The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
UNITED STATES EXECUTIVE President GOVERMENT OFFICERS Franklin D. Roosevelt (re-elected Nov, 1940, inaugurated Jan. 20, 1941) Secretary of Treasury - Henry Morgenthau, Jr. (appointed Jan. 1, 1931 served until July 23, 193) Comptroller of Currency - Secretary of State Preston Delano (date of appointment Oct. 21, 1938) - Cordell Hull Henry L. Stimson - Frank Knox Harold L. Ickes Claude R. Wickard Jesse Jones Frances Perkins Frank C. Walker Francis Biddle Secretary of War Secretary of Navy Secretary of Interior Secretary of Agriculture Secretary of Commerce Secretary of Labor Postmaster General Attorney General - - 192 U. S. G January I VE RNME NT SENATE Banking and Currency Committee 77th Congress WAGNER, Robert F. GLASS, Carter BARKLEY, "Alben W. BANKHEAD,2nd, John H. RADCLIFFE, Francis L. BRDWN, Prentiss M. HUGHES, James H. HERRING, Clyde L. SMATHERS, William H. CLARK, D. Worth DOWNEY, Sheridan MURDOCK, Abe SPENCER, Lloyd New York Virginia Kentucky Alabama Maryland Mihigan Delaware Iowa New Jersey Idaho California Utah Arkansas TOBEY, Charles W. DANAHER, John A. TAFT, Robert A. THOMAS, John BALL, Joseph H. BUTLER, Hugh A. New Hampshire Connecticut Ohio Idaho Minnesota Nebraska :1942 January U. S. -"z GOV ERNMENT HOUSE OF REPRESENTATIVES Banking and Currency Committee Congress 77th REpblices WOLCOTT, Jesse P. GIFFORD, Charles L. CRAWFORD, Fred L. .._ ra tS' STEAGALL, Henry B. WILLIAMS,Clyde SPENCE, Brent FORD, Thomas F. BROWN, Paul PATMAN, Wright BARRY, William B. SACKS, Leon GORE, Albert MILLS, Wilbur D. MONRONEY, A. S. Mike LYNCH, Walter A. KOPPLEMANN, Herman P. BOGGS, Hale http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis --- Alabama Missouri Kentucky California Georgia Texas New York Pennsylvania Tennessee Arkansas Oklahoma New York GAMBLE, Ralph A. KEAN, Robert W. SUMNER, Jessie SMITH, Frederic C. KINKEL, John C. ROLPH, Thomas DEWEY, Charles S. Connecticut Louisiana Independent HULL, Merlin Wisconsin Michigan Massachusetts Michigan New York New Jersey Illinois Ohio Pennsylvania California Illinois :i::"~ - --;. -r---~_ FEDERAL RESEWE SSTEM BOARD OF GVERNORS Marriner S. Eccles, Chairman M. S. Szyacsak John K. MeKee Ronald Ransom, Vice Chairman Ernest G. Draper R. M. Evans (eff. Mar. 1) Lawrence latyon, Assistant to the Chairan Elliott Thurston, Special Assistant to the Chairman Secretary's Office nilvision of Examinations Chester Morrill, Secretary Leo H Paulger, Chief Liston P. Bethea, Ast. Sec. R. F. Leonard, Asst. Chief S. R. Carpenter, Asst. Sec. C. F, Cagle, Asst. Chief Fred A. Nelson, Asst. Sec. Di vision of Bank Operations Legal Office dwari L. wad, Chief Walter Wyatt, General Counsel J. R. Van Fessen, Asst. Chief J. P. Dreibelbis, Asst. Gen.Counsel* J. E. Horbett, Asst. Chief George B. Vest, Asst. Gen. Counsel rision of Seourity Loans -B. Magruder Wingfield, Asst. Gen. Counsel Carl E. Parry, Chief Division of Research and Statistics E. A. Goldenweiser, Directer F sal Agent Woodlief Thomas, Asst. Director , E3. Foulk, Fiscal Agent Walter R. Stark, Asst. Direetor, (ff. Feb. 16 *On August 10 the titles of Asst. Gen Counsels were changed to Asst. General Attermies. Mr. Dreibelbis was made General Attorney on August 10. Josephine E. Lally, Deputy Fiscal Agt. FE E A RE VE SS_ FEDERAL I SERVE SYSTEM FEDERAL