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625 A meeting of the Board of Governors of the Federal Reserve was held in Washington on Saturday, April 4, 1942, at 1130 PRESENT: Mr. Eccles, Chairman Mr. Szymczak Mr. Draper Mr. Mr. Mr. Mr. The atter Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman action stated with respect to each of the matters herein- referred to was taken by the Board: Telegram to Mr. R. Leslie Kelley, President of the Kelley Kar e()411341Y) Los Angeles, California, reading as follows: Pect,"RePlYing your letters March 23 and 30. Board exOhpublication to quote average retail values of , in its territory, as estimated to best of publish,„ears \raj ' r's ability. If your estimates of average retail : C11 8 of reconditioned used cars in average condition tilareilri,gAllaY and June are higher than figures shown in ItPril book, Board expects that you will quote such her it eufigures For purposes of Regulation N., however, deal ° ---d be noted that Board's intention has been to agilate manuals quoting values of reconditioned cars Iri:: li age condition, as distinguished from manuals reaware meet cars in exceptional condition, Board being cert that exceptional vehicles might be worth 10 per .'d has as stated in your January-February book, and difficulty in reconciling your proposed change tiarch-; 4 5 of quotations with statements on page 7 of your Pril book and of your January-February book that sPe0i4ervice reflects market as it is today'. More t1me.'-2 advice than foregoing not available at this be eWucl question of guidebook designations must neces4 --Y under constant review." Approved unanimously. 626 4/4/42 —2Letter to Ben Feferman Motor Sales, South Bend, Indiana, read— ing as follows: "This will acknowledge your telegram of March 28 with respect to the recent, amendment of Regulation W. 3(, ‘ It is not clear whether you are aware that Part tr) or the Supplement to Regulation W as amended effec— tove APril 1 prohibits the maximum credit value assigned vale ' used car from exceeding a figure based on the retail th ue of the given make and model as shown in any one of Pr? designated guides but does not deal with wholesale tolc!s. The regulation does not prohibit the sale of au— it-n°'iles at more than the guide book values, although Per Centrequire that the credit value be limited to 66-2/3 a _cent of the appraisal guide value, with the result that the lligher percentage down payment is required on sales above appraisal guide value. "The Board will be observing the effects of this pro— the °I1 and will, of course, be prepared to amend it in in event that its net effect proves to be undesirable. thae tase You find, after operating under this provision, are additional facts that should be brought to the Board,s k,th attention we shall be glad to hear from you er !! Approved unanimously. Thereupon the meeting adjourned. Chairman.
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