19500706_Minutes.pdf

913

Minutes of actions taken by the Board of Governors of the

4deral Reserve System on Thursday, July 6, 1950.

PRESENT: Mr. McCabe, ChairmanMr. SzymczakMr. Draper

Mr. Carpenter, SecretaryMr. Kenyon, Assistant Secretary

Memorandum dated June 29, 19)0, from Mr. Sloan, Assistant

ector of the Division of Examinations, submitting for approval

letters to the following foreign banking corporations calling for

the submission of reports of condition as of June 30, 1950:

Bankers Company of New YorkFirst of Boston International

CorporationInternational Banking CorporationMorgan & Cie. IncorporatedThe Chase BankBank of America

New York, N. Y.

New York, N. Y.New York, N. Y.New York, N. Y.New York, N. Y.New York, N. Y.

The Memorandum stated that the first four corporations were organ-

Izecl under State laws but operate under agreements made with the Board

1314'slaant to the provisions of section 2) of the Federal Reserve Act,

elici that The Chase Bank and Bank of America were chartered by the

under the provisions of section 2)(a) of the Act.

Approved unanimously.

Memorandum dated July 3, 19-)0, from Mr. Marget, Director of

the 1)ivision of International Finance, recommending an increase inthe basic

biyi81,04,salary of Miss Caroline Lichtenberg, an economist in that

from $3,825 to $3,950 per annum, effective July 9, 1950.


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

914

7/6/50 -2-

Memorandum dated July 3, 190, from Mr. Bethea, Director

or the Division of Administrative Services, recommending that the

l'esignation of Ernest I. Burke, a guard in that Division, be

4ccePted to be effective, in accordance with his request, at the

close of business July 7, 1950.


Letter to Mr. Clarke, Secretary of the Federal Reserve Bank

°I* New York, reading as follows:

"Reference is made to your letter of June 26,1930, advising that the Board of Directors of theFederal Reserve Bank of New York has granted leavewith pay for a period of up to forty days to Mr.IlenrY C. Wallich, Chief, Foreign Research Division,Research Department, in order to enable him toUndertake an assignment as a member of the NewYork Regional Team which is to assist Mr. GordonGray, Special Assistant to the President, inconnection with a special project which Mr. Grays undertaking for the President of the United States,;I"ing to do with the problem of foreign aid after1952.

, "It is noted in Mr. Dawson's letter of June 22,'L950, to Mr. Sproul, copy of which was enclosed withYour letter, that.the Executive Office of the Presidentreque sts that Mr. Wallich be made available on or aboutJulle 24, 1950, for this assignment. It is further notedthat the Executive Office of the President will authorize8.11d provide reimbursement for any transportation expenses°I' Per diem in lieu of subsistence incurred in connectionvith Mr. Wallich's assignment.

"This matter has been brought to the attention ofthe members of the Board, and no objection is interposed

t° Mr. Wallich's assignment."


Letter to Mr. Morrison, Vice President of the Federal Reserve

1


• k g

7/6/50-3-

of Cleveland, reading as follows:

"Reference is made to your letter of July 3,1950, requesting the Board's approval for the pay-ment of salary to an employee of the Federal ReserveBank of Cleveland at a rate which is in excess ofthe maximum for the grade in which his present

Position is classified."For the reasons given in your letter the

Board of Governors approves the payment of salary

to Mr. Arthur Crosby lichens, Card Check Receivingand Shipping Clerk, at the rate of $3060 per annum,Which rate exceeds the maximum of the salary gradein which his position is classified."


Letter to Mr. Slade, Vice President of the Federal Reserve

of San Francisco, reading as follows:

"In accordance with the request contained inYour letter of June 30, 19)0, the Board approves theaPPointment of Ernest A. Heron as an assistant examinerfor the Federal Reserve Bank of San Francisco."


