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1470
Minutes of actions taken by the Board of Governors of the
--aa Reserve
the
System on Thursday, October 12, 1950.
Board Room at 2:30 p.m.
PREsENT:
Mr.
Mr.
Mr.
Mr.
Mr.
McCabe, Chairman
Szymczak
Evans
Norton
Powell
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
11r.
Mr.
Mr.
Mr.
Mr.
St%
Lo
The Board met
Carpenter, Secretary
Sherman, Assistant Secretary
Kenyon, Assistant Secretary
Morrill, Special Adviser
Thurston, Assistant to the Board
Riefler, Assistant to the Chairman
Vest, General Counsel
Nelson, Director, Division of Personnel
Administration
Young, Director, Division of Research
and Statistics
Solomon, Assistant General Counsel
Shay, Assistant Counsel
Jones, Chief, Consumer Credit and
Finances Section, Division of Research
and Statistics
Paaley, Economist, Division of Research
and Statistics
Mr I
euis, Assistant Vice President, Federal Reserve Bank of
'
Who was assisting in connection with the administration of
4
11.1-atio„
"
Consumer Credit, also was present.
Mr. Evans
41
g
terms
1t
stated that, in accordance with the understanding at
of October
5, 1950,
the staff committee has been studying
Of RegulationJ, Consumer Credit, during the past week,
had held numerous conferences with members of the trade con-4-1 g the ,
effects of broadening the coverage of the Regulation, and
N't
it n
w-s Prepared to recommend a tightening of the terms of the Reg-
/471
10/12/50
-2Ille:tio/1 although it
would prefer that no action be taken for another
1c)11t1111then it was hoped that more information would be available as
t45the effects the present terms had had.
On the assumption, however,
that the Board felt it desirable to tighten terms somewhat at this
ql4e314r.
Evans stated that he was prepared to recommend the adop-
tionof an
amendment effective Monday, October 16, 1950, which would
Pkvid.e a
uniform maximum maturity of 18 months for Group A (automobiles)
a
ppliances), and Group C (furniture) articles and for unclaasified
instalment loans, and which would increase the minimum
cl°174 PaYment
on Group B and C articles to 25 per cent and 20 per cent,
Nleetively.
He also recommended that the provision exempting articles
'4ti-rig less
than 100 from the down payment provisions be changed to
PkVide
su i,
c.(4 an exemption for articles costing less than 00.
Mrs Evans added that considerable study had been given the
till4tion
whether
°t the ileguiationcharge account credit should be brought with the scope
and that, while there was no unsurmountable adminLtive Problem, he was
inclined to feel that such credit should not
-11"Ilded. If the terms of the Regulation were tightened severely,
4light become
1,ktirie evasion
necessary to include charge accounts as a means of preof the Regulation and of answering the charge that the
'''&4tic3r1 was
discriminatory in its effects upon different classes of
th
-
but he did not feel that enough would be accomplished
eredit s
tandpoint by the inclusion of charge accounts to warrant
2 e"yAr,
V 1:0
1(0450
-3-
brin.
%4Lng them
--.
under the Regulation at this time. Furthermore,
ettb el
of the administrative problems involved, their inclusion
"culd
go no
mean some delay in making effective an amendment which would
further
than tighten existing terms.
At Mr. Evanst request, Mr. Lewis stated that the question of
inclUding
charge accounts had been submitted to the Federal Reserve
t
hi8
week and that nine of the twelve felt such accounts should
-" pe covered, while three would include them within the scope
Of
the
trade Iv
cgulation. He also said that the overwhelming sentiment in the
48 that
charge account credit should not be included.
MI% Lewis expressed the opinion that inclusion of charge
„
4°%1111t8 W(3,
..-Ld not result in much restriction of the volume of credit
tided,
In response to a question from the Chairman, Mr. Young stated
th.44 whia
6 he
t
he
did not feel inclusion of charge accounts would curtail
Ill" of charge account
tro
'`ect
1 especially
ttori bet
°re the
)41,4
credit much, it might have a psychological
if such accounts were made subject to the Regula-
Christmas shopping season. He went on to say that he
(lisp
c)sed towards stricter terms in the Regulation in the light of
thegr
°wing inflationary pressures.
