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7B7 Minutes of actions taken by the Board of Governors of the ?edere.1 Reserve System on Friday, May 14, 1948. theB " "rcl Room at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. The Board met in McCabe, Chairman Szymczak Draper Evans Vardaman Carpenter, Secretary Sherman, Assistant Secretary Hammond, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Riefler, Assistant to the Chairman Smead, Director of the Division of Bank Operations Mr. Bethea, Director of the Division of Administrative Services Mr. Thomas, Director of the Division of Research and Statistics Mr. Vest, General Counsel Mr. Leonard, Director of the Division of Examinations Mr. Nelson, Director of the Division of Personnel Administration Mr. Knapp, Assistant Director of the Division of Research and Statistics Mr. Dembitz, Chief, International Financial Operations Section, Division of Research and Statistics Mr. Youngdahl, Acting Chief, Banking Section, Division of Research and Statistics Messrs. Exter and Grove, Economists, Division of Research and Statistics Mr. Mr. Mr. Mr. Mr. Mr. Mr. Messrs. Bopp and Johns, Vice Presidents of the Federal Reserve Banks of Philadelphia and Kansas City, respectively. There lork, were presented telegrams to the Federal Reserve Banks Clelieland, Richmond, Atlanta, Chicago, St. Louis, 768 -2Sas City, and San Francisco stating that the Board 41)17es the e stablishment without change by the Federal Reserve h41(c)r Sall Francisco on May 7, by the Federal Reserve Bank of 4448 city on May 11, by the Federal Reserve Banks of Atlanta St 1411is on May 12, and by the Federal Reserve Banks of New 1°11' elerelanci) Richmond, Chicago, Minneapolis, and Kansas City °41184' 13) 1948, of the rates of discount and purchase in their el4tillg schedules. Approved unanimously. elegram to Mr. Gilbert, President of the Federal Reserve Iktik or: alas, reading as follows: 1 May 13, Board approves effective May 15, 194.8, %rell "lmination of buying rate of 1/2 per cent on ketit ases of bankers' acceptances with resale agreeor a eic,"4 of maximum commitment rate of 1/4 per cent tiott lt fee not to exceed $50 on loans under Sec31) guaranteed under Regulation V. Otherwise 110i ch.,5.14 aPProves establishment by your Bank, without c)f rates of discount and purchase in Bank's S in ,Legchedule advice of which was contained ram dated May 13." Approved unanimously. Mr. me, T, 8.10e said that he had received word from Mr. Robert /140tev.e...s ' 4 F41.4, 'tt Re that he would accept, without reservation or restriction, as a Class C director and designation as Chairman and srve A -.gent at the Federal Reserve Bank of New York, but 'Ett t4, r equest of the directors of the Mutual Life Insurance 769 v14/48 -3Of New York, of which he was a director, he would like to e°11tittlie to have his name shown in the list of directors of that col4 413J"fith a notation making it clear that he was on leave of Etbsetiee ) it being understood that he would not attend any meetings or the -directors or participate in its policy discussions. Mr. 4c000 e 84id that among other qualifying acts, Mr. Stevens would selTer 41113811k connections and sell the bank stock which he held, 411 t t willingness to do this and to reduce his activities °1a othe „ uc)ards of directors was an indication he would take on 4813.11) of th,, New York Bank with enthusiasm. B.40 Itirze ' etttel:id that Eolclx1, 4 the Mr. McCabe Mr. Carpenter had talked with Mr. Clayton, who was nal meeting of the New Jersey Bankers Association, Ce-I'Penter reported that Mr. Clayton said he saw no objec- the Proposed arrangement, that he would prefer to have the 44()111tria tP —the discussed at a regular meeting of the Board, but that keWs °f members of the Board were to be obtained by teleNlieh e 11°111d not be willing to vote for it unless it were taken --11 members of the Board. Atalls kk or vas a discussion of the matter and it was the con- he members of the Board who were present that there , -° objection to complying with Mr. Stevens request, vo be a