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261. ten, A meeting of the Board of Governors of the Federal Reserve Sysheld in Washington on Wednesday, February 17, 1943, at 3:00 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters herein41ter re ferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Fed- el‘4.1 Re serve System held on February 16, 1943, were approved unanimously. tier!' orandum dated February 8, 1943, from Mr. Paulger, Chief of the 1011 of Examinations, recommending that, effective as of the date 11Port he enters upon the performance of his duties, Karl P. Wendt • -vP(anted as an Assistant Federal Reserve Examiner on a temporary baaie for n_ c41 indefinite period, with basic salary at the rate of 63,000 'and with official headquarters at Cleveland, Ohio. By unanimous vote, Ur. Karl P. Wendt was appointed on a temporary basis for an indefinite period as an examiner to examine Federal Reserve Banks, member banks of the Federal Reserve System, and corporations operating under the provisions of Sections 25 and 25(a) of the Federal Reserve Act, for all purposes of the Federal Reserve Act and of all other acts of Congress pertaining to examinations made by, for, or under the direction of the Board of Governors of the Federal Reserve System, and was designated as an Assistant Federal Reserve 262 2/17/43 -2Examiner, with official headquarters at Cleveland, Ohio, and with basic salary at the rate of $3,000 per annum, all effective as of the date upon which he enters upon the performance of his duties. the T14 Memorandum dated February 11, 1943, from Mr. Paulger, Chief of ion of Examinations, recommending that, effective as of the date 11Pcm which he enters upon the performance of his duties after haybe Satisfactorily the usual physical examination, James L. Hardin aPP°inted as an Assistant Federal Reserve Examiner, with basic salary al ta,the _ rate of $3,000 per um, and with official headquarters at :lan aeorgia. By unanimous vote, Mr. James L. Hardin was appointed an examiner to examine Federal Reserve Banks, member banks of the Federal Reserve System, and corporations operating under the provisions of Sections25 and 25(a) of the Federal heserve Act, for all purposes of the Federal Reserve Act and of all other acts of Congress pertaining to examinations made by, for, or under the direction of the Board of Governors of the Federal Reserve System, and was designated as an Assistant Federal Reserve Examiner, with official headquarters at Atlanta, Georgia, and with basic salary at the rate of $3,000 per annum all effective as of the date upon which he enters upon the performance of his duties after having passed satisfactorily the usual Physical examination. Letter to the St. Joe Paper Company, Jacksonville, Florida, read4 r°11ows. the 8:1his refers to a recent request by Mr. Edward Ball that nese determine that your company is not engaged as a busi°1ding the stock of, or managing or controlling banks. " 263 2/17/43 -3"The trol 1 Board understands that your company owns or con02,038 of the 144,000 outstanding shares of stock of The Florida National Bank and Trust Comoany at Miami, Miami, Florida, but does not own or control any stock of, or manage r control, any other banking institution. "In view of these facts, the Board has determined that Your comoamy is not engaged, directly or indirectly, as a bl&less in holding the stock of, or managing or controlling, ;T4es banking associations, savings banks, or trust companies, Within meaning of section 2(c) of the Banking Act of 1933, and, accordingly, your company is not a holding 2:PanYaffiliate for any purposes other than those of section -14 of the Federal Reserve Act. co„ If, however, your company should at any time own or 'rol a Control, substantial portion of the stock of, or manage or a more than one banking institution, this matter should °1111 be submitted to the Board for its determination. The Board; reserves the right to make a further determination at Y time on the basis of the then existing facts:' Approved unanimously, together with the following letter to Mr. Clark, Vice President of the Federal Reserve Bank of Atlanta: and "Reference is made to previous correspondence between you ti , 1 31r!rnor Ransomiwith respect to the status of Florida NaTh:---, Duilding Corporation as a holding company affiliate of Florida National Bank and Trust Company at Miami, Miami, '°rida ci, "Subsequent to that correspondence, Mr. Edward Ball itTed at our offices to discuss this matter; and, from the Bui lTation furnished by him, it appears that Florida National Leo '4-11g Corporation was merged with St. Joe Paper Company on ea4 : 411, 31, 1942, with the result that the latter company beanci;une holding company affiliate of The Florida National Bank Company at Miami. Copies of papers which Kr. Ball le Wi t viTith us are enclosed. Pap, lir- Ball requested that the Board determine that St. Joe or.-1 ;e°mPany is not engaged as a business in holding the stock naging or controlling, banks. Enclosed herewith is the penv-',,,rd i s letter of this date addressed to St. Joe Paper Comthli;,a'vising it that the desired determination has been made. be 1 8 You have some reason to believe that this matter should ter -cOnsidered by the Board, please transmit the enclosealetwiec,_ Othervdse_, advise us concerning any further information ofYcu believe should be considered by the Board. A copy 1.etter to St. Joe Paper Company also is enclosed for yo1% '( filee.n 264 2/17/43 -4Letter to Honorable Arthur H. Vandenberg, United States Senate, re4ding as follows: "We have your note of February 11 referring to us a letof February 2 (with enclosures) from Mr. J. H. Creighton, s Director of Social Research, Michigan Association of c'a-L1 Loan Companies, Lansing, Michigan. It relates to the ardi s consumer credit regulation, Regulation W. "This regulation, as you will recall, has been in effect 1."ce SePtember 1, 1941, and has applied since the beginning ,[ Joth to instalment selling and to instalment lending. Since -6, 1942, it has applied also to charge accounts and to "s not payable in instalments but in a single lump sum, Tb There have been no significant changes in the regulation th e that time, and the impression of your correspondent 426 further restrictions are contemplated in the near fuuktre is erroneous. on J:That impression seems to have arisen from the fact that 1 the Board addressed a letter to about 15 national tr s_te associations reauesting views and information with reeu et t° a difficult technical oroblem with which we have been by ggling for some time. The problem relates to the extension is! .i creditor of additional instalment credit to a person who iadY unc indebted to him. Men a problem of this kind is az study, it is our practice, before we attempt to reach pl es,teision in the matter, to get as much enlightenment as J-e• The inquiry in question was in line with this prac" tiog ciatl end You will be interested to know that the trade assor .°118 addressed have sent us many interesting and helpful ePlie8. ter A , r a str "This regulation, of course is only one of the many Govmeasures that have been adopted or are being adopted in combat the powerful inflationary forces that have been set i( L tion by the war. Taken by itself, as your correspondent extra the consumer credit regulation certainly cannot eliminate more nger of inflation. Its function is to assist other and t. 4-1flPortant measures directed towards that end, such as taxthe 11,. anci the fixing of price ceilings, by helping to keep down of the so-called 'inflationary gap'. you v,,e are returning to you herewith Mr. Creighton's letter to Its enclosures. We have had a letter on this matter e61Y from Mr. Creighton and have replied to it at length." Approved unanimously. 265 2/17/43 -5Memorandum dated February 1, 1943, from Mr. Carpenter, Assistt SecretarY, submitting drafts of entries covering policy actions take„ " 1°-.7 the Board during the year 1942 for inclusion in the record 1"ained by the Board in accordance with the provisions of the last Parla'graPh of section 10 of the Federal Reserve Act. The drafts of entries were approved unanimously. Memorandum dated February 15, 1943, from Mr. Leonard, Director ot the D. lvlsion of Personnel Administration, submitting a memorandum clat ed. ebruary 12 from the Bureau of the Budget advising that the Presicient d eslred that Washington's Birthday be considered a work day in all Pecierai departments and agencies. It was agreed unanimously that Washington's Birthday would be a full work day for the Board's organization. Thereupon the meeting adjourned. avILti, o ecretary. Chairman.
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