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765 A meeting of the Board of Governors of the Federal Reserve SYstem Was held in Washington on Friday, May 11, 1945, at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Sumczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— after referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ecier81 ----- Reserve System held on May 10, 1945, were approved unanimously. Telegrams to Mr. Flanders, President of the Federal Reserve Bank , of Boston, Mr. Treiber, Secretary of the Federal Reserve Bank °t New York, Messrs. Leach and McLarin, Presidents of the Federal Reselm, -'e Banks of Richmond and Atlanta, respectively, Mr. Dillard, Vice ' resident of the Federal Reserve Bank of Chicago, Mr. Stewart, Seereta) , ,, -4 of the Federal Reserve Bank of St. Louis, Mr. Powell, First Vice ' resident of the Federal Reserve Bank of Minneapolis, Mr. Caldwell, ehairma n of the Federal Reserve Bank of Kansas City, Mr. Gilbert, Pr -esid ent of the Federal Reserve Bank of Dallas, and Mr. Earhart, Vice Preata ellt of the Federal Reserve Bank of San Francisco, stating that he Boa rd approves the establishment without change by the Federal Idallk of San Francisco on May 8, by the Federal Reserve Bank 766 5/11/45 of -2- Atlanta on May 9, by the Federal Reserve Banks of New York, Rich- mond, Chicago, St. Louis, Minneapolis, Kansas City, and Dallas on 14,710, 1945, and by the Federal Reserve Bank of Boston today, of the rates of discount and purchase in their existing schedules. Approved unanimously. Memorandum dated May 7, 1945, from Mr. Bethea, Director of the Division of Administrative Services, recommending that the fol1°11ing increases in basic annual salaries of employees in that Divibe approved, effective May 16, 1945: aage Designation 13. M. Unger iiary E. Joh Rae Brooksnson Senior Guard Telephone Operator Telephone Operator Salary Increase To From )1,860 1,500 1,440 $1,980 1,620 1,560 The memorandum also recommended that the appointments of Miss Johnson and lira. Brooks be made permanent, effective May 16, 1945. Approved unanimously. Letters to the "Blackpipe State Bank", Martin, South Dakota, alld the it Central Savings Bank and Trust Company", Monroe, Louisiana, &&&g as follows: all a'The Board is glad to learn that you have completed ahl ITangements for the admission of your bank to memberhe Federal Reserve System and takes pleasure in el;r /pitting herewith a formal certificate of your memberwill be appreciated if you will acknowledge reof this certificate." eeipt"It Approved unanimously. 767 5/11/45 -3Letter to Mr. Wayne, Vice President of the Federal Reserve Bank of Richmond, reading as follows: "In accordance with the recommendation contained in your letter of May 5, 1945, the Board interposes no objection to the action of the Union Trust Company of Maryland, Baltimore, Maryland, in purchasing for $20,500 the property at 2056 Harford Road, Baltimore, Maryland, On which it proposes to erect a branch bank building. "It is noted that the bank proposes to erect a build32:1g on the property purchased as soon as necessary priori'3-es can be obtained and attention is invited to the fact that before any further investment is made the matter should be referred to the Board for approval under the °71sions of condition of membership numbered 8 to which he member bank is subject." r Approved unanimously. Letter to Mr. Hitt, First Vice President of the Federal Reserve Ilank of St. Louis, reading as follows: "This refers to your letter of May 2, 1945, regardhe question whether veterans' loans under the Service-en's Readjustment Act of 1944 are eligible as collateral 4.0r advances to member banks. a. The Servicemen's Readjustment Act contains no provifl°11 vhich expressly makes loans under that Act eligible pZjisoount or for use as security for advances under the gu-"-siens of the Federal Reserve Act. Accordingly, the mileiT°n of such eligibility is one which must be deterwi,„e_q from the facts of each particular case in accordance AcZa the requirements of section 13 of the Federal Reserve it "d of the Board's Regulation A. Generally speaking, dud appear that paper representing any such loan ortY not comply with the requirement as to mait is possible that in a particular case the eirr might meet this and the other requirements as to Paper representing such loans would, of course, be derellgible as collateral for advances to member banks unsection 10(b) of the Federal Reserve Act. in 768 5 11/45 -4-- "We are not informed that consideration is being glven to any proposal to amend the law in order to permit the use of these loans as collateral for advances under section 13 of the Federal Reserve Act." Approved unanimously. Thereupon the meeting adjourned. Apprtv Chairman.
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