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Minutes of actions taken by the Board of Governors of the I'etlerEti Reserve System on Tuesday, March 15, 194-9. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman pro tem. Szymczak Draper Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the Fecie Reserve System on March 14, 1949, were approved unanimously. Letter to Mr. Dearmont, Federal Reserve Agent at the Federal ileserve Bank of St. Louis, reading as follows: "In accordance with the request contained in your letter of March 10, 1949, the Board of Governors apProves, effective April 1, 1949, the payment of sal155 to the following members of the Federal Reserve iEent's staff at the rates indicated: ' Annual Salary Title "Name Head Office clward H. Hoppe Alternate Assistant $3,960 Federal Reserve Agent Little Rock Branch John A. Links Federal Reserve Agent's Representative Louisville Branch 4. R. Parsell Federal Reserve Agent's 4,620" Representative Approved unanimously. Letter to Mr. Dearmont, Chairman of the Conference of ChairIlteloared pursuant to the action taken at a meeting of the Board °"ellNary. 23, 1949, reading as follows: 49f; 3/15/49 -2- "As you know, the Board was authorized by the Securities Exchange Act of 1934 to regulate security margin requirements, and under that authority it issued Regulation T, Extension and Maintenance of Credit by Brokers, Dealers, and Members of National Securities Exchanges, in 1934 and Regulation U, Loans by Banks for the Purpose of Purchasing or Carrying Stocks Registered on a National Securities Exchange, Ii 1936. "At a recent meeting of the Board, consideration Was given to the desirability of forming a System margin committee for the purpose of making an analysis of factors that should be considered by the Board in aPProaching a change in margin requirements and of studying the method used in regulating margins, as distinguished from determination of the actual level of margins, with a view to making this selective inetrument of credit control operate more satisfactorily. It was the view of the Board that you, as Chairman of the Chairmen's Conference, might appoint two Chairmen to serve on such a committee, and that you might also invite the Conference of Presidents, of which Mr. Davis 18 Chairman, to select one of their members to serve with the two Chairmen. The Board would appreciate receiving your views with respect to this proposal. "If you feel that such a committee would be desirable, you may wish to discuss the personnel of the commtttee with either Chairman McCabe or Mr. Clayton, 1410 is the member of the Board having the assignment 1 '°r initial consideration of matters relating to margin ' l equirements." Approved unanimously. Letter to Mr. S. F. D. Meffley of the Recording and Statist44t1 Corporation, 222 West Adams Street, Chicago 6, Illinois, readt 11€ 8.8 follows: "It has come to our attention that a number of autolie dealers have received the impression from your ap1' Il16a1 guide books that they may include an added value ! t sir oars equipped with a radio or heater in determining "s maximum credit value permitted under Regulation W. , 3/15/49 "The misunderstanding arises because of the statement in the January 1 edition of your guides, on page 6, that . . there is no objection to the inclusion of value of extra equipment in determining maximum credit values for purposes of Regulation W I and the fact that You show, at the bottom of the following table of equipMent on page 7, 'loan values' for radios and heaters. It appears that the first sentence on page 6, which correctly states that the maximum credit value for purposes of the l'egulation does not include any added value for a radio O1 heater, does not prevent the misleading impression given by the statement quoted above and the table of equipment. "We shall appreciate your clarifying the material You Publish in this connection, for the purposes of Aegulation W, when you next have an opportunity to do eo. This might be accomplished, for instance, by reany loan value figures for radios and heaters in the table, and by changing the second sentence at the top Of page 6 to read: 'However, there is no objection to he inclusion of added value specified below for cars :wing an overdrive or automatic transmission as extra 'quiPment.' "Thank you for your cooperation." Approved unanimously. Secretary. Approvea: Chairman pro tem.
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