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429 .k meeting of the Board of Governors of the Federal Reserve Sys- t as held in Washington on Thursday, March 25, 1943, at 4:00 p.m. ?RESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Ransom referred to the discussion at the meeting of the toaba °Y1 February 26, 1943, at which it was decided that Mr. GoldenWeise r should present to the Presidents of the Federal Reserve Banks 11411 th—ey were in Washington in connection with the meeting of the FedMarketCommittee the question of a survey of the ownership of b4rat "tteposits '414 which reference was made in Mr. Goldemmiserl s memo— of February 23, 1943) for the purpose of ascertaining the Pres- ltierlts -1 views as to the desirability of the survey at this time. t. Mr. 'called the Board's attention to a second memorandum dated March 1401 ' 43, from Mr. Goidenweiser on this subject. Mr. Ransom stated that Memorandum was in circulation and came to him with Mr. Evans' apNv.., but that he had delayed aooroving it until the matter could be ctiz us 8ed at a Board meeting. He said that personally he did not oppose the 1:31‘°Posa1 but thought, in the light of the fact that there had been c1111e question about the necessity or desirability of making the survey q tk4 time, that the matter should be considered in a Board meeting. 141% Go IcienAeisert s memorandum stated that Mr. Williams, as Chairman of Pr_ . ' slctents' Conference Committee on Research and Statistics to 430 3/25/43 -2- the matter had been referred by the Presidents' Conference, had adcil'essed a letter to the Presidents of all the Reserve Banks in which it Ill's stated that members of the committee had indicated a general consent, 118 that the proposed survey was desirable as it would improve available Information on the type and distribution of deposits and would be klticuiarly helpful in connection with war financing. Mr. Goldenweiser's , n" memorandum stated that in view of this expression of approval he 10carllended that the Board now suggest to the Federal Reserve Banks that they undertake a preliminary survey of the ownership of bank deposits of a a4 , ' -41 number of selected member banks along the lines proposed in the l'ePo submitted by the subcommittee of the Presidents' Conference Com, k'ttee on Research and Statistics. Chairman Eccles said that, while there had been some hesitancy on hie tjalt to ask member banks for the information, inasmuch as the Presi- 4481 Conference committee had approved the survey and it was to be 1141cislect ( In a purely voluntary basis, he would be willing to have it underte Thereupon, the following telegram to the Presidents of all the Federal Reserve Banks was approved by unanimous vote: "On March 19 President Williams, as chairman of the Corntee on Research and Statistics of the Presidents' Conference, ,,ent to you a letter indicating 'a general consensus that the t j°Posea. survey of deposit ownership to be made periodically by 0"e Reserve Banks is desirable, as it will improve our information h2,the type and distribution of deposits and will be particularly ' 4-Pful in connection with war financing.' "The Board of Governors also favors this undertaking and a lIggests that your Bank undertake a preliminary survey of the illlership of bank deposits from a small number of selected memth!r banks along the lines proposed in the report of the Subcom-""ttee on Research. Figures should be obtained as of March 31, 431 3125/43 -3• Possible. Copy of eonunittee report was sent to heads of research departments of Reserve Banks on February 23. "Board wishes to point out the imoortance of explaining t? each bank requested to report, by personal contact if possible, the nature and purpose of the survey, of emphasizing that reporting is voluntary, and of adapting the questions asked to the abilities of banks to provide information withOut undue work. Vihile it is desirable to have uniform reP°rts from as many banks as possible, it is recognized that • onaplete uniformity may not be obtainable without losing some hformation otherwise available. Therefore, each bank should fe asked to report such information as it is able and willing • give. One of the purposes of this particular survey is to flrld out what banks can report in order to work out a regular rePorting procedure. "From standpoint of public relations, it is oarticularly imPortant that survey be handled carefully to avoid arousing , 1 11b1ic alarm about any purpose or plan by the Government to -ireeze or requisition bank deposits." The action stated with respect to each of the matters hereinreferred to was then taken by the Board: The minutes of the meeting of the Board of Governors of the Fed- , Na..