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74'1
Minutes of actions taken by the Eoard of Governors of the
Feder
'
a Reserve :System onThurfx.", February ea, 19)2. The .73,- ard met
inexecutive cession in the BoLrc ;zoom at 10:30 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Fzymczak
Evans
V.Irdallan
Powell
,Mills
Robertson
At the conclusion of the executive
2.eSei01
the followin
teltbe,
'
8 of the staff joined the meeting:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Carpenter, E'c:-1 LL%t Lecretary
Merman,
'unut secretary
Kenyon,
'-tant to the Board
Thurston,
Riefler, ,I,Li.L,tFnt to the Chairman
Thomas, Economic ,-Idviser to the Board
Leonard, Direc-cor„ Division of Bank
Operations
Vest, General Counsel
Young, Director, Division of
Research and t,Itistics
Loan, Director, Division of
ExamLnationtChase, :.suihtnnt Solicitor
113i,el
1
tnit C
Hackle,s,-, a
'onof
Hostrup, cshistaat Di , cu
Examinations
Youngdahl, Chief, Gov(_ n _ent FinaflCO
'arch and
Section, DivIhien of
Statistics
iminer,
Thompson, 17(IderL1 iv)Eorvt:
Division of 1,,xnnIuLtionh
,.nts In the
Thomas presented a report on recent
..11rne3:1t securities market which was followed ty a
t'Uring the foregoing discussion Mr. ;Jaen
discussion.
Director) Division of
2/21/72
—2—
Person.riel
ArILinistration, joined the meeting.
Telegrams to the Federal he serve F,nks of Boston, Hew York, Philaa) Atlanta, Chicago, Et. Louis, and
carci
nn Tncisco stating that the
approves the establishment without change
arlIcs cf Boston and EA. Louis on Yeruary 1,
y the Fedcr-±L1 ;.eserve
the Federal 7:Hserve Bank
l'ranoisco on February 19, by the Federal Reberve Bank of Atlanta en
''.ebrile..ry 20,
1972, and by the Federal Reserve Tanks of New York, PhLladelphia
411c1 Chicago today of the rates of discount and purci.
scheduie.
Approved unanimousl.
President, Federal hescrv
Letter to
Mr. Bryan,
Ilk 0
4g as
follows:
"The Board of Governors approves the ;)ayment of
to Mr. John L. Liles, Jr., as Vice President of
Atlanta for the 17eriod March
Federal Reserve Bank of
41 1952, through May 31, 1972, at the rate ofy9,000 per
torr14111, Which is the rate approved 1:y the Board of Direcas indicated :in your telegram of February g, 1972,
;
ea
Y°11r letter of February 1."
Approved. unanimously.
At this point Messrs. Allen and Youngdahl withdrew from the
etit€
Before this meeting there had been sent to each itiefter of the
1108.rci
coPY of a memorandum dated February 19, 197, from Mr. Vest
othtli
-11E the principal provisions of "rill H.T.
5C4, the Ball
Holding
'Act of 1952, Introduced by Chairman cpence, of the House PanMng
2/21/52
and
-3-
Currency
CommIttee, on February 7.
The memoranc",
commented on
sc)nle °f the
differences between this bill and similar 3e,(71.,1ation under
e°11sid.eration in the Senate Ban :ft
and Currency Committee 4n 19')C.
There
84 had been sent to
the request of Mr. i- -vLne
each member of the 72oard
a.
e°13Y Of a memorandum dated February
21: 19;5^, rrom Mr. loan regarding
certa.in f
eatures of the new 111.13.
At the
request of Mr. Evans, Mr. -vest commented on the
°I' bill
04
,i-ovis;ons
comparing them with the provisions of two other banh
4°1c1111e; c°111ParVbills, E. 2318, which was recommended by the Board in
1949, and s. 35. 7,
4
which was introduced by Chairman iol-,ertson, of the
lankille and Currency Committee, in 19X,.
11"111 in
general might be acee ,fted
Ee else stated that the
the 'Board, but that if any chances
t0 be Proposed, there were a number of .2crienerts which the Board
vitsh to suggest.
He then outlined bref1y the substance of what he
ree
'
rclecl. as
the more imp
these amenthaen ts.
ortant of
At the oonclusjon of Mr. Vest's summary Chalritan Mrrtin stated
'Ile
4.
hadrio,, yet had an opportunit: to study the memorandum from Mr.
ell arid
suegested that further discussion of the bill be deferred until
of the Board to he held on Monday, February 21), 19)2.
This suggestion was a7croved
unanimously.
At this point all of the nembers of the staff with the exception
kessre.
