1289

A meeting of the Board of Governors of the Federal Reserve

SYsitem was held in V4ashington on Friday, December 16, 1938, at 11:30

a. m.

atter

PRESENT: Mr., Eccles, Chairman

Mr. Ransom, Vice Chairman

Mr. SzymczakMr. 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-

referred to was taken by the Board:

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

l'ederal Reserve System held on December 14, 1938, were approved unani-

fl1Q Sly,

Telegrams to Messrs. Kimball, Post, Young and Sargent, Secre-

t"ies of the Federal Reserve Banks of New York, Philadelphia, Chicago

44d San Francisco, respectively, stating that the Board approves the

eat -4-/11)14

4shment without change by the Federal Reserve Bank of San Francisco

°4 December 13, the Federal Reserve Banks of New York, Chicago and San

l'alleisco on December 15, 1938, and by the Federal Reserve Bank of

11111"(e1phia today, of the rates of discount and purchase in their ex-

ist ing schedules.

Approved unanimously.

Memorandum dated December 12, 1938, from Mr. Morrill, recom-

ell(ling that, for the reasons stated in the memorandum, Francis S.

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

12/16/38-2-

t 90

4ennY be appointed a Junior Operator, Office Devices, in the Office

Qf the Secretary, with salary at the rate of a,560 per annum, effec-

tive as of the date upon which he enters upon the performance of his

(14ties after having passed satisfactorily the usual physical examina-

tion.

Approved unanimously.

Memorandum dated December 13, 1938, from Mr. Clayton, Assis-

tant to the Chairman, recomalending, with the approval of Chairman

4e1eat that the salary of Bishop Hart, a messenger assigned to the

ellirman's section, be increased to i-,1,080 per annum, effective as

Or Dacenber 16, 1938.

Approved unanimously.

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

Of Atlanta, reading as follows:

"This will acknowledge receipt of your letter of

December 10 and attached list showing the salary for each

officer of your bank as approved by the Board of Directors

°f your bank for the year 1939, subject to the approval

of the Board of Governors.

"The salaries as shown in the above mentioned list

Will be reviewed by the Board and if it desires to take

1.11) any question with respect thereto with you before

formal action is taken by your directors at their first

meeting in January, 1939, it will do so before the end

of this year."

Approved unanimously.

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

St' Louis, reading as follows:

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

12/16/38 -3-

"This will acknowledge receipt of your letter of

December 12 in regard to action of the Board of Directors

of your bank in respect to salaries of officers of thebank for the year 1939.

"The salaries proposed to be paid officers of your

bank will be reviewed by the Board of Governors and if

the Board desires to take up any question with respect

thereto with you before formal action is taken by your

directors at their first meeting in January, 1939, it

Will do so before the and of this year."

Approved unanimously.

Letter to Mr. Paulger, Chief of the Board's Division of Exam-

illations, reading as follows:

"Paragraph number 7 of section 5240 of the United

States Revised Statutes (section 21 of the Federal Re-

serve Act), as amended, provides that the Board of Gov-

ernors of the Federal Reserve System, at least once each

Year, shall order an examination of each Federal reserve

bank.

"In accordance with this provision of the law, the

Board orders that at least one examination of each of the

twelve Federal reserve banks be made during the year 1939,

and the Board authorizes and directs you to institute and

conduct such examinations at such time or times as may

seem advisable in your judgment."

Approved unanimously.

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

c)t New York, reading as follows:

. "This refers to your letter of December 9, 1938,

With respect to whether the proposed service of Mr. Arthur

Phelan, Assistant Vice President of your bank, as a member

of an advisory board on parks, playgrounds and recreation

ln the Township of Teaneck, New Jersey, would be contrary

to the spirit of the resolution of the Board of Governors

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

1..29K)

12/16/38-4-

"of December 23, 1915, regarding the holding of politicalor public office by officers and directors of Federal Re-serve banks.

"It is understood that the advisory board in questionwill consist of a small number of citizens of the communitywho will serve without remuneration for an indefinitePeriod and that va.. Phelan has been informed that partyPolitics do not enter into the appointment of the membersof the board. It is noted that this matter has been pre-sented to your board of directors and that the directorshave expressed the view that Mr. Phelnn's appointment andservice as a member of the advisory board would not be con-trary to the spirit of the resolution of the Board of Gov-

ernors referred to above."On the basis of the circumstances stated, the Board

Of Governors offers no objection to Mr. .Phelan's appoint-ment and service as a member of the advisory board on parks,

Playgrounds and recreation of the Township of Teaneck,

New Jersey."

Approved unanimously.

Memorandum dated December 14, 1938, from Mr. Goldenweiser,

Iltre"-tor of the Division of Research and Statistics, recommending that

theof c50 be added to the 1938 non-personal budget for the Divi-

4 to cover rental and repairs of equipment during the remainder of

t4 current year.

Approved unanimously.

Thereupon the meeting adjourned.

hc) ecretary.

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