19400430_minutes.pdf

r 91

4 meeting of the Board of Governors of the Federal Reserve System

WaS held inWashington on Tuesday, April 30, 1940, at 10:30 a.m.

PRESENT: Mr. Ransom, Vice ChairmanMr. SzymczakMr. McKeeMr. Draper

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the ChairmanMr. Thurston, Special Assistant to the

ChairmanMr. Smead, Chief of the Division of Bank

OperationsMr. Dreibelbis, Assistant General CounselMr. Vest, Assistant General Counsel

Thehad

attentionbeen

called beforeNit Mr.

Caldwell, Chairman

NPonding to the Board's letter

1110'Neral Reservethe

Board felt that

13aq, that it cannot

contributions to4tter

th

from Mr.

Caldwell)s. board of

directorsthe 11(3arcl of

Governors1116`1e

donations to the AlliedttY

Chest of KansasMr.

Morrill also

17agner, Chairman

Co

of the

this

Bank of

members of the Board who were in Washington

meeting to a letter dated April 25, 1940,

of the Federal Reserve Bank of Kansas City,

of April 10, 1940, to the President of

Kansas City, in which it was stated that

it should not depart from the position taken in the

sanction the use of Federal Reserve Bank funds to

organizations

which

such as community chests. The

vas read by Mr. Morrill, stated that

urged, for reasons set forth in the letter, that

approve the request of the Bank for authority to

Charities

City, Kansas.

of Kansas City, Missouri, and the

read a letter which the Board addressed to

of the Committee on Banking and Currency of the

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

592

111/3OV40 —2—

Senate, under date of May 17, 1938, in connection with S.4022, a bill

to am_ Afl.C1 the Federal Reserve Act to permit the Federal Reserve Banks

or m..„Lember banks to make charitable, philanthropic or benevolent contri—

butioa .s In localities where State banking institutions were permitted

to

.

mak

ther•'In, that the language in the bill making it applicable to Federal

Reserve Banks be omitted. In the ensuing discussion it was pointed out

that this bill was introduced in the Senate again in 1939 as 3.1964

and was made applicable only to national banks. In this connection Mr.

Ransom stated that while this bill was before the Senate he talked to

inSenator-agner regarding it and that he thought the Senator understood

the reasons for the Board's position regarding local contributions ofthis lc

Ind by the Federal Reserve Banks.

e such contributions. That letter suggested, for reasons stated

The opinion was expressed and concurred in by all of the membersPreset

that in view of the legislative history of the bill above re—

to as well as the position taken by the Board on matters of this

kind ft)r 'flatly years, and the further fact that it would be extremely

litficult in practice to distingui

Ilstitied and unjustified

sh between what would constitute

contributions, the position taken by the

Re'aN should not be departed from.

At the conclusion of the discussion Mr.SzYmczak was requested to call Mr. Caldwellon the telephone and explain to him fullythe reasons for the Board's position.

141" Szymczak presented a letter to the Chairmen of all Federal

e Banks which was discussed and amended to read as follows:


to hi

Itncler date of April 2, 1940' by Mr. Peyton,Nder41

4A0/40

"It has been the custom for the Board of Governors, inres,1-4)nse to requests from the Federal Advisory Council, to

1:r" po.^

l'opics for consideration by the Council at its meet-Bog

rd has s in Washington. In accordance with this procedure, the42

suggested that consideration be given to the follow-40"2g topic s at the meeting of the Council which will be heldu May 19-21, 1940.al "The Board will appreciate it if your directors willanr,diecuss these topics at their next meeting if convenient,of" lf you will let the Board have the benefit of the views

Your directors with regard to both questions:

1, The Council has urged upon the Board the'modification of the policy of extremeeasy money'. The Board would like to havethe opinion of the Council as to the moreimportant causes of the 'easy money' con-ditions; as to ?hat actions within thePower of the Board of Governors would be de-sirable and effective in the public interest;

:Yeic.ltilsas to th e probable consequences of such

2, What are the business prospects for the next90 days and in the Council's opinion do suchProspects justify any change in the System'sPresent banking and monetary policies?"

