19390118_230p_Minutes.pdf

System

P. m.

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68

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

held in Washington on Wednesday, January 18, 1939, at 2:30

The

PRESENT: Mr. Eccles, ChatimanMr. Ransom, Vice ChairmanMr. McKeeMr. DavisMr. Draper

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Chairman

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

?c°aral Reserve System held on January 1939, were approved unani-

mously.

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

13oston, reading as follows:

"The salaries fixed by your Board of Directors for theofficers of the bank for the year 1939, as submitted in yourletter of January 5, 1939, are approved by the Board asfollows:

Name

Roy A. YoungWilliam Vi. PaddockViilliam MalettKrickel K. Carrick

Ellis G. HultErnest M. LeavittCarl B. Pitman

Title

PresidentIirst Vice PresidentCashi orSecretary and General

CounselAssi stant Cashi orAssi stant CashierAssistant Cashier

AnnualSalary

$30,00020,00014,000

13,0008,2507,2507,500

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

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1/18/39

"Name

L. Wallace SweetserSohn J. FoggA. C. Kennel, Jr.

Phillips Ketchum

TitleAnnualSalary

Assistant Cashier 7,500Auditor 5,000Assistant Counsel 4,500

Associate Counsel(retainer) 2,400

"It is noted that the salary, 0,500 per annum, fixedby your Board of Directors for Mr. Viiinara D. McRae as Chief

Examiner is within the maximum provided for this Dositionin the personnel classification plan.

"It is also noted that Mr. Thomas M. Steele, Presidentof The First National Bank and Trust Company of New Haven,

Connecticut, has been reappointed as a member of the Federal

Advisory Council representing the First Federal Reserve

District for the year ending December 31, 1939."

Approved unanimously.

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

Richmond, reading as follows:

"The salaries fixed by your Board of Directors for theOfficers of the bank for the year 1939, as submitted inYour, letter of january 15, 1939, are approved by the Boardin those instances where proposed salary payments are atthe rates in effect on December 31, 1938, as follows:

Name

X. S. Walden, SX. G. IrYGeorge h- KeeseeEdward Waller, Zr.W. W. DillardAlbert S. JohnstoneClaude L. Guthrie

Title

First Vice PresidentVice PresidentCashier and SecretaryAssistant CashierAssistant CashierAssistant CashierAssistant Cashier

AnnualSt...21Lat

414,00012,0009,0007,5006,5006,0004,800


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"Name

Roger W. MercerR. S. Brock, Jr.Maxwell G. Wallace

W. R. MilfordJohn R. CupitJohn A. JohnstonDonald Y. Hagner

W. T. ClementsRobert L. CherryLouis D. Brooks

-3-

Title

Assistant CashierAuditorCounsel

Baltimore Branch

Managing DirectorCashierAssistant CashierAssistant Cashier

Charlotte Branch

Managing DirectorCashierAssistant Cashier

AnnualSalary

$ 4,8005,0008,000

12,0005,7005,0003,600

7,5005,0003,600

"The proposed increase in your salary as President ofthe bank from $21,000 to $25,000 will receive the considera-

tion of the Board at an early date. In the meantime the

Board will interpose no objection to the bank's continuingto Pay your salary at the rate of 32l,000 per annum, therate in effect at the end of 1938."

Approved unanimously, together with

a letter to Mr. Lassiter, Chairman of the

Federal Reserve Bank of Richmond, reading

as follows:

"Acknowledgment is made of your letter of January 12

advising that at a meeting of the Board held on January 12,Your Directors fixed the salary of President Leach, effec-tive January 1, 1939, at $25,000 per annum subject to the

approval of the Board of Governors."This proposed increase in the salary of President

Leach will receive the consideration of the Board at an

early date. Before reaching a decision in this matter the

131"rd may wish to ask you to came to Washington for the

Purpose of reviewing thoroughly the salary situation atYour bank and, if so, it will get in touch with you laterfor the purpose of arranging a date that is mutually con-

venient. The Board has advised Mr. Leach that pending


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1/18/39

"consideration of the proposed increase it will offer no

objection to the bank's continuing to pay his salary at therate of 421,000 per annum, which was in effect at the endof 1938."

