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Minutes of actions taken by the Board of Governors of the
deral Reserve System on Friday, June 1, 1951.
PRESENT: :Jr. Martin, Chairman
Szymczak
dr. Vardaman
:Jr. Powell
Mr. Carpenter, Secretary
Mr. Sherman, Assistant Secretary
Mr. Kenyon, Assistant Secretary
Minutes of actions taken by the Board of Governors of the
blecleral Reserve System on May 31, 1951, were approved unanimously.
Telegram
to the Federal Reserve Banks of Boston, Atlanta,
St° L°111-e, and San Francisco stating that the Board approves the
establishment without change by the Federal Reserve Bank of San
?rah
itelsco on May 29, by the Federal Reserve Bank of Atlanta on May 30,
by. the
--ederal Reserve Bank of St. Louis on May 31, and by the Federal
lieserv
Bank of Boston today, of the rates of discount and purchase in
t4leir
e4iSting
schedules.
Approved unanimously.
Lie
morandum dated May 29, 1951, from Mr. Wayne, Acting Director
the D
ivision of Examinations, recommending that the basic salary of
Ge°1‘ge
S•Sloan
Assistant Director, Division of Examinations, be in—
ased to $1
4,000 per
effective upon assuming his duties as
ector of
the Divisio
Examinations on June 1, 1951.
:"07
Approved unanimously.
Me
morandum dated May 29, 1951, from Mr. Sloan, Assistant,
of
the Division of Examinations, recommending that the
—2—
official headquarters of Philip C. Rachford, Assistant Federal Re—
serve Examiner, be changed from Birmingham, Alabama, to Washington,
D. c 4.,
effective immediately.
Approved unanimously.
Letter to Mr. Shepard, Federal Reserve Agent of the Federal
fteserve
Bank of anneapolis, reading as follows:
"In accordance with the request contained in Mr.
PeYten's letter of May 29, 1951, the Board of Governors
aPproves, effective June 1, 1951, the payment of salaries
to the following named members of the Federal Reserve
Agent's staff at the rates indicated:
Name
Title
Annual Salary
—.4—
Helena Branch
J. L. Heath
Federal Reserve Agent's
$415oo
Representative
L. W. Powell
Federal Reserve Agent's
4,500"
Representative
Approved unanimously.
Letter to lAr. Wilts°, Vice President of the Federal Reserve
of New York,
reading as follows:
HE
i
. to
. ? gsed is a letter of the Board of Governors
Bank of America, New York, New York, to
os,ptabli
sh a branch in Duesseldorf, Federal Republic
A, G
ermany, which you will please deliver to the Bank.
c°PY of this letter is enclosed for your files.
aut "Please ask Bank of America to note that the
tp,h?ritY to establish the branch will automatically
4.-1111nate on June 1, 1952, if the branch is not actually
daZablished and opened for business on or before that
in 1"..and request Bank of America to advise the Board
'
yorl iting through the Federal Reserve Bank of New
b, when the branch is so established and opened for
ess
—3-Approved unanimously, together
with the following letter to Bank
of America, 40 Wall Street, New York,
New York:
"The Board of Governors of the Federal Reserve System
authorizes Bank of America, New York, New York, pursuant
to the provisions of section 25(a) of the Federal Reserve
Act and the Board's Regulation K, to establish a branch
In Duesseldorf, Federal Republic of Germany, and to operate
and maintain such branch subject to the provisions of such
section and Regulation; upon condition that unless the
branch is actually established and opened for business on
er before June 1, 1952, all rights granted hereby shall
be deemed to have been abandoned and the authority hereby
granted shall automatically terminate on such date."
Letter to !Ir. Slade, Vice President of the Federal Reserve Bank
or Q
'an Francisco,
reading as follows:
"This refers to your letter of May 23, 1951, concerning
the valuation and amortization of 2 3/4 per cent Treasury
.30hois of
1975-80 received in exchange for 2 1/2 per cent
ponds
rttW
were not aware that the Comptroller of the Cur—
had made a ruling in connection with such bonds.
i
er, the ruling cited coincides with instructions
iisued by the Federal Deposit Insurance Corporation, to
ths examiners, which were discussed with the Office of
ofeCemptroller of the Currency, and the Board's Division
'
xaminations before issuance and in which each office
—41°urred.
1,88 "The Federal
Deposit Insurance Corporation felt that
de_i:lance of definite instructions to its examiners was
iliTable because of the large volume of such securities
hands of insured savings banks. Commercial banks
it
acquire such bonds only in limited quantities. Also,
the generally accepted practice when such an exchange
is
ths—jfected to place the bonds acquired in the exchange on
alp_uooks of a
bank at the net amortized value of the bonds
nojendered in the exchange. In the circumstances, it was
wbuirntemPlated at that time that special instructions
be issued by the Comptroller or the Board.
6/1/51
"There may have been some difference of opinion on
the technical question of the rate of amortization on
the 2 3/4 per cent bonds. In view of the relatively
small difference in fact between amortization at one
rate and term and amortization at the other it seemed
reasonable to concur with the instructions issued by
the Corporation to examiners and repeated in the ruling
of the Comptroller to which you refer."
Approved unanimously.
Letter to the Honorable Raymond M. Foley, Administrator, Housing
and Home
Finance Agency, 1626 K Street, N. W., Washington, D.
Cop
'
l eading as
folloas.