Letter to Mr. Armistead, Vice President of the Federal Re-

8erve Bank of Richmond, reading as follows:

Reference is made to your letter of June 22,1950/ submitting the request of the Union TrustComPany of Maryland, Baltimore, Maryland, for per-Illission to establish a branch in the Dundalk area,Which is located in Baltimore County, just outsidethe city limits of Baltimore.

"In view of your recommendation, the Board ofGovernors approves the establishment and operation°f a branch in the Dundalk area, Baltimore County,IlarYland, by the Union Trust Company of Maryland,Baltimore, Maryland, provided the branch is establishedwithin six months from the date of this letter andwith the understanding that Counsel for the ReserveBank will review and satisfy himself as to the legalityOf all steps taken to establish the branch."


916

Approved unanimously.unanimously.

Letter for the signature of the Chairman, to Mr. John

S' Coleman, President, Burroughs Adding Machine Company, Detroit,

lilehigan, reading as follows:

ta.4k

"Bob Stevens has written that as Chairman of theConference of Chairmen of the Federal Reserve B_nkshe has appointed you as a member of the three-mancommittee composed of a representative of the Chair-men's Conference, the Presidents Conference, and the.Board of Governors to submit a report on the problemsinvolved in the effective budgetary control of expensesof the Federal Reserve Banks. The Board has appointedMr. Evans as a member to serve on the committee and thePresidents have appointed Mr. Leach, President of theFederal Reserve Bank of Richmond.

"The Board would be pleased if you would serve asChairman of the committee.

"It was thought when the matter was discussed bythe Board and the Presidents at their recent jointmeeting, the first thing the committee should do isto submit a recommendation, for approval by the Presi-dents, the Chairmen, and the Board, as to how the studyshould be made. We would be pleased if you wouldsuggest two or three alternative dates when the committeecsz get together and we will be glad here to make thenecessary arrangements for the meeting on one of those!lates, Mr. Evans will be on vacation until July 17but if it should be convenient for you and Mr. Leach tomeet before that date either Mr. Szymczak or I willsit with the committee for its first meeting."


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

°f Boston, reading as follows:

"Your wire July 5 to Thomas. There appears norea son why the Boston Bank should not cooperate withIlanco de Guatemala and permit Mr. Rafael Piedrasanta


71/EV5o -)-

"to spend the summer with your }link. We assume thatthis merely involves use of your Bank's facilitiesto give Mr. Piedrasanta experience and practice inre gional economic research and does not involve

Paying him any salary or stipend."


Memorandum dated May 24, 1950, from the Division of Per-

sollnel Administration, submitting a revised statement of Board pro-

cethires regarding fair employment practices pursuant to Executive

°Iscier No. 9980, dated July 26, 1948, relating to fair employment

Plse.etices within the Federal establishments.

Approved unanimously in the follow-

ing form with the understanding that

copies would be sent to the Fair Employ-ment Board of the Civil Service Commission:

The following procedures are hereby established inorder to carry out the spirit and purpose of ExecutiveOrder of the President 9980, dated July 26, 1948, relatingto Fair Employment Practices within the Federal establish-Ment.

A. It is the policy of the Board of Governors of theFederal Reserve System that all personnel actions, includ-ing selection for employment, shall be based solely onmerit and on the qualifications of applicants or employeesavailable, regardless of political affiliations, creed,color, race, or national origin, and having due regard forveterans' preference as set forth in the Veterans' PreferenceAct of 1944. Within the meaning of these procedures, per-sonnel actions shall include failure to act.

B. The Personnel Officer of the Board's staff has been

designated as Fair Employment Officer and it is his duty,

8I4(3ng other things, to appraise at regular intervals allpersonnel actions involving employees of the Board of Governorsto determine whether such actions conform to the Fair Employ-ment Policy expressed above.


