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1639 A meeting of the Board of Governors of the Federal Reserve System, was held in Washington on Friday, November 5, 1943, at 11:00 PRLSENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak McKee Draper Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman 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 Federal Reserve System held on November 4, 1943, were approved unanimously. Telegrams to Messrs. Treiber, McCreedy, and Clouse, Secretaries of the Federal Reserve Banks of New York, Philadelphia, and Cleveland, resPectively, Mr. Dillard, Vice President of the Federal Reserve Bank of Chicago, Mr. Stewart, Secretary of the Federal Reserve Bank of St. Lois Mr. Caldwell, Chairman of the Federal Reserve Bank of Kansas City, and Mr. Hale, Secretary of the Federal Reserve Bank of San Francisco, Stating that the Board approves the establishment without change by the Federal Reserve Banks of St. Louis and San Francisco on November 2 a;nd by the Federal Reserve Banks of New York, Philadelphia, Cleveland, Chicago Kansas City, and San Francisco on November 4, 1943, of the 1_640 11/5/43 -2- rates of discount and purchase in their existing schedules. Approved unanimously. Memorandum dated November 4, 1943, from Mr. Goldenweiser, Director of the Division of Research and Statistics, recommending that S. Virginia P. Sassani be appointed as a clerk in that Division on a temPorary basis for a period of not to exceed three months, with basic salarY at the rate of 1z1,560 per annum, effective as of the date upon which she enters upon the performance of her duties after having passed sat isfactorily the usual Physical examination, with the understanding that if anything derogatory should develop in the investigation of her references her services may be terminated immediately. Approved unanimously. Memorandum dated November 4, 1943, from Mr. Morrill, recommending that Hiss Wilma E. Barrs be appointed as a junior file clerk 14 the Secretary's Office on a temporary basis for a period of not to "cesd six months, with basic salary at the rate of 1,440 per annum, ffective as of the date upon which she enters upon the performance °t* her duties after having passed satisfactorily the usual physical examination, with the understanding (1) that if anything derogatory should develop in the investigation of her references her services Mar be terminated immediately and (2) that if her services prove satis- fact°rr during her temporary appointment she will be recommended for a permanent appointment. Approved unanimously. 1641 11/5/43 —3— Memorandum dated November 3, 1943, from Mr. Smead, Chief of the Division of Bank Operations, referring to the approval by the Board on December 9, 1942, of the retention in active service of John DeLaMater, supervisor of service functions in that Division, who reached the retirement age of 65 on January 30, 1942, for a period of not to exceed one year beginning January 1, 1943, the effective date of his retirement, with the understanding that payment of his retirement allowance would be suspended until the termination of his employment in accordance With the terms of the resolution adopted by the Retirement Committee on November 28, 1942, and that no further contributions to the retirement sYstem would be made by Mr. DeLaMater or the Board after his retirement On January 1, 1943. The memorandum recommended that Mr. DeLaMater be retained in the Board's employ at his present basic salary of 4,000 Per annum for an additional period of not to exceed six months beginning January 1, 1944, on the same basis as approved by the Board on December ' 9 1942. Approved unanimously. Memoranda dated November 1, 1943, from Yr. Goldenweiser, Director of the Division of Research and Statistics, recommending that the following increases in basic annual salaries of clerks in that Division be approved, effective November 16, 1943: 1642 11/5/43 -4Salary Increase To From Name Mrs. Miss Miss Mrs. Miss Viola A. Hodson Helene F. Baur Helen Vincent Ruth H. Reehling Alice Y. Taylor A2,400 2,300 2,300 2,200 2,200 $2,500 2,400 2,400 2,300 2,300 Approved unanimously. Letter prepared for the signature of Chairman Eccles to Mr. Stark, Assistant Director of the Division of Research and Statistics, reading as follows: "In accordance with the request in your letter to me of October 28, the Board of Governors regretfully accepts your resignation. "'While I am fully aware from our recent conversation Of the reasons which prompt you to return to the firm with Which you were previously associated, I am most reluctant, as I am sure the other members of the Board are, to have You leave the