19441214_minutes.pdf

A meeting of the Board of Governors of the Federal Reserve

SYstern- was held in Washington on Thursday, December 14, 1944, at

10130 a.m.

Theattel,

referred to was taken by the Board:

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

Nierel Reserve System held on December 13, 1944, were approved unani—kolisiy.

PRESENT: Mr. Eccles, ChairmanMr. Ransom, Vice ChairmanMr. McKeeMr. DraperMr. Evans

Mr. Morrill, SecretaryMr. Carpenter, Assistant Secretary

Mr. Clayton, Assistant to the Chairman

I aiitl;

Iseetor,becau Of the Division of Research and Statistics, recommending that,

1114: °I' illness, Miss Ruth Brooks, an administrative clerk in that

action stated with respect to each of the matters herein-

87" be granted leave from November 23, 1944, to January 2, 1945,C11

41411a:Ire, with the understanding that she will utilize her accumulated

beceili leave through November 29 and sick leave from November 30 throughb

er 3, 1944, and that the remainder of her leave will be taken as

without pay. The memorandum recommended further that the Boardcorkla

Ile to make its• contributions to the retirement system on Missooka

behalf during her leave without pay provided she continues

Igaire

Memorandum dated December 11, 1944, from Mr. Goldenweiser, Di-

41 contributions for the same period.

Approved unanimously.

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

1v14/44

q theto allow

a per diem of $7 for the period January 1, 1945, to December

3111o)'45, inclusive, for Board examiners while they are in a travel

atatue .ln connection with the examination of Federal Reserve Banks,

With the

understanding that should conditions become more nearly nor-

blqanY time during the period and apparently justify a return to

a.Pe t6'1,-em the whole subject would be reviewed and a report submitted

to R11- "oard,

-2—

Memorandum dated December 8, 1944, from Mr. Paulger, Director

Division of Examinations, recommending that the Board continue


't the 0 81on of Administrative Services, recommending that the fol-

'41g increases in basic annual salaries of employees in that Divisionbe al)pr

Ifemorandum dated December 8, 1944, from Mr. Bethea, Director

°ved, effective December 16, 1944:

?N.Leo Stioilff

rlard „, er"Orden

Designation

GuardGuard

Salary- increase From To

$1,620 $1,6801,560 1,620


Memorandum dated December 9, 1944, from Mr. Bethea, Directororthe bi

-vleion of Administrative Services, recommending that, effective

the date upon which he enters upon the performance of his duties

tJett

Ving passed satisfactorily the usual physical examination,

PI'ice be appointed as a laborer in that Division on a tem-

-ls for an indefinite period with basic salary at the rate


is

12/14/44—3 —

Or41'2°° Per annum and with the understanding that he will becomea

raelther of the Board's retirement system.


Memorandum dated December 13, 1944, from Mr. Bethea, Director

the .nlvision of Administrative Services, recommending that, effec-

tivea8 of the date upon which she enters upon the performance of her

kitiesafter having passed satisfactorily the usual physical examina-

t44, .Illee Leone Klaprat be appointed as a telegraph operator in that

on a temporary basis for an indefinite period with basicaala

1.7 at the rate of $1,860 per annum and with the understanding thatvitt-4- become a member of the Board's retirement system.

't th4tat

?b


Memorandum dated December 11, 1944,

e 01-111sion of Administrative Services,

ed in the memorandum, that Mrs. Francesa.Phe

in that Division, be granted leave

from Mr. Bethea, Director

recommending, for the reasons

B. Florence, a clerk-sten-

from December 26, 1944, to

111̀ 117 28, 1945, with the understanding that she will utilize her ac-

atedand accrued annual leave to .10:30 a.m. on January 11, 1945,

that t

The he remainder of her leave will be taken as leave without pay.

kerecommended further that the Board authorize the con-

t, °n of Mrs. Florence's death benefits under the retirement system'1‘the

Period of her leave of absence without pay with the understand-

t}he would make appropriate contributions therefor.



