The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1_769 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Wednesday, November 7, 1945, at 10:30 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak McKee Draper Evans Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein— after referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the ?ecleral Reserve System held on November 6, 1945, were approved unani— toileiy. of Memorandum dated November 2, 1945, from Mr. Paulger, Director the Division of Examinations, recommending that, effective as of the date Upon which he enters upon the performance of his duties, '44114cI1wain be appointed for a period of one year as an Assist— ederal Reserve Examiner with salary at the rate of 3,310 per kr11141 '44d with official headquarters at Birmingham, Alabama. The tgletkl'arichlin stated that Mr. McIlwain was a member of the Federal Re— serve retirement system. • By unanimous vote, Mr. Melvin McIlwain was appointed for a period of one year as an examiner to examine Federal Reserve Banks, member banks of the Federal Reserve System, V70 11/7/45 —2-and corporations operating under the pro— visions of Sections 25 and 25(a) 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, and was designated as an assistant Federal Reserve Examiner, with official headquarters at Birmingham, Alabama, and with salary at the rate of $3,310 per annum, all effective as of the date upon which he enters upon the performance of his duties. Memorandum dated November 2, 1945, from Mr. Carpenter recom— kervii ---11g that Miss Myrtle J. Pagenkopf be appointed as a file clerk the s ecretary's Office on a temporary basis for a period of not to ex,, , eed six months, with basic salary at the rate of $1,836 per 4411114, effective as of the date upon which she enters upon the per— —ucknee of her duties after having passed the usual physical exami— rlati°11 4nd subject to a satisfactory check of her references. r4e114)randlmi The stated that Miss Pagenkopf is a member of the Civil Serv— tce Retirement System and would not become a member of the Board's l'etiremeat system. Approved unanimously. Memorandum dated November 6, 1945, from Mr. Bethea, Director °t the D. lvisien of Administrative Services, recommending that the telltp oral, appointment of Mrs. Fillen R. Watson, a cafeteria helper in that t be extended for a period of not to exceed two months, 1771 11/7/45 —3— without change in her present salary of $1,440 per annum, effective at the expiration of her present temporary appointment on November ' 9 1945. The memorandum stated that it was not contemplated that 111'8'/Natson would become a member of the retirement system during her temporary appointment. Approved unanimously. Letter to Captain H. G. Chalkley, Office of the Supervisor of 81146uilding, United States Navy, Orange, Texas, reading as follows: "The Members of the Board are delighted to learn thw. you expect to be released from the Navy and return civilian life before the first of the year and thus be available for reappointment as a director of the New urleans Branch of the Federal Reserve Bank of Atlanta. "The Board is prepared to make the appointment just as soon as you are released from the Navy, and it will be n th ,Tpreciated, therefore, if you will advise us when t4at happens in order that the Board may take formal ac— On with respect to the appointment." Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of Ohi c4g°, reading as follows: 22 "Reference is made to Mr. Diercks' letter of October alad his telegram of November 2, 1945, in connection 7.1.th the application for membership on behalf of the pro— , Lyon County State Bank, Rock Rapids, Iowa. From Diercks' telegram it is understood that this applica— frrn vas submitted at this time by the parties interested a,the proposed bank for the purpose of obtaining assur— ,:_'ce that the bank would be admitted to membership if the urganization is completed. the:You may advise the organizers that on the basis of pli a-nformation submitted the Board will approve the ap— cation provided, of course, that at the time the 1_772 11/7/45 —4— aPPlication is actually submitted for approval the organization will have been completed and provided there have been no developments in the meantime which would civersely affect the case. When the organization has b'en effected, please submit your recommendation in the c ircumstances existing at that time, together with the Usual legal documents." Approved unanimously. Letter to Mr. tr. G. Violette, President of the Standard Oil ec'raPanY, Louisville, Kentucky, reading as follows: "This is in reply to your letter of October 24, 1945, suggesting that automobile tires, tubes, batteries, and accessories be eliminated from the list of articles subject to Regulation W. "A change of this kind was considered very carefully before the regulation was amended effective October 15. waS decided that the demand for these articles was so clearly in excess of supply, and would be for some months ' 4) come, that elimination could not be justified. In addi4, the question was tied up with the treatment of Other articles having a similar position in the general : ituaticn. Taken together they represent a substantial ; art of the picture and they cannot be removed from the e2Pe of the control without considerably reducing its ,-Le ctiveness. m "It has not seemed to us that rationing of tires re°vea the inflationary impact of credit buying. But with0Ut regard to that aspect of the problem, we think it quite ,,4 :"1Y that rationing will be dropped before supply has qught up with demand, in fact it is possible that tires , 11 be freed from rationing earlier just because Some restraint on credit buying is in existence. h, "These are general considerations, of course, which Tre little to do with the use of credit cards as such. 0';e1 e has been no intention to handicap a particular way ring business, but it is admittedly true that the arl'ge account mechanism of the regulation is not easily "Nptable to the use of credit cards. This mechanism was ariliaed for the general run of charge account operations we believe it has worked reasonably successfully. 4 1773 1V7/45 -5- "We have felt that the handicap to credit cards in the relatively few cases where hardships would be created was so far outweighed by general considerations of simplicity and uniformity that no special provisions for credit cards should be adopted. "When the credit cards came back into use, this feeling was strengthened by our expectation that the items with Which you are concerned would be among the first to be dropped from the list and that therefore the handicap would not continue for very long. be have hoped that in the meanTame resumption of sales of these articles on credit cards could be postponed without interfering too seriously with the Public welfare." Approved unanimously. Thereupon the meeting adjourned. Secretary. Chairman.
@FedFRASER