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824 Minutes of actions taken by the Board of Governors of the ?elier IQ- Reserve System on Friday, May 21, 1948. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board 141-alltes of actions taken by the Board of Governors of the 1'81 Re serve System on May 20, 1948, were approved unanimously. Telegrams to the Federal Reserve Banks of Boston, New York, b, -411atieiniet, Atlanta, and San Francisco stating that the Board ap- :7: 1 8 the est ablishment without change by the Federal Reserve Bank lir.ellei-sco on May 18, by the Federal Reserve Banks of New York, Et/ielphi tkttti and Atlanta on May 20, 1948, and by the Federal Reserve c)st°13, today of the rates of discount and purchase in their schedules. Approved unanimously. Letter , t„.0 Dr. Frederic D. Chapman, 1831i- Eye Street, N. • C., reading as follows: if4'411e letter will confirm the arrangement made • thli°1113Y the Division of Personnel Administration • you-8 130ard with regard to the physical examination . of . 'such prospective employees of the Board of 825 -2It t(k'vernors of the Federal Reserve System as it may send i° You for that purpose. In each instance the person who t8 t v ."be examined will be given a letter of introduction and will be directed to report to your office at such time as you may fix for the examination. ti "It is contemplated that you will make each examinasc :pbt in the manner required to determine whether the permed would be eligible for ordinary life insur1, at the normal rate, and it is understood that you or'make and preserve in your office a detailed record 44,i'le examination on a form of record of medical exon furnished by the Board. ada "After the examination has been completed, you will ess a letter to the Board stating whether, on the be.j of such examination, you approve the person examPeci,,,,,,for employment by the Board of Governors of the al Reserve System. If the results of the examinaPea, Etre unfavorable, you will address a letter to the rmr-ral Reserve Board stating the reasons for the uncZable report, which, if any, of the unsatisfactory efre'tions can be corrected, and the steps necessary to effect such correction. is also understood that if at any time the Board 5ire tion,' l es a detailed report of the results of your examina41sh °f Prospective employee of the Board, you will fursuch report promptly. Or G:Y°1-1r fee for each examination and report to the Board re(111-ernors of the Federal Reserve System, including, if a detailed report with regard to the examination, IleT4 ;e 10.00, plus an additional fee of $5.00 where it is rp--h e^rY to make a Wassermann Test on Cafeteria employees. N's -es will be payable upon submission of proper voucher. it is understood that you will be available to pay I'iste,%°11a1 visits to the Board at the request of the DiOf be Personnel Administration and that you will also that Et'lable for call to take care of any accident cases `'lqt: i cellr on the Board's premises. The fee for such will be at the rate of $5.00 per visit payable submission of proper voucher. der ii that its records may be complete, it will , a at )IlitTr bei%; you will address a letter to the Board 111g the arrangements set forth above." °Qca: Approved unanimously, together with the following letter to Dr. E. Osmun Barr, 900 Seventeenth Street, N. W., Washington, D. C.: 826 -3te "The Board of Governors of the Federal Reserve Sysh5 decided to discontinue the arrangement made with stated in our letter of December 11, 1934, with e gard to making the physical examination of prospective zpioyees "We will be glad to pick up the records of the ex1tions made by you if you will advise us when they 11 be available. We appreciate the services rendered in the past." Letter to Mr. Latham, Vice President of the Federal Reserve Boston, reading as follows: let,"In accordance with the request contained in your te 'er of May 14, 1948, the Board approves the appointeZ t °Is William Clifford Gittins as an assistant exedIrTer for the Federal Reserve Bank of Boston. Please co ; se us of the date upon which the appointment be-&&es effective." Approved unanimously. ciev Letter to Mr. Gidney, President of the Federal Reserve Bank elelld, reading as follows: tit"In accordance with your letter of May 13, 1948 tiEti,°Etrd approves the payment of salary to Wilbur T. Der'e.s Counsel and Secretary at the rate of $8,000 or $TaIllua, and the payment of a retainer at the rate 4/4 Tb20() Per annum to the firm of Squire, Sanders Ices -4-PseY for advisory and consultative legal serv" the period May 1, 1948 to April 30, 1949, itv ,I' „ usf°1 tire. "It s 1)414 t % 1 ° the tzeci lees in %).1re-t,2' the -,Lors.tt understood that extra compensation may be firm of Squire, Sanders and Dempsey for litigation and special matters if authordirectors and approved by the Beard of Approved unanimously. 