Chairman
several large
McCabe then reported conversations with
t°1ztob.t,
4-le manufacturers within the last few days as well as a con-
1493
10/12/50
tOfl
-4with Mr. Symington, Chairman of the National Security Re—
Board, who has responsibility for coordination of functions
delegated by the
Executive Order issued by the President pursuant to
the
Defense Production Act of 1950, at a meeting last week at which
the terms of
Regulation 4 and of Regulation X, Residential Real Estate
Credit,,
ere
discussed. At that time, he said, Mr. Symington ex—
Pressed the
view that the terms of Regulation
down
arid a
should provide for a
Payment of 40 per cent in the case of automobile pur—
maximum maturity of not more than 15 months, a minimum
(61111
payment of 1/3 and maximum maturity of 15 months for appliances,
44c1 a
minimum do,.in payment of 25 per cent and maximum maturity of 15
torithe
for
furniture• During the course of the meeting, the Chairman
Raced.
a telephone call for Mr. Symington for the purpose of obtaining
4„ 1,
-re8ent views but was informed that he was not available. He then
tkilt
ttor:07 t
elephone with Mr. Keyserling, Chairman of the Council of
tt
111c Advisers, and upon concluding his conversation stated that
lerling Was inclined toward a maturity of 15 months in the
4tdlt
existing inflationary pressures, but that he had said he would
,e to
14tela
c°nsider the matter further and talk with the Chailman again
tc3daY or tomorrow morning.
Evans stated that he would be willing to go along with the
orlths M
aturity for automobiles if 'Mr. Symington would request the
)4N to
Pl'ovide for such terms in writing.
I 474
1V12/50
-5-
Mr. Carpenter stated that before Mr. Eccles left for Chicago
t°clar, he stated that he was in favor of tightening the terms of
ati011 Vi and that he would like to see the maximum maturity set
15 Months, especially on Group B and C items. Er. Carpenter also
Said
that
Vardaman stated at the meeting on October 5 that, while
liew°11-14 be
absent from this meeting today, he Would vote to approve
'4114telier terms were
recommended by Mr. Evans.
ntlring the discussion, Mr. Evans withdrew from the meeting
to
k-el) another appointment stating that he would support whatever
'41s the
Board adopted but that it was his recommendation, in view
°t
study made by the staff and by himself and of the discussion
4ttill
ahotld
meeting, that the maturity at this time should be reduced
Months to 18 months on automobiles and that down payments
be
ao suggested in his recommendation earlier in the meeting.
hairman McCabe suggested that no vote or action be taken today
itIlt'espect to the terms
but that he be authorized to discuss the
1114ttel
ther
th Mr. Symington and Mr. Keyserling, and that there
a rtir'ther consideration of it at a meeting tomorrow morning.
This suggestion was approved
unanimously.
At this point all of the members of the staff with the excepMessrs. Carpenter, Sherman, and Kenyon AthdreJ, and the action
't'eth respect to
each of the matters hereinafter referred to was
t'kli 13Y- the
Board:
14
,
5
ICV:1450
_
6-
Minutes of actions taken by the Board of Governors of the
4cieral Reserve System
on October 11, 1950, were approved unanimously.
M
emorandum dated October
5, 1950, from
Mr. Boothe, Assistant
41'eetor of
the Division of Administrative Services, recommending that
44(1 136 Shipp, gardener in that Division, be transferred to the newly
e8tablished position as general mechanic in that Division, with an
Illerease in
his present basic salary from
"ective 0
ctober 15, 1950.
0,154 to
0,300 per annum,
Approved unanimously.
Llemorandum dated October 10, 1950, from Mr. Boothe, Assistant
ector
of the Division of Administrative Services, recommending that
ttett • " u.
Shepherd, a clerk in the Division of Research and Sta-
es
'be transferred to the Division of Administrative Services,
''Ith 4
0
"dllge in her title or in her present basic salary of 0,275
effective October 15, 1950.
The memorandum also stated
Y°1111g Was agreeable to this transfer.
Approved unanimously.
Merpi
.0randum dated October 10, 1950, from Yr. Marget, Director
4 Div;
--elon of International Finance, recommending the appointment
la
°te4Y Economon as a clerk-stenographer in that Division, with
ale sea
tLe
arY at the rate of 42,650 per annum, effective as of the date
ch she enters
upon the performance of her duties after having
4d the
usual physical examination.