ADVI:SORY COUNCIL 1942 District No. 1 (Beato) Chas. District No. 2 (New York) George L.. Harrison, District No. 3 (Philadelphia) District No. 4 (Cleveland) E. Spencer, Jr. Vice Pres. William F. Kurtz B. G. Huntington District No. 5 (Richmond) Robert V. Fleming District No. 6 (Atlanta) H. Lane Young District No. 7 (Chicago) Edward E. Brown, President District No. 8 (St. Louis) S. E. Ragland District No. 9 (Minneapolis) Lyman E. Vakefield District No. 10S(Kansas City) V. Dale Clark District No. 11 (Dallas) Nathan Adams District No. 12 (San Francisco) George M. Wallace Walter Lichtenstein, Secretary FED RAL RESERVE SYSTEM FEDERAL OPEN MARKET COMMITTEE Marriner S. Eccles, Chairman Allan Sproul, Vice Chairman C. S. Young Ernest G. Draper Alfred H. Williams R. R. Gilbert John K. McKee H. G. Leedy Ronald Ransom M. S. Szymczak Chester Morrill, Secretary S.R.Carpenter, Assistant Secretary Walter Wyatt, General Counsel J. P. Dreibelbis, Assistant General Counsel E. A.Goldenweiser, Economist John H. Williams, Associate Economist Robert G. Rouse, Manager of System Open Market Account Federal Reserve Bank of Boston (Dist, 1) OFFICES President R. A. Young (rs,. -areh 31) William W. Paddook (succeeded Young) (April 1) W. W. Paddock (until April) William Willett First Vice President Vice Presidents William Willett (until he became First V.P. in April) Krickel K. Carrick Ellis 0. Hult Carl B.P±tman Chairan and Federal flsserve Agent Deputy Chairma Albert M. Creighton - Henry S. Dennison 1942 Federal Reserve Bank of Boston (Dist. 1) DIRECTORS Class A Term Expires Dec. 31 FORBES, Allan (Boston, Mass.) HOLMES, Allen W. (Middletown, Conn.) DODGE, Leon A. (Damariscotta, Me.) 19b2 19L3 (fef, Oct. 13) 1944 (re-elected) Class B FROST, Edward J. (Boston, Mass.) FLANDERS, Ralph E. (Springfield, Vt.) ALLEN, Philip R. (E.Walpole, Mass.) 1942 193 (re-elected) 1944 (re-elected) Class C DENNISON, Henry S. (Framingham, Mass.) Deputy Chairman HARRIMAN, Henry I. (Boston, Mass.) CREIGHTON, Albert M. (Boston, Mass.) Ohairman and FR Agent 1942 1943 19h (appointed) ~jj Federal Reserve Bank of New York (Dist. 2) OFFICERS President - - First Vice President Vice Leslie R. Rounds Presidents Ray M. Gidney Walter S. Logan Robert G. Rouse _ _ Allan Sproul L. Werner Knoke James M. Rice John H. Williams Chairman and Federal Reserve Agent Beardsley Ruml Deputy Chairman Edmund E. Day 1 4 Federal Reserve 1942 Bank of NEW YORK (Dist. 2) DIRECTORS Term Began Dec. 31 Term Ended 1/1/40 1942 1/1/41 1943 (Jersey City) 1/1/42 1944 SSTEVENS, Robert T. (Plainfield) 1/1/40 1942 (Resigned Jan. 1942) 1/1/41 1943 1/1/42 1944 3/6/42 1942 1/1/40 1942 (Deputy Chairman) 6/4/41 1943 (resigned 8/13/42) 1/1/42 1944 (reappointed)(Chairman) CLASS A DORRANCE, eiLLH. (Camden, N. Y.) FRASER, Leon (New York) FIELD, William J. CLASS B BROWN, Donaldson (New York) WILLIAMSON, Frederick E. (New York) SCONWAY, Carle C. (New York) (elected Mar. 6) CLASS C DAY, Edmund E. (Ithaca) PAUL, Randolph E. http://fraser.stlouisfed.org/ RUML, Beardsley Federal Reserve Bank of St. Louis L (New York) (New York) http://fraser.stlouisfed.org/ iFederal Reserve Bank of St. Louis Federal Reserve Bank of Philadelphia (Dist. 3) OFFICERS President - - First Vice President -Frank Alfred H.Williams J.Drinnen Vice Presidents C. A. Mc Ilhenny Ernest C. Hill W. J.Davis C.A. Sienkiewiez