19451113_Minutes.pdf

1_789

A meeting of the Board of Governors of the Federal Reserve

85r3tcmIllas held in Washington on Tuesday, November 13, 1945, at 11:00

after

Pederai

raOlasly.

PRESENT: Mr. Eccles, ChairmanMr. McKeeMr. DraperMr. Evans

Mr. Carpenter, SecretaryMr. Connell, General Assistant,

Office of the SecretaryMr. Morrill, Special AdviserMr. Thurston, Assistant to the Chairman

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

referred to was taken by the Board:

The minutes of the meeting of the Board of Governors of the

Reserve System held on November 9, 1945, were approved unani-

Memorandum dated November 9, 1945, from Mr. Bethea, DirectorOr the

tivision of Administrative Services, recommending that BrucekAlo

13, who has been on military leave, be reinstated in his position48 ell.,

in that Division, with basic salary at the rate of $2,034 perkrolm' effective as of the date upon which he enters upon the performance

or

duties after having passed the usual physical examination.

\t°1et R,--rrmann be appointed as a cafeteria helper in that Division

Approved unanimously.

Ilemorandum dated November 9, 1945, from Mr. Bethea, Director"r the „.

-lvision of Administrative Services, recommending that Mrs.

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

1790

11/13/45 -2-

°4 a temporary basis for a period not to exceed three months, with

salar7 at the rate of ;i1,704 per annum, effective November 13, 1945.

The memorandum stated that it was not contemplated that Mrs. Herrmann

17°111d become a member of the retirement system during the period of

her temporary employment.


In accordance with the action taken at the meeting of thetoa,,A

on September 28, 1945, Chairman Eccles talked with the Chairmen

°I* the Federal Reserve Banks of Richmond, Atlanta, St. Louis, Minneapolis,

Icarisa 8 City, and Dallas, when they were in Washington in connection with

eeent Chairmen's Conference with respect to the maximum salaries

Subse

Illed was prepared, the letter to Mr. Lassiter, Chairman of thePede_

'al Reserve Bank of Richmond, reading as follows:

will confirm for the records of your Bank the:Trice given you verbally during the recent Conference;?- Chairmen that the Board has increased the maximum sala-(Iles for the positions of President and First Vice Presi-aell,t of the Federal Reserve Bank of Richmond from :i20,0001111' $15,000 respectively, as established in the Board'st?Lter of July 29, 1941, to 25,000 and $18,000 respee-lvelY, effective March 1, 1946.

"Similar increases in the maximum salaries are be-made at some other Federal Reserve Banks in order

vi:at the maximums for the positions of President and Firstire President at all Federal Reserve Banks except Newvrk and Chicago may be at the same level.

thestablishing the new maximums, the Board continues

vic e expectation that the salaries of Presidents or First40te Presidents, whether new appointees or incumbents, will

be placed at the respective maximums until the officers

the r

e positions of President and First Vice President at those Banks.

quently a draft of letter to the Chairmen of the Reserve Banks


1791.

4113/45 —3 —

".have demonstrated their ability to carry on their dutiesin a manner which would justify the maximum salary for theposition."

Approved unanimously, together withsimilar letters to the Chairmen of theFederal Reserve Banks of Atlanta, St.Louis, Minneapolis, Kansas City, and Dallas.

Memoranda dated November 6 and 7, from Mr. Leonard, Director

°f the Division of Personnel Administration, submitting requests made

bY the Federal Reserve Banks of Chicago, Minneapolis, and San Francisco,

Plr'suant to the Board's letter of October 31, 1945 (S-881) relating to

illeased salaries at the Federal Reserve Banks. The memoranda recom—

red (1) that the requests be approved, and, (2) that this action

bY the Board be considered as a precedent and that similar authority

begranted to other Federal Reserve Banks should they request it.

