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1554 Minutes of actions taken by the Board of Governors of the Pederal Reserve System on Friday, November 14, 1947. PRESENT: Mr. Mr. Mr. Mr. Mr. Szymczak, Chairman pro tern Draper Evans Vardaman Clayton 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 val Reserve System on November 13, 1947, were approved unanizousiy. Telegrams to the Federal Reserve Banks of New York, Cleve) Richmond, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco stating that the Board approves the establishment with°ut change by the Federal Reserve Banks of St. Louis and San Pranci ' sec) on November 12, by the Federal Reserve Banks of New York, Cleve], End) Richmond, Chicago, Minneapolis, and Kansas City on NoIreraber 13, 1947, and by the Federal Reserve Bank of Dallas today of the rates of discount and purchase in their existing schedules. Approved unanimously. Telegram to Mr. Leedy, President of the Federal Reserve Bank °tKalisas City, reading as follows: 0 1Lyour letter forwarding 1948 budget you state Your ; d informally agreed it would be necessary that a- substantially general cost-of-living salary adjustment 1555 /14/47 -2- amounting to roughly 5 per cent be made at or near first of next year and that allowance for any such adjustment has not been made in 1948 budget. Aside from the question Of Policy involved in authorizing such an adjustment, it 16 Important that budgets represent as nearly as possible actual and necessary expenditures to be incurred and if You ..r Bank now contemplates general increase in salaries which will not be offset through turnover of employees, ”c., will appreciate your wiring Board as early as praczicable next week changes which such proposed increases will make in each function and expense unit in budget as s ubmitted." Approved unanimously. Letter to Mr. Willett, First Vice President of the Federal Reserve Batik of Boston, reading as follows: "This refers to your letter of November 6 regarding , e Penalty of $298.41 incurred by Bar Harbor Banking and e uSt Company, Bar Harbor, Maine, as a result of a deftlencY in reserves for the period ended October 31, 1947. "In the circumstances set forth in your letter rePrling the confusion caused by fires in the disaster drea, the Board authorizes your Bank not to make the assessmen t.ft j Approved unanimously. Letter to Mr. Diercks, Vice President of the Federal Re41*1Te Bank of Chicago, reading as follows: "Reference is made to your letter of November 5, submitting the request of First Trust & Savings :nk or Kankakee, Kankakee, Illinois, for approval, ter the provisions of Section 24A of the Federal reserve Act, of an expenditure of approximately.$200,000 f remodeling its banking premises and installing new _ culares and equipment. It is noted that the bank has uillterown its present quarters, which have not been resince 1918, and that bank building and furniture d and fixtures have been charged down to $30,000 and $1, 19 r 1556 11/14/47 -3- reepectively, whereas the common capital of the bank is 200,000. "In view of the circumstances and your favorable recommendation the Board of Governors approves the additional investment of approximately $200,000 as proposed." Approved unanimously. Letter to Mr. Volberg, Vice President of the Federal Reserve Bel* of San Francisco, reading as follows: "In view of the recommendation contained in your letter of November 6, 1947, the Board of Governors further extends until January 6, 1948, the time within which the American Trust Company, San Francisco, California, may tablish the branch at Alhambra Boulevard and Broadway treet, Sacramento, California, as approved by the Board under date of January 29, 1947." r Approved unanimously. Memoranda dated November 12, 1947, fram Mr. Smead, Director °f the 11. ,-avision of Bank Operations, recommending, for the reasons Stated in the memoranda, that $10500 be added to the item of Print- irig krid Binding and $250 to the item of Telephone and Telegraph in the 1947 non-personal budget of that Division. Approved unanimously. Secretary.
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