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300 A meeting of the Board of Governors of the Federal Reserve Syst"as held in Washington on Thursday, February 28, 1946, at 2:00 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak 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 hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Ped eraa Resee System held on February 27, 1946, were approved unani- • Memorandum dated February 26, 1946, from Mr. Bethea, Director of the llivisionof Ad m inistrative Services, recommending, for the reasons .tell ill the that ti.vision,memorandum, that Mrs. Lyda Sanders, cafeteria helper in be granted leave without pay from February 1, 1946, to t14111 ' 9 1940 1. The memorandum stated, further, that Mrs. Sanders is a Pal'ticiParit, in the Board's Retirement Plan without death benefit and she, thereto will not make any contributions to the Retirement System durg the per, -Loa of leave without pay. Approved unanimously. or he eaaons Memorandum dated February 27, 1946, from Mr. Leonard, Director 'vision of Personnel Administration, recomuending that, for the 8tated in the memorandum, the temporary appointment of 21V46 -2- III' ' s Jane Pearson Roark, clerk-typist in that Division, be extended for a Period of six months, with no change in her present salary of $1,836 1111m1, effective as of the expiration of her present temporary " P aAnlle.4 -1-,,,44tment on February 28, 1946. The memorandum stated that Mrs. Roark is a member of the Federal Reserve Bank Retirement System. Approved unanimously. Letter to the Chairmen and Presidents of all Federal Reserve tanks reading as follows: st "Mr. Walter Wyatt, who has been a member of the Board's aff since 1917, and its General Counsel since 1922, has resigned effective February 28, 1946, to accept the position of Re Pot•ter of Decisions for the Supreme Court of the United States, ef fective March 1, 1946. Effective March 1, 1946, the designation of Mr. George B. Vest has been changed from General Attorney to General Counsel, liat of Mr. Leonard Townsend from Assistant General Attorney Assistant General Counsel." Approved unanimously. Letter to the Presidents and Federal Reserve Agents of all Pecies_ 1.41 Reserve Banks, except at Atlanta, reading as follows: "Referring to the Board's letter of January 14, 1946, a'2!re are attached a copy of a letter from the Fiscal Assist:,Secretary of the Treasury Department regarding the proto be followed in the destruction of unissued reserve me°eks of Federal Reserve notes, series 1928, and a confidential ermorandum entitled 'Special Procedure for Destruction of Fedthe Secretary of the Reserve Notes, Series - 1928' approved by in this memosignificance any of change Treasury. The only ra, from the one enclosed in the Board's letter of January ri''''1946, is the addition of the words 'but will make an examati°11 of the residual cash' at the end of paragraph 4 on page 2. ea,, "Advice will be appreciated as to whether in your opinion alt sfactory facilities for the destruction of the notes are ci4llable (a) at your Bank or (b) at some other place in your latY: It will also be appreciated if you will furnish us simi181s information for each of your branches, if any, at which unthslled stocks of Federal Reserve notes are held. If you feel such facilities are available, please furnish the Board, " accordance with the request contained in the February 13, 302 2128/46 -3- 446, letter of the Fiscal Assistant Secretary, the name of the person you recommend for appointment to the Committee, referred to in paragraph numbered 1 on page 3 of the enclosed •smorandum, to conduct the destruction of notes of your Bank." Approved unanimously. Letter to Mr. Kunz, Vice President and Cashier of the ellase L anl‘, New York, New reading as follows: "Reference is made to your letter of February 6, 1946 (2_45_ta) in which you refer to the limitations 4111130sed by Section XIII of Regulation K on the types of "rafts and bills of exchange which may be accepted by You bank. "You state that it is customary for French banks to accept drafts in the nature of straight finance paper a preferential interest rate and as the Regulation does not provide for your bank's acceptance of this type ' oil draft, its Paris Branch is at a distinct competitive sadvantage with other banks. You inquire whether the Board of Governors would be willing to modify Regulation • in order that your bank may provide its customers with ceptance facilities of the type mentioned. "The Board of Governors of the Federal Reserve System • interpose no objection to the Paris Branch of The tr se Bank engaging in the types of acceptance credit 1711:4sactions which are generally customary in France 4 such transactions are -within the limitations presc rib uy- the Federal Reserve Act and the other applicabie 1?d 1— st imitations of the Board's Regulation K. It is under/Zdy of course, that in effecting such transactions you be guided by the laws of France and by sound business nt and banking principles." L Approved unanimously, together with the following letter to Mr. Wiltse, Vice President of the Federal Reserve Bank of New York: is a letter to Vice President and Cashier z "Attached ?f The the Board of Governors will Chase Bank advising that interpose no objection to the Paris Branch of the bank 2/28/46 -4- engaging in the types of acceptance credit transactions which are generally customary in France when such transactions are within the limitations of the Federal Reserve Act and the other applicable limitations of the Board's Regulation K. Please deliver the letter to Mr. Kunz. A copy is enclosed for your files." Telegram to Mr. Johns, General Counsel and Secretary of the Federal Reserve Bank of Kansas City, reading as follows: "Retel February 27. Refer Amendment No. 5 to Regulation U effective July 161 1945 which substituted new provision for section 2(e). Loan secured by stock and to purchase registered stock directly from corporation is now subject to Regulation." Approved unanimously. Letter to Mr. Ruml, Chairman of the Federal Reserve Bank or New York, reading as follows: "The Board of Governors has received and noted Your letter of January 171 1946, with which was enc_losed a letter of corresponding date addressed to you ,7 President Sproul, regarding the examination of the oederal Reserve Bank of New York conducted by Federal ,Lessrve Examiner Millard as of November 17, 1945." Approved unanimously. Thereupon the meeting adjo Chairman.
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