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1841' Minutes of actions taken by the Board of Governors of the '1'ederal Reserve System on Friday, August 314 1951. PRESENT: Mr. Martin, Chairman Mx. Evans Mr. Vardaman Mr. Carpenter, Secretary Mr. Kenyon, Assistant Secretary Telegrams to t'ae Feaeml Reserve Banks of Chicago, St. Louis kN1R -an Francisco, stating that the Board approves the establishment Ilithott change by the Federal Reserve Bank of St. Louis on August 27, 4 ‘ne Federal Reserve Bank of San Francisco on August 2, and by the 4O.1 Reserve Bank of Chicago on August 30, 191, of the rates of il tsc °unt &nd purchase in their existing schedules. Approved unanimously. Memorandum dated August 29, 19)1, from Mr. Garfield, Advi on t en, Research, Division of Research and Statistics, recommending '4101111.C. that the resignation of Miss Orient), Ruth Sylvester, Clerk in that Divi81°4) be accepted to be effective, in accordance with her request, at the el°se of buness September 14, .1951. Approved unanimously, Memorcndlur dated AuL-uut 30) 3_951, from Mr. Garfield, Adviser on lC Research, Division of Research and Statistics, recommending PPointment of Miss Margaret Anne Logee as Clerk in that Division, ten1 basis for a period of one year, with basic salary at the M1/51 -2- l'ete of $2,87;) per annum, effective as of the date upon which she enters 404 the performance of her duties after having passed the usual physical illation and subject to the completion of a satisfactory employment 14Ve8tigation. Approved unanimously. Memorandum dated August 28, 1951, from Mr. Sloan, Director, Div4 1-sion of Examinations, recommending an increase in the basic salary (IrNiiss Frances Scott, Special Assistant Federal Reserve Examiner in that Division, from $4,075 to $4,200 per annum, effective Skptember 2, 1951. Approved unanimously. Meworandum dated August 27, 19)1, from Mr. Sloan, Director, 4-Pn of Examinations, recommending an ,increase in the basic salary ". Louise S. Anderson, Supervisor, AecordIng and Stenographic SecAio„, ' 4 114 that Division, from *2,875 to $3,2450 per annum, .effective Sepuur 2, 1951. Approved unanimously. ,Memorandum dated August 28, 1951, from Mr. Garfield, Advlser ReoLiarch, Division of Research and Statistics, recommending eemployment of Mrs. Mary F. Weaver as Clerk In that Divist.on, at --4*c salary of .$3,850 Per annum, effective the date of her return ' to atity. Approved unanimously. • '8/31/51 -3Letter to Mr. Neely, Federal Reserve Agent of the Federal Re- Bank of Atlanta, reading as follows: "In accordance with the request contained in Your letter of August 28, 1951, the Board of Governors approves, effective September 1, 1951, the payment of salaries to the following named members of the Federal Reserve Agent's staff at the rates indicated: Annual Salary Title Name H. B. Hopre Federal Reserve Agent's Representative, New Orleans Branch Federal Reserve Agent's D. J. Ducamus Representative, New $3,480. Orleans Branch Approved unanimously. Letter to Board of Directors Montclair Trust Company, Montclair, Jersey, reading as follows: "Pursuant to your request submitted through the l'ederal Reserve Bank of New York, the Board of Governors aPProves the establishment and operation of a branch by Montclair Trust Company in Verona, New Jersey, and herebY gives its written consent under the provisions of Section 18 (c) of the Federal Deposit Insurance Act to your absorption of Verona Trust Company without increasing the capital of your company to an amount which will equal the aggregate capital of the two banks involved in the Merger, upon conditions that: "(a) The absorption is effected substantially in "cordance with the plan as represented to the Reserve Bank, "(b) The formal approval of the appropriate State authorities Is obtained, and "(c) The surplus of the Montclair Trust Company is 14 ,creased to an amount equal to the aggregate surplus at he time of takeover of the two banks involved In the 4b8orption which amount shall not be less than $850,000." Approved unanimously, for transmittal through the Federal Reserve Bank of New York. 1 S51 -4Letter to Mr. Stetzelberger, lace President of the Federal Re8erve Bank of Cleveland, reading as follows: "Referring to your letter and recommendation of AugUst 27, 1971, the Board of Governors further extends until April 17, 1952, the time within which The Cleveland Trust Company, Cleveland, Ohio, may establish