Carpenter, Sherman, and Kenyon withdrew, and the action stated
'Z(V9
2/21/52
-4-
vith respect
to each of the matters hereinafter referred to was taleu
13:7the Board:
Minutes of actions taken ly the Board of Governors of the Federal
Ve SYstem
on Felumary 20, 195, were approved unanimously.
Telegram to Mr. Olson, Vice President, Federal Reserve Bank of
Chica
'red inC as follows:
y
'Lcilile stated in
"Reurtel of February 1. Under ori,
‘(' definition of inonresidentlal structure' in section
t r) ef Regulation ). does not include a structure more
0 an eightY per cent of the floor space of which is used
(lesiEned for use in the 'staLiuL, developing and i i.'lt.11a0f notion pictures' and, therefore, credit for the
of such construction is not subject to R,
4
Approved unanimously.
Letter to Mr. Warner, Manager, Credit Department scl Discount
1)e artnie
46, Federal Reserve Bank of New York, reading as folJows:
"This refers to your telegram of Fel)runry 5, l9)2, re10 --ng the question whether, under the standard "orm of Vacarl Cuarantee agreement, the ruaranteed percentage of 'Dny
thc
erljea and unpaid commitment fee should be included in
r,L aMount of any Purchase "hy a Federal Reserve Bank as
1 cal agent
of the guarantor.
"Section
3 of the form of Fudranteo agreement Provides
that in
the event of any purchase, the amount which the
;.::ezx3ntor shall pay shall be the face amount of tire portion
lathe unPaid principal amount of the obligation so purIii.Xd, Plus all unpaid accrued interest on such portion,
8.PPr0priate adjustment for guarantee fees; no reference
Illade to payment of the amount of the guaranteed portion
olaralV UnPaid accrued commitment fee. ,,ccordinly, it is
c.h, *Vi ew that the amount of any such unpaid commitment fees
'1 be excluded in determining the amot,r,t to he paid by
the
CUarantor in the event of any purchase.
1
2/21/32
s
.ection 2 of the Euarantee agreement relating to the shar14e: of losses and expenses upon final setticAcnt, refers
°IllY to 2osses of '-orincil,a1 L,nd interest' aTi., consequently,
%crued
and unpaid commitment fees should r,1 , be excluded
ermini% the guarantor's share of lo
on final
settlement.
"We haveinfornally discussed this matter with the DeDartment Of
Defense and we have 'seen advised that, at a recant meeting of the
Contract Finance Committee of the Department
which this question was raised, the Committee expressed full
'greement with the views stated al)oire."
Approved unanimously.
Order suspending license under fieL,ulation
Consumer Credit,
111"sllEtrea
Pursuant to action taken by the Board on February 11, 1952,
remi
-4C as
follows:
"UN1TLD STATES OF A1EBIC2-:
1.,
1 TIM BOARD OF GOVERNORS OF TEE FEDJaL
re atter of
X
IsaloDrIRSCIMER) BENJAMIN KITiSCHEER, and
KIRSCHEER, d.b.a.
1717
11 BROTHERS, a partnership
T3rth 54th Street
Pennsylvan5a
ORDER EUSFENDING LICEIE-E Un12,
4fieroll Fei;ruary 20, 1952, the Board of Governors of the Federal
SYsten ordered that a hearing The held to determine
€trid. ler Or not the license of Jacob Kirschner, Benjamin Kirschner
trisa(1°re Kirschner, doinc IlustnesL EE. Kirschner :Brothers, a
erebil), hereinafter severally called the Registrant, should
e ta,
IL
''' Perided and
'
krrollOn Chruary
20, 1952, said Registrant, by its counsel, :ier5y
e °1-1 and Bernard S. Robinson, filed with the Board its 'aivor
ticp.,ne: and Consent to Entry of Order Suspending Registrant'
-,iee
and
m
to. 11 1-1e :Board, having considered the .viaivcr of dearinz and Consent
-gY of Order Suspending ReFistrant's License, aforesaid,
the Dfense
Defense
of ecton
ORDERS) under authority:=
-e
'
ion Act of 1950:
2/21/52
o
-6-
"1.
That the license of said Ref2;1Arant issued pursuant
suspended for fif/4- be and the sane is hereby
both dates
1952,
10,
MErch
2,
to
February
rom
recceTi—fie; Provid.ed, that this order shall not prohibit the
;
,
-P Of anY payments on existing obligations, or the raakIna-4
ez„.71'PaYments of any obligations, including obligations to
'°Yees for salaries and
waL'es•
Repan 2. Any terms used in t'ri,Ts order that are defined in
therein given them,
shall have the rnf
order of the "Board of Governors of the Federal Reser ye
syst
era this 21st day of February 1952.
pled) S. R. Carpenter,
Secretary."
Re
teen
U1ation
proved unai iAously.
@FedFRASER