1391
A. meeting of the Board of Governors of the Federal Reserve
System was held in Washington on Friday, December 30, 1936, at 9:45
a. m.
PRESENT: Mr. Eccles, Chairman
Mr. Ransom, Vice Chairman
Mr. Szymczak
Mr. McKeeMr. Davis
Mr. Draper
Mr. Morrill, Secretary
Mr. Bethea, Assistant Secretary
Mr. Carpenter, Assistant Secretary
Mr.. Clayton, Assistant to the Chairman
The action stated with respect to each of the matters herein-
after referred to was taken by the Board:
The minutes of the meeting of the Board of Governors of the
Federal Reserve System held on December 29, 1938, were approved unani-
mously.
Telegrams to Messrs. Kimball and Post, Secretaries of the
Federal Reserve Banks of New York and Philadelphia, respectively, and
Mr. Holden, Deputy Chairman of the Federal Reserve Bank of San Fran-
cisco, stating that the Board approves the establishment without change
by the Federal Reserve Bank of San Francisco on December 27, by the
Federal Reserve Bank of New York on December 29, 1938, and by the
Federal Reserve Bank of Philadelphia today, of the rates of discount
and purchase in their existing schedules.
Approved unanimously.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1392
12/30/38 -2-
Telegram to Mr.. George C. Brainard, Deputy Chairman of the Fed-
eral Reserve Bank of Cleveland, reading as follows:
"Board of Governors has rescinded action taken on
December 20 in appointing you deputy chairman of rederal
Reserve Bank of Cleveland for coming year and has desig-
nated you as chairman and rederal reserve agent at Cleve-
land bank on honorarium basis for 1939.
"Board has fixed your compensation as Chairman and
Federal reserve agent on the uniform basis fixed for the
same position at other Federal reserve banks; i.e., at
the same amount as the aggregate of the fees payable dur-
ing the same period to any other director for attendance
corresponding to yours at meetings of the board of direc-
tors, executive committee and other committees of the board
of directors. It will be appreciated if you will advise
by wire of your acceptance.
"In accordance with usual procedure it will be neces-
sary for you to execute usual oath of office and corporate
surety bond in amount of 4;100,000. When executed bond
should be examined by counsel for Federal Reserve Bank of
Cleveland to see that it is executed in accordance with
rules printed on reverse side of form of bond 181 and sent
to Board Promptly for approval."
Approved unanimously.
In accordance with a recommendation con-
tained in a memorandum dated December 30, 1938,
from the Personnel Committee, and subject to
confirmation of his willingness to accept,
Dean G. Acheson, of the law firm of Covington,
Burling, Rublee, Acheson (;,; Shorb, Washington,
D. C., was appointed a Class C director of
the Federal Reserve Bank of Richmond for a
term of three years beginning January 1, 1939.
Messrs. Szymczak and McKee requested
that they be recorded as not voting on the
foregoing recommendation of the Personnel
Committee with respect ta the appointment of
a Class C director of the rederal Reserve
Bank of Richmond for the three year term be-
ginning January 1, 1939, for the reason that
the present incumbent is eligible for reap-
pointment under the policy heretofore agreed
to by the Board of Governors whereby a Class
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
:1393
12/30/38 -3-
C director can be appointed to succeed him-
self provided his period of service has not
been six consecutive years and, further, for
the reason that the information developed and
presented had not been of such character, in
their opinion, as to disqualify the present
incumbent, Mr. Sherwood, from reappointment.
Letter to Mr. Donald H. Sherwood, Vice President, Maryland Car
Car Wheel Company, Baltimore, Maryland, reading as follows:
"In view of the expiration at the end of this month
of your service as class 'C' director of the Federal Re-
serve Bank of Richmond, the members of the Board, acting
unanimously, have asked me to write you on behalf of the
Board a letter thanking you for the service which you have
rendered the Federal Reserve System.
"The members of the Board express the hope that in the
years to came you will continue your interest in the wel-
fare of the System, and they extend to you their best wishes
for good health and happiness."
Approved, Messrs. Szymczak and McKee
not voting for reasons previously stated.
Letter to Mr. Young, President of the Federal Reserve Bank of
Boston, reading as follows:
"Referring to your letter of December 27, 1938, the
Board approves payment of a salary to Mr. Dana D. Sawyer,
Manager of the Securities Exchange Division and Alternate
Assistant Federal Reserve Agent, at the rate of 3,200
per annum, effective January 1, 1939."
Approved unanimously.
Letter to Mr. Rounds, Vice President of the Federal Reserve Bank
of New York, reading as follows:
"In accordance with the recommendations contained in
your letter of December 23, 1938, the Board approves th
e
payment of salaries to Mr. Norman C. Cooper and Mr. Rober
t
W. Bullock, Alternate Assistant Federal Reserve A
gents, at
the rate of 43,500 and 03,200 per annum, res
pectively, ef-
fective January 1, 1939."
