The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
422 A mteting of the Board of Governors of the Federal Reserve 8)r3tera Ilas held in Washington on Thursday, March 16, 1944, at 11:30 PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinatter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ?me_ ' 41 Reserve System held on March 15, 1944, were approved unanirti°11a1Y. Memorandum dated March 15, 1944, from Chairman Eccles, recomg that the basic salary of Elliott Thurston, Special Assistant to the Chairi, be increased from $130000 to $14,000 per annum, ef- teet4e March 16, 1944. Approved unanimously. Memoranda from Mr. Goldenweiser, Director of the Division of .„ ' 41reh and Statistics, recommending that the following increases in baaie 444ual salaries of employees in that Division be approved, effective „ 'Larch 16, 1944: 423 3/16/44 -2- Date of Name 3/13/44 3/14/44 Designation Miss Ruth Brooks Mrs. Ruth Jones Administrative Clerk Clerk-stenographer Salary Increase To From $1,800 2,400 $1,920 2,600 Approved unanimously. Memorandum dated March 15, 1944, from Mr. Goldenweiser, Director " he Division of Research and Statistics, submitting the resignation of / 11 4 Virginia P. Sassani as a clerk in that Division, to become effective 48 °f the close of March 19, 1944, and recommending that the resignation beacceptsid as of that date. The resignation was accepted. Letter to the board of directors of "The Citizens State Bank", w isconsin, stating that, subject to conditions of membership num- b.vreci to 3 contained in the Board's Regulation H, the Board approves ' the b 8 application for membership in the Federal Reserve System and tor, aPpropriate amount of stock in the Federal Reserve Bank of Chi eaeo. Approved unanimously, for transmission through the Federal Reserve Bank of Chicago. Letter to the "Miners and Merchants Savings Bank", Lead, South 41tota. reading as follows: "The Board is glad to learn that you have completed arrangements for the admission of your bank to the 'eral Reserve System and takes pleasure in transmitting he rftith a formal certificate of your membership. 424 3/16/44 —3— "It will be appreciated if you will acknowledge receipt of this certificate." Approved unanimously. Letter to "The Danbury National Bank", Danbury, Connecticut, Ile4cling as follows: "The Board of Governors of the Federal Reserve System has given consideration to your supplemental applica!:?-on for fiduciary powers, and, in addition to the auwlority heretofore granted to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates cf lunatics, grants you authority to act, when not in Contravention of State or local law, in any other fiduciarY capacity in which State banks, trust companies or ??her corporations which come into competition with naonal banks are permitted to act under the laws of the t ate of Connecticut, the exercise of all such rights A° be subject to the provisions of the Federal Reserve :,e_t and the regulations of the Board of Governors of 'ne Federal Reserve System. th "This letter will be your authority to exercise e fiduciary powers granted by the Board pending the eparation of a formal certificate covering such authorzation, which will be forwarded to you in due course." a r Approved unanimously. Letter prepared for the signature of Chairman Eccles to Mr. C. Romfh, President of The First National Bank, Miami, Florida, c&rig as follows: "I received your circular of February 10, 1944, and burprised to learn that you are of the opinion that p"e collection should not be a function of the Fed Collection of checks Reserve System. I certainly do not believe that th 41'gtinlent for the plan you suggest can be sustained on of either the money or time which it would save -1l h 8 nandling the country's business. was 425 3/16/1,4 —4— "It was even more of a surprise to learn that you advocate banks making both service and exchange charges. It seems to me that there is every reason for a bank making intelligent and adequate charges for the services which it renders its own customers but I know of no reason why bank should charge for paying its own check, particuar4 where the same check is taken into account by the wink in fixing service charges against its customer. "So far as the transfer of funds and the collection of checks are concerned, I am confident that the business 2f this country is best served by a par clearance system. "wever, it certainly is not right that smnll member banks should be put to the disadvantage which they now are in 2°mPeting with nonmember banks which use the Reserve Sysfrl to collect at par checks on member banks deposited by its customers but charge exchange on its own checks deStd in the member bank by the member bank's customers. than permit this discrimination against member to stand, I would agree that they likewise should ue permitted by law to engage in the practice. was puzzled by your statement that if the Federal Serve System would bend its efforts towards cooperating th the banks, instead of trying to drive them, we would ,,t ave a better banking system. The generality of the statent prevents my doing more than disagreeing in equally neral terms. However, I cannot help but believe that _?e information upon which this conclusion was based was elther incomplete or incorrect." n V Approved unanimously. Thereupon the meeting adjourned. Secreta Chairman.
@FedFRASER