very desirable director and Chairman, and 770 5/14/48 -4that the a ppointment should be made. Accordingly, Mr. Stevens was appointed Class C director of the Federal Reserve Bank of New York for the remainder of the t hree-year term ending December 31, 1950, and designated Chairman and Federal Reserve Agent at that Bank for the year 1948, and his compensation as such was fixed on the uniform basis fixed for the same position at other Reserve Banks; i.e., at the same amount as the aggregate of fees payable allring the same period to any other director for attendance corresponding to his at meetings of the board of directors, executive mi and other committees coltittees, °I' the board of directors. ChairInan McCabe presented a list of assignments of subjects Consideration by members of the Board of 4°'stIlors, stating that it had d been completed yesterday, that he 4(1 clisellssed it with all of the members of the Board except Messrs. teles and by tl„oexia .ayto, and that he would recommend that it be approved Cln 4 roliolts. The assignments as proposed by Chairman McCabe were "Chairman Economic and monetary policy matters (open tilkts °13erations, discount rates, reserve require : -I-nterest rates, Government finance, interna 2111°IletarY questions). klo/Aio Policies involved in the initiation and recti,,,:th°fe slyliesm. lation and executive orders af- 3. • Supervision of Board's staff. Public relations of the Board of Governors. -5mar "(The Chairman is elected chairman of the Open miket Committee and of its executive committee. The Adv aii11318.11 is also by statute a member of the National Council on International Monetary and FinanV th:roblems and a member of the Advisory Board to rnatter IcP°rt-Import Bank; member committee on N.A.C. sisturst. Chairman of Personnel Committee, with asto the Chairman as his alternate.) "Vice Chairman . Since the Vice Chairman acts in the place of thecb-I 0:e ziXtrInan in his absence, they share the consideration DartiTers sPecifically assigned to the latter, including giress li rlY legislative proposals now pending in Contikes 'J-r1 such manner as they may decide from time to Comm.,(Menlber executive committee of Federal Open Market co-41:ttee for year beginning March 1, 1948, and member 14"ee on N.A.C. matters.) "Mr. Szymczak 1,1 (Alternate, Mr. Draper) ' Relations of Reserve Banks with foreign banks, Etlad, 14';and Governments; staff missions of Reserve Banks ,oard to foreign countries. 8tItut2* International financial institutions and intioas 1 2°118 engaged in foreign banking subject to secblsanch.;: and 25(a) of the Federal Reserve Act; foreign of domestic banks. J. tlt,. suriesRelations with foreign gn central banks and foreign Co 1.1!ember executive committee of Federal Open Market kt, oh' aee for year beginning March 1, 1948; alternate 4,A.e.EttilarratatnerMsc.C)abe on N.A.C.; and member committee on "Mr. Draper (Alternate, M±. Szymczak) 1%010'1, Promotion of better esprit de corps in the organProviding for better contacts between Board and c:;1 soc;: 4ning special meetings of staff, recreational activities, special merit recognition, and deM°re effective career system. 7'2 -6elm 2. Discounts and advances of Reserve Banks; purtha178 1)Y Reserve Banks of securities and bills other elisti:lt,h,roaugh System Open Market Account; questions of tr--J-LlitY of paper for discount or as security for aae zces • (other3. Lending activities of Government agencies 4t .han those in the agricultural field). 