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1095 A meeting of the Board of Governors of the Federal Reserve 83rateral)ms held in Washington on Saturday, May 30, 1942, at 10:30 3.04. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Bethea, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereintter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the PelereaReserve System held on May 2 1942, were approved unani9, blokle4. the lieniorandum dated May 28, 1942, from Mr. Paulger, Chief of kiriejon of Examinations, recommending that the salary of Fred , lic)1143 'an Assistant Federal Reserve Examiner in that Division, be •Llitrea sed from $2,800 to $2,900 per annum, effective June 16, 1942. Approved unanimously. or Letter to Mr. Williams, President of the Federal Reserve Bank delPhia, reading as follows: O' "Referring to your letter of May 23, 1942, the Board °Ifernors approves payment of salaries to the follow19Z2°fricers of the Bank for the year beginning May 1, Alf'at the rates fixed by your Board of Directors. -red u rarik JAL- Williams, President $22,000 Ilka. II Drinnen, First Vice President 16,000 President M cCreedy, Assistant Vice 9,000 e°1eman, Assistant Vice President 5,000 1096 5/30/42 -2njaTss M. Toy, Assistant Cashier $8,000 1411111P M. Poorman, Auditor 7,000 acCoy, Brittain, Evans and Lewis (Retainer) 2,500 The Board also rate $3,500 the approves a salary at of Per an for Arthur E. Post, Secretary, for the period ! is.Y 1 to June 30 1942, in addition to his salary at the rate °J-4' 6, 44. 500 per annum as Assistant Federal Reserve Agent. "Governor Szymczak talked with you about the proPosed increases in salaries of the officers named in .7 ur letter of May 23, and, in accordance with the un?retanding arrived at at that time, the Board has de! 4 rred action on the proposed increases. Pending action icereon, the Board approves payment of salaries to Messrs. rat henRY' Davis, Hill, Sienkiewicz and Donaldson at the p. es in effect for such officers on April 30, 1942, if J-1-Xed Your Board of Directors at such rates." w Approved unanimously. Letter to Mr. Williams, President of the Federal Reserve Bank Of ?bile.. clelphia, reading as follows: to "Referring to your letter of May 23, 1942, this is pa advlse you that the Board of Governors approves the .llent of $8,000, as granted by your Board of Directors, to , ret:11PPleillent Mr. Post's retirement allowance upon his lrement on July 1, 1942." Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of ago, reading as follows: tein "The Board of Governors of the Federal Reserve Sysbi. has considered the recommendation of the Board of 191:ecto _ of your Bank contained in your letter of May or t194r2 and pursuant to the provisions of Section 19 Chielle Federal Reserve Act grants permission to 'South the :g0 Savings Bank', Chicago, Illinois, to maintain be "le reserves against deposits as are required to date 4.11tained by reserve city banks, effective as of the °I' its admission to membership. I 097 5/30/42 — — "Please advise the bank of the Board's action in ''uls.matter, calling its attention to the fact that such ermission is subject to revocation at any time by the °ard of Governors of the Federal Reserve System." t Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, readfollows: m "In connection with the execution of guarantee agree, ent8 on behalf of the United States Maritime Commission L 2snant to Executive Order No. 9112, the Board has received t from the Maritime Commission a letter addressed ; b all Federal Reserve Banks dated May 28, 1942, signed re Ur. R. E. Anderson, Director of Finance, designating ter?sentatives to act for the Maritime Commission under B e Instructions of the Commission to all Federal Reserve mrs dated May 7, Pursuant to 1942. the request of the m4 ItiMe Commission a copy of this letter is being trans--Ltted herewith." Approved unanimously. Memor andum dated May 29, 1942, from Mr. Vest, Assistant General Ntse l reading as ' follows: lir "The tlX8 thatattached letter from the Federal Advisory Council all war contracts awarded by War and Navy DepartprX and Maritime Commission contain the 'no setoff clause'or j eting an assignee of any such contract against claims ot ,Lle G overnment against the contractor arising independently till! contract. all "The Federal Advisory Council letter recognizes that arld Co tracts of the Navy Department do include such clause, Na ne have confirmed this informally by checking with the De partment. thoTbe Maritime Commission advises that it has no autractuY under the law to insert this clause in its conOn the' and this confirms our examination of the statute subject. 