Chairman and Federal Reserve Agent Thomas B. Mc Cabe Deputy Chairman Warren F.Whittier 1942 Federal Reserve Bank of Philadelphia (Dist. 3) DIRECTORS Class A REILY, George W. (Harrisburg, Pa.) HENNING, John B. (Tunkhannock, Pa.) LOEB, Howard A. (Philadelphia, Pa.) Term Expires Dec. 31 1942 1943 1944 (elected) Class B KERLIN, Ward D. (Camden, N.J.) STOUT, C. F. C. (Camden, N.J.) CANNON, Harry L. (Bridgeville, Delaware) 1942 1943 19L4 (re-elected) Class C McCABE, Thomas B. (Chester, Pa.) Chairman and FR Agent WHITTIER, Warren F. (Douglassville, Pa.) Deputy Chairman RIEFLER, Winfield W. (Princeton, N.J.) 1942 1943 1944 (re-appointed) (Bae. 9A1) d Federal Reserve Bank of Cleveland (Dist. 4) OFFICERS M. J. Fleming President First Vice President F. J. Zurlinden Vice Presidents K. H. MacKenzie R. B. Hays W. H. Fletcher C. V. Arnold V. F. Taylor Chairman and Federal Reserve Agent G. C. Brainard Deputy Chairman R. E. Klages I _ 19h2 Federal Reserve Bank of Cleveland (Dist. I ) DIRECTORS Class A CONNER, B. R. (Ada, Ohio) McDOWELL, H. B. (Sharon, Pa.) BROOKS, F. F. (Pittsburgh, Pa.) Term Expires Dec. 31 1942 1943 1944 (re-elected) Class B MILLSOP, T. E. (Weirton, W. Va.) WRIGHT, R. P. (Erie, Pa.) CRABBS, G. D. (Lockland, Ohio) 1942 1943 1944 (re-elected) Class C KLAGES, R.E. (Columbus, Ohio) Deputy Chairman BRAINARD, G, C. \Youngstown, Ohio) Chairman and FR Agent BAKER, A.Z. (Cleveland, Ohio) 1942 1943 1944 (appointed) (Aug. 8) Federal Reserve Bank of Richmond (Dist. $) OFFICERS - President First Vice President - - Hugh Leach J. S. Walden, Jr. Vice Presidents J. G. Fry R. W. Mercer George H. Keessee Chairman and Federal Reserve Agent Robert Lassiter Deputy Chairman W. G. Wysor 1942 Federal Reserve Bank of Richmond (Dist. 5) DIRECTORS Term Expires Dec. 31 Class A RIEMAN, Chas. E. (Baltimore, Maryland) BRASWELL, James C. (Rocky Mount, N. Carolina) SYDENSTRICKER, John A. (Marlinton, iest Va.) * 1942 1943 1944 (elected) Class B REED, Chas. C. (Richmond, Va.) HANNA, John H. (Washington, D. C. ) MALLOY, Edwin (Cheraw, S. Carolina) 1942 1943 1944 (r7elected) Class C WYSOR, W. G. (Richmond, Va.) Deputy Chairman LASSITER, Robert (Charlotte, N.Carolina) Chairman &FR Agent McCORMICK, Charles P. (Baltimore, Maryland) 1942 1943 1944 (re-appointed) 1 1 Federal Reserve Bank of Atlanta (Dist.6) OFFICERS President - First Vice President Vice - W. S. McLarin, Jr. Malcolm H. Bryan Presidents L. M. Clark H. F. Conniff Chairman and Federal Reserve Agent Frank H. Deputy Chairman J. Neely F. Porter Federal Reserve Bank of Atlanta (Dist. 6) DIRECTORS - Class A GLEN, Thomas K. (Atlanta, Georgia) COOK, W.D. (Meridan, Miss.) WHITE, George J. (Mount, Dora, Florida) Term Expires Dec. 31 1942 1943 19t1 (re-elected) Class B McCRARY, J. A. (Atlanta, Georgia) HALL, Fitzgerald (Nashville, Tenn.) GEORGE, Ernest T. (New Orleans, Louisiana) 1942 1943 1944 (re-elected) Class C PORTER, J. F. (Columbia, Tenn.) Deputy Chairman HARRIS, Rufus C. (New Orleans, La.) NEELY, Frank H. (Atlanta, Georgia) Chairman and FR Agent 1942 1943 1944 (re-appointed) Federal Reserve Bank of Chicago (Dist. 7) f OFFICEI~ Prvidefnt First Vice President Vice Presidents - C. S. YoTun - H. P. Preston - J. H. Dillard C. B. Dun A. T. Sihler Allan M. Blak A. J. Mulroney Chairman and Federal Reserve Agent F. J. Lewis (ree. Jaly 1) Simeon E. Leland (ff. Deputy