19421116_1045a_Minutes.pdf

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A meeting of the Board of Governors of the Federal Reserve Sys-

was held in Viashington on Monday, November 16, 1942, at 10:45 a.m.

after

PRESENT: Mr. Eccles, ChairmanUr. Ransom, Vice ChairmanMr. SzymczakMr. McKeeMr. DraperMr. Evans

Mr. Morrill, SecretaryUr. Bethea, Assistant SecretaryMr. Carpenter, Assistant Secretary

The action stated with respect to each of the matters herein-

referred to was taken by the Board:

The minutes of the meetings of the Board of Governors of the

Federal Reserve System held on November 14, 19420 were approved unan-

iniousiy.

Memorandum dated November 13, 1942, from Mr. Goldenweiser, Di-

of the Division of Research and Statistics, recommending that

Lopm— C. Trueblood be appointed as a junior economist in that Division,

th salary at the rate of $3,000 per annum, effective as of the date

'Pori which he enters upon the performance of his duties after having

Passed satisfactorily the usual physical examination.

Approved unanimously.

Memorandum dated November 6, 1942, from Mr. Morrill, recommend-

(1) that, effective November 16, 1942, the temporary appointment of

Alden J. Kieffer, apprentice operating engineer in the Secretary's Of-

fice, be made permanent, with no change in his present salary at the

l'ate of $1,740 per annum, and (2) that, effective November 15, 1942,

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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the temporary appointment of J. Frank Bell, a chauffeur in the Secre-

taqls Office, be extended for an indefinite period on a temporary basis,

with no change in his present salary at the rate of $1,380 per annum.


Memorandum dated November 11, 1942, from Mr. Paulger, Chief

Of the Division of Examinations, recommending that the salary of John

R. Radford, Jr., a Federal Reserve Examiner, be increased from. $4,600tO

OUU per annum, effective November 16, 1942.


Memoranda dated November 13, 1942, from. Mr. Morrill, recommend-

that Walter L. Peregory, operator (duplicating devices), and Thomas

14* 81ackley, telegraph operator, in the Secretary's Office, be granted

leelies of absence without pay beginning November 2 and 16, 1942, re-

6Pectively, so that they might enter active duty with the United States

47'41-Reserve, and that they be granted the benefits provided in the

Pc)licY adopted by the Board on November 14, 1940, and amended August 20,

1941, for all employees entering military service.


Letter to Mr. Rounds, First Vice President of the Federal Reservetelik

of New York, reading as follows:

"In accordance with your request the Board of Governorsapproves the changes in the personnel classification plan ofttie Federal Reserve Bank of New York, as submitted with yourletter of October 22, 1942."



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Letter to Ur. Rounds, First Vice President of the Federal Re-

serve Bank of New York, reading as follows:

'This refers to your letter of November 9, 1942 re-lating to the payment of supplemental compensation at yourBank.

"In the light of your statementthatthe arrangement forsuPplemental compensation was formally announced to yourstaff on September 18, 1942, your assumption seems to becorrect that your Bank may continue to pay such supplementalCompensation as heretofore. This is in line with the infor-mation contained in our telegram of November 6."


Letter to Mr. McCabe, Chairman of the Federal Reserve Bank of

Plliladelphia, reading as follows:

"At the completion of the examination of the FederalReserve Bank of Philadelphia, made as of September 11, 1942,by the Board's examiners, a copy of the report of examina-tIon was left for your information and that of the directors.A copy was also furnished President Williams.

"The Board will appreciate advice that the report hasbeen considered by the Board of Directors. Any commentsYou may care to offer regarding discussions with respect tothe examination or as to action taken or to be taken as aresult of the examination will also be appreciated."


Letter to Mr. Young, President of the Federal Reserve Bank of

tLioago, reading as follows:

"This refers to your letter of November 4 to ChairmanEccles, enclosing a copy of a draft of a letter which youPropose to send to approximately 100 banks in the SeventhFederal Reserve District, suggesting that they qualify aswar loan' depositaries.

"In addition to what is said in the draft of your let-ter you might point out that the use of war loan accountssimplifies the procedure of making subscriptions to newGovernment issues and makes it unnecessary for a bank to


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"provide immediately available funds at the time that sub-scriptions are allotted, that the proceeds of subscriptionsby the bank's customers can be retained on deposit at thebank until called by the Treasury., and that the requiredcollateral against war loan deposits may consist of the se-curities for which subscription is being made by the bankon its own account.

"You may wish to omit the reference to banks outsideNew York and Chicago, contained in the first paragraph,since it might create the impression that such banks arenot doing their part in war financing. The first sentenceOf the third paragraph might also be omitted since, underthe present practice, the Treasury withdraws a percentageof its aggregate credit balance from all issues.

"It is understood that the Treasury expects to send aletter to all Federal Reserve Banks presently on this sub-ject. Accordingly, it is suggested that your proposed let-ter be deferred until you hear from the Treasury."


Letter to Honorable John Edgar Hoover, Director of the Federal

au of Investigation, Department of Justice, reading as follows:

"This refers to your letter of October 10, 1942 (whichreached the Board on October 23, 1942) addressed to theBoard's Chairman and requesting advice regarding investiga-tive activities of the Board.

"Under the responsibilities placed upon it, the prin-cipal investigative activities of the Board involve exam-ination of State banks which are members of the Federal Re-serve System and their affiliates and holding company af-filiates, and lenders not otherwise supervised and vendorssubject to the Board's Regulation W relating to consumercredit. Expminers or investigators who perform such in-vestigative functions are appointed under the direction ofthe Board of Governors by the 12 Federal Reserve Banks lo-cated in various parts of the United States, and they op-erate out of the head offices or branches of the FederalReserve Banks. Pursuant to your request, there is encloseda list giving the location of the head offices of the 12Pederal Reserve Banks, together with the location of eachOf their branches. The Board, through examiners operatingout of the Board's offices in Washington, periodically ex-amines the Federal Reserve Banks and foreign banking cor-porations which are chartered by the Board or operate sub-ject to agreements with the Board.


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"In addition to the examinations above referred to, itshould be mentioned that the Board has certain legal author-ity to examine national banks, nonmember banks subject toits Regulation W, and brokers and nonmember banks subject tothe Board's Regulations T and U issued pursuant to the Secu-rities Exchange Act of 1934. However, through cooperationWith the Securities and Exchange Commission and bank super-7180rY agencies, the necessary examination of these in-stitutions for the Board's purposes is made by the appro-Priate agencies rather than by examiners appointed under theIlirection of the Board. lithile it is not entirely clear thatit comes within the scope of your inquiry, it may also bementioned that representatives of the Federal Reserve Bankshave occasion from time to time to make investigations inconnection with extensions of credit.

"I trust that this will give you the information youdesire but if there is any further information we shouldfurnish you please let us know. You may be assured of thefull cooperation with your office of the Board and the Fed-eral Reserve Banks in this matter, and if you should receivefrom other sources any information which you believe will beof interest to the Board or the Federal Reserve Banks weshall be glad to be advised of it."


Thereupon the meeting adjourned.

6gAt,tioSecret

Chairman.


Documents

19421116_1045a_Minutes.pdf