The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1394 A meeting of the Board of Governors of the Federal Reserve 8Y8t"I was held in Washington on Wednesday, September 22, 1943, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Ransom, Vice Chairman Sumczak McKee Draper Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary 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 Pecies_ "al Reserve System held on September 21, 1943, were approved unani- Memorandum dated September 18, 1943, from Mr. Goldenweiser, bire 'or of the Division of Research and Statistics, recommending that " Ilra. BIshop Williamson be appointed as a clerk-stenographer in that 4..un on a temporary basis for an indefinite period, with basic salat the rate of $1,800 per annum, effective as of the date upon She enters upon the performance of her duties after having passed 44,4 factorily the usual physical examination. Approved unanimously. Letter to Mrs. Lucille Foster McMillin, Acting President of Civil Service Commission, reading as follows: 1395 9/22/43 -2- "This refers to your letter of August 30, 1943, in reply to the Board's letter of July 10, 1943, with regard to the proposal to amend the provisions of the Retirement SYstem of the Federal Reserve Banks so that employees of the Board of Governors of the Federal Reserve System instead of receiving the regular benefits provided by that retirement system might receive benefits comparable to those provided by the Civil Service Retirement System. "We understand from your letter that the Commission is in accord with our view that a provision of the pro4.°3ed amendment under which all employees hereafter en1) ering the Board's employ whether or not they have had ' evious Government service would become members of the i etirement System of the Federal Reserve Banks would not ?e inconsistent with the provisions of law relating to the Civil Service Retirement System. "In your letter, however, you point out that if all of the employees of the Board were excluded from coverage inder the Retirement System of the Federal Reserve Banks would automatically become subject to the terms of tLie Civil Service Retirement Act and state that the Cornrequests that employees of the Board be excluded ;1 rom the Retirement System of the Reserve Banks and thus t!,brought under the Civil Service Retirement System. In ."1.8 connection you state that there appears to be no 'eason why employees of the Board should be subject to other retirement system than that applicable to Govern,sent employees generally and that it is believed essential fl'om the standpoint of economy and efficient administration 0 have only one retirement system under a unified adminlatration for all employees of the Government. ti "The Board of Governors has given careful thought to le : t suggestion contained in your letter and the considera_1°/18 upon which the suggestion is based. The Board does 115.)t. believe, however, that these considerations are ap!licable with respect to employees of the Board, however ljertinent they may be with respect to other groups of emPloyees. "The Retirement System of the Federal Reserve Banks coy. 11, ere both the employees of the Board of Governors and employees of the twelve Federal Reserve Banks and eir twenty-four branches. The staff of the Board of 2Yernors consists of slightly less than 500 employees, ?Jae the twelve Federal Reserve Banks and their twenty01,1r branches have somewhat more than 24,000 officers r l r e 1396 9/22/43 —3- and employees. Although the Federal Reserve Banks operate under the supervision of the Board of Governors, !rhe of their stock is now or ever has been owned by the united States and their employees are not employees of the United States. The expenses of the Board of Governors, including salaries of its employees, are paid from funds erived from assessments on Federal Reserve Banks, and kiongress has never made any appropriations for such expenses. "It is apparent, therefore, that the adoption of rYour suggestion to bring the employees of the Board of Lmvernors under the Civil Service Retirement System could result in any saving or economy to the Government, .1 3c)t ut ueuld, if anything, increase the Government's expense. "The adoption of your suggestion would not result th el• imination of one retirement system, but merely in he !