19461118_Minutes.pdf

1657

Minutes of actions taken by the Board of Governors of the Fed-eral n

aeserve System on Monday, Nov:mber 18, 1946.

PRESENT: Mr. Eccles, ChairmanMr. Ransom, Vice ChairmanMr. DraperMr. Evens

Mr. Carpenter, SecretaryMr. Sherman, Assistant SecretaryMr. Morrill, Special AdviserMr. Thurston, Assistant to the Chairman

AS Stated in the minutes of October 30, 1946, Mr. Vardaman

gueent on official business.

Minutes of actions taken by the Board of Governors of the Fed-

er'41 Reserve SYstem on November 15, 1946, were approved unanildously.

Memorandum dated November 13, 1946, from Mr. Leonard, Director

:rthe

sion of ExaminatiL)ns, recommending the appointment of Miss

cb Price

l'4te ()11 42,168.2:sper

that Division, with basic salaryat ther

annum, effective as of the date upon Vnich she

e4Itel*1411Pcn the performance of her duties after having passed the14111

Physical exasnjfljon.

)1ItstaPaated that Miss

The memorandum also stated that it was

Price would become a member of the Federal Ee-4rbire

retirrment system unless onshe had money deposit with the Civil

4111rIce Retirement System.

Approved unanimously.

Letter to

Of Ne Mr. Kimball, Vice President of the Federal Reserve

w Ycrk, reading as follows:

lette, %accordance with the reuest contained in yourof November 13, 1914, the Board of Governors ap-

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

11/18/46

tr,,proves, for a further period of six months beginning

rtober 16, 1946, the continuation of Li-. Thomas P.1"-ard in an unassigned position in the Cash and Col-4.aeeti.on

Function, with the understanding that the sal-erY Paid him while serving in this capacity will not

41(ceed the salary he would be eligible to receive ine

as .Position he occupied at the time he was given such

."

Of

Approved unanimously.

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

"11114, reading as follows:

lett"In accordance with the request contained in yourtm er of November 12, 1946, the Board approves the ap-10"litment of Cleve V. McGriff as an assistant examinerpj the Federal Reserve Bank of Richmond. If the ap-

etment is not made effective January 1, 1947, as'111 d, please advise us."

Richt!,

Approved unanimously.

Letterto Mr. Leach, ?resident of the Federal Reserve

°Ild, reading as follows:

le„ "In accordance with thePo'''uer, of November 12, 1946,f 1461/lent of Tam N. Humphresspo°1: the

Federal Reserve Bank of Richmond. If the ap-PlIll'All!nt is not made effective January 1, 1947, as

eu, please advise us."

4)11.4

Prepared in accordance with the understanding reached at the

g of t he Board on November 15, 1946, and reading as follows:

-

Attebery undoubtedly has advised you of his con-V1th Mr. Smerl.d with respect to a letter which

13razial.14"eY, Vice President in charge of your Little Rockor 4-e3 Maddressed to r. Brasfield, Assistant Treasurer

C°ramodity Credit Corporation, on November 8, 1946,

request contained in yourthe Board approves the ap-as assistant examiner

Approved unanimously.

Bank

1658

Lett er to Mr. Davis, President of the Federal Reserve Bank of

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

1659

11/1846-3-

Which he made a vigorous request that the Corpora-tion rescind its directive with reference to transfer-!ling the Little Rock loan activities of the CorporationT,0 Memphis, Tennessee.

"On Lednesday of last week, Mr. Brasfield called1,t'; 8rnead on the telephone regarding the receipt ofel.sgrams from Members of Congress vigorously protestinginst the transfer of certain activities of the Corn-

edit Corporation from the Little Rock BranchLeo the 14emphi5 Branch. It appeared that these communi-:,ti°ns were being inspired by someone connected withD"e Little Rock Branch. Early Thursday morning, Mr.'1:asfield called again and stated that he was more con-

an ever that soheone at the Little Rock Branchh:sLihsPiring the wires from Members of Congress because

"ad received a letter from Mr. Bailey in which he re-reconsideration of the action taken by the

je,ryor,iation. It is understood from Mr. Attebery's let-th' °4 November 15, 1946, which was received

today,Ariatt 14r. Bailey wrote letters to eight individuals insenasas suggesting that they communicate with their

gwr 8"")r and enclosing a cov of the letter thich hete to

Mr. Brasfield. As a result of these letters,Ar, ator McClellan and other Members of Congress from

wired pr 8” red to the Commodity Credit CorporationZrev,-8'ing the proposed transfer and urging immediateAttf.tLon of the order. As Mr. Smead stated to Mr.m11.41verY, the officers of the Corporation resented veryfro that the inspiration for these communications cameBa4 someone connected with one of the Federal Reserveole_s• Mr. Attebery's letter of November 15 makes it8t.1 that the officers of the Federal Reserve Bank of

Tlis knew nothing about what Mr. Bailey was doing.yo4 For reasons which immediately will be apparent toin vhe 7°1,Joard feels strongly that Mr. Bailey's actionyo4 is matter was highly improper and requests that0141 advise him accordingly. Since he is now 65 years194Z it iE assumed that he will retire on December 31,ytle in

accordance with the established policy of the4r1d eT villich provides for the retirement of officersYear -2-L°Yees of the Federal Reserve Banks during the

whtch they become 65 years of age.Nov ,1-t is noted that Mr. Attebery in his wire ofeMoee°Pies r -L4 to Mr. Bailey asked that he forward to youor in, of all correspondence originating with the Branch2iredby it having to do with the r,roposed trans-vici it will be appreciated if you will forward to

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

1660

"/18/46-4-

:!.he Board copies of the material received in response tol'Auls request as well as of any communication you send to" Bailey in this connection."

Approved unanimously.

Letter to Mr. Wayne, Vice President of the Federal RecerveBank 0 4..

"L Richmond, reading as follows:

UrArmi viem of the recommendation contained in Mr.G,:s'ead's letter of November 7, 1946, the Board ofoivernors will interpose no object on under conditionsubil.lemb,rship numbered 8 to 1.4hIch the member bank is

Ject to the investment of 422,500 by the Americanuecu-.,'lLY

Prop and Trust Company, 1:ashington, D. C., inai ertY at 443 Seventh Street, Soutimest, in thegu a °f Lashington, for the purpose of ex1Danding the

..1‘ters of its Southwest branch."

Approved unanimously.

Let ter to Mr. Knoke, Vice President of the Federal Reserve411k of ,

ilew York, reading as follows:

HT-Nolismi,j'" compliance with the request in your letter oftenZujer 13, the Board approves the opening and main-Of .C1:Ce of an account on your books for and in the nameTati e Banque d'Etat du Maroc, to be operated by thetharer office of the Banque d'Etat. It is understoodobtninu will open and maintain this account withoutot .6::"ing certification in accordance with Section 25(b)(i "e Federal Reserve Act, if for technical reasonsoil. the non-existence of a diplomatic representativetaili ceo in this country) a certification is not ob-alle It is further understood that you will in

°thele.:),IFIredeerfer participation in this account to the

Reserve Banks."

Approved unanimo

Secretary.

Chairman.

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