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

St. Louis, reading as follows:

"The salaries fixed by your board of Directors for the

Officers of the bank for the year 1939 as submitted in your

letter of January 13, 1939 are approved by the Board as

follows:

Name

Wm, McC. MartinF. Guy Hitt0. M. AtteberYC. M. StewartA. H. Hain.S. F. GilmoreF. N. HallG. 0. HollocherH. H. WeigelL. H. CarstarphenL. H. Bailey

P. D. RashC. A. SchachtS. B. Jenks

W. H. GlasgowS. K. BelcherC. E. Martin

A,. is BaileyClifford WoodClay Childers

Title

PresidentFirst Vice PresidentVice PresidentCashier and SecretaryAssistant CashierAssistant CashierAssistant CashierAssistant CashierAssistant Vice PresidentGeneral CounselGeneral Auditor

Louisville Branch


Memphis Branch

Managing DirectorCash/ erAssistant Cashier

Little Rock Branch



AnnualSalary

20, 00018,00015,00010,0007,5007,0006,0004,5003,0005,0006,000

10,0007,0004,000

10,0005,3004,800

9,0004,5003,000"


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Letter to Mr. Merritt, Chairman of the Yederal Reserve Bank of

Dallas, reading as follows:

"The salaries fixed by yolir Board of Directors for the

Officers of the bank for the year 1939 as sabmitted in your

letter of January 12, 1939 are approved by the Board as

follows:

Name

B. A. McKinneyR. R. GilbertR. B. Coleman

W. J. z4vans

W. 0. FordE. B. AustinL. G. PondromR. 0. IebbW. P. Clarice

Locke, Locke, Stroud& Randolph

T. L. HermannAllen Sayles

W. D. GentryIL R. DeMoss

M. Crump

Eagle

Annual

Title Salary

President $,,30,000-First Vice President 15,000

Vice President andCashier 11,000

Vice President andSecretary of Board ofDirectors 9,000

Assistant Vice President 7,500

Assistant Cashier 6,600



General Auditor 7,000

Counsel (Retainer) 9,000

El Paso Branch

Managing Director 6,000

Cashier 4,200

Houston Branch


Cashier 4,500

San Antonio Branch


Cashier 4,500

"It is noted that Mr. R. E. Harding, President of the1.ort 1:iorth National Bank, Fort Worth, Texas, has been re-

elected as a member of the Federal Advisory Council repro-


"senting the Eleventh Federal Peserve District for theyear ending December 51, 1939."


Letter to Mr. Hale, Secretary of the Iederal Reserve Bank of

San Francisco, reading as follows:

"The salaries fixed by your Board of Directors for theOfficers of the bank for the year 1939 as submitted withYour letter of January 11, 1939, are approved by the Boardas follows:

Annual

Name Title Salary.......-----

lig. A. pay President ;;25,000Ira Clerk First Vice President 13,000W. M. Hale Vice President and

Secretary 14,000

Cs E. Earhart Cashier 9,000C. D. Phillips Assistant Cashier 6,300H. N. Man Fels Assistant Cashier 6,500E. C. Mailliard Assistant Cashier 5,200X. M. Osmer Assistant Cashier 5,500H. F. Slade Assistant Cashier 5,200R. T. Hardy Assistant Cashier 5,200F. H. Holman General Auditor 7,500Vy. I. Volberg Auditor 4,500

A. C. Agnew Counsel (Retainer) 10,000

W. N. AmbroseH. M. CraftM. McRitchieL. C. Meyer

R. B. WestS. A. MacEachronj. P. Blanchard

Los Angeles Branch


Assistant Manager 6,600

Assistant Manager 5,500


Portland Branch

Managing DirectorAssistant ManagerAssistant Cashier

7,5005,3004,500

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"Name

W. L. PartnerX. M. LeisnerW. M. Scott

C. R. ShawD. L. DavisF. C. BoldB. A. Russell

Title

Salt Lake City Branch

Managing DirectorAssistant ManagerAssistant Cashier

Seattle Branch

Managing DirectorAssistant ManagerAssi St ant ManagerAssistant Manager

AnnualSalary

.4‘, 7,5005,4003,900

7,5007,5005,5004.800"

Approved unani ously.

