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1108 A meeting of the Board of Governors of the Federal Reserve SYErtera was held in Washington on Tuesday, June 2, 1942, at 10:30 PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters herein- atter r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the 'era. Reserve System held on June 1, 1942, were approved unanimously. Memorandum dated June 2, l942, from Mr. Nelson, Assistant rY, submitting the resignation of Joseph P. Harris, Jr., as a 1In the Secretary's Office, to become effective as of the close aa ' jness today, and recommending that the resignation be accepte d 't that date. The resignation was accepted. Letter or cie to Mr. Brainard, Chairman of the Federal Reserve Bank veland, reading as follows: eral "At the completion of the examina tion of the Fed19442-,Reserve Bank of Cleveland, made as of March 18, or bY the Board's examiners, a copy of the report of j amitlation was left for your information and that d Pieml ',Leng irectors. A copy was also furnished President 1109 6/2/42 -2- "The report does not appear to contain any matters requiring further comment at this time. The Board will appreciate advice, however, that the report has been considered by the Board of Directors. Any comments you TialY care to offer regarding discussions with respect to a e examination or as to action taken or to be taken as result of the examination will also be appreciated." Approved unanimously. Letter to Mr. Hale, Vice President of the Federal Reserve Bank Ot /14e144 D- . 4-rancisco, reading as follows: r "This refers to your letter of May 15, 1942 with to an Paui Lowrey. apparent violation of Regulation W by Mr. 28 "We have forwarded to your bank, under date of May '1942, an outline of a program of enforcement of the of Regulation W, and it is suggested that you handle 1.4;:iolations by Mr. Lowrey in accordance with It it appears that the violations of Mr. Lowrey which are describe d in your letter were apparently willful, there sof° are some aspects of the case which would make it uswhat difficult to base proceedings on such violations. °I f the penalty we attempted to inflict should be suspension tioa license, the proceedings would be based on a violahand,which occurred prior to registration. On the other torn, if the failure to register was reported to the Atviola , General as a basis for criminal prosecution, it diae aPParently be claimed that failure to register was ste ,° ignorance of requirements and that all possible ali'Lhad now been taken to obtain a registration. In tiorin circumstances, it does not appear that the violabast- indicated in your letter would form as strong a par,? as might be desirable for initiation of proceedings, t4cularly as a first case. In view of the apparent atch ,Mr. Lowrey, it appears probable that under the ot_eof ?°'dng arrangements which it is contemplated will De 0ther'led out under the Board's program of enforcement, violations by him will be discovered upon which P 6/2/42 -3cTpropriate proceedings may be based, if you then feel that such proceedings are desirable. "If in the light of the Board's program and the above e°mments you should be inclined to differ with the conclusiells indicated by such comments we shall, of course, be glad to be advised of your views. On the other hand, if 7 2u concur in such conclusions there would seem to be no 17ason why a certificate evidencing registration should bc)t be issued if the registration statement furnished you wY Mr. Lowrey is in order. If this action is taken, it 21134 aPpear desirable to put Mr. Lowrey on notice that ,1211 are not satisfied with his past transactions in view ',J..the requirements of Regulation V/ and that his future elnsactions will be subject to inspection by representalves of the Federal Reserve Bank." j Approved unanimously. p r, Letter to Mrs. Frances Hodges of the White House Market, Wichita Texa s, reading as follows: aa „ 11,Xour letter of May 8, 1942, addressed to CongressGossett has been referred to this office since 'ls the Board's Regulation Viwhich relates to consumer credit in 14 "You are correct that the list of articles mentioned th:e6ulation Vi does not contain groceries and consequently ce:.rsgulation has no application to credit sales of gropu;les except in certain cases where the customer also : re iillases listed articles from the same merchant. The sal.ation of retail credit is confined, in general, to was-; 1,0f durable and semi-durable consumers' goods. It tail-"ought undesirable, at this time, to subject the reitemers of foods to this regulation as food is a basic the,7 of subsistence. We are very glad to have your com-'s and thank you for your interest. "The administration of Regulation V; has been deesntra 1 . tatik -1zed and is handled by the twelve Federal Reserve ther844nd their twenty-four branches. If you have furthe„ tnquiries or comments, it is suggested that you send ' 60 the Federal Reserve Bank of Dallas." Approved unanimously. 6/2/42 -4Telegram to the Presidents of all the Federal Reserve Banks, ' r eaclirig as follows* "After considering replies to Board's letter R-982 a,..nd discussing matter with Chairman of Presidents' Conference Committee on Reimbursable Expenses, it is suggested that vouchers for reimbursement of expenses inIrred during period April 16 to May 31, 1942, in connecr1 with work performed pursuant to Executive Order for Ifiar Department, Navy Department and Maritime n°rIlnalesion be forwarded through Board's Division of Bank ;13erations, in order that they may be examined by Divip, (3 ,11 or by Committee appointed by Chairman of Reimbursable j'ver?-es Committee to see that vouchers for all Banks are compiled on substantially uniform basis. If method used ' If allocating expenses is different from that stated in : a 1315T to letter R-982, please state method used. It is orsualed that reimbursement will not be requested for cost Printing and distributing Regulation V." Approved unanimously. Thereupon the meeting adjourned. Assistant Secretary.
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