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559 A meeting of the Board of Governors of the Federal Reserve System was held in Washingt on on Monday, April 10, 194'1, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak McKee Draper Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: The minutes of the meet ing of the Board of Governors of the Federal Reserve System held on April 8, 1944 were approved unani, mously. Memorandum dated April 6, 1944, from Mr. Morrill, recommen ding that the temporary appointment of Mrs. Vivienne Goebel as a stenographer in the Secretary's Office be made permanent, effective as of the expi ration of her present appointment at the close of busi ness on April 13, 1944, with no change in her present basic salary at the rate of ft1,8 00 per annum. Approved unanimously. Letter to Mr. Walden, First Vice President of the Federal Reserve Bank of Richmond, reading as follows: 560 4/1o/1111 -2"The Board of Governors app roves, effective Anril 1, 1944, the changes in the personnel classification Plan of the Federal Res erve Bank of Richmond, involving increases in maximum annual salari es for three positions in the cafeteria as submitted with your letter of March 10, 1944. The revised pages for the certificates submitted with your letter of April 4 have been substituted for those sent wit h the original certificates. "It will be appreciated if you will submit new Form A pages covering the se positions, reflecting the changes as approved by the Board." Approved unanimously, together with a letter to the Joint Commit tee on Salaries and Wages transmitting the origin al and four conies of three certifica tes of the Federal Reserve Bank of Ric hmond with respect to the increases in the maximu m annual salaries for the three positions mentioned in the above letter. Letter to Mr. Young, President of the Federal Reserve Bank of Chicago, reading as follows: "In accordance wit h the request contained in your letter of April 6, 1944, the Board approves the designation of John B. Collins and William P. Schwessinger as special assistant examiners for the Federal Reserve Bank of Chicago." Approved unanimously. Letter to Mr. Albert J. Williams, Media, Pennsylvania, reading as follows: "The Federal Reserve Bank of Philadelphia has referred to us your letter of March 29, 1944, concernin g Regulation W, a cop y of which you sent directly to the Board. You sug gest that loans by building and loan associations to sha reholders, if fully secured by shares, should be exempted from the limitations imposed by the regulation. 561 4/10/44 "The Board has received from time to time a number of proposals to exempt loans which are of the nature of the loans to which You refe r -- those secured by savings pass-books, by credit unio shar es, by securities, and by n other readily marketable collateral, includin loan s seg cured by building and loan shares. It has never appeared that such exemptions coul d be reconciled with the antiinflationary objectives of the regulation. The money that is obtained adds to the general purchasing power of the public and is used to purchase all kinds of goods and services. The regulation's specific object is to restrain the addition of these credit dollars to a nurchasing tower which is alre ady excessive as compared with the goods and serv ices available. That the individual may dispose of his collateral in one way or another, and achieve the same result in so far as he himself is concerned, is correct, but he won' alwa t 7s do so and furthermore if he does the dollars obtained will be withdrawn from funds availabl e to others. "You refer to section 8(k) which exempts loan made s by life insuranc e comnanies fully secured by the cash surrender value of their policies. As you know, such policies usually give thei hold r ers absolute contractual rights to obtain loan s borrowers are not obliged and the to repay the advances. For these reasons, courts have been inclined to treat the advances as in the nature of deductions or withdrawals from the nolicYholders' accounts rather than as debts for which their estates would be liable. It is our unde rstandinc, that this is a condition peculiar to this type transaction and that it does not of apply to loans of the type described in your letter. "The Board is glad to have questions of this kind discussed fully, and if you wish to go into the matter further, we suggest that you get in touch with the Federal Reserve Bank of Phil adelphia." Approved unanimously. Letter to Mr. Coffey, Chai rman of the Federal Reserve Bank of Minneapolis, reading as follows: "At the completion of the examination of the Federal Reserve Bank of Minneapolis, made as of February 11, 1944) 562 4/10/44 -L- "by the Board's examiner s, a copy of the report of examination was left for your information and that of the directors. A cony was also furnished President Peyton. "The Board will appreciate advice that the report has been considered by the board of directors. Any comments you may care to offe rega r rding discussions with respect to the examination or as to action taken or to be taken as a result of the examination will also be anpredated." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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