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1172 A. meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Wednesday, November 9, 1938, at 11:30 E1. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairmen 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 8, 1938, were approved unani- Letter to Mr. Schaller President of the Federal Reserve Bank Of Chicag_, u reading as follows: "Your letter of October 28, 1938, requesting the 8°ard'a approval of the action of the board of directors 0 ,..f the Federal Reserve Bank of Chicago in employing Dean C. A. Phillips, of the University of Iowa, as an economic adviser for the year 1939 at a salary of $3,000, with al.1-owance for necessary traveling expenses, has been received, 3,:t being understood that the employment is on a part time basis and that he will continue his service at the University of Iowa. "The Board of Governors approves this arrangement With the definite understanding that it is for not more !!ilan one year and that before the end of 1939 if the bank Wishes to consider his retention for a further period the question will be reviewed without prejudice or embarrassMent to the bank, the Board or Dean Phillips. The Board 11274,1 11/9/38 -2- "Wishes to have the regular procedure in matters requiring its approval to be such as to enable it to pass on them before cannitments are made." Approved unanimously. Letter to Mr. Nardin, Chairman of the Federal Reserve Bank of St. Louis, reading as follows: "As you know, the Board's Division of Examinations has been making surveys of the bank examination departments of all the Iederal Reserve Banks. These surveys have now been completed and in connection with the report on St. Louis attenti on has been called to the fact that the Board has received no advice as to the plans of the Federal Reserve Bank to provide the necessary supervision of its examination department following the retirement Of Mr. Wood at the close of the current year, in accordance with your letter of November 17, 1937, and the Board's reply of November 29, 1937. "The Board's information as to the bank examination department at St. Louis indicates particularly that there 1.e need for better supervi sion and direction. Therefore, it is essential that Mr. Wood's successor be selected with 8Peoial care on the basis of his training and experience and that he should have adequate preparation. For these reasons and in view of the special responsibility of the Board for the examination work of the Federal Reserve Ystem, the Board feels that it should send one of its examiners to your bank to advise and assist in the develoPment of the examination departm ent until Mr. Wood's !accessor becomes fully prepared to carry on the work in accordance with the System's policies under the general Supervision of the Board's Division of Examinations at W ashington. "In the circumstances, the Board has requested Chairmen Eccles to discuss the matter with you for the purpose °f working out the details of this arrangement and of ascertaining definitely the plans of your directors as to n*..Wood's saccessor. It will be appreciated if you will advise the Board by letter for its record as to the action taken." Approved unanimously. 1174 -3Telegram to Mfr. Worthington, First Vice President of the FedReserve Bank of Kansas City, reading as follows: "Relet November 7, 1938, regarding Farmers State Bank, Wallace, Nebraska. Except for copy of form of capital debentures bank sold to Reconstruction Finance Corporation, d ocuments inclosed with your letter satisfy request contained in Board's letter of October 29, 1938. It is assumed that you will forward copy of such form in due course, but there seems to be no reason for deferring completion of bank's membership pending our receipt of such copy." Approved unanimously. Thereupon the meeting adjourned. )1 ( ) Secretary. Chairman.
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