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2001 A meeting of the Board of Governors of the Federal Reserve Systez held in Washington on Saturday, October 10, 1942, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinreferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ?eder al Reserve System held on October 9, 1942, v;ere approved unanimously. Ilemorandum dated October 7, 1942, from Mr. Stark, Assistant Di- l'Itor of the Division of Research and Statistics, recommending (1) that the eave of absence without pay granted to Mrs. Kathryn S. Faulkner a 14 that Division, because of confinement be extended from October 16 thr -eugh November 2, 1942, (2) that the arrangement approved by the 113,1Ofl Itine 09, 1942, under which the Board has continued its contri141t1o„ le e To the retirement system on Mrs. Faulkner's behalf during her Without pay and she has been permitted to discontinue her payments (1111.i.4rie the same period, be continued through October 31, 1942, and (3) thcit the Board approve the reemployment of Mrs. Faulkner as a clerk in the 17ision of Research and Statistics, with no change in her present I'S' at the rate of .4'.1,620 per annum, effective as of November 1,714 4 will be three months from the date of her confinement. Approved unanimously, Mr. Ransom stating that he was still opposed to the Board's policy with respect to confinement leave. 3, 1942, 2002 "/10/42 Memorandum dated October 10, 1942, from Ur. Leonard, Director Of the Division of Personnel Administration, recommending that Harry L. cl*"rds= a clerk in that Division, be granted leave of absence without PaY begin ning October 12, 1942, so that he might enter active duty with the= -lilted States Maritime Service, and that he be granted the benefits PI"ided in the policy adopted by the Board on November 14, 1940, and 1"111cled August 20, 1941, for all employees entering military service, etceipt reimbursement for premiums on National Service life insurance. Approved unanimously. Memorandum dated October 8, 1942, from Mr. Leonard, Director Of the Division of Personnel Administration, in which it was stated that it was assumed that the Board would desire to approve the payment c4E3a1ary through October 9, 1942, to Kenton R. Cravens, Administrator r°11 the rar Loans Cormittee, Those resic,nation had been accepted as of close of business on October 11°U1'8, and 9, without deduction for I day, 3 47 minutes of unearned annual leave. The payment of salary to Mr. Cravens through October 9, 1942, was approved unanimously. Letter to Er. Fletcher, Vice President of the Federal Reserve 41/1L• 1 Of Cleveland, reading as follows: "Peference is made to your letter of October 2, 1942, concerning the action of the ,Crawford County Trust Company, 1"-eadvil1e, Pennsylvania, in assuming, effective October 5, 1942, the deposit liabilities of the Townville State Bank, Townville, Pennsylvania, a nonmember insured bank which is being liquidated. 2003 1°/10/42 "It is understood that the deposits assumed amounted to approximately '180,000, which, after expected withdrawals, will result in an increase of only from “25,000 to S150,000 in the deposits of the member bank, and that the member bank 17as to acquire approximately $60,000 in Federal Housing Administration mortgage loans and other acceptable assets, with the remainder in cash to offset the deposits assumed. In the circumstances, the Board concurs in your opinion that the traI)saction did not result in any change in the general Character of the assets or broadening in the functions exercised by the member bank and, therefore, will interpose no objection to the transaction Under the terms of condition of membership numbered 5 to which the member bank is subject. "In this connection, however, on the date of the last exEmination, as of Tune 13, 1942, the member bank's adjusted cePital account was :',396,2oo and its assets included fixed assets, other real estate and potential other real estate mounting to $',363,100 and substandard securities, including !tacks at $71,900, amounting to .134,300. Deposits on the date of examination amounted to 4,573,3oo. It appears, e refore, that the institution is hardly in a position to th seek further expansion of deposits through absorption of Other banks although, in this instance, the relative inellease in deposits is very small. In your recent correspondence with the member bank you have urged the need for co nservation of earnings for the purpose of building up caPital and eliminating undesirable assets, and it is sugeested tht the present circumstances occasion further emphasis on this point." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, 1:14111g as follows: "The Board has received from the War Department a memondum dated October 5, 1942, signed by Lieutenant Colonel Cleveland, regarding the amendment of contracts for the 3111100se of inserting Article 14 of the standard supply con' l aet. A copy of this memorandum is enclosed herewith for F: I ?ur information and guidance in connection with the execuon of guarantee agreements pursuant to Executive Order "O, 9112. "In accordance with the War Department's request that ad7ice regarding this matter be transmitted to the liaison c3ff1cers, there is enclosed an extra copy of the War Departeht's memorandum, and it will be appreciated if you dll 6ransmit this copy to the liaison officer of the War DePartment in your district. 