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1671 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, October 12, 1949. PRESENT: Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Szymczak Draper Vardaman Clayton 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 Federal Reserve System on October 11, 1949, were approved unanimously. Memoranda from the heads of the divisions indicated below effective recommending appointments to the staff in those divisions, aS of the dates upon which they enter upon the performance of their duties after having passed the usual physical examination: Date of Memo Title Name RESEARCH AND STATISTICS Research Assistant 10/12/49 Murray Altmann OFFICE OF THE SECRETARY 10/10/49 Miss Elizabeth E. File Clerk Van Wagner Salary $3,225.60 Duration of Appointment Permanent Temporary 2,284.00 (six months) Approved unanimously. Memorandum dated October 5, 1949, from Mr. Leonard, Director Of the Division of Bank Operations, recommending increases in the basic annual salaries of the following employees in that Division, effective October 16, 1949: 10/12/49 Name Gerald M. Conkling Mortimer B. Daniels -2- Title Chief, Member Bank Section Technical Assistant Salary Increase To From $8,150.40 $8,509.50 8,150.40 8,389.80 Approved unanimously. Letter to Mr. Sawyer, Assistant Vice President of the Federal Reserve Bank of Boston, reading as follows: "This is with further reference to your letter of September 7, 1949, and its enclosure, and our acknowledgment of September 20, 1949, concerning a question under Regulation T which you received from Paine, Webber, Jackson & Curtis of Boston. The question was whether a firm which is a member of a national securities exchange may maintain under section 4(b) of the regulation a special omnibus account for another member firm and carry in such account cash transactions, as well as margin accounts. "If a member firm qualifies as a broker or dealer by transacting business for the account of or in behalf of its customers, then, in the Board's view, such member firm is within the class specified in section 4(b) for whom a n, special omnibus account, in accordance with that sectio properly may be maintained by another member firm. "As you indicate, a principal purpose of section 4(b) was to facilitate the financing of customer margin n as transactions. However, on the basis of the questio does 4(b) n presented, it is the Board's view that sectio rebe t not require that the use of an omnibus accoun stricted to the financing of margin accounts to the exclusion of cash transactions. of "A conclusive answer to a question such as this, dethe on part course, must of necessity depend in large the in usages and case tailed facts of the particular If trade as viewed in the light of the entire regulation. tances circums or facts n certai therefore there appears to be consideration which you believe should require further Board, we trust the by on questi your of the latter part of attention. We that you will bring such matters to our understanding mention this particularly in view of your court case inthat the question arose because of a recent assume volving the use of specialamnibus accounts. We 1673 1o/12/49 "that you refer to a case now pending in court, since we know of no recent judicial decision with respect to such accounts or to the question presented by your letter." Approved unanimously. Memorandum dated October 11, 1949, from Mr. Bethea, submitting for approval vouchers for Mr. Evans and Mr. Chase, Assistant Solicitor, covering expenses for Mr. Evans from September 18, 1949, to October 1, 1949, and for Mr. Chase to August 12, 1949. Approved unanimously. Lei_efz__ 9 ( Chairman.
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