Chairman Oct. 13) S Simeon E. Leland (fras Jan. to Oct.) W. W. Wayack (October 13) Federal Reserve Bank of Chicago (Dist. 7) DIRECTORS IDe. Class A CUMMIGS, Walter J. (Chicago, Illineia) ESTBERG, E. R. (Waukesha, Wisconkih) WILLIAMS, Frank D, Torn Expires (Iowa City, Iowa) 31 1912 1943 1944 (re-elected) Class B BBB, Max W. (Milwaukee, Wisconsin) WAN DUSEN, Charles B. (Detroit, Mih.) *AVERI, Clarence W. (Detroit, Michigan) NOTES, Nicholas. H. (Indianapolis, Indiana) 1943 (res. Sept. 1) 1913 (elected) 19i4(re-elected) Class C YMACK, W. W. (Des Moines, Iow&) IOFFM&N, Paul G. (South Bend, Indiana) *LEWIS, F. J. (Chicago, Ill.) Chairman and FR Agent LELAND, Siaeon E. (Chicago, Ill.) 1942 1913 (elected to succeed Lewis) 1913 (res. Jly 1) 194k (re-appointed) Federal Reserve Bank of St. Louis (Dist, 8) OFFICERS First President Chester C. Vice President F. Davis Guy Hitt Vice Presidents Olin M. Atteberry C. M.Stewart Chairman and Federal Reserve Agent William T. Nardin Deputy Agent Oscar G. Johnston Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Term Expires Class A NAHM, Max B. (Bowling Green, Kentucky) CORLIS, G.H. (Anna, Illinois) MAESTRE, Sideny (St. Louis, Missouri) 1942 1943 1944 (re-elected) Class B HARRIS, J. W. (St. Louis, Mo.) TUCKER, H. H. (Little Rock, Arkansas) STANLEY, John E. (Evansville, Indiana 1942 19t3 1944 (re-elected) Class C NARDIN,William T. (St.Louis, Mo.) Chairman and FR Agent JOHNSTON, Oscar G. (Scott, Miss.) Deputy Chairman BROOKS, Douglas W. (Memphis, Tenn.) 1942 1943 1944 (re-appointed) I S1942 Federal Reserve Bank of Minneapolis (Dist. 9) OFFICERS President - First Vice President - J. N. Peyton 0. S. Powell E. W. Swanson A. R. Upgren H. I. Ziemer A. W. Mills Chairman and Federal Reserve Agent Walter C. Coffey Deputy Chairman Roger B. Shepard Federal Reserve Bank of Minneapolis (Dist. 9) DIRECTORS Class A Term Expires Dec. 31 McCARTNEY, F. D. (Oakes, North Dakota FORD, Shirley S. (Minneapolis, Minn.) McKNIGHT, J. R. (Pierre, South Dakota) 1942 1943 1944 (re-elected) Class B FUNK, Albert P. (La Crosse, Wis.) CLARK, Homer P. (St. Paul, Minnesota) O'CONNELL, J. E. (Helena, Montana) 1942 1943 1944 (re-elected) Class C COFFEY, Walter C. (Minneapolis, Minn.) Chairman and FR Agent COCHRAN, W. D. (Iron Mountain, Michigan) SHEPARD, Roger B. (St. Paul,Minnesota) Deputy Chairman 1942 1943 1944 (re-appointed) IC- - -- - - - II- -- -- --~ 1942 Federal Reserve Bank of Kansas City (Dit. OFFICERS - President First Vice President -Henry H. G. Leedy 0. Koppang Vice Presidents J. W. Helm D. W. Voolley Chairman and Federal Reserve Agent R. B. Caldwell Deputy Chairman Robert L. Mehornay Federal Reserve Bank of Kansas City (Dist. 10) DIRECTORS Class A DINES, T. A. (Denver, Colerado) LIMBOCKER, M. A. (apreia, Kansas) BUNTEN, W. L. (Goodland, Kansas) Tera Expires Dec. 31 19h2 1943 1944 (elected) Class B BSFORD, Willard (Oaaha, Nebraska) BEaaRDNIN, J. m. (Dawon, N.M.) PHILLIPS, L. E. (Bartleville, Oklahoma) 1942 193 194 (re-elected) Class C ROBERTS, Clarenee, (Oklahoma City Oklahoaa) CALDwUL, R. B. (Kansas City, Mo. Chairan and IR Agent MEHORNAY, Robert L. (Kansas City, Mo.) Deputy Chairaa 1912 (died Dec. 1943 (appo nted) 4) 1942 Federal Reserve Bank of Dallas (Dist* 11) OFFICERS President - - First Vice President R. R. Gilbert - E. B. Stroud Vice Presidents R. B. Coleman