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A meeting of the Board of Governors of the Federal Reserve SYstena. Was held in Washington on Wednesday, May 13, 1942, at 11:00 a..m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman McKee Draper Evans Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal iLeserve System held on May 12, 1942, were approved unanimously. Renewal bond in the amount of -)/4.0,000, executed under date of IlaY 12 19/.9 1_ ' uy Miss Josephine E. Lally as Deputy Fiscal Agent of the 130e,rd of Governors of the Federal Reserve System. Approved unanimously. retary, in the Memorandum dated May 12, 1942, from Mr. Nelson, Assistant Secrecommending that Karl J. Steger be appointed as a chauffeur Secretary's Office on a temporary basis for an indefinite period, with salary at the rate of P1,320 per annum, effective as of the date 111304 which he enters upon the performance of his duties after having 13"8ed satisfactorily the usual physical examination. Approved unanimously. Letter to Mr. Fletcher, Vice President of the Federal Reserve 928 5/13/42 -2of Cleveland, reading as follows: "Reference is made to your letter of May 7 in which You stated that Peoples-Pittsburgh Trust Company, Pittsburgh, Pennsylvania, did not submit nor publish a report of its vania, affiliate, Hotel Conneaut at Conneaut Lake, PennsylIncorporated, as of April 4, 1942. "It is noted from your letter that the omission was an oversight caused by the changing status of the hotel corporation. In the circumstances, the Board agrees with You that publication of the report at this time would serve III.? useful purpose and it will not insist upon the publica:1°n. If, however, the affiliation exists at the time of e.next call for condition reports, the report of the afr.tpaate should be submitted and unless published waived by .the Waiver provisions printed on form F.R. 220b. Please ' dvise the member bank accordingly." Approved unanimously. Telegram to Mr. Kennel, Assistant Counsel of the Federal Reserve tank of Boston, reading as follows: "Referring your telephone call May 6. Principle : Tated W-10 is now stated in section 11(e) and is que-ilY applicable to provisions regarding minimum monthly 1,8?ments. Therefore in effect your question is whether oalance of $18.00 May be paid in 3 monthly instalments OO fllowed by 171fer!ieci one instalment of $3.00. This is it Approved unanimously, together with a letter to the Presidents of all the Federal Reserve Banks quoting the substance of the above telegram. tazIk of Letter to Mr. Clerk, First Vice President of the Federal Reserve San F rancisco, reading as follows: "Receipt is acknowledged of your letter of May 7, 1942, in which you point out that according to common 929 5/1V42 -3- 'trade terminology, as used in many department stores, wearing apparel' covers outer garments such as coats, suits, dresses, blouses skirts, etc., and that the term accessories' has been used to apply to such items as gloves, hosiery, underwear, negligees, and the like. However, You have stated definitely that for the purposes of Regulation Ili, the term 'wearing apparel' as used in section 13, includes all such accessory items and any °tiler items of apparel whether under or outer garments, Including infants' wear. "The Board agrees with your interpretation." Approved unanimously. Telegram to Mr. Hale, Vice President and Secretary of the Federea Reserve Bank of San Francisco, reading as follows: ."The Board agrees with your interpretation (of RegOil ) with respect to automobile accessories." Approved unanimously. Of mew Letter to Mr. Sproul, President of the Federal Reserve Bank York, reading as follows: 1. „. "This refers to your letter of May 4, 1942, with 'gard to the effort of the Committee on Foreign Banking of New York City to obtain some legislative clarification : ° ,3 the status of bankers' acceptances for the purposes I the, Excess Profits Tax. 'It is noted that you have had no information with re eard to any further developments in connection with a Proposed amendment to the Internal Revenue Code since the :conference attended by Mr. Lucius A. Buck, Mr. Douglas of Your bank, and others in the office of Mr. TarleauLegislative Counsel for the Treasury Department. We, too, have had4 no further information regarding the matter since that ,ame. Cl, "The memorandum relating to bankers' acceptances enwith your letter is very interesting and we are -a:r_e it for our records. However, we have no suggestions gladto concerning it at this time. tolsd 5/13/42 -4- . "In the event any further developments in connection with this matter come to our attention, we will, of course, advise you." Approved unanimously. Letter prepared for the signature of Chairman Eccles to Rear Adzirai Charles Conard, Chairman of the Interdepartmental War Savings ?end Committee, reading as follows: "This refers to your letter of April 24, 1942, en7.1"ing a copy of Executive Order No. 9135 of April 16, 942) establishing the Interdepartmental Committee for the voluntary Pay Roll Savings Plan for the Purchase of War Savings Bonds. "Pursuant to the authority contained in paragraph 1 the Execut ive Order, I hereby designate Mr. Liston P. jethea, Assistant Secretary of the Board of Governors, who nOw servin g as the Board's liaison officer in connec'°n with the Tar Savings Bond program, as my alternate to act for me in all matters relating to the Committee. "With reference to paragraphs 2 and 3 of the Order !::scribing the functions and duties of the Committee, C a7J-ng to the adoption of a uniform plan for Pay Roll in the executive branch of the Government, you be intere sted to know that the Board of Governors was the first Government organization to establish a pay roll Plan for the purchase of United States Saving Bonds. s Over la "a Year ago it adopte d a voluntary pay roll deduction T1,an for the purchase of Series E Bonds by its employees. ,ti e plan went into effect on May 1, 1941, the first day 'De Savings Bonds' were placed on sale by the Treas' At present 97.1 per cent of the Board's personnel cleyarticipat ing in the plan and the percentage of salary to total salaries paid is 5 per cent. Since thceLlTns new asurY's announcement two week's ago setting as a °a1 a quota of 10 per cent of gross salaries, an actio171 eamPaign has been under way in the Board's organizatot_,dito increase the percentage of gross deductions to salaries paid. "You maJ be assured that you will have the complete c00perat' -1°n of this organization in carrying out the r 5/13/42 -5- "provisions of the Executive Order." Approved unanimously. Memorandum dated May 8, 1942, from Mr. Goldenweiser, Director of the nivision of , Research and Statistics, submitting the budgets for the statistical and analytical function, including library services, at the respective Federal Reserve Banks for the year 1942, and recom4"ng that the Board approve the proposed budgets in the following amounts: EAatrAl_Beserve ,Bgak Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Budget $ 37,145 205,322 60,193 37,167 27,825 23,018 66,605 28,720 19,206 24,498 24,466 51,710 Approved unanimously. Letter to the Comptroller of the Currency, reading as follows: " .It is wlth therespectfully requested that you place an orthe orderBureau of Engraving and Printing, supplementof June 14, 1941, for printing of Federal na!?rve notes of the 1934 Series in the amount and denomi'4.°In 17,t: It o:1_for the Federal Reserve Bank of Dallas: Number of nation sheets, Amount A10 50,000 $6,000,000" der Approved unanimously. 5/13/42 -6It was recommended that the Board approve the addition of the am ,..., °"'" of $1,700 to the appropriate item of the non-personal services budget of the Secretaryts Office to cover the cost of a new en-passenger Chrysler limousine which was being purchased upon l'ecorranendation of Chairman Eccles. Approved unanimously. Thereupon the meeting adjourned. Assistant Secretary. Chairman.
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