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1553 Minutes of actions taken by the Board of Governors of the Feder, Reserve System on Monday, November 4, 1946. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Draper Evans 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 was 48ent 04 official business. The minutes of actions taken by the Board of Governors of the 44e1"41 wis Reserve System on November 1, 1946, were approved unanimously. Memorandu m dated November 1, 1946, from Mr. Thomas, Director Division of Research and Statistics, recommending the appoint— kerit of Miss Mercedes Davis as a clerk—typist in that Division, on a terVorary in definite basis, with basic salary at the rate of 42,168.28 13er:41a/111m) ef fective as of the date upon Alch she enters upon the Performance of her duties after having passed the usual physical ex— ekihation. The memorandum also stated that it was contemplated that -uuavis would become a member of the Federal Reserve retirement Approved unanimously. ot the bivision Mera°randum of dated October 31, 1946, from Mr. Thomas, Director the appoint— di search and Statistics, recommenng r4ellt or Mrs. F: ava Townsend as a clerk in that Division, on a tern— 1554 P5liarY indefinite basis, with basic salary at the rate of ,12,469.24 Per allraml, e ffective as of the date upon which she enters upon the Pert0 1111arice of her duties after having passed the usual physical exrilitiati°r1. The memorandum also stated that Mrs. Townsend was a member ().1 the n;, ---1/1-1. Service Retirement System, and would remain in that system. Approved unanimously. Memorandum dated October 31, 1946, from Mr. Leonard, Director qthe D. . ivIsion of Examinations, recommending the appointment of Miss 111411 4dorris as a stenographer in that Division, on a temporary indefinit bn 4 with basic salary at the rate of $2,394.00 per annum, effect. Of her 48 of the date upon which she enters upon the performance duties after having passed the usual physical examination. -(3re'llduM also stated that it was contemplated that Miss Morris 11°41d b c e -°111e a member of the Federal Reserve retirement system. Approved unanimously. 7 the U eal°randum dated October 31, 1946, from Mr. Nelson, Director Division of Personnel Administration, recommendin,g the Aer or tuss transNancy ca4ialations,Lee Chelberg, a stenographer in the Division of tteliographer, to the Division of Personnel Administration as a clerk- With no change in her present basic salary of $2,318.76 Per .;.„ -441411 to become effective November 17, 1946. Approved unanimously. 1555 11/4/46 3Memorandum dated November 1, 1946, from Mr. Bethea, Director (Ithe Division of Administrative Services, recommending the appointment of Miss Marjorie Eaton as a stenographer in that Division with basic salary at the rate of $2,394.00 per annum, effective as of the date Upon " wujoh she enters upon the performance of her duties after 11"21g Passed the usual physical examination. The memorandum also stated that Miss Eaton was a member of the Civil Service Retirement Srstem and would remain in that system. Approved unanimously. Memorandum dated November 1, 1946, from Mr. Bethea, Director "he Dsion of Administrative Services, recommending the appoint- Audrey L. Moye as a stenographer in that Division with b"ic salary at the rate of 2,394.00 per annum, effective as (late Upon which she enters upon the performance of her duties hoi4g Passed the usual physical examination. The memorandum stated that it was contemplated that Miss Moye would become a (Ifthe Federal Reserve retirement system. of the after also member Approved unanimously. ere]. Re Letter to Mr. Laning, Vice President and Cashier of the FedBank of Cleveland, reading as follows: 1946 "Reference is made to your letter of October 24, approved the „„advising that has Directors your of Board eta io lIntinuance of employment from January 1, 1947 to Ande eluding June 1947, of Messrs. George J. 9. 1'8°4 and C. Clyde 30,Phillips, employees of the Pitts- 1556 11/4/46 -4- "burgh Branch who have attained the age of 66 years. "In view of the circumstances outlined in your letter, the Board approves the payment of salaries to the above-named employees from January 1, 1947 to June 3°) 1947, inclusive." Approved unanimously. Letter to Mr. Rainey, Director of Personnel of the Federal heserv e Bank of Atlanta, reading as follows: "The Board of Governors approves the change in the ersonnel classification plan of the Federal Reserve .arik of Atlanta and its Branches, consisting of a change ?i,11 the title of Building Custodian at the Birmingham rich to Building Custodian and Mechanic, as submitted /111-th your letter of October 23, 1946." t Approved unanimously. Letter to Mr. McLarin, President of the Federal Reserve Bank (It Atla,„ reading as follows: aci "Reference is made to your letter of October 31, 1946, i. of the salary program voted by the Executive ComT:It s ei eng and requesting authority to exceed maximum annual talaries under your personnel classification plan in order Permit the general salary increase. Bank The Board of Governors authorizes the Federal Reserve 25 of Atlanta, effective November 1, 1946, to exceed by Per cent maximum annual salaries of employees, other th2 1 11 officers, under its personnel classification plan, 1(Ivided that any increase granted under this authorization thel not cause the total salary of any employee to exceed rate of $7,500 per annum. "This authorization supersedes the authorization to exc.— N, maxiamum salaries contained in the Board's letter of t'ovember 15, 1945, and is granted as a temporary measure ell 'Post war adjustments pending revision of your personnel 4 ssification plan." Approved unanimously. 