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735 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Friday, May 161 1947. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak Draper Evans Vardaman Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman Minutes of actions taken by the Board of Governors of the Reserve System on May 152 1947, were approved unanimously. Telegrams to the Federal Reserve Banks of New York, PhiladelPhie, Chicago, St. Louis, and San Francisco stating that the B°11rd approves the establishment without change by the Federal Re" I've Banks of St. Louis and San Francisco on May 14, and by the ederal Reserve Banks of New York, Philadelphia, and Chicago on 144tY 15, 19472 of the rates of discount and purchase in their exiettag schedules. Approved unanimously. Memorandum dated May 13, 1947, from Mr. Thomas, Director of the Division of Research and Statistics, recommending that increases 14 the basic annual salaries of the following employees in that Di- ' °1eion be approved effective May 18, 1947: '736 5/16/47 -2- Designation George H. Cleaver Plorence Jaffy Saul B. Klaman Wile4yn Morelle Economist Economist Economist Economist Salary Increase From To $3,397.20 $3,522.60 3,397.20 3,648.00 3,397.20 3,648.00 3,397.20 3,522.60 Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank of Richmond, reading as follows: "The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Richmond and its Branches for the period June 1, 1947, through May 31, 1948, at the rates indicated, which are the rates fixed by the Board of Directors, as reported in your letter Of May 12, 1947: Annual Salary Title "Name Hugh Leach $25,000 President John S. Walden, Jr. First Vice President 18,000 Edward A. Wayne 14,000 Vice President Roger W. Mercer 10,000 Vice President Claude L. Guthrie 10,000 Vice President and Cashier Elbert A. Kincaid 10,000 Vice President Clair B. Strathy 9,000 Vice President and Secretary K. Brantley Watson Director of Personnel 9,000 Edward Waller, Jr. Assistant Cashier 7,800 Albert S. Johnstone Assistant Cashier 6,600 Joseph M. Nowlan 6,900 Assistant Cashier Upton S. Martin 6,900 Assistant Cashier WYtbe B. Wakeham 6,600 Assistant Cashier R. S. Brock, Jr. 8,000 Auditor Maxwell G. Wallace Counsel 10,000 N. L. Armistead 7,500 Chief Examiner Baltimore Branch W. R. Milford 14,000 Vice President John R. Cupit 8,400 Cashier John A. Johnston 6,600 Assistant Cashier Donald F. Hagner 6,600 Assistant Cashier Adolph C. Wienert 6,000 Assistant Cashier 737 -3Title Charlotte Branch Vice President Robert L. Cherry Cashier Stanhope A. Ligon Robert L. Honeycutt Assistant Cashier "Name Annual Salary $9,000 7,000 6,000" Approved unanimously. Letter to Mr. McLarin, President of the Federal Reserve Bank of Atlanta, reading as follows: "The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Atlanta and its Branches for the period June 1, 1947, through May 31) 1948, at the rates indicated, which are the rates fixed by the Board of Directors as reported in your letter of May 9, 1947: Annual Salary Title Name $25,000 W. S. McLarin, Jr. President L. M. Clark 16,000 First Vice President V. K. Bowman 10,000 Vice President H. F. Conniff 8,000 Vice President J. E. Denmark 8,000 Vice President 8,000 S. P. Schuessler Vice President 6,500 J. H. Bowden Assistant Vice President C. R. Camp 7,100 Assistant Vice President F. H. Martin 5,500 Assistant Vice President I. H. Martin 5,000 Assistant Vice President 7,200 3 . R. McCravey, Jr. Assistant Vice President E. C. Rainey 5,000 Assistant Vice President W. E. Pike 7,200 General Auditor 8,500 E. L. Rauber Director of Research 8,000 Harold T. Patterson Counsel Birmingham Branch P. L. T. Beavers 9,000 Vice President H. C. Frazer 6,300 Manager Assistant 6,000 H. J. Urquhart Cashier Leo W. Starr 4,800 Assistant Cashier Jacksonville Branch T. A. Lanford 8,500 Vice President T. C. Clark 6,000 Cashier C. Mason Ford 4,000 Assistant Cashier 4,800 Assistant Cashier J e W. Snyder 738 5/16/47 -4"Name Annual Salary Title Nashville Branch Joel B. Fort, Jr. Vice President $ 8,000 E. R. Harrison Cashier 6,000 Robert E. Moody Assistant Cashier 4,800 New Orleans Branch E. P. Paris Vice President 12,500 M. L. Shaw Assistant Manager 7,500 W. H. Sewell Cashier 6,000 L. Y. Chapman Assistant Cashier 5,100 F. C. Vasterling Assistant Cashier 4,800 "The Board of Governors also approves the appointment of Vice President J. E. Denmark as an Examiner for the Federal Reserve Bank of Atlanta and his designation as the officer in charge of the Bank Examinations Department, effective June 1, 1947" Approved unanimously, together with another letter to Mr. McLarin reading as follows: "In a separate letter of this same date, you are being advised that the Board has approved (1) the payment of salaries to the officers of your Bank as reported in your letter of May 9, 1947 and (2) the appointment of Vice President J. E. Denmark as an examiner for the Federal Reserve Bank of Atlanta and his designation as the officer in charge of the Bank Examinations Department, effective June 1, 1947. "It has been noted from your letter of April 28, 1947 to Governor Evans that, although the program included the transfer of Mr. Denmark from General Auditor to Vice President in Charge of Examinations, you contemplated that First Vice President Clark would be responsible to the President for the bank examinations function, among other functions. "In the Board's letter of August 20, 1936 to Mr. Newton, in connection with the transfer of the nonstatutory duties of the Federal Reserve Agents to the banking departments, it was stated: 'The Vice President in charge of examinations will be designated as an examiner for the Federal reserve bank and the Board would expect that official to be responsible directly 739 5/16/47 -5- 'to the president of the bank and not to another Vice President or other officer. .. .