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1516 A meeting of the Board of Governors of the Federal Reserve 87stem was held in Washington on Thursday, Tuly 30, 1942, at 11:00 a•m• PRESENT: Mr. Eccles, Chairman Mr. Ransom, Vice Chairman Mr. Szymezak Mr. McKee Mr. Draper Mr. Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereineliter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ap J. Reserve System held on Tuly 29, 1942, were approved unanimously. Memorandum dated Slily 24, 1942, from Mr. Smead, Chief of the la of Bank Operations, recommending that Miss Mary Ann Chadik be ed es a clerk in that Division, with salary at the rate of $1620 ill'al111111111, effective as of the date upon which she enters upon the performa " of her duties on or after August 1, 1942, after having passed II efiti ' ractorily the usual physical examination. Approved unanimously. Letter to Mr. Creighton, Chairman of the Board of the Federal 1'76 Bank of Boston, reading as follows: .44 . "Reference is made to your letter of Tuly 22, 1942, adthat Mr. Lewis S. Reed has resigned as Class A director t4,the Bank and that his resignation has been accepted, to 448 effect upon the election of his successor. 1517 7130/42 -2- "It is noted from your letter that you have been informed that the present classification of member banks in the Boston District for the purpose of electing Class A and laes B directors has been satisfactory and that you do not 4now of any reason why it should be changed. In the circumstances, the Board interposes no objection to your Bank's !rranging for a special election by member banks in Group 2 uo choose a successor to Mr. Reed, Group 2, as at present classified, to consist of banks with a capital and surplus Of over 000,000 and not more than 0_,200,000." F Approved unsnimously. Letter to Mr. Phelan, Assistant Vice President of the Federal Neer— Bank of New York, reading as follows: "'Enclosed is a letter from the Modern-Art & National Shuffleboard Co., Irvington, New jersey, which states that 1,)ercre receiving the Board's letter of July 13 stating that ?.huffleboards were listed articles under Regulation W, they 1-le( ? made several sales which did not comply with the realllrements of the Regulation because they thought that Shuf4J-eboards were not listed articles. , "The letter is referred to your Bank for handling in !cecrdance with S-496" (letter relating to corrections of 4Plaarent violations of Regulation W). Approved unanimously. Letter to Mr. McLarin, President of the Federal Reserve Bank or 411elata, reading as follows: "Reference is made to the file of correspondence which `eJll.ferwarded to us relating to alleged violations of Reguch lon W by the Clark Brothers Furniture Company of ettenooga, Tennessee. 'Tcur letter indicates that this is a case which has ar responded to the usual informal procedure and that more areetic measures may be necessary. For your information we wcrking on the procedure which we believe it would be 4:1rable to follow in such cases. Our Counsel's Office the already prepared suggested forms for use in discussing li question with several of the banks' counsel who, in the aaVilt of their trial experience, have been asked for their to "::. €1 Preliminary to a submission of the suggested forms Of the Federal Reserve Banks for their consideration i 1518 7/30/42 0 "and recommendations. The question of whether or not the Particular case is the type of case with respect to which You wish to proceed would seem to be best resolved in the light of such procedure Iyhen it is adopted. We hope to be able to submit something to you for your consideration and suggestions by not later than August 20th." Approved unanimously, together with a similar letter to Mr. Dillard, Vice President of the Federal Reserve Bank of Chicago, relating to alleged violations of Regulation W by the Consumers Home Equipment Company of Detroit, Michigan. Letter to Mr. Woolley, Vice President of the Federal Reserve 13134C °T Kansas City, reading as follows: "This is in reply to your letter of July 23 enclosing 4,colDIT of a letter from Yr. E. F. Pettis, suggesting that he default date on charge accounts under Regulation V: be changed from the 10th to the 15th of the month. "A similar suggestion has previously been made to the BOazd, but it would not seem that the net result of the sUggested change would, on the whole, be favorable in view the fact that the several hundred thousand retailers who e jt rrY charge accounts, and many of their millions of cus°Illera, have now been educated to the fact