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1664 A meeting of the Board of Governors of the Federal Reserve SYstem with the Presidents of the Federal Reserve Banks was held in the Offices of the Board of Governors in Washington on Thursday, Oc- tober 18, 1945, at 11:15 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Carpenter, Secretary Messrs. Flanders, Sproul, Williams, Gidney, Leach, McLarin, Young, Peyton, Leedy, Gilbert, and Day (who entered the meeting during the discussion of Item 2), Presidents of the Federal Reserve Banks Philadelphia, of Boston, New Cleveland, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, Dallas, and San Francisco, respectively Mr. Sienkiewicz, Secretary of the Presidents' Conference A meeting of the Conference of Presidents of the twelve Federal Reserve Banks was held in Washington on October 15-16, 1945, and eaterclaY there was furnished to the members of the Board of Governors e°Pies of a list of the topics which the Presidents desired to consider at this joint meeting with the Board. The matters were taken up in the f°13-eming order: G 1. Renewal of Reserve System authority to purchase overnment securities directly from the Treasurz. The ConferenceG considered the fact that the authority to purchase ! vernment securities directly from the Treasury expires ;LI December 31, 1945, and that the existence of this au°ritY has been useful and has not been abused. In view 1665 W1 /45 -2- of situations that may arise in Government financing during the immediate postwar period, the Conference recommends that the authority of the Reserve System to purchase Government securities directly from the Treasury be renewed up to a limit of $5 billion, it being clearly understood that this measure is for meeting temporary emergencies only, and does not constitute a precedent for est ablishing such authority for deficit financing. It submits this recommendation for consideration with the Board of Governors. Chairman Eccles stated that the Board of Governors was in agreement that the authority for direct purchases from the Treasury should be continued, that the provision of law giving the authority was c ontained in the Second War Powers Act, that there were other sections of that act which various offices of the Government felt should be „ ended, and that steps were being taken to initiate the introduction or the necessary legislation. He did not think it would be advis- able for the System to undertake to recommend the enactment of a sepa, e"te bill but that if there were any substantial delay with respect to owier provisions of the Second War Powers Act that were to be re'he felt that the Board should take the matter up with the SeclietarY of the Treasury with a view to action on a separate bill. He went on to say that the Treasury was working with the Office of War Uobiliza,, taon and Reconversion on the matter and that the Board would it and, if necessary, would discuss it with Secretary of the Tl*easurY Vinson. e-, 2. Restoration of franchise tax. In view of ineaeing earnings of the Reserve Banks, the size of their 1666 10/18/45 -3- surplus accounts, and the importance of making it clear that their earnings do not revert to private stockholders, the Conference considered the desirability of restoring the franchise tax preferably in the old or perhaps in some modified form. Mr. Sproul stated that the above matter had been considered bY the Legi slative Committee of the Presidents' Conference and that t had been decided to recommend to the Presidents' Conference that it Would be desirable to take steps toward bringing about the restoration of the franchise tax, preferably in the form in which it was contallied in the Federal Reserve Act prior to 1933. He also said there had not been time for the Presidents' Conference to consider the matter 44d it had been placed on the list of items to be discussed with the Board WIthout recommendation by the Conference. Chairman Eccles stated that the Board felt it would be a mistake t• at his time or, so far as he could see, at any time in the future to tiek Congress to restore the franchise tax or otherwise to provide by ecaitirming legislation in any other form for a payment to the Treasury tr'°m the earnings of the Federal Reserve Banks. It was felt, he said, that c °tigress would discuss the matter in due course, that for the System. to present the matter at this time would raise a number of other clue8ti°118 which might well be avoided, and that when the question was rEkiesa the System should be prepared to oppose the amendment on the that the Congress has charged the Board with responsibility for 1667 10/18/45 -4- general supervision over the expenditures of the Federal Reserve Banks, that the surplus of the Federal Reserve Banks had not accumulated in excessive amounts, and that in any event the earnings of the ims would not be dissipated and would be available if at any tinle Congress should decide that they should be used for some particula_ r purpose. They might also be used, he said, as a fund to elIPPort the guarantee of loans under the Wagner-Spence Bill if it should be enacted and there was the possibility that the System might find it necessary to sell securities held in the System open lai'ket account to offset gold imports which would greatly reduce earnings or to use accumulated earnings for the purpose of paying interest °n debentures issued as a means