° Accordingly, the Board's approval of Mr. Denmark as the officer in charge of the Bank Examinations Department has been given with the understanding that he will be responsible in that function directly to the President Of the Bank and not to any other officer." Letter to Mr. Wiltse, Vice President of the Federal Reserve Bank of New York, reading as follows: "Reference is made to your letter of May 9, 1947, submitting certified copies of resolutions adopted by the board of directors of the Cranford Trust Company, Cranford, New Jersey, signifying its intention to withdraw from membership in the Federal Reserve System and requesting waiver of the six months' notice usually required. "In view of your recommendation, the Board of Governors waives the usual requirement of six months' notice as requested. Accordingly, upon surrender of the Federal Reserve Bank stock issued to the Cranford Trust Company, the Federal Reserve Bank is authorized to cancel such stock and make appropriate refund thereon. It is noted from previous correspondence that the bank has made application to the Federal Deposit Insurance Corporation for continuation of insurance as a nonmember bank. In this connection, attention is called to the fact that the bank will have four months from the date of this letter to accomplish termination of its membership (F.R. L.S. #3548). "Please advise the Board of Governors when cancellation is effective and refund is made. The Certificate ?f Membership issued to the bank should also be obtained, lf possible, and forwarded to the Board. The State Commissioner of Banking and Insurance should be advised promptly when the bank's withdrawal from membership has been effected and given the reasons therefor, if desired." Approved unanimously. 740 5/14/47 Letter to Mr. Sproul, Chairman of the Conference of Presidents, reading as follows: "The Board has recently had occasion to review the outstanding authorization as to the proportion of expense of operating a cafeteria which may be absorbed by a Federal Reserve Bank, as set forth in its letters of April 6, 1926, and May 14, 1946 (F.R.L.S. #3181). "As a result of this review the Board has decided to make no change at this time in the authorization permitting absorption of up to 50 per cent of the cost of operating a cafeteria, as shown by the functional expense report (Form F. R. 634). The question has been raised as to whether the practice of furnishing free meals to certain classes of employees and also of charging employees for meals whether or not they eat in the dining room or cafeteria should be discontinued. Consideration has been given to the practicability of a Procedure at all Federal Reserve Banks whereby (1) all employees, including cafeteria employees, are charged for meals served them in the Bank's dining room or cafeteria, except for meals that are chargeable to the 'Educational and welfare,' and 'Bank and public relations' expense units in the functional expense report (Form F. R. 634), and (2) each meal is paid for or charged to an account when served, except that cafeteria employees may be charged a flat rate for meals. It would be understood that the standard procedure would not preclude the selling of meal tickets, or, in case the Bank or branch does not operate a regular cafeteria, the furnishing of free coffee, sugar, cream, etc., as is being done at some of the branches. "Before coming to a decision on the matter the Board would like to have the benefit of the views of the various Federal Reserve Banks, and accordingly it will be appreciated if you will place the matter on the agenda for the forthcoming Presidents' Conference." Approved unanimously. Telegram to Mr. Young, President of the Federal Reserve Bank °I' Chicago, reading as follows: 741 5/16/47 -7_ "Retel today regarding custody of short-term Government securities for nonmember banks. Board will be glad to consider any views on this subject Presidents may express at their forthcoming Conference. In circumstances your Bank may wish to delay requiring the removal of such securities until after June conference." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks reading as follows: "There is enclosed a copy of revised form F. R. 414, 'Computation of Reserve to be Carried with the Federal Reserve Bank by Member Banks'. This form gives effect to the termination effective July 1, 1947, of the exemption of war loan deposits from reserve requirements. As you know, the Act of April 13, 1943, provided that such deposits were to be exempt from reserve requirements until six months after the cessation of hostilities of World War II, and the President on December 31, 1946, proclaimed the cessation of hostilities as of noon on that date. "You will note that the only change in form F. R. 414 (except minor changes in the references to call reports) is the elimination of former item 2(c), 'War loan deposits of United States Government', which appears on the present form under the heading 'Deductions allowed computing reserves'. A corresponding change should, of course, be made in the forms supplied by your Bank to member banks for their use in submitting weekly and semimonthly reports of deposits for reserve computation purposes. To avoid confusion in reporting, you may wish to defer distributing the revised report forms to member banks until the close of the last reserve computation Periods in which war loan deposits will be exempt from reserve requirements, but you may wish to advise member tanks in the near future of the change in the reserve computation formula which will go into effect on July 1, 1947. "No change is being made for the time being in form F. R. 413 on which the Federal Reserve Banks submit semi- 742 5/16/47 —8— "monthly summaries of member bank deposits, reserves, and borrowings from Federal Reserve Bank. However, no figures are to be shown against the caption 'War loan deposits' beginning with the report covering the period ended on July 15, 1947." Approved unanimously. Chairman.
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