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t Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, May 8, 1952. The Board met in "ecutive session in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Evans Powell Mills Robertson After the meeting Chairman Martin informed the Secretary that the following actions were taken during the executive session: Unanimous approval was given to the recommendation contained in a memorandum dated May 7, 1952, from Chairman Martin reading as follows: "In accordance with recent discussions, it is recomr!ended that the Board approve the appointment of Robert H. uraft as Technical Consultant to the Board for a period of aPProximately four months beginning May 19, 1952, for the Pose of making a study of the organizational structure and functioning of the market for United States Government ”curities particularly with reference to the operations of '41e Federal Open Market Committee. "It would be understood that Mr. Craft would remain r1 the ?outPay roll of the Guaranty Trust Company of New York that he would be reimbursed by the Board for actual necessary travel expenses incurred by him while he is in a.travel status on official business in connection with s work as Technical Consultant in accordance with the Provisions of the Boardts official travel regulations apPllcable to members of the Board, except that it would /:lot be required that his vouchers set forth such expenses detail or be supported by hotel and other receipts. ' Lnezmuch as Mr. Craft would return to his home for week! lids, it would be understood that the travel to and from "OW York for this purpose mould be regarded as official travel." F.,I 5/8/52 -2Unanimous approval was also given to a recommendation contained in memoranda dated April 28, 1952, and May 7, 1952, from Mr. Young, Director of the Division of Research and Statistics, that, for the reasons outlined in the memoranda, the Board authorize participation with the Department of Commerce and the Economic Stabilization Agency in financing the collection and tabulation by the Federal Trade Commission and the Securities and Exchange Commission of financial statements of trade corporations, the cost of the program for another year to be approximately 00,000 of which $10,000 is to be supplied by the Board. The action was taken with the understanding that this additional expense was not provided for in the 1952 budget of the Division of Research and Statistics and that approval of the recommendation would not constitute a precedent for future action or an indication that the Board would be willing to participate in financing the program for a further period. Pursuant to action taken by the Board on October 15, 1951, and a3 rePorted by Governor Powell at the meeting on November 270 1951, there had b een discussions by a committee representing the Federal bank super- 1'18°17 agencies and the State bank supervisors of actions that might be take,, . " with respect to certain supervisory matters such as the charterof banks, approval of establishment of branches, examination of banks, 4leth°ds of obtaining adequate bank capital, and methods of improving bank a" and control methods. A subcommittee had been appointed to draft a Nport cn these matters for submission to the principal committee, and 5/8/52 —3— wider date of April 28, 1952, Governor Powell distributed among the members of the Board a draft of report prepared by the subcommittee. Governor Powell's memorandum commented that, while the report was not in final form and had not been formally accepted by the full committee, it was understood that the scope and language were apt to be changed very little by the full committee, and that for his guidance in the final meeting of the full committee he would appreciate a discussion of the draft of r report at a meeting of the Board. The members of the Board agreed that, for the purpose of further discussion by the full committee, the report was in satis— factory form. Unanimous approval was given to an informal request from Yr. Vernon L. Clark, National Chair— man of the United States Defense Bond Program of the Treasury, that the Board pay the cost (approxi— mately $600) of a dinner to be given by the Treasury on Monday, May 12, for the State Savings Bond Chairmen and about 30 other key volunteer savings bond workers who would be in Washington on that day in connection with the formulation of plans for the sale of new savings bonds recently announced by the Secretary of the Treasury. The reasons for this action by the Board were the same as those Which prompted similar action in 1951. It was agreed unanimously that, subject to the receipt of an anticipated formal request from the Mutual Security Agency, the Board would make avail— able to that organization, for a period estimated at approximately tgo months, but in no event more than three months, beginning the middle of May 1952, 5/8/52 -4the services of Mr. Marget, Director, Division of International Finance, in order that Mr. Marget might serve as the United States representative on a five-man team of experts to conduct for the Organization for European Economic Cooperation a general examination of the internal financial situation of its member