Approved unanimously.
1476
1V12/50
-7Memorandum dated October 11, 1950, from Mr. Young, Director
°tI the
'
4-vision of Research and Statistics, recommending increases
the basic annual salaries of the following employees in that Di\1st°,
" erfective
October 15, 1950:
1-7''ert IF, 110
ss
644'prsaY Altmann
ii'tt.-19.1-11ille Franklin
J. Haller
Title
Economist
Research Assistant
Clerk
Clerk-Stenographer
Salary Increase
To
From
4E75
0,100
3,475
3,350
2,650
2,650
2,730
2,730
Approved unanimously.
Letter
Of
Rich,
to Mr. Leach, President of the Federal Reserve Bank
reading as follows:
4There is quoted beloa a cable from Mr. John
tx-te
,
Ceir17) Governor of the Central Bank of Ceylon, Colombo,
ch:410n, to Ur. Dembitz, in which he suggests some slight
Iricp,g?s in the compensation and living arrangements prein
outlined in our letter to you of September 22
zent°1-Inection with Mr. G. Harold Sneadls proposed assignto the Central Bank of Ceylon:
'Delighted your letter September twenty five
but suggest two variations terms first since
Snead subject Ceylon income tax on income from
all sources Board should ask Central Bank pay tax
second since we prefer Snead and wife live in
hotel (simpler for them and very satisfactory)
Propose Central Bank pay hotel room rental plus
ten percent board and room charge to cover tips
stop Sample charge Galle Face Hotel fortythree
41. rupees per day double room with meals.'
Man -Lf the changes are agreeable with your Bank, we would
the Proposed cable to Mr. Eater, which was enclosed
lietter to you of September 22, to read as follows:
Federal Reserve Bank of Richmond has agreed
and Board of Governors has approved loan of
G. Harold Snead, Chief Examiner of Richmond
Bank, to Central Bank of Ceylon for period not
toexceed one year plus travel time. Richmond
147?
1°/12/50.
—8—
"Bank will continue to pay Snead's salary
and will expect Central Bank of Ceylon to
reimburse expenses and provide quarters on
basis similar to that set forth in BoardIs
letter to you of November 30, 191_18, amended
to conform to your cable Dembitz October 4
regarding payment of Ceylon income tax by
Centr,q1 Bank and agreement on hotel living
arrangements. Mr. Snead would be accompanied
by wife only, no children. If these arrangements agreeable to your Bank and if arrangements can be completed in time, he contemplates
leaving by sea about November 1.1"
Approved unanimously.
Ot
Letter to The Honorable G. Mantzavinos, Governor, The Bank
l'eeee, Athens, Greece, reading as follows:
„ Itae are pleased to acknoaledge your letter of
Sept
bv.mber 28 regarding a second visit to your country
dg, Jur. Delos C. Johns, Vice President and General
allIcInsel of the Federal Reserve Bank of Kansas City,
joh,t0 inform you that it will be convenient for Mr.
1\101-7
- 8 to leave for Greece on or about the first of
izaner. He will be prepared to remain for approxOne month, or possibly somewhat longer should
it
hie-vPear necessary that he do so in order to complete
as
signment.
In e propose that the financial arrangements reto Mr. Johns' forthcoming visit be on the same
arra4d-L basis as prevailed previously.
Under this
the l'gealent Mr. Johns would continue on the pay roll of
tank
'
ecleral Reserve Bank of Kansas City, while the
cola of Greece would reimburse the Reserve Bank on aclatt
rit of his transportation and other expenses. T1,1%
frt el' would consist of a per diem at the rate of
1114the date of Mr. Johns' departure from Kansas City
the—' his return, plus a representational allowance at
l'ne of 0100 per month.
the o 'kr. Johns will keep in touch with Mr. Gunter, of
renoY Committee, with regard to the exact date
)
c t O'
arrival, arrangements for living quarters, and
-4-ar
matters.
14`,78
-0-
"The Board and the Federal Reserve Bank of
Kan
, sas City are pleased to be able to accede to
J:ur renewed request for Mr. Johns' services, and
,e trust that you will feel free to call upon us at
silY other time when we may be of service."
Approved unanimously.