The letter was approved unanimously withthe understanding that at the meeting of theFederal Advisory Council on May 19-21, 1940,the Board will present for discussion with theCouncil the question whether a procedure shouldbe

established under vhich the members of theCouncil would discuss with the boards ofdirectors of the Federal Reserve Banks in theFespective districts which they represent,oefore, as well as after, meetings of the Fed-eral Advisory Council, the topics consideredby the Council.

At Mr. n _-1'an30m's request there was

th Reserve Bank of Minneapolis,

presented a letter addressed

President of the

suggesting a possible solution of

of exchange charges. Mr. Ransom stated that he had replied

F)93


MW40—4—

to theletter but that he would suggest

Nuested to prepare an analysis of thet(lr consi

deration by the Board and for1114Y wish to

Mr.

atistics,

make thereof.

that members of the

suggestions made by

such further use as

594

staff be

Mr. Peyton

the Board

In accordance with Mr. Ransom's sug—gestion Messrs. Smead and Vest were requestedto prepare such an analysis.

Goldenweiser, Director of the Division of Research

joined the meeting

Reference was made to a/41gr1er,

Chairman of the Banking and14141' date of April 25, 1940, fordlIced

'xi Senator Mead on April1Zi)

-°t the Federal Reserve Act

rve Banks. It was stated

House of Representatives

e'rci of California, and

inall Eccles'

174s raade at the

meetings

report on

'should also be

"IleY, but that otherwise,

l'equest from

Senator

tOara* It wn

—8 suggested that,

at this point.

routine request

and

received from Senator

Currency Committee of the Senate,

a report on S.F.8391 which was intro-

24, 1940, and which would amend section

relating to industrial loans by Federal

that a similar bill was introduced in

on April 25, 1940, by Congressman Thomas

it was agreed that if, as a result of

conversation with Congressman Ford, to which reference

of the Board on April 19 and 23, 1940, a re—

Congressman

sent to the

Ford's bill is received a copy of the

Senate Committee on Banking and

and in the absence of further developments,

Wagner should be treated as a routine one andmade thereto, in accordance with the established practice °I

before any rEmort is made on the


95

4A0/40-5-

13111, copies thereof should be

Nllest that the bill be consideredhe tbanks and the Board advised ofellY

objections to the bill from the

P°11cies and operating practices-

SPurney, Building Manager,

4 to Miss Mary Ruth Counts, who is operating the beauty parlor

inth A

21, 1: -°ardts building under a contract with the Board dated April

-Lty ce

sent to the Federal Reserve Banks with a

by the officers and directors of

their views and whether they see

standpoint of the banks' lending

It was agreed unanimously that a draftof such a letter to the Federal ReservzShould be prepared for consideration a themeeting of the Board on May 3, 1940.

There was then presented a memorandum dated April 23, 1940, from

W$10,000 for the" t

whqh

enY change

et4ceeedillg Year,

in theCO4ce‘ation

recommending that the Board grant per-

to reduce the limits of her malpractice beauty parlor

from the present limits of $15,000A25,000 to

coming year with the understanding that at the

he P°11eY year the matter will be considered again to determine

need be made in the liability coverage for the

In the consideration of this matter it was stated

°Pinion of counsel Miss Counts operates the beauty parlor

aan independent contractor and that the Board would have

01'Y

whatsoeverthe

beailty parlor.

McKee moved that Mr. Spurney's recommendationbe

approved.

CThe motion was put by the chair and

11.11-ed, Mr. Ransom voting "no".

on any claim made against her in the operation

At the conclusion of a discussion Mr.


4/30/40

Mr. Morrill referred toLeach,

President of the Federal

qApril 29, 1940, extending anto

596

-6-

a letter addressed to the Board by Mr.

Reserve Bank of Richmond, under date

invitation to the members of the Board

attend the joint meeting of the directors of the head officebr "

anch__of the Richmond Bank on Tuesday, May 14, 1940.

8171eadDreibelbis, and Vest left the meeting.

and

It was understood that Mr. Szymczakwould attend the meeting and that if Mr.McKee could arrange his plans he wouldalso be in attendance.

