The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1891 Minutes of actions taken by the Board of Governors of the Feder 41 Reserve System on Friday, November 12, 1948. PRESENT: Mr. Mr. Mr. Mr. Szymczak, Chairman pro tem. Draper Evans Vardaman Mr. Carpenter, Secretary Mr. Thurston, Assistant to the Board era] . Re Minutes of actions taken by the Board of Governors of the FedStem on November 10, 1948, were approved unanimously. Telegr ms to the Federal Reserve Banks of Cleveland, Richlet(1) Chi a, statirigt : HQ°) St. Louis, Minneapolis, Dallas, and San Francisco wit the Board approves the establishment without change by the Noterriberederel Reserve Banks of Cleveland and San Francisco on 9, 4a 01140 bY the Federal Reserve Banks of Chicago and Minneapovenib" 102 1948, and by the Federal Reserve Banks of Iltehni°11% St. L dtp„ I Minneapolis, and Dallas today, of the rates -e°unt anA --- Purchase in their existing schedules. Approved unanimously. tor of Metoranduln dated November 8, 1948, from Mr. Thomas, Directhe Dsi°11 of Research and Statistics, recommending the 413Pointtaent of' that Mrs. Anne Campbell Sencindiver as a draftsman in 'with DivAsion) on a temporar y basis for a period of three months, haste S alary at 4 or the rate of $3,727.20 per annum, effective the date upon Which she enters upon the performance of her k 2' A 11/12/48 -2- after having passed the usual physical. examination. Approved unanimously. Memorandum dated November 9: 1948, from Mr. Millard, Direct°r of the Division of Examinations, recommending that, effective 48 of the date upon which he enters upon the performance of his dIA4es after having passed the usual physical examination, Robert 0.Masters be a ppointed as a Federal Reserve Examiner with basic Salary at the rate of $7,911 per annum, and with official headquarters at Wa shington, D. C. The memorandum also recommended that Mr. Masters be reimbursed by the Board for the cost of INthis household goods from Boston to Washington. BY unanimous vote, Robert C. Masters was appointed an examiner to examine Federal Reserve Banks, member banks of the Federal Reserve System, and corporations operating under the provisions of sections 25 and 25(a) of the Federal Reserve Act, for all purposes of the Federal Reserve Act and of all other acts of Congress Pertaining to examinations made by, for, or under the direction of the Board of Governors of the Federal Reserve System, ?,"ncl vas designated as a Federal Reserve 4.61miner, with official headquarters at washington, D. C., and with basic salary at the rate of $7,911 per annum, all effective as of the date upon which he enters upon the performance of his duties after having passed the usual physical eza mination. 4., Unanimous approval was also given to '41e reimbursement of Mr. Masters for the 11°Bt of moving his household goods from "ton to Washington. t Ns, " 11/12/48 Memorandum dated November 10, 1948, from the Division of Pera°1111e1 Adm inistration, attaching memoranda from the heads of the callsions indicated below recommending increases in the basic 11111149a salaries of the following employees in those dineffect. November 14, 1948: Na41e ''kE OP THE D. Designation Jekiate SECRETARY Mildred E.Krieger Pilger IIIIESEARCHANDsTleuZZITI tleie N.Ziaill3i t Carrick—.411 11..! *OPERATIONS r;ohrCin ,T. zoni hul F. Johnson G kith erald P. 1,1.obert P. Miilea 1141.3` 11114 Fuhrer Chadik Patricia B. 'e) 'brie L. Vile ak Lippe oodley e&rie It orter rkill esI :fltVE ch 8 1,1,11141 P. iorie Jasper $4,354.20 $4,479.60 2,874.48 2,974.80 Economist Clerk-Stenographer 5,482.80 2,799.24 5,984.40 2,874.48 Technical Assistant Technical Assistant Analyst Antiqyst Analyst Clerk Clerk-Stenographer Clerk Clerk Clerk-Stenographer 5,733.60 5,733.60 3,852.60 3,852.60 3,727.20 3,100.20 2,799.24 2,724.00 2,573.52 2,573.52 5,984.40 5,984.40 4,103.40 3,978.00 3,852.60 3,17541+ 2,949.72 2,799.24 Clerk Printing Clerk Stenographer Guard Clerk Clerk Messenger Clerk Charwoman Charwoman Charwoman 3,601.80 2,874.48 2,799.24 2,724.00 2,498.28 2,498.28 2,498.28 2,350.00 2,284.00 2,218.00 2,218.00 3,727.20 2,974.80 2,874.48 2,799.24 2,648.76 2,573.52 2,573.52 2,498.28 2,350.00 2,284.00 2,284.00 Messenger 2,284.00 2,350.00 2,648.76 2,648.76 VICES Qotafia Eaton bqqea G. Cook Louise TIleta M. avreeney ITIrard b.Capozio Rogers M. An 'A, rearet derson kereaft F.Dalton. 