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BOARD OF GOVERNORS

DF THE

FEDERAL RESERVE SYSTEM

Office Correspondence
To

Chairman Eccles

From

Date My u,
*
Subject:

Mr┬╗ Carpenter
In accordance with your request there are attached two
copies of the statement of the proposed action by the Board of
Governors on margin requirements. This statement has been approved by Messrs. Parry and Morrill.
Enclosures 2.




The Board of Governors is prepared to increase from 50
per cent to 70 per cent the margin requirements now prescribed in
its Regulations T and U, upon being advised that such action would
be in hanaony with the stabilization program of the Government*
This action would include a requirement not now in the
regulations that when there is a sale of securities from an
undenaargined account the proceeds of the sale shall be used to
the extent necessary to margin the remaining securities in the
account on a 70 per cent basis.