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Minutes of actions taken by the Board of Governors of the 4.1 Reserve System on Friday, March 17, 1950. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Evans Vardaman Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Minutes of actions taken by the Board of Governors of the Nara., j- Reserve System on March 16, 1920, were approved unanimously. Memorandum dated March 15, 1950, from Mr. Millard, Director or kvision of Examinations, recommending an increase in the Sea 1950. 17 of James C. Smith, a Federal Reserve Examiner in that 4 fA rom 7,000 to $7,400 per annum, effective March 19, Approved unanimously. to Telegrams to the Federal Reserve Banks of Philadelphia, 4,t 148, and San Francisco stating that the Board approves the Etblishment without change by the Federal Reserve Bank of San on March 14, by the Federal Reserve Bank of St. Louis Nkrch - 15, and by the Federal Reserve Bank of Philadelphia on ...tell 16 tki '1950/ of the rates of discount and purchase in their mis schedules. Approved unanimously. kr" 3/17/Do -2Telegrams to Mr. Clarke, Secretary of the Federal Reserve tank Of New York and to Mr. Dawes, Vice President of the Federal ile8erlie Bank of Chicago, reading as follows: "Betel Board approves effective March 20, 19)0, on Purchases of Government securities under resale agreeMent minimum rate of 1/8 per cent above average issuing rate on most recent issue of United States Treasury bills, as authorized by Federal Open Market Committee March 1: 1950. Otherwise Board approves establishment by Your Bank, without change, of rates of discount and Purchase in Bank's existing schedule, advice of which Ilas contained in your telegram dated March 16." Approved unanimously. Memorandum from Mr. Young, Director of the Division of Reeh and Statistics, dated March 17, 19)0, with respect to proposed 1)11881°Ils to Chile and Colombia, transmitting two separate memoranda beay.4 "Ilg the same date recommending (1) that David L. Grove, chief °t the tisti Latin American section in the Division of Research and Sta- Cs, be made available on loan to the International Monetary 111(1 toParticipate in a mission to be sent by the Fund to Chile r°1 'the Purpose of studying the economic problems of that country ' 4a th, — Policies needed to deal with them, with the understanding that the Board would continue to pay Mr. Grove's salary for the Pell°1- of the loan and that the International Monetary Fund '4°1141 assume responsibility for all travel expenses and other costs 1dexit to the mission which is expected to last from four to Igeeks, beginning about March 22, 1950, and (2) that the Board 41:11%°ve a request of the Colombian Government that it send a mission 3/17/50 -3- to C°1°111bia to study that country's financial system and credit 15°11cles and to recommend whatever legislative and policy changes Beern. adViSabie, that Gerald Alter, an economist in the Division orp. -e °arch and Statistics, be made available for the mission 144°1114as expected to leave for Colombia in about three weeks and retn44.4 there for about three months, that on his way back from 411 °MI% Grove join Mr. Alter in Colombia for a two-week period to -"e31- the progress being made with a view to submitting to 13... valid for approval such further plans as may be desirable for the tl the 41011 Program, and that the Director of the Division of ' ea °}1 and Statistics in cooperation with the Secretary be Etlithr3rized to work out appropriate detailed arrangements for the 14141°11 with the understanding that the Board would pay the 84. 141. 168 th of Messrs. Alter and Grove, but that all other expenses tio e SiOn would be borne by the Colombian Government. Approved unanimously. t„ he Memorandum dated March 16, 1.M., from Mr. Townsend, Solicitor toard, ..01,1ezee recommending that the Board authorize a supplemental Of $63.3.)j, for Dr. Goldenweiser's trip from Princeton, to San Francisco, California, and return, for the period Act 1,,oe March 3, 19)o, to assist in the hearing in the Clayton "ding against Transamerica Corporation. Approved unanimously. 