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499 A meeting of the Board of Governors of the Federal Reserve Systam was held in Washington on Tuesday, March 17, 1942, at 11:30 Tn. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman McKee Draper 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 herein— after r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Feder a-L Reserve System held on March 16, 1942, were approved unani— Mously. Memorandum dated March 11, 1942, from Mr. Goldenweiser, Di— rector of the Division of Research and Statistics, recommending that the "uefinite temporary appointment of Guy E. Greer as a Senior Ecctlomi+ --v in that Division be extended for a further indefinite period Probably another year — with no change in his present salary at the l'ate of 6 000 per annum. Approved unanimously. The following resolution was adopted by unanimous vote: "Resolved, that, effective March 20, 1942, subsection (b) of section 2 of Reg— ulation A, Discounts for and Advances to Member Banks by Federal Reserve Banks, be amended to read as follows: 500 3/17/42 "(b) Advances on Glwerameat obligations. - Any Federal Reserve Bank may make advances, under authority of section 13 of the Federal Reserve Act, to any of its member banks for periods not exceeding ninety days6 on the Promissory note of such member bank secured by direct n of the United States, and for periods not () exceeding i i fifteen days on the promissory note of such member reb sank secured (1) by the deposit or pledge of deor other such obligations of Federal Intermediate Credit banks having maturities of not exceeding six months from the date of the advance, or (2) by the deposit or Pledge of Federal Farm Mortgage Corporation bonds issued nder the Federal Farm Mortgage Corporation Act and guarboth (ted as to principal and interest by the United States, _tates, or ) by the deposit or pledge of Home Owners' Loan Corporation bonds issued under the provisions of sAubsection (c) of section 4 of the Home Owners' Loan as amended, and guaranteed both as to prin`'113a1 and interest by the United States. 7 --_________ z---Bit/ The eighth paragraph of section 13 of the Federal .serve Act authorizes advances to member banks for periods not exceeding fifteen days secured by bonds, notes, certificates of indebtedness, or Treasury bills of the United States. However, the last paragraph of section authorizes any Reserve Bank to make advances Federal or periods not exceeding ninety days 'to any individual, Partnershipu, or corporation' on the promissory notes of :eicVival, partnership or corporation secured by Obligations of the United States'; and the term orporation' includes an incorporated bank." r In connection with this action, it was understood that the letter to the Presidents of the Federal Reserve Banks advising them of the amendment would contain the following paragraphs: Relmi"This amendment makes no change of substance in the gi,r-"„ati°n• Its sole purpose is to rephrase the above para' de-1 of the Regulation in order to make it clear that unthe law the Federal Reserve Banks are authorized to !4e advances to their member banks for periods not exceeairig s 90 days on the promissory notes of such member banks 'cured hY direct obligations of the United States. m_F 501 3/17/42 —3— “IL will be appreciated if you will bring this amendIlaent to the attention of all member banks in your district. 'ere is enclosed herewith a copy of a press statement rerding this amendment which will be released by the Board • r Publication in the morning newspapers of March 20, 1942.” fpe Letter to Mr. Evans, Vice President and Secretary of the Federal Reserve Bank of Dallas, reading as follows: "Receipt is acknowledged of your letter of March 11, 1942, regarding an apparent violation of the criminal proons of the banking laws of the United States by a Mr. ',4710, formerly a bookkeeper of the First State Bank, iiransas Pass, Texas. You state that in view of the vague and indefinite information furnished by the examiner you are not filing ',detailed report of this matter with the United States littorney - but that if the Board should deem it advisable, .?ur r bank will file such a report upon receipt of instrucQ.ons to that effect. Irtile do not wish to give any instructions as to whether • matter referred to in your letter should be reported to 13° the United States Attorney, but it is assumed that your o!nk will handle the matter in accordance with the pro1,dure outlined in the Board's circular letter of July 8, 4 737 , which authorizes Federal Reserve Banks to exei discron in the matter of reporting misdemeanors t0 / ttihiee appropriate United States Attorney or local office Federal Bureau of Investigation." i O Approved unanimously. Letter to The Attorney General, reading as follows: R . "The bill H.R. 6269 to amend the Foreign Agents FTstration Act of 1938 was vetoed by the President on • ruarY 9, 1942, with the request that the bill be reto meet the changed conditions resulting from the "t'rY ef this country into the war. th "The Board of Governors has received a letter from wl,! President of the Federal Reserve Bank of New York in ' ".-ch he states that if it appears likely that further 502 3/17/42 -4-- Hacti-on will be taken on H.R. 6269, it seems desirable that the bill be amended so as to make clear that the Foreign Agents Registration Act of 1938, as proposed to be amended bY H.R. 6269, will not require banks to file registration ,tatements as 'agents of foreign principals'. With his ±etter he submitted copies of a memorandum prepared by uounsel for the Bank on this subject, and there is enclosed a copy of this memorandum for the consideration of your office. "The enclosed memorandum points out that H.R. 6269, In +uhe form in which it was passed by the House and Senate and vetoed by the President, might be held to affect banks Performing purely banking services for foreign depositors and customers. The reports of the committees of Congress on1 the .. bill, however, indicate that it was not the inten, 1 10n to enlarge the scope of the existing Foreign Agents 1,,egistration Act. In the circumstances, if the bill is ;0 be the subject of further action, it is hoped that v°rable consideration may be given by your office to of the Federal_ Reserve Bank of Ilew York and drld that an amendment to effect the clarification suggested may be included in the bill." j Approved unanimously. Thereupon the meeting adjourned. Secretary. APProve Chairman.
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