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261 BOARD OF GOVERNORS OF' THE FEDERAL RESERVE SYSTEM S-508 WASHINGTON ADDRE88 DF" .. ICIIAL DDRRE8 .. DNDENCE TD THE 8DARD June 12, 1942 Dear Sir: , In the Board's letter of May 6, 1942 (S-470) there was quoted an excerpt from a rnemorandu,m received from the War Department stating that "where loans guaranteed under Regulation V are to be secured qy assignment of contracts the funds may be released in so far as the War Department is concerned immediately upon execution of the assignment by the contractor even thou&h that assignment is not perfected by proper filing until later, rt Recently one of the Federal Reserve Banks raised the question whether the principles of this letter are also applicable to Navy Department contracts, In response to an inquiry made by us, we have now received a memorandum on thi.s sub,ject from Mr. S. A. Mitchell, Chief, Finance Section, Navy Department, which contains the tollowing statement: "The Navy Department agrees entirely with the attitude taken by the War Department as quoted in Mr. Bethea's letter of May 6, 1942, on the above subject." ~ truly,;ours 1 ~~-:---- T ~ ;k4-.~~4----. L. P. Bethea, Assistant Secretary, TO THE PRESIDENTS OF ALL FEDERAL Rf!,SERVE BANKS
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