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361 A meeting of the Board of Governors of the Federal Reserve System 174 held • _ . ln tashinEton on Wednesday, March 15, 1939, at 10:45 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Davis Draper Mr. Bethea, Assistant Secretary' Mr. Smead, Chief of the Division of Bank Operations Mr. Szymczak stated that the special committee appointee. by Chair— Eeca. 2 on Februnry 6, 1939, consisting of Messrs. Davis, Draper and 111.,Tnzoi f 'to give further study in consultation , ith members of the staff t° the Posribility of determining D satisfactory classification for use 4L44121c, t chmges in salaries of officers of Federal Reserve banks 1141 , '.-1-1Ten the mettr further consideration since the. informal meeting held M&-,rch 1979, end had er'reed on a report which was ready for ssion to the Board. 11°11. dated Mr. Szymczak thereupon read the committee's re- March 6, 1991 a copy of which has been nleced in the files. There was a full discussion of the committee's recommendations, at the conclusion of which, upon motion by Mr. Szymczak, the Board by unanimous vote accepted the report and ordered it to be filed among the official records of the Board, rith the under— standing that the special committee was discharged fld.thet the standards established by the report for Illaximum salaries to be paid officers of Federal Re— serve banks would be regarded as confidential end used as an informal guide in the consideration of such salaries in the future, and with the further 11/2,derstanding that the recommendations of the com— Tlttee would be discussed in executive session with °le Chairmen of the Federal Reserve banks at their text conference. It was also understood that the Board would re— view the informal standards thus established not 362 later than March 1, 1940, with the view to making such modifications as might appear necessary at that time in the light of its experience in dealing with this problem during the interim and to consider the advisability of adopting a permanent plan. At the suggestion of Mr. Szymczak the Board then gave consideration to the recommendations which had been submitted by the directors of the Federal Reserve Bank of Philadelphia and after further discussion, by unanimous vote, approved salaries for officers of the bank at the rates Specified below for the period April 1 to December 31, 1939, if established by the board of directors of the Philadelphia bank at those rates for the period stated: tIje Title ‘T. Drinnen A. Sienkiewicz Morris Salary Per .nnum 0_6,000 7,500 7,500 First Vice President Assistant Vice President Assistant Cashier Mr. Ransom reported that Mr. Williams, Assistant Counsel had ad11,1s ed him over the telephone that the Federal Deposit Insurance Coritian and the Board of Governors of the Federal Reserve System were both e xempted from reorganization in the bill reported out by the Sete sei ect Committee on Government Organization. He said that Mr. S had verified this information with Senator Byrnes and with the °trice of Senator Byrd. 4- Mr. Ransom then read the following excerpt from `'ommittee report on the reorganization bill (H.R. 4425): "The Board of Governors of the :tederal Reserve System was ! II exempted agency under provisions of the bill which passed 1;:lle Senate last year. The Board supervises the Federal Reserve all the stock of which is owned by the member banks of sYstem. The expenses of the Board are paid through assess41ents levied on the Federal Reserve banks and the funds derived tnks, 3e3 3/15/3g -3- "fra'al such assess-ants are not construed to be Government ilinds or appropriated moneys. Because of the private ownerinvolved in the Federal Reserve System and the fact that no Government funds are involved in defraying the exPenses of the Board, the committee feels that the Board Should not came within the scope of a reorganization act. "The Federal Deposit Insurance Corporation is added to the exempted agencies because as in the case of the Board () Governors of the Federal Reserve System, funds are de11-ved from assessment upon banks." * P '4Ils°111 inquired whether the members of the Board had any sugffestions t(3fliaLke as to what action, if any, should be taken in connection with this , -LeMslation at the present time. In response to Mr. Ransom's inquiry, the Other members of the Board indicated that they felt no action was called for at this time and it was unanimously agreed that no action should be taken. At 1:00 p.m. the meeting recessed and reconvened at 2:45 p.m. '41th t'Ile same attendance as at the morning session. Mr. Ezymczak stated that before proceeding to a discussion of the sel-Cry recommendations submitted by the Federal Reserve Bank of New Yor9 c°nsideration should be given to the question as to the date on which sai 4-ary increases that may be approved by the Board should become effectIve. Ira pointed out that in acting upon the recommendations submitted by ot e h-r Reserve banks the Board had approved salary increases to become ef rectiv'e on April 1, 1939, but that he wished to call the Board's atten"°r1 t0 the fact that the board of directors of the New York bank had , lsfled salaries for semi-monthly or monthly periods since January 1, elt the rates in effect as of December 31, 1938, in an effort to maint"Ilt heir position that the recomPndations submitted to the Board last 13 ,,a15 Or if and when approved, will be effective as of January 1, 1939. 364 3/15/39 -4After discussion, upon motion by Mr. Szymczak, the Board by unanimous vote decided that any salary increases approved at this time for officers of the Federal Reserve Bank of New York should become effective April 1, 1939. The Board thereupon gave consideration to the individual salary recommendations submitted by the New York bank and by unanimous vote approved salaries for officers of the bank at the rates specified below for the period April 1 to December Si, 1959, if established by the board of directors of the bank at those rates for the period stated: Title tlaen Sproul t•IY. K.noke a. id. Rice kthur Phelan IL tine Willis " :1,1 1eri` P. Sheehan lZtBurt O. e4 Douglas 4 10. Miller 414 Van Houten, Jr. 11°1'4ee Sanford 4, . P. Davis ?, kith Treiber 11, Pe rguson 1 8ilby First Vice President Vice President Assistant Vice President Assistant Vice President AFsistant Vice President and Secretary Assistant Vice President Manager, Bank Examination Department Manager, Accountinp. Department Manager, Bill Department and Collection Department Manager, Securities Department Manager, Security Custody Department Manager, Research Department and issistant Eecretary Manager, Security Loans Department Manager, Bank Relations Department Assistant Counsel Assistant Counsel General Auditor Assistant General Auditor In connection with the salaries of officers of the New York bank, the Board disapproved by Salary Per annum ,20500 20,000 14,000 10,000 9,000 11,000 13,000 7,500 7,500 7,000 7,500 7,000 7,000 6,000 7,200 6,600 10,000 6,000 365 3/1s/39 unanimous vote the salary increase recommended by the board of director c of the bank for Mr. Rounds. Thereupon the meeting adjourned. /1,7sistant SecrAar.7..
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