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714 A meeting of the Board of Governors of the Federal Reserve SYstell was held in Washington on Tuesday, April 14, 1942, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman 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 hereine'ler r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the (teral Reserve System held on April 13, 1942, were approved unani- 14°114-Y. Memorandum dated April 9, 1942, from Mr. Nelson, Assistant 4cl'et„ recommending (1) that the temporary appointment of Adam V. Haue er ae a chauffeur in the Secretary's Office be made permanent, ettset. Ive April 16, 1942, with the understanding that, should Mr. 8°4 return to the Board's employ after the war, Mr. Hauser would In hie position as chauffeur but would no longer be in charge "the "auffeur force, and (2) that the temporary appointment of William as a Porter in the Secretary's Office be made permanent, effect40 , 4 4Prill 16, 1942, with the understanding that such action would ot 6.-Ireet --e present temporary assignment to the guard force. Approved unanimously. 715 4/14/42 -2Memorandum dated April 9, 1942, from Mr. Nelson, Assistant Secre , 171 recommending that Miss Mildred Crews be transferred from ' the of,. flee of the Secretary to the Office of Governor Draper in the 11°44scl If ' embers' Section as a stenographer, with no change in her present so ' arY at the rate of S1,860 per annum, effective as of April 16, 1942. Approved unanimously. Memorandum dated April 10, 1942, from Mr. Myatt, General Coun8e1._3 rec ommending that the salary of Mrs. Frances C. Cashell, a sten- (Igl'aPher in the Office of General Counsel, be increased from $1,680 4,80D per annum, effective May 1, 1942. to Approved unanimously. Memorandum dated April 10, 1942, from Mr. &mead, Chief of the 8414 of Bank Operations, recommending that Thomas M. Parsons, Asc)ciat, e Technical Assistant in that Division, be granted leave of Etbeen_ 4 "without pay beginning April 16, 1942, so that he might enter betiite clutY with the United States Army, and that he be granted the ei'erits Provided in the policy adopted by the Board on November 14, 1940 a '-nd amended August 20, 1941, for all employees entering military Approved unanimously. ktitilon Letter to Mr. Leach, President of the Federal Reserve Bank of d3 reading as follows: 711; 4/14/42 -3- . "This refers to Mr. Mercer's letter of April 7, 1942, a!k1ng for a ruling on the question whether an executive %ricer of a member bank who has been granted a leave of absence of more than one year may borrow from his bank in j e csee of i2500, the loan to mature prior to the expira, lon of his leave of absence. The opinion of counsel for ' °ur bank in connection with this matter has been noted. e ."The question presented is rather unusual. The executive al officer could resign in lieu of taking a leave of ,"nee or the board of directors of the bank could adopt reso1u4 i0n providing that such officer is not authorto participate in the operating management of the 8e*" and in either case section 22(g) of the Federal ReI've Act would not prevent the making of the loan in qu estion. mat. "In the circumstances, the Board does not wish to A.e a ruling which might be regarded as having general Plication to cases of a similar kind. While Mr. Mercer's ,tter does not refer to the bank or the officer in quescl°a, it is assumed that you are familiar with the cirtIllnletances at the particular bank and if you are satisfied noZt the loan is to be made in good faith, the Board will interpose any objection to it." 1 t Approved unanimously. Telegram to the Presidents of all the Federal Reserve Banks, g as follows: pe ."Re Board's wires of April 10 and 13 stating that le: ling further advice, information regarding rate schedln connection with operations under Executive Order 9 11 :_should not be released but used only in connection with le nandling of actual transactions as they arise' this plabi'o advise that while such rate schedules are not for ti 'ication or general distribution, there is no objecsechlt° disclosure of the information contained in such 111847 .111es by Reserve Banks to banks and other financing vit;ltutions upon request or in discussions at meetings n representatives of such institutions." Approved unanimously. 