countries. In taking this action it was understood that Mr. Marget would remain on the pay roll of the Board during the period of the special assignment, but that all subsistence, travel, and other expenses would be paid to him direct by the Mutual Security Agency, and that, in carrying out this assignment Mr. Marget would serve as a technical expert under the direction of the Mutual Security Agency rather than in his capacity as an official of the Board. In connection with the above action, the Board also agreed unanimously that, by arrangement with the Mutual Security Agency, Mr. Marget should attend the annual meeting of the Bank for International Settlements, at Basle, Switzerland, as a representative of the Board, with the understanding that if this attendance involved expenditures not connected with Mr. Marget'a work for the Mutual Security Ageacy, those expenses would be paid by the Board in accordance with the Board's travel regulations, as supplemented by the standardized Government travel regulations. Following the executive session, Messrs. Carpenter, Secretary, allots Precher, Assistant Director of the Division of Personnel Adminis- trat, ''n, were called into the meeting and the following actions were t ken: In accordance with an informal request of the Board, Governor 4114 had given consideration to the question whether further additions shoulA be made to Federal Reserve Bank reserves for contingencies and 5/8/52 before this meeting he had sent to each member of the Board a memorandum dated may 7 1952, which set forth reasons for the conclusions that (1) there would appear to be no need at this time to resume additions to Federal Reserve Bank reserves for contingencies, it being understood that such additions could be made at such future date as policy might seem to dictate, and (2) there was no good reason to transfer to the slaTius accounts of the Federal Reserve Banks any portion of the amounts now held in reserves for contingencies. These conclusions were approved unanimously, Governor PoweD stating that while he approved he felt it was important that the contingency reserves of the Reserve Banks be large enough so that if market prices on securities held in the System Open Market Account declined substantially, there would be no hesitancy to sell such securitiea when necessary to carry out System credit policy. Governor Szymczak referred to discussions during the last few real ' s of the problem of policy and procedure in connection with the investrae, 4 of funds of the Retirement System of the Federal Reserve Banks anti to the informal action taken by the Board in appointing a committee ecnsi.. , 'ang of Governors Szymczak, Powell, and Vardaman to study the m atteli and make a recommendation to the Board. During one of the meetings Of the committee, Governor Szymczak said, Governor Vardaman suggested that Gov.'411ors Powell and Mills as two of the newer members of the Board make 5/8/52 -6- a flea study of the matter and submit a recommendation to the full committee• Governor Szymczak added that in accordance with this request a report was prepared by Governors Powell and Mills under date of April 29) 1.952, reading as follows: "FINDINGS ON RETIREMENT SYSTEM OF THE FEDERAL RESERVE BANKS AND THE BOARD OF GOVERNORS ,., The undersigned members of a special Board committee, with counsel of Governor Szymczak, S. R. Carpenter, George Vest, :right Allen, and Gerald U. Conkling, have reviewed the Retire_ent System of the Federal Reserve Banks and the Board of Goverl_lors. The review has found that both the conditions of employeeemployer particdpation and the operating methods now in use by . cle Retirement System of the Federal Reserve Banks and the Board Governors are in keeping with the purposes for which it was ablished and the responsibilities of the Board of Governors and r athe Federal Reserve Banks. The review did not examine the tleltnarial aspects of the Retirement System other than to validate Noe ,!normal contribution' principle which is essential thereto. „ cuange is presently recommended from the general practices that are nin vogue. SPECIAL CONSIDERATIONS Le al and moral basis for Retirement Systen. pe_, It is believed that there is adequate legal authority for the thueral Reserve Retirement System and, moreover, the legal basis of ti e System has been strengthened by the long history of its operas'°nwithout challenge. The 'normal contribution' principle of the s',, Ystem ts operation has similarly produced a 'built-in' moral reFt4n e sibility for its continuance by the Board of Governors and the 1„deral Reserve Banks that must be respected. However, this moral sPonsibility does not extend to a continuance of the System in 4e face of uncontrollable circumstances. In such event, the Fedal _ Reserve Banks and the Board of Governors hold adequate authority d iscontinue their contributions to the System. In the case of such 4!continuance of contributions or the termination of the Retirement f;:tem, reference is made to Section 9 of the Rules and Regulations a specific definition of employee member rights as to previously 'f r J 5/8/52 _7_ accumulated amount of any reserve held on his contributions and to the account in the System. It