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Minutes of actions taken by the Board of Governors of the Pederal Reserve System on Wednesday, February 4, 1953. The Board met it the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Evans Vardaman Mills Robertson Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Thurston, Assistant to the Board Vest, General Counsel Cherry, Legislative Counsel Wayne, Vice President, Federal Reserve Bank of Richmond Mr. Cherry stated that in accordance with earlier arrangements Of 'which the Board was advised, Mr. Wayne and other representatives of tila Pederal Reserve Bank of Richmond presented to members of the House 11441 " 11g and Currency Committee yesterday the flannel-board presentation "titled "Your Money's Worth", that the presentation was very well recelled/ and that Senator Bennett, of Utah, who was the only member of the Senate Banking and Currency Committee present, stated that he would Itbe to have the presentation given again during the hearings before the Set e Committee on the Defense Controls Bill, S. 753) introduced by 844141tOr CaPehart, of Indians, on February 2, 1953. It was Senator Bennett's 1111.441tion, Mt. Cherry said/ to suggest to Senator Capehart that such an Ellitettlgenlent be made. In the ensuing discussion, Mr. Wayne expreased the opinion that 241 2/4/53 -2- the Presentation was designed as a means of explaining the organization and monetary functions of the Federal Reserve System, that if it were Presented in connection with the defense controls bill or any other specific legislation it might raise questions which the representatives of the Federal Reserve Bank would not be in a position to answer because they could not speak for the System or the Board of Governors, and that it would be desirable, if possible, to avoid a request for the presentation for any purpose other than for which it was originally designed to Serve Members of the Board were in agreement with this position and *. Cherry was asked to contact Senator Bennett and to suggest, for the ' l eaeons stated above, that the presentation be made before the members Of the Senate Banking and Currency Committee without reference to any 8Pecific legislation. Secretary's Note: Mr. Cherry subsequently reported that Senator Bennett was entirely agreeable to the suggestion and that arrangements had been made for a presentation to the Senate Banking and Currency Committee, and possibly other members of the Senate, on Friday, February 6, 1953. Chairman Martin stated that Kenton R. Cravens, of the American 114111cere Association, had importuned him to speak at the meeting of the Ilistaiment credit Commission of the Association to be held in Chicago 2/4/53 -3- the latter part of March and that he (Chairman Martin) would like to have the views of the Board as to whether he should accept the invitation. The matter was discussed in the light of whether the Chairman of the Board should speak before a Division of the American Bankers Associatical or only before the Executive Council or the entire Association, whether the meeting of the Instalment Credit Commission was the proper forum te'r any statement by the Chairman or the Board on the question of consumer credit, and whether it would be more effective if a formal statement on the sUbject were issued by the Board from Washington. During the discussion, Chairman Martin stated that it was exPeHeteld that hearings on the Defense Controls Bill, S. 753, would begin °la Zebruary 16 or 17, that the bill provided for the continuation of the .710811 Program, for stand-by authority for the regulation of consumer 1418t4Ament and real estate credit, and for authority to revive the '1°1 tarY credit restraint program, and that undoubtedly he would be a8ked to testify on the bill. There was a discussion as to what the position of the Board should be th respect to the renewal of these authorities and the form the legis- 14tion should take, including the question whether the authority should be Vested in the Board or elsewhere and what provisions should be made tf:It enforcement, particularly of a consumer credit regulation. No conclu- 111048 were reached but it was understood that the members of the Board would 2/4/53 -4- continue to study the matter and that it would be given further consideration when an analysis of the Capehart bill was available. The meeting then adjourned. During the day the following addi- ti°nal actions were taken by the Board, with all of the members present: Minutes of actions taken by the Board of Governors of the Federal Reserve System on February 3, 1953, were approved unanimously. Letter to Mr. Crane, Federal Reserve Agent, Federal Reserve Bank or New York, reading as follows: "In accordance with the request contained in your letter of January 26, 1953, the Board of Governors approves the apPointment of Mr. George H. Reitze as Alternate Assistant Federal Reserve Agent at his present salary of $`),310 per annum. "This approval is given with the understanding that Mr. Reitze will be placed upon the Federal Reserve Agent's pay roll and will be solely responsible to him or, during a vacancy in the office of the Agent, to the Assistant Federal Reserve Agent, said to the Board of Governors, for the proper performance of his duties. When not engaged in the performance of his duties as Alternate Assistant Federal Reserve Agent he may, with the approval of the Federal Reserve Agent or, (luring a vacancy in the office of the Federal Reserve Agent, of the Assistant Federal Reserve Agent, and the President, perform such work for the Bank as will not be inconsistent with his duties as Alternate Assistant Federal Reserve Agent. "Mr. Reitze should execute the usual oath of office which should be forwarded to the Board of Governors, together with advice as to the effective date of his appointment." Approved unanimously. Letter to Mr. McConnell, Vice President, Federal Reserve Bank of 141tilleaPolis, reading as follows: 2/4/53 -5- "This will acknowledge receipt of your letter of January 27, 1953, advising that you plan to transfer Raynold Wilbur Anderson and Harold M. K. Swanson, presently employed in Other departments, to the Bank Examination Department with the thought in mind of appointing them assistant examiners sometime during 1953. "The Board approves the designation of Raynold Wilbur Anderson as a special assistant examiner for the Federal Reserve Bank of Minneapolis. As Mr. Swanson was indebted to the First National Bank of Minneapolis in the amount of $5,457.39 on November 15, 1952, secured by real estate, the Board approves the designation of Harold M. K. Swanson as a special assistant examiner for the Federal Reserve Bank of Minneapolis for the specific purpose of rendering assistance in the examination of State member banks only." Approved unanimously. Memorandum dated January 29, 1953, from Mr. Townsend, Consultant to the Board in connection with the Clayton Act proceeding against Trans"Ierica Corporation, reading as follows: "The attached bill from Ad Press covers the total cost °f printing the record in the Transamerica case. By stipulation entered into between counsel for the parties on July 31, 1952, Transamerica agreed to pay 60 per cent and the Board 40 Per cent of this bill. The Board's portion is $24,341.80. "There is also attached a bill for $726.55 from Judd & Detweiler, Inc., for printing the Board's brief in this case. "An annotated copy of the Board's order is now being Printed by Judd & Detweiler, Inc., for submission to the Court of Appeals at the time of oral argument. This has not Yet been completed but Judd & Detweiler estimates that it will cost approximately $350.00. "It is recommended that the two attached bills be approved for payment, and that the Board authorize payment, upon submission 2/4/53 -6- "of a proper invoice, of the cost of printing annotated copies of the Board's opinion." Approved unanimously.
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