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296 A meeting of the Board of Governors of the Federal Reserve System as held in Washington on iiednesday, February 24, 1943, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Evans Yr. 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 hereinatter r eferred to was taken by the Board: Feder 111%44. eerv,e The minutes of the meeting of the Board of Governors of the heserve System held on February 23, 1943, were approved unani- Letter to Mr. Drinnen, First Vice ?resident of the Federal ReXik of Philadelphia, reading as follows: ern "In accordance with your request, the Board of Govti0 aPProves the changes in the Personnel Classificapep, Plan of your Bank affecting positions in the Audit 194;rt oiment y as submitted with your letter of February 13, Approved unanimously. 114q, 'Of Letter to Mr. Fletcher, Vice President of the FederalReserve Cleveland, reading as follows: ter 'lin accordance with the request contained in your letot A°I February 18, 1943, the Board approves the appointment W. Ileee;:!!ed Winter as an assistant examiner for the Federal whi ilve Bank of Cleveland. Please advise us of the date upon U.S appointment becomes effective and also as to the rate. 297 2/24/43 -2- " TheIt has been noted that Mr. 'vlinter is indebted to Cleveland Trust Company, Cleveland, Ohio, a State mem7 1 bank, in an amount approximating $4,200, represented an FHA mortgage loan. Accordingly, the Board's apt4 1 n1 of the appointment is given with the understanding 1.au the indebtedness to the State member bank will be 'lquidated or financed through sources other than banks." Approved unanimously. Letter to Mr. Day, Chairman of the ?residents' Conference, l'ecleral Reserve Bank of San Francisco, reading as follows: "At the meeting of the Presidents of the Federal Reserve Banks with the Board of Governors on January 26 you reported that at the Presidents' Conference in Philadella the previous week a special committee was appointed ,,, etudy various aspects of loans under Regulation V, incb meL.I.ng cancellation and renegotiation of contracts and .0,e'ing capital requirements of industrial plants during t're re conversion period after the war. During the meet) 1 4 it was requested that the Board select one of its mem„'s to be associated with the committee. The Board is '''Leased to designate Mr. McKee to serve in this capacity. speci : have not been informed of the membership of the tio committee and, therefore, advice of the designa11 of Mr. McKee is being sent to you with the request that you ask the Chairman of the committee to communicate ectlY with Mr. McKee.” C Approved unanimously. terve Letter to Mr. Kennel, Assistant Counsel at the Federal Reallk of Boston, reading as follows: 1943 "This is with reference to your letter of February 8, 2 rttary with which you enclosed a copy of a letter dated Feb1943 from the Blackstone Valley Gas and Electric whi.,` 1,-Y2 Pawtucket, Rhode Island, concerning the problems aol;" are created under Regulation W when fuel dealers sell sta'a.fuel in charge accounts for delivery in summer months, of: .1 1-ng during May, with payment deferred until the start to heating season, namely, around November 1. You refer "e fact that the charge account is in default on the 10th ch411 °f the second month following the date of the fuel purse arid the merchant is Prohibited from selling any listed 298 2124/43 -3- On credit until the default has been cured. Your correspondent points out that this is a handicap on the proPeln to foster early deliveries of solid fuel so that the 1rden upon the transportation system will be spread over the entire year and concentrated to the utmost during the summer. "This same question arose shortly after Regulation W w's revised on May 6, 1942 and the charge account provilons were introduced. There was some confusion in the trade and certain of the merchants were for some time reticting credit for solid fuel as if it were a listed arB e-e. The matter was discussed with the Office of the flOi Coal Consumers Uounsel and the Office of Defense _ran sportation and a letter was written, coaies of which 1ere distributed widely. The interpretation of Regulation fnt ,:h?,•t aPpears on page 756 of the Federal Reserve Bulletin ktlIgust 1942 was taken from that letter. At the time the interested government agencies appeared to be satisfied grat Regulation VI was not standing in the way of the protiaM for encouraging early deliveries. Since the regulacaCn would have an effect upon the situation only in those frre where the customer wanted to buy a listed article the fuel dealer and the fuel had been purchased in a charge account which was in default and since few solid ers distribute listed articles, it was thought problem was unimportant. aD "It is quite desirable that the situation be examined at this time in the light of possible changes in conthelGns since last year. You have referred to the fact that res l'egulation is now well known and the dealers may feel a theTlsibility to call to the attention of their customers tact that they may find themselves hampered in the purfa2e of listed articles. To this point may be added the ,t1, 6 that the need for early deliveries is even more urgent 4 4 1 year and the fact that most people will feel that they will credit more this year. On the other hand, fuel dealers ertainly have fewer listed articles available for sale. eft. 'It is possible that whatever the actual prospective sir!! of the regulation this year, it may be considered de-Le to amend the regulation to except all credits for the " e, Purchase of fuel. This point could then be used in the sZa-ign to urge early purchases in charge accounts, in the cred ; aY as Amendment No. 6 concerning fuel conservation : s was used last summer. This will, of course, depend upon tere rile of the various government agencies ined in the problem. We shall want to take occasion to illn ''re into the situation when the opportunity arises. 299 214/43 -4: 14 the meantime, if you receive further inquiries or ob_ n additional information on the subject, we should like .0 be advised." Approved unanimously. Thereupon the meeting adjourned. /op Chairman.
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