Minutes of actions taken by the Board of Governors of the

Federal Reserve System on Thursday, January 13, 1949.

PRESENT: Mr. McCabe, ChairmanMr. EcclesMr. DraperMr. EvansMr. Clayton

Mr. Carpenter, Secretary

Mr. Sherman, Assistant Secretary

Mr. Morrill, Special Adviser

Mr. Thurston, Assistant to the Board

Minutes of actions taken by the Board of Governors of the

Paderal Reserve System on January 12, 1949, were approved unani-

McAlely.

Memorandum dated January 3, 1949, from Mr. Nelson, Direc-

t°r of the Division of Personnel Administration, recommending, for

the reasons stated in the memorandum, that Mr. Leonard be relieved

48 a member of the Loyalty Board appointed on January 6, 1948, un-

(181' the provisions of Executive Order No. 9835, that Elisha L.

4ien, Jr., be appointed a member of that Board, that Sampson H.

488 be appointed an alternate of the Board, and that John C.

1/811Mann be designated Chairmpn and C. Richard Youngdahl, Vice

CheArman of the Loyalty Board, all appointments to be for one

Yea. from January 13, 1949, or until successors are appointed.

Approved unanimously.

Letter to Mr. Latham, Vice President of the Federal Be-

Bel*va Bank of Boston, reading as follows:

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"In accordance with the request contained inYour letter of January 7, 1949, the Board approvesthe appointment of Philip B. Hamel, at present anassistant examiner, as an examiner for the FederalReserve Bank of Boston. Please advise us of thedate upon which the appointment becomes effective.

"It is noted that Mr. Hamel intends to converthis mortgage indebtedness as soon as feasible froma demand basis to a direct reduction basis. In orderthat our records may be complete, it will be appre-ciated if you will advise us when this has been done."

Approved unanimously.

Letter to the Federal Deposit Insurance Corporation reading

as folio S :

"Pursuant to the provisions of section 12B of theFederal Reserve Act, as amended, the Board of Governorsof the Federal Reserve System hereby certifies that theChildersburg State Bank, Childersburg, Alabama, becamea member of the Federal Reserve System on January 10,1949, and is now a member of the System. The Board ofGovernors of the Federal Reserve System further herebycertifies that, in connection with the admission ofsuch bank to membership in the Federal Reserve System,consideration was given to the following factors enu-merated in subsection (g) of section 12B of the Federal

Reserve Act:1. The financial history and condition of the

bank,2. The adequacy of its capital structure,

3. Its future earnings prospects,4. The general character of its management,

5. The convenience and needs of the community

to be served by the bank, and

6. Whether or not its corporate powers are

consistent with the purposes of section12B of the Federal Reserve Act."

Approved unanimously.

Telegram to the Presidents of all Federal Reserve Banks

l'eading as follows:

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"Please have compiled and mail or wire in timeto reach Board by January 27, if practicable, amountin thousands of dollars of each item and sub-item,1 to 12 inclusive, reported in Schedule A, Loans and

discounts, of December 31, 1948 call reports of na-tional and State member banks, giving separate totalsfor (1) central reserve city banks, (2) reserve city

banks, and (3) country banks. Figures may be esti-mated for any small banks whose reports are missingor incomplete."

Approved unanimously.

Letter to His Excellency, Feridun C. Erkin, Ambassador of

l*keY, reading as follows:

"In an Embassy note of February 20, 1948, trans-mitted to us through the Department of State, permis-sion was requested for Mr. Salahaddin Tukyu, a memberof the staff of the Turkish Ministry of Finance, toreceive training in the Federal Reserve System. Inour letter of April 23 to the Honorable Huseyin RagipBaydur, then Ambassador from Turkey, we reported thatwe had been happy to make the arrangements requested.

"As you know, American policy encourages studiesin the United States, and there are now several hundredstudents from various countries engaged in the studyOf American organizations and techniques. Typically,the expense of maintaining these students is borne in

Part by their own governments and in part by the Govern-

ment of the United States."Mr. Tukyu has demonstrated unusual abilities, and

In order to make the conditions of his sojourn in the

United States as favorable as possible the Board would

be happy to cooperate further to the extent of makinghim a living allowance of $150 a month, this to be in

addition to such payments as he receives from his own

Eovernment and to continue for a period of six monthsfrom January 1, 1949, subject to renewal beyond. ItWill be necessary, we understand from the State Depart-ment, for Mr. Tukyu's passport to be given an appropriatevisa before an allowance can be paid him, but this change

from an official to a '3(2) trainee' visa can be made

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"upon receipt by the Department of a letter from you

acquiescing in our proposal and requesting that the

appropriate change in the visa be made.

"We make our proposal in the conviction that it

will not only contribute to a better general under-

standing between your country and our own but will

also in particular tend to a mutual improvement of

central banking and fiscal relationships between them;

and we trust accordingly that the arrangement pro-

posed will seem to you as desirable as it does to us."

Approved unanimously, with the

understanding that the appropriate

classification in the 1949 non-per-

sonal budget of the Secretary's Office

would be increased in an amount suf-

ficient to provide a living allowance

for Mr. Tuklyu of $150 per month for

six months, beginning January 1, 1949.

Memorandum dated January 10, 1949, from Mr. Bethea, Director

Of the Division of Administrative Services, recommending that the

t°110wing budgets for the Legal Division and the Office of the

solicitor, prepared in accordance with the action at the meeting

c”:1 December 6, 1948, be approved for the year ending December 31,

1949:

"BUDGET

For the Year Ending December 31, 1949.Office of the

Legal Division Solicitor

PERSONAL SERVICES

SalariesRetirement Contributions

Total Personal Services

NOW-PERSONAL SERVICES

$100,563 $26,036011.00

$100,563 $26,036

Traveling Expenses 1,800 6,000Postage and Expressage 10 __

Telephone and Telegraph 1,400 300

Printing and Binding 150 500

Stationery and Supplies 500 100

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Office of theLegal Division Solicitor

"Furniture and Equipment $ 1,750 $ 650

Books and Subscriptions 2,500 50Heat, Light, and PowerRepairs and Alterations(Building and Grounds)

Repairs and Maintenance(Furniture and Equipment) 200 50

Medical Service and SuppliesInsuranceMiscellaneous 17,150 5,000

Total Non-Personal Services $ 25,460 $12,650

GRAND TOTAL $126,023 $38,686"

roved:

The budgets of the Legal Division

and the Office of the Solicitor were ap-proved unanimously, with the understanding

that, as agreed at the meeting on December

31, 1948, when the Board's 1949 budget wasapproved, the Board would again consider

the budget procedure.

3(ctChairman.

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