359 3117/5o Letter to Dr. E. A. Goldenweiser, Institute for Advanced Sta dY, Princeton, New Jersey, reading as follows: "The Board is advised that while you were in San Francisco pursuant to the authority contained in the Board's letter of September 30, 190, the Transamerica Proceedings were recessed for five weeks to allow counsel on both sides to attend the hearings on bank holding company legislation in ffashington, D. C. The Board is further advised that, upon the resumption of the hearings commencing early in April, it is expected :that additional economist witnesses will be called on I .??half of Transamerica, and that Mr. Townsend would Jake very much to have you in San Francisco during the r temainder of this testimony. Mr. Townsend will conact you by telephone as to the exact date. "Accordingly, the Board has approved an arrangeexit under which you will be compensated at the rate $50 per day of your employment for the purposes of "le Clayton Act proceeding and you will be allowed ?°11r necessary transportation expenses and a per diem ; 1 11 lieu of subsistence of 0.00 in accordance with the 'Dotard's official travel regulations applicable to heads ,, c)f divisions, together with such supplemental allowance 141-1°r other expenses as may be approved by the available ! e rabers of the Personnel Committee in an amount not _4oeeding a25.00. This is the same basis as the horization for your trip to San Francisco in ebruary of this year. "Transportation requests should be used to cover al4-1 necessary transportation and, if you will keep a m eemorandum record of the dates, time consumed and t'lciPenses, we shall be glad to be of any assistanc e A lapt we can in the preparation of your expense voucher. book of transportation requests is enclosed for your e • "The members of the Board have asked me to express to You their sincere appreciation of your willingness u continue to help in this matter." r Approved unanimously. ' ) Letter to Mr. Logan, Vice President and General Counsel or the D xederal Reserve Bank of New York, reading as follows: "This will acknowledge receipt of your letter of Mar , 1 13, 19)0, advising that the Federal Reserve Wellk of New York has extended the leave of absence of t1'. Gregory O'Keefe for an additional period from : 0 rch 31, 19)0 to December 31, 19)0 for the purpose assisting Mr. Townsend in the Transamerica proceedings. uh The Board will continue the present arrangement „scler which the Federal Reserve Bank of New York is iillbursed for Mr. O'Keefe's salary, as well as for the 1,. contribution to the Retirement System on behalf, and the payment by the Board of transportion expenses, per diem in lieu of subsistence, and ! 'ntal cost of living accommodations. cooperation in this connection is appreciatedur Approved unanimously. Reterv Telegram to Mr. Powell, First Vice President of the Federal e 138.1* of Minneapolis, prepared in response to Mr. Powell's letter Or March 16, 19)0, with respect to the Towle matter discussed kt the Illeetings on March 7 and 14, reading as follows: 16 "This wire is in response to your letter of March tls' The Board prefers not to designate anyone to serve cle 8. member of suggested Committee but will be glad to illeignate a member of its staff to work with the Committee 4 de veloping a full statement of the facts which it or 8%Pected would be presented to the Board of Directors ( 48Y0ur Bank and serve as a basis for your directors' to Position of the matter. Of course, the member of the 0137's staff would not be authorized to express any 0ola111:°48 with respect to the matter or as to what would tilesitute an appropriate disposition but would be of cle 141 assistance as he could in developing the facts Of 'red by your Discount Committee for consideration taj ellr Board of Directors. If this arrangement is ' sfactory please advise by wire and the Board's 361 3117/50 -6- representative will proceed to Minneapolis forthwith." Approved unanimously. Telegram to Mr. Knoke, Vice President of the Federal Reserve tabu Of New York, reading as follows: "Your wire March 16. Board approves three months ellewal to June 19, 1950 by your Bank to Banco Central rl Ecuador of $2,400,000 balance of the $3,400,000 "'clan against gold maturing March 20, on the same terms nd conditions as apply to the outstanding loan and on understanding that $1,000,000 of the maturing loan 7 / 11 be repaid by the sale of gold held in your vaults .Lcr the account of the Banco Central. It is understood chat the usual participation will be offered to the Other Federal Reserve Banks." Approved unanimously. Secretary. Chairman.
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