is not believed that the Rules and Regulations need rnendment further to disclaim responsibility by the Federal Aeserve Banks and the Board of Governors. As long as the Present policy with respect to the 'normal contribution' contrues, it is very unlikely that under ordinary conditions would be any in the reserves of the rarement system. substantial deficit If, as the result of uncontrollable circumtan?es or a or doPre?iation incatastrophe there were a substantial loss the deficit Retirement assets the System of or a in earnings, the Rules and clear that Regulations make it the n'e Bo Board of Governors and the Federpl Reserve Banks, which ;:4teady would have made the contributions called for by the _ LLie and Regulations, are not required to continue their (121rt lelPation in the Retirement System but could withdraw. ti°Y would then not be required to provide further contributh°rT to make good the deficit (DI' the loss and the members of the ttetirement System would not be justified on the basis of lq,!, Rules and it in expecting that the Board and the lcs ne cessarily would do so. sum contributions 'normalrary to the recognized responsibility for continuing 13, contributions' to the Retirement System fund, it is not r'ITeved that the same responsibility attaches to making any cortniumP sum contributions. Any new proposal for a lump sum ution, whether arising from insufficient earnings, losses on s be .7. uein investments, or proposed increases in benefits, would iihOpiected to careful scrutiny at the time, especially as to Res "ler such action could be construed as a proper use of Federal Em .rite funds. contributions m,, 4dequate legal authority supports the present plan of employeesiderd-c contributions to the Retirement System fund which is ?en busined satisfactory and follows a pattern commonly used by private ) ,8s• Unlike the Civil Service Retirement System, the Federal Rese4 set °Pe-ve Retirement System is not based on a statute which prescribes oper rating and investment practices. It is b -31ieved that the be e-''°n of our System as a private trust is desirable and should ontinued in its present general form. z ; 5/8/52 -3- No change is recommend ed in the Retirement System's investment Policy which vests management of its investment funds with a corporate trustee subject to the approval of its Investment Committee and Board of Trustees. Whatever question might be raised With re spect to the advisability of vesting full discretionary authority in a corporate trustee in order to relieve he :le Investment Committee and Board of Trustees of arduous re_ ZPonsibilities is disposed of by the fact that final legal responsi1litY for the investment of the Retirement System's funds is re1,0' sed in these two groups and cannot be delegated . ,. Existing investment policy providing for reasonable diversi?-?atio n between U.S. Government securities, fixed-interest corporate gations preferred stocks, and common stocks is considered aprTI?riate. Common stocks are looked upon as desirable investment vent subject to a judicious investment program calculated to pre"' an overconcent ration of such investments. syst An investment program limiting the investment of Retirement sideem funds exclusively to U.S. Government securities is not Conbe appropriate. Such a limitation, besides voiding tir ' inoo;: P es of investment diversification, would depress the fund s Yield to its actuarial disadvantage and would be contrary to e Policy of operating the System as a private trust. ment e Cl:! lle nien is against any policy of retaining a single investthe T -vert or investment counsel, subject to the authority of Reti;nvestment Committee and Board of Trustees, to manage the nt mater?' System funds even though equipped with the necessary and ilal and staff on which to base investment recommendations; form ;in favor of the continued retention of the corporate trustee that .°.r investment management of the Retirement System funds, in to be4-, ; 1 effers, besides the virtue of permanency, the advantages trai,:frived from the pooled investment judgment of a staff of investment experts. (signed) Oliver S. Powell (signed) A. L. Mills, Jr." t Governor Szymczak stated that suggestions had been made that (1) the re Port referred to above be sent to counsel for the Retirement System the PurP°se of ascertaining whether he concurred in the conclusions 5/8/52 -9- reached on the legal questions referred to in the report, and (2) consideration be given to the questions whether, in the light of discussions of the matter by the Board and the Presidents* Conference, the report should be submitted to the Presidents of the Federal Reserve Banks, whether it should be submitted to all members of the Board of Trustees °f the Retirement System, and whether some effective means should be found to convey to the members of the Retirement System, as confirmation c)f a Point already understood, the substance of the conclusion in the rnemorandum that the Federal Reserve Banks and the Board of Governors were riot legally bound to make good any substantial deficits that might occur i4 the reserves of the Retirement System. It was agreed unanimously that the memorandum should be sent to counsel of