Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, May 14, 1936, Volume 23, Part 3

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1019
A meeting of the Board of Governors of the Federal Reserve System
was held in
Washington on Thursday, May 14, 1936, at 11:00 a. m.
PRESENT:

Mr. Eccles, Chairman
Mr. Szymczak
Mr. McKee
Mr.
Mr.
Mr.
Mr.

Morrill, Secretary
Bethea, Assistant Secretary
Carpenter, Assistant Secretary
Clayton, Assistant to the Chairman

Consideration was given to each of the matters hereinafter referred to and
the action stated with respect thereto was taken by the
BOard:

Telegrams to Mr. Delano, Chairman of the Federal Reserve Bank of
Richmond,
and Mr. Sargent, Secretary of the Federal Reserve Bank of San
l'ra4ci800, stating that the Board approves the establishment without
Change
by the banks today of the rates of discount and purchase in their
ezisting schedules.
Approved unanimously.
Memorandum dated May 12, 1936, from Mr. Goldenweiser, Director
(/f the Divis
ion of Research and Statistics, recommending the appointment
Of Mr. Carl H. Schwartz, Jr. as a junior research assistant in
the
liviR4
---°n, With salary at the rate of $3,200 per annum, effective as of
the d
ate upon which
he enters upon the performance of his duties after
--"'g

satisfactorily passed the usual physical examination
.
Approved unanimously.

p.

Memorandum dated May 12, 1936, from Mr. Goldenweiser, Director of
the D4
'
vision of Research and Statistics, recommending the appointment of
Miss D,
''eanor
cl
M. Esser as a library assistant in the Division, with salary




1020
5/14/56
at the
rate of $1,440 per annum, effective as of the date
upon which she
enters upon the
performance of her duties after having satisfactorily
Passed the
usual physical examination.
Approved unanimously.
Letter to Mr. Austin, Chairman of the Federal Reserve Bank
of
Philadelphia, readi
ng as follows:
"Reference is made to your letter of May 7, 1936, advising that subject
to the approval of the Board of
Governors of the Federal Reserve System, and effective
June
1, 1956 or on such
other
conve
date
as
it
nient
may
be
for
the Board
to release him, the board of directors of your
bank had
appointed Mr. Frank J. Drinnen as First Vice President of the
Federal Reserve Bank of Philadelphia for the
unexpired porti
on of the five-year term ending February 28,
1941, and had fixed his salar
y at the rate of $15,000 per
annum. Receipt is also acknoyadsP
d of th letters written
by You
and President Sinclair under date of May 13, 1936,
advising that the appointmen of Mr. Drinn
t
en was at the
suggestion of
President Sinclair and in no respect on the
or suggestion of any member of the Board of
Gover
-/overnors
nors of the Federal Reserve System or its staff
.
"The Board approves the appointment of Mr. Drinn
en as
First vice
President of your bank for the period stated and,
as it
will be convenient for the Board to release Mr.
t)rinnen as
of June 1, it approves, for the period from June
tito Decem
ber 31, 1936, the salary at the rate of $15,000
fix
e d by
your directors for him in the new position.
"The Board also approves for the period from May
7 to
7.
c
,ember 31,
1936, inclusive, the salary at the rate of
v.z
-L,000
as Vice per annum fixed by your directors for Mr. W. J. Davis
President of the Federal Reserve Bank of Philadelphia.
:
1 117iCe of Mr. Davis appoi
ntment as Vice President and of the
'
_alarY fixed by your directors for him in the
new position
was also
contained in your letter of May 7."
Approved unanimously.
Letter to "The Depositors National Bank
of Durham", Durham, North
Ca''°1ina, reading
as follows:




1021
"The Board of Governors of the Federal Reserve System
has given
consideration to your application for permission to
exercise fiduciary powers, and grants you authority to act,
when not in contravention of State or local law, as trustee,
executor, administrator, registrar of stocks and bonds,
guardian of estates, assignee, receiver, committee of
estates of lunatics or in any other fiduciary capacity in
which State banks, trust companies or other corporations which
come into competition with national banks are permitted to
act under the laws
of the State of North Carolina, the exercise of all
such rights to be subject to the provisions of
the Federal
Reserve Act and the regulations of the Board of
Governors of the Federal Reserve System.
"This letter Jill be your authority to exercise the
fiduciary powers granted by the Board pending the preparation of a formal certificate covering such authorization,
Ahich will be forwarded to you in due course."
Approved unanimously..
Letter to Mr. F. V. Grayson, Auditor of the Federal Reserve Bank
°f

Cleveland, reading as follows:
"Your letter of May 5 and your report of the audit of
the Fiscal Agent's books for the period January 1 to April
/ 1936, inclusive, are being brought to the attention of
.3'
uao members of the Board of Governors.
"Your understanding that payments to be made to the
Architect
as compensation for the services of his firm and
?
...1 the consulting engineers associated with him under the
6erms of Article 5 of the contract are to be calculated on
ti baste cube of 3,660,784 cubic feet is correct, these
es having been agreed upon between the Architect and
the Board's
Superintendent of Construction.
of "The bonds to which you refer in the fourth paragraph
8 Your letter have been examined and passed upon by the
,,°ard's counsel, and the insurance policies have been
exami
and are receiving further consideration in connec,lon with certain details. We shall be very glad to make the
uonds and
policies available for your inspection at any time
Y°u are here. It is our feeling that the question of the
!xtent to which you should check into these matters is one
Ior the exercise
of your own judgment.
el"Copies of your certification of the audit as of the
°se of April 18, 1956, will be sent to all of the Federal
reserve banks in accordance with the practice which has been




1_022
—4—
"established in that connection.
"With respect to your recommendation that audits of the
Board's books and accounts be limited to three in each
calendar year, one to be made at the close of each year and
the other two at irregular dates, it is believed that this
number of audits will be entirely adequate and therefore the
Board approves your recommendation."
Approved unanimously.
Letter to the George A. Fuller Company, Washington, D. C., read—
R8 follows:
"Reference is made to Mr. Pugh's letter of April 20,
1936, submitting for the consideration of the Board the name
5 The Harris Granite Quarries Company, Salisbury, North
e-rolinal as proposed subcontractor for the Durax Blocks,
Y specified in paragraph 5 of section 12 of the Specifica—
t.ions.
"I am authorized by the Board to advise you in accord—
ance With Article 31 of the construction contract that the
above named firm is not objectionable to the Board for the
purposes stated in your letter."
Approved unanimously, the sub—contractor
referred to having been approved by the Board's
architect, the Board's superintendent of con—
struction and by Mr. Miller.

Thereupon the meeting adjourned.

'

APproved:




Chairman.

0-1.,A ALP_
Secretary.