,
"In response to your letter of May 28, 1951, this
a.s to advise you that the Board of Governors concurs in
Your designation of the Camp Cooke, California, area as
an area for application of special credit terms under
secti°n 6(p) of Regulation X, Real Estate Credit, for
P
of defense construction. Your letter states
that
therethere is a need for 450 units to be located within
commuting distance of Camp Cooke, 280 to be
nt
_reasonableal
,
units ranging from $60 to $75 per month, and 170
t° oe sale units at $8500 and $9500 each. Under the
erns of the exemption, the entire 450 units will be
vntrolled by your agency through the issuance of specific
cert
ificates.
of 4 "In accordance with your suggestion, the relaxation
tirrins Prescribed by Regulation X will be identical
“.that previously announced for the Atomic Energy Com—
Idahsolorin installations in South Carolina, Kentucky, and
7
Approved unanimously.
Letter
to the Presidents of all Federal Reserve Banks, reading
"
. 3110`as.
tt
Ot
response to our telegram of May 11, 1951, most
"e Federal Reserve Banks have indicated that they are
"in favor of issuing registration certificates to Regis—
trants under Regulation X. The reason given most commonly
tor such certificates is that they will serve as an acknowledge—
ment of the receipt of the registration statement, and that
they will meet a desire on the part of some Registrants to
have evidence of compliance with the registration requirement.
Accordingly, the enclosed form of registration certificate,
similar to that transmitted with S-10401 dated September 16,
1948, for use in the case of Regulation W Registrants, has
?esn prepared with a view to having a uniform certificate
. -sued by all banks. This should be on a sheet six by nine
Inches in size, and presumably would have substantially the
same appearance as the Regulation W certificate.
"It is suggested that each certificate issued be dated
al:Id numbered, and that the letter of the alphabet which identi—
fies the Federal Reserve District be used as a prefix to the
umber. (For example, Boston would prefix its numbers with
441.) It is contemplated that these numbers will be used as
,;Pe code numbers for the mechanical tabulation of data on the
aegulation X registration
statement.
f,
"Except for banks, it is not necessary that the certi—
leate numbers be assigned in any particular order, but the
31111/1ber of digits should not exceed five. In the case of
anks, tabulation of statistical data from registration
ta
tements will be facilitated if certificate numbers conform
1? bank numbers used for other tabulations in the past. A
4a-L!t.of
banks ;with the numbers to be used has been prepared
ls being transmitted with a separate letter being sent
to
ci;Y?u today containing suggestions for the editing and me—
n:la-cal processing of the registration statements. You will
car that the bank numbers are to be preceded by an IX' (indi—
tr,%1 by an asterisk on the list referred to). In the case of
a ;,?„4 departments which file separate registration statements,
should follow the certificate number."
7
Z
Approved unanimously, together
with the following letter to the
Presidents of all Federal Reserve
Banks:
ca.os In accordance with our telegram of May 8, we are en—
:
n
Po
suggestions for the editing, coding, and mechanical
Stat—ssinC of the information provided in the Registration
ement under Regulation X.
J
-6"The information in the Registration Statements
under Regulation X can probably be made available most
economically, for the System as a whole, through mechanical processing of the Statements by the Reserve Banks.
We shall therefore appreciate it if you will arrange to
have the data key-punched on IBM cards according to the
enclosed card-design and instructions, and to furnish a
deck of these cards to the Board. National tabulations
will then be prepared at the Board's offices, copies of
which will, of course, be available to n11 Banks.
"In order to maintain reasonable uniformity among
districts, and to facilitate key-punching of the IBM cards,
suggestions for editing the statements have been prepared.
For Section III of the Registration Statement we have suggested minimum standards for acceptance of a Statement. If
Y°11 find it desirable to adopt other standards or to follow
a different procedure in sending back faulty statements,
Please keep us advised of your practice.
shal] want to know as early as possible how much
elfect incomplete and incorrect Statements have on reported holdings so that, if necessary, follog-up steps
be taken promptly. It would be appreciated, therefore,
!
t; You could
arrange to send us the following information
4,
°11 a portion of the schedules has been processed: (1)
the number
of Registrants who filed complete and accurate
n _atements, and the total amount of loans held for own
,lccunt by these Registrants (Section
Item C, of the
tration Statement) and (2) similar information for
,1
7Lgis?” Registrants who filed incomplete or inaccurate State'
80 It would be desirable to have this information for
('
7) broad groupings of Registrants: those coded (1) through
) in
Section II and those coded (8) through (16). If the
w'Zmation could be secured without too much difficulty, it
ina d also be desirable to have the group of incomplete and
anct°,?urate schedules further broken down into those that are
set :,Jlose that are
not acceptable under the minimum standards
rth in the instructions for editing0
im?El takCkestions concerning the editing of the statements may
,teae en up directly with Mr. Ramsay Wood of the Division of
Altharch and Statistics and those on the mechanical processing
szr
11
rond
Machine Tabulation Section, Division of
lye Services."
7
4
Memorandum dated May 28 1951 from the Division of Personnel
Administ.tion, recommending that
the Board make a contribution of
4125 to the Reserve Board Club to help defray the expense of a picnic
thr) Board's staff, planned for the afternoon of June 23.
Approved unanimously, with
the understandinE that the appro—
priate item in tho 1951 budget of
the Division of Personnel Adminis—
tration would be increased by the
amount of the contribution.
@FedFRASER