1557 11/4/46 -5Letter to Mr. Neely, Federal Reserve Agent of the Federal Ileserve Bank of Atlanta, reading as follows: "In accordance with the request contained in Mr. U cLarin's letter of November 1, 1946, the Board of Governors approves, effective November 1, 1946, the payment °f salaries to the following members of the Federal Re,lesrve Agent's Staff at the rates indicated, as part of salary adjustment program recently approved by your -&ecutive Committee: , Name D E. Moncrief d * V. l',esterhaus I% J. Ducamus Annual Salary Title Assistant Federal Reserve Agent 4;4,300 Federal Reserve Agent's Representative - New Orleans Branch 3,300 Federal Reserve Agent's Representative - New Orleans Branch 2,772 Mr. McLarin's letter indicates that the salary of Genevieve Barnett, Alternate Assistant Federal Reserve erlt, is to be increased from 0,000 to $3,300 per annum. 19wever, as stated in the Board's letter of October 14, of$ Mrs. Barnett's salary has been approved at the rate th.*3,300 per annum, and further action by the Board in 18 connection at this time is not required." Mrs. Approved unanimously. Letter to the board of directors of the "Bank of Rogers Park", el114go, Illinois, stating that, subject to conditions of membership 414*ed 1 to 3 contained in the Board's Regulation H, the Board apr°Ve8 the bank's application for membership in the Federal Reserve for the appropriate amount of stock in the Federal Reserve 841k or Chicago. Approved unanimously, for transmission through the Federal Reserve Bank of Chicago. 1558 11/4/46 -6Letter to the Presidents of all the Federal Reserve Banks ream-Lug as follows: "A Summary of Regulation W Enforcement Reports for the month of September 1946 is enclosed. "A majority of the Banks indicated that no particr class of Registrants presented unusual enforcement .. fficulties. Several reported continuing difficulties ,v;-Lth respect to house-to-house peddlers, jewelry stores, -181t1rniture stores, and automobile dealers. One Bank that it was experiencing increased problems in the e sales finance company category which it attributed 6a?,the somewhat greater availability of consumer dur°les of a type customarily financed by such organizations. p lay,„1"Transmission of this summary to you has been deOwing to the fact that reports from a few of the ,-,keral Reserve Banks have reached us only within the ;aet few days. Since this summary is primarily of curinterest, we should like to be able to send it to t Y211 Promptly after the close of each month. Most of Reserve Banks customarily mail their reports before the tenth, and if your Bank has not been among this er f°1113, we should appreciate your making every reasonable lort hereafter to have the report in the mail not ater than the tenth of the month." g e Approved unanimously. Letter signed by Chairman Eccles to the Honorable W. A. tlarilx4 all, Secretary of Commerce, Washington, D. C., reading as fol- the "I have your letter of October 25, 1946, discussing ta ,Prospeet of a sample survey to secure more adeLluate c e concerning the credit needs of small business. er ."As you know, the Board is greatly interested in the re 1t Problems of small business as a part of its general ' nle Pc3r1sibilities in connection with the financing of cornandj industry. In recent years the Board has conThe'ed several surveys to secure more adequate information. ke Ystem will soon conduct a survey of a sample of cornla], banks to obtain detailed information concerning 1_559 11/4/46 —7— "bar* loans to business, by industry and by size of busi1;'es5. The Board, in cooperation with the Robert Morris Associates, has assembled annual income and balance sheet ce 1940 for a sample of manufacturing and trade concerns, tla Particularly of small and medium size, for the f PurPose of indicating the uses and sources of business and the prospective need for bank credit. "Additional information of value concerning the fi. ricing of saall business could be obtained directly from e .businesses themselves. Intervievs, as used by the 'vlsion of Program Surveys of the Bureau of Agricultural l?onomics in obtaining for the Board information on the ciuld asset holdings of individuals, offer a procedure that might be used to secure information from business 7°t.obtainable through customary statistical procedures. 17 investigation of this type in the field of small busibees would involve considerable statistical complexity IZeause of the great variety of businesses and procedures. t. would also re-uire information concerning the nonstaa et:lcal and nonfinancial aspects of small business such or 1,.8 brought out in M r. Hopkins' paper 'Long-term Needs Of 4.111all Business', recently published in pamphlet No. 5 'he Federal Reserve Postwar Economic Studies. pa "In view of the background and interest of the Deel ' rt'illent of Commerce in all aspects of business it would vii, 111 appropriate for your Department to conduct a survey es eh should yield useful results. Because of the inter8llu o the Federal Reserve System in such a survey, I am th : e that the Board would be glad to cooperate in planning Project and, if feasible, in helping to carry it out. Board,s Division of Research and Statistics will be ared to work Aith members of your staff on this matter, You so desire." tr T p Approved unanimously. Letter to Mr. Knoke, Vice President of the Federal Reserve or New York, reading as follows: the ':With reference to your letter of November 21 1946, 10411 °ard approves the renewal by your Bank of a 45,000,000 del uraaturing November 6 to Banco de la Republica Oriental your r"4guay, such loan to be secured by gold earmarked in vaults and made on the following terms and conditions: 1560 4/46 -8Such loan to be made up to 98 per cent of the value of the refined gold bars held by YOU in your vaults as collateral; "(a) (b) Such loan to run for three months; and (o) Interest to be at the discount rate of Your Bank (at present 1 per cent per annum) on the amount actually advanced. "It is understood that the usual participation will °ffered to the other Federal Reserve Banks. 15 n "It is understood that your Bank will not renew the 3-00,000 loan maturing November 20, 1946 nor, if rethe 0,000,000 loan maturing December 20, 1946. is further understood that the present intention of 1-1r Bank is not to consider favorably any request for a , 111'ther renewal in February 1947 of the present extension vi the November 6, 1946 maturity." be Approved unanimously i0OP / 111111111P Secretary. /
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