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531 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Tuesday, March 22, 1949. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman pro tem. Szymczak Draper Vardaman 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 /'ederal Reserve System on March 21, 1949, were approved unanimously. Memorandum dated March 21, 1949, from Mr. Thomas, Director the Division of Research and Statistics, recommending that 414E1.11 W. Hinshaw, a member of the Economic Policy Section of that Division, be authorized to attend meetings of the Country '1.115.nce Officers of the Economic Cooperation Administration to be held in Paris April 4-5, 1949, and that while in Europe Mr. Hinshaw he authorized to visit Geneva and London (and probably Oxford and earilbridge) for the purpose of conferring with experts on problems °I' exchange rates and related matters, the entire trip requiring 41)Pl'0ximately three weeks time. The memorandum also recommended 144t, in conformity with the present provisions in the Standardized GQ\rernment Travel Regulations, Mr. Hinshaw be granted a per diem "$10 during the period he is in Paris, Geneva, and London. Approved unanimously. 532 3/22/49 -2Memorandum dated March 21, 1949, from Mr. Bethea, Director c3f the Division of Administrative Services, recommending that the blisic annual salary of each of the following employees in that Dibe increased as shown below, effective April Name Salary Increase From To Title John Blash ternard W. Larson tlizabeth M. Young Anria M. Utz elliamin L. Dinkins Maintenance Mechanic Operating Engineer Charwoman Charwoman Operator (Mim.) 3, 1949: $3,601.80 $3,727.20 3,601.80 3,727.20 2,284.00 2,350.00 2,152.00 2,218.00 2,086.00 2,152.00 Approved unanimously. Letter to the Honorable Frank Pace, Jr., Director of the 1111reala of the Budget, reading as follows: "Enclosed are four copies of a report which the Board submitted to the House Committee on Banking and Currency on March 17, 1949, concerning H. R. 1161, a bill 'To provide for the conversion of national banking associations into and their merger or consolidation with State banks, and for other purposes'. This report was submitted after clearance with your office by telephone. "The Board is today submitting to the Senate Committee on Banking and Currency a similar report on S. 101, a companion bill of H. R. 1161. The report is identical with the proposed report on S. 101 which was enclosed with the Board's letter to you dated February 23, 1949." Approved unanimously, together with letter to the Honorable Burnet R. Maybank, Chairman of the Committee on Banking and Currency, United States Senate, which is similar to letter to the Honorable Brent Spence, Chairman of the Committee on Banking and Currency; House of Representatives, approved by the Board on March 17, 1949. 533 3/22/49 Letter to Mr. Sheehan, Chief Examiner at the Federal Reserve Bank of New York, reading as follows: "Reference is made to your letter of March 15, 1949, enclosing a certified copy of a resolution adopted by the Board of Directors of the Center Moriches Bank, Center Moriches, New York, signifying its intention to withdraw from membership in the Federal Reserve System and requesting waiver of the six months' notice of such withdrawal. "As requested the Board of Governors waives the requirement of the six months' notice. Accordingly, Upon surrender of the Federal Reserve Bank stock issued to the Center Moriches Bank, Center Moriches, New York, you are authorized to cancel such stock and make appropriate refund thereon. It is noted that the bank is arranging to apply for continuance of deposit insurance after withdrawal from membership. If such action is taken, the bank will have four months from the date of this letter in which to effect withdrawal. (F.R.L.S. #3548) "Please advise when cancellation is effected and refund is made. The certificate of membership issued to the bank should be Obtained, if possible, and forwarded to the Board. The State banking authorities Should be advised of the bank's proposed withdrawal from membership and the date such withdrawal becomes effective." Approved unanimously. Letter to the Presidents of all Federal Reserve Banks, as follows: "With the thought that you might be interested in them, I am enclosing two sets of the background memoranda regarding Regulation W, prepared by the Board's staff last month for use in connection with consideration of Regulation W matters and in preparation of testimony before Congressional committees. "You will note that the memoranda were prepared for Board and staff use only and are not for publica' tion., Approved unanimously. 534 3/22/49 Letter to Mr. Slade, Vice President of the Federal Reserve 8a4k of San Francisco, reading as follows: "This refers to your letter of March 3, 1949, and its enclosure, raising certain questions under Regulation W. These questions also were referred to in your telegram of March 8 and our telegram of March 17. "One question concerns a proposal that a Registrant who sells an automobile and who also sells to the purchaser of the automobile either public liability and Property damage insurance or fire, theft, collision or Other casualty insurance, arrange the credit covering such insurance for repayment in instalments subsequent to repayment of an instalment obligation arising from the sale of the automobile. "The other question concerns a proposed agreement between a Registrant who sells an automobile and the Purchaser thereof to the effect that the Registrant, during the life of an instalment credit covering the automobile, will extend instalment credit for repairs to the automobile and for gasoline to be repaid following repayment of the credit covering the purchase price Of the automobile. It appears that such additional credit either would be written as a part of, or as an amendment or supplement to, the obligation covering the automobile. "The Board is of the view that these questions, resPectively, are covered by W-49 and W-50 (Regulation W Service, No. 304 and No. 305). The credit for insurance and repairs or gasoline sold at or about the time of the Purchase of the automobile to which they relate must be treated in conformity with W-49 or W-50, as the case may be. Nonconforming credit sales at a subsequent date would be in violation of the regulation if made pursuant to or as a result of any agreement, arrangement, or understanding therefor at the time of the sale of the automobile. "The Board appreciated receipt of the advice in your telegram of March 8 concerning the investigation of the Xslley Kar Company. It would appear that the reinvestigation of such company that you planned may now be definitely scheduled." Approved unanimously. 535 3/22/49 -5Memorandum dated March 211 1949, from Mr. Carpenter stating that replies had been received from the representative members of the Federal Open, Market Committee in response to the Board's reqUest for their comments and suggestions regarding the policy tecord of the Federal Open Market Committee covering the year 1948, and recommending that the revised draft of the open market 11°1103' record attached to the memorandum be approved with the undetstanding that it would be published in the appendix of the 4133113AI report of the Board for 1948. Approved unanimously. %roved: Chairman pro tem.
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