7/6/5o-6-

C. Any employee of the Board of Governors, orany person failing of appointment to a position onthe Board's staff, who feels that a personnel actionaffecting him has been taken because of race, color,religion, or national origin may file a complaintWith the Fair Employment Officer. All such complaintsShall be in writing and shall state specifically andin detail the facts which in his judgment constitutealleged discrimination against him on grounds of race,color, religion or national origin, together with fullinformation regarding the specific personnel actioncomplained of, the approximate date, and the reasonsin support of the alleged discrimination. No complaintShall be considered unless filed with the Fair EmploymentOfficer within 30 days from the date the complainantlearns of the alleged discrimination and not later thanSIX months from the date of the personnel action whichconstitutes the basis of the complaint.

D. Upon the receipt of any such complaint, thePair Employment Officer shall promptly make such in-vestigation as he deems necessary to ascertain the factsalleged in the complaint and, if possible through in-formal negotiations, attempt to effect a satisfactorysolution of the complaint. If a satisfactory solutionc,an not be effected by informal negotiations, the FairhrnPloyment Officer shall, on the basis of all materialfacts relevant to the complaint, make a decision as toWhether there has been discrimination as alleged inthe complaint.

E. If such decision is favorable to the complainantthe Fair Employment Officer shall report the matter tothe Board's Personnel Committee, together with hisI'ecommendation, for such corrective action as may belil!cessary. If the decision of the Fair Employment Officer

unfavorable to the complainant, the Fair EmploymentJf.ficer shall so inform him in writing and advise him of15 right to appeal to the Board's Personnel Committee

/1-thin 10 days from the date of the receipt of the decision.appeal shall be made in writing. The complainant shallbe advised that he has the right to be represented by

,c)Illasel and that he may request a hearing before the Board's:ersonnel Committee if he so desires. A transcript or'jlInulla-rY of the testimony at any such hearing shall be


7/6/30—7—

available for inspection by the complainant or hisauthorized representative. The Fair Employment OfficerShall make a written report of the matter, includingsuch recommendation as he deems advisable to the Board'sPersonnel Committee. In all appeals the PersonnelCommittee shall make a decision in the matter baseduPon all the facts contained in the record of the case,and notify the interested parties in writing of suchdecision. The decision of the Personnel Committeeshall be reported to the Board of Governors and, ifit is not disagreed to or changed by the Board ofGovernors, such decision will be regarded as finalaction by the Board of Governors.

F. The Secretary of the Board of Governors will

n"ify the complainant of any such final action bythe Board of Governors and, in the event such finalaction is adverse to him, of his further right ofappeal to the Fair Employment Board of the CivilService Commission. Any such appeal must be madeya.thin ten days of the date of receipt of the adversedecision and a copy of the notice of the adversedecision must accompany each appeal. If the com-Plainant elects to appeal to the Civil Service Commissiontinder authority of Law, such as the Veterans' PreferenceAct of 1944, he may not thereafter avail himself of theProcedures under Executive Order No. 9980.

Memorandum dated July 3, 19)0, from Mr. Marget, Director

°r thDivision of International Finance, recommending that Frank

M. TA--4'agna, a member of the Division staff who is currently in

Ilror)e°n, loan to the Economic Cooperation Administration, be per-

141tted to attend meetings of the United Nations Economic and Social

Co11/1„..at Geneva for a period not to exceed three days, plus travel

time

' cluring the month of July, it being understood that Mr.Ta.pn'4a 'would attend such meetings as an informal observer.



920

7/6/5o -8-

Memorandum dated July 6, 19,00 from Mr. Szymczak,

teccomending that the Board authorize the use of the Board RoomOr

J.114 19 by the Gordon Gray Committee, and that office spacebe_Jga as

ul ed, in addition to Room 2019, for the use of the staff

°It that Committee during the period July 19 to 28, inclusive,

eleept Saturdays and Sundays.



19500706_Minutes.pdf

Documents

federal reserve act

federal reserve banki

federal reserve1digitized

foreign research division

wallichs assignment

dawsons letter

the4deral reserve system

vice president