At this point Messrs. Bethea, Carpenter, Thurston, Goldenweiser,

Before this meeting there had been circulated among the membersOf the

Board a memorandum dated

114-tting memoranda containing

April 20, 1940, from Mr. Morrill sub-

the recommendations of the heads of the

l'e°Pective Divisions of the Board's staff

aries of employees inPointed

ollt that noneerease the

salary of an°t the salary range fortll'at the

recommendationstor the past

POlicyar.y.

kento

for adjustments in the sal-

the several Divisions. Mr. Morrill's memorandum

of the salary adjustments recommended would in-

employee to a level in excess of the maximum

the corresponding Civil Service grade and

represented an accumulation held in abeyance

several months pending the formulation of a general sal-

elaYton stated that he had discussed the recommended adjust-

t salarY with Chairman Eccles, who was absent from the city, and

he Chairman wished to be recorded as favoring their approval.


7,97

4/30/40

B18h0P Hart

-7-

After a discussion of the recommend-ations the salary adjustments proposed bythe respective Division heads were approvedunanimously as follows, effective as of May1, 1940:

BOARD MBIBERS' OFFICES

Messenger

SECRETARY'S OFFICE

Secretarial and Administrative

J.Edward Kilgore„?tdria B.

Poeppel41 X. Thompson

Ivonrle Dodd'1th f

A. Viestergren ,(31111 C. Brennanu% Jeanne

Krieger

SemPson li. Bass

aoh: N.

ItileY) Jr'

tlearior 1c. Andersonkarat B.

Grimes) Jr'

Sarah B. Murphytlildred F. Smithkve.

lice R.

MeKnewAt. TyrrellSaralee O'BrienDorothy M.

Parkhillk

Xatherine meisertert C.

Dedmany Jr'

3tkiee ThomasonvE11118 Ce KolinskiWelter E. PaulIi,azel I.

CofiIlan'10bert 177. Rieseberg1/4tlie,Arden Ball14,rgery

Davisliblvien ReislipNth

McCrary1111),Y A. Pitzer,T.'ke III EllisonM.

Poundstonelqtkilel B. Maize,

Jr'1\4'4118

4011enberger44"lc i P. irtxrner

Administrative AssistantChief File ClerkGeneral AssistantVoucher ClerkSecretary to Mr. MorrillPersonnel ClerkSecretary to Mr. BetheaChief StenographerAssistant Chief File ClerkFile ClerkAssistant Voucher ClerkSecretary to Mr. CarpenterStenographerClerkFile ClerkFile ClerkStenographerStenographerAssistant IndexTypistStenographerStenographerFile ClerkClerkStenographerFile ClerkFile ClerkFile ClerkFile ClerkClerkClerkPagePagePage

Clerk

Salary Increase From To

1!;1,080 $1,200

3,2O0 $3,4002,900 3,1002,800 2,9002,700 2,9002,700 2,8002,500 2,6002,400 2,5002,200 2,3002,100 2,2002,000 2,0602,000 2,1001,980 2,1001,860 1,9801,800 1,8601,780 1,8401,680 1,7401,680 1,8001,560 1,8001,500 1,6201,500 1,5601,440 1,5601,440 1,5601,380 1,5001,380 1,5001,320 1,5601,320 1,3801,320 1,4401,320 1,3801,320 1,4401,260 1,5001,260 1,5001,080 1,2001,080 1,2001,080 1,260


598

'1/40/40-8-

SECRETARY'S OFFICE (contid)

ServiceFunctions

Ficqsa J. Griffith

kildin 0 eration and MaintenanceHerbert I%

Youngrpelitirlee Lindamood-4oratle B

B

. Handley

Jo

Chester

DamPleYJesePh T .. GlotfeltY,

Harveykrad B.

ShiPPJames

th L

H. Macklin

Harvie NewtonRu.

Jarvis

Precleric w SolomonHoard

HackleYSara. A.Dyer11,tisan L. Hooff%Jerome 71. Shay

tverett Entrikenkirla

4 B.

BoiseauIh.1eY Itiabnettqehard A. HillCitlra A.

Hutchins°nMcDorinellnqerl V. DolanNrard L. Hargett

aohx). L. thiniey-

Field

MiarffbougalKoDpang

aollriTiBoy

senN/erii S.

/Ayers

Jr.