W. J. Evans W. 0. Ford Chairman and Federal Reserve Agent Jay Taylor Deputy Chairman J. B. Cozzo Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Term Expires Dec. 31 Class A WINTON, Ed. H. (Fort Worth, Texas) TURNER, Frank (Decatur, Texas) WOODS, J. E. (Temple, Texas) 1942 1943 1944 (re-elected) Class B MILAM, J. R. (Waco, Texas) HILL, George A. (Jr.) (Houston, KURTH, E. L. (Keltys, Texas) Texas) 1942 1943 1944 (re-elected) Class C TAYLOR, JAY, Amarillo, Texas) Chairman and FR Agent COZZO, J. B. (Dallas, Texas) Deputy Chairman BRISCOE, Dolph (Uvaide, Texas) 1942 1943 1944 (appointed) -Federal Reserve Bank of San Francisco r--n--.-~-~ e (Diet. 12) OFFICERS Win. A. Day President Fttst Vice President - Ira Clerk Vice Presidents W. M. Hale C. E. Earhart R. b. West H. N. Mangels Chairman and Federal Reserve Agent Henry F. Grady Deputy Chairman St. George Holden ;-i I ______.-_-_ Federal Reserve Bank of San Francisco (Dist. 12) 77 DIRECTORS Class A Term Expires Dec. 31 BYRD, Carroll F. (Willos, California) MC INTBSH, C. K. (San Franci co, California) ODLIN, Reno (Tacoma, Washington) 1942 1943 1944 (re-elected) Class B TAYLOR, Reese H. (Los Angles, California) COX, Elmer H. (San Francisco, California) VOLKMANN, William G. (San Francisco, California) 1942 1943 1944 (re-elected) Class C WELLMAN, Harry R. (Berkeley, California) HOLDEN, St. George (San Francisco, California) Deputy Chrman GRADY, Henry F. (San Francisco, California) Chrman & FR Agent 1942 (appointed) 0 i' 28 1943 1944 (appointed) HEARINGS June 17,19 HG TT.S.Congress. House. Banking and currency 25( 0 committee. .A2 To amend the Federal reserve act: HTARINGS 194 2 77th,2d sess. on H.R.7159, June 17,19, ... Wash.,Govt.ptg.off.,1942. 1942. 64 p. TestiEccles,M.S. June 17,p0.1-24; June l1,pp.25- 6 2 mony: F. R.Bd.L. 1942 March 27 LEGISLATION [PLIo LAw 507-77TH CONGRESS]. 199-2D SESSION] [S. 2208] AN ACT To further expedite the prosecution of the war. -[CHAPTER Be it enacted by the Senate and House of Representatives of the s United States of America.in p1g7re8 assembled, BY FEDERAL RESERVE BANKS TITLE IV-PU tSE OffGOVERNMENT OBLIGATIONS ;rd SEO. 4Q. Subsection (b) of section 14 of the Act of Dec 9 pber 28, Act, 1913 (38 $tat. 265), otherwise known as the Federal Reser and therein proviso the out striking by amendedjs herebyramended bonds any That insertingmin lieu thereof the following: "Provided, of the Unit .notes, or hej obligations which are direct obligations are fully guaranteed by the United States as to States ofwhi regard to principand nterest may be bought and sold without United Ob r.tq r maturitiq ei r in the open,~;1 e ccordance mad sa and purchases such States rate gto e s with the pvisions of section 12A of this Stat r direct acquired amount of such obligations ve bank l which is held at any one time by the twel~ shall not exceed $5,000,000,000." Approped, March 27,1942, 3 p. m., Eastern War Time. II 1942 June 11 Nonmember banks as depositaries of United States The provision of section 15 of the Federal Reserve Act, which provides that Government funds shall not be deposited in any bank not belonging to the Federal Reserve System, was in effect amended by authorizing the Secre tary of the Treasury to designate any insured bank as a depositary of publico money and repealing all acts in conflict therewith. (56 Stat. 351, 356). Source: Federal Reserve Board Legal Memo, June 26, 1951 - Federal Statutory Changes 1900-1951 Governing the Issuance of Money and Restricted 6r Defining Bank Credit. 