Letter to Mr. Miles L. Colean, Room 720, Transportation
/
1
444
ng, Nashington,
D. C. reading as follows:
"The Board of Governors of the Federal Reserve
8Istsra has approved the recommendation of the Divion°11 of Research and Statistics that you be engaged
contractual basis as a consultant in connection
th'n the work for the Board on real estate controls;
°fat the fee be
at the rate of 46.25 per hour (a total
eij50.00 for an 8-hour day) for work for the Board
pe,!ler in :iashino-ton or outside this city; that the
1.0d within which your services may be requested
12 er current Board authorization extend from October
tilt1950, to no later than December 31, 1950; and
thQ Jou receive traveling expenses in accordance with
or '
n jc)ard is travel regulations applicable to the head
tr:V.stant head of a division. For purposes of
headej- 4ashington, D. C., will be regarded as your
all,quarters. The Director of the Division of Research
aOtatistics has
been authorized to request your
vices when in his opinion they are needed."
Approved unanimously.
tl1Ra
Letter to the Presidents of all Federal Reserve Banks, readf°11ows:
"A question has been presented as to whether
q114/, D/ Part 1 of the Supplement to Regulation 1 inPaving of city streets and the construction of
enant curbs, gutters, and sidewalks, where the
°f the work is financed by special assessments
zilarie
td by the city against the abutting property purt0 a statutory Procedure therefor.
"Under the State statute in question, the mimic-
1 479
1V12/50
-10is authorized to contract for the
to orovide the time, terms and conditions of
PaYment of the assessments. Such assessments are made
a first and prior lien against the property affected
lso a personal liability of the owner of such
Property
The statute provides also that the assess'uhich may be levied only after notice and hearshal;
be apportioned among the parcels of abutting
and the owners thereof in accordance with a
if°PertY
„
th'°flt foot plan', or, where this method is inequitable,
enen on some different basis so as to produce substantial
of benefits and burdens.
me,
4 "In the Board's view the foregoing street improvein this case do not come within Group D. The
areellities involved are essentially improvements of the
or the adjacent land, rather than 'in connection
Gr• o" existing structures' as that language is used in
whelg D. All of the adjacent property would be affected,
Pea,'" highly improv-d or vacant lots. It does not apla+- uhat the construction work would necessarily remore to one piece of property than to another in the
• '3a
concerned.
"4hile it is believed that the views herein may
othe aPPly in cases of this character that may arise in
/43.1.7r States or local areas, the matter is one which may
1,widely in certain situations because of differences
to Idcal law or custom. Thus, it would appear inadvisable
attempt to
lay down a general rule covering all cases."
7P,
1 authority
Work and
Approved unanimously.
Tea.
_
:gram to Mr. Leedy, President of the Federal Reserve Bank
Icarlsas
ultY, reading as follows:
With 7°ur wire re statement of borrower in connection
Re '
X. de feel that words 'under penalties
era• ielogulation X of the Board of Governors of the E:edbort "eserve System' should be of some advantage in making
statc
:
7ers more conscious of the necessity for accurate
•
ents and, accordingly, that these words, which are
iri thar to those in income tax returns, will be helpful
I4 al:, administration and enforcement of the regulation.
illadj event, however, it seems desirable that forms
available at all the Federal Reserve Banks should
1480
1V12/50
"be "uniform in language. Je recognize, of course,
t_
that
the borrower could modify the form if he so
desired in this respect or in any other respect so
°ng as it contains the information required by the
re
gulation."
Approved unanimously.
Letter to Honorable Emanuel Celler, Chairman, Subcommittee
O St.
—ItclY of Monopoly Power, Committee on the Judiciary, House of
Prese
ntatives, ,Jashington 25, D. C., reading as follows:
00,71 "The proposed merger of the Brooklyn Trust
yo PahY with the Manufacturers Trust Company of New
2Ork to which you refer in your letter of September
in 01950, was considered by the Board of Governors
(v1(°T1ection with the provisions of section 1213
which
ha kL1-) of the Federal Reserve Act, as amended,
Ins,
sinoe become section 18(c) of the Federal Deposit
"ranee Act. That section provides, in part, that:
'No insured bank shall (i) merge or conwith an insured State bank under the
Charter of a State bank or (ii) assume liability
to pay any
deposits made in another insured bank,
-Li' the capital stock or surplus of the resulting
or assuming bank will be less than the aggregate
capital stock or aggregate surplus, respectively,
of all the merging or consolidating banks or of
all Parties to the assumption of liabilities,
at the time of the shareholders: meetings which
authorized the merger or consolidation or at
.41e time of the assumption of liabilities,
-Less the Board of Governors of the Federal Reserve
a
System gives prior written consent if the
or resulting bank is to be a State memsesrutilgc.