„ Itesernre System held on March 24, 1943, were approved unanimously. Memorandum dated March 24, 1943, from. Mr. Goldenweiser, Directol,0 f the Division of Research and Statistics, submitting the resignatio4 • Miss Joan Conlen as a clerk in that Division, to become effective or the close of business on March 27, 1943, and recommending that the Nato, ' 41-tion be accepted as of that date. The resignation was accepted. ot ueo Letter to Mr. Gidney, Vice President of the Federal Reserve Bank Iork, reading as follows: 0 , "In accordance with the request contained in your letter ' March 18, 1943, the Board approves the appointments of Thomas H. B. Boothe Frederick W. Campbell Louis J. Knoepfel Edwin L. Moran Joseph F. Tierney 432 3/25/43 —4- H as examiners for the Federal Reserve Bank of New York, the apPointments of Lasalle E. Jacobus, Jr. Oscar A. irumfolz Frank C. Vogel Joseph L. Teiss Jerome J. Winter as assistant examiners, and the designation of Richard A. Zimmerman as a special assistant examiner. Please advise us of the dates IIP?rl Which the appointments of the examiners and assistant examiners become effective. . "It has been noted that Mr. Boothe is indebted to First atlonal Bank, Belleville, New Jersey, in the amount of 13,950 Bred,!eou by a mortgage on his home, and to Rutherford Aational Rutherford, New Jersey, in the amount of 4140, which latter amount is to be paid immediately. It has also been 1()ted that Mr. Winter is indebted in the amount of $860 to t'Ynbrook National Bank & Trust Company, Lynbrook, New York. ',!coordingly, in order that there may be no question of conwith the Board's policy on the subject of indebtedness bI examiners to banking institutions, and particularly to memer banks, as outlined in letter x-7638 (F.R.L.S. #9180), the w?ard's approval of the appointments of Messrs. Boothe and is given with the understanding that their indebtedness to '4) national banks will be liquidated or financed through ources other than banks." Approved unanimously. Letter t . Laning, Cashier of the Federal Reserve Bank of and, reading as follows: "The Board of Governors approves the changes in the ??1's0nne1 Classification Plan of the Read Office and the I t tsburgh Branch as submitted with your letter of March 2, 743 and amended by your telegram of March 22. telegram was the re "?ne of the changes requested in your duction from ”,000 to $6,000 in the maximum annual salary f°r the proposed new position of senior economist. Should 8"e Bank feel it necessary in some particular case to pay a al .arY r, in excess of that permitted by the Personnel Classia tion Plan, the Board will consider a request for specific 131'c)val of the higher salary. Such request, of course, 4041d be accompanied by a statement of facts which it is beeyed justify the exception." p 4 Approved unanimously. 433 3/25/43 -5Letter to Mr. Phelan, Assistant Vice President of the Federal rellre Bank of New York, reading as follows: "As you know from discussions which Mr. Bonnar Brown has had with Mr. Ralph Scheffer, the staff has been working on a P°ssible amendment to Regulation la to take care of the problem ?'contract accounts'. Enclosed for your comment and critlelsm is a tentative draft of a provision which would have the effect of exempting business of this kind. It has not yet been ecInsidered by the Board and has been submitted only to one Other Federal Reserve Bank. You will note that it also covers !ertLin sales by manufacturers and wholesalers which, while rchnically subject to the regulation, are doubtless being "arloled quite generally as exempted transactions. . "We should like to have your opinion on the proposed re"slon both as to substance and form. In this connection you .1t .1 wish to consult Mr. J. Anton Hagios of the National Reaall Dry Goods Association and perhaps other interested perin the trade, with the understanding, of course, that in ls preliminary stage any public reference to the matter is be avoided." O Approved unanimously. Letter to the ?residents of all the Federal Reserve Banks, l'ettri st.&fle as follows: "Recently a number of the Federal Reserve Banks and Braaches view of expanding op- have found it necessary, in to rent outside space. "Some of the Federal Reserve Banks have written the D_ 7 t ;ard of such developments, but in order that information this nature may be currently available, it is requested &gat in the future the Board be informed of leases entered 1t0 for the rental of outside space, including space used 13(clusively for fiscal agency activities, and of any case which a building owned by the Bank but previously rented to a outsiders is taken over by the Bank. The release of any Ilch outside space should also be reported to the Board. appreciated if you All 81111_,"In this connection, it All be 1, nut a statement as to all outside space now occupied by " ar Bank and its Branches, showing the address, monthly or 4.4a1 rental number of square feet of space, and actives housed in such space." 2 Approved unanimously. Thereupon the meeting adjourned.
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