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20, 3 Fe Minutes of actions taken by the Board of Governors of the 1 Reserve System on Thursday, December PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. M1,11tes ?A _ 9, 1948, Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board of actions taken by the Board of Governors of the —rve System on December Mernorandum dated December 111141, ana 8, 1948, were approved unani- 8, 1948, from Mr. Vest, General Townsend, Solicitor, recommending that Mrs. Frances kvis:14' Secretary to Mr. Townsend, be transferred from the Legal : : i t° the Office of the Solicitor as Secretary to the Solicitot, no eLtely. change in her present basic salary, effective immedi- Approved unanimously. Me111°1'andu1 dated December 7, 1948, from Mr. Thomas, Director 1) t 14111-slot-I of Research and Statistics, recommending that the illeNs'Y Of Miss Ruby S. Andrews, a clerk in that Division, be -l91/4a, $2,949.72 to 3,024.96 per annum, effective December Q. Approved unanimously. 2€04 12/9/14.8 -2Or Memorandum dated December 7, 1948, from Mr. Smead, Director the D ivision of Bank Operations, recommending that the temporary 413kiritment of His s Doris McTeer, a clerk-typist in that Division, Zterded for a period of six months beginning December 29, 1948, 'aith no nge in her present basic salary of $2,284 per annum. Approved unanimously. Letter to Mr. Davis, First Vice President of the Federal Reserve ta rik of Philadelphia, reading as follows: yolir "In accordance with the request contained in the letter of December 3, 1948, the Board approves Vice,, 1:)837111ent of salaries to Mr. L. E. Donaldson as per- "1-resident of the Bank at the rate of $11,000 As i alT11-1m and to Mr. J. V. Vergari as Counsel and tols:tL,ant Secretary at the rate of $10,000 per annum 1949 r Period January 1, 1949 through April 30, Approved unanimously. Lett 4171k or sa er to Mr. Volberg, Vice President of the Federal Reserve 11 Francisco, reading as follows: klt. 11 accordance with the request contained in the 8, ,etter of December 3, 1948, the Board approves theivPointment of Franklin Neff as an examiner for Etclyisederal Reserve Bank of San Francisco. Please ti lele . date upon which the appointment beeceeitl,eO cf 1)toximmIt is noted that Mr. Neff's obligation of aptrazi:telY $300 to Bank of America NT&SA will be ---erised to a non-bank holder." Approved unanimously. 44 843Dlication had been received under date of October 27, N, 111'014 "The Chase National Bank of the City of New York", New 2095 12/9/48 -3New York, requesting approval of the Board to establish and 4111ta1t. a. branch of the bank in Osaka, Japan, and a letter had heeia received. under date of October 29, 1948, from Mr. Wiltse, Vice I'l'eataent of the Federal Reserve Bank of New York, recommending that the application be approved. The Board had also been advised the Office of the Comptroller of the Currency on November 5, 1948, arid by the Department of the Army on November 22, 1948, that tlic)se (lePartitents had no objection to the establishment of the pro13()N branch. In this connection there was submitted a draft of 4ttel' to"The tb„ Chase National Bank of the City of New York" read'It 48 follows: • or The Board of Governors of the Federal ReQYstem authorizes The Chase National Bank the c)ts itY of New York, pursuant to the provisions tah1.7: 11. 25 of the Federal Reserve Act, to esa branch at Osaka, Japan, and to operate and elle}, 4111 such branch subject to the provisions of 18 4 Z.1cm; upon condition that unless the branch orb:;‘e-LlY established and opened for business on by1-17,pe December 1, 1949, all rights granted herebe deemed to have been abandoned and the %a -'-LtY he rebyranted shall automatically terminate 811.oh date." g APproved unanimously, together letter to Mr. Wiltse, Vice ;resident of the Federal Reserve —414k of New York, reading as follows: VLosed is a letter of the Board of Governors ttlAthori ' yo z t.-ulg The Chase National Bank of the City of 441)41.-r'% New York, to establish a branch at Osaka, e°1DY 01,141:ch You will please deliver to the bank. A - 'uls letter is enclosed for your files. 