1942 LEGISLATION June 11 [PBnmlo LAW 603--77TH CONGRESS] 404- 2 D SESSION] [CHP S[S.2250]1 of of small busin th war, and for d6 ading j, o the Revised Statutes, a&s Se end thereof a new paragr s shall not be subject under this on such capital and surplus to the e red or covered by guaranties, or b k over or to purchase, made b United States or any depar ent of the United St directly or indi ranties, agree rformed b demand. .1942. -define the terms sary. .prov e tion to a nt that ommitm any Fede re ent blud M 1942 July 7 Membership of Federal Open Market Committee LEG Section 12A of the Federal Reserve Act was amended to provide for a regrouping of the Federal Reserve Banks for the purpose of electing representative members of the Federal Open Market Committee (which is composed of the members of the Board of (56 Stat. 647) Governors and five representatives of the Federal Reserve Banks). Reserves required of member banks. Section 19 of the Federal Reserve Act was amended so as to authorize the Board of Governors of the Federal Reserve System to change the reserve requirements of member banks in central reserve cities, within the limitations of the law, without necessarily making a change iff reserve requirements of member banks in reserve cities. (56 Stat.647) Loans or dividends while reserves deficient. Section 19 of the Federal Reserve Act was amended by repealing the provision which prohibits member banks from making new loans or paying dividends while their reserves are deficient. (56 Stat. 647) Source: Federal Reserve Board Legal Memo, June 26, 1951 - Federal Statutory Changes 1900-1951 Governing the Issuance of Money and Restricted or Defining Bank Credit. 1942 Deoambe r 2 LEGISATION FEDERAL RESERVE SYSTEM 1942-1945 Apparent Intent - Expansiona ry For Govt. credit Open Market Operations - Increased holdings of Government securities by $22 billion: Bills, $12.8 billion; certificates, $8.4 billion; and notes $1.3 billion. Bond holdings de creased $500 million. - To maintain the structure of prices and yields of Government securities and to supply banks with ade quate reserves to enable them to meet the drains on their reserves caused by rapid increase in currency in circulation and other factors, and to enable them to purchase such amounts of Government securities as they were called upon to take. Discount Rate Reserve Requirements Selective Regulations Surrounding Circumstances Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 223. 1942 February 1942 to April 1942 FEDERAL RESERVE SYSTEM POLICY ACTION Apparent Intent - Expansionary For Govt. credit Open Market Operations Discount Rate - .000..0 0.0.000. - Reduced from 11/2 to 1 percent at 10 Banks making rate 1 percent at all Banks. - To encourage deficiencies than to sell as an aid to Moral Suasion Selective Regulations Surrounding Circumstances Source: member banks subject to temporary reserve to borrow from the Reserve Banks, rather Government securities in the open market, the financing of the war. Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 222. 