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361 Ameeting of the Board of Governors of the Federal Reserve 8Yetem was.held in Washington on Saturday, March 9, 1940, at 11:30 4. 111. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Davis Draper Mr. Nat. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereintift referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ' ral Reserve System held on March 8, 1940, were approved unani- 4[0144. Memorandum dated March 8, 1940, from Mr. Wyatt, General C°11118el, submitting the resignation of Mrs. Mary. Morgan Dillon, a 8tell°"EiPher in the Legal Division, to be effective as of the close "11 " 01 31, 1940, and recommending that the resignation be accepted 4eof that date. Approved unanimously. Memorandum dated March 6, 1940, from Mr. Szymczak submitting 4 118 Of the proposed salaries of officers of the Federal Reserve 41alt Or Chicago for the year ending March 31, 1941, as approved by tIle bop, --r‘A of directors of the Chicago bank, and recommending that 362 3/9/4o the salaries be approved as follows, effective April 1, 1940: Name Title Schaller Preston SnYder Young Dillard Bachman Netterstram Olson Sihler Endres Black Dawes Lindsten Meyer Purrington Roberts Saltnes Ilopkins Dunn Hodge President First Vice Pres. V. P. and Cashier Vice President Vice President Asst. Vice Pres. Asst. Vice Pres. Asst. Vice Pres. Asst. Vice Pres. Auditor Manager, Planning Asst. Cashier Asst. Cashier Asst. Cashier Asst. Cashier Asst. Cashier Asst. Cashier Asst. Cashier General Counsel Asst. Counsel • Present Salary $35,000 25,000 17,500 18,000 14,500 9,000 9,000 8,000 9,000 7,000 6,500 7,000 6,000 6,300 6,500 6,750 7,000 5,000 12,000 4,300 Increase 500 500 300 200 500 500 Proposed Salary 835,000 25,000 17,500 18,000 14,500 9,000 9,000 8,000 10,000 7,000 7,000 7,500 6,300 6,500 7,000 6,750 7,500 5,000 12,000 4,300 Detroit Branch A. j.•. Buss 4. L. chairont Diehl Managing Director Cashier Asst. Cashier $12,600 8,500 5,000 8,500 5,000 Approved unanimously. Memorandum dated March 7, 1940, from Mr. amead, Chief of the k11.4 of Bpnk Operations, submitting a letter dated March 4 from 111441 t°111 First Vice President of the Federal Reserve Bank of Chicago, '4110h 'equested approval by the Board of changes in the personnel clas- titi cation plan of the bank to provide for the creation of two new 363 3/9/40 15°siti0ns of "Assistant Supervisor" in the Mail Department, each with " " 111111/11 salary of $1,500 per annum. The memorandum stated that the 151'40sed changes had been reviewed and recommended that they be ap1/1 sd. Approved unanimously. Under date of 1-ebruary 26, 1940, the Board received a letter tr°11 " 4r. R. D. Clark, Cashier, The First National Bank of Boston, E3t(371, Massachusetts, submitting a resolution adopted by the executie cammittee of the national bank on February 26, 1940, authorizing the establishment of a subsidiary branch at Plaza Constitucion, Buenos 441*es, Argentine Republic, and requesting that the Board grant the 13"1414 ssion for the establishment of the branch. 13(41rd s inquiries of March 4, In response to the 1940, the Federal Reserve Bank of Boston 4o0 Illsilded that the authority requested be granted and the office of the c QMPtroller of the Currency advised that it knew of no objection to th Board issuing permission to the national bank to establish such eicliary branch. Accordingly, the following order was adopted by the Board: "WHEREAS The First National Bank of Boston has made application to the Board of Governors of the Federal Reserve System, pursuant to the provisions of section 25 the Federal Reserve Act, for permission to establish 1111 additional branch to be located at Plaza Constitucion, 1811enos Aires, Argentina; and "WHEREAS it appears that the said bank may properly !e authorized to establish an additional branch to be 4'°eated at Plaza Constitucion, Buenos Aires, Argentina; 3/9/4o -4-- "NOW, THEREFORE, IT IS ORDEhED that The First National Bank of Boston be and it hereby is authorized to establish an additional branch to be located at Plaza Constitucion, Buenos Aires, Argentina, upon the condition that unless the branch hereby authorized is actually established and opened for business on or before March 1, 1941, all rights hereby granted as to such branch shall be deemed to have been abandoned and the authority hereby granted as to it shall automatically terminate; but, if the branch shall be established and opened for business 04 or before said date, the said bank may operate and Maintain the same subject to the provisions of section . 25 of the Federal Reserve Act." In connection with the above matter, the following letter to Mr. Paddock, First Vice President of the Federal Reserve Bank of Boston, was also approved unanimously: "Reference is made to your letter of March 6, 1940, 14 Which you recommend that The First National Bank of 80ston, Boston, Massachusetts, be authorized to establish fl additional branch at Plaza Constitucion, Buenos Aires, Argentina. "Pursuant to the provisions of section 25 of the PeA ,Aeral Reserve Act, the Board of Governors of the FedReserve System has authorized The First National Bank "Boston to establish an additional branch to be located Plaza Constitucion, Buenos Aires, Argentina, upon the e°4dition that the branch be actually established and °Permed for business on or before March 1, 1941. "You will note that the order authorizes the estab118 hment of an additional branch rather than the estabishment of a branch agency or office as stated in the 2"k's application. This is for the reason that section i5 of the Federal Reserve Act refers only to branches end t is no longer the practice of the Board to grant permison for the establishment of a branch agency or office, ullt merely for the establishment of branches. If, howThe First National Bank of Boston desires, for adpurposes, to designate some of its branches branch agencies or offices, the Board offers no objec°n, provided the so-called branch agencies or offices ' 365 3/9/40 -5- comply with all of the provisions of law applicable to branches. It will be appreciated if you will call this Point to the attention of The First National Bank of Boston. "There is enclosed herewith a certified copy of the order adopted by the Board authorizing the establishment Of the additional branch which you will please deliver to the bank. There is also enclosed a copy of the order for Your files. It will be appreciated if you will advise the Board of the date the branch is actually established and oPened for business." Memorandum dated March 5, 1940, from Mr. Horbett, Assistant N er Of the Division of Bank Operations, transmitting the annual resUbmitted by the Federal Reserve banks as of December 31, 1939, Inc• ompliance with the Board's letters of December 4, 1926 (X-4739), krid O ctober 5, 1933 (X-7629), covering the seventy-three banks located 0/• 1tlYing sections of central reserve or reserve cities, except 1"c)rk City, which had been authorized individually by the Board to • " e 17 reduced reserves on demand deposits. The memorandum recamketo 'ed that the Federal Reserve banks concerned be advised that the ePDroves their recommendations that all member banks in their l'e8Pective districts which, on December 31, 1939, had authority to e411'Y tt reduced reserves on net demand deposits be authorized to con- e to maintain such reserves. Approved unanimously. 366 3/ -6- Thereupon the meeting adjourned. 4DrOved:
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