1098 5130/42 -4- "We have been advised informally that it is the 1?°licY of the War Department, with rare exceptions, to Include the setoff clause in all contracts unless the aeslgnment of claims thereunder is expressly forbidden. t , ,"In order to obtain an authoritative statement from Aile.War Department which may be passed on to the Federal 1,dvleorY Council, it is suggested that the attached letter ue sent to the Department,. m "When a reply has been received from the War Depart, the Board will be in a position to inform the AdCouncil as to the situation with respect to this atter. The Board can then also submit copies of the cor.es_Pondence to the Comptroller of the Currency for his rormation pursuant to the suggestion contained in the aet Paragraph of the letter from the Advisory Council." T Approved unanimously. Letter to Mr. K. H. Dickson, Assistant Cashier of The First National, 4ahk of Westwood, New Jersey, reading as follows: oflf "This will acknowledge and thank you for your letter Wi-nr 8Y 1942, commenting on the section of Regulation that relates to 'insurance policy loans'. ma "That section, as it now stands, is intended prith12-1Y to take proper account of the fact that as a rule all;right of a policyholder to borrow from his life inCompany is a right which he possesses by reason the i contract between the company and himself. This the e Matter, however, is being re-examined as part of thateTitirluing study of the regulation and its operations atild:Ls being carried on by the Board. As a part of this taZ,Y°ur commenl-,s, together with a number of others give ilave been received from bankers and others, will be n careful consideration." Approved unanimously, together with substantially similar letters to the following: 141% Phelan, Assistant Vice President of the Federal Reserve Bank of New York, Mr. John H. Lucas, Vice President of the PeoplesPittsburgh Trust Company, Pittsburgh, Pennsylvania, 1099 5130/42 -5Mr. Mills B. Lane, Jr., First Vice President of The Citizens and Southern National Bank, Atlanta, Georgia, Mr. George B. Power, Secretary of the Mississippi Bankers Association, Jackson, Mississippi, Mr. Dale Graham, Vice President and Cashier of The National Bank of Commerce, New Orleans, Louisiana, Mr. John Burgess, Vice President of the Northwestern National Bank and Trust Company, Minneapolis, Minnesota, and Mr. Roblin H. Davis, President of The Denver National Bank, Denver, Colorado. Letter to Mr. Raymond C. Willoughby, Managing Editor of Nation's ksities 8) Washington, D. C., reading as follows: ,_ "Reference is made to your letter of May 18 addressed ° 11 Chairman Eccles relative to bank debit figures used in ' Preparation of 'The Map of the Nation's Business'. or"Although there may be a little delay in the release ba :the first monthly statement of bank debits on the new t11 : 1, it is hoped thereafter that it will be released by to;8 2th or each month. Mr. Greene is on the mailing list the new monthly statement and a copy thereof will be his , 1 L( to him promptly upon release. If desired, he or the ePresentative may obtain a copy of the statement at ketitBoard,s offices immediately upon release; the stateare released to the press at the Board's offices at 41)0!are same time that they are placed in the mails. While Mr. Greene does not propose to release the ' tieve'es in advance of their publication by the Board, the ;theless the Board does not think it desirable that incli:deral Reserve Banks give out district figures upon 14 a clual requests in advance of their general release. ' his IV event, this procedure probably would not result in the ' l e?eiving the figures for all districts in advance of it .release of the complete statement in Washington, since tirsil!lanned to issue the statement in Washington on the able business day after the district figures become availat all of the respective Federal Reserve Banks. You Z 1100 5/M2 -6- ThaY be sure that the Board will make every effort to obtain the figures from all Federal Reserve Banks and rke them available in time for Mr. Greene to use the tna In preparing his manuscript for the printer. In , 1 ue.oircumastances the Board does not feel that it would e Justified in departing from its usual practice in the elease of figures for publication." Approved unanimously, together with a letter to the Presidents of all the Federal Reserve Banks transmitting copies Of the above letter. Thereupon the meeting adjourned. Assistant Secretary. Chairman.
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