1942 March 1942 to May 1942 POLItCY FEDERAL RESERVE SYSTEM . b Apparent Intent - Res trictive For private credit Open Market Operations - . ........... Discount Rate ................. Moral Suasion Selective Regulations - Consumer credit regulations extended to cover noninstall ment credit; raised down payments generally to 1/3; lowered maximum maturity to 12-15 months for purchase of expanded of articles*. list Surrounding Circumstances - To support Government's program for financing war by attempting to counteract inflationary effects of military expenditures by restraint of credit for purposes not connected with the war. Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 222. *With certain exceptions. FEDERAL RESEFVE SYSTEM 1942 April 1942 POLICY ACTION Apparent Intent - Expansionary For Govt. credit Open Market Operations - Established buying rate of 3/8 percent for Treasury bills. - To broaden the market for Treasury bills and to enable banks to invest their idle funds in such bills with assurance as to the liquidity of their investment. Agreed with Treasury to maintain yield level of 3/8 percent on 3-month Treasury bills and of 21/2 percent on long-term bonds. Discount Rate Moral Suasion Selective Regulations Surrounding Circumstances Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 222. I FEDERAL RESERVE SYSTEM 1942 May 1942 POLICY ACTION Apparent Intent - Restrictive For private credit Open Market Operations Discount Rate Moral Suasion - Joint statement by Federal bank supervisory agencies. Selective Regulations Surrounding Circumstances Source: -Referred to part of President's message to Congress of April 27 urging the paying off of debts, and suggested that banks arrange for amortization of loans to consumers. Examiners instructed to check compliance. Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 222. FEDERAL RESERVE SYSTEM 1942 POLICY ACT! June 1942 Apparent Intent - Re strictive For private credit Open Market Operations Discount Rate Moral Suasion - Letter to banks from Chairman, Board of Governors. - Cooperation of banks enlisted to discourage accumulation of inventories of consumer goods. Selective Regulations Surrounding Circumstances Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 222. FEDERAL RESERVE SYSTEM 1942 August 1942 to October 1942 Apparent Intent - Expansionary For Govt. credit Open Market Operations - a.0.* ...900 ..... Discount Rate Peserve Requirements - Reduced from 26 to 20 percent at central reserve city banks. - To'assist New York City and Chicago banks in meeting persistent outflow of funds to other parts of the country caused by heavy Government borrowing in the financial centers and disbursements in other areas, and to supply funds for banks to purchase Treasury securities. Selective Regulations Surrounding Circumstances Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 223. I FEDERAL PESERVE SYSTEM 1942 October 1942 POLICY ACTTO' Apparent Intent - Expansionary For Govt. credit Open Market Operations - Discount Rate - Preferential rate of 1/2 percent on advances secured by short-term Governments. - To encourage member banks to utilize their excess reserves to buy Government securities and to assure them of adequate reserves at low cost when needed. . &.....00 .. .. a. . Reserve Requirements Selective Regulations Surrounding Circumstances Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 223.
@FedFRASER