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3521. A meeting of the Federal Reserve Board was held in Washing ton °11 Saturday, November 17, 1954, at 10:45 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Governor Thomas, Vice Governor Hamlin Miller James Szywczak O'Connor Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Wyatt, General Counsel Governor Eccles referred to the informal consideration which had be" given by members of the Board to the statement addressed by the ieral Advisory Council to all member banks on September 26, 1934, and t0 the Vestion as to whether the Board should make any reference to the state 1Pent at the meeting of the Federal Advisory Council next week or to the d eeirabili+ of reaching an understanding with the Council as to the 14'"edur ticts. -e_ to be followe d in the future in connection with its recommendaAt the suggestion of the Governor each member present expressed his re eling with regard to the matter. This was followed by a general lcm which developed the consensus that the Board should not enter co ntroversy with the Council in connection with the statement of the iqo a. °114eil or with regard to the matters which the Council may consider -"r the authority granted by section 12 of the Federal Reserve Act, thq an und erstanding should be had with the Council as to the pro"114 t e 1444_fo o llowedl in the future in submitting, distributing or pubanY rec ommendations made by it. 3522 11/17/34 —2— At the conclusion of the discussion, Mr. Szymczak moved that Mr. Miller be requested to prepare, with the assistance of Ur. Wyatt and such other persons as he may desire to call upon, a statement in the light of the dis— cussion at this meeting, to be nresented by the Governor at the meeting with the Federal Advisory Council next week; it being understood that when the statement is pre— pared it will be submitted by Mr. Miller to the Governor for ally suggestions that he may have to make, following which it will be considered at a meeting of the Board to be held on Monday, November 19, 1934, at 9:30 a. m. Carried unanimously. Mr. O'Connor called attention to the editorial which was printed t e September 29, 1934, edition of the Washington Post, presumably With the approval of a former Governor of the Federal Reserve Board who is the owner of the newspaper. Mr. O'Connor moved that the editorial be made a part of the minutes of this meeting. Carried unanimously. The editorial referred to above reads as follows: "STATUTORY ADVICE "The Federal Advisory Council is not one of those hastily— !rganized bodies formed during an emergency to offer suggestions 'routlino plans to facilitate business recovery. It is a statutory body, established under the Federal Reserve Act, which me tsv atleast flour times a year in Washington to discuss a wide p‘'12,1-e-bY of subjects on which it may make recommendations to the eueral Reserve Board. The council members are selected by the directors of the 12 fcrrctl Reserve Banks--one from each district. They are, there— par r!) especially oualified to express the views of bankers in all of the country regarding the financial policies that are -L1-1Z pursued. "For Part of +1_ that reason and also because the council is an integral to L-Lie Federal Reserve System, its formal statement, agreed at the meeting held in Washington a few days ago, is highly A large number of private organizations and banking roup5 gold have declared, as does the council, that a /set= to the 2tundard must precede recovery, and have called for budget -Lancing re,, riot, ) auc4.uIons in Government outlays, and avoidance of in-Lon. 3523 11/17/34 -3-- "The views of these other agencies, however, are nonofficial, whereas the council is empowered under the law to cdhfer with the Federal Reserve Board on general business conditions and make recommendations in regard to the general 'ffairs of the Reserve System. Although its advice is offered t co the Reserve Board in somewhat irregular form, the Treasury Ian hardly fail to take notice of the council's assertion that en° real or permanent recovery can be had if* * until the ciuntr7 has been placed upon a sound financial basis'." The Governor referred to the action taken at the meeting of the 4deral Reserve Board on October 302 1934, in employing Mr. Daiger as assistant to Mr. Thomas, the employment to continue only until a new "l'elllor of the Federal Reserve Board was appointed and then to be sublect to the pleasure of the new governor. He said that, as he had net had" OPPOrtUnity to give consideration to the matter, he desired to 814:gest that Mr. Daiger be retained on a temporary basis pending a deci8144 as to whether he will be permanently employed. Mr. Hamlin moved that the Board continue the tememployment of Mr. Daiger, changing his designat that of special assistant to the Board, with ealarY at the rate of $750 per month, subject to the wiShea of the Governor as to his permanent employment. lan Carried unanimously. liovemb Mr. Hamlin referred to a letter received by him under date of 1, 1934, from Mr. Curtiss, Federal Reserve Agent at the Federal Bank 0f Boston, recommending approval by the Board of the apI t/Itmeti. " of Mr. Edward H. Osgood as Assistant Federal Reserve Agent at ""ed ilreLxItri7-- Reserve Bank of Boston, with salary at the rate of $15,000 11114 ati -.ft:11)e (3 He said that the Committee on District No. 12 after an innr1 "Ir. Osgood, had submitted a recommendation under date of 1.* ' 6 1934, recommending approval of the appointment, and that he 3524 11/17/s4 watild ?Ike to request that the recommendation be brought up fbr consid— • el'ati°4 at the next regular meeting of the Board. It was understood that the recommendation would be considered at the next regular meeting of the Board, in accordance with Mr. Hamlin's request. Thereupon the meeting adjourned. Secretary. 41)Proyed: Governor.
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