Letter to 14r. Schaller President of the Federal Reserve Bank

Of Chicago, reading as follows:

"Referring to your letter of January 12, 1939, theBoard approves the payment of a salary to NI/.. L. Bernard

Raether, Federal Reserve Agent's Representative at the

Detroit Branch, at the rate of %12,800 per annum, effective

January 1, 1939."


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

or Kansas City, reading as follows:

"Acknowledgment is made of your letter of January13 advising that your Board of Directors at a meetingheld on January 5, 1939 approved a report of the SalaryCommittee recommending that, subject to the approval ofthe Board of Governors, the salary of Assistant Cashier

Woolley be increased from ;',5,000 to $6,400 per annum

effective January 1, 1939."The Board, as indicated in its letter 5-138 of

December 28, 1938, will invite the President of each


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"Federal Reserve bank to came to Washington at a conven-ient time for the purpose of reviewing thoroughly thesalary situation at his bank and the proposed increasein Mr. Woolley's salary will be considered at that time."


Memorandum dated January 17, 1939, from Mr. Snead, Chief of

the Division of Bank Operations, submitting a letter dated January

12 from Mr. Day, President of the Federal Reserve Bank of San Fran-

cisco, which requested approval by the Board of a change in the

Personnel classification plan of the Los Angeles branch of the bank

to provide for an increase in the retainer fee for the physician at

the branch from k1,800 to 4;2,400 per annum. The memorandum stated

that the proposed change had been reviewed and recommended that it

be approved.


Letter to bin, Clerk, First Vice President of the Federal Re-

Serve Bank of San Francisco, reading as follows:

"This refers to your letter of January 10, 1939,requesting confirmation of the understanding of one ofYour directors that ownership of stock in a bank doesnot disqualify him as a class B director of the FederalReserve bank.

"We have examined the statement on page 66 of theBoard's First Annual Report that 'Class B directors cannot be stockholders, officers, or directors in any bank',and have reached the conclusion that this statement wasan error. A brief examination of the legislative historyof section 4 of the Federal Reserve Act shows that thequestion whether a stockholder of a bank should be per-mitted to serve as a class B director of a Federal Reserve


1/18/39 -9-

"bank was considered in the House and a proposed amendmentto render stockholders of banks ineligible was defeated.

(Cong. Rec., vol. 50, part 5, page 4989, September 15,

1913.) In the Senate the bill H.R. 7837 (which later be-

Came the Federal Reserve Act) at one time contained a

Provision that 'no director of C11.3.ss .e or of class C shallbe an officer, director, or stockholder of a member bank',but this provision was eliminated before the bill was en-

acted into law."In view of the fact that the fourteenth paragraph

of section 4 of the Federal Reserve Act contains no pro-

hibition against a class B director's being a stockholderof a bank, whereas the fifteenth paragraph of the section

Provides that no director of class C shall be a stock-holder of any bank, it seems clear that a person is not

rendered ineligible as a class .6 director by virtue ofthe fact that he is a stockholder of a bank."


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

Boston, reading as follows:

"Referring to your letter of January 5, the Board

approves the reappointment by the board of directors ofthe Iederal Reserve Bank of Boston of Messrs. Winthrop

I', Carter, Albert M. Creighton, Carl 2. Lennett, 2au1A. Draper and Edward M. Graham as members of the In-

dustrial Advisory Committee for the Iirst Federal Re-serve District, to serve for terms of one year each,

beginning on March 1, 1939."


Letter to Kr. Drinnen, First Vice President of the Federal

Ileserve Bank of Philadelphia, reading as follows:

"In view of the circumstances outlined in yourletter of January 13, the Board will interpose no objec-

tion to your waiving the penalty of 0.91 incurred by


1/18/39 -10--

"the First National Bank and Trust Company of Paulsboro,New Jersey, on reserve deficiencies during the first halfof Decanber 1938."


Thereupon the meeting adjourned.


19390118_230p_Minutes.pdf

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