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698 A meeting of the Board of Governors of the Federal Reserve SYstem _ wad held in Washington on Wednesday, May 3, 1944, at 1100 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak 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 herein4.jr'tr referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pede-_, Reserve System held on May 2, 1944, were approved unanimously. sion Memorandum of this date from Mr. Smead, Director of the Divi— of Bank Operations, recommending, with the concurrence of Mr. 11111ger, Director of the Division of Examinations, that Mortimer B. baniels, Technical Assistant in the Division of Bank Operations, be e°flirrlis aioned a Federal Reserve Examiner for the balance of the year 190,, e ffective May 4, 1944. By unanimous vote, Mr. Mortimer B. Daniels was appointed for the balance of the year 1944 as an examiner to examine Federal Reserve Banks, member banks of the Federal Reserve System, and corpora— tions operating under the provisions of sections 25 and 25(a) of the Federal Re— serve Act, for 11 purposes of the Federal Reserve Act and of all other acts of Congress pertaining to examinations made P0 ) 17 , 5/3/44 -2-by, for, or under the direction of the Board of Governors of the Federal Reserve System, and was designated as a Federal Reserve Examiner, with official headquarters at Washington, D. C., and with no change in his present basic salary at the rate of $5,400 per annum, all effective May 4, 1944. Letter to Mr. Swanson, Vice President of the Federal Reserve Bank or Minneapolis, reading as follows: "In accordance with the request contained in your ?.tter of April 29, 1944, the Board approves the designalon of Wm. In. A. O'Brien as a special assistant examiner for Lhe Reserve Bank of Minneapolis, with the understariding, of course, that he will not be transferred pertly to examination work without the Board's prior a pproval." Approved unanimously. Letter to the board of directors of the "American Bank and Trust C°DrPa n tlY 1 Racine, Wisconsin, stating that, subject to conditions of mem--'"P numbered 1 to 6 contained in the Board's Regulation H, the Board appro " 8 the bank's application for membership in the Federal Reserve .tdern and for the appropriate amount of stock in the Federal Reserve ' -4 of Chicago. Approved unanimously, together with a letter to Mr. Young, President of the Federal Reserve Bank of Chicago, reading as follows: tem a"The Board of Governors of the Federal Reserve SysPProves the application of the 'American Bank and ' rust Company', Racine, Wisconsin, for membership in the ; 5/3/44 —3— "Federal Reserve System, subject to the conditions prescribed in the enclosed letter which you are requested to forward to the Board of Directors of the institution. Iwo copies of such letter are also enclosed, one of which is for your files and the other of which you are requested tO forward to the Chairman, Banking Commission for the State of Wisconsin, for his information. "It is understood that in the State of Wisconsin trust funds deposited in the banking department of a bank are preferred claims in the event of liquidation of the bank. T herefore, you are authorized, in accordance with the general authorization previously granted by the Board, to waive compliance with condition of membership numbered 6 until further notice. "It is assumed that you will follow the matter of the -ank's bringing into conformity with the provisions "law and the Board's regulations the savings account mentioned on page 16 of the report of examination for membership. , "The volume of trust business administered by the has been relatively small, precluding, in the examner s opinion, the necessity for set policies and organsIziation. However, the affairs of the trust department °111d, of course, be administered and supervised in ac:°rdance with accepted standards and it is assumed that 213.Fopriate suggestions with respect to application of 'iT14-Lective judgment in administration and proper record ereof will be made in the regular course of supervision." I Letter to the "First-City Bank & Trust Company", Hopkinsville, W, reading as follows: a, "The Board is glad to learn that you have completed -1 . ; arrangements for the admission of your bank to the Fed , 1 eral Reserve System and takes pleasure in transmitting 4erewith a formal certificate of your membership. ce. It will be appreciated if you will acknowledge relpt of this certificate." Approved unanimously. 701 5/3/44 —4— Letter to the Presidents of all the Federal Reserve Banks, read— a5 follows: "For your information there is enclosed a copy of a War Department memorandum, dated April 28, 1944, signed Colonel Paul Cleveland, Chief, Advance Payment and .1oan Branch, regarding a communication received by the ederal Reserve Bank of New York from a financing insti— tution in connection with a special provision to be con— tained in a Regulation V loan agreement." IDY Approved unanimously. Letter to Mr. Baker, Assistant Cashier of the Federal Reserve 8ank of Minneapolis, reading as follows: "This is with reference to your recent letter asking !bout the status of temperature control equipment under negulation W. "For purposes of classification under section 13(a), which specifies the articles to be considered aL. 'listed art within the meaning of the regulation, temperature -L equipment would be included as within the scope Group C when attached to a heating system in an exist— residentiel structure if the deferred balance of the coredit does not exceed t1,500. It would be an improvement 11 real property since it becomes a part of the heating sYstem. installnda case where the temperature control equipment is e by itself and is financed by instalment credit of the deferred balance does not exceed $1,500, there Would ould be no down payment required and the maximum maturity Wouldn be 12 months. In some instances, however, the temperature control enui pment is installed at the same time as a furnace. Un— such circumstances, it is treated as an accessory (see By virtue of section 20) the cash price of the urnace includes the cash price of the accessory and the down be Payment for instalment credit on the whole job would One—third. There is no dollar limit on such credit ex— at which is implicit in the fact that no furnace 702 5/3/44 -5"having an actual net output of more than 240,000 B.T.U. Per hour is subject to the regulation (see W-51). . "Section 8(m) as recently amended may be applicable. This would exempt the repair of temperature control equipment or its replaceme nt if worn out, damaged beyond repair, or destroyed. It would also exempt the installation of temperature control equipment if carried out at the same time as the installation of a furnace to replace a furnace worn out, damaged beyond repair, or destroyed, whether or not the replaced furnace had temperature control equipment. :But the installation of temperature control equipment by itself would not be considered to be a repair and so would not be within the scope of section 8(m)." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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