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Minutes f actions taken by the Board of Governors of the ?eder al Reserve System on Monday, November 22, 1948. PRESFAT: Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Eccles Szymczak Draper Evans Vardaman Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board MinUtes of actions taken by the Board of Governors of the Fedeserve system on November 19, 1948, were approved unanimously. Letter Prepared in accordance with the action at the meeting °t the 011 November 17, 1948, to Dr. E. A. Goldenweiser, Injetz Advanced Study, Princeton University, Princeton, New reading as follows: "Ther ,oeq. e nas recently been some discussion of the proer,f1 have been workir_g on with respect to a ceiling gqetto ' member bank a reserve requirertA)nts Prid the sugBoll , A ," 14 Iricie that it would be helpful to those t tt vit"-}1 -4u if they. could have an opportunity arrangement to discuss '4111.ch 1,17°11 ' You would come down under the t_ i-€4, Board of Governors has with you as a Cons 1.°"%.30 : 8.11 that the c Suggestedd Friday, December 17, 1948, t h ..tri..as been as a time that would sual it Hit 1.ence of everyone here. ;10,1-13.be aPiDreciated if you will let me know „e the 1 be t_ble to attend that meeting and e'''4 411 or, (lard. arl outline of the plan you have in mind 'P°1"talnity to discuss it with you.' ey Approved unanimously. _IL .,J4 -2- tlon, Letter prepared for Chairman McCabe's signature to the HonorG. Hoffman, Administrator, Economic Cooperation Adminitrareading as follows: ask. "Reference is made to your letter of November .101 Bo lng that we designate a senior representative of the /i rtith whom Ars Tyler Wood can deal in formulating isiZior the organization and development of the legP/..O , grat lve Proposals for the 1949-50 European Recovery tilis "The representative rf the Board of Governors in tire : +°rk vill be Mr. Frank A. Southard, Jr., Associate the Division of Research and Statistics. No,,Zs is will also acknowledge receipt of your letter doN.; 4 " 4". 16 enclosing the preliminary outline of the ca8eiYOU will use in presenting to Congress the OZ Your second year's appropriation. Mr. Southtouch with Mr. Wood with respect to —cument.t, Approved unanimously. Lett r A 4 1040118. e- tothe Federal Deposit Insurance Corporation reeding ?eclerft1 ; 111 ; suant to the provisions of section 12B of the !t11:-pleervs Act, as amended, the Board of Governor ' p rst -t:eral Reserve System hereby certifies that Ttlel e Abilene Texas, became a member of -eserve PYstem on November 18, 1948, and is rlow :::k1 System. The Board of Governors of the icotri : let ervs System further hereby certifies that, 1.11 '°311 with the admission of such bank to memberthe Reserve System, consideration was (g) otto theFederal f0 llowing factors enumerated in subsection 1, eetion 12B of the Federal Reserve Act: Th • batelkflnancial history and condition of the 2, Th 3. It e --quacy of its capital structure, 4. rpLs future earnings prospects, 5,; le general character of its management, tosbceoztnce and needs of the community by the bank, and _3- "6, Whether or not its corporate powers are consistent with the purposes of section 12B of the Federal Reserve Act." Approved unanimously. Letter to Mr. Clark, 1,,anager, Consumer Instalment Credit Deri etrt 'Federal Reserve Bank of St. Louis, reading as follows: 1948 "This is in reply to your letter of November 9, the with which you enclosed a copy of a letter from Regei:tillen's National Bank of St. Louis, concerning I'lhethe-; i°11 W. The Registrant, requested a ruling as to o irltegrp-ia sink incorporating a dishwasher which is an li8t -.1article- Part of the sink and cannot be detached is a ed . that :”.,e e°rIeur in the view expressed in your letter Group ie article is a combination unit as listed under A8 such °f Part 1 of the Supplement to Regulation W. 4Ppl.y." the aPplica.ble provisions of Regulation W Approved unanimously. Letter 'to Mr. Clark, Manager, Consumer Instalment Credit De' eci l Reserve Bank of St. Louis, reading as follows: "to ! i c)ricerti.'s vill acknowledge your letter of November 16 ,v411ehp321g a routine check at one of the St. Louis the Metropolitan Life Insurance Company, action with Regulation W. 118ed 17°11 mentioned that although the loan agreement t Polic," the insurance company in connection with the l°4118 o rdinarily contains no information as to 1411. ke„,'el.' azy, — °f the eF tofeenient rePaYment there is in many cases a ver between the company and the borrowerments klid th Zet i_that the loan is to be repaid in instalments the 1E111 44istallnent, comcollections will be made by cillesti ecalec ....._ at the homes of the borrowers. Your 41Qh Po °Il iti ; c v°ed 110vans.the applicability of Regulation W to b "It • 4 lifeI,s..sthe Board's view that a policy loan made l'ees -,LsUrance co any, which the policyholder 14httt: tch) ePaY in rap is an instalment loan instalments, Illeening of section 8(h)(6)." Approved unanimously. 11/2/ 1 48 -4krtni Letter to Mr. Clark, Manager, Consumer Instalment Credit Dee Federal Reserve Bank of St. Louis, reading as follows: ce,_ "This refers to your letter of November (19 1,,u 0f'71 .eing the necessity for registration Itilnid e e: am : 17 ; 18 tionc7 Littlee liebsamen address in Foundation, locatod at lieb8,2°c1c, Arkansas, as the Manhattan Credit Company and motorun Motors. You related that while the Credit and c°mPanies have registered under the regulation, the ' ger of the "q Foundation is unfriendly toward the regulath oPPosed to the registration of the Foundation on exteri ed °1111d that it is not 'engaged in the o business ze.C4g instalment crodit. The Foundation, apparentll noninterest-bearing loans to employees of l'ece tt° companies, and the loans examined during inci exern,; n of the Foundation were of the kinds s k7 "-nvestigatio Under section 7 of the regulation. ties: . 