of absorbing excess reserves. He 4dcled that in view of the responsibilities that the System might face ill the future he would argue strongly that the present or prospective level of the surplus funds in the hands of the Federal Reserve Banks was altogether inadequate, and he felt that the System should be prePared t° make all of the arguments to which he had referred if and when the question was raised by members or committees of Congress. Mr. McKee said that he would be inclined to explain to Congress that, tat ne operations of the Federal Reserve Banks were resulting in sub- taa.ntial earnings that might become large, and to suggest that consid- eration be given to authorizing the Board in its discretion to direct the 1"Vment to the Treasury of any earnings that might not be needed 1668 ' 0/18/45 -5- by the System. He would avoid cAlling the payment a franchise tax but felt that it would be a better procedure for the System to present the matter to Congress at the proper time rather than to wait until the question was raised in Congress. Chairman Eccles suggested that if it appeared that the earnOf the Federal Reserve Banks would increase to what might be regarded as an embarrassing amount, the System could always met that sit ion by arran • g with the Treasury for the replacement of ma- turing securities in the System account with special issues bearing interest Of 1/8 or 1/4 per cent which would automatically reduce the income of the Federal Reserve Banks to whatever night be felt would be necessary. Mr. Sproul said that some of the Presidents felt that the arguments offered by Chairman Eccles for not amending the law could be made at any time and that there probably was a psychological adliantapp • -- In making the suggestion to Congress rather than to have the Inatter raised by someone in Congress. He was opposed to the suggestion last mad e IDY Chairman Eccles with respect to the issuance to the Federa). 11, eserve Banks by the Treasury of special low-rate securities as he th °ught it would be objectionable for the Federal Reserve Banks to become Pensioners of the Treasury so far as their earnings were concerneA or to enable the Treasury to say what the earnings of the Res should be. 1669 10/18/45 -6- The opinions as set forth above were discussed at some length, l'eference being made during the discussion to the public attitude t°ward the Federal Reserve Banks as privately-owned institutions becall "of the ownership of their stock by private banks, and the posallap - effects of the retirement of the stock from Federal Reserve Bank surplus or the transfer of the stock to the Treasury. While the above matter was being considered President Day tried the meeting. 3. g.2mpensationloolicy of Reserve Banks. The Conference considered changes in relative wages and cost °f living of Reserve Bank employees, the change in their orking ' hours, the decrease in the "take home" pay resultfrom loss of overtime, the advisability of discon„inuing supplemental compensation, the urgent need for t_JsYroll adjustment of salaries in numerous instances, nd the necessity for raising the present maxima to al1017 further adjustments in salaries. After discussion, it adopted the recommendations Tad? by the Personnel Directors of the Reserve Banks at uhelr meeting in Chicago, October 1-3, 1945, with the un: e rstanding that they be reviewed with the Board of Gov_rnors at the joint meeting on Thursday, October 18. These recommendations are as follows: 1. Discontinue the payment of supplemental compensation. 2. Increase percentagewise the maximum annual Salary of each position in the Form A Classification Plan in accordance with the present supplemental compensation formula authorized by the Boards of Directors of the respective Federal Reserve Banks. 3. Increase the basic annual salary of each employee by an amount equal to that presently received in the form of supplemental compensation. 1670 10/18/46 -74. Recognizing that the proposed changes will still leave unsolved certain problems of salary adjustment, the solution of which under present conditions should not be postponed until study and revision of the job classification is completed, the Conference agreed that authority be sought from the Board of Governors to exceed maximum annual salaries based on the revised Form A in individual cases as follows: 15% on the first $3,000 of Form A maximum annual salary, provided that this amount added to the adjusted maximum annual salary, shall not exceed a total of $7,500. The Conference also reviewed and considered the graw1,-!ig discrepancies between the salaries of the officers of ule Reserve Banks and those prevailing in the competitive markets of their communities. From the reports and discussion it appears that competitive difficulties are growing more acute, and that the problem of adjusting officers' e.laries at the Reserve Banks should be reconsidered with Board of Governors if the efficiency of the Reserve ijlpanke is to be maintained and their relationships with ! 4 nks, business, and the public are to be broadened dur'ug and after the transition period. Chairman Eccles stated that the Board of Governors was favorable to the discontinuance of the payment of supplemental compensation aticl to increasing the maximum annual salary of each position in the ela S r, ilk cati0n plan of each Federal Reserve Bank in accordance with the n -resent supplemental compensation formula authorized by the board Or a4 st-Lrectors Of the Bank, but that, before reaching a conclusion with reepect to the authority to exceed maxim= annual salaries up to 15 Pet. ce ' n of the first $3,000, the Board would like to study the matter t4rther. 