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1657 Minutes of actions taken by the Board of Governors of the Federal n aeserve System on Monday, Nov:mber 18, 1946. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Draper Evens Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman AS Stated in the minutes of October 30, 1946, Mr. Vardaman gueent on official business. Minutes of actions taken by the Board of Governors of the Feder'41 Reserve SYstem on November 15, 1946, were approved unanildously. Memorandum dated November 13, 1946, from Mr. Leonard, Director rthe : sion of ExaminatiL)ns, recommending the appointment of Miss cb Price r that Division, with basic salaryat the l'4te ()11 42,168.2:sper annum, effective as of the date upon Vnich she e4Itel*1411Pcn the performance of her duties after having passed the 14111 Physical exasnjfljon. The memorandum also stated that it was )1ItstaPaated that Miss Price would become a member of the Federal Ee4rbire retirrment system unless she had money on deposit with the Civil 4111rIce Retirement System. Approved unanimously. Letter to Mr. Kimball, Vice President of the Federal Reserve Of Ne w Ycrk, reading as follows: lette, %accordance with the reuest contained in your of November 13, 1914, the Board of Governors ap- 1658 11/18/46 tr, ,proves, for a further period of six months beginning tober 16, 1946, the continuation of Li-. Thomas P. 1"-ard 4. aeeti.onin an unassigned position in the Cash and ColFunction, with the understanding that the salerY Paid him while serving in this capacity will not (ceed the salary he would be eligible to receive in e.Position he occupied at the time he was given such as ." r 41 Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank "11114, reading as follows: lett"In accordance with the request contained in your tm er of November 12, 1946, the Board approves the ap1 0"litment of Cleve V. McGriff as an assistant examiner pjthe Federal Reserve Bank of Richmond. If the aptment is not made effective January 1, 1947, as ' 111 d, please advise us." e Approved unanimously. Letter Of to Mr. Leach, ?resident of the Federal Reserve Bank Richt! , °Ild, reading as follows: le„ "In accordance with the request contained in your , of November 12, 1946, the Board approves the apPo' ''uer f 1461/lent of Tam N. Humphress as assistant examiner po °: 1 the Federal Reserve Bank of Richmond. If the apPlIll' ! All nt is not made effective January 1, 1947, as eu, please advise us." Approved unanimously. Letter to Mr. Davis, President of the Federal Reserve Bank of 4)11.4 Prepared in accordance with the understanding reached at the g of t he Board on November 15, 1946, and reading as follows: Attebery undoubtedly has advised you of his conV1th Mr. Smerl.d with respect to a letter which 13razial.14"eY, Vice President in charge of your Little Rock or 4-e3 addressed to M r. Brasfield, Assistant Treasurer C°ramodity Credit Corporation, on November 8, 1946, - 1659 11/1846 -3Which he made a vigorous request that the Corporation rescind its directive with reference to transfer! ling the Little Rock loan activities of the Corporation T,0 Memphis, Tennessee. "On Lednesday of last week, Mr. Brasfield called 1,t'; 8rnead on the telephone regarding the receipt of el.sgrams from Members of Congress vigorously protesting inst the transfer of certain activities of the Cornedit Corporation from the Little Rock Branch eLo the 14emphi5 Branch. It appeared that these communi:,ti°ns were being inspired by someone connected with D"e Little Rock Branch. Early Thursday morning, Mr. '1:asfield called again and stated that he was more conan ever that soheone at the Little Rock Branch h:sLihsPiring the wires from Members of Congress because "ad received a letter from Mr. Bailey in which he rereconsideration of the action taken by the je,ryor,iation. It is understood from Mr. Attebery's letth '°4 November 15, 1946, which was received riatt 14r. Bailey wrote letters to eight individuals today,A in senasas suggesting that they communicate with their wr 8"" )r and enclosing a cov of the letter thich he gte to Mr. Brasfield. As a result of these letters, Ar, ator McClellan and other Members of Congress from prZ8” wired red to the Commodity Credit Corporation rev, -8'ing the proposed transfer and urging immediate Attf.tLon of the order. As Mr. Smead stated to Mr. m11.41verY, the officers of the Corporation resented very fro that the inspiration for these communications came Ba4 someone connected with one of the Federal Reserve ole_ s• Mr. Attebery's letter of November 15 makes it 8t.1 that the officers of the Federal Reserve Bank of lis knew nothing about what Mr. Bailey was doing. yo4 For reasons which immediately will be apparent to in vhe , 7°1Joard feels strongly that Mr. Bailey's action yo4 is matter was highly improper and requests that 0141 advise him accordingly. Since he is now 65 years 194Z it iE assumed that he will retire on December 31, ytle in accordance with the established policy of the 4r1d eT ivllich provides for the retirement of officers Year -2-L°Yees of the Federal Reserve Banks during the whtch they become 65 years of age. Nov ,1-t is noted that Mr. Attebery in his wire of eMoe e°Pies r -L4 to Mr. Bailey asked that he forward to you or in, of all correspondence originating with the Branch iredby it having to do with the r,roposed transvici it will be appreciated if you will forward to T 2 1660 "/18/46 -4- :! .he Board copies of the material received in response to l'Auls request as well as of any communication you send to "Bailey in this connection." Approved unanimously. Letter to Mr. Wayne, Vice President of the Federal Recerve Bank 04.. "L Richmond, reading as follows: Ur viem of the recommendation contained in Mr. Armi G,:s'ead's letter of November 7, 1946, the Board of oivernors will interpose no object on under condition subil.lemb,rship numbered 8 to 1.4hIch the member bank is Ject to the investment of 422,500 by the American uecu-., 'lLY and Trust Company, 1:ashington, D. C., in Prop ai ertY at 443 Seventh Street, Soutimest, in the gu a °f Lashington, for the purpose of ex1Danding the ..1‘ters of its Southwest branch." Approved unanimously. Letter to Mr. Knoke, Vice President of the Federal Reserve 411k of , ilew York, reading as follows: HTNolismi,j'" compliance with the request in your letter of tenZujer 13, the Board approves the opening and mainOf .C : 1 Ce of an account on your books for and in the name Tati e Banque d'Etat du Maroc, to be operated by the tharer office of the Banque d'Etat. It is understood obtninu will open and maintain this account without ot .6::"ing certification in accordance with Section 25(b) (i "e Federal Reserve Act, if for technical reasons oil. the non-existence of a diplomatic representative taili ceo in this country) a certification is not oballe It is further understood that you will in participation in this account to the Reserve Banks." °thele.:),IFIredeerfer Approved unanimo Secretary. Chairman.
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