11A Operations under section 13b of the Federal serve Act 5. Building operation and maintenance. telit 6. Voluntary pay roll deduction plans for Governbonds. by B0 Federal Reserve Retirement System trustee, elected tee lird as its representative; member Personnel Commit114ti1 February 28, 1949.) "Mr. Evans (Alternate, Mr. Clayton) (bacti ouiAgricultural conditions, including prices, proand markets; and relations concerning these Jecte(3. alld raiiiis-t w -l-th the Department of Agriculture, Farm Credit AdGoveri tion, and other agencies; lending activities of -riat agencies in the agricultural field. Gov° Research programs of Reserve Banks and Board of ration°r8; Publications of the Reserve System in collabothe Chairman's office; call reports of conti other periodical reports of member banks. Iljeserv„ j*, Coordination and development of relations of -L48,8-10ank8 with member banks, nonmember banks, bankeducational institutions, and the genie. T erv. -00fformal liaison between Board and Chairmen of 13aaks. . Preparation of topics for agenda of Federal Advt,i8orp-r ' ereii: : ce 011110 Chairmen's Conference, Presidents' ConSimilar groups in collaboration with the Asco the Chairman. "Mr. Vardaman Mt. Evans) (Alternate, th 41. erer_ Services of Reserve Banks and reimbursement 6.11c1 `'r; -venditures, including Reserve Bank budgets ;°rIal expense reports; examinations of Reserve CltkS; me e e rve, rves for losses; chargeoffs and dividends; zoank stock. 773 -7- orb Establishment, regulation, and discontinuance of ranches and agencies of Reserve Banks; determination district and branch territorial limits. -tens. 3. Clearance and collection systems; currency mat) int erdistrict settlement funds. tors 4. Outside business and other relations of direc100, officers, and employees of Reserve Banks; interq;1-13°€ relations of directors, officers, and employees l ttiellIber banks serving other banks and security dealers; aires to executive officers of member banks; removal of %Ibe etc/rs, officers, and employees of Reserve Banks and 811ch r banks; disposition of criminal charges against Persons. 5. Veterans' problems. When a question arises colas'ilavolves a veteran problem, Mr. Vardaman will be ted or will consult with the member of the Board tiola. assignments include the other aspects of the ques- Z (Member Personnel Committee until February 28, 1949.) "Mr. Clayton 41. (Alternate, Mr. Vardaman) or tleml„ Ad missions to, conditions of, and termination aziks.uershiP of State banks; trust powers for member s 2 ; Supervision and examination of State member 11E1-ttlelirmest1c branches, mergers, consolidations, adl'sser.„- Of capital structure, maintenance of required / 41111:8:es) Payment of interest on deposits in member ,e1)o5itr1ations regarding these matters with Federal rrioo „:4•11eurance Corporation, Reconstruction Finance ' " - :3n, Comptroller of the Currency, State Bank''11 truents, and Bankers Associations. clIthl : J * Loans and investments of member banks, inth tig, acceptances; relations regarding these matters the Currency, Securities and e Comptrollerof Co and other Government agencies. kELler ' Extension and maintenance of credit by brokers, nks, and others for purchasing or carrying eell.rili r n 1341l1es5' Relations under existing law with holding com414'ilin,,.nd affiliates; examinations of such companies and —es; issuance and revocation of voting permits. 5/14/4.8 -8"Personnel Committee (Until February 28, 1949, Messrs. McCabe, Draper, and Vardaman) Bajak:1 ' APPointments of Class 'C' directors of Reserve and the directors of branches who are appointed by Agett°ard; designations of Chairmen and Federal Reserve 8 and appointments of Deputy Chairmen of Reserve tatat, Of ci; qUestions relating to election and qualifications 0114., 1'11" A and Class B directors of Reserve Banks, ing classification of member banks for such elections. piclee2. Approvals of appointments of officers and emtoard,s °f the Reserve Banks requiring action by the meals, Reserve Bank salaries and salary classification is i, ' i trcecutive development plan. (When an appointment ser.17 Ile examination or research department of a Rethe eoBank, it is understood that the recommendation to ortir.ltra. will be made in collaboration with Mr. Clayton Evans, respectively.) • Board's budgets and expenditures. •Travel authorizations. "Committee on N.A.C. Matters inPlesers. McCabe, Eccles, and Szymczak) the The Chairman, the Vice Chairman, and the member of b4.14°T whose assignments include relations with foreign °4 178.