10/18/45 Mr'. Peyton stated that the Federal Reserve Banks were facing relEt1 difficulties in obtaining and retaining the necessary personnel and that it was desirable that the Board reach a conclusion on the tatter as promptly as possible. During a discussion, the point was stressed that the recomtenclation was made only as a temporary measure to enable the Banks to 'fleet special situations until they could make a general revision of their personnel classification plans and that it was not expected that the au thoritY, if granted, would be used to increase the salaries of all employees. In response to a suggestion by Chairman Eccles that the re- si°n °f personnel classification plans of the Banks be expedited, 44 of the. Presidents indicated that this was an operation that would take eight months or more to complete. Mr. Williams pointed out that if the present supplemental COLVe nsation were added to the maximum annual salaries provided by the m, to 'a ollication plans, the added salary payments would be subject retirement deductions resulting in a smaller "take home" pay for the employees, and that the authorization of the additional 15 per eerit 1Nould enable the Banks to make necessary individual adjustments the personnel classification plans could be reviewed. He also eqd that the position of the Presidents was that before discrepancies 1"-tten into the revised personnel classification plans they 1672 10/18/45 -9- like to make an analysis of the situation in individual cases and d etermine what the salary should be. Chairman Eccles stated that in order to assist the Board to act °r1 this matter it should have a statement of the reasons which w°111d lustifY granting the additional discretionary authority over and above the adjusted maximums in the classification plans as recoolended by the Presidents, and that it should be made clear that the authority would be only for an interim period while the personnel clascation plans were being revised in order to enable the Banks to talce care of individual cases in the difficult postwar situation. Ur. Maarin suggested that the Presidents' Conference Committee ml Personnel prepare a statement along lines indicated by Mr. -1u, during the meeting and which would set forth the reasons for the r.„ ' e mlmendation of the Presidents' Conference, and that the stateIllent be sent to the Presidents of p11 of the Federal Reserve Banks who WO1f1 present the matter to the board of directors of the respective Peder Reserve Banks for action and submission to the Board of Gov- There was unanimous agreement that this course should be follow.A . wIth the understanding that each Bank would submit the matter to the /3 cla*I'd of Governors for consideration in the light of the action taker, the board of directors of the Bank. 1673 10/18/45 -10- Mr. Sproul inquired whether the Board had discussed the corn:t8 of the Presidents with respect to discrepancies between the sal- riee of officers of the Federal Reserve Banks and salaries prevailing in the competitive markets in their communities. Chairman Eccles stated that the Board had considered the mat- ter °n-4 briefly but had recognized that it was one that should be given attention, particularly in connection with promising junior ofin the System who would have to be paid higher salaries if they Were to be retained. He felt that salaries of officers between $4,000 arid $10,000 per annum should be considered in this light and the necesS41.7 sdiustments made. 4. Hospitalization plan including surgical benefits. -me Conference reviewed and considered the report and recmendations prepared by the Committee of Personnel Direcr°!'s of the Reserve Banks, dated September 14, 1945, in se-Lation to services now rendered by the Reserve Banks, uch as retirement, group insurance, vacation, sick leave. r After prolonged discussion the Conference adopted by maiority vote of 10 to 2, the following recommendation the Committee on Personnel, based on the conclusion of subcommittee consisting of Personnel Directors: As a result of its further study of the benefit, the subcommittee believes that present benefits available to employees of Federal Reserve Banks should be complemented by the provision of broader facilities for meeting the hazards of illness. It is obvious that this cannot be brought about unless Reserve Banks assume an appreciable share in the cost of Some suitable hosPitalization and surgical program. In the opinion of the subcommittee the most suitable framework for such a plan already exists in the program 1674 10/18/45 -11sponsored by the Blue Cross Association. In these circumstances the subcommittee recommends that each Federal Reserve Bank assume two-thirds of the cost of providing individual, husband and Wife, or family membership, as the case may be, in the Blue Cross Association of its district for each of its employees who may wish to avail himself of the privilege. If this recommendation is approved, the subcommittee in cooperation with representatives of the National Enrollment Office of the Blue Cross, will be prepared to work out whatever details of operation may be necessary. Chairman Eccles said