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1513 Minutes of actions taken by the Board of Governors of the Fed— era Reserve System on Wednesday, October 23, 1946. The Board met in theBoard Room at 10:35 a.m. PRESENT: Mr. Mr. Mr. Mr. EccleL, Chairman Draper Evans VardasLan Sherman, Assistant Secretary Morrill, Special Adviser Vest, General Counsel Nelson, Director of the Division of Personnel Administration Mr. Young, Assistant Director of the Division of Research and Statistics Ir. Mr. Mr. Mr. Mr. Evans outlined the need for a man in the Division of Re— search the arid Statistics to do work in the foreign field, stating that 18 a pressing demand for such a man, particularly because of a. Peliing resignation. He referred to a memorandum from :Mr. Thomas, Dil'ootor of the Division of Research and Statistics, dated Septemb -r 24) l946, recommending the appointment of Mr. Albert 0. Hirschman as ell economist in that Divisi n, on a temporary indefinite basis, with basic salary at the rate of 5,905.20 per annum, to be effective as cf the date upon thich he entered upon his duties after having passed theUsual phy:d0.11 examination, and in the expectation he would become Mber Of the Federal Reserve Retirement System. He stated that a clition had been raised concerning the proposed appointment and that he '1°111d like to have further discussion of the subject, since litlhMan seemed to be the best ,lualified economist no the Particular position to be filled. available for 1514 10/23/46 -2Mr. Vardaman stated that he had taken exception to the Hirsch41r1 a . PPolntment. The real question in his mind, he said, grew out of Ahat a PPeared to be a trend in the Division of Rebearch and Statistics toward elliPloying persons of the refugee type, and he felt the time had come 'len, the Board should try to get persons of American extraction into the Research Division. Chairman Eccles stated that the Board had attempted to make aPPI3intments on the basis of the best qualified persons available with°11t regard to race or origin and that there was a real problem °r getting qualified Persons to fill the various assignments. He review ed the difficulties that had been encountered through heavy turnoir el 'of personnel and particularly the need which he felt for adecillst e --aff assistance in meeting his responsibilities as a member Of the m ,lational Advisory Council on International Monetary and Finane41Problems. Mr, had Vardaman stated that he would like to know what efforts been made to locate persons through writing to Federal Reserve tarlii:e, Am e°114try, erican universities, or other possible sources in this In the discussion that followed it was brought out that Mr. was a naturalized American citizen, a veteran of both the , 4ch and It, American armies, and that he left Germany about 1933. Stat ed that at least two of the Federal Reserve Banks had 1515 10/23/46 —3l'eceritlY came to the Board seeking suggestions for research personnel, that, the available supply of qualified economists, especially those f • i4r Yvith foreign economies, was very small, and that the practice of the Di 510 of Research and Statistics in seeking an economist was to Se .Long established contacts with universities, the Social Science Research r ' °114cil, and other agencies on an informal basis. Mr. Vardaman reiterated that he felt the Division of Research arid St- i +4 ct-s--Lcs was not pursuing the proper course or any organized eclIrse to secure personnel for the Division and stated that he would like t0 have a memorandum outlining specifically the steps taken by the Di 11181°n in attempting to locate economists for employment. Chairman Eccles stated that the quality of the staff of the 141tisi°11 of Research and Statistics indicated that a haphazard policy had not been the followed in making appointments, but that he believed Board 16, waa should get a statement from Messrs. Thomas and Young, such Vardehaan had suggested, outlining the procedure they follow in emPloyees so that the Board might decide whether the procedure 8atisfactory or whether it should be changed in any respect. It was unanimously agreed that luessrs. Thomas and Young should submit to the Board a memorandum outlining in detail the procedures they follow in selecting personnel for possible appointment to the Division of Research and Statistics, and the appointment of Albert 0. Hirschman was approved as proposed, 1516 10/23/46 -4— Mr. Vardaman stating that since it had been agreed that such a memorandum should be prepared for the Board's consideration, he would be willing to approve the appointment of Mr. HirschMM. At this point Messrs. Vest, Nelson and Young withdrew from thA rftee4., 'Ing and the action stated with respect to each of the matters he/*°1-rlafter set forth was then taken by the Board. The minutes of actions taken by the Board of Governors of the 4deral ,,eserve System on October 22, 1946, were approved unanimously. Letter to Mr. Ruml, Chairman of the Federal Reserve Bank of Nevi, " 4ork , reading as follows: De "The Board of Governors has received and noted !ItY Chairman Myers' letter of September 19, 1946, ,th which was enclosed a letter of corresponding the addressed to you by President Sproul, regarding xice 44ination of the Federal Reserve Bank of New yo7 s onducted by Examiner Millard as of June 28, 1946 Approved unanimously. Thereupon the meeting adjourned. Assist‘t-Secretary. $• 4 Chairman.
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