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744 A meeting of the Board of Governors of the Federal Reserve Sirstem was held in Washington on Friday, May 12, 1944, at 11:00 a.m. PRESENT: Mr. Szymczak Mr. Draper Mr. Evans Mr. Mr. 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 hereinairt;er referred to was taken by the Board: Telegrams to Mr. Flanders, President of the Federal Reserve 4. Bank of Boston, Messrs. Treiber and Keesee, Secretaries of the Fed- erelReserve Banks of New York and Richmond, respectively, Mr. McLarin, President of the Federal Reserve Bank of Atlanta, Messrs. Dillard and Stewart, Secretaries of the Federal Reserve Banks of Chicago and St. 14311is, re spectively, Mr. Powell, First Vice President of the Federal Ile8erve Bank of Minneapolis, Mr. Hall, Secretary of the Federal Reeerire Of Kansas City, and Mr. Gilbert, President of the Federal rieee_ "re Bank of Dallas, stating that the Board approved the establishrtlerit without change by the Federal Reserve Bank of Atlanta on May 10, bY the 'ederal Reserve Banks of New York, Richmond, Chicago, St. Louis, k4trie aPolis, Kansas City, and Dallas on May 11, 1944, and by the Federal. R eserve Bank of Boston today, of the rates of discount and pur, se LI their existing schedules. Approved unanimously. 745 5112/44 —2— Memorandum dated May 11, 1944, from Mr. Morrill submitting the resignation of John F. Horrigan as a guard in the Secretary's °trice, to become effective as of the close of business on May 20, 1944, and recommending that the resignation be accepted as of that date, it being understood that appropriate deduction will be made trona , 14 "4'8 pay to cover 13 days and 2 hours of unearned sick leave. The resignation was accepted as recommended. Letter to Mr. Flanders, President of the Federal Reserve Bank ston, reading as follows: "The Board of Governors approves payment of salaries to the following officers of the Federal Reserve Bank of Boston for the year beginning May 1, 1944 at the rates fix , 1 ,-4. e" V your board of directors as reported in your let--'er of may 9: Name Annual Salary Title Ellis G. Hult Vice President $11,000 le.r1 B. Pitman Vice President 11,000 js!ar A. Schlaikjer 10,000 Counsel oun C. Hunter 8,000 Cashier ,* P. Van Amringe 6,000 Assistant Cashier ' clward P R. Murpby 5,500 Assistant Cashier Ipbert B. 5,500 HarveyAssistant Cashier 4nsgar R. Berge Assistant Secretary and Assistant 6,000 Counsel John. j. Fogg 7,500 Auditor The Board also approves payment of salary to Krickel „ arrlck as Vice President, Secretary and General Counsel, 'zto, the rate of g15,000 per annum for the period May 1, 1944 whit/11-1Y 31, 1944, the date of his retirement from the service, accordance with the action taken by your board of dlirl:t(31;1'1,s 1 746 -3"It is noted that at the meeting of May 8, no action Was taken with respect to the salary of William Willett, First Vice President, consideration of the salary being deferred until a later date. In the circumstances, the approves continuation of payment of salary to Mr. Willett V,illett as First Vice President at the present rate of 6,500 per annum pending further action and consideraulon of the matter." V Approved unanimously. pe„er Letter dated May 11, 1944, to Mr. Rice, Vice President of the al Reserve Bank of New York, reading as follows: : In view of the circumstances described in your letter May 4, 1944, the Board of Governors approves the ,F.ontinuation of the payment of a salary to Mr. George W. van Loan through September 30, 1944, at the rate of $3,600 Per annum, which is $900 in excess of the maximum annual ;8:larY provided for the position of Chief, Collection Divit°n, the position to which Mr. Van Loan is currently asslgned.fl Approved unanimously. Telegram to Mr. Evans, Vice President of the Federal Reserve krik of Dallas, reading as follows: t. "Relets May 8. Board approves appointments, effecH1 ,! 27 MaY 22, 1944, of T. A. Segelhurst and George A. a:;'er as examiners for Federal Reserve Bank of Dallas; as requested in your letter of May 6 to Paulger, o°ard approves also appointments, effective May 22, 1944, .L.Harry 0. Tennison and C. L. Childers as assistant exthe latter at a salary rate of $3,900 per an"- With respect to Tennison and Childers it is assumed, nt c?urse, that there have been no developments in convrtion with indebtedness or otherwise since their preemployment as assistant examiners which would adversely affect their services on examining staff." Approved unanimously. 