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1G28 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Monday, November 17, 1941, at 12:45 P.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper 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 hereinter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the eera1 Reserve System held on November 15, 1941, were approved unani - Memorandum dated November 7, 1941, from Mr. Goldenweiser, Dil'ector of the Division of Research and Statistics, recommending that 4ilton -ss be appointed as an economic assistant in that Division, th -4417 at the rate of $2,400 per annum, effective as of the date 111431a Wh' lch he enters upon the performance of his duties after having Paseed satisfactorily the usual physical examination. Approved unanimously. Letter to Mr. Mulroney, Vice President of the Federal Reserve ilsrlit of rq,, ""4-eago, reading as follows: 'This refers to your letter of November 10, 1941, -Letter from Mr. Diercks of the same date with reto the possible termination of membership of The 129 11/17/41 -2- "St. Charles State Bank, St. Charles, Michigan, in connection with proceedings instituted by the Federal Deposit Insurance Corporation looking toward the possible termination of the insurance of this bank. You requested advice as to what procedure should be followed by your office with respect to termination of the bank's membership in the Federal Reserve System . "As indicated in Mr. Diercks' letter, it now appears Probable that it will not be necessary for the Federal Deposit Insurance Corporation to termin ate the insurance of the.bank but that it will be reorganized. If it is reorganized, it appears that it may be (1) through the creation of a new bank to take over certai assets n and liabilities of the old bank, or (2) through the strengthening of the caPital structure of the existing institution and the making of other satisf actory corrections. If the latter procedure is followed, there would seem to be no necessity of the bank's terminating its mbership in the Federal Reserve System and, accordingly, steps to this end would be necessary by your office. If a new bank is formed to take over the assets of the Ilres?nt institution, it is understood that the present n Ttitution will be placed in receivership and its memberP should then be terminated in accordance with the proe dur outlined in section 6 of the Board's Regulation I. „ In the .k.,ton should event the Federal Deposit Insurance Corporadecide that it is necessary to follow out the PI:oc teedin-s G it has instituted and terminate the insurance ° 1,1f. he bank, we will then advise you as to the procedure ,,?-1-ch you should follow in terminating the membership of the bank in the Federal Reserve System." Ilite t Approved unanimously. Letter read;,_ --`41g as to the Simplex Manufacturin Company, New Orleans, Louisi g ana, follows: of "Reference is made to your request for an amendment Replation W, which deals with consumer credit. sh 'Your request, as we understand it, is that the Board sp:113.41.rem0ve motor bicycl es from the list of articles sho rled in the Supple ment or that, in case the Board 111„' 444 cnt bedecide against doing this, the required down payreduced. 1630 11/17/4a, -3- "The list now includes, as you know, more than 20 different articles, and since the regulation went into effect requests similar to your own have been received With respect to many of the articles now included. Most of these requests have been supported by arguments similar to your own, and all of them .have had to be taken under considera tion at the same time, each on its own merits. 'You will understand, therefore, that your own request has been receiving the same careful consideration as all the Others. "In every case, it is necessary to determine, among °tiler things, whether the article in question is enough different from other articles on the list to justify special treatment and whether the terms now prescribed are such as to prevent the producers from being able to sell, over a period of time, as much as they will be able to px:oduce taking into account the limitations on produc, ; 110/1 that have been, or are likely to be, impose d by the rvernment, in the present national emergency, through the agencies having to do with civilian supplies or other"Up to the present time, the Board' invest igation s and s tudy have failed to develo necess facts the p and ary figtires to indicate that motor bicycles should be treated differently from motorcycles. In fact, the balance of considerations seems to be quite the other way. 0., For your information, manufacturers and distributors _Imo torcycles have requested the Board to amend Regulation So that the provisions regarding the treatment of trade: 1411c1r, on the sale of their products will be the same as those licable to sales of automobiles, and this request Staff"receiving the active consideration of the Board's is'nr Approved unanimously. Thereupon the meeting adjourned. eog.zLA, egyfLe_to Secretary. Chairman.
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