Division of Research and Statistics. I had hoped that upon the termination of your temporary service With the Division, you would permanently join the staff. I feel that you have made a most valuable contribution both to the economic work of the staff and to the Office of Economic Stabilization, and all of us who have been associated with you are loath to have you leave. "I want to take this occasion not only to express on mY own behalf and that of my associates our appreciation of the contribution you have made, but to wish you everY success and happiness in your future work." Approved unanimously. Letter prepared in accordance with the action taken at the meeting of the Board on October 26, 1943, to Mr. Day, President of the Fed41 Reserve Bank of San Francisco, reading as follows: "The Board of Governors approves payment of salaries 1643 11/5/43 —5— "to the following officers for the period May 1, 1943 through April 30, 1944, at the rates shown, which are the rates as fixed by your board of directors. Name Annual Salary Title F. H. Holman g 8,500 Auditor General O. P. Wheeler 8,000 Research Director of W. N. Ambrose Managing Director, 12,000 Los Angeles Branch D. L. Davis Managing Director, 10,000 Branch C. R. Shaw Managing Director, 10,000 Seattle Branch "The approval of the salaries of the three managing directors is upon the assumption that the officers are considered as ranking in the organization with the vice presidents, and that their responsibilities and the authorities delegated to them are commensurate with their positions as managing officers of the Branches, and with the increased sal"The general question of Branch activities and the responsibilities of the managing officers and boards of directors of the Branches was discussed by Governor Szymczak With Chairman Grady during his visit here last week. Also as you know, and Mr. Szymczak advised Mr. Grady, the Board feels that the managing officers of the important branches should not only rank with the vice presidents of the parent bank but should have the title of vice president." Approved unanimously, together with the following letter to the Joint Committee on Salaries and Wages: "Under the procedure established by General Order No. 39 of the 17ar Labor Board and the authority granted by the Commissioner of Internal Revenue, transmitted herewith re the original and four copies of two certificates of Federal Reserve Bank of San Francisco, with respect to he increases in the annual salaries of five officers of that Bank. "These increases have been approved by the Board of Governors of the Federal Reserve System effective May 1, 1943, the beginning of the salary year for officers of the Federal Reserve Bank of San Francisco and its Branches. Z 1644 11/5/43 -6- "The Reserve Bank had originally proposed the salaries effective May 1, 1943, but action on the increases was held in abeyance pending clarification of the certification procedure and further investigation by the Board of Governors of the Federal Reserve System." Approved unanimously. Letter to the board of directors of "The Hardy Banking Company", North Baltimore, Ohio, stating that, subject to conditions of memberShip numbered 1 to 3 contained in the Board's Regulation H, the Board approves the bank's application for membership in the Federal Reserve SYstem and for the appropriate amount of stock in the Federal Reserve Bank of Cleveland. Approved unanimously, for transmission through the Federal Reserve Bank of Cleveland. Letter to the board of directors of the "Farmers State Bank f Superior", Superior, Nebraska, stating that, subject to conditions f membership numbered 1 to 3 contained in the Board's Regulation H, the Board approves the bank's application for membership in the Federal Reserve System and for the appropriate amount of stock in the Federal Reserve Bank of Kansas City. Approved unanimously, together with a letter to Mr. Leedy, President of the Federal Reserve Bank of Kansas City, reading as follows: "The Board of Governors of the Federal Reserve Systenl approves the application of the 'Farmers State Bank °f Superior', Superior, Nebraska, for membership in the 1645 11/5/43 —7— "Federal Reserve System, subject to the conditions prescribed in the enclosed letter which you are requested to forward to the Board of Directors of the institution. Two copies of such letter are also enclosed, one of which ls for your files and the other of which you are requested to forward to the Director of Banking for the State of Nebraska, for his information. "It is assumed that you will follow the matter of the bank's bringing into conformity with the provisions ol law and the Board's regulations, the