Telephone Operator

First Assistant EngineerSecond Assistant EngineerClerkPainterThird Assistant EngineerFourth Assistant EngineerAssistant GardenerPorterPorterDay Maid

OFFICE OF GENERAL COUNSEL

Assistant CounselAssistant CounselChief StenographerLaw ClerkLaw ClerkLaw ClerkSecretarySecretaryFile ClerkStenographerStenographerStenographerMessengerMessenger

DIVISION OF EniaNATIONS

Federal Reserve ExaminerFederal Reserve ExaminerFederal Reserve ExaminerAssistant Federal Reserve

ExaminerAssistant Federal ReserveExaminer

Assistant Federal ReserveExaminer

Salary IncreaseFrom To

$1,440 $1,500

$2,400 $2,5002,060 2,1201,800 1,9001,500 1,7401,500 1,6801,440 1,6201,260 1,3201,140 1,2001,140 1,200960 1,020

$4,800 $5,1003,600 4,2003,000 3,2003,000 3,5002,400 2,9002,200 2,4002,000 2,2002,000 2,2001,900 2,1001,900 2,1001,900 1,9801,800 1,9001,440 1,5001,380 1,440

$4,000 $A15004,300 4,5006,800 7,000

2,000 2,200

2,100 2,400

2,100 2,200


599

41zo/40-9-

DIVISION OF EXAMINATIONS (conttd)

1'W:1...Force (cont'd)E. Ralp1-

71-71Cissey

John C. Franzoni

P4win j. Johnson

Aklrew

Thomas

PJ.Harold

Lee

ontZapairlin11,

McClellandP. a,

wirikierJohti H. Radford, Jr.Glerlti M. Goodman

C. ?

0, HostruP. A.

NelsonIt, k

H. pollardia B.

Hopkins

Clerical Staff

ettinelerie L. KearneY

Arch B. Brown

liarold0 F.

Stone8Natin D. Berry

/lortirner B. Danielsp

f,D4vicl M. KennedYrcirier L. Boothe, 11

;1114 Mitchellbu°1111 R.

Farrell'4riorie F. ,Tones

Howard

Newman

Loretta M. E. Goh

een1/4'11

Rainer

Assistant FederalExaminer






Reserve

Reserve

Reserve

Reserve

Reserve

Reserve

Federal Reserve ExaminerFederal Reserve ExaminerFederal Reserve ExaminerFederal Reserve ExaminerFederal Reserve ExaminerFederal Reserve ExaminerFederal Reserve ExaminerAssistant Federal ReserveExaminer

StenographerStenographerClerk-StenographerClerk-StenographerMessenger

DIVISION OF BANK OPERATIONS

Technical AssistantTechnical AssistantTechnical AssistantClerkClerkClerkComptometer Operator-ClerkSecretary

Salary IncreaseFrom To

$2,200 2,300

2,400 2,500

2,500 2,700

2,600 2,700

3,100 5,400

3,600 3,800

4,400 4,5004,400 4,5004,500 4,6005,000 5,2005,300 5,5005,400 5,6005,700 5,800

2,300 2,500

1,660 1,7601,740 1,8002,000 2,1002,000 2,1601,320 1,400

t4,600 $4,8004,100 4,3004,000 4,2003,100 3,2003,000 3,2002,000 2,1002,000 2,1001,900 2,000


600

4/t0/40

Avelyn BuchananLouise E. EvansTrtireeis5zsa 13Bry.

Razietaminger

Margaret M. D BaliMartinZelpha

vrightEllen L. CraighiJerry L. llpiiiiarris

Praxik R. CarfieldLeroy M. RiserMaxwell R.

ConklinChandler M MorseVictor . LongstreetMartit

Itrost11. B. Hersey30hil O. BergelinRt.°1alid

ldell E I.

Robinsonger.

traviThorneElsie Racks

„elz1ton Gehraan4. 4C.

Barton Jetieri , r.ck C. Dirks,Alvern

hild A R.

Sutherland41111nderson

KennySherrard14.,-4431114s M. parsons,71naond a. Collieruoztthy R. Deeds1111th

Zones101' C

McCloud

t.,4841e S. Caskev

H

qbal T

.vans3 NIQr E.

Prase1;1114`, aigh

uIel Marsht. P-ott„- A. tilliamsmul*I4 P.

blirt411 .

