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Minutes of actions taken by the Board of Governors of the Pederal let 14 Reserve System on Monday, November 15, 1948. the Conference Room at 2:15 p.m. ?REMIT: Mr. McCabe, Chairman Mr. Eccles Mr. Szymczak Mr. Draper Mr. Evans Mr. Vardaman Mr. Clayton The Board Mr. Sherman, Assistant Secretary Mr. Thurston, Assistant to the Board Mr. Vest, General Counsel Chairman McCabe referred to the informal arrangement reported " 1 crallis at the meeting on November 5, 1948, that the Board would sikit a list of topics on which the views of the Federal AdIlLaoryNItImil would be requested at its meeting to be held with th llord tomorrow: and stated that as a result the Council had subrqttecl ho topics for 4.1(1 he consideration by the Board at this time. He izlicierstood, ItIto that Council would like to have an however, Nal discussion l'ort or the the of questions which may be presented by the re- oover 4c1 thet CommissiQn on the reorganization of Government rfkletrlry. it Might also wish to discuss the proposal for a national comm ission. Ihese cltej matters were discussed and it was understood that should arise at the meeting with the Federal Advisory Council the cr the tolity4ez Board Would be presented by Chairman McCabe substantially 11/15/48 """ fr If the Council raised e question as to the request 1/J4 the President for material for the State of the me'rnessage and for the legislative program, Chairman request biata!!e would say that the at Board had received the thi"ad not yet had an opportunity to consider it and, had nothing nothin to advise on the subject. If the sir,'1 Pressed the matter further and expressed a de— tic " :ise with the Board on legislative recommenda, Cllairman McCabe would say that the Board would be that ;: nave the Council submit to it any recommendations : 14: 1 1 might wish to make as to the legislative program. if th"4.th respect to the report of the Hoover Commission, Chql : views of the Board were requested by the Council, 40.ti74 McCabe would say that the Hoover Report would pritet submitted until next January and that it would be colatatIrlire to discuss at this time what the report might %qth it '°r questions that might arise in connection 4% mielLt.,1248 connection, it was understood that Chair17:410I7 ',sje might draw out from the members of the Ad— allbject-°11ncil whether they had suggestions on the kggast,°f a National Monetary Commission, including as to the possible membership of such a 'tt, s°11. It was understood that no position had bY the d that Board for or against a Monetary Com— any discussion would be in general In re8P0 118e to an inquiry by Mr. Eccles, Chairman McCabe and all8 Stated that the informal procedure arranged for this meet— 4rtett the procedure Advisory Council was not intended in any way to approved in October 1946 under which written ' ere 211bzitt„ " etits thereon " El j°111t„etirlg of in advance of a meeting of the Council and writ— are given to the Board for consideration before the Board with the Council. Refereace was then made ile8ealach and to a memorandum prepared in the Di— Statistics, under date of November 9, 1948, r 11 11/15/48 -3IzIlder the title Notes on Present United States Gold Policy. Mr. SzYtezak stated that the memorandum was prepared in accordance with the discussion at the last meeting of the Board with the Federal Ad.i8Or7 Council, that it contained factual information, and that he 11011ld recommend that it be made available to the members of the Fedl'a1 Advisory COlan c 1 on a confidential basis as a staff report. Mr. Szymczak's suggestion was approved unanimously with the understanding that the report would be handed to the members of the Advisory Council this Before 1138 ' 11 a this meeting there had been sent to each member of the memorandum dated November 10, 1948, transmitting a list of (!lleations vitich consideration by the Board in connecw°111d vrith the r equest require of the President dated November 60 1948, for eubjects to be included in the State of the Union message, the Eco11°Ile Report, and the legislative program of the System. Chairman leC4be allegested that be in view of the shortness of time the matter held for a later 1.1e48 fleeting of the Board, and after a discussion it clerstood that the tte or Board would meet at 2:30 p.m. tomorrow Tuesday, Che4rman November 16, 1948, to consider the matter. McCabe reported that, in accordance with earlier citsclissioris• he 9) kraerica lo48 -13 "' made an appo to see Mr. L. M. Giannini of intment Corporation and Bank of America N.TAS.A. on November Ithioh time Mr. to see him in his office. Gialmini came I_ 11/15/48 —4— Chair ' 4all McCabe said that their discussion covered the bank holding e°111P1111 legislation on which Mr. Giannini expressed the view that 114 0)4 ' action was to Transamerica Corporation having been singled °Ltas a clala1t. Chairman McCabe said they also discussed his 1441u411McCabe's) testimony at the time of his confirmation as a Tileof the Board by the Senate with respect to the reasons why tatik °f AMarica had expanded so greatly in the western states, and that mr. Giatnini expressed the view that his answers a good tePly, In elaborating, Mr, Giannini stated the reason for the ex— Partsion was eXplained in terms of the growth and development that heti te.it en place in the Pacific coast territory. At this Point Mr. Vest withdrew from the meeting and the s tated With respect ferred to each of the matters hereinafter re— t° Was taken by the Board: 144111tes of actions taken by the Board of Governors of the Fedeasrve aystem on November 12, 1948, were approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank l'eading as follows: the B:It is tatikshar'cl ondesired the regular: annual report to Form F.that R. 437 be obtained . from Wisconsin ita ri4re8 the orZel Corporation, Milwaukee, Wisconsin, covering