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295 A meeting of the Board of Governors of the Federal Reserve 8Ystem was held in Washington on Wednesday, February 27, 1946, at 10:30 a. m, PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymezak McKee Draper Evans Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— ter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pedera-1- Reserve System held on February 261 1946, were approved 141,411 Ilemcrandum dated February 26, 1946, from Mr. Bethea, Director clt the Division of Administrative Services, recommending that Mrs. Mary E. McGuire be appointed as a cafeteria helper in that Division a teillPorary basis for a period not to exceed two months, with 41a-1.946. at the rate of 41,440 per annum, effective February 27, The memorandum stated that it was not contemplated that Men • would become a member of the retirement system. Approved unanimously. kielll'crandum dated February 26, 1946, from Mr. Bethea, Director ) t (4 f'oes/ 2/27/46 I' -2- the indivision of Administrative Services, recommending that Audrey Phillips, a cafeteria helper in that Division, be "Parated from service effective as of the close of business February 23, 1946. Approved unanimously. Telegram to Mr. Gidney, President of the Federal Reserve 884c of Cleveland, reading as follows: "Board of Governors approves appointment of SamW. Emerson as member of Industrial Advisory rtmittee for term of one year beginning March 1, 4.946, in accordance with action of Board of Directors as reported your letter February 20, 1946." Approved unanimously. Letter to Mr. Leach, President of the Federal Reserve Bank chm°nd, reading as follows: "In view of the circumstances described in Y°11r letter of February 19, 1946, the Board of Gov!Mors will interpose no objection to the retention 14 the service of your Bank until December 31, 1946, , ()f f !F. P. S. Sinclair and Mrs. Mary M. Norwood, both wnom attained age 65 prior to January 1, 1946." Approved unanimously. trig Letter to "The Farmers State Bank," Brookston, Indiana, readaa follows: "The Board is glad to learn that you have ZPleted all arrangements for the admission of your takk to membership in the Federal Reserve System and Pleasure in transmitting herewith a formal cerate of your membership. acknowledge receipt of will be appreciated if you will this certificate." Approved unanimously. 237 W27/46 Letter to the Federal Deposit Insurance Corporation reading a8 f011OWS: "Pursuant to the provisions of section 12B of the :!deral 1 Reserve Act, as amended, the Board of Governors of re Federal Reserve System hereby certifies that The 42rmers State Bank, Brookston, Indiana became a member of ' lIne Federal Reserve System on February 23, 1946 and is tr a member of the System. The Board of Governors of i,e Federal Reserve System further hereby certifies that, onnection with the admission of such bank to memberin the Federal Reserve System, consideration was (4erl to the following factors enumerated in subsection of section 12B of the Federal Reserve Act: "1. The financial history and condition of the bank, "2. The adequacy of its capital structure, ”3. Its future earnings prospects, "4. The general character of its management, "5. The convenience and needs of the community to be served by the bank, and 6. Whether or not its corporate powers are consistent with the purposes of section 12B of the Federal Reserve Act." gi lP Approved unanimously. Letter to Mr. T. F. Kelly, Government Coordinator for The Hoover Coqpany, North Canton, Ohio, reading as follows: "This refers to your letters dated November 12, 1945, 'February February 6, 1946, reouesting that Regulation be ant ; amended to permit delivery of a listed article in or i l,Ication of an instalment sale for a trial period Illenturee days' without the reouirement of a down payas now provided in section 4(e). zion r 7rieou state in effect that the present proviyou esults in hardship to you because it prohibits t zo ll'om leaving a vacuum cleaner with a sales prospect 6hat she might show it to her husband and get his 2J8 2/27/ 46 -41 aPproval for purchasing.' "The Board appreciates how the present regulation result in preventing a sale to a particular customer because because she would not be willing to make the required down Payment even though it were made entirely clear to her that she was not obligated to make the purchase and that the paylent would be returned if she should decide not to buy. HonY8r, as long as present conditions continue in which inflaAl°11arY Pressures are strong and manufacturers of consumers' 1,1rable goods are able to sell all the goods they can produce, IT Board cannot escape the conclusion that to relax the regation in the manner proposed would be against the public in terest. "The Board must also consider that such relaxation I-ght have to be applied to other goods and it would be difcult to fix a trial period that would be generally satisd1 Furthermore, the change would raise administrative 4.1culties which would be more burdensome both to Regisandir the administrative agencies than would be justied by any benefit that might result. 'Accordingly, the Board has decided against making the .4 ,mendment you request at this time. We regret the delay 1 13ergiving you an answer but, as we suggested to you in Novemet,'„ Mu' proposal has necessitated considerable time for be"Y and consultation. Further careful consideration will progl-ven to the question in our continuing studies of the *visions of Regulation W." Z T P,"Y. Approved unanimously. 1181IIorandum dated February 25, 1946, from Mr. Paulger, Director ot the D. Vision of Examjnations, submitting vouchers for reimburse°r travel expenses incurred by Robert J. Schoenhoff and Barker, Assistant Federal Reserve Examiners, while on official bIlette 88- The memorandum stated that the vouchers were being subI4itted to the Board because, due to housing problems, it was neces°I" Messrs. Schoenhoff and Barker to incur telephone and telegraPhin - expenses in securing accommodations, and recommending that 2.99 2/27/46 -5— these expenses in the amounts of $4.96 and ,.'2.58 be approved. Approved unanimously. Memorandum dated February 261 1946, from Mr. Hooff, Attorn —eY, recommending that there be published in the March 1.8811e of the Federal Reserve Bulletin statements in the form ttach„ ' 4 to the memorandum with respect to the following subjects, Consmmer Credit Suspension of License and Consent Injunction Suit Regarding Removal of Bank Directors Foreign Funds Control Treasury Regulations Treasury Department Releases Approved unanimously. Thereupon the meeting Secretary. 1",aired : Chairman.
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