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1208 A. meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on V,ednesday, November 23, 1938, at 10:30 a. in. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak m cKe e Davis Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairmen Mr. Wyatt, General Counsel Mr. Paulger, Chief of the Division of Examinations Mr. amead, Chief of the Division of Bank Operations Mr. Goldenweiser, Director of the Division of Research and Statistics Mr. Dreibelbis, Assistant General Counsel Mr. Vest, Assistant General Counsel Mr. Thomas, Assistant Director of the Division of Research and Statistics Mr. Currie, Assistant Director of the Division of Research and Statistics Mr. Piser, Senior hconomist in the Division of Research and Statistics Mr. Longstreet, Senior Economist in the Division of Research and Statistics Reference was made to a memorandum dated November 19, 1938, i'll°111 Mr. amead, which had been seen by all of the members of the Board, 141th respect to the action taken at the Conference of Presidents of the Federal Reserve Banks on October 24-25, 1938, in voting that, subto the approval of the Board of Governors and to the consent of the Retirement System of the Federal Reserve Banks, each Federal reserve 11/23/38 -2- Upon authorization of its board of directors, pay to the retiresystem prior to January 1, 1939, the amount of its prior service liability scheduled to be paid during the year 1939. The memorandum suggested that the Board decide at this time whether or not it wished t° approve the proposed payment if all of the Iederal reserve banks request authority to do so and that if the Board decides to give such 1114/r°va1 a telegram be sent to each Federal reserve bank in order that a determination might be made at an early date as to whether the PaYment shall be made during the current year. The memorandum stated that if the payment is made the prior service contributions during this year will be increased to ;*,5,040,730 which, added to contributions for current service, will bring, the total contributions to the retirement system this year to nearly '0,000,000. There was a discussion of the matter on the basis of the information contained in Mr. 8mead's memorandum, at the conclusion of which Mr. Szymczak moved that the Board take the position that, subject to receipt of advice that the boards of directors of the twelve Federal reserve banks concur in the action of the Presidents' Conference, the Board approves the payment including the portion of the payment to be made by it. Carried unanimously. Approval was also given to the following telegram to the Presidents of all Federal reserve banks: 1210 11/23/38 3- "Referring to the action taken by the Presidents' Conference with respect to the making in 1938 of the final Payments to the Retirement System on account of prior service liability, the Board feels that the System should adopt a uniform policy in this respect and, accordingly, before taking action on the recommendation contained in the minutes of the Presidents' Conference, would appreciate advice as to the attitude of your board of directors With respect thereto." In accordance with the understanding reached at the meeting on November 7, 1938, Mr. Goldenweiser discussed for the information Qf the Board the proposals contained in a report to be submitted by 4114 in response to the request made by the Board on April 15, 1938, with respect to revision of reserve requirements of member banks. At the conclusion of the statement various phases of the subject were discussed and a copy of the report marked "Strictly Confidential" was 1111.aded to each member of the Board and of the staff present with the 114derstanding that it would be placed on the docket for consideration at another meeting of the Board. A copy of Mr. Goldenweiser's report We's also placed in the Board's files. At this point Messrs. Wyatt, Paulger, Smead, Goldenweiser, treibelbis, Vest, Thomas, Currie, Piser and Longstreet left the meet- The action stated with respect to each of the matters hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the 4deral Reserve System held on November 22, 1938, were approved unanitoileisr. 1211 11/23/38 -4- Letter to Mr. Worthington, First Vice President of the Federal Reserve Bank of Kansas City, reading as follows: "In accordance with the request contained in your letter of November 18, the Board approves the appointments of X. K. Friedebach and C. L. Bollinger as examiners for the Federal Reserve Bank of Kansas City on a permanent basis, their appointments as such on a temporary basis having been previously approved by the Board. It is understood in this connection that Mr. Bollinger is liquidating his indebtedness to a national bank in Springfield, Missouri, which indebtedness was reported to have been incurred in 1926, prior to his appointment as examiner on a temporary basis, at a substantially larger amount than the present balance." Approved unanimously. Letter to Mr. Harrison, President of the Federal Reserve Bank ot New York, reading as follows: "There is inclosed a copy of the report of the fiscal agency survey made at the Federal Reserve Bank of New York ae of October 17, 1938, by Messrs. Myrick and Porter of the Board's Division of Bank Operations. "We shall be glad to have any comments you may care to make with respect to the report." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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