-ti 'Tarliters, and Governments will serve as a committee mm lee.t 1. °nal Advisory Council matters. This committee will to, "fore each meeting of the National Advisory Council th '°11sider aelida. what positions should be taken on matters on e 1:7- Committee of the Federal Open Market Committee 044 14eMb (Until March 1, 1949) vt„ Alternates \•) a,„ 4L1.3:11e4a: , Mr. McCabe For Board Members 1. Mr. Evans Mr. Sproul 2. Mr. Vardaman Mr. Eccles 3. Mr. Draper Mr. Szymczak Mr. Williams 1. Mr. Young For Presidents 2. Mr. Gilbert" — -9Upon motion by Mr. Vardaman, the "eignments as recommended by Mt. McCabe Were approved unanimously. SzYmczak then proposed that MT. Draper be designated e's the Itlenlber of the Board to serve on the board of trustees of the ettretlent System of the Federal Reserve Banks. Upon motion by Mr. Szymczak, Mt. Draper was designated as a member of the board of trustees of the Retire„ 1118ht System of the Federal Reserve t3anks, to serve until his successor 18 designated by the Board of Governors. Ilererence was made to a memorandum from Mr. Smead dated 3 1948/ with ' respect to a review of the budgetary procedures the pecieral Reserve Banks, a copy of which had been sent to the 4111bers of the Board to before this meeting, and to a draft of letter ''150hairmen of the Federal Reserve Banks reading as follows: ”011_ Of the topics on the agenda for the forthziltIlksi'-olaference of Chairmen of the Federal Reserve 'Pederal Reserve Bank Budget Procedures'. questions reto ;:ltit: that there are general of the Federal Reserve Banks the Board would like to discuss with the Chairmen of what has been learned from the budgets ' 441 axid 1948 This letter is being sent to the 15 0 ;14' Of all of the Federal Reserve Banks for the t.the Board had in mind in rnitiTis ngt1t7;1-p ()1:414,t-ico): The tn:7 i budgetary procedure governing exIrit!laditAn.e°131Prehensive bllatp -se.L s Of the Reserve Banks was resumed in 1947. he lin:!e us for the year 1948 have been accepted by --va as submitted, with the understanding that, 5/14A8 -10b,, IIring the course of its studies of the budgets for the functions, the Board would explore ways in Ch the budget procedure could be improved. 1940 "As background material for the consideration of the budgets, memoranda and supporting tables were prebY the staff with respect to each function. During abi scussions an attempt was made to find some reasonor formula by which the Board might be placed cl:W°sition to determine whether and to what extent inbudgets exceeded or fell below amounts that st t be regarded as appropriate, having in mind the ' el'vls°rY responsibilities placed upon the Board. clivi.:The 24 functions covered by the budgets may be rorTe_d into two groups: (1) functions which comprise the MOSt part operating services, in many of which which soj I lume of work is largely uncontrollable and in : eff ' rs can be effected only by improved methods, greater 44a or changes in extent of services rendered; functions in which the scope of activities and bY of expenditures are determined in large measure that 11cies adopted by the respective Banks. For reas s onilg , tp the above mentioned memoranda and support1 [,z,,s —les are being furnished you herewith in two voltio/i. ea °Ile relates to the first group of functions menRIlishe 7rlabove and, as they present operating as distinbeilag — , f ,rom general policy problems, the material is submitted to you at this time merely to give you these ; ea of the consideration which has been given to sialztn-1.1.4ctions by the Board. There are, however, very 4tth-ejl'ial differences in the costs of these functions these, rious Federal Reserve Banks and branches and be kept under continuous study. Other volume relates to the second group of "so ous13 and includes information with respect to bank and public relations, auditing, bank ex;' ' 1,941s 11;''s, and research and statistics. Whtle various ;'leba.s— i ve been canvassed as to possible criteria upon ' 1%)1302X of which it could be determined whether the .