1, 1Fr°[1 Your letter it is not clear what other activime hlTiZeoundation may have or what its relationship y the Credit and Motor companies. These matters. S-1061 imPortent. By now, however, you will have received the ;,of N ovember 9 1948, expressing further views on 8 to 1./flu ' el al subject Covored in S-1056 of October 27, l94, belt":" You re ferred. These letters in combination, we ease's'', establish reasonably definite guides for most Ntprof,the nature in question, and perhaps the doubt -ously ved. felt concerning 8-1056 has now been _ )11sicle. 8 ease such as 1,gal this, oractical as well as7 ta'ets 1.tti°ns must be weighed in the light of all e of the " d attendant circumst,Lnces. In view, particularly, st,t4 id PPar'?-nt character of its loans, we can urOer4 of - 1,Y°11 might not wish to press for the registrai lAld "'e Fo undation at this time. On the other hand, makcr T learn or determine that the Foundation is inconsistent ted ,-- available in a manner or on terms "ratt h" regulation, the case for inFistinz upon regis°n rra,,ht thet then be much stronger and call for action 8.324 ft`tJ-, "z hope 443t rie that e to you the views expressed herein will be of in this matter." Approved unanimously. Letter to Mr. H. E. NItAl Dill, Executive Vice-President, Retail trNz N Association of Texas, Inc., Lacy Building, Dallas 1, f°11074z: ter "This will acknowledge and thank you for your letcf November 3 concerning Regulation W and your supthernental letter of November 16. Your comments about e %?Ips of the regulation are interesting indeed. 20 AS YOU know, the regulation as issued September %;,..1948, applies to the same list of articles as was 1.(6red in thp regulation which expired on November. 1, We can exi s membersappreciate the concern of your Associawhen the instalment credit most of them extend i8 SUbjeCt to the regulation while similar credit latended LT other classes of merchants is not so reguerertand is of i 10,Y the widely advertised. The articles now coyregulation do embrace the principal segments ezd tiStalillent sale credit, excluding home modernization regui : rP +.61ir credit which was not subject to the expired The question of enlarging the scope of erediegul i "ion to cover home modernization and repair 4 : 1 8 now under study. Plreei "s interest your organization displays is aphas alted and, as tile Federal Reserve Bank of Dallas glad treat?' written you, the officials there will bew &th !r° „ discuss this and other phases of Regulation any •time. You may be sure that your views 11.11 -11 stA, g'ven careful consideration in our continuing cf the regulation, its scope and effect." teLht. or Approved unanimously. Tele,.. 6,-am to Mr. Knoke, Vice President of the Federal Reserve °Iic, reading as follows: P hY0 ' oc'r yol,,11: ;1 wire November 18. Board approves proposal 117 °13nk to B arrange revolving credit for the Bank losal erlilltti°nal Settlements and to grant thereunder t5 (a7 ! 4,- ans on the following terms and conditions: 0nr,'Lle amount to be advanced not to exceed in the aggregatetime at any one te outstend"vs al -e"1°811 or loans to be made up to 98 percent of Ile of of gold held in your vaults as collateral; (b) , Each 3o(L such loan to run for a maximum period or 1, usfore such loan to be requested and made on dete (d) E:Y 31, 1949; ), !:t • me1 , 1 such loan to bear interest from the of -a3ue until paid, at the discount rate ta effect on the date on which such loan - ij 11/22/48 -6c 441k of "It is understood that the usual participation will offered the other Federal Reserve Banks." Approved unanimously. Tele grmm to Mr. Knoke, Vice President of the Federal Reserve 17 evi York, readino. as follows: relvel,"Y„our wire November 18. Board approves three month oust : a % bY Your Bank of : the $7,500,000 balance of the qtlei ng gold loan to Banoue Nationale De La Republiterz:-erative Ponulaire De Yougoslavie on the same krac42 ;end c onditions as now apply, except that the to be advanced is not to exceed .17,500,000. be ofpit is understood that the usual participation will ered the other Federal Reserve Banks. yoilreThe Board notes that your Bank expects to repeat loans Yoll vmn-ier Understanding that by granting such not be facilitating sales of gold at premium ApPr°ved unanimously. Meraorandum dated November 17, 1948, from Mr. Bethea, Direct()r or the Division of native Services, recommending that Adzir to/aPorary the Armed Honor Roll listing the names of employees who served .,orees clurirg d War II be replaced by a bronze Wonl tr*44'41 PlaClUe Contain, names of 99 employees set forth in the prepared by RegII the Division of Personnel Administration, the t° cost 4,Q th approximately and that the appropriate item $400, 1948 non -personal thA budget of that Division be increased to th 'Ictusa expense involved. The memorandum also recommended ltq 1)41 : Al4ericell flag and service flag now on display from the the second floor be removed and stored. Approved unanimously.
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