81 toklche E.Crowell Peacock 4 ERS' SECTION 131111cly General Assistant File Clerk Salary Increase To From Approved unanimously. 11/12/48 Letter to the Presidents of all Federal Reserve Banks readas follows: 4. "Questions have been raised concerning the exempidelion under section 7(b) of Regulation W of credit exofAded to an automobile salesman to finance the purchase t„.a new 1.7,7,• Theautomobile for use principally as a demonstra"lett the questions relate to the circumstances under exemption is applicable. b n The Board's view is that (a) the salesman must be tinci°rIa fide salesman of new automobiles of the same make Year as the automobile purchased as a demonstrator -the r 'xemption is not applicable to salesmen whose sales p10lree°o11f1ned to used cars nor to persons who are not emae Pally as salesmen, such as mechanics, parts hijur;:LOffice workers, etc.; (b) the phrase 'used by reqj r-LneiPally as a demonstrator' is not intended to —re that the trttri automobile be used principally for the Phras s„ i3"tation of his prospective purchasers, sinceaut the raobii" n'Yalso ouse of the the salesman's an for other bon.a fide demonstration practices. thouh ' r°1-11 a practical administrative standpoint, al. : would ' t. sPecifically required by the regulation, it trant "e desirable in all such cases for the Regist0 k' 14hether the dealer or a financing institution, l'ecord ve f, 111 his or its records a statement or other sUch pap ' oert.hne facts establishing the exemption of any L Approved unanimously. Telegram to Mr. F. G. Saxton, Controller, Air-Way Branches, I"') Tolea -(3 1) Ohio, reading as follows: ?Ile Cram -N„ference your and your teleletter November 5 Boe„rd,--ember 11, 194, concerning registration under ttatta : tion W. 1 This matter is subject of,negoRegulaI° ,esteta—:4.started November 8 between H. E. J. Smith, of Vice President, Federal Reserve Bank tqty ti.: -.`4 and exIsi4er?-trie L. G. Pierce, Secretary-Treasurer, AirAPPliance Company, Toledo. Regret delay & 5! 1416ll:I n'hut understand that solution of problem ' 81'er from Pierce to Reserve Bank." 11/12/48 _5Approved unanimously, with the understanding that a copy of the telegram would be sent to the Federal Reserve Bank of Cleveland. Letter to Mr. Hitt, First Vice President of the Federal Resell'e Batik of St. Louis, reading as follows: h"Thanit you for your letter of November 1, with 28 froc- Y(Iu enclosed a copy of 8 letter dated October IcerIL:ti the Lincoln Bank and Trust Company, Louisville, the li ci, e1S1S , and a clipping from the October 26 issue of "4b 1.11itchrigoitJsoulrreti?atlero.f Commerce, received from that press IriThe Board armreciates the thoughtful views exr, Shw - ab on behalf of his bank. They will careful Consideration in our study of the ques i stabil°f Whether Regulation W should cover consumer nZodernell it credit extended in connection with home trw-Titic)n and repair. in the ,re Unable to account for the article included go j J'PPing referred to, which appeared in the Chiaeribpa °urrial of Commerce. We notice that instalmt the terms deare those applicable to 'Group Bt repair en Etzd tri,,, 4.1 the Board should decide to regulate Plieci"rnization credits, the specific provision of apthe v,, cliw f°111c1 be determined with full consideration r7.42 fir e% l'erices in the kind of activity involved in compared articles." with that involved in sales of Approvedunanimously. Letter to m Ptq't4rit 1., -r- Clark, Manager, Consumer Credit Instalment De' ederal Reserve Bank of St. Louis, reading as follows: nThis ikle1oeir, refers to l948 48„ letter of November 1,th rr11-11e t.7tg,_a ecPY of ayour from Ba letter to your Bank ())19 '/-0'.11rIliture applca_ October talon ' of',1 This c Company of St. Louis, dated ve orrespondence concerns the Iltter s l'egulation W to the sale of a cooking stove o 4fectiel3teraber 20 1948 to replace a less expensive, 1!„ k V: inl' e"king' stove Which was delivered by f .‘411ste- fs-;°1‘ 1-111der an en. instalment purchase contract o 111(1 24 ,...-1') 1948, a 10 per cent down Para t '°11thly inreauiring stalinent payments. 