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A meeting of the Board of Governors of the Federal Reserve System was held in Washington on Saturday, May 9, 1942, at 11:00 a.mPRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice 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 matter s hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Federal Reserve System held on May 8, 1942, were approved unanimously. The minutes of the meeting of the Board of Governors of the Federal Reserve System held with the Presidents of the Federal Reserve on May 8, 1942, were approved unanimously. Letter to Mr. Sproul, President of the Federal Reserve Bank of 1,T “ew York, reading as follows: "Referring to your letter of May 7, 1942, regarding salaries of officers of your Bank, the Board approv es salaries at the rate of t1.0,500 per annum for Mr. Kimball at the rate of $9,000 per annum for Mr. Sanford for the 6he year beginni ng April 1, 1942. "The Members of the Board note that your directors !desire to continu e to try to evolve some procedure which al establish certain principles of executive compensation , or officers of the Bank and that you will confer with Governor Szymczak with regard thereto so that a mutually convenient time may be arranged for a conference of T 911 5/9/42 -2- "representatives of your Committee of Directors on Welfare Of Staff with the Board." Approved unanimously. Letter to Mr. Upham, Deputy Comptroller of the Currency, reading as follows: "This refers to your letters of April 25 and May 2, 1942, and the telephone conversation between Messrs. Wingfield and Cagle, and Mr. Robertson of your office. It is understood that because of an inquiry from one of Your examiners you desire to know whether it appears from the annual report filed by Transamerica Corporation with the Board as of December 31, 1941, that Transamerica Corporation has readily marketable assets of the kind and amount required by section 5144 of the Revised Statutes. "It appears from this report that as of December 31, 1941, Transamerica Corporation controlled bank stocks subject to double liability having a par value in the amount of $332,728 and controlled bank stocks not subject to double liability having a par value in the amount of ;535,486,489. The maximum reserve requirements of 25 and 12 geZec:nt of the foregoing amounts, respectively, ag%4,30,560. It also appears that as of December 31, 1941, Transamerica Corporation had cash and other readily marketable assets free and clear of any lien, Pledge or hypothecation in the amount of 4,723,480. 9f1 the basis of this report, therefore, it seems clear tht Transamerica Corporation on December 31, 1941, had he kind and amount of readily marketable assets required DIY the provisions of section 5144 of the Revised Statutes. "In connection with your suggestion that your examiner may not have had in mind the Board's ruling with eference to the consideration of cash as a readily marLrc;etable asset, attention is called to the ruling published ,n page 192 of the Federal Reserve Bulletin for March 1938. "It is believed that the above gives you the informaon that you need to answer the inquiry submitted by your miner, but if there is any further information you desire, please advise." r Approved unanimously. 91 5/9/42 -3Letter to the Presidents of all the Federal Reserve Banks, read- ing as follows: "then Amendments No. 2 and No. 3 to Regulation W were issued, a telegram was sent to each of the Federal Reserve Banks (U-108 and W-129) showing how the Amendments would affect Interpretations previously issued. "The Regulation as revised effective May 6, 1942 akes a great many changes in section numbers, in addiion to changes in substance. Accordingly, a list corresponding to N-108 and U-129 has not been sent by telegraph but is enclosed herewith." T Approved unanimously. Telegram to Mr. Swanson, Vice President of the Federal Reserve Bank of Minneapolis, reading as follows: "Your wire May 7. Last part of section 6(b) refers to a loan to retire an obligation held elsewhere whereas section lf 7\o)(l) refers to the renewal or extension of an 01?ligation held by the registrant. Regulation is not entirely explicit on this point." Approved unanimously. Telegram to Mr. tilliam Phillips, Assistant Cashier of the FedReserve Bank of Kansas City, reading as follows: "Your wire May 7 not clear. If purpose of loan is to purchase listed article, loan would not be subject to Regulation U and therefore would not be exempted by section 8(b) of Regulation W." Approved unanimously. Telegram to Mr. Clerk, First Vice President of the Federal Re- 3erve Bank of San Francisco, reading as follows: L "Your wire May 7. Your understanding is correct that on basis of Section 12(e) the principles outlined in W-19 91.3 5/9/42 -4- 11 permitting one renewal or revision of a pre-September instalment contract on any terms which Registrant would h!.ve granted in good faith in absence of Regulation continue to be applicable. Charge accounts arising before ' laY 1 are covered by sections 5(c)(1) and (2), and renewals single-payment loans made prior to May 6 are not subject to Regulation in view of first sentence of section 7(0 as interpreted by WR-1." Approved unanimously. Telegram to Mr. Hale, Vice President of the Federal Reserve Bank of San F rancisco, reading as follows: "Your letter April 16 regarding T-100. Requirements of section 4(d) of revised Regulation will be met if Statement of Transaction is given promptly to obligor, irrespective of whether it is given by seller or by some other Person e n Approved unanimously, together with a letter to the Presidents of all the Federal Reserve Banks quoting the text of the above telegram. Thereupon the meeting adjourned. Secretary. Chairman.
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