the Retirement System for the purpose referred to and that Governor Szymczak would discuss with Mr. Earhart, Chairman of the Board of Trustees, or Mr. Williams, Chairman of the Executive Committee, of the Retirement System, the question of the distribution of the report and whether the members of the Retirement System should be informed of the conclusions in the report with respect to the legal responsibility of the Federal Reserve Banks and the Board of Governors to make good any deficits in the reserves of the Retirement System should such deficits occur. Consideration was then given to proposed salaries for officers at the Federal Reserve Banks Of St. Louis, Minneapolis, Kansas City, and Dallas for the year ending May 31, 1953, and letters to the Federal Reserve Banks of St. Louis and Minneapolis were approved unanimously as follows: 5/8/52 -10- Letter to Mr. Dearmont Chairman Federal Reserve Bank of St. Louis "Reference is made to Mr. Weigel's letter of April 25, 1952, submitting proposed salaries for the officers of the Federal Reserve Bank of St. Louis and its Branches. "The Board of Governors approves the payment of salary to mr. D. c. Johns as President of the Federal Reserve Bank of St. Louis at the rate of $251000 per annum for the period June 1, 1952, through May 31, 19S3, and to Mr. 0. M. Attebery Felmoli dice President at the rate of $18,000 per annum for Period June 1, 1952, to the date of his retirement on 31, 1952, provided these rates are fixed by your Board of Directors. "The Board of Governors also approves the payment of salto FY the following officers at the rates indicated which have eon , u fixed by your Board of Directors, for the period beginning ' June 1, 1952, through May 31, 1953: Annual Salary Eglie Title Frederick L. * 13,000 Deming Vice President .ele M. Lewis 11,500 Vice President 4m. E. 16,000 Peterson Vice President H. H. Weigel 11,500 Vice President & Secretary J. c. wotawa 11,500 Vice President Earl Et, 8,500 Billen Assistant Vice President John J. Christ 8,700 Assistant Vice President J. H. Gales 10,000 Assistant Vice President 1;_' N. Hall 8,000 Assistant Vice President 0. 8,300 Hollocher Assistant Vice President Ge°rge W. Hirshman 7,500 General Auditor Little Rock Branch 12,000 Stewart Vice President & Manager 6,000 Manager Assistant Clay Childers 5,800 Assistant Manager Clifford Wood 61800 Assistant Manager Louisville Branch C. A. 12,000 Schacht Vice President & Manager L. K. Arthur 6,500 Manager Assistant Fr T ed Burton 8l000 Assistant Manager S. Moore 6,000 Assistant Manager Branch Memphis Paul E, 11,000 Vice President & Manager S. K. Schroeder Belcher 7,000 Manager Assistant H. C. Anderson Manager 6,000 Assistant C. E. Martin 7,500" Assistant Manager J. 5/8/52 -11- 1411aLIZ.11E1_12Lan4.2resideaLLELellEaljaEave Bank of Minneapolis "Reference is made to your letters of January 22, 1952, and April 281 1952, submitting salaries for the officers of the FedReserve Bank of Minneapolis which have been approved by your Board of Directors for the year beginning June 1, 1952. The Board of Governors approves the payment of salary to you as President of the Federal Reserve Bank of Minneapolis at the rate of $251 000 per annum and to Mr. A. W. Mills as First Vice President at the rate of $181000 per annum for the period June 1, 1952, through May 311 1953. "The Board of Governors also approves the payment of salary to the following named officers at the rates indicated for the period June 11 19521 through May 311 1953: Name Annual Salarir Title H. C. Core $ 11,500 Vice President E. B. Larson 11,500 Vice President 2tis R. 15,000 Preston Vice President . G. 151000 McConnell Vice President a. H. Strothman, 11,000 Jr. Vice President ?igurd Ueland13,500 Vice President 84. Counsel R. Larson 9,000 Assistant Vice President ement A. Van Nice Assistant Vice President 9,000 11.• K. OSSU PM 7,500 Assistant Cashier A.W. Johnson 8,000 Assistant Cashier Rilliam E. 8,000 Chris Ries Peterson Assistant Cashier 8,000 Cashier Assistant Geo 7,500 orsla..il ehtckw ll Assistant Cashier Me r 7,000 Cashier Assistant lp E. Lysen 9,000 Operating Research Officer .,,_ Marvin 11,000 Peterson Director of Research 101000 s d,zaP arsons Associate Director of Research arviksItl 9,000 Auditor Branch Helena TC4. W. $ 11,000 Groth Vice President ,,• A. 71500" Berglund Assistant Cashier 1P The proposed increases in salaries for officers of the Federal Reserve Banks of Kansas City and Dallas 2ad been submitted by the Banks on an informal basis 17 the purpose of ascertaining whether there were any "Jeetions on the part of the Board before the proposed 5/8/52 -12salaries were voted on formally by the boards of directors of the respective Banks. It was agreed unanimously that Mr. Caldwell, Chairman of the Federal Reserve Bank of Kansas City, would be advised by telephone that the Board would be willing to approve the salaries as proposed except that the $7,300 of increases proposed under the 10 per cent formula would have to be reduced to not to exceed the $6,000 still available under the salary stabilization regulations. It was also agreed unanimously that President Gilbert, of the Federal Reserve Bank of Dallas, would be informed by telephone that the Board would