that the Board felt that, so far as the SYstern was concerned, this recommendation involved an innovation, and that the Board should study it further before reaching a decision with ' l esPect to it as it involved several questions of policy and an annual e:q)enditure by the Federal Reserve Banks of approximately $500,000. In response to an inquiry from Mr. McKee as to why the Presidents recommended the payment of two-thirds of the cost by the Federal Reservs Barlks, it was brought out that a majority of the Presidents Wee i t - (1 ' 4' the opinion that the Banks should pay only a part of the cost so that the employees would have a financial interest in the arrange- illent, while a minority felt that the Banks should pay the entire exPonse. Mr. McLarin stated that he had taken the position that the arrallo6.ment should be made through an insurance company as there were x'garlizations in his district affiliated with the Blue Cross Association. 1675 10/18/45 —12- During a discussion of the Presidents' reasons for the recom,memation that the Federal Reserve Banks pay two—thirds of the cost, Mr. Sproul read the following excerpt from the supplementary report f the subcommittee of the Committee on Personnel of the Presidents' e°11tersnce: "Finally, the committee considered the desirability of the banks' assuming the entire cost for employees and their dependents, and is of the opinion that such an ar— rangement would not be as desirable as one involving some terl cegree of employee participation. Precedent for the lat— now exists in our Retirement System and in those group !!Isuranoe plans which are in effect at six of the banks. The subcommittee feels that assumption of the entire cost by the bank would diminish the interest and sense of re— sPonsibility which comes from participation in a joint Zause. 'While today there is a popular tendency toward he employer's assuming ever greater responsibility for the interests of his employees, this situation is not general, and the subcommittee feels that Reserve Banks ght well proceed with caution in this respect, particu— t!IrlY in those areas where local institutions have not ' clreaqY established precedent." 14r- Sproul said that it would always be possible to take the further _ Step of absorbing the entire cost, but that if all of the ex— Pense were borne by the Banks at the beginning it would not be possible to return 0 t an arrangement under which the employees would pay part °t the cost. It was made clear in the discussion that it was proposed that the , 11 tara:: 1 4t1 apply to both officers and employees of the Federal Reserve and that it was expected that the cost to the employees would ric)teXceed the amounts now being paid by them for group insurance and 1676 10/18/45 -13- the 4., -udividual arrangements for group hospitalization. At the conclusion of the discussion it was understood that the Board would study the matter and advise the Reserve Banks of its co nclusion. 5. Research. The Conference reviewed the developTents in the research program of the Reserve Banks and Lhe System. It discussed the progress being made by the Committees on Business Finance and on Banking and Credit P°11DY in the various areas, including wartime changes in financial position of industrial and trade organiza'ions, bringing up to date studies already completed, analysis of call reports as of the end of 1945, and inlirY into the role of interest rates in the economy. a130 thought that consideration might be given to the of bank reserves in view of present and future cl?vslopments, inasmuch as this subject has not been reed since the report of the System Committee was presented almost a decade ago. The Conference believes it be appropriate to take steps to explore this area Decause the problem of bank reserves is becoming even m°re crucial at this time than in the past, and that bank reserves are the source through which volume of credit ls influenced by the Reserve System. T The Conference agreed that it would be appropriate to ,to reexamine the reserves and reserve requirements for 'egions areas, and individual banks, particularly in the light of numerous shifts of deposits that occurred during the war and that are likely to occur in the future. It suggests that the System Research Advisory Committee, tog?her with the Committee on Banking and Credit Policy, glve consideration to this subject. vi It was also suggested that the System Research Ad„sorY Committee (a) inquire into the type and frequency statistical reports collected by Federal Reserve Banks commercial banks and business interest with a view 7 r aucing the burden of such reports wherever possible; a°, .6"4,N further explore the possibility of improving stad-s'lcal data on the velocity of circulation of demand sPcosits as well as of total money supply. 