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1.224 Minutes of actions taken by the Board of Governors of the Pederal Reserve System on Monday, July 18, 1949. PRESENT: Mr. McCabe, Chairman Mr. Szymczak Mr. Evans Mr. Mr. Mr. Mr. Carpenter, Secretary Hammond, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Telegram to the Federal Reserve Bunk of Kansas City stat14g that the Board approves the establishment without change by that Bak on July 16, 1949, of the rates of discount and purchase in its existing schedule. Approved unanimously. Letter prepared for Chairman McCabe's signature to The 804 orable M. Cuaderne, Sr., Governor, Central Bank of the Phil, Manila, Republic of the Philippines, reading as follows: "We have reed your letter of July 6 requesting an extension of Mt. Grove's stay and have given the question fresh consideration, for our interest in the 14 ' 4 ..,ank and in its getting the best start possible s as strong as ever. But I am sorry to say that ' circumstances confirm the expectation already exPressed that Mr. Grove can not be longer spared to You in Manila. As you can readily imagine, we are constantly under pressure of demands from other quarters—and this in Mr. Grove's own field as much as anywhere. "We are glad that you have found Mt. Grove useful and we share your good opinion of him. But without depreciating his helpfulness in the least, we are strongly inclined to think that the Bank will be in good hands, being in yours, that its initial problems are over, and that those to be expected henceforth are such as are inevitable in the career of any institution and may have to be encountered by the manageMent late as well as soon. "We recall also that Messrs. Dizon and Martinez, 25 7/18/149 ORO "the capable young men N./10 have been studying with us for the past year, will soon be back in Manila and able to share some part of your task. And to the extent that you may still wish to call cn an outsider, we believe that You will find Mr. Lipsman of the Treasury a very able and friendly adviser. "Again I assure you that we regret being unable to have Mr. Grove continue wiliayou and that his departure will not lessen our interest in your Bank. We shall always be mindful of a special bond with it and responsive to its interests." Approved unanimously. memorandum dated July 14 1949, from Mr. Szymczak rec- -ti --Lng an increase in the basic salary of Fredrick L. Frost, 0rnaleri 4 a Illeesenger in Mr. Szymczak's office Per annum from $2,432.04 to $2,498.28 effective July 24, 1949. Approved unanimously. Memorandum dated July 14, 1948 from Mr. Vardaman, rec- Brown, Q4filellding an increase in the basic salary of Fletcher E. a -Doenger in Mr. Vardamsn's office, from $2,498.28 to $2,573.52 per annUm, effective July 24, 1949. Approved unanimously. Memorandum dated July 14, 1949, from Mr. Thurston, Assi stant to the Board, recommending an increase in the basic eaaA , -44 of Bishop B. Hart, a messenger in Mr. Thurston's office, fro A.. 11 +2 573.52 to $2,648.76 per annum, effective July 24, 1949. Approved unanimously. Memorandum dated July 15, 1949, from Mx. Bethea, Director of the Division of Administ ative Services, recommending that the appointment of Ernest I. Burke, a laborer in that Divi- 1 226 7/18/14.9 _3_ si°11, be extended on a permanent basis, effective July 23, 1919,1 with no change in his present basic salary of $2,020 per Approved unanimously. Telegram to the Presidents of all Federal Reserve Banks, reading as follows: "Par List will be reprinted as of August 1949. At a recent meeting of Committee on Collections, Federal Reserve Bank of Chicago representative stated there is no longer need for footnote 1 (see Illinois). Otherwise present format presumably is satisfactory in view of extensive changes at last printing. Please advise, however, whether you have any changes in format to suggest. "Please also mail, to reach Board by July 25, a Copy of your district portion of present Par List, marked in red to reflect necessary changes. In this connection, please refer to sub-paragraph (c) on secclnd Page of Smead's August 11, 1948 letter regarding Par List supplement. "We will telegraph you upon receipt of printer's Proof of new Par List so that any changes in par status after submission of your manuscript may be made in the proof copy. "Since delivery of new Par List may not be made uatil late in the month, an August supplement to present Par List will be issued as Lsual. A,ccordingly, information for August supplement should be submitted in usual manner." Approved unanimously. Memorandum dated June 16, 1949, from Mr. Vest, General 441-sel, with respect to a trade practices conference proposed the rederal Trade Commission to be held in Washington, Septeniber 15, 1949, to consider so-called 'packing" practices in the le and financing of automobiles purchased on the instalPlan. The memorandum recommended that Mr. Watson, an at- 1227 7/18/49 11. tom(04 - for the Federal Trade Commission, be advised that if an ariPropriate request is received by the Board from the Commission, the Board will ask the Federal Reserve Banks to notify their interested member banks of the proposed conference with a stateet that the Board believes that the matter is one which will be of interest to all member banks which are substantially eng€tged in the business of automobile loans or financing. Approved unanimously. AP.Proved:
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