salary at the rate of $21420 per annum, effective as of the date upon which she enters 11P°11 the performance of her duties after having passed the usual PhOlical examination and subject to the completion of a satisfactory elliPloyment investigation. Approved unanimously. Memorandum dated March 5, 1952, from Mr. Marget, Director, of International Finance, recommending the appointment of Ives IR_ ' 4roni as Economist in that Division, on a temporary indefilaite baais, with basic salary at the rate of $7,040 per annum, etreeti -ve as of the date upon which he enters upon the performance duties after having passed the usual physical examination 141ellbiect to the completion of a satisfactory employment 1411atigati0n. Approved, Mr. Robertson not voting. " 3/13/52 -7Letter to Mr. Watson, Vice President, Federal Reserve Bank Of Richmond, reading as follows: "In the light of the circumstances described in Your letter of March 11, 1952, the Board of Governors approves the payment of a special differential, in addition to base salary, of $480 per annum to the supervisory personnel of the Night Transit Force and a special differential, in addition to base salary, of $360 per annum to all other employees on this force." Approved unanimously. Letter to Mr. Patterson, Vice President and General Counsel, ?eclel'al Reserve Bank of Atlanta, reading as follows: "This refers to your letters of February 20 and cps 1952, with respect to the question whether the rtablishment of a branch by the Metairie Savings ank & Trust Company, Metairie, Louisiana, about one lid one-half miles from its present location in 5ferson Parish, a suburban section of New Orleans, outside the city limits, would affect its eligibility for membership in the Federal Reserve System. "The answer to your question depends upon an int erpretation of section 5155 of the Revised Statutes Z! the United States as applied to State member banks section 9 of the Federal Reserve Act. Under this :4atute a State member bank in Louisiana may not es.11!blish a branch loutside of the city, town, or vil4-ne in which it is situated unless it has a paid-in Itrid unimpaired capital stock of not less than $500,000.1 : 13 the Metairie Savings Bank&Trust Company has capiZal stock of $252,2251 as shown by its statement of 2ndition of December 31, 1951, it could not qualify ' cTcler this provision of law if the branch is located ,utside of the city, town, or village in which the bank 4-8 Situated. 411 3/13/52 -8- "It is understood that the Metairie Savings Bank gc.Trust Company and the proposed branch will be located Inthin the same unincorporated area of Jefferson Parish, and that, from personal inspection, you are of the opinion that the place of the bank and the place at which it wishes to establish the branch lie in one and the same community. This view seems to be supported by the maps enclosed with your letter. In the light of this information, the Board is of the opinion that the $500,000 capital requirement would not be applicable to the establishment of this particular branch and that, therefore, the establishing of such branch would not affect the bank's eligibility for member„71111). However, the adequacy of the bank's capital 'las not been considered and would, of course, be l'eviewed should the bank apply for membership in the Federal Reserve System.” Approved unanimously. Letter to Mr. Millard, Vice President, Federal Reserve Bank Of 'all Francisco, reading as follows: "This refers to your letter of February 29s D952, concerning the classification for purposes of "egulation X.of a loan with respect to a parcel of r?al property on which there is a residence conelructed before August 3, 1950, and a nonresidential at °re building which is new construction under the regulation. You state that it is your Bank's undertha! the respective values of the two struc' 11res are approximately equal and that their location Z11. the property is such that the possibility of separai°n in the case of resale would be remote and unlikely. "In accordance with the applicable principles 4. 8 44ted in the Board's letter of March 6, 1951, S-1276 735), we agree with you that the entire property : 0 ' h °11.1d be considered 'real property on which there is -" construction.? The question is whether subsequent 3/13/52 —9— "financing with respect to the property should be treated as (1) residential credit, (2) nonresidential credit, or (3) a mixed purpose loan. "IYa perhaps will recall referring a similar question to the Board with your letter of August 23, 1951. In accordance with the principles stated in the Board Ts reply of September 11, 1951, subsequent financing With rcspect to the property should be treated as an extension of credit for mixed purposes. An appropriate Portion of the land value should be allocated to each structure in determining the maximum loan value of each P°rtion of the mixed purpose credit extension." Approved unanimously.
@FedFRASER