savings account mentioned on page 16-(1) of the report of examination for membership and the requirements with respect to savings deposit withdrawals." Letter to the Lake Shore Trust and Savings Bank, Chicago, Illinois, reading as follows: "The Board of Governors of the Federal Reserve System has considered the application for permission to exercise fiduciary powers made by you on behalf of the Lake Shore National Bank, Chicago, Illinois, the national bank into Which the Lake Shore Trust and Savings Bank, Chicago, Illinois, is to be converted, and grants such national bank authority, effective if and when it is authorized by the Comptroller of the Currency to commence business, to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies or other corporations which come into competition with national banks are permitted to act under the laws of the State ,?! Illinois, the exercise of all such rights to be subject the provisions of the Federal Reserve Act and the regulations of the Board of Governors of the Federal Reserve System. . "After the conversion of the Lake Shore Trust and ''alangs Bank into the Lake Shore National Bank becomes effective and the Comptroller of the Currency authorizes the national bank to commence business, you are requested to have the board of directors of the national bank adopt resolution ratifying your application for permission to exercise trust powers, and a certified copy of the 1646 11/5/43 It resolution so adopted should be forwarded to the Federal Reserve Bank of Chicago for transmittal to the Board for its records. When a copy of such resolution has been received by the Board, a formal certificate covering the national bank's authority to exercise trust powers will be forwarded ." Approved unanimously. Letter to Mr. A. J. Sticha of the Bancroft Dairy, Madison, Vasconsin, reading as follows: "The Treasury Department has referred to us your letter of October 7, 1943, with which were enclosed copies of letters addressed to the Office of Defense Transportation and the Office of Price Administration. Your letter was brought to our attention since the Board has certain responsibilities in connection with the regulation of consumer credit. "You suggest that a regulation be established prohibiting the delivery of milk or dairy products to any retail customer if he has not paid in full by the 20th of the month for purchases in the preceding month. You Point out that such a regulation would help to conserve manpower, would aid in checking inflation, and would reduce costs of operation. "As you know, the Board's Regulation W does not cover goods other than those of the durable or semi-durable variety. In fact, the Executive Order under which the regulation was issued does not permit the Board to o other types of goods. From time to time it has been een suggested that the field be broadened, as for example, by the inclusion of various kinds of food or fuel or drugs. In the discussion of these proposals, a number of people have pointed out objections which have seemed lorceful. It has been said that food is so fundamental human need that credit controls are not appropriate to influence its distribution. "We appreciate your interest in this matter and thank YOU for sending in your suggestion. We know that allocation of the milk supply is presenting a serious problem and hope that it can be solved without serious hardship." Approved unanimously. 164 11/5/43 -9Memorandum dated November 1, 1943, from Mr. Dreibelbis, General Attorney, submitting a letter and statements dated October 28, 1943, of Messrs. Robertson, Leachman, Payne, Gardere & Lancaster for I12,500 on account of legal services rendered in connection with the Transamerica Corporation matter and for 352.09 of expenses, covering the period julY 30 to October 28, 1943, and recommending, in accordance with the Procedure approved by the Board on August 3 and 27, 1943, that the pay— ment of these amounts be approved. Approved unanimously. Memorandum dated November 2, 1943, from Mr. Goldenweiser, Di— rector of the Division of Research and Statistics, submitting a revised budget for the year 1943 for the statistical and analytical function of the P A 'eueral Reserve Bank of Dallas, and recommending that the Board ap— Prove the revised budget as submitted. The memorandum stated that the main difference between the original budget in the amount of p57,237 and the revised budget in the amount of 57,629 was that proposed ex— Penditures for the Dallas Bank's branches had been decreased and those for the head office increased. Approved unanimously. Thereupon the meeting adjourned. A.ppr, Chairman.
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