The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
266 tem via 8 A meeting of the Board of Governors of the Federal Reserve Sys— held in Washington on Thursday, February 18, 1943, at 2:00 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chatham Szymczak McKee Evans Mr. Mr. Mr. Mr. The Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman action stated with respect to each of the matters herein— Nter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Fed— eral Re8erve System held on February 17, 1943, were approved unanimously. nl°rarldum dated today from. Mr. Morrill, recommending that Miss ?a111411e Warmke be appointed as a kitchen helper in the Secretary's Of— tiee °II a tempo rary basis for a period of not to exceed 60 days, with 41arY at the rate of $1,080 per annum, effective February 18, 1943. Approved unanimously. Letter to Mr. Fletcher, Vice President of the Federal Reserve 4ra of c leveland, reading as follows: ter :In accordance with the request contained in your let— 10, 1943, the Board approves the designation of °.L FebrUarY eral the f t -o llowing as special assistant examiners for the Fed— "eserve Bank of Cleveland: /lain Office Cincinnati Branch ,1,," Ar. 'v',adsworth O. Flaig k,. Goudreau C. M. Grayson " 1 Schmitz L. R. Sabo A. Winter Leroy Warning 2'07 2/18/43 -2"Main Office (Contld. C. Volz W. R. Smith G. L. Root Phil Eckert Alan Homans Robt. L. Smith Cincinnati Branch R. 0. Rauch Pittsburgh Branch James Henderson C. W. Martin G. M. Trowbridge W. C. Raubenstraw A. C. Adamson H. R. Gildersleeve the "APpropriate notations have been made in our records of names reported as deductions." Approved unanimously. Telegram to Mr. W. S. Byrne, General Manager of the Omaha lietropol , 'ltan Utilities District, Omaha, Nebraska, reading as follows: a ."Board of Governors of the Federal Reserve System has etinted You director of the Omaha Branch of the Federal thZ-rve Bank of Kansas City for the unexpired portion of the o ee year term ending December 31, 1945, and will be pleased t' have Your acceptance by collect telegram." W Approved unanimously. ba"h Letter to Mr. Gilbert, President of the Federal Reserve Bank of *eading as follows: Boa "Referring to your letter of February 112 1943, the char of Governors approves the reappointment of Messrs. T ftes R. Moore, E.- P. Simmons, Lawrence S. Pollock, Ira Acl(x)re, and Jake L. Hamon, as members of the Industrial rY Committee for the Eleventh Federal Reserve Dis1 t° serve for terms of one year each beginning March 1943.11 ApProved unanimously. Lett er prepared for the signature of Mr. Ransom to Mr. Davis, Aeet, ' lent of the Federd Reserve Bank of St. Louis, reading as follows: staff has called to my attention the case of Max to illrum, a jeweler in Little Rock, Arkansas, who has failed Parer„! a Registration Statement under Regulation 1, and apbeAlm7"4-Y has entirely disregarded its provisions. Mr. Green8 CiefenSe is that he had never heard of Regulation V or 268 2/18/43 -3"credit control of any kind. As indicated in the letter from . Lewis to Mx. Dreibelbis, this of course is hard to r Mr. "elieve. 0, "As you know, the Board has been proceeding on a program ' t enforcement of RegulrtionW which is to a considerable ex : tent o of an educational nature although it contemplates that in ?tstanding cases of willful disregard of the regulation steps Tull be taken to inflict appropriate penalties for violations. f'_ie steps which might be taken are of varying degrees ranging pfDT fine or imprisonment after criminal prosecution to ad : custrative requirements that outstrnding contracts made in it latIon of the regulation be brought into conformity with pas requirements. We have been reluctant to request the Deas ent of Justice to institute criminal proceedings except t4 ' -Last resort and after all other steps to obtain correcbfa have been exhausted. It seems to me that in the Greenorn2 .ase there are at least five possible approaches (some tO' . ," 1 .ch -L might be combined) which might be followed in order ' ring about a correction. "1. Advise Greenbaum that he should file a Registration Statement and that he must take all P?ssible steps to bring any outstanding transactl°fls into conformity with the requirements of the r?gulation and report to the Federal Reserve Bank hin a soecified oeriod as to the progress he nas made in correcting such outstanding transactions; n Z "2. Accept Greenbaum's Registration Statement and at the end of a specified period make another examination. of his business to determine whether he was conforming with the regulation; "3. Accept Greenbauml s Registration State: roil nt.on condition that he consent to the closing hls atore for a specified period; "4. Attempt to work out with the Department ?I' Justice a program under which its agents would •flvestigate Greenbaum for the purPose of impresslng on him the possible criminal liabilities withcut necessarily following it up with prosecution; ti "5- Refer the case to the Department of Jusce for criminal prosecution for failure to register. ctisr : Vie cannot afford to let our enforcement program fall into willT,11.1'e and any feeling to become widespread that penalties Gree :'be inflicted in appropriate cases. On the other hand, t"4111t 8 establishment is a comparatively small one and It 5ee 1118 t ° me that it would be unfortunate if it could be made to 269 2118/43 -14 dPer that we were attempting to inflict heavy criminal P:enalties in individual cases which it could be argued are Paratively insignificant from the standpoint of the whole aegulati on w program. ,, "I shall appreciate it if you will review this case with interested members of your staff and let me know what you l!el would be the best procedure to follow in this case in !.1:1 the circumstances. We have received helpful suggestions 12m. Messrs. Lewis . and Carstarphen that indicate careful study understanding on their Dart. My purpose in writing you is t, in addition, your own reaction to the problem as you fmn experience the over-all aspects that must be conBider ed by the Board in deciding such questions." gor Approved unanimously. Thereupon the meeting adjourned. ) 111 Secretary. Ap
@FedFRASER