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CI) Minutes of actions taken by the Board of Governors of the Pede _ rul Reserve System on Tuesday, August 9, 1949. PRESENT: Mr. Eccles, Chairman pro tem. Mr. Draper Mr. Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Hammond, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Letter to Mr. Stetzelberger, Vice President of the Federal Reserve sank of Cleveland, reading as follows: "This refers to the request by BancOhio Corporation transmitted with your letter of July 2), 1949, for informaion as to whether Series G United States Savings Bonds and eries D Treasury Savings Notes qualify as 'readily marketassets' within the meaning of section 7 of Regulation and section - 144 of the Revised Statutes. "Please advise the Corporation that the Board considers direct obligations of the United States and obligations +1111Y guaranteed by the United States as to principal and in: erest as readily marketable assets within the meaning of 1.his term as used in section j144 and Regulation P, and that : 1!lere . is no limitation on the proportion of the 'reserve , nich may be invested in such obligations." Approved unanimously. or Memorandum dated July 22, 1949, from Messrs. Solomon and Cherry the Le gal Division referring to the recently enacted Federal Prop- ertY A,. ' -" Administrative Services Act of 1949 which creates a new 4erle 3r known as the General Services Administration and provides for teQorta s management and for procurement, utilization, and disposition ()t Oove_ 'lament property. The memorandum took the position that in view the specific provisions of section 10 of the Federal Reserve Act 8/9/49 ]Ch -2- gives the Board complete control over its fiscal affairs, the ecler6.1 Property and Administrative Services Act did not apply to the Board, but that attorneys for the General Services Administration -, -4Light disagree. In these circumstances, the memorandum recom- alencle (l) that the Board in accordance with the view expressed el3cve Proceed on the basis that it is not subject to the provisions "th e Act except for certain provisions of existing law relating to rec ords management with which the Board has complied in the past, 4111 \‹) that replies not be made to routine or form letter requests (at di -4_, '"ilaguished from special requests) that may be received to 144ke reports in connection with such provisions. This would include the r4"lorandum addressed by the White House on July 1, 1949, to all exec litive agencies advising them of the new Act and requesting that eert 4-- trett O- reports relating to excess property be made to the Adminiof General Services. The memorandum assumed that the Board continue to procure, utilize, and dispose of Board property -eccrdance with sound principles of economical and efficient ad14i44 tration as applied to the specialized needs of the Board. Under the Act the President is authorized to exempt an agency from the 11'();r1s10118 of the Act provided he does so before July 1, 19:)0, and he als 3.413r prescribe such policies and directives not inconsistent With thethe Provisions of the Act as he may deem necessary to effectuate 1)1s°1/is1ons of the Act. The memorandum suggested that consideration 1356 MV49 "night be given to asking the President to remove all doubt on the ciltion by exempting the Board and unless such a request was made eE4aier it seemed desirable to review the matter early in 1950 with that po ssibility in mind. The recommendations contained in the memorandum were approved unanimously, with the understanding (1) that the staff would continue to study policies and procedures with respect to procurement and the utilization and disposition of Board property in order to assure economical and efficient administration as applied to the specialized needs of the Board, and (2) that the staff would consider and raise with the Board early in 1950 the question whether any action should be taken to remove any question as to the applicability of the Federal Property and Administrative Services Act to the Board. ADDrovea: Chairman pro tem.
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