that the 10th ° r11' the month is the 'default date' for charge accounts un' er Regulation W. "It also seems doubtful that a change to the 15th w°111a really be successful in taking care of the cases that a • Pettis mentions in his letter, involving customers who Paid on the 15th and last day of the month, since it is ite likely that payments from such persons would arrive °t on the 15th but on the 16th or 17th of the month. "Out of the many suggestions that the Board has reea.17e and is considering for the relaxation of section 5 on °Ile respect or another, the letter from Mr. Pettis is 1.1117 the second that has come to the attention of the Board vlquesting the particular change that he recommends. In w ew of this fact, it seems to us unlikely that this change /11d be of any great importance to the merchants subject ' 0 section 5 -- although, of course, if it should be develthat we are incorrect in this assumption, the point 1 be given further consideration." r j 47 Approved unanimously. 1_519 7130/42 -4Letter to Mr. Young, President of the Federal Reserve Bank °f Chicago, reading as follows: "Reference is made to your letter of July 23, 1942, fsgarding shipments of currency for army Pay roll purposes uo the First National Bank of Rantoul, Illinois. this natter has been discussed with Mr. blatchelder of the Treasury Department, it seems to us that where the volume of shipments is out of proportion to the 8iZe of the banks in the local communities that are in17 ,°17ed, arrangements should be made to ship the currency uirect to the camps concerned at the expense of the War Department." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, readis. as follows: , "Reference is made to the Board's letter of July 21, r - f42) transmitting certain correspondence with the Bureau Governmental Requirements, War Production Board. Copies ur the forms and instructions referred to in the last pareof the letter from the War Production Board, dated s; 1942, have now been received and are enclosed, as rru )110 3 Circular from War Production Board, dated July 11, 1942. 2. Form PD-408, 'Application for Priority Assistance (Federal Agencies) under the Governmental Requirements Plan--Section A: Equipment Requirements'. 3. Form PD-408, 'Continuation Section A: Equipment Requirements'. 4. Form Pi)-408, 'Application for Priority Assistance (Federal Agencies) under the Governmental Requirements Plan--Section B: Requirements for Maintenance and Repair Materials and Operating Supplies'. 5. Instructions with respect to the Governmental Requirements Plan. 6. Selected Headings from a Classified List of Commodities. 7. Priorities Regulations No. 3 as Amended Tune 26, 1942, effective July 1, 1942. 1- 1520 7/30/42 -5- "It will be noted from the War Production Board's letter of Tuly 11, 1942, that Form PD-408 should be used in lieu of Form PD-1A effective August 1, 1942. If your Bank desires preference rating assistance for the third calendar clI:lerter, 1942, Forms PD-408 sholJld be filled out and submitted to us as soon as practicable for transmission to the War Production Board." Approved unanimously. Telegram to LT. Evans, Vice President of the Federal Reserve Bank 14 Dallas, reading as follows: "Retel Tuly 29. Change of phrase 'a State bank' to 'a State banking institution' in caption for use in joint pub15cation of condition reports, and provision of space to ( 11Dmow State charter number of reporting bank in States where °ale added information is desired are satisfactory to Board." Approved unanimously. Telegram to the Presidents of all the Federal Reserve Banks 1414.4pr... "-L- Cameron, Assistant Cashier of the Detroit Branch of the Federal Ileserve bank of Chicago, reading as follows: "Weekly reports of number of applications for loans guarantees on hand under Executive Order No. 9112 recillaeted in Board's wire of May 2, 1942, S-468, may be dis continued.“ Approved unanii:ously. Evans stated that in accordance with the action taken at eett of the Board on Tuly 21, 1942, he and ir. Goldenweiser had %Elea.) in the light of suggestions made by members of the Board, the telltative outline of subjects indicating the field within which special 4€1°11 1 and national studies might be .:ade by the research departments Pederal Reserve Banks, and that copies of the revised outline ' Were beitig sent today to the Presidents, Chair-en, and research depart- 1521 VIOV42 -6- Zelda. - of the Federal Reserve Banks. Thereupon the meeting adjourned. 11311Qoarra:iifl Odt/taft Secretary.
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