12114/44 —4—

Memorandum dated December 13, 1944, from Mr. Bethea, Director

qthe n.ulvision of Administrative Services, recommending, for the

8041.8 stated in the memorandum, that the Board extend to December

31' 1944, inclusive,

t0 rbeimburse the Western

Itt88MIlriel Pace, at theto the Board, s

the authorization granted on October 17, 1944,

Union Telegraph Company for the

rate of $160 per month, who has

services of

been assigned

telegraph office in the absence of regular operators.


Letter to Mr. McCreedy, Assistant Vice President and Secretary

(It the Federal Reserve Bank of Philadelphia, reading as follows:

"The Board of Governors approves1411"7 to Mr. William D. Cobb, Assistant

945 to Bank of Philadelphia, for the

4-Y45 to April 30, 1945, inclusive, atPer annum, which is the rate fixed byrectors as reported in your letter of

Letter to Mr.

C4Ireiand, reading as

the payment of sal—Cashier, Federalperiod January 1,the rate of $6,000your Board of Di—December 7, 1944."


Gidney, President of the Federal

follows:

Reserve Bank of

in "This is in reply to your letter of December 2 advis—

_,..g that, upon recommendation of the Boards of Directors

uolf !Ile Cincinnati and Pittsburgh Branches, the directorse Federal Reserve Bank of Cleveland have adopted a

0i8olution increasing, subject to the approval of the Boardtr Governors, the number of directors at the Cincinnati

anch and the Pittsburgh Branch from five to seven.

toe. In view of the action taken by your director, thein ru -1 interpose interpose no objection to the proposed increase

aa the number of directors at the two Branches. It is

t1,8L4!led that the amendments to the bylaws to provide for'e Increase will become effective January 1, 1945.


12/14/44 —5—

s, "It is noted that, in order to provide for orderly

1,6a ggering of terms, one of the directors at each of theluranches appointed by the Bank for terms beginning January

! 1945 will be appointed for a 2—year term and the other;all be appointed for a 3—year term. The Board will fol—tow a similar procedure in making its appointments to theboards of the two Branches."


Letter to Mr. Rouse, Vice President of the Federal Reserve Bank

(ItliewYork, reading as follows:

1,144. s refers to your letter dated November 25, 1944,i;614 which was enclosed a letter dated November 15, 1944,e°111 J. P. Morgan & Co. Incorporated, applying for permis—:ft under the provisions of section 25 of the Federal Re—

Act, to invest $850,000 in the capital stock of Morganla le. Incorporated, a corporation organized under thec w8 of the State of New York, which application was ac—othmPanied by your favorable recommendation. It is noted

it4t the Banking Board of the State of New York has granted

8 approval in the matter.is "The Board of Governors of the Federal Reserve System

t4 Prepared to grant the requested permission upon condi-441'11 that Morgan & Cie. Incorporated shall deliver to you

ninety days from the date of this letter two copiesc)f t0ffic he enclosed agreement duly

executed by the appropriate

ers of Morgan & Cie. Incorporated and that J. P.

Co. Incorporated agree to consummate the proposedd investment in the capital stock of Morgan & Cie.

an!°rporated not later than July 1, 1945. Upon receipt of

a 1"11Y executed copy of such agreement, the Board will write1fl etter directly to J. P. Morgan & Co. Incorporated grant—

letterrested permission and will forward a copy of such

to you.sir,,"The agreement provides that Morgan & Cie. Incorporateda.:4-1- not establish any branches or agencies except with theVeroval of the Board. The letter of application from J. P.

braa,112 & Co. Incorporated shows that the establishment of a

all-e—en. in Paris, France, of Morgan & Cie. Incorporated to

illteeed to the business of the firm of Morgan & Cie. is an

egral part of the plan for the operation of Morgan & Cie.


