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389 A meeting of the Board of Governors of the Federal Reserve Ehtem was held in Washington on Tuesday, March 19, 1940, at 10:30 8.• in. PRESENT: Mr. Eccles, Chairman Mr. Ransom, Vice Chairman Mr. Szymczak Mr. McKee Mr. Davis Mr. Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Hr. Wyatt, General Counsel Mr. Smead, Chief of the Division of Bank Operations Mr. Dreibelbis, Assistant General Counsel Mr. Piser, Senior Economist in the Division of Research and Statistics lerore this meeting copies of a memorandum prepared by Messrs. 8111ead and Piser in response to the request made at the meeting of the 11(3 rd on February 13, 1940, with respect to the treatment of profits on 8Witches of securities in the System open market account, had been sent to the members of the Board. The questions of accounting presented by the memorandum, as well as the possible effects of any change in accounting procedure on shifts of securities in the System open market account, were discussed and it was agreed that the matter should be placed on the docket for consideration at the meeting of the Federal Open Market Committee to be held tomorrow. At this point Mr. Goldenweiser, Director of the Division of 48earch and Statistics, entered the meeting and Mr. Piser withdrew. Chairman Eccles referred to the memorandum which had been 131'ePared at the request of the Board on March 12, 1940, with respect 390 3/19/40 -2- to the bill introduced in the House of Representatives by Congressman Steacall which would amend in certain respects section 12B of the FedReserve Act relating to deposit insurance. Copies of the memo- fl'aiwn had been sent to all of the members of the Board and to the ?I'esidents of the Federal Reserve banks with the request that the bill be considered by the Presidents at their conference being held in Ilashington today. There ensued a discussion of what, if any, action the Board might take with respect to the bill and Messrs. Wyatt and Goldenweiser, in collaboration with Mr. Morrill, were requested to prepare a memorandum along the lines suggested during the discussion which could be sent to the Banking and Currency Committees of Congress as an expression of the Board's views. At this point Messrs. Wyatt, Smead, Goldenweiser and Dreibelbis left the meeting and the action stated with respect to each of the 1114tter8 hereinafter referred to was then taken by the Board: The minutes of the meeting of the Board of Governors of the hciel'al Reserve System held on March 12, 1940, were approved unani111011.81y. The minutes of the meetings of the Board of Governors of the ?od __ eral Reserve System held on March 13 and 15, 1940, were approved ' 4a the actions recorded therein were ratified unanimously. Memorandum dated March 16, 1940, from Mr. Smead, Chief of the Division of Bank Operations, submitting a letter dated March 14 11% Hays, Assistant Vice President of the Federal Reserve Bank l'11" 391 3/19/40 °t Cleveland, which requested approval by the Board of a change in the personnel classification plan of the bank to provide for the cre4ti°n of the new position of "Research Assistant" in the Business St atistics Department with a maximum salary of 0,000 per annum. The nielliorandum stated that the proposed change had been reviewed and recftrlended that it be approved. Approved unanimously. Letter dated March 16, 1940, to the Presidents of all Federal Ileserve banks, transmitting forms and instructions in connection with the text call for condition reports of State member banks and their aff iliates. Approved unanimously. Memorandum dated March 14, 1940, from Mr. Smead, Chief of the 1)171sion of Bank Operations, recommending that the form of the Board's Weei l-Ir statement on bank debits be amended as outlined in the memoran4141 " The memorandum stated that corresponding changes in the form of the zonthly statement of bank debits would be made in the event the 1°1Posed changes were approved. Approved unanimously. Mr. Morrill suggested that the Board authorize the payment °r the cost of the luncheons served to Messrs. Leon H. Johnston, Vice 4-4 a uent, and Irving Reynolds, Counsel, The Chase National Bank of the ,. 'ltY of New York, New York, New York, Robert E. Broome, Vice larg, dent, and Charles L. Willard, Counsel, Guaranty Trust Company of 392 3/19/40 -4- New York, New York, New York, and Tames L. Harrison, Vice President, hO National City Bank of New York, New York, New York, in the Board's 'dining room on March 15, 1940. Approved unanimously. Thereupon the meeting adjourned. 4proved: Chairman
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