Approved unanimously.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1394
12/30/38 -4-
Letter to Mr. Rounds, Vice President of the Federal Reserve
Bank of New York, reading as follows:
"Reference is made to your letter of December 27,
1938, requesting the Board's approval of the payment for
an additional period of six months of a salary to Mr.
Harry G. Tappen in excess of the salary provided for the
position he is temporarily occupying.
"In view of the circumstances stated in your letter
the Board approves, for the period of six months from
January 1, 1939, the payment of a salary to Aft'. TapPen
at the rate of 0,700 per annum as Supervisor in the Work
Relief Checks section, which salary is .;.700 in excess of
the maximum provided for the position in the personnel
classification plan of your bank."
Approved unanimously.
Letter to Mr. Nardin, Chairman of the /ederal Reserve Bank of
St. Louis, reading as follows:
"In accordance with the recommendation contained in
your letter of December 21, 1938, the Board approves the
payment of a salary to Mr. John A. Links, Iederal Reserve
Agents' Representative at the Little Rock Branch, at the
rate of .2,400 per annum, effective January 1, 1939."
Approved unanimously.
Telegram to Mr. Young, Vice President of the Federal Reserve
Bank of Chicago, reading as follows:
"In accordance with your recommendation Board will
interpose no objection to proposed merger of Bank of Green
Bay and 'Peoples Trust & Savings Bank', both of Green
Bay, Wisconsin, under the charter of the latter institu-
tion as outlined in your letters of December 5 and 22,
1938 and inclosures, provided the proceedings, contracts,
and agreements in connection therewith are, in the opinion
of your counsel, legally effective and do not affect
legal status of Peoples Trust & Savings Bank as a member
bank, and that the transaction is approved by appropriate
State authorities. Please furnish Board with copies of
any amendments to bank's articles of incorporation, agree-
ments or contracts pertaining to the transaction."
Approved unanimously.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1395
12/30/38 -5-
Memorandum dated December 28, 1938, from Mr. Smead, Chief of
the Division of Bank Operations, stating that the form of balance
sheet to be used by State member banks in submitting reports of con-
dition will hereafter show interests of stockholders under the caption
'Capital Account' instead of under the caption 'Liabilities' as hereto-
fore, and that the reasons which prompted a change in this form will
apply as well to the form of balance sheet used by the Federal reserve
banks. The memorandum recaumended, therefore, that beginning with the
first weekly statement of condition of Federal reserve banks to be is-
sued in 1939 the capital accounts of the Federal reserve banks be shown
separately from their liabilities under the caption 'Capital Accounts',
and that certain other changes occasioned by this change, as set forth
in the memorandum, be made in the statement.
Approved unanimously.
Telegram to the Presidents of all Federal reserve banks, read-
ing as follows:
"Chairman of Presidents' Conference Standing Committee
on Collections has advised that in Committee's report of
December 17, 1937, words 'nonmember clearing banks' were
inadvertently omitted after words 'member banks' in para-
graphs relating to direct routing of noncash items to other
Federal Reserve districts. It appears that present circu-
lars of some Reserve banks include nonmember clearing banks
under direct routings and others do not. In circumstances
Board will offer no objection to inclusion by any Federal
Reserve bank that wishes to do so of words 'and nonmember
clearing banks' after words 'member banks' in first line
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1396,
12/30/38 -6-
"of last paragraph beginning on page 2 of its letter S-132
of December 17, 1938, and after words 'member banks' in
second line of last paragraph of that letter."
Approved unanimously.
Memorandum dated December 28, 1938, from Mr. Morrill referring
to the action of the Board on December 23 authorizing the Federal re-
serve banks to pay in 1938 the amount scheduled to be paid in 1939 on
prior service liability to the Retirement System, as recommended by
the Conference of Presidents at their recent meeting, and stating that
this action contemplated that a similar payment would be made by the
Board covering the amount remaining on its prior service liability.
The memorandum recommended that this payment, in the amount of
$81,685.44, be authorized.
Approved unanimously.
Upon recommendation of the Personnel
Committee the Secretary was authorized to
negotiate a new contract with the Welfare
and Recreational Association of Public Build-
ings and Grounds, Inc.', covering the opera-
tion of the cafeterias, snack bar, and dining
rooms in the Board's building, which expires
on December 31, 1938; with the understanding
that the new contract would be on substantially
the same basis as that now existing except
that it would provide (1) that fifteen per-
cent of any profits due the Board for any
one month shall be paid to the manager of
the cafeterias and dining roams and five per-
cent of any such profits to the assistant
manager, (2) that the Association shall pay
the Board $5.00 per month for telephone ser-
vice in addition to toll charges, 00.00
per month for steam, 05.00 per month for
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
12/30/38
1399
electricity, and the full amount of the monthly
gas bill submitted by the gas company so long
as the Association continues to be the only
user of gas in the Board's building, and (3)
for the termination of the contract by the
Board at the end of any calendar month by no-
tice in writing prior to the first day of the
month and by the Association at the end of any
calendar month by notice in writing prior to
the first day of the preceding month, although
the Board may agree to a shorter period of
notice of termination by the Association.
Thereupon the meeting adjourned.
Chairman.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis