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eirig Federal Minutes of actions taken by the Board of Governors of the Reserve SYstem on Friday, October 29, 1948. PRESENT: Mr. Szymczak, Chairman pro tem. Mr. Draper Mr. Evans Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Telegrams to the Federal Reserve Banks or ew York, Cleve- 4114, lilchxond, Chicago, St. Louis,Minneapolis, Kansas City, Dallas, Sall Francisco stating that the Board approves the establishment 1.litholtt change by the Federal Reserve Bank of St. Louis on October 26) the Federal Reserve Bank of San Francisco on October 271 and bYtie Federal Reserve Banks of New York, Cleveland, Richmond, Chi'ago and m, neap01i3, Kansas City, and Dallas on October 28, 1948, of t'atas of c1,. 18count and purchase in their existing schedules. Approved unanimously. Memorandum dated October 27, 1948, from the Division of Pertl°1141Achillistration submitting d from the heads of the divisions indicated below recommending meorand14 a increases in the basic an— EllEtrie8 Of l'eqtVg4 the following employees in those divisions, ef- vctober 31, 1948: ktile 144 Desigp.ation Salary Increase From To STATISTICS Elizqeth.}34. reZte Economist Economist $4,855.80 $4,981.20 4,730.40 4,605.00 10/29/48 -2Name 1TarIND STATISTICS Viriginia Ruth E. Lambert Nile S.Morris Valentine ,, PERSONNEL t HADMINISTRATION Ilargare. j'iv•la I. Wolverton Clements Designation Clerk-Stenographer Clerk-Stenographer Secretary to Mr. Southard Personnel Clerk Clerk-Stenographer Salary Increase To From $2,949.72 $3,024.96 2,949.72 2,799.24 2,974.80 2,724.00 3,351.00 2,949.72 3,476.40 3,024.96 Approved unanimously. Memoranda from the Divisions of Bank Operations and Administratilres "cse dated October 26 and 29, 1948, respectively, recommend14 that the resignations of Mrs. Dorothy H. Ford, a clerk in the °f Bank Operations, and Mrs. Naomi Robertson, a cafeteria III the rl ,Jivision. of Administrative Services, be accepted to be "'feet' e busiales 17-9 in accordance with their requests, at the close of helper 8 On October 21 and November 3, 1948, respectively, with the 114ders,_ '40ading that a 804 ror lump sum payment would be made to Mrs. Robertallrlual leave remaining to her credit as of November 3, 1948. Approved unanimously. gram to the Presidents of all Federal Reserve Banks read14g .folic:478; k_ "4 ccordance with Board's telegram of October 8 and Propos:,from all Federal Reserve Banks, Board has approved that Reserve c..Banks be assessed $250,000 for puz „ Printia % Pl ' inting presses by the Bureau of Engraving and l VIrt f',; Proration to your Bank based on proportionate 'eatw Federal Reserve notes printed during - ee P•I 1114°14at "sea]. years is $ (a) . Please deposit this e°113at lith p the Federal Reserve Bank of Richmond for acc)f -°8-rd of Governors on November 1, 1948, and ZL7182,432,000 t833 10/29/48 —3— "charge to current expenses (Item 24, Form F.R. 96) as an expense incidental to the printing of Federal Reserve currency. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco (a) $16,081 62,069 22,065 16,525 21,033 18,383 40,719 15,290 4,044 4,769 8,437 20,585" Approved unanimously. Letter Chicago to Mr. Young, President of the Federal Reserve Bank of readiag as follows: the R:There is enclosed a copy of a letter received by First Nat•—oard from Mr. O. B. Lovell, Comptroller, The Bank, Madison, Wisconsin, dated October 6, 1948, sura'nee 8--'g a CoPY of a letter from the Wisconsin Life Inba4k,5 Com a customer of that bank, regarding the a_ccalattPra 1 1•415rt orcig.et m cg=ing back exchange charges to the exchet„, You know, the question whether the absorption of larterce . charges by member banks involves a paymento toon demand deposits is one which has given rise lettellrsiderable difficulty over a period of years. In a the 8-0.addressed to all member banks on June 22, 1 ellara;:rd of Governors stated that the absorption 945, of such 81V 14 amounts ag,regating not more than $2.00 for one erell;.; rPositor in calendar month would be considIlletaber, 6rivial and would be disregarded, provided the riec uank keeps such records as the appropriate superagerleY maY Pr°1 1d That letter was intended to reauire. the Boe a Practical and workable rule of operation and r41e : a rd could not appropriately make exceptions tol the ter fr,-,24ggested in Mr. Lovell's letter and in the _et°r laot,', the Wisconsin Life Insurance Company. Whether bank lle a bsorption of exchange charges by a member excess of $2.00 a month for one customer would 18:0; 10/29/48 —4— ne_ onstitute a violation of the law would depend on the arelevant facts and circumstances of the particular case I? disclosed by examinations of the member bank involved. 211eY be pointed out that the absorption of greater unts of exchange charges for larger customers than tnemaller customers might be regarded as an indication such absorption is in the nature of a payment of -Lilterest. co "In this connection it is noted that the insurance 01,111Pan7 has asked its general agent to call the attention be 11cY-h0lders to the fact that their checks are not tIZ:g41) 1,aid by their local banks at par, with the hope beaik u"eY will enter complaints with their individual s* Ws believe that this procedure is desirable and tova a„ ddition it is felt that much might be accomplished Lig 4ichL the solution of this problem by bankers in educate Public on the unsoundness of exchange charges, as /1a8 done in stotut Iowa and Nebraska where par clearance n es have been enacted. Arorvit be appreciated if your Bank will make apiricile tate re , ply to Mr. Lovell's letter along the lines to mrateu above. A copy of our letter of acknowledgment Lovell is enclosed for your information." 7 Approved unanimously.
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