1677 10/18/45 —14— Chairman Eccles said that the Board had no objection to the above suggestion. Mr. McKee stated that the Board had been giving consideration to the matter of member bank reserves and that, inasmuch as it involved a /limber of questions outside of the research field, he felt it should be studied by members of both the research and operating staffs. He gave reasons for the opinion that the present practice of basing re— reserves on the location of banks in central reserve, reserve, and nonreserve cities was obsolete and stated that, in order to find a satisfactory solution, legislation would be necessary. He also said that the Board would send a letter to the Federal Reserve Banks in the near future in which some tentative suggestions would be made and that it w .ae hoped that through a joint study by the Federal Reserve Banks nd the Board a practical solution could be found. Mr- Peyton inquired whether the study of the problem should 11E1 kePt within the Federal Reserve System or whether it was expected that the Federal Reserve Banks would ask for the opinion of member b41k3 in their respective districts. It was the general opinion of those present that there should be no discussion of the matter with Member banks or other parties outside the Federal Reserve System at this time. Regulations T and U. The 6. IkKpin requirements under conference the attention of the bring to desires to Board of inquiries and complaints that numerous Governors are ' e reaching several Presidents of the Reserve Banks from 1678 10/18/45 —15- those who are affected by the recent amendments to Regu— lations T and U, particularly with respect to rules con— cerning withdrawals and substitutions. In passing this Information on to the Board, it would be helpful to the Presidents in meeting various local inquiries to discuss the subject with the Board and obtain broader background for their information and guidance. Chairman Eccles said that, before amending Regulations T (Ex ter 4-un and Maintenance of Credit by Brokers, Dealers, and Members of ilati°nal Securities Exchanges) and U (Loans by Banks for the Purpose or PU rehasing or Carrying Stocks Registered on a National Securities kchar, --ge) to increase margin requirements to 75 per cent and to make re re strictive the rules with respect to withdrawals and substitu-n83 the Board considered every aspect of the problem for a long time and was aware of all of the questions involved. Looking at the tatter in retrospect, he said, the only regret the Board had was that the action was not taken sooner. Complaints regarding the action were Peeted because any regulation that affects individuals adversely 17°11-14 have that result, and no general public regulation could be is- 811ed that did not have inequitable results in some individual cases. He ruacie the further statement that the Board had received numerous let— te on the matter, and it was believed that there was no phase of the cil/e8tio1 that had not been brought to its attention. He said that the 13°B.rd had replied to these letters but that it was not expected that th"°111d change the views of the individuals who had complained. 1679 10/18/45 —16- He added that, in response to the request of the Presidents, the Board W°111d be glad to prepare a statement of the background and reasons for its Position so that the Presidents would have it available in answer— &lip • 'D Inquiries in their respective districts. He also referred to the " 1°ne held by some that the Board should have included in the regu— latio n an amendment to require that undermargined accounts be margined 143 and by others that full 100 per cent margins should have been re— quilled. In view of this situation he thought there was some possibility that the Board might move in the direction of further tightening the Ilegillati°11, but he did not think there was much likelihood of its being liberalized at least in the near future. While he did not think any ction that the Board might take in further restricting credit for the 1)4r1)°Se of purchasing or carrying securities would have much effect in daxaPerling inflationary tendencies in the market, he did think that tlarthe r restrictive action might be desirable so that if there were clanger °Ile inflationary developments the System would be in a position to -V* that it had done everything it could to meet the situation. There was a discussion of the reasons and background which Pl'°1413ted the Board to adopt the amendments to the two regulations, dur— Ingwhim, MX. Leach stated that these were the only regulations of the Hoard regarding which he did not feel he had the necessary information to enn 8"r questions raised in his district and it would be very helpful tr a Statement of the Board's position were made available. 1680 10/18/45 —17— Chairman Eccles stated that that would be done. 7. Consumer Credit--Regulation W. The Conference reviewed recent developments affecting Regulation W as 1,,T13- as the prospects for its continuance. Included in the discussion were (a) possibility of continuing the regulation through an act of Congress; and (b) desirability of simplifying the present regulation by limiting its provisions to durable consumers goods. For their information and guidance, the Presidents desire to review the subject with the Board of Governors at the joint meeting on Thursday, October 18. M. Ransom stated that the Board had not discussed the ques— tion „ extending the authority for the regulation of consumer credit 48 it was felt that to do so would be premature at this time, but that It had undertaken to simplify the regulation step by step as the process °I' rem °v-Lng wartime controls progressed. In his opinion the liberal— of the regulation was a question of timing in relation to the l'elease of other controls. He said that he realized that there were 4144. People who would continue the regulation for reasons other than the, 4sgulation of Consumer credit but that he had made it plain at the tirst conference with representatives of the trades that the Board Wae ter 5t in Regulation W only for the purpose of regulating con— credit and not as a means of writing a code of fair practices or Collecting bad debts. it Polloyring the last amendment to Regulation WI Mr. Ransom said, was found that registrants who made nonpurpose loans had numerous Nnewals and consolidations of such loans and felt that the maturity 1681 ' 0/18/45 -18- Of 18 months permitted by the amendment should apply to existing loans. Re added that, while he was agreeable to permitting such a maturity, there were difficulties in drafting the necessary amendment. 