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:ernors of the Minutes of actions taken by the Board of Clo, l'eera-1 Reserve PRESENT: vstem on Wednesday, March 12, 1?52. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Evans Mills Robertson Mr. Carpenter, Secretary Mr. Sherman, Assistant ,,:ecretary Mr. Kenyon, Assistant Lecretary Minutes of acti.ons taken by the Board of Governors of the -L Reserve System on March 11, 1952, were approved unanimously. Letter to Mr. Wiltse, Vice President, Federal Nev .1•- ve Bank of Iork ) reading as follows: ; Reference is made to your letter of February 1'9)2 fa ,/ submitting the request of the Liberty .7 t111 ti °/ Buffalo, New York, under the requirements o an 24.1k of the Federal Reserve Act, for ap)roval ease in its investment 4 n bank premiseL G.'s it vestment in such premises now exceeds the par value 01. capital stock. A In accordance with your recommendation the Boar,., of, iseovernors approves additional investments in bank prcmalready made and to be made for the purposes 0et forth vil he bank's letter of December 26, 1951, in amounts which ELLO'lht not increase the carrying value to an airre[. excess of 0,300,000." Approved unanimously. q 4 4. Mr. A. W. Barth, Vice President, The Chase Letter to Paul:Nion itY of New York, Pine Street corner of Nasau, Low York, hew Yen:, 44111€ f011ows 144rch"Thic Will acknowledge with thanks your letter of 1952, transmitted through the Federl Reserve 3112/52 -2- Bank of New York, advising the Board of Governors that your Ils idelberg Branch will move on or about April 1, 19)2 from l'ts present address, Friedrich Ebert lalee No. 1, Heidelberg, cc Rohrbacher Strasse 11, Heidelberg. "The Board interposes no objection to such change in location." Approved unanimously. Letter to Mr. Winthrop 1%. Aldrich, Chairman of the Board of Directors, The c 118-ee Bank, Pine Street corner Nassau, New York, New York, reading p.s fcqlowe. or "There is enclosed a copy of the report of examination ma the Head Office of The Chase Bank, New York, New York, as of November 26, 1951, by examiners for the Board of 1Gov ;srnors of the Federal Reserve System. The figures for a';e v fore ign branches shown in the combined statement of conut 1°n; as well as the figures for The Chase National Execand Trustees Corporation Limited and Union Provinciale ' — 10biliere, were supplied by the Head Office. viu. "Your courtesy in acknowledging receipt of the report be appreciated." Approved unanimously. Letter to Mr. L. A. Hart, President, Home Furniture Company, Central 4DrE. Y at Elm, Dallas, Texas, reading as follows: dx,e "Thank you for your letter of February 27, 1972, adssed to Chairman Martin, which enclosed an editorial on co, NeIVImer credit regulation published in The Dallas Morning Of that date. \tett :Regulation W does have some effect in helping to preEllie, Inflationary price increases for the specifically reed articles, but it also has the much broader purpose Dil;effect of limiting the inflationary expansion of c.tnerl vo he'eing power which results from the unrestrained ex2an:°r consumer instalment credit with its accompanyin; 4 nere Se ifl the money supply. fi.1 3/12/)2 rci -3- was "In the third quarter of 1950, before Regulation reinstituted, consumer instalment credit was expanding at an annual rate of around 5 billion dollars. The fact that the 8.zourt of instalment credit outstanding has not continued to at any such rate under the regulation seems to us to be actual evidence that the regulation has been effective in °mPlishing the essential purpose for which it was designed. gulat1on W is, of course, only one of the measures estal— i 184ed by the Goverment in its program to protect the purcha;,e-ll! Power of the dollar in this emergency period. Consumer , ealt regulation cannot, by itself, effectively control all 0 1 the inflationary forces. , "Incidentally, neither the Board nor, to our knowledge, Other credit authority, views the articles listed under U as luxuries, as the editorial implies. Automoes, be appliances, furniture, and home tmlirovementL, are listed allse instalment purchases of these articles generate the ' lc of the instalment credit outstanding. "We appreciate your interest in writing to Us.- 7 j Approved unanimously. MeMorandum dated March 11, 1952, from Mr. Hooff, assistant Counsel, ndillg that there be published in the law department of the "Ile of the Federal Reserve Bulletin statements in the form ecl t° the memorandum with respect to the following subjects: Cortsumer Credit erformance of Contract Secured or Guaranteed ( -1P2) Vent-A-Hood" as Home Improvement or Accessory (W-183) Approved unanimously. Secretary.
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