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A meeting of the Board of Governors of the Federal Reserve System was held in Washington on Wednesday, March 20, 1946, at 9:30 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ecleral Reserve System held on March 19, 1946, were approved unani111°Usly. ' Memorandum dated March 15, 1946, from Mr. Thomas, Director of n the, ivision of Research and Statistics, submitting the resignation Of Frederick C. Dirks, an economist in that Division, effective as of the close of business March IA, 1946, and recommending that the resignation be accepted as of that date, and that appropriate payment be made tOr his accumulated and accrued annual leave at that time. The resignation was accepted as recommended. Memorandum dated March 15, 1946, from Mr. Thomas, Director of Of the Division of Research and Statistics, submitting the budgets for the statistical and analytical function, including library services, 3/20/46 at all of the Federal Reserve Banks for the year 1946, and recommend,- 14g that the Board approve the proposed budgets in the following amounts: Federal Reserve Bank Boston New. York Philadelphia Cleveland Budget $ 63,100 312,900 111,900 87,800 Richmond Atlanta Chicago St. Louis 66,800 54,800 192,000 74,800 Minneapolis Kansas City Dallas San Francisco 56,900 83,000 111,200 90,000 Chairman EccleF having raised a question with respect to the proposed budget of the Federal Reserve Bank of New York, it was agreed unanimously that action on the budget for that Bank should be deferred pending the submission of additional information by Mr. Thomas. The proposed budgets for the other 11 Federal Reserve Banks were approved unanimously. Letter to the Presidents of all Federal Reserve Banks reading eks follows: "In order to supplement the information previously requested, it will be appreciated if you will furnish the Board with information with respect to non-bank organizations affiliated or closely associated with any bank included in the reports on group and chain banking, and on 2-bank affiliations, submitted in response to the Board's letter of February 14, 1946. An outline of the desired information is attached. The compilation should be based 3/20/46 -3- "on such records and reports as are already available at the Federal Reserve Banks, such as reports of examination, affiliate reports, and registration statements filed under the provisions of Regulation W. "It is not contemplated that similar reports will be called for regularly." Approved unanimously. Letter to Mr. Fulton, Vice President of the Federal Reserve Bank of Cleveland, reading as follows: wlie believe you will find that the Board's letter (S. 903) of March 14, 1946, answers your letter of March 2, 1946 regarding Regulation U. "The inquiry forwarded with your letter states that in a similar case it was understood that the seller of the notes had guaranteed their repayment and had also agreed to make an additional payment of interest. The inquiry asks whether these provisions are essential to the purchase being permitted under the Regulation. As indicated in S. 903, the existence of such a guarantee or agreement for additional interest payment is not necessary in order for the purchase to qualify under the Regulation." Approved unanimously. Telegram to Mr. Clerk, President of the Federal Reserve Bank 'San Francisco, reading as follows: °I "Re your inquiry to Mr. Sproul regarding Mr. Reis of Brazil telephoned from New York, we have participated in training program of the International Training Administration, formerly a unit of the Office of Coordinator of Inter-American Affairs, and now a nonprofit corporation cooperating with Government agencies and private business. Uruguayan bankers who visited you in 1943 were sponsored by it. Training Administration informs me Mr. Reis has been at Seattle First National the past year and has asked to work at your Bank. Paying a living allowance is exceptional for central bank employees, but Board is now doing it in case of a Paraguayan, and if you would 430 3/20/46 —4— "wish to do employee of scholarship Board would so in the case of Mr. Reis, who, though Banco do Brasil, is here on personal and not as representative of Banco, the interpose no objection." Approved unanimously. Thereupon the meeting adjourned. APProve ,-( Z (te`A/Chairman.
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