the branch in Euclid, Ohio, as approved by the Board under 'date of October 17, 1950." Approved unanimously. Telegram to the Presidents of all Federal Reserve Banks, reading follows: "Treasury has indicated informally that they would like to ship $4) million new silver ones to various Federal leserVe Banks and branches to be held by them in special ,custody account. The matter has been discussed with Mr, .Rounds as Coordinator of War Emergency Operations who concurs in the view that the Treasurys suggestion should be adopted to the extent it is feasible to do so. Accordingly, Please advise approximate amount that may be 'shipped to .Your Bank end branches." Approved unanimously. Letter to the Presidents of all Federal Reserve Banks and the Vice Presidents In charge of Detroit and Los Angeles Branches, reading 48 follows "For your information, there is enclosed a copy of 4ecutive Order No. 10281 issued by the President on AUgust 28, 1971, which, among other things, establishes , a Defense Materials Procurement Agency for the prOdure. to Ment of strategic and Critical materials pursuant section 303 of the Defense Production Act of 1950, as 41mencled, and revises the Authority of the Reconstructio4 Finance Corporation to 'make loans to business enterunder section 302Hof that Act. 1852 8/31/51 -5- "Section 202 of this Executive Order amends Executive Order No. 10161 of September 9, 1950, to designate the Defense Materials Procurement Agency as at additional guaranteeAct, . inE agency under section 301 of the Defense Production may which action any We shall, of course, advise you of be taken by the new agency for the. purpose of guaranteeing V•, .Ioans. "It will be noted that the new Executive Order also "ends Executive Order No, 10161 so as to .provide in that 'Order for the designation of the Atomic Energy Commission a8 a guaranteeing agency; and consequently Executive Order No. 10223 by which that Commission was previously designated as a guaranteeing agency has been revoked." Approved unanimously. Letter to Mr. Lewis, Vice President of the Federal Reserve BEmk Or St. Louis, reading as follows: "This refers to your letter of August 24, 19)1, forwardine a letter of August 23, 1951, from Mr. Norman Bierman concerning a. leasing arrangement of Feld Auto Leasing Company Aulder Regulation "It appears that the Company has a number of contracts vhieh clearly qualify under one or another of several exemptions available on the subject under the regulation. The inquiry is not made as to those, but with respect to certain °thers. As to these latter arrangements that the Company wishes to enter into, Mr. Bierman apparently urges that they 4re exempt from the regulation on two different, grounds. °Ile is that title to the automobile in question doe's not 4188 to the customer, a specific provision to that effect )e ng included in the contract. The other ground is that th . 6 e leasing arrangement is exempt as a credit in excess of 95,000, the argument being that the arrangement extends "er such a long period that the customer obligates himself to pay more than $5,000 during its existence. t "After giving careful consideration to the informaion presented by Mr. Bierman, it appears that neither ground can be sustained, and that the proposed arrangement 14°uld be subject to the regulation. "We assume that Mr. Bierman has presented his informati°n and arguments as fully as he desires. However, we are, f C• it . 77,r) -6"of course, anxious to be sure that any person having a question under any of the Board's regulations be afforded every reasonable opportunity to present his views. Therefore, even though it seems clear on the basis of the information presented that the arrangements in question would be sUbject to the regulation, if Nr. Bierman would like to submit any further information or any memorandum of authorities, we would be glad to give them consideration, and if he would like todiscuss the matter with appropriate members of the Board's staff we would be glad to arrange an appointment for the purpose.' Approved unanimously. Memorandum dated August 28, 1951, from Mr. Sloan, Director, 4.011 of Examinations, recommending for reasons stated in the memoealdtm 1, that the following accounts in the 1951 budget of that Divi814"e increased in the amounts indicated: Miscellaneous Expenses Telephone and Telegraph Approved unanimously. $2,500. 400
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