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179 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, January 24, 1951. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Szymczak Evans Vardaman Norton Powell Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Minutes of actions taken by the Board of Governors of the Federal Reserve System on January 23, 1951, were approved unanimously. Memorandum dated January 22) 19510 from Mr. Bethea, Director °f the Division of Administrative Services, recommending increases 1/1 the basic annual salaries of the following employees in that biltisien, effective February 4, 1951: Name Kramox:777 Allison Oros, Susie T. Moon, Donald W. erayfford, Mary Weikel, Mary A. (,:sovrell, Charles 14111104y, Mary F. E. Title Accounting Clerk Accounting Clerk Clerk Head Cook Telephone Operator Chauffeur Elevator Operator Salary Increase From To 0770 401,075 3,725 3,275 3,074 2,890 2,850 2,190 3,850 3,355 3,154 2,970 2,930 2,260 Approved unanimously. Memorandum dated January 23, 19510 from the Division of enhel Administration recommending that the Board of Governors ratif Y the invitation to the Conference of Personnel Officers of the 1' dor al Reserve System to hold its 1951 meeting at the Boardfs offices a4c1 th-at it authorize the expenditure of up to 4750 for entertainment 1/24/51 -2- Of the group. Approved unanimously. Memorandum dated January 22, 1951, from Mr. Young, Director of the Division of Research and Statistics, stating that Miss Helen M. Vincent, a clerk in the Business Conditions Section, had filed a4 aPplication for retirement under the Board Plan of the Federal aeserve Retirement System, effective February 1, 1951. Noted. Letter to Honorable Frederick J. Lawton, Director, Bureau Of the Budget, Washington 25, D. C., reading as follows: "In compliance with a request received from the House Committee on Banking and Currency, the Board has Prepared the enclosed report on H.R. 160 to amend section 5192 of the Revised Statutes with respect to the reserves of national banks located in the Territories and possessions of the United States which are not members of the Federal Reserve System. "Before transmitting this report, the Board would aPpreciate advice as to the relationship of the proposed legislation to the program of the President. During the 81st Congress the Board, after approval of the Bureau of the Budget, submitted substantially the same report on H.R. 7340, a bill identical with H.R. 160." Approved unanimously. Letter to Mr. Olson, Vice President of the Federal Reserve Ba of Chicago, reading as follows: "This refers to your letter of January 17, 1951, a'question relating to the applicability of I 1/24/51 _3_ "Regulation X when a builder buys an old residence, moves it intact to a new foundation constructed on another lot, reconditions it, and then sells the lot and the attached residence. You asked whether this should be regarded as a new residence begun after August 3, 19501 or as a major addition or major improvement to an existing residence. *It is the opinion of the Board that the reconditioned residence in its new location should be regarded as a new residence begun after August 31 1950. Accordingly, when the residential property subsequently is sold, the sale must be on terms which comply with the applicable provisions of Regulation X. "A similar question was raised by another Federal Reserve Bank in a telegram to the Board on October 27, 1950. In its reply of November 21 19501 the Board answered as follows: 'Your wire October 27 re computation of maximum loan value under section 2(i) of Regulation X in a transaction where a prospective borrower buys a house Which is not new construction and moves the house intact to another lot and annexes it to a found ation thereon, the lot having been acquired and the foundation installed after August 31 1950. In the Board 's ()Pinion this transaction should not be regarded as involving a major addition or major improvement to an existing structure, but inste ad the house in its new should be treated as a new structure begun after August 3, 1950. Accordingly, the maxim um loan value would be based upon the value of the new lot with house annexed. The value of such property, computed ln accordance with section 2(i)(2)(B) of Regulation X, 11°u1d be the bona fide cost of the property to the b orrower, including the cost of the lot, the cost of installing the found ation, the cost of the house, the ?ost of moving the house , and any other cost to be Incurred by the borrower in completing the new construeion:11 Approved unanimously. -182 1/24/51 -4Letter to the Board of Directors, "The Nashville State Bank", Nashville, Indiana, stating that, subject to conditions of membership numbered 1 and 2 contained in the Board's Regulation II, the Board aPproves the Bank's application for membership in the Federal Reserve SYsteni and for the appropriate amount of stock in the Federal Reserve Bank of Chicago. Approved unanimously for transmittal through the Federal Reserve Bank of Chicago. Letter to Mr. McLarin, President of the Federal Reserve Bank Of Atlanta, reading as follow s: "This refers to your letter of January 4, 19512 and to Mr. Clark's letter of January 11, 1951, 'concerning the proposed purchase by your Bank of the 'Silvey Building' in Atlanta. "The Board has considered the matter in the light Of present-day prices and developments and will interPose no objection to the purchase of this property at a Price not to exceed $275,000. It is noted that the Offer to be submitted by your Bank will contain a thirtyday period for acceptance." Approved unanimously. Letter to Mr. Neely, Chairman of the Federal Reserve Bank Qf A tlanta, reading as follows: "At the completion of the examination of the Federal Reserve Bank of Atlanta, made as of November 6, 1950, by the Board's examiners, a copy of the report of examination was left for your information and that of the directors. A copy aas also left for President McLarin. "The Board will appreciate advice that the report haS been considered by the Board of Directors. Any -17 R3 4/4151 -5- comments you may care to offer regarding discussions With respect to the examination, or as to action taken or to be taken as a result of the examination, will also be appreciated." Approved unanimously. Letter to Mr. Roger K. Jones, Assistant Director, Legislative Refe rence, Bureau of the Budget, Washington 25, D. C., reading as follows: "In response to your letter of January 18, 1951, the Board has asked me to say that it has no comments to make with respect to the draft of Executive Order a ttached to your letter 'Providing for the Improvement 2f the Work of the Federal Executive Agencies With ' IesPeet to Statistical Information.'" Approved unanimously.
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