747 5/12/44 -4Letters to "The Peoples Bank of Johnstown, N. Y.", Johnstown, Ilewy0rk, and the "Bank of Brinkley", Brinkley, Arkansas, reading as talows: "The Board is glad to learn that you have completed 2:11 arrangements for the admission of your bank to the !'ederal Reserve System and takes pleasure in transmitting nerewith a formal certificate of your membership. . "It will be appreciated if you will acknowledge re'Pt of this certificate." Approved unanimously. Letters dated May 11, 1944, to Colonel Paul Cleveland, Chief or the Advance Payment and Loan Branch, Special Financial Services 4111sion of the Office of the Fiscal Director, War Department, and t)41... William A. Coolidge, Chief of the Finance Section of the OftLce of Procurement and Material, Navy Department, reading as follows: "There is enclosed herewith a copy of a letter reby the Board from Mr. M. G. Wallace, Counsel, FedReserve Bank of Richmond, with regard to an inter13 nation of section 6 of the guarantee agreement. We ! --1 appreciate receiving your views on the question. eN.3 1 'u 140:7 Mr. Wallace, in order that we may advise ham." Approved unanimously. Letter to Colonel John C. Mechem, F. D., Chief of the Special gelal Services Division, Headquarters, Army Service Forces, read&Ilea8 f011OWS: te,_,"In our letter of August 21, 1942, regarding the deb...-Litu,nation of expenses in connection with work performed -Lhe Federal Reserve Banks for the War Department puruant to Regulation V, we stated that: 748 5/12/44 "'Charges for space are on the bas3s of the lower of (1) actual cost, or (2) the rate charged commercial tenants for comparable space. In no case would the rate charged exceed $2.00 per square foot.' "During the latter part of 1943 we were advised by the Federal Reserve Bank of San Francisco that because of 1.ncreased volume of work at the Portland and Seattle Branches lt had been necessary to make extensive alterations in the rented buildings occupied as banking quarters; that the cost of these alterations is to be prorated over the remaining Period of the respective leases; and that the space rate for the next several years would be in excess of 2.(10 Per square foot per annum at both offices. No change has been made in the practice of the Federal Reserve Banks limiting the charges for space in buildings °wiled by them to $2.00 per square foot." Approved unanimously. Letter to Mr. M. F. Braun, President of the Chippewa Trust Com) 8+ .. Louis, Missouri, reading as follows: 15111V "Your letter of May 5 to Governor Ransom has been refer ed, to me for renly in the absence of Mr. Ransom from the city. "The members of the Board appreciate both the essential contribution which the banking system is making to the n°mic life of the country and to the war effort and the iculties which the banks are facing in maintaining adecillate staffs. Coun "Recently, after discussion with the Federal Advisory ,ell, the Board requested. the War Manpower Commission et-Ta National Headquarters of the Selective Service System ti regard banking as an essential or 'war-supporting' activitY so far as civilian employment policies, as disnguished from calls for military service, are concerned. "In this connection, both the Federal Advisory Council fld re presentatives of the American Bankers Association asthe Board that the banking system is not asking any consideration with respect to the deferment of bank ,7.Loyees from military service but urged that banking be 'iZarded as an essential activity in the hiring and retenn of employees not eligible for military service. n 749 -6"In your letter, you state that you understand that there is a ruling to the effect that the draft boards can take away from you your senior paying teller, who is 36 years of age, classified as 4-F, and put him in a war plant. We understand that no such ruling has been issued. T?u are, no doubt, familiar with the recent public discusregarding the fuller utilization of men not physically acceptable for military service. The Board had those dis11881°fla in mind when it submitted its recent requests to Selective Service and the Mar Manpower Commission." Approved unanimously. Thereupon the meeting adjourned.
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