I 8 ;

12/14/44

'i.corporated. In the circumstances, the Board will alsoa letter directly to Morgan & Cie. Incorporated grant-

ng Permission for it to establish a branch at Paris, France,11).rovided such branch is established not later than July 1,1945, and the Board advised in writing by Morgan & Cie.ncorporated that such branch has been established andOpened for business.u "In the Board's letter of April 23, 1942, to J. P.

t°rgaa & Co. Incorporated, advising the institution of

X''

approval of its application for membership, it was

b 'ted that the provisions of condition of membership num-one are applicable to the operations of subsidiary

,Y111ates of a member bank as well as to the operationsO the bank itself. Since Morgan & Cie. Incorporated was't that time dormant, the proposal for it to become active

International or foreign banking obviously comes withinjus Purview of the condition. Therefore, you may advise

si P- Morgan & Co. Incorporated that the grant of permis-i8Q to invest in the stock of Morgan & Cie. Incorporatedco to be interpreted as carrying with it permission underndition of membership numbered one for Morgan & Cie. In-

a?rPorated to engage in international or foreign bankingcontemplated by the provisions of section 25 of the

cleral Reserve Act, subject to any agreements enteredto with the Board thereunder.a, "In connection with this matter, however, it will be

„greoiated if you will call to the attention of the proper

Veresentatives of J. P. Morgan & Co. Incorporated thatofrlan & Cie. Incorporated will continue to be an affiliate

P. Morgan & Co. Incorporated, and the member bankbe expected to comply with the provisions of section

L(12f the Federal Reserve Act with regard to the submission,

Publication of reports of this and any other affiliatesmo addition to any reports which may be called for from

tjgar). & Cie. Incorporated under the provisions of subsec-

sm' (cl) of Paragraph 6 of the Agreement.st , "Special Regulation No. 15 of the Banking Board of the

gr:L? of New York by subsection (3) of section (a) of Para-Ph 3., Investment of Funds, provides that Morgan & Cie.,

a:°rporated may invest in so much of the capital stock of

g other corporation as may be specifically authorized by

pl °111tion of the Banking Board of the State of New York.tease inform the representatives of Morgan & Cie. In-

r*Porated that when application is made to the Banking

-6-


1_872

12/14/44—7—

"Board for permission to invest in the capital stock of

puY other corporation, a copy of such application is to be„rnished simultaneously to the Federal Reserve Bank ofi:Iew York for transmission to the Board of Governors forlts information.b "The Board has considered your suggestion that there

e incorporated in the agreement a provision that the charac-ter and scope of the business of Morgan & Cie. Incorporatedt,"a11 not be broadened or changed without first obtaining

ir approval of the Board. In this connection, however,has been the Board's long standing practice, in order

to permit American foreign banking corporations to compete;rfectively in foreign countries, to give latitude to the

r?veloPment of their business abroad and not to prescribelgid restrictions or in too much detail but to prescribeo

nlY general rules for their guidance. Also the right torestrict the operations of Morgan & Cie. Incorporated iss

Pecifically reserved to the Board by the provisions ofp,,e'l'agraph 8 of the agreement so that any restrictions`c'eemed necessary, should unsatisfactory tendencies develop,a

Exn be imposed to meet the need for corrective action.

areePt for Bankers Company of New York whose operationsa4.1imited solely to holding stock in a British fiduciary

ha'lliate, none of the agreements presently in operationchs a provision requiring the Board's permission for a

poange in the character and scope of the subscribing cor-

beration's business and no apparent need therefor hasthen developed as a result of their operations. For

a e" reasons the Board has not included in the agreementProvision of the type suggested.

e, "Please have two copies of the enclosed agreement

a'eouted on behalf of Morgan & Cie. Incorporated by its

elD,PrcPriate officers and forward the original executed:!PY thereof to the Board of Governors. The other ex-

Copy of the agreement should be retained for therecords of the Reserve Bank. When the agreement has been

itecuted and the Board's formal permission has been granted,

a bill be appreciated if you will supply a copy of the

u:Leement to the Superintendent of Banks of the State of" York for his information and files."



873

12/14/44—8—

Letter to the Presidents of all the Federal Reserve Banksread.;

as follows:

a "For your information there is enclosed a copy ofwlre received from the Federal Reserve Bank of San

rrancisco, dated December 6, 1944, regarding amendinggil.arantee agreements to provide for lower guarantee feeswlthout adopting the 1944 V guarantee form.c "There is also enclosed a copy of a memorandum re—?lved from the War Department, dated December 11, 1944,l'grled by Colonel Paul Cleveland, Chief, Advance Payment

Lognd an Branch, in reply thereto."


Thereupon the meeting adjourned.

Secretary.

Chairman.


19441214_minutes.pdf

Documents

board of governors

federal reserve bank

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