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1691 Minutes of actions taken by the Board of Governors of the Nterea, Reserve System on Monday, November 25, 1946. PRESENT: Mr. Eccles, Chairman Mr. Ransom, Vice Chairman Mr. Draper Mr. Mr. Mr. Mr. As 11.a. absent Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman stated in the minutes of October 30, 1946, Mr. Vardaman on official business. Li emorandum dated November 19, 1946, from Mr. Thomas, Director or the Division of Research and Statistics, recommending that an increase in the basic salary of Albert R. Koch, an economist in that Division, from tLvs $6,384-X to :i;6,862.80 per annum be approved, effec- becember 1, 1946. Approved unanimously. llem(Drandum dated November 21, 1946, from Mr. Nelson, Director ot -e 'vlslon of Personnel Administration, recommending that an ' e4se • ln the basic salary of Sidney Washington, a clerk in Goite,....0 4,-4 r R ansaNt s office, from C,2,257.20 to ,(12,394.00 per annum a PProved, effective December 1, 1946. Approved unanimously. Letter to Mr. Willett, First Vice President of the Federal 8ank of Boston, reading as follows: leti_ "In accordance with the request contained in your Of November 19, 1946, the Board approves the ap- 11/25/46 -2j lointment of Richard I, Gilman as an assistant examiner or the Federal Reserve Bank of Boston. It is noted that Y°u expect Mr. Gilman to report for duty on December 2, 1946 • Please advise us the date the appointment actually becomes effective." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, 'LC as follows: 16 "Reference is made to the Board's telegram of October 1946, relating to a proposed amendment to the Board's Re %Illation F. of,"Certain additional amendments to the same provisions ti xtegulation F have since been suggested. These sugges' °Ils are (1) That the proposed amendment described in the above mentioned telegram be expanded to aPply not only to the investment of trust funds in stock of the trustee bank but also to the investment of trust funds in stock of corporations Which are affiliates of the trustee bank, or are interests of officers, directors, or employees of the bank, through the exercise of rights accruing to shares of stock of such corporations which are held as trust assets. This suggestion results from the fact that section 11(a) of Regulation F contains the same prohibition against investment in stock of affiliates of the trustee uank and interests of its officers, directors, or employees, as it does with respect to investment in stock of the bank itself. (2) That the words 'expressly authorized or recuired by the instrument creating the trust' be substituted for the words 'expressly re-ui by the instrument creating the trust' In footnote 12, appended to section 11 of Regillation F. (3) That footnote 12 be amended by adding a Provision to the effect that the prohibition 'gainst investment of trust funds by a national 4 ank in its own obligations, which is contained 111 section 11(a) of Regulation F, shall not apPlY to the investment of trust funds by deposit 3 t 11/25/46 "iu the savings department of the trustee bank or in time certificates of deposit issued by the trustee bank vhere such investments are Specifically authorized by State statutes. "It will be appreciated if you will forward your corn— and, recommendations concerning such amendments as soon as practicable." Approved unanimously, together with similar letters to the Comptroller of the Currency and Mr. Evans Voollen, Jr., President, Trust Division, American Bankers Association, c/o Fletcher Trust Company, Indianapolis 9, Indiana. Letter to Mr. Thomas F. Kelly, Government Coordinator for Th Ii°°ver Company, North Canton, Ohio, reading as follows: b rhis "T refers to your letters of October 21 and Nov7 5/ 7 (tv:o), 8, 11, and 14, 1946, regarding the of— ' -ing of cleaners on a 'free trial' basis by certain vendors. qve have referred the instances of such offerings the:ve reported to the Federal Reserve Banks in the vdli !lets involved, in the expectation that these Banks, wag" are charged with enforcement of Regulation ° investigate whether there has been any violation. , -You express the vie, in your letter of October 31, that a the Federal Trade Commission should investigate the f4rtisaments in question if the cleaners are not in eing left on trial in violation of Regulation W. trit:°J-nted out in our letter of October 18, the 'free offered, in the cases investigated, was found to a 'free home demonstration' by the salesman or an Otter er to exchange a cleaner within 10 days after the aalZ Wa8 consummEted. These practices might be inter— pre th ed in some sensa as a free trial, and neither of violztes the regulation." Approved unanimously. Mem e011, tha °randum dated November 22, 1946, from Mr. Hooff, Assistant re commending that there be published in the December issue ecieral Reserve Bulletin statements in the form attached to the .1694 11/25/46 —4— zekorand um with respect to the following subjects: Amendments to Margin Regulations T and U Rights to Subscribe Consumer Credit Revision of Regulatlon W Foreign Funds Control Treasury Department Release Approved unanimously. Chairman.
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