_e transfer of a relatively small group from one system 0 the other. It is believed that the benefits to be gained by continuing the participation of the Board's le3mPl0yee5 in the Retirement System of the Federal Reserve .anks outweigh any possible advantages that might be gained 111 bringing them under the Civil Service Retirement System. a "The operations of the Federal Reserve System are of with t,highlY specialized nature, and in filling positions _ne Board or Federal Reserve Banks it has been found most :Iyantageous to utilize persons already experienced in nls character of work. Accordingly, it is the policy °r the Board of Governors to make the interchange of emPloYees between the Federal Reserve Banks and the Board 8 free as possible from restrictions and to encourage : _V further a career system for the officers and employees the Federal Reserve Banks and the Board of Governors. ellcier the Retirement System of the Federal Reserve Banks, tnIPloyees of the Board of Governors who are transferred t° Positions with Federal Reserve Banks and employees of tr Reserve Banks who are transferred to positions with e Board retain credit in the Retirement System for their a evious service with the Board or the Banks and continue ! e members of the System without interruption. However, tnloyees of the Board who have had previous service with Federal Reserve Banks would not receive credit for such ;ervice if they became members of the Civil Service RetireSystem. The Board feels that it is highly important 'flat there continue to be a free interchange of employees 4 1397 9/22/43 -4- "between the Federal Reserve Banks and the Board, unaffected by complications with respect to the continuation of retirement benefits. "The Senate Committee report quoted in your letter refers to the 'coordination and standardization' of retireTent systems. The proposal being advanced to provide with.n the framework of the existing Retirement System of the Federal Reserve Banks benefits for employees of the Board comparable to those provided by the Civil Service Retire'tent System would seem to be directly in line with the vlew expressed by the Congressional Committee regarding coordination and standardization. "For these reasons the Board feels that the continua.On of its employees as members of the Retirement System of the Federal Reserve Banks is in no way inconsistent with he.interests of the Government or of the Civil Service ' !!'etlrement System and is desirable in the interests of the rederal Reserve System." Approved unanimously. Os Letters to the "State Bank of Howards Grove", Howards Grove, P. R • #1, Sheboygan, Wisconsin, and the "Peoples State Bank", RockTexas, reading as follows: "The Board is glad to learn that you have completed arrangements for the admission of your bank to the !ederal Reserve System and takes pleasure in transmitting herewith a formal certificate of your membership. "It will be appreciated if you will acknowledge receipt of this certificate." all Approved unanimously. Letter to Mrs. Hugh H. Clark, Norwich, New York, reading as roisiowe: "Senator Mead has asked us to write to you with reference to your letter to him dated September 21 1943, 1 11ce it is the Board's Regulation W which deals with : 4: "e matter discussed in your letter. 1398 9/22/43 -5-- "Regulation W prescribes certain restrictions on extensions of credit for the purchase of consumers' goods. i4,:s you know, the amount of goods available for purchase V civilians is greatly curtailed and far short of the amount which the public could buy with its present large spending power. If people could inflate their present incomes by obtaining as much credit as usual, the pressure in the direction of higher prices would be even greater than it is today. Regulation Wis simply one °f a number of things being done in the effort to 'hold the line' in the fight against inflation. "The Board appreciates and sincerely regrets that the regulation creates difficulties in some individual cases. But it is keenly aware of the fact that the fight against inflation is important in the war effort and that ?Pon reflection all will recognize the necessity of making their automobiles, refrigerators, washing machines, and clothing serve their purposes for a longer time than was customary in peacetimes. "It is hoped that you may be able to solve your proble ,m by running your present car somewhat longer or by reP-Lacing it with one which is not so high in price as the ear you may have contemplated buying." Approved unanimously. Memorandum dated September 21, 1943, from Mr. Dreibelbis, Gen- oral Attorney, submitting the travel expense voucher of B. M. Wingfield, 483istant General Attorney, covering the period September 4 through 8ePtember 15, 1943, in connection with his trip to the Federal Reserve Bkiat of San Francisco in regard to the investigation of Transamerica e°110o ra-ion, and recommending that, because a compartment was the only 4cco4uLodation procurable at the time and it was necessary for him to be San Francisco at the earliest possible date, the Board approve the Parent of the additional expenditure covering the difference in toat Of a bedroom and compartment from Chicago to San Francisco. Approved unanimously. Thereupon the meeting adjourned.
@FedFRASER