1 T Approved unanimously. 2004 "/10/42 -4- Letter to Mr. Stuart A. Pice, Assistant Director, in Charge of 8tEkti8tical Standards, Bureau of the Budget, reading as follows: "In accordance with your memorandum of August 31, 1942, to the heads of Executive Departments, independent establishzents and other Government agencies, including corporations, in regard to the procedure prescribed for the assignment of ePProval numbers to report forms in use prior to August 31, 1942) we are enclosing lists in triplicate on forms DSS 63 and 63a showing the report forms of the Board of Governors Of the Federal Reserve System and of each of the tvvelve Federal Reserve Banks. A copy of each form listed is attached. "The Board of Governors is in agreement with the proCede referred to in your memorandum which has as its purPose the elimination of unnecessary requests for, and duPlication of, information received by the various departIllsnta and agencies of the Government, and will be glad to c°0Perate with the Bureau of the Budget to the fullest possible extent in the use of forms on which can be shown the ePproval numbers contemplated by the procedure. It is underetood, however, that the forms attached to this letter and enY forms submitted to the Bureau of the Budget in the future in accordance with the procedure are submitted for that purP"e and not for approval of the forms as such by the Bureau, es that responsibility rests with the Board and the Federal Reserve Banks. "It will be noted that on some of the lists from the Federal Reserve Banks items have been crossed out. The items !liminated are report forms of the Board of Governors which ileVe been included on its list, or report forms of the TressDepartment which are sent out by the Federal Reserve Banks. -tit will also be noted that some of the lists received from the I . ederal Reserve Banks are not signed, but it was thought best , 0 for7ard them on to you without signature in order to avoid ' delay.n Approved unanimously, together with the following letter to Mr. Sproul, President of the Federal Reserve Bank of New York: "Receipt is acknowledged of your letter of September 24, 1942, with respect to the submission of report forms used by the Board of Governors and the Federal Reserve Banks in accordance with a procedure for the assignment by the Bureau °f the Budget of approval numbersto such forms. 2005 10/10/42 "The Board of Governors is in acreement with your aucgestion that it is not necessary or desirable that the report forms of the System be made subject to advance aproval by the Division of Statistical Standards of the Bureau of the Budget, and it is believed that the letter transmitting the foras of the Board and the Reserve Banks to the Bureau, a copy of which is attached, adequately Protects the position of the System on that point." Letter prepared for the signature of Chairman Eccles to Major Gelleral Allen W. Gullion, The Provost Marshal General, War Department, l'ee4ine as follows: "Your letter of September 18, 1942, with attachment entitled, 'Synopsis of War Department Program for Military .?overnment,' was received in my office on September 21, 1:942, while I was out of the city and was held for my return. "The Board of Governors will be glad to cooperate with Your office in the program outlined in the enclosure referred to above. In accordance with the suggestion made in the last paragraph of your letter, the Board has designated Mr. Lawrence Clayton, Assistant to the Chairman, to establish and maintain liaison with the Military Government Division of your office. Mr. Clayton is a World War °fficer, and, until recently, was a Colonel in the Field tillery Reserve. He therefore has a general working 4now1edPe of military organi7ation. "It is assumed that while Mr. Clayton may continue to serve as liaison officer, the program in contemplation IllaY from time to time make it advisable to assign certain te chnicians of the Board to participate in the studies or actual operations under the program. Approved unanimously. Memorandum dated October 5, 1942, from Mr. Nelson, Assistant Lee setarY, stating that on Slily ' °Inist in the Division 6, 1942, Roland I. Robinson, Senior of Research and Statistics, issued a trans- c)/'t e --on request for an upper berth from Washington to Chicago which, to difficulties in obtaining transportation to Union Station, he 2006 IMO/42 wae -6- unable to use, and that after attempting to cancel the earlier reser- tiOn it later as necessary to issue another request for a reservation on a urain, end recommending, with the concurrence of Ir. Etrk, As- sistant Director of the Division of Research and Statistics, that ThU in- as the Pullman Company was not permitted to redeem the unused tie/r„ the Board approve the payment of “.85 for the unused 1^P, ' -ervation. Approved unanimously. Thereupon the meeting adjourned.
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