-10-

DIVISION OF BANK OPERATIONS (cont1d)Salary Increase

SecretaryStenographerStenographerComptometer OperatorComptometer OperatorComptometer OperatorComptometer OperatorComptometer OperatorMessenger

DIVISION OF RESEARCH AND STATISTICS

ice Waybur

'14talie Boiseau

Senior EconomistSenior EconomistSenior EconomistSenior EconomistSenior EconomistSenior EconomistSenior EconomistJunior EconomistJunior EconomistJunior EconomistLibrarianJunior EconomistJunior EconomistJunior EconomistAssistant LibrarianJunior EconomistJunior EconomistJunior EconomistEconomic AssistantSecretarySecretaryEconomic AssistantEconomic AssistantSecretarySecretaryClerkEconomic AssistantClerk-StenographerEconomic AssistantSecretarySecretarySecretary

From To

$1,800 0.19001,740 1,8001,680 1,7401,740 1,8001,680 1,7401,680 1,7401,680 1,7401,500 1,6201,200 1,260

$6,000 $6,4005,400 5,8004,600 5,0004,600 5,0004,400 4,8004,200 5,0004,000 4,8003,600 4,0003,600 4,0003,600 3,7003,500 3,8003,450 3,8003,300 3,7003,300 3,5003,250 3,4003,150 3,3002,800 3,2002,700 2,9002,400 2,7002,400 2,5002,000 2,1602,000 2,2002,000 2,2001,900 1,9801,900 2,1001,900 2,0401,900 2,1001,900 1,9801,900 2,1001,900 1,9801,900 2,2001,900 1,980


tOtito

4/30/40

-11-

DIVISION OF RESEARCH AND STATISTICS

lth FishburnElizabeth P.

Tewksbury11441 WaldCaroline M. Burgesskeanor M. EsserG.

Itlizabetb FordLottie

KriegelRose Schultzlle Barnettborothea Paetor

Cathtiizabeth Barnetterine M. CountsAlice Swindlehurstb11111.1e1 W.

trice ThompsonQea

Barco S.

Baldwin,Tate

13arbara S. Depenbrock

Ch whiteukizabeth P.

Longleyule11)7'

les G. Trescottmes,,3e D.

smith114honcl Van Brakle

btetis N. Dembitz'or4tar Brava,

The actiontererr

ClerkClerkEconomic AssistantLibrary AssistantLibrary AssistantClerkSecretarySecretaryClerkClerkClerkClerkClerkClerkClerkClerkDraftsmanClerkClerkMessengerMessengerMessenger

DIVISION OF SECURITY LOANS

Special AssistantSpecial Assistant

(cont' d)SalaryFrom

stated with respect to each of theed to was then taken

„era,The minutes of the meeting of the Board of Governors

eserve System

Letter to Mr. Young,n.'eacling as follows:

offic 'The

salariers of the14e-Y 1, 1940, asaPproved, by the

by the

held on

Board:

IncreaseTo

$1,800 $1,9801,800 1,9201,800 2,0001,760 1,8601,720 1,8601,720 1,9001,720 1,8601,720 1,8001,700 1,8001,700 1,9001,640 1,8001,640 1,8001,640 1,8001,640 1,7401,620 1,7401,600 1,6801,540 1,6201,540 1,6801,540 1,6801,460 1,5001,380 1,4401,200 1,320

$3,600-3,600

3,9003,900

601

matters hereinafter

of the

April 29, 1940, were approved unanimously.

President of the Federal Reserve Bank

es fixed by your Board of Directors for theFederal Reserve Bank of Boston, effectivesubmitted in your letter of April 25, areBoard of Governors as follows:

of


,A0/40"PresidentFirst Vice PresidentCashierSecretary and General

CounselAssistant CashierAssistant CashierAssistant CashierAssistant CashierAuditor

Assistant Counsel

-12-

Roy A. Young $30,000William W. Paddock 20,000William Willett 14,500

Krickel K. Carrick 14,000Ellis G. Hult 8,750Ernest M. Leavitt 7,250Carl B. Pitman 8,500L. Wallace Sweetser 7,500John J. Fogg 5,500A. C. Kennel, Jr. 5,000

wrhe above salary approvalstv40, to April SO, 1941, subjectZent and First Vice President to

he aPproval of the Board of Governors upon the expirationof their present terms of office."

are for period May 1,in the case of the Presi-their reappointment with

Approved unanimously.

the

Thereupon the meeting adjourned.

-602

kY)0-1,A}:QpSecretary.


19400430_minutes.pdf

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