The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
2083 A meeting of the Board of Governors of the Federal Reserve Sys— tem wes held in Washington on Thursday, October 29, 1942, at 11:00 a.m. PRESENT: 1dr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Draper Evans Mr. Morrill, Secretary, Mr. Bethea, Assistant Secretary, Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Fed— el'al Reserve System held on October 28, 1942, were approved unanimously. Telegram to Mr. Peyton, President of the Federal Reserve Bank of lAinneapolis, stating that the Board of Governors approves for that Bank, effective October 30, 19/i21 the rates established by its board of direc— t°re of 1/2 per cent on advances to member banks, under paragraphs 8 and 13 of section 13 of the Federal Reserve Act, secured by direct or fully gllaranteed obligations of the United States which have one year or less t° run to call date or to maturity if no call date, of 2-1/2 per cent on ' tclvances to individuals, partnerships, or corporations other than banks lulder the last paragraph of section 13, and of 1-1/2 per cent on advances t° member banks under section 10(b) of the Federal Reserve Act, and the eetablishment without change of the other rates of discount and purchase ill the Bank's existing schedule. Approved unanimously. 2084 10/29/42 Memorandum dated October 19, 1942, from Mr. Panlger, Chief of the Division of Examinations, recommending that the salary of Joseph J. Connell, Federal Reserve Examiner, be increased from $4,000 to 4,200 per annum, effective November 1, 1942. Approved unanimously. Memorandum dated October 28, 1942, from Mr. Morrill, submitting the resignation of Edwin C. Burk as a plumberin the Secretary's Office and recommending that it be accepted as of the close of business on Octo- ber 5, 1942. The resignation was accepted. Letter to Mr. Fleming, President of the Federal Reserve Bank of Cleveland, reading as follows: "Dr. Goldenweiser has reported upon his conversation with You regarding the difficulty of finding the right type of man to head up the research and statistical work in your Bank during the absence of Mr. Kenneth MacKenzie from his position as Assistant Vice President in charge of the Research and Statistical Department. This is particularly unfortunate at this time in view of the importance of the new research program which recently the Reserve Banks have been called upon to undertake as a part of the Government's program in mobilizing the country's economic resources for the war effort as well as to prepare for transition from war to post-war economy. "The furtherance of the Reserve Bank's work in the extension of the regional studies under this program is regarded by the Board as of such extreme importance that all possible steps Should be taken to maintain an adequate staff to perform the Work effectively. As you know, the direction of these studies calls for a person whose knowledge and experience in the Federal Reserve District covers a wide range of subjects, and it is realized that such persons are particularly difficult to find. "It would seem that Mr. MacKenzie, with his intimate knowledge of economic conditions in the Fourth Federal Reserve District, gained through 16 years of work in the Research and Statistical Department of the Federal Reserve Bank of Cleveland, and with demonstrated ability in his field, should be exceptionally well '2085 10/29/42 -3- "qualified for this work and that the new program is of sufficient importance to justify your efforts to obtain his release from the War Production Board to return to the Reserve Bank in order to head up the new work. If you should obtain his return and you have reason to believe that his draft board contemplates changing his classification, it is believed that you would be justified in requesting that his present classification be retained in order that he might carry on the important work in this key position." Approved unanimously. Telegram to Mr. William H. Steen, Milton, Oregon, reading as follows: "Board of Governors of the Federal Reserve System has appointed you director of the Portland Branch of the Federal Reserve Bank of San Francisco for the unexpired portion of term ending December 31, 1942, and will be pleased to have Your acceptance by collect telegram." Approved unanimously. Letter to Mr. Clerk, First Vice President of the Federal Reserve of San Francisco, reading as follows: "Receipt is acknowledged of your letter of October 24, 1942, with further reference to the questions presented in Your telegram of September 26, and the Board's letter of October 3, 1942, regarding the recent amendment to the Board's Regulation A. "The amendment relates only to the question of eligibility of paper evidencing guaranteed loans and is not intended to prevent a Federal Reserve Bank from giving consideration to any factors which affect its acceptability. When any such paper is offered for discount or as security for an advance, it is assumed that the Federal Reserve Bank will make such requirements within the limitations of the Regulation as it may deem desirable for its protection, having in mind the fact that the paper may not be negotiable. Me appreciate your comments in connection with this matter.” Approved unanimously. 2086 10/29/42 -4- Letter to the Presidents of all the Federal Reserve Banks, reading as follows: "For the information of your bank in connection with guarantees pursuant to Executive Order No. 9112, there is enclosed a copy of a letter dated October 28, 1942, received by the Board from the Comptroller of the Currency with respect to the compliance of guaranteed loans with the requirements of exception (10) to section 5200, U.S.R.S. This matter was also the subject of the Comptroller's letter of June 18, 1942, a copy of which was transmitted to you with our letter of June 24, 1942." Approved unanimously, together with letters transmitting copies of the Comptroller's letters of June 18 and October 28, 1942, to Lieutenant Colonel Paul Cleveland and Messrs. S. A. Mitchell and B. B. Griffith of the War Department, Navy Department, and Maritime Commission, respectively. Telegram to the Presidents of all the Federal Reserve Banks readtrig as follows: "Since conference held in Washington last week in connection with War Loan operations under Regulation V was held at request of Board of Governors, Board suggests that expenses incurred in attending conference be assumed by each Federal Reserve Bank." Approved unanimously. Telegram to Ir. Moncrief, Assistant Federal Reserve Agent at the Fecie ral Reserve Bank of Atlanta, reading as follows: "Referring your October 28 letter, in case you need additional currency of a given denomination and Federal Reserve notes of 1928 series is only currency available in that denomination, Board will interpose no objection to its use." Approved unanimously. 2087 10/29/42 _5_ L tter to the Comptroller of the Currency, reading as follows: "It is respectfully requested that you place an order with the Bureau of Engraving and Printing, supplementing the order of June 17, 1942, for printing of Federal Reserve notes of the 1934 series of the Federal Reserve Bank of Chicago in the following denomination and amount: Number of DenomiAmount sheets nation t,402800,000" 680,000 Z5 Approved unanimously. Thereupon the meeting adjourned. Chairman.
@FedFRASER