be willing to approve the salaries of officers as proposed except that it would not be possible under the salary stabilization regulations to regard vice presidents in charge of the branches as being in the same salary category as vice presidents located at the head office and that, therefore, the proposed increase of $1,000 in the salary of Vice President Holloway, in charge of the Houston Branch, could not be approved at this time. At this point Mr. Sprecher withdrew from the meeting. The following recommendations contained in a memorandum dated April 28, 1952, from Mr. Bethea, Director of the Division of Administrative Services, were approved unanimously with the understanding that a notice would be sent to all employees of the Board in a form attached to the memorandum: 1. That the Board authorize additional income tax withholding: a. Upon written request of the employee. b. In a minimum amount of $5 and multiples of $1 above the minimum for each pay period. 2. That such additional withholding become effective With the first pay period which begins after receipt of the written request. 3• That either the Board or the employee, by furnishing written notice to the other, may terminate the agreement effective as stated in 4 below. 5/8/52 -13That such additional withholding shall not be changed or cancelled except with the first payment of salary made on or after January 1 and July 1 of each year which occurs 15 days after date of written notice. The meeting then recessed and reconvened at 3:00 p.m. with the 4118 attendance as at the end of the morning session except that Mr. 1°wIlsend, Solicitor, was also present. At the request of the Board, Mr. Townsend stated that there an important question for determination by the Board as to the policy to b_ followed with respect to pending cases of violation of Regulation C°t1s1imer Credit, on which, except for the suspension of the regulation " became effective yesterday, some punitive action would appear to be called for. He said that he tplked with a representative of the DePartM0114. of Justice yesterday and was informed that the conclusion had been reached (which conclusion WAS confirmed in a further conversation tOd '" that the Department would not take the position that the Board —Jut not refer any further cases to the Department for possible crimiPros ecution. He made the further statement that in addition to the c4ses already sent to the Department of Justice, there were in the Office or the Solicitor at the present time approximately 55 pending cases, that -"der the procedure followed in the past perhaps as many as 10 of these eases would call for punitive action, and that, since it was no 5/8/52 -14- 1°11ger possible to suspend a registrant's license or to seek an injunction 4. " prevent further violation of the regulation, the only possible e°11-rse of action was a reference to the Department of Justice, and the glIcstion was whether the Board would wish to follow that course. He went on to say that there was also the question whether the Federal Reserve Banks should continue their investigations of possible violations, ther ‘ they should suspend all further investigations including customer contacts, letters to registrants and conferences relating to possible vicaati °119, and whether they should send to the Board pending cases which in the ir ()Pinion should be referred to the Department of Justice for ellxilinal prosecution. He added that the simplest solution would be to ternlinate all enforcement activities, that provisions of the Defense Production Act gave the Board discretion as to whether it would refer eases to the Denartment of Justice, and that while the Board had responsibIlity under the law to see that the regulation was enforced, he did not thirlic the Board would be severely criticized if it discontinued all enl'°.l'eellient activity, particularly in view of the fact that the alternative e0 s es of injunctive proceedings and suspension of licenses ',rare no 1°11ger a vailable. He observed that with the suspension of the regulation w°111d be almost impossible to obtain a conviction for a violation h occurred before suspension and that the Board would be justified in 5M2 -15- weighing that situation in its decision whether to continue further enforcement activity. Various alternative courses of procedure were considered during Which a majority of the members expressed the opinion that in View of the Position taken by the Department of Justice all pending cases which aPPeared to be of the kind that would be considered by the Department °II justice under the procedure now in effect should continue to be reSO the Department would be in a position to determine whether orlim 'hal prosecution should be instituted. A minority of the members felt, however, that considering all the circumstances the Board would be justified in terminating immediately all enforcement activities. At the conclusion of the discussion it vas agreed unanimously that the following telegram should be sent to the Presidents of all Federal Reserve Banks, that the Solicitor's Office should continue to prepare for submission to the Department of Justice cases now pending in that Office in the same manner as in the past, except