11/12/48 -6The question is whether the new stove, which costs more than the one, may be financed on the defective 'eme basis as provided by the ore-September 20 contract. za "The Board agrees with your view that the new stove tlYnot be sold or delivered on terms more liberal than stc " ' e required by the regulation. However, in circumth:eee such as these, any payments made on account of zerljriginal sale may be credited against the down payquired by the regulation on the new article. The Board arisp is not unaware of the hardship that may theic; Particular cases under the regulation. Neverfacts presented in this case, there was se001; e ssion of the sale of a defective stove and a sub: helf; , 1, 1 sale of a : different stove which gave rise to a that - ensiou of credit ' after September 20. The fact rise t ec/Ille of the arrangements or circ-umstances giving it)re th °at the later sale may have occurred or arisen bedate, is not controlling." Approved unanimously. tag Letter to the Presidents of all Federal Reserve Banks readf°110Vs. 84mi;13eferellee is made to the next quarterly report on eartiv-learlt de velopments in the banking field not ordit the tv, °Inainable from bank statistics, as called for in shollajlardis letter of January 27, 1947 (S-953). We NR131 t:PPreciate if, in addition to any other pertinent f„, P°111 'Ba.2°11 might wish to include in the next ort of "estio48: Y°u would include comments on the following 1. T ; 11,View of recent public discussion of the ;Ileueral Reserve support program for Governcielat securities, is there any noticeable t.e ? attitude of bankers towards ‘itiZgle3riol;ra 2, iave there come to your attention any recent enetancee in your district in which insurance c°mPanies have advanced funds to business conwhich might otherwise have been supplied 0 banks? If so, have the terms on insurance ,.ortipany loans been significantly more favorable 3 }t. iller'. the banks might have been willing to grant? r::! recent changes in prices of commodities aftr',"'ed business or banking policies in your dieIf so, how? 11/12/48 ft 4 At this time is there any evidenc that an ape preciable amount of the short-tern borrowings of farmers might be carried over? What is the attitude of bankers toward making and holding crop loans guaranteed by the C.O.C.? 5. Are many banks at or near their legal limits on real estate loans? Are banks and other lenders Showing pronounced preference for mortgages on Particular kinds of properties? Are the demands for GI mortgag e loans being met or are lenders Showing increased unwillingness to make these loans? 6, Have there been any changes recently in bankers' a ttitudes toward construction loans? If so, how have these changes been reflected in the terms °/1 which these loans are made? 7. What lines of industry and trade in your district are borrowing from banks more heavily than a year ago? Less heavily than a year ago? 8. Are there any lines of industry and trade in Your district where bankers feel that inventories are becoming excessive? 9. How do busines smen and bankers in your region generally view the economic situation for the next six months? What is the nature of the importe.ant qualifications, if any? 1948 " - if°rmation developed in the reports received in has-1, ! t̀i re withve7 helpful, and the Board appreciates the ,7 r,pid,vilich the reports have been prepared. In view of T:°rder e Panging banking and business conditions, and facilitate prompt summarization of the material, ii)c)rt se,: helPful if you could arrange to have your next nii .ltztlarir-',,to reach the Board on or before December 13. „ 1'4° (rteriv rePlies, similar to one covering the lest ' 4'red an ' a rreoPort sent to you on September 24, will be prer14arded to each Reserve lank promptly." Approved unanimously. Lette,, LO th "It i tc244 t4 b8 Comptroller of the Currency reading as follows: respectfully requested that you place an order oreaTu of Engraving and Printing, supplementing ;gee°1 rli ' cle-r u vune 21, 1948, for the printing of Federal Re-e °f the Federal Reserve Bank of San Francisco Illa°114ts and denominations stated below: 11/1/ 3 48 -8"Denomi nation $5 10 20 Number of sheets 170,000 590,000 415,000 Approved unanimously. Amount $10,200,000 70,800,000 99,600,000"
@FedFRASER