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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. McKee Mr. 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
Transcript
Page 1: 19381230_Minutes.pdf

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.

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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

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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.

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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.

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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

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"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

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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