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Minutes of actions taken by the Board of Governors of the PederaI Reserve System on Wednesday, February 2, 1949. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman pro tem. Szymczak Draper Evans 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 Neral Reserve System on February 1, 1949, were approved unanimously. Memorandum dated January 26, 1949 from Mr. Thomas, Director or tha Division of Research and Statistics, recommending that Gordon )1*. G.04,_ -...mwood, a clerk in the Office of the Secretary, be transferred t° the Division of Research and Statistics as a research assistant, vith .0 change in his current basic annual salary of $3,225.601 efrectiw we as of the date on which he enters upon the performance of 401/ duties in the Central and Eastern European Section of the n of Research and Statistics. Approved unanimously. Memorandum dated January 31, 1949, from Mr. Vest, General Coin, —4e1, recommending that the basic annual salary of each of the tolio wing employees in the Legal Division be increased as shown belcv) effective February 60 1949: 2/2/49 -2- Name Jerome W. Shay Esther Knox Title Assistant Counsel Stenographer Proposed Increase From To $6795.40 2,799.24 2,874.48 Approved unanimously. Memorandum from Mr. Bethea, Director of the Division of Acialinistrative Services requesting authority to employ a key-punch °Perator in the Machine Tabulation Unit on a permanent basis at a 41arY of not to exceed $2,724 per annum, and an additional keyOperator on a temporary basis in the salary range for Group I r(3:r period of not to exceed six months. Approved unanimously. Telegram to Mt. Sidney A. Swensrud, President, Gulf Oil e°rPore.tion, Pittsburgh, Pennsylvania, reading as follows: "Board of Governors of Federal Reserve System has aPPointed you director of Pittsburgh Branch of Federal Reserve Bank of Cleveland for unexpired portion of term ending December 31, 1949, and will be pleased to have Your acceptance by collect telegram." Approved unanimously. Letter to Mr. John Oden Bennett, Maxim Radio, 320 South eelltral Avenue, Bartow, Florida, reading as follows: A "This refers to your letter of January 24, 1949, to the Federal Reserve Bank of Atlanta. "Mr. Olin G. Barfield, Jr., representative of the .rederal Reserve Bank of Atlanta and of this Board, states that when he called on you on January 20, 1949, he showed jrc)11 his identification card, on the back of which there 1 e his photograph, but that you refused to examine such : identification. 198 2/2/49 -3- "You have already received from Mr. Barfield a copy of Regulation W relating to Consumer Instalment Credit but another copy is enclosed herewith for convenient reference, and your attention is invited to section 2 on pages 3 and 4, section 8(a) on pages 11 and 12, and section 8(b) and footnote 3 on page 12. "In order that there my be no possibility of misunderstanding, the Board wishes to state again and make Perfectly clear what has been requested of you and is now being requested of you. It has not been requested and it is not now requested that you remove any papers or records from your place of business and produce such Papers or records, or copies thereof, at any other place. It is merely requested that you permit one or more representatives of this Board to make a routine inspection Of the books of account, records, and other papers which You are required to keep pursuant to section 8(a) of Regulation W. Any representative of the Board will be fully identified. He will remove nothing from your place Of business. "Congress has authorized the making of inspections of this kind and they are necessary in order to carry out the Provisions of the law. These routine inspections are made regularly by the Board's representatives in all sections Of the country and involve no reflection of any kind on the person whose records are inspected. "Please advise this Board by return mail whether you Will permit such inspection to be made." Approved unanimously. Letter to Mr. Harris, Vice President of the Detroit Branch or th e Federal Reserve Bank of Chicago, reading as follows: "Enclosed isa photostat of an article from the De cember 20, 1948 issue of 'Air Conditioning and ReNews', published, we understand, at 450 West Fort Street, Detroit 26, Michigan. "The statement regarding the rental-purchase interpretation appears to be obviously in error. "The editors may or may not wish to publish a correction with respect to the statement, but we would 3Preciate it if you would get in touch with them and 4fer whatever assistance may seem appropriate now or a 29 "in the future to aid in clarifying their understanding Of the interpretation or of other phases of the regulation in which they may be interested from time to time." Approved unanimously, together with a similar letter to Mr. Woolley, Vice President of the Federal Reserve BAnk of Kansas City, reading as follows: "This refers to your letter and enclosures of JanuarY 15, 1949, regarding your correspondence with Siebert & Willis, Inc., Wichita, Kansas, with respect to an article in the December 20, 1948 'Air Conditioning and Refrigeration News'. "We agree with you that the view expressed in the article is completely in error concerning the rentalpurchase interpretation of Regulation W to which it refers. "We are sending a copy of the article to the Detroit Branch of the Federal Reserve Bank of Chicago and requesting that it get in touch with the editors of the publication with a view to clarifying their understanding of the provisions of the regulation." Telegram to the Presidents of all Federal Reserve Banks readas follows: "One Federal Reserve Bank has informally suggested, vith a view to reducing difficulties experienced by member banks in adjusting their reserve positions, that weekly reserve computation period of central reserve and reserve city banks be changed to end on Wednesday. It has pointed out that weekly issues of Treasury bills are required to be paid for on Thursday, there is considerable uncertainty as to disposition of bills subscribed for by dealers, sometimes there are large loans to dealers and, since the proceeds of such loans are immediately paid to the Treasury, there is a resulting iMmediate loss of bank reserves. Please wire whether Your Bank would have any objection to the proposed Change and, if not, please suggest effective date of the change." Approved unanimously. 201, Letter to Mr. Sproul, President of the Federal Reserve of New York, reading as follows: "Receipt is acknowledged of Mr. Knoke's letter of January 27 informing the Board of the action taken With respect to a new account on your books for and in the name of the Central Bank of the Philippines. The Board approves the opening of the account as requested with the understanding that you will in due course, as you say, offer participation in the account to the other Federal Reserve Banks." Approved unanimously. 4131D1‘oved: Chairman pro tem.
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