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A meeting of the Board of Governors of the Federal Reserve Sys-

was held in Washington on Monday, August 10, 1942, at 11:00 a.m.

PRESENT: Mr. Eccles, ChairmanMr. SzymczakMr. McKeeMr. DraperMr. Evans

Mr. Morrill, SecretaryMr. Bethea, Assistant Secretary

Mr. Carpenter, Assistant Secretary

Mr. Clayton, Assistant to the Chairman

The action stated with respect to each of the matters herein-

after referred to was taken by the Board:

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

l'ecleral Reserve System held on August 8, 1942, were approved unanimously.

Memorandum dated August 10, 1942, from Mr. Morrill, stating

thatat the request of Chairman Eccles and with his approval, there

17" being submitted for the approval of the Board the following state-

tent of a realignment of the work of the Legal Division, together with

aChart illustrating the realignment:

"The Board has realigned the work of its Legal

Division. "Mr. Wyatt, in his capacity as General Counsel, will

carry out special assignments delegated to him by theBoard and will be available to the Board and its stafffor advice on matters referred to him for that purpose.

"Mr. Dreibelbis will be the Board's General Attorney,and Messrs. Vest and Wingfield will be Assistant General

Attorneys in the order named. All Assistant Counsel willhe designated Assistant Attorneys.

"The General Attorney will have charge of and be re-

sloonsible for the general legal work of the Board underIt s direction, the administration of the affairs of theLe gal Division and such other assignments as the Board

InaY delegate to him or to the division.

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"Mr. Vest will act in the absence of Mr. Dreibelbisand Mr. tingfield will act in the absence of both Mr.Dreibelbis and Mr. Vest."

The memorandum also submitted the recommendation of Chairman Eccles

that the salary of Mr. Dreibelbis as General Attorney be increased

f1'°111 $10,000 to $12,000 per annum, effective August 10, 1942.

The statement submitted with thememorandum and the recommended increasein Mr. Dreibelbis' salary were approvedunanimously.

Memorandum dated August 8, 1942, from Mr. Leonard, Director of

the Division of Personnel Administration, recommending, at the request

Of Governor Szymczak, that Mrs. Wanda G. McLenighan be appointed as

8ec _retary to Governor Szymczak, with salary at the rate of $2,700 per

41111141: effective as of the date upon which she enters upon the perform-

ance of her duties after having passed satisfactorily the usual physical

eXamination.

Approved unanimously.

Memorandum dated August 5, 1942, from Mr. Goldenweiser, Director

f the Division of Research and Statistics, recommending that Miss Mary

Alice Schreiber be appointed as a clerk in that Division, with salary

at the rate of $1,620 per annum, effective as of the date upon which

enters upon the performance of her duties after having passed sat-

letactorily the usual physical examination.

Approved unanimously.

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Memorandum dated August 6, 1942, from Mr. Morrill, recommend-

ing that Miss Elizabeth A. Webb be appointed as a junior file clerk in

the Rem--cretary's Office on a temporary basis for a period of not to ex-

ceed six months, with salary at the rate of $1,440 per annum, effective

as (n the date upon which she enters upon the performance of her duties

after having passed satisfactorily the usual physical examination, with

the understanding that if her work is satisfactory during the six

Months' period a further recommendation will be submitted asking that

her appointment be made permanent.

Approved unanimously.

Memorandum dated August 1, 1942, from Mr. Paulger, Chief of the

DiVision of Examinations, recommending that the Board approve leave of

absence with pay, on account of illness, for T. Carroll Noell, a Federal

Reserve Examiner, for the period beginning April 17, 1942, and extend-

through September 15, 1942, or such earlier date as he may be able

t° 1'8813-me his duties, with the understanding that such leave will not

be charged against any annual or sick leave which he may accumulate in

the future.

Approved unanimously.

Memorandum dated August 7, 1942, from Mr. Goldenweiser, Director

of the Division of Research and Statistics, submitting the resignation

lall's• Beatrice S. Baldwin as a clerk in that Division, to become ef-

fective as of the close of business on August 16, 1942, and recommend-

that the resignation be accepted as of that date.

The resignation was accepted.

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Letter to Mr. Meyer, Assistant Cashier of the Federal Reserve

8a41c of Chicago, reading as follows:

"As requested in your letter of August 6, 1942, theBoard of Governors approves the payment of a salary to Mr.Lawrence B. Raether, Federal Reserve Agent's Representativeat the Detroit Branch, at the rate of 0,600 per annum, ef-fective July 1, 1942."

Approved unanimously.

Letter to Colonel Sohn C. Mechem, Chief of the Miscellaneous

Branch of the Fiscal Division, War Department, reading as follows:

"It has come to our attention that the amount of legalwork in connection with loans guaranteed under Regulation Vvaries greetly at the different Federal Reserve Banks. MostOf the Reserve Banks apparently rely upon the financing in-

stitutions to see that documents other thAn the guaranteeagreement itself are properly drafted and properly executed,and these documents are reviewed by the Reserve Bank Counsel,if at all, after the guarantee agreement has been executed.

"At at least one of the Federal Reserve Banks, however,Mich documents as the loan agreement, forms of assignment,standby and subordination agreements are ordinarily preparedor reviewed in advance by Counsel for the Federal ReserveBank, with the result that expenses for Counsel's fees onIlegulation V guarantees are at this bank a very considerableItem. For your further information in connection with this

matter, there is enclosed a memorandum setting forth in more

detail the legal procedure prevailing at two of the FederalReserve Banks.

"We will be glad to have the War Department advise usae to its desires in this matter in order that we may informthe Federal Reserve Banks of its views.

"It is suggested that this subject be discussed at the

conference which is to be held on August 12, 1942."

Approved unanimously, together with

similar letters to Mr. Sidney A. Mitchell,

Chief of Finance Section, Office of Procure-

ment and Material, Navy Department, and Mx.

B. B. Griffith, Assistant to Director ofFinance, United States Maritime Commission,

and a letter to Mr. Mark Brown of the WarProduction Board enclosing a copy of the

above letter and its enclosure.

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Thereupon the

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eetlng adjourned.

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