717 4114/42 -4Letter to Mr. Dillard, Vice President of the Federal Reserve of Chicago, reading as follows: "Enclosed is a copy of a letter which the Board sent, April 10, to Mr. Meffley of the Recording and Statistical ' dorporation. Mr. Meffley was here on April 2 and indi!at?ci that he was not particularly concerned about the : g elgnation of his Official Automobile Guide for purposes °t Regulation Wbut that he was disturbed about the pos!lble unfavorable reaction of his insurance customers to .4Liv_Publication that the Board refused to designate. He _en wrote us setting forth his views more explicitly, in 'esPonse to which the Board sent him the enclosed letter. "With further reference to the designation of guide book ti s for purposes of Regulation VI, we have noted that the 11-1-May issue of the 'Market Record' includes the follow441g sentence: 'The Federal Reserve Board has just notified us that MARKET RECORD has been designated for compliance with Regulation WI and that prices it appearing in ALL editions are acceptable.' ri seems to us that the latter part of this sentence carw:" an implication that the 'Market Record' has in some a better official standing than other designated guides, • i2d lt would seem desirable if this implication were elim17.Ted in future issues. It will be appreciated if you 09-4-1 find an occasion, between now and the date when the allne-JulY issue goes to press, to bring this point to the Ltention of the publishers of the 'Market Record'." 2 Approved unanimously. Letter to Mr. R. Leslie Kelley, Editor and Publisher of the •8lue Book, Los Angeles, California, reading as follows: "This will acknowledge your letter of April 7 callattention to the fact that some guide books desi!ated for purposes of Regulation Ti refer to their desin a manner that may imply that they are the 4;17• 4' designated publication. The Board has not Issued ! tr more detailed requests with respect to the publishers' ineatment of this subject than the requests that were eluded in the letters of March 21 to the respective 718 4114/42 —5— Publishers. As a general principle, the Board feels that the use of designations under Regulation W in a Promotional way to advance the interests of a particular Fulde book is distinctly undesirable, and the Board hopes Fiat publishers will refrain from such use of their deslgnations because it wishes to avoid the necessity of .?Pecifying in detail the language and methods that pub4ashere may use if they wish to retain their designations. 'Pe have also received the copy of the letter that .Y:_au sent to all publishers of designated books in your Iierritory, and we are, of course, holding this copy pend411g anything further that may develop on this subject." Approved unanimously. Letter to Mr. R. H. Shaw, President of The Peoples State Bank, Chel‘rYilale, Kansas, reading as follows: "This refers to your letter of April 2, 1942, in which .1u state that last December your Bank made a floor plan loan ot) Jc a,a new pick-up and that it now develops that the Reconinction Finance Corporation will not relieve you of the an* You state that you see no fairness in this situation and think that an order should be issued that would permit the lieveale of the truck or that steps should be taken to rethe Bank of the loan. "1 regret to have to advise you that there does not ap'ar to be any action which the Board of Governors of the take to aid in the solution of '‘thleci•eral Reserve System can troublesome problem, since the matter is entirely out-de the Board's jurisdiction. The Reconstruction Finance ' i°rPoration is not a part of the Federal Reserve System but an entirely separate and distinct organization over which 04.Board has no jurisdiction or control. Likewise, the bi2;ce of Price Administration, which issued the order forc;',,.'ing the sale of motor vehicles except to persons holding s_r Lificates entitling them to purchase the same, is a Parate and distinct organization over which the Board of Governors of the Federal Reserve System has no jurisdiction 4 4 cei 71t may interest you to know that this problem is reving attention in Congress. There is enclosed for your 719 4/14/42 —6— "information a copy of a Bill, S. 2315, which was prepared by the Special Committee to Study Problems of American Small Business and introduced in the Senate on Feb1.1arY 25, 1942 by Senator Murray, the Chairman of that rmmittee. This bill was referred to the Committee, on ,nking and Currency, which started holding hearings on t'a n April 8, 1942 and has already heard testimony on 1;"is subject by representatives of the Retail Automobile 4!alers Association. An almost identical Bill, H. R. r59, was introduced in the House of Representatives on march 26, 1942 and referred to the Committee on Banking and Currency of the House of Representatives. 'We hope that this information will be of some assistance to you." Approved unanimously. Memorandum dated April 14, 1942, from Mr. Cravens, Administrator t"he War Loans Committee, submitting for approval by the Board a blIdget in the amount of 4t14,742.96 covering the estimated requirements tor t Unds to cover the cost of operating the office of the Administrat,or f OT the period April 6 to December 31, 1942, inclusive. The budget was approved unanimously. Thereupon the meeting adjourned. -qao:G/b Secretary. 4P1)r Vice hairman.
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