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110 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, February 12, 1948. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman pro tem Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the Pederal Reserve System on February 10, 1948, were approved unani- 111011817. Memorandum dated February 10, 1948, from Mr. Thomas, Director of the Division of Research and Statistics, recommending that 4.. resignation of Mrs. Melba M. Coone, a clerk in that Di11, be ' Elt accepted to be effective, in accordance with her request, the close of business February 20, 1948, with the understanding that a 11111113 sum payment would be made for annual leave remaining to he r c redit as of that date. Approved unanimously. Letter dated February 11, to Mr. Leedy, President of the • Reserve Bank of Kansas City, reading as follows: "This refers to your letter of January 30, 1948, • ten in reply to the Board's letter of January 20, egarding the operation of your cafeteria. 111 2/12/48 -2- 'It is assumed that the Presidents' Conference Su bcommittee on Personnel Classification and Job Evaluation will submit its report on cafeteria operations in time to have it considered at the forth?oming Presidents' Conference. In the circumstances it will be satisfactory to the Board to defer changing Y°U' 1 practice of serving free lunches to service employees until after the Board has considered the report of the Committee and the action of the Presidents' uonference thereon." Approved unanimously. Letter to the Honorable Maple T. Earl, Chairman, Federal NP°sit Insurance Corporation, reading as follows: "Thank you for your advice that Supervising Exifler Eugene R. Gover has been transferred from the t Zth FDIC District, with headquarters in St. Louis, the Eighth District, with headquarters in Chicago. we are sure that Mr. Gover can count on the seane cooperation from, and enjoy the same friendly elationships with, the Federal Reserve Bank of Chicago s did his predecessor, Mr. Pitman, and as existed beWeen Mr. Gover himself and the Federal Reserve Bank of St. Louis." r f Z Approved unanimously. Letter to the Honorable Maple T. Harl, Chairman, Federal te P°sit I nsurance Corporation, reading as follows: h "Reference is made to your letter of February 5, , 1 or8) and the subsequent conversation between Governor '4-Yton and Mr. Sailor, Chief of your Division of Exion, requesting the written consent of the Board Governors to the making of an investigation by ex;liners for the Federal Deposit Insurance Corporation 14, the Merchants Bank of Kansas City, Kansas City, -4J-86°Uri, a State member bank. It is understood that the investigation is defor the sole purpose of clarifying certain aspects 172 2/12/48 -3 of transactions reported to have been entered in the account of Bank of Odessa, Odessa, Missouri, with Merchants Bank of Kansas City. "The Board has been informed by the Federal Reserve Bank of Kansas City that an examination of the lerchants Bank of Kansas City, commenced by Federal eserve Bank examiners February 5, 1948, is still in ipzrogress. In the light of these circumstances, the , J.:?ard has requested the Federal Reserve Bank of Kansas City to have its representatives develop for you from the books and records of the Merchants Bank the indesired. It is understood that this arrangement is satisfactory and that Mr. Sailor will request your representative to get in touch with Mr. L. F. Mills, Chief .ariliner, Federal Reserve Bank of Kansas City, and utline to him the nature of the information which he desires. "Mr. Mills has been informed of the situation and the Federal Reserve Bank of Kansas City will, I am sure, cooperate fully with you in this matter." I Approved unanimously. Letter to Mr. Ralph H. Taylor, Taylor Building, Haverhill, MEts, 'utchusetts, reading as follows: "This is in reply to your letter of February 6, 1948) referring to the Board's regulation of consumer coredit and inquiring whether there is any Federal law ' 01 regulation that requires down payments to be made 11 the Purchase of residential buildings. tem}, "This Board's Regulation W, effective from Sep111 1, 1941 to November 1, 1947 under authority of -,11zsiocecutive Order No. 8843, required minimum down pay„nts on certain consumer durable goods, including ' 1.'''Lomobiles, but did not regulate credit for complete residential buildings. The enclosed copy shows the c°1111 in which the regulation was in effect from De,!Mber 1, 1946 to November 1, 1947. If we correctly erstand your question, we believe you will find at it was not affected by the regulation. r 173 -4"We do not know of any generally applicable Federal statute or regulation that requires down payments 211 the purchase of residential property in all cases. There are Federal requirements that apply in certain cir cumstances, but we doubt that they are the kind in hich you are interested. For example, the Federal : trserve Act provides, in section 24 (U.S.C., Title 371) that no national bank shall make a real etstate loan exceeding 50 per cent (60 per cent for cers'in amortized loans) of the appraised value of the real estate offered as security. This restriction does not : 13PlY to real estate loans that are insured under cer; ' ,ain provisions of the National Housing Act, the Bankad-Jones Farm Tenant Act, or the Servicemen's Readjustment Act. "There are, of course, certain requirements that have. + be met in connection with the insurance of - -0 Dior+-gages under programs of the Federal Housing Administration and of the Veterans Administration. If ?u are interested in these insurance requirements, ,e suggest that you write to these agencies for this 1.nr ormation." Approved unanimously. 41'''oyed, Chairman pro tem.
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