111% Ransom emphasized that the regulation would have to be elnended frequently to keep it on a workable basis and stated that it " 17 contemplated tentatively that the following steps might be taken ill the direction of further liberalization: (1) Delist soft goods and minor items of hard goods, thus reducing the list of articles to 12 or 15 major durables, and give up control of charge accounts as such and substitute control of charge sales of major durables retained on short list. (2) Give up "nonpurposen loans altogether and simultaneously relax down-payment and maturity requirements for major durables retained on short list. In the end, a "nonpurposeu loan would be any loan which is not for the purpose of financing or refinancing the purchase of any automobile or any Other article on the short list of 12 or 15 major durables. It was Mr. Ransom's view that if and when these steps had been take,_ -probably two or three years from now--a greatly simplified regulation w°111d result, and that if at that time some of the registrant groups wished to propose legislation for the purpose of continuing the tOr1L.Y to regulate consumer credit there should be no objection. At this point Mr. Szymczak left the meeting to keep another apP°intraent. 8. ..2.1 .P.14-14Aing facilities of Reserve Banks and branches. 1682 ' 0/18/45 —19- In response to the telegram from the Secretary of the Board of Governors, dated October 4, 1945, the Conference of Presi— dents gave further consideration to policies with respect to future building facilities and operations of Reserve Banks and branches. Attention was given to the preparation of Plans for space to accommodate volume of operations that the R?serve Banks may be called upon to perform, and also to pro— vide space that might be made available to other Government agencies, particularly offices of the Comptroller of Cur— rency, the Federal Deposit Insurance Corporation, and the , 1%econstruction Finance Corporation. The Conference wishes to review this subject with the Board of Governors at the joint meeting. Chairman Eccles said that, in accordance with the last para— graPh of the Board's letter of September 14, 1945, with respect to Plarls for additional Federal Reserve Bank branch buildings, drafts Of letters had been prepared to the Chairmen of the Banking and Cur— rencY Committees of the Senate and House of Representatives recommend— the repeal of the ninth paragraph of Section 10 of the Federal Rese , 've Act which limits the cost of Federal Reserve Bank branch build— He said that the proposed amendment had been cleared with the Trsas 1117 and the Bureau of the Budget and that since it appeared, for l'e48°Ile which he outlined, that it would be desirable to send the pro— Posed anlendment to the committees as promptly as possible, the letters to the Committee Chairmen were going forward today. With respect to the question of timing actual construction W°rk t Provide additional space at the Federal Reserve Banks, Chairman ecl. -8 said that the shortage of building materials was one of the most ell:tieal of the postwar problems and that the Board would be very loath 1683 10/18/45 -20- to a pprove any actual construction work by any of the Federal Reserve Banks until that situation was clarified. He reviewed briefly the situa- ti°n resulting from the removal by the Government of controls over buildmaterials and to the probable inflationary conditions in the construction field and said that, in view of the situation that would exnone of the Federal Reserve Banks should undertake actual construction work until there was a definite improvement in conditions a1d anY building that might be undertaken would fit into the postwar "onomic picture. In the discussion which ensued it was made clear that the board,3 position as stated by Chairman Eccles would be the same re- gardless of action by Congress to repeal the existing limitation on the ` " 1 of Federal Reserve Bank branch buildings. In response to an inquiry from Mr. Sproul as to what the Board had in mind with respect to the preparation of plans for space to 4ec0Mmodate the future volume of operations of the Reserve Banks and 8Pace that might be made available to other Government agencies, ChairMan Eccles stated that it was the view of the Board that the Banks ehotad not undertake to engage architects or to prepare detailed plans arid s Pselfications until the situation was clarified with respect to Poasibi e reorganizatio n of the Federal bank supervisory agencies. Mr. McKee inquired whether the Presidents had any comments to 4lake withrespect to Regulation Q, Payment of Interest on Deposits, 411d Presidents indicated that they had none. the 1684 45 Thereupon the meeting adjourned. Secretary. APPro Chairman.
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