Year ended wisconple;.se yolll, request October 311 1948'Zoration to file the 67k on its report byin duplicate with or before Ils,r1 December 1, 194 However, if tlporationts annual audit accountants public :::ts 44., °ibeell co mPleted by Corporation that date the. 1.1414t -z1,1t 8° d esires, await the completion 131*.eleti ' 44 1 file its report to the Board asCs:o:ras cable thereafter. ; 03 11/15/48 _5_ 4_ "We are obtaintrig enclosing six copies of Form F. R. 437 for use the report from Wisconsin Bankshares Corporation. "It is requested that one copy of the report be fort. .clscl to us immediately after receipt by your Bank to be it lcnrsd later bir such additional data and explanations as pi be necessary to obtain from the Corporation to comth.sor correct the report. Afterycur Bank has reviewed weer .eport, and other relevant information, we shall apeuehl4te receiving a copy of the memorandum relating to or e„rervtew, together with any recommendations, comments, "ggestions which you may have regarding the group." XY Approved unanimously. Letter to Mr. Waye Vice President of the Federal Reserve Of Ric, ilmond, reading as follows: 1w8 is made to your letter of ()ere: 1 ,"Reference 115, regard_;_e -La the virT: of contemplated absorption through the Central Trust Company, Charleston, West by The Kanawha Valley Bank, Charleston, Virginia. Ellice' : r It is u nderstood that the Federal Deposit Insur the '311Poration has issued its written consent, under sewrovisions of Section 12B(v)(4) of the Federal ReIlithet, Aet) for the merger of the State member brikt 1. yoli„e - uninsured nonmember trust company and .El, , restlit- oPiniora, the proposed transaction will not the 4ssete 11 , , 1 allY "10A. The change in the general character o Kanawha Valley Bank. Qe,;°11.1.,viel4 of your recommendation, the Board of mm the:n_ : /- 14111 under interpose objection, no exeret c)f er Membship to which it is subject, to the trust a rez1 113 a powers which The Kanawha Valley - the co cora t of the ntinuing institution, will acquire 13E Y. proposed merger with the Central Trust ze; It i 1141 r assumed that counsel for the ReserveBaI and y o himself as to the legality "taken satisfy to effect the proposed merger. Approved unanimously, together with the following telegram to Mr. Wayne: 1904 11/1548 "Reurlet twelfth and recommendation Board will interPose 110 ,.. B objection to the exercise by The Kanawha Valley Ch arleston, West Virginia, of the trust powers •b4.-anted it , loy the State of West Virginia." Tele gram to the Presidents of all Federal Reserve Banks read0110ITS: pre "The Board will issue tile following statement to the you 3 P.M. today. You may give it any distribution place 8" in your district but it is not intended to re°r interfere with any publicity you may have planned the subject and it need not be distributed unless you 8° desire. 'BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Statement for the Press t•A,or 3`? r elease at 11,T.'412 Monday, November 15, 1948. 11 is wThe deadline date for registration under Reg-ulation terich.,„°veniber 19, 1948. By that time all businesses of exor le c°11sumer 000 instalment credit in amounts w a-3,141d of the types subject to Regulation re rP' bust : uo have registered engaged in if they were sucht of er ge88 on Se ptember 20, 19483 the effective date a 111.01eteNation. Failure is to register as required Registrant to PexiallI ti° .Regulation W and may subject the ! (1144 ITh_ detlier'se required to register include automobile ill cc 8 alld me rchants who extend instalment saledishcredit %18.8hereeet ,1°11 With stoves, automobiles, cooking c°rIditi," 4'roners, refrigerators, washing machines, air 2%/ing viler's, radios, television sets, phonographs, rug. 4p1!0 rean",4ehilles, s4 suction cleaners, furniture and :"'lenee ' ' n recl to onregister are banks, loan companiescand iz:"QiiiPanies which finance such sales or make tkstaltaent loans of $5,000 or less. erq a:1k re gistration forms are available at any Fedei've Bank or Branch.'" ot Approved unanimously. Letter to kbt ealetaeo Mr. Earhart, President of the Federal Reserve Bank 1' l eading as follows: —7— "This refers to p i your letter of November 5, 1948s,re— dga,rcling a question presented by .1r. H. M. Craft, re : "of the California Bankers Association, and others ected, regardingr renewals and revisions of real estate de Regulation W. t"The auestion relates to real estate loans which were oefore the effective date of the regulation but which t`e llow to be with or without an additional exri.,e4 t8i°11 of credit. In many cases the credit that origiwould renewed, guar before the effective date is of the type that ap s'ifY for exemption under section 7(g), but Mr. Craft thipearentlY is uncertain as to the method of ascertaining secte"ts relating to such an outstanding credit. of Since enic'n 7 does not contain an express requirement steti a Parenqiellt of the borrower like that in section 4, he apfaith--Y feels that such a statement accepted in good exern , , cc)uld not be used to establish the facts of an P,14-1-01.1 under section 7. StateraThe Board agrees with your view that although the Igith lent of the Borrower is not required in connection aceepj ans exempt under section 7(g), if a Registrant roller 8 -111 good faith a written statement from a boreXempjetti t for h facts that would qualify a loan for or t1131311, e,;()11 ,.., under section may Registrant rely the 7(g), st atement. becaus:'„ °1-1e time the regulation exempted loans merely e- 'LleY happ ened to be secured by a first lien on lationsate. toarci oecau_ _ That exemption was removed from the regu°se it Was found to be =workable, and the it would be inadvisable to restore such 4p4--errIPtinn even with respect to credits that origivr1C3r t eleiatio4.1tO September 20 as recommended by the Approved unanimously. 44roved: Assist Chairman. t Scretary.
@FedFRASER