627 Letter to Mr. Logan, Vice President of the Federal Reserve 13arat or Rev York, reading as follows: slik "Reference is made to your letter of May 14, 1948, s—Illitting the request of The Syracuse Trust Company, or acuse, New York, for approval of the establishment pl. a branch in Tully, New York, in connection with the °P°Bed absorption of The First National Bank of Tully. "In view of your recommendation, the Board of Governors braz aPProves the establishment and operation of a eh in Tully, New York, by The Syracuse Trust Com3r), Syracuse, New York, provided that the proposed git , rption be carried out substantially in accordance or thePlan submitted, and provided prior approval vithhe aPPropriate State authorities is obtained, and Bawl,the understanding that Counsel for the Reserve or-4,1fill review and satisfy himself as to the legality lAs1, 1111 steps taken to effect the absorption and estab4 the branch." lt !I Approved unanimously. Telegram to Mr. Volberg, Vice President of the Federal ReSari Francisco, reading as follows: 4111, "Relet may 10. In view your recommendation Board 40" establishment and operation of branch in Galt, f0rl-11°rIlia, by Farmers & Merchants Bank of Lodi, CalizaolitT,8') Provided such branch is established within three iti:s from March 30, 1948, as required by State authorIQ' and with understanding that counsel for Reserve or /1111 review and satisfy himself as to the legality 411 steps taken to establish branch." Approved unanimously. Letter e 1)1 _ to Mr. Leach, Chairman, Committee on Operations, Con- or Presidents, c//o Federal Reserve Bank of Richmond, readroliovs: 828 5/4/48 -5- fteference is made to your letter of April 30, 1948, Llich you state that recommendations for amendments to f: L°ss Sharing Agreement contained in the report of the ance Committee of the Federal Reserve Banks dated Deslir cember 31, 1947, were approved by the Conference of Pre sidents held February 25-26, 1948. ra_ The proposed amendments to the Loss Sharing Agreet;:tare approved by the Board. It is understood that tor Insurance Committee will prepare a draft of an amendae,„Y agreement for submission to and execution by the Re'rye Banks." Approved unanimously. tee 1011. Letter to the Honorable Charles W. Tobey, Chairman, Commitand Currency, United States Senate, reading as fol- "For your information there is enclosed a copy of 1,ecie'50lUtion adopted by the Executive Committee of the thral Advisory Council on May 17, 1948, relating to 'Proposed amendment to H. R. 2799." Approved unanimously, together with similar letters to the Honorable A. L. M. Wiggins, Under Secretary of the TreasurY, and the Honorable Maple T. Harl, Chairman of the Federal Deposit Insurance Corporation. The resolution referred to in the letter read as follows: 7.99 connection with the proposed amendment -(:) 001.1,:ihe Executive Committee of the Federal Advisory in agreement with the Board of Governors tut il,'ederal Reserve System that the following three —l es of the proposed amendment are undesirable: thes,. Section 3 of the amendment would authorize Se of the Treasury to purchase up to $1 110.4kR7' Of the Obligations issued by the Home Loan sholj-Li; If such authorization is provided at all, it -be limited to well defined emergency situations. ytez-.0is -6se„ "2. Section 6 of the amendment would direct the , -cretarY of the Treasury to loan to the Federal Sayarid Loan Insurance Corporation up to $750 million, Qe termined by the Rome Loan Bank Board. It is apTriate that the Federal Savings and Loan Insurance t rPoration, as a Government Corporation, should obbletill itS funds from the Treasury; but it should first m_ required to build up adequate reserves to avoid an '`u-clecessary burden on the Treasury. sh 3. Section 8 of the amendment would make insured accounts of savings and loan associations lawful arvestments for fiduciary and public funds. Such shares rt,4°t appropriate investments for such funds, but the lepthat they were approved as such would convey a missense of liquidity to other investors." lowa: Letter to the Comptroller of the Currency reading as fol- ora "It is respectfully requested that you place an pl:rwith the Bureau of Engraving and Printing, supilai ting the order of June 19, 1947, for the printFederal Reserve notes of the Federal Reserve be f Atlanta in the amount and denomination stated Denomination $20 Number of sheets 72,000 Amount $17,280,000" Approved unanimous Secretary. Chairman.
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