°,1* 1/1,W exPenditures for these functions are adequate -he exDe er i?.te and whether the results obtained justify >h,a definite conclusions have been 'ales ' • -Lne Board decided, therefore, to bring these t ° -Lie attention of the Chairmen for the purpose 777 5I1 / 8 t, 11°1! enlisting their interest and obtaining their views re'llrespect to an adequate budgetary procedure. Since ResPoneibility for proposed expenditures of the Federal tl:flie Banks as presented in the budgets is shared by Bo- uoards of directors of the Reserve Banks with the v41-1 of Governors, it is felt that the subject is one is peculiarly appropriate for consideration at Orthcom ing Conference. will be readily observed from the material conin the second volume that there are a number of ap4.ces of wide variations among the Banks in the scope ther-2st of the functions. It would be most helpful, the' e °re, if the Chairmen and other directors would study Nm4ctivities and expenses of these functions at their ; ective Banks as set forth in the enclosed studies, in col) ifris°n with those of other Federal Reserve Banks, and -T, Chairmen would be prepared to offer suggestions at the 0 48 tCairmen's Conference with respect to questions such rollowing: tletiv% What objectives are being sought in the various 1)rog ies which comprise a bank and public relations tire ill131 and how can we measure whether the expenditures Ttified by the results obtained? cost cs; What criteria should be applied to the over-all - 8ervices and benefits provided through the per(I'ti1 -c13, e;lunction? rorr " It is Obvious that the growth in expenditures search and statistical work during the last ten Yearee, YEI.%st':8-11 not continue indefinitely. Is there some c1DY which an approximate limit on expenditures , illthil 4- -Lield can be determined? the audii.Are variations in procedures and in details in 1)°1"tealt---1' and examinations departments sufficiently imH7h'o Justify the differences in costs? : e.:thove questions are not listed with a view to , 11 1,1311tir he consideration by the Chairman and boards of Ole Eta-1 's of the Federal Reserve Banks of the topic on Illtis. Zenda for the Chairmen's Conference but rather to the corate t he problems which have been presented in Ilsicleration of the Reserve Banks' budgets. " to the discussion of these questions °varaid el -aman and members of the Board's staff will Ekaa. t inake preliminary statements at the Conference 778 5/14/48 -12It onnection with the general budget procedure and each the functions included in the attached volume two. sert: 4* copy of this letter and its enclosures is being th, 0 the Presidents of all Federal Reserve Banks for information." Upon motion by Mr. Vardaman, the letter to the Chairmen of the Federal Reserve Banks was approved unanimously. There was then presented a memorandum from Mr. Knapp dated 41"1 29, 1948, recommending that the Board request the Division of l'er80411e1 Adm inistration to survey the salary structure in the intNtional offices of other departments and agencies of the Govern- 411t 14 relation to tlietoardis salaries paid in the International Section of Research Division. At the request of the Personnel Corn- the me morandum had been circulated among the members of the 1104r1lbefore this meeting. Upon motion by Mr. Vardaman, the Memorandum was referred to the Personnel Co Mmittee. 411'' Vest stated that he had received from the Federal Re- New York a copy of a letter which that Bank had writto the chairman of the Senate Finance Committee under date of 4131'11 1948, concerning bill H. R. 3810, passed by the House of 1,11)1.etlelltatives, 4 lieserve Bank to amend the Tariff Act to provide that where the 1.81 York had certified multiple rates of kNreror the 1)Ntlt zhc)111d currency of a foreign country, the Treasury De- determine a single rate and apply it to all imported 779 5/14/48 -13- terehezaci. se from that country. Mr, Vest stated that the letter, Ve's 'written by the New York Bank without advance knowledge clr the 13(34rd) favored the retention in the bill of discretion in the lYol‘k Bank to certify one or more rates of exchange as it th°11€11t Prc)Per) and that in addition it opposed the provision of the