12/9/48 -44 "Please ask the bank to note that the authority ' o'c establish the branch will automatically terminate laDecember 1, 1949, if the branch is not actually e4:4blished and opened for business on or before that lir e) and request the bank to advise the Board in ,Iting through the Federal Reserve Bank of New York 13 11 the ' branch is so established and opened for Letter to Mr. Rollin H. Stewart, Stewart Motor Sales, Inc., Els St Washington Street, Indianapolis 1, Indiana, reading rOliows: &re:Thank you for your letter of November 18, ad1./iti, -'ed to Governor Eccles, about the prospects for thatdra.wal of Regulation W next March. You comment for - You favor the regulation of instalment credit it mlird cars and would favor it also for new cars ilisao-lrities as long as 24 months were permitted, stect : of the present limit of 18 months which you Part; -Ls severely restricting your new car sales, 'cUlarly to wage earners. the : With regard to the termination of Regulation W, reuatute which authorized the reinstatement of the Prolqn°n (Public Law 905, approved August 16, 1948) We for its continuation through June 30, 1949. rlot know of any significance to be attached to m &reh in connection with expiration of the regulacredit 'he Board believes that continuation of consumer Ineezs - l'egnlation would be in the public interest, as a ea.rryi1 7 , helping to prevent economic instability. In chaziRe-.%. out this purpose in a continuing regulation, iri down payment or maturity provisions would N°11 economic or credit conditions. 'eri e appreciate your sending us the information on -reit conditions in your business and your views onbe .. terIns, and you may be certain that these will dered 41e in our continuing study of the provisions of ll'ation.,1 tio/C Approved unanimously. it'57 -5Letter to Mr. Millard, Director, Division of Examinations, G overnors of the Federal Reserve System, reading as follows: 80Etra ut "Paragraph 7 of Section 5240 of the Revised StatRees of the United States (Section 21 of the Federal : rye Act), as amended, provides that the Board of hors each Year,of the Federal Reserve System, at least once shall order an examination of each Federal --rye Bank. Bo_ "In accordance with this provision of the law, the orders that at least one examination of each of the 1.94912 Federal Reserve Banks be made during the year tizte 'and the Board authorizes and directs you to instias 811d conduct such examinations at such time or times waY seem advisable in your judgment." Approved unanimously. 1111€ Letter to the Presidents of all Federal Reserve Banks reads follows: 4 cletit,"At the joint meeting of the Board and the Presitoara- °11- October 5, 1948, there was a discussion of the or to ')S PrOPOSai that member banks having a daily average atiotj: than 300 cash items payable in the territory of rolltf,:r Federal Reserve Bank or Branch be required to At th - 81101 items direct or sort and list them separately. to ha4t meeting the Board indicated that it would like clEttio , -ve oPportunity to consider further the recommenkove-fl - °I the Committee on Operations, which had been apbe' lar,4 hY the Conference of Presidents, that the proposal -ef fectuated. 1a.eLu1lice the Board's suggestion has been under conthe tIZLI-°/1 considerable progress has been made in reducing illteraTjer Of member banks which were not sending their 1),I'lrev --str1ct items direct, but, based on the most recent there were still 38 such banks. The Board has s,iltirev.-eviewed this subject and would like to have another 1, 1:m11ar to the one made covering the week of June 42t will, therefore, be appreciated if you will subto : m l'ePort covering the week January 24 - 29, 1949, as ber uanks which are depositing with your Head Office 2098 12/9/48 -6,Ert,1-1d branches (if any) a daily average of more than i) iu° items payable in the territory of another Federal : e serve Bank or Branch, such reports to include an ,37 ' 4LlYsis showing the number of such items that are B74 on banks located in Federal Reserve Bank or tharIch cities and the number of such country items at are Payable in 'split states'. It will also be appreciated if you will accompany Your reports with complete information relating to those s) if any, which you do not have reason to believe re ' cleared up by the end of 1949, including the tl:oris therefor and the views of your Bank in regard It is the thought of the Board that this proble should be disposed of by that time." 4 Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank or kehz °lid, reading as follows: 1948 "Reference is made to your letter of October 28, N)e 'in which you advised that it appears the actual excellses for 1948 at your head office and branches will ed budget estimates for the year as follows: Charlotte Baltimore Head 4141e,11-12 1 .11 Branch Branch Office plzrlalea Overhead $2,200 l'rovi ri : tIll e and Equipment 1,200 of Personnel $12,000 $5,500 Credit 3,850 3,750 16,5oo 44.4c37. and coin 12,000 30,000 11(44,1C , 5,100 12,000 *".1see - °11ection k,1 Co 01i.Th ,llection 1,200 -'ung al Aeency 4,o00 17,50o Itte.::Ii: would seem from the statements made in your that these increased expenditures are necessary ilidttiT4r0Priate notations to this effect are being made -Le Board's records." Approved unanimousl Secretay. t.
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