These recommendations were approvedunanimously, and in accordance with thisaction approval was given to the followingletter to Mr. Day, President of the FederalReserve Bank of San Francisco, together witha similar letter to Mr. Young, President ofthe Federal Reserve Bank of Chicago, exceptthat the latter letter did not include thelast paragraph of the letter to Mr. Day:

"The Board of Governors approves the request of the;lrectors of your Bank, as submitted in your letter of No—:amber 1, that the Bank be authorized to exceed in individual

eatioes maximum annual salaries under the personnel classifi—

t „n plan of your Bank by as much as 15% of the firstOf the maximum annual salary, provided that the total

arlal salary, including any such excess over the maximumnoTlal salary under the personnel classification plan, shall

exceed V7,500.me "In accordance with the discussions at the recent jointauie. ing of the Board with the Conference of Presidents thisof'tiorization is granted as a temporary measure to take carenr fldividual cases in the postwar situation pending a com—'- enensive revision of the personnel classification plan.


1792

11/13/45 -4-

"It is noted that the program as approved by yourdlrectors includes the discontinuance of payment of sup-plemental compensation as such, the merger of the supple-111,ental compensation with the basic salary, and increases1.r.1 the maximum annual salaries under the personnel classi-rlcation plan to provide for the merger of supplemental?°111Pensation with basic salary. Authorization for suchZnereases was contained in the Board's letter of October31, 1945 (3-881)."

Unanimous approval was also givento the following letter to Mr. Peyton,President of the Federal Reserve Bankof Minneapolis:

"The Board of Governors authorizes your Bank to ex-ceed in individual cases maximum annual salaries under thePersonnel classification plan of your Bank by as much as

the first $3,000 of the maximum annual salary, pro-et at the total annual salary, including any such ex-

e?se over the maximum annual salary under the personnelclassification plan, shall not exceed t7,500.

accordance with the discussions at the recent

rjlat meeting of the Board with the Conference of Presi-n,t,!,this authorization is granted as a temporary measure":41te care of individual cases in the postwar situation

i.ndlng a comprehensive revision of the personnel classi-leation plan.

1,14, "The authority herein granted, which is in conformitythe recommendations of the Conference of Presidents

`'e in the recent joint meeting with the Board, differs

leZ'el" ;I! the proposal of your directors, as submitted with your

pe, of October 25, 1945, that salarymaximums under the130;nel classification plan be increased 15% for everyce;"10n. It is understood that this authorization to ex-

maximum annual salaries in individual cases is satis-"°rY to you and your Bank.

Letter to Mr. Reuben Thorson, Chairman of the Chicago Associa--11 of R4

'"ook Exchange Firms, Chicago, Illinois, reading as follows:

ernn,"This is in reply to your letter of October 31 to Gov-irlp-Lozymczak, relating to the Board's regulations govern-qp:L."-Lthdrawals and substitutions under the new margin re-'enlents,


1793

11113/45 —5--

"Since the substance of your letter is much the sameas that of the petition forwarded to us on October 19 byMr. William M. Cooper, Stock Brokers' Associates of Chicago,we are enclosing a copy of our reply of October 29 to Mr.Cooper.

"There is one point in your letter which does notaPPear to have been raised in that petition, but the samean?wer would nevertheless apply. It relates to the sub—

•ta.tution, in an undermargined account, of one securityalready owned by the customer) for another security that

?-e being carried in the account. We are not able to seenow this differs in principle from an ordinary switchingoperation, since the rules you suggest would seem to op—erate in practice to bring about the same result."


Letter to Mr. T. R. Leonard, Northwest Publishing Co., Seattle,

reading as follows:

"This is in reply to your letter of November 3, 1945,to a change you are contemplating in your publica—

u-Lon 'Northwest Used Car Values'.pr "Since RegulationlY no longer makes reference to ap-1:.8a1 guide values for used automobiles, there are no

effect for the designation of guide books by the440ard.

del. "If, as may become necessary when new cars are being1...„":-.11rsred in some volume, the Board finds it advisable tot tate the guide book mechanism, the Board would cer—

IllY not consider your proposed treatment of 1935 modelsas inlicavarw way interfering with the designation of your pub—

for Regulation licpurposes."


Thereupon the meeting adjourned.

Secretary.

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

Documents

19451113_Minutes.pdf