bill 'which Would require the Treasury Department to determine a et 1181e rate -I -al all cases. He added that he had been advised by the 01 erk of the Senate Finance Committee that no action was schedIlleci regEtrd to the bill and that it was quite doubtful that the bill 11.0111d be acted upon at this session of Congress. tb SzYmczak said that the Board had not taken a position reBet to this legislation, that in discussions prior to 114 197b representatives of the New York Bank and the : _ een understood that the New York Bank's recommendatietls Vith resp ecz to the bill would be confined to that part of tilt bill certifvlh operations of the New York Bank, namely, affected 14cretic3la to y oneo ther more rates of exchange, and that it %1°,h111(1 4Q't take a position with Congress as to whether a single or ti1:111:::iletor:teeas ss ho eu sl sd edberequired in to be applied in determining the case of imported merchandise. He 4(leci that there Was apparently no further action to be taken at '13 tite ana t.ttktiola that the matter was being brought to the Board's tor its information. ?8O 5/14A8 Reference Was was made to a letter from Mr. Sproul, President the Federal Reserve Bank of New York, dated May 11-, 1948, transkittilie a Copy of a questionnaire relating to government lending Nit to him as a member of the advisory committee of a subcommittee the zoover Commission which is studying the organization of the elecittive branch of the Government. Mr. Sproul's letter requested t'tterisa that would aid him in his work as a member of th 'tte°1"4" corn:tit-tee. ad- *. Carpenter stated that material which might be furnished t4 sknlise to the request was being assembled by the staff with '')ac)lifilit in mind that the Board might later receive a request 4rec t trot the Commission for an expression of its views concernN. thetatiAters covered in the questionnaire. Mr. Sz ymezak referred to the action taken by the Board on ch 948, with to the Board's dining rooms and it respect atreecl that the question of further action to be taken by the vith reel, et to the use of the rooms would be discussed in .1.1t1ve session at a later date. .144 liere rence wa 4te Of may 11, tc) 'e4tNI. made to a memorandum prepared by Mr. Thomas with respect to the reserve position reserve City which had been prepared pursuant 114cler tanding at the meeting on April 23, at which the 78I 5/14/48 -1 1"ilitY of increasing reserve requirements of those banks was (118cussQe,. . The memorandum stated that early June would be an aP1)11°151141te tinle for a further increase in reserve requirements at reserve city banks because Treasury operations would add to 111e4lbex' bank reserves during that period, that a drain on reas ill Prospect for the last half of June during which 1 : 1 ta oci rill'e451-1rY balances would be built up from tax receipts, thEtt t'llrther additions to bank reserves were likely during '1144 414lgust. 1.48Cilairillan. McCabe stated that he felt the question of an e B0 Or 14 'reserve requirements of central reserve city banks 4130 the: 1 rtaut that it would be desirable to have all members °ELM present when it was discussed and that he would also s1148st t the tha- further consideration of the matter take place after -eeti 1:1( eir the Federal Open Market Committee next week. _ It Was agreed unanimously that the ;atter would be placed on the docket ,c3r Consideration at a meeting of the noard on Tuesday, May 25, 1948. 14esel's• Exter and Grove reported on their mission to the t lac)tiz, during January - April of this year, which was au- ethti (11; the meeting on December t 11 9, 191[7, for the purpose of Is 4 the l'hilippine Government in drafting legislation for 'ElllizEttion of a Philippine Central Bank. 782 -16flapp reported briefly on the international situation. At Vardaman's request, the meeting then went into exec- session, with Messrs. McCabe, Szymczak, Draper, Evans, and 118.1.4/st, and Mr. Carpenter present. Mr. Vardaman stated that he 11°144 like to discuss at this time the recommendations contained the Zetlorandum dated May 13, 1948 from Mr. Thomas, Director of Division of Research and Statistics, reading as follows: ”, 04+1, -01 connection with the Board's representation interdepartmental exchange rate mission to Pan, it is recommended that Mr. Young, as head of Nr. i'ssion, be allowed a per diem of $20, and that lIslajerseY, as member of the mission, be allowed the die -istaff travel per diem of $8. Mr. Young's per set at this figure to cover personal travel 411(1 also such representation expense of the ..