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Avel-wit r I A meeting of the Board of Governors of the Federal Reserve Systemvias held in Washington on Friday, December 11, 1942, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Ir. Mr. Ir. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Mr. Lir. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter l'eterrecl to was taken by the Board: The minutes of the meeting of the Board of Governors of the Fedet'el Reserve System held on December 10, 1942, were approved unanimously. Telegrams to Mr. Paddock, President of the Federal Reserve Bank (4/30.t0n, Mr. Treiber, Secretary of the Federal Reserve Bank of New York, Leach and McLarin, Presidents of the Federal Reserve Banks of thn "und and Atlanta, respectively, and Messrs. Dillard, Stewart, Powell, €14c1 vL.Le, Secretaries of the Federal Reserve Banks of Chicago, St. Louis, 41.1111ea 8 P°1i , and San Francisco, respectively, stating that the Board ap- 1)1,011 e8 the establishment without change by the Federal Reserve Bank of Saxl ' la Deteinb ncisco on December 8, by the Federal Reserve Bank of Atlanta on el '9, by the Federal Reserve Banks of New York, Richmond, Chicago, --46, and Minneapolis on December 10, 1942, and by the Federal Re- arlic of Boston today, of the rates of discount and purchase in tIkr )cisting schedules. Approved unanimously. 12/11/42 Letter to Mr. George M. Johnson, Assistant Executive Secretary qthe President's Committee on Fair Employment Practice, War Manpower Comed. . 410n, reading as follows: m _,"This is in reply to your letter of November 2 to Chair811 tccles in which you state that the President's Committee °1 1,.Fair Employment Practice has received a report from the United States Employment Service, Washington, D. C. office, ,leging that a aiscriminatory requisition for elevator ophad been received on July 21, 1942, from Mr. Kilgore, 1;hl'ate'rs ,.° Was at that time employed by this Board, but who has 'flrme left the employment of the Board to serve as an officer the United States Navy. "Until the receipt of your letter the Board had no knowl• ir of the statements alleged to have been made by Mr. Kilgore this instance. That the Board has not sanctioned any unfair •s- SCr' iminatory practice in this matter is evidenced by the percentage of negro employees on the Board's staff." Approved unanimously. Telegram to Mr. R. E. Kiages, President of the Columbus Auto Nts c °111PanY, Columbus, Ohio, reading as follows: be n Responaing your wire after discussing matter with mm, . 8' 1 s of Board. In view of circumstances the only course open to be to postpone meeting until such date in January as •: t1 be arranged so that your committee (of directors on offib el Personnel at Cleveland Reserve Bank) can meet with mem, el ' s of Board in Washington." 4 Approved unanimously. 1114110 Letter to Mr. Leach, Presiuent of the Federal Reserve Bank of ticl, reading as follows: te,, "In accordance with the request contained in your letLecember 2, 1942, the Board approves the appointments axlit''orrest • 0. Kendall and Charles E. Hall as assistant extlers vi for the Federal Reserve Bank of Richmond. Please adof the dates upon which these appointments become ef'lye and also as to the salary rates. 12/4/42 m "It has been noted that the aggregate indebtedness of somewhat out of proportion to his reported sal— senior clerk as of January 1, 1942, and that part °r the indebtedness is due a national bank. Accordingly, the Board's approval of the appointment is given with the understanding that the indebtedness to the national bank ' 13-1 be liquidated or financed through sources other than It aas been noted also that the income from his arlottesville property is being placed in a special ac— ount to liquidate his mortgage indebtedness after the Pa;Albent of taxes. "With regard to the indebtedness of Mr. Kendall to ' national bank, it is assumed that this obligation will be Placed on a regular reduction basis, if such is not al— reacty the case." is Z.. Hall as a r Approved unanimously. Letter to Mr. Mulroney, Vice ?resident of the Federal Reserve 11; 11( of Chicago, reading as follows: "In accordance with the request contained in your let— of pecember 3, 1942, the Board approves the appointment : e- R0Y Edward Peterson as an assistant examiner for the Fed— Reserve Bank of Chicago. Please advise us of the date P°11 which the appointment becomes effective." ter Approved unanimously. Letter to Mr. PaAlger, Chief of the Board's Division of Exam,444,t3), reading as follows: section 5240 of the United State'Paragraph number 7 of Am s Revised Statutes (section 21 of the Federal Reserve ti'lv), as amended, provides that the Board of Governors of 0 e Reserve System, at least once each year, shall ' l cler an examination of each Federal Reserve Bank. t "In accordance with this provision of the law, the t°ard orders that at least one examination of each of the 2!elve Federal Reserve Banks be made during the year 1943, a the Board authorizes and directs you to institute and eAtIduct such examinations at such time or times as may seem ' Ilisable in your judgmert." Z Approved unanimously. t7e 12/4/42 -4Letter to the Presidents of all the Federal Reserve Banks, readas follows: "It is understood that several Federal Reserve Banks have received inquiries regarding the application of Regu'ation V, to advances made by general agents of insurance ?mPanies to their sub-agents for living expenses and the lice. The inquiries have not been submitted to the Board 4nd therefore the Board does not know all the facts upon which they are based. however, in the usual case it would Seen' that the answer to such questions would depend upon hether or not the general agent was 'engaged in the busiessl of making loans within the meaning of section 3(a). It the loans are merely sporadic, isolated transactions, agent would not be so engaged and the Regulation Would would not be applicable." 1 7 Approved unanimously. Telegram to Mr. Swanson, Vice President of the Federal Reserve o Uinneapolis, reading as follows: "Your wire December 7. An agreement to pay the amount clefault in a single payment at any time within one month *sr°m date of agreement will suffice to cure default under 5(d)(2) of Regulation ta. A post-dated check, hew: e etion .6", While evidence of an agreement as described in sec5(d)(2), would not itself constitute 'a written agreeen° required by that section." in f Approved unanimously. Letter to kr. Leach, Chairman of the Committee on Operations of the c 04ference of Presidents, Federal Reserve Bank of Richmond, reading ."This is in reply to your letter of November 25, 1942, 4111bMitting to the Board for its approval the insurance agree, , eIlt.as revised and agreed upon by the temporary insurance 1 mIllittee at its meeting in Washington on November 19-20, 142 8 12/4/42 -5"In submitting to you, as Chairman of the Committee °11 4. Operations, Conference of Presidents, the report of the ' eniPorary insurance committee, Mr. Stroud, chairman of that e°Innattee, stated: 'It is contemplated that the permanent occpmi . ttee provided for in the agreement will study means 1111Proving the agreement from time to time in the light further experience.' The insurance agreement, however, ',,,°es not expressly impose upon the insurance committee 13.reated thereunder any obligation to conduct studies, with t.lriew to extending the coverage of the agreement to addi— t12118-1 practicable risks. Therefore, the Board is approving Insurance agreement in the form submitted by you, with :Ile understanding that the Conference of Presidents will in— ' e'I'Llet the insurance committee to consider without delay the 2cte„, ension of the coverage as suggested in the Board's letter 1) u'L March 30, 1942, to Chairman Day, of the Conference of ' l esidents, copy of which was furnished you on the same date." Approved unanimously. Thereupon the meeting adjourned. 696,dwi.If)"tiViary. Chairman.
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