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(1)1)4, 14 fit j•, A meeting of the Board of Governors of the Federal Reserve rtera.was held in Washington on Tuesday, March 7, 1944, at 11:00 PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Goldenweiser, Director of the Division of Research and Statistics Mr. Parry, Director of the Division of Security Loans Mr. Leonard, Director of the Division of Personnel Administration Mr. Dreibelbis, General Attorney Mr. Gardner, Chief, International Section, Division of Research and Statistics Mr. Wyatt, General Counsel Miss Bourneuf, Associate Economist in the Division of Research and Statistics • Szymczak read a memorandum addressed to him under date of 1.1th kolleta /14ch 10, 744, by Mr. Gardner with respect to the proposed international stabilization fund and the international investment bank, in it wss suggested that the Board might take a position which in 41115 taxic e would be as follows: —, "The Board is prepared to approve a joint statement ;Luostantially in the form of the Treasury draft of February 4-/44 e ntitled 'Joint Statement by Experts of the United -4tg Associated Nations on the Establishment of an Inter— nal Monetary Fund' provided agreement can be reached tc-4, 3N44 —2— • wIth the Departments of State and Treasury on the prin— !iPle that the Board should participate in the selection rundcontrol of the United States representative on the te,„ : 4.The Board is in favor of reviving the flow of in— al investment on as large a scale as possible. 1,t orcztders some form of international agency essential purpose." Mr- Szymczak stated that the discussions of the monetary fund ha "Tressed to a point where the Board might soon be asked to take PCIalti°n I" this with respect to it, and that the matter was being brought meeting for the purpose of reviewing it and giving Messrs. G°1denweiser and Gardner such instructions as might be regarded as de— eirabie in the circumstances. During the ensuing discussion, Mr. McKee raised a question l‘the' 'l it was in fact necessary for the Board to take a position at thietillte, and it was genera)ly agreed that the Board should reach a 4e41°r1 as to what its attitude would be on the monetary fund so that t410 Chairman could be prepared to take a position when the Treasury 4" State D epartments were ready to commit themselves with respect to tt4 At the conclusion of the discussion it was agreed that a meet— or the Board should be held at 10:30 a.m. on Monday, March 13, for ew of the February 1944 draft of the Joint Statement by Experts t6 he united and Associated Nations on the Establishment of an Inter— tletiorw tionetary Fund, and that a meeting should be held at a later 3/7/44 —3— date to discuss the plan for the international investment bank. At this point Messrs. Thurston, Goldenweiser, Parry, Leonard, DI‘eibelbis, Gardner, and Nyatt and Miss Bourneuf withdrew from the s and the action stated with respect to each of the matters hel‘eirlafter referred to was then taken by the Board: The minutes of the meeting of the Board of Governors of the Fed er'41 Reserve System held on March 6, 1944, were approved unani11101.184 Memorandum dated February 29, 1944, from Mr. Goldenweiser l'ecc'rnmencling (1) that Mr. Triffin, Associate Economist in the Divi at, Research and Statistics, be authorized to return to Paraguay 4 )C111 as Possible to complete the work begun last fall and that the alAthorizat, .1 include stops of a few days each in Colombia and Chile a" a More extended assignment in Brazil, (2) that the Board approve PriticiPle sending a second man to assist Mr. Triffin, specific 411thorization to be given when the proper assistant is found, and (3) that , Per diem of $8 be approved for Mr. Triffin for the proposed Approved unanimously, Mr. McKee stating that his approval was with the understanding that the assistant to Mr. fs. would be employed on a temporary alf Letter to Mr. Leach, President of the Federal Reserve Bank of orld, r eading as follows: 374 3/7/44 —4— This is to advise you that the Board of Governors notes" objection the salaries paid to employees Your Bank and Branches as of January 1, 1944/ as shown in the statement accompanyi ng Mr. Johnstone's letter of February 16, 1944." Approved unanimously, together with a similar letter to Mr. Davis, President of the Federal Reserve Bank of St. Louis, With respect to the salaries paid to em— ployees of that Bank and its Branches as of January 1, 1944, as shown in the state— ment accompanying Mr. Stewart's letter of January 31, 1944. Letters to the "State Bank of Boyd", Boyd, Wisconsin, and the 411114, vn State Bank of West Salem", West Salem, Wisconsin, reading as tol all "The Board is glad to learn that you have completed F.4-4.arrangements for the admission of your bank to the 1.,!cleral Reserve System and takes pleasure in transmitting "rewith a formal certificat e of your membership. It will be appreciated if you will acknowledge re— ceiPt of this certificate." Approved unanimously. Letter to Mr. Strathy, Assistant Cashier of the Federal Reserve 4111t ' of b, 11-1-chmond, reading as follows: or 11,"This will acknowledge the receipt of your letter to" 1.sch 2 regarding the advance of funds by your Bank „Purchase on behalf of the War Department a 90 per cent "(3'.."4/:anteed loan made to Convenience, Inc., Greenville, uth Carolina by the South Carolina National Bank of G,eenv 'ille. 2 will is recognized that there may be times when it e chase difficult, owing to errors in requests for pur— ablse or otherwise, for the Services to make funds avail— purchase guaranteed obligations from financing °ultutions within the ten—day limit specified in the 3/1744 -5- ft guarantee agreement, and that there are times when it !eems desirable for a Federal Reserve Bank to advance the runds to make the purchase with the understanding that it /-, 11-11 be promptly reimbursed by the guaranteeing agency. le our thought that advances of this sort by Federal ?serve Banks should be kept at a minimum, both as to eguellOY and amount, and that when funds are made availbee by the Federal Reserve Banks the Reserve Banks should 4 Promptly reimbursed by the guaranteeing agency. In '111'!e circumstances, and after discussing the matter with r%Walden over the telephone, we are, with his permission, rig Your letter without taking the matter up with the t:r uepartment. Should a situation similar to that re?rred to in your March 2 letter again occur, it will be .1..1)Preciated if you will cPJ1 it specificAlly to our attento rl so that we can take such steps as may be appropriate e3cPedite reimbursement by the guaranteeing agency." Z Approved unanimously. Thereupon the meeting adjourned. Chairman.
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