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Minutes of actions taken by the Board of Governors of the Psobaral Reserve System on Monday, August 13, 19)1. The Board met in the Board Room at 12:00 noon. PRESENT: Mr. Szymczak, Chairman pro tern Mr. Evans Mr. Powell Carpenter, Secretary Kenyon, Assistant Secretary Thurston, Assistant to the Board Riefler, Assistant to the Chairman Leonard, Director, Division of Bank Operations Mr. Solomon, Assistant General Counsel Mr. Fauver, Assistant Director, Division of Selective Credit Regulation Mr. Mr. Mr. Mr. Mr. There was presented a draft of letter to Mr. A. E. Howse, Assistant to the Director, Office of Defense Mobilization, Washington, D. C., in response to a memorandum from the Office of Defense Mobilization 'late August 9) 1951, requesting that status reports on the Kansas-Missouri rloro -1/44 disaster rehabilitation be submitted in triplicate at a meeting Of the till "gencY Washington Committee on Flood Relief to be held today at :()c) and also requesting for submission at that meeting comments on the r01101 the pe., flood disaster bills: H. J. Resolution 307, to authorize ge1111 National Mortgage Association to enter into agreements prior to coil "ruction to purchase mortgages on housing in disaster areas; 193 to Provide payment for property losses resulting from the l951 1'1%as in the States of Kansas, Missouri and Oklahoma, and for other 868; mad H.R. 5022, for the same purposes as S.1935. 8123/51 -2Mr. Carpenter stated that following receipt of the memorandum *c111 the Office of Defense Mobilization, he sent a telegram to President 1"4, of the Federal Reserve Bank of Kansas City, quoting its contents, that he disCussed the matter subsequently with Mr. Leedy by telephone, 44i that Mr. Leedy in two telegrams dated August 11, 1971, summarized the additional steps taken by the Reserve Bank in connection with flood cli8aster rehabilitation since the report of the Board to Mr. Howse on julY 2., 1971, and also offered comments on the joint resolution and the t4/0bills referred to above. The proposed letter to Mr. Howse was read and discussed, and several changes were suggested, following which it was approved unanimously as follows: "This letter is in response to Mr. Young's memorandum August 9, 19)1, asking for a status report on the KansasMissouri flood disaster rehabilitation. the"H.J. Res. 307 amends the National Housing Act to authorize Federal National Mortgage Association to enter into agreePrior to construction to purchase mortgages on housing arlY area declared by the President to be a disaster area de the result of a major disaster. The Board recognizes the theality of providing assistsnce to persons suffering Th 1°88 of their homes as the result of a major disaster. _°int resolution, however, would authorize assistance co:.ae case of housing not necessarily related to a disaster. i:.:eideration, therefore, should be given to modifying the ,Zit resolution by restricting its applicability to the of mortgages for the purpose of replacing or repair4 ge!,1" ' 4°11sing which has been damaged or destroyed. 8 'The Board ( ) 3 of Governors has been in touch with Mr. Leedy, z7 i ibe ident the Federal Reserve Bank of Kansas City and a commjof the Kansas City Regional Defense Mobilization ceiv,:tee, and there are attached copies of telegrams refrom 1,4.h' 414-LIA which will cover the other matters referred j Ma/51 _3_ "to in Mr. Young's memorandum and will serve to bring up to date the report submitted by the Board on July 24, 1951." Mr. Riefler stated that following receipt of the memorandum fl the Office of Defense Mobilization late on Thursday, August 9, he discussed the matter with Chairman Martin, who suggested that since it 4Peared that the problem of financing the rehabilitation through the U8e °f V-loans or a similar program involving System facilities might be br°11Sht up at the meeting of the Emergency Washington Committee on Plood Aelief this afternoon, Mr. Vardaman might wish to attend. Mr. Rierlsr said that he had attempted to get in touch with Mr. Vardaman, 'at Mr. he had not been able to reach him. It was then suggested that p °N4ell, as Mr. Vardaman's alternate, confer with Mr. Riefler and clecide Who Should represent the Board at today's meeting of the Committee. This suggestion was approved unanimously. At this point all of the members of the staff with the exceptiori of Messrs. Carpenter and Kenyon withdrew, and the action stated With respect to each of the matters hereinafter referred to was taken bY the Board: Memorandum dated August ' 4 of 1448 7, 1951, from Mr. Young, Director, Research and Statistics, recommending the appointment of Jo Hickman as a Clerk-Typist in that Division, on a temporary te basis, With basic salary at the rate of $2,730 per annum, etrect as of the date upon which she enters upon the performance of I 7S2 843/51 -4- Iler duties after having passed the usual physical examination and subject to the completion of a satisfactory employment investigation. Approved unanimously. Letter to Mr. Wiltse, Vice President of the Federal Reserve 411k. Of New York, reading as follows: "In accordance with the request contained in your letter of August 7, 1951, the Board of Governors approves the appointments of Charles Eaton and Franklin F. Mittricker, Jr.) at present assistant examiners, as examiners for the Federal Reserve Bank of New York; the appointments of Patrick F. Callahan, George B. Rodda and Harold L. Saf assistant examiners; and the designations of Stephen • Frank and Richard W. Rahe as special assistant examiners. "Please advise us of the dates upon which the appointments of the examiners and assistant examiners are made effective." r Approved unanimously. Letter to Mr. Woolley, Vice President of the Federal Reserve tank °I' Kansas City, reading as follows: copy of your dis "Thank you very much for sending us a aster designation under Regulation W for Wakeeney, Kansas, .-1"Ing the tornado there on June 27. With all of the ernc:! i-k'ra work you have had in recent weeks as a result of the lY flood, there is no occasion for an apology over the de Au eY in getting this to us as indicated in your letter of ust 2. We appreciated receiving copies of the inspection ! re and the newspaper clippings indicating the extent nature of the damage. "As cated in W-154 the purpose of the amendment to , eectio of the regulation was to provide the Reserve se;"e with greater discretionary powers for defining the pe,2? of the exemption to conform to the needs of the illTcular case involved. You will recall, however, that cent correspondence and conversations relative ° tilrhe t our disaster designations for the flood, we indicated concern about providing adequate limitations on the 8/13/51 -5- "use of the exemption. Just as an example, we noted that in the Wakeeney case 30 automobiles were totally destroyed and approximately 6) received damage ranging from minor to major in character. Lifting the restrictions of the regulation for those whose automobiles were totally destroyed or received major damage would appear altogether reasonable. On the other hand, there have been cases in the past where a broken windshield or a dented fender caused by flying debris has been the excuse for replacing the damaged car With a new one. This is a transaction of the kind which it is now possible to eliminate in a Reserve Bank's disaster area designation. "The only other comment we should like to make is in regard to the time limit of 6 months for an exemption of this kind. It would be an unusual case in which 6 months would be needed to provide for all of the exemrt cases, especially iU the automobile field. Under such a designation if a a sorter period such as 3 months is used initially, it can .1waYs be extended at a later date if circumstances warrant 1.t." Approved unanimously. Memorandum dated August 10, 1951, from Mr. Hooff, Assistant Counsel, flIending that there be published in the law department of the August 1411A ' of the Federal Reserve Bulletin statements in the form attached to the,„ 'elaorandum with respect to the following subjects:" Legislation Extension of Defense ProductionAcI-Consumer Credit Amendment to Regulation W Real Estate Credit Dining Cars as Nonresidential Structures (X-)8) Unavoidable Delay in Credit Extension (X-60) , Casualty Exemption for Tenants (X-61) Loans to Affiliates Purchase of Affiliate's Note (S-1373) Approved unanimously.
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