-(111 which may be incurred by him as its head. Sat:he mission is to depart from Washington on ! 'orti;112r'May 15. June 16 is set as the target date 444rea-; mission's return and report. The margin al''°r extra time, in the event that the schedule 141c14 0° tight, is seven to ten days. Travel to tere i;!1,Japan will be in ATC planes. Mission guareza, 'Japan will be provided under Army auspices, 141-gel erlses for living, food and incidentals will be ' rthr°11-gh Army facilities. If, in view of these l'aetli,i 1-"‘ %51, ,e ", Mr. Young's per diem allowance proves exor inadequate, adjustment will be made. the It140111d be advisable, and in the interest of Ot thin's Program of work, to take the opportunity s*,lacil,1",a•Psalese assignment to visit both Shanghai 0 7.74"4 for discussions with central and commercial iYti ( ) 1 representatives. The mission time schedule .rrmit such side trips; in fact, present adto this effect.However, if it is possible -Oltrdt hese visits in it is recommended that the gr8.11t authority for such trips." t 783 viv 7 Mr. Vardaman stated that be saw no reason for providing a cIttrel'elit Per diem for Mr. Young and that if some recognition was to het of the additional expense to which he might be put by 'clf his serving as head of the mission to Japan, he (Mr. 1411.4418, 4) felt that the per diem allowance for both men should be t4 eati,, 84c1 Mr. Young should be allowed an additional amount for '4e.11 ve ' 16 head of the mission. He also expressed the view that 4 $8 per diem proposed for Mr. Hersey was too small. III connection with the latter point, Mr. Evans stated that tt ila 04)ected that Mr. Hersey's living accommodations would be Army facilities in Japan at a greatly reduced cost 1311t th. it the $8 per diem were found to be too small it could be .etecl 1.1Pward. 411telae ttai, 14 4 further discussion, Mr. Vardaman referred to the last Qf t• he second paragraph of the memorandum, and Mr. Evans etIlt • a similar understanding could be had with respect to laelsseV s expenses. He also said that the recommendations con- 'k& the me morandum had to be formulated quickly because the 1 414' ao4.14'8•e4ving on Saturday, May 15, and that if it were found ttk 151e chelage in the arrangement was necessary such a change he taxie. Y784 viv At the conclusion of the discussion, the recommendations contained in Mr. Thomas' memorandum were approved unanimously, with the understanding that should Mr. Hersey's Per diem allowance prove to be inadequate, the matter would be considered by the Board. 14 connection with the above matter, Mr. Vardaman expressed t1), ()pillion, that in the face of present costs of travel, it was entirell Unrealistic to ask members of the Board and the staff to tr4Irel °II the per diem allowances permitted by the travel regulati°118 4nd he suggested that the Board give consideration to ineteUing these allowances. After discussion, it was understood that the new Personnel Committee consistOf Messrs. McCabe, Draper, and VardaIllan, would submit a recommendation with r jsPect to changes that might be made in ,u.e per diem allowances provided in the zoard's travel regulations. Mittlates of actions taken by the Board of Governors of the Ileserve System on May 13, 1948, were approved unanimously. t}.1. Memorandum dated April 29/ 1948, from Mr. Thomas, Director Dtvision of Research and Statistics, recommending an inN 4 the basic salary of John Exter, an economist in that Di1111' *QM $5,905.20 to $6,384 per annum/ effective May 16, 1948. Approved unanimously. tlettlor a4dum dated April 29, 1948, from Mr. Thomas, Director f Research and Statistics, recommending an increase 12104 c) '785 -19.tle basic salary of David L. Grove, an economist in that Divi- 1.011 fl'°111 $5,905.2o to $6,384 per annum, effective May 16, 1948. Approved unanimously. MeMorandum dated May 7, 1948, from Mr. Thomas, Director c)r tile Di 8104 of Research and Statistics, recommending increases the basic annual salaries of the following employees 4that B. 