19391227_Minutes.pdf

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A. meeting of the Board of Governors of the Federal Reserve

SYstem was held in Washington on Wednesday, December 27, 1939, at 10:45

a. m.

PRESENT: Mr. Eccles, ChainnanMr. McKeeMr. DavisMr. Draper

Mr. Morrill, SecretaryMr. Carpenter, Assistant SecretaryMr. 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 26, 1939, were approved unani-

Mously.

Letter to Mr. Preston, First Vice President of the Federal

Reserve Bank of Chicago, reading as follows:

"In view of the circumstances set forth in your

letter of December 18, 1939, the Board of Governors ap-

proves, effective January 1, 1940, the payment of sal-

aries to four employees of your Bank in excess of the

maximum annual salaries provided in the personnel clas-

sification plan for the positions occupied, as follows:

Name Position Annual Salary

X. M. Clark Supervisor, R.F.C. Dept.,Custody Division 4,700

G. W. Kuehn Application and CollateralClerk Senior, R.F.C.Dept., Custody Division 3,200

E. N. Henriksen General Bookkeeper, BondDept., Accounts and Rec-ords Division 3,120

A. C. Jona General Clerk, DisbursingDept. 3,200"

Approved unanimously.

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12/27/39 -2-

Memorandam dated December 26, 1939, from Mr. Smead, Chief

Of the Division of Bank Operations, submitting two letters dated

December 18 from :Mr. Preston, First Vice President of the Federal

Reserve Bank of Chicago, which requested approval by the Board of

changes in the personnel classification plan of the bank to provide

for the creation of the new position of "General Bookkeeper (Junior)"

in the Reconstruction Finance Corporation Department - Custody Divi-

sion, and for an increase in the maximum salaries for the positions of

"Waitress" in the Cafeteria and "Coupon Counter" in the Bond Department

(Registered Surrenders and Coupon Redemption Division) of the bank.

The memorandum stated that the proposed changes had been reviewed and

recommended that they be approved.

Approved unanimously.

Telegram to Mr. Knoke, Vice President of the Federal Reserve

Bank of New York, referring to his wire of this date with respect to

Possible loan by the Federal Reserve Bank of New York to the Sveriges

Riksbank on gold held by the latter bank in Oslo, Sweden, and suggest-

ing that the last sentence of a proposed cable to Governor Rooth of

the Sveriges Riksbank be changed so that the cable would read as fol-

lows:

"I have received your recent message through theSwedish Minister at Washington. While your inquiry is notSpecific as to purpose and method and while you indicatethat the matter is not urgent, I plan to discuss it with

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32/27/39

"our directors here and the Board in Washington. I men-tion this in case you care to cable me further information.Perhaps I should tell you that for some time it has beenthe policy of this bank not to make loans against gold heldin foreign countries."

Approved unanimously.

Telegram to Mr. /bung, President of the Federal Reserve Bank

of Boston, reading as follows:

"Relet December 21, your bank is authorized on De-cember 30 to set aside ;1'40,000 as reserves for losses onindustrial advances specified in your letter."

Approved unanimously.

Telegram to Mr. Martin, President of the Federal Reserve Bank

of St. Louis, reading as follows:

App

"Retel December 26, your bank is authorized on Decem-ber 30 to withdraw from surplus and transfer to reserve forcontingencies an amount equal to net profits during yearfrom sales of Government securities."

Approved unanimously.

Thereupon the meeting adjourned.

Chairman,

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