that for a period of 30 days no cases would be submitted to the Department, that in the meantime Mr. Townsend would discuss the problem further with the Department for the purpose of ascertaining the more considered views of the Department as to hog pending cases Should be handled, and that at the end of the 30-day period the Board would determine in the light of developments what its policy should be: "Board today decided that all investigations under egulation W, at whatever stage they may have progressed 5/8/52 -16- "in individual cases, be terminated forthwith. No further conferences should be had with or letters sent to registrants respecting violations of the Regulation. Hoaever, enforcement cases already wholly or Partially completed Should be processed at the banks in the regular way, and such of those cases as would normally be referred to the Board in accordance with the Board's letter of January 18, 1952 (S-1430; W-179) should be referred to the Board as usual." Mr. Townsend stated that in order to process expeditiously the of violation of Regulation W which were now pending in his Office ea' " s a"which would be received from the Federal Reserve Banks in accordance lifith the above action, it would be necessary for him to borrow an attorn"rom one of the Federal Reserve Banks and that he would submit a Nuest to the Board shortly for authority for such an arrangement. The folloaing suggested topics for discussion at the joint meeting of the Federal Advisory Council and the Board of Governors on May 20, 1952, were approved unanimously; 1. prospects over the next What are the business and economic six months? What suggestions does the Council have with respect to System credit policies during that period? , 2. What effect is Regulation X having in the economy the Present time and what, if any, action should the Board °lice with respect to liberalization or suspension of the re gulation'? 3. The Board would appreciate any comments that the Council might wish to make relating to the bank holding -?°mPanY legislation discussed in Chairman Martin's recent -Letter to Congressman Spence, Chairman of the House Banking and Currency Committee, 4. The Board will also be glad to consider with the Council any questions which the members of the Council might Kr/ 5/8/52 -17- have with respect to the study of the check collection system being undertaken under the auspices of the Federal Reserve System with the cooperation of the American and Reserve City Bankers Associations. 5. That legislative or other actions might be taken '?() improve the capital positions of banks and encourage increases in bank capital including actions that might be suggested by the study of excess profits taxes of commercial ?anks? For example, what should be the attitude toward the issuance of preferred stock or capital debentures by member oanks as a means of raising new capital? 6. Do the members of the Council have any comments on or suggestions with respect to the Patman hearings? At this point Mr. Townsend withdrew from the meeting and the following additional actions were taken: Minutes of actions taken by the Board of Governors of the Federal Reserve System on :day 71 1952, were approved unanimously. Telegram to Mr. McConnell, Vice President, Federal Reserve Bank Of mi nnsapolis, reading as follows: "Reurtel May 8. Board approves designation of Donald Keep ‘, 4-e and Richard C. Timmerman as special assistant examiners -Lor the Federal Reserve Bank of anneapolis." Approved unanimously. Letter to Dr. James J. O'Leary, Director of Investment Research, kfe Insurance Association of America, 488 Madison Avenue, New York, 4 Y.) reading ' as follows: connection with the suspension of the Voluntary ,,a'sdit Restraint Program, the National Voluntary Credit "straint Committee recommended, and the Board of Governors approved, continuation of the special statistics reported 488 5/8/52 -18- "in connection with the Program. The Board, accordingly, is requesting the further cooperation of your Association in collecting monthly insurance company commitment and acquisition data for the institutions presently particiPating in making such information available. We would appreciate your advising these institutions that the Board Of Governors hopes that they will be willing to continue to provide this information. The Board is similarly requesting cooperating commercial banks to continue their ,vfeekly reporting of changes in outstanding business loans °Y broad industry grouping. . In extending the collection of these data, some modification or simplification of reporting may be advisable. For instance, the classification of commitments and acquisitions by purpose might appropriat ely be dropped at this time. Your cooperating institutions may wish to Offer still other suggestions, and it would be helpful to ascertain their views." Approved unanimously. Memorandum dated May 71 1952, from Mr. Hooff, Assistant Counsel, 3111mending that there be published in the Law Department of the May 1.311€3 of the Federal Reserve Bulletin a statement in the form attached Ivith respect to the suspension of Regulation W, Consumer Credit. Approved unanimously.
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