'vision, effective May 16, 1948: 14.4,11 Designation R • MacLenls Treso.ctt Library Assistant Library Aid Salary Increase To From $2,544.48 $2,644.8o 2,469.24 21394.00 Approved unanimously. r the tMell°randum dated May 13, 1948, from Mr. Thomas, Director ivisi°n of Research and Statistics, recommending the apc514tIrkeixt William J. Powers as a research assistant in that the °II a temporary indefinite basis, with basic salary at Qf ,qizttea $3,021 per annum, effective May 16, 1948. 11 14e 14 The memo- 80 stated that it was contemplated that Mr. Powers, who tett ' el'arY appointment for work on a special project in 415 ai°4 cif tank Operations expiring at the close of business ) vow —(1 becc)me a member of the Federal Reserve retirement Approved unanimously. 86 -20dated May 12, 1948, from Mr. Thomas, Director Si c't the l'es1 of Research and Statistics, recommending that the tti(31.1 of Mrs. Caroline Hamill Cagle, an economist in that 134181°4) be accepted to be effective, in accordance with her re- test' at tlie close of business July 27, 1948, with the understand14 'that May 12) 1948, would be her last day at the office. Approved unanimously. Iviellaorandura dated May 13, 1948, from Mr. Bethea, Director or the ttvision of Administrative Services, recommending, for the rettsolis stated in the memorandum, that Mrs. Flora J. Griffith: Ciller lielePlIone Operator in that Division, be advanced additional laot to exceed 30 days, with the understanding that the 7::::11relaced would be charged against sick leave subsequently Approved unanimously. Letter dated May 14, 1948, to Mr. Latham, Vice President Feaer ea Reserve Bank of Boston, reading as follows: cerriirth. nlithis 8 1A reply to your letter of May 5Bankcon111R ir",a, Isevisions which the Connecticut State hee (rtraerit Proposes to make in the Form for Pub ,.'''''atement of Condition, revised May 1914-5. 1111R D't -44°11g the revisions proposed by the State Bank*tezaseiel-tin n,, enty it is noted that the transposition of 1741 23 e'lld 6 of 'Assets', the deletion of items 15 a a Itnd the rearrangement and rewording of memo'47, and 48 bring the Connecticut form 987 -21closer conformity with form F. R. 105e. Except ce'r inclusion of the word 'valuation' immediately pre:11g 'reserves', the optional memoranda items 33(a) as proposed by the State Banking Department are with optional items which the Board will use por,L'S laid-year call. It is further noted that the proOn of item 25 contemplates breaking capital soc)ck into common and preferred stock only, which is otrnat different from the Board's form, but that only ser„:44k in Connecticut, not a member of the Federal Reit ''SYsteal, 1,, now has preferred stock outstanding. Thus ille"--mears that the revisions proposed would not result 8114a,ifference of substance between the State form 'ft:e Board's requirements. ti04 In the circumstances and in view of your recommenda194' the Board, supplementing its letter of November 6, the °4 the same subject, will interpose no objection to or c: 01.cerlePtance, until further notice, of the publication ila ti ltion reports of Connecticut State member banks lette;°dance with the proposed form enclosed with your Approved unanimously. the Memorandum dated May 14, 1948, from Mr. Thomas, Director of bivisioxi of A4°q•Ette 1111 and Statistics, recommending that Mr. Young, Research birector of that Division, be granted an advance of $1,000 rierseY, an economist in that Division, be granted an or t411' ttil) $300, to both advances to cover expenses in connection with Japan. Approved unsnimously. Secretar .
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