445 0,The Manufacturers Trust Company now has capital
Tr.t0,000 and surplus $60,000,000 and the Brooklyn
surplus $6,000,000.
The,
Company
Auer
. has capital 48 200 5000 and
Ilfact gr is to be effected under the name of the Manis tolTers Trust Company and the continuing institution
Theef
, "ave
-- $50 3,
Qo5000 capital and 469,440,000 surplus.
''e, the capital stock of the continuing institu-
4
10/12/5o
—12—
"ti°n will be less than the aggregate capital stock
of the merging banks, although its surplus will be
greater than the aggregate surplus of the merging banks
and its combined capital and surplus will exceed the
11331"esent aggregate capital and surplus of the merging
!
t,
iirike. In the circumstances, the written consent of
,"a Board of Governors was requested and it was granted
AllgilSt 31, 1950.
Manufacturers
Tra "The increase in capital stock of the
dividend
stock
through
a
Company
be
effected
is to
of
'4-5,750,000 to be paid to holders of record prior to
Illerger (187,500 shares, par $20) and the issuance of
a2e,
st)'?0 shares (01,640,000 par value) to be exchanged for
sii°c of the Brooklyn Trust Company. Each of the 82,000
"of Brooklyn Trust Company stock outstanding is to
bear
surrendered for cancellation in return for 0183 in cash
ma One share of Manufacturers Trust Company stock. The
thflagement of Manufacturers Trust Company .chose to request
a ritten consent of the Board of Governors to merge as
°,P,osed rather than further increase capital stock by
thr10,000 par value. Had capital stock been so increased
rn
esaesnt of the Board of Governors would not have been
reciur
r
"Although the specific question which the Board
wa,Q req1.1axed
pea_
to consider under section 12B (v)(4) of the
be,'ral Reserve Act (now section 18 (c) of the Federal
pe°sit Insurance Act) aas whether the merger should be
tta:{uitted without an increase in the capital stock of
_3Xa0turers Trust Company to an amount equal to the
00111°1-lied capital of that institution and Brooklyn Trust
to PanY prior to the merger, consideration also was given
e011ateral matters and implications, including the
t of the proposed transaction upon the Manufacturers
Corn
and upon the competitive situation.
Pron,'here appeared to be no reason to object to the
8ed merger from the standpoint of asset condition,
El
eolZacY of capital, and competency of management. Ac—
Marr,',,ng to statements submitted as of June 30, 1950, the
t2 rcturers Trust Company had total resources of
T4 P- 1800,000 and the Brooklyn Trust Company 0244,070,000.
t„
lar60tal
resources of the resulting institution would be
Prim
`'ei but not proportionately much larger than the present
oth r,a1 unit and not disproportionate as compared with
toro- J-nstitutions with which it would compete in the
ug1 of Manhattan and the Borough of Brooklyn. It did
4
Trt:
1482
-13appear that the proposed transaction would tend
create a monopoly.
"Polk's Bankers Directory for March 1950 (latest
,vailable, although there have been a few changes since
t was issued) shows three national banks and twenty:rien State chartered banks and trust companies, other
ran the Brooklyn Trust Company, having their head offices
r
i the
Borough of Brooklyn and operating 38 branches
°!t, but not all, of which are located in Brooklyn. The
tot
otal
resources of these banks amounted to 0,725,085,000
21 which the bulk (3,511,526,000) was represented by
,
w savings banks. In addition, the Borough of Brooklyn
C
as served by 70 branches of banks and trust companies
21v,i,ng head offices in the Borough of Manhattan, including
Th °ranches maintained by the Manufacturers Trust Company.
b,
s banks having head offices in Manhattan and operating
01,anches in Brooklyn were 13 in number and included some
wit;lialle city's largest, such as the National City Bank
"16 branches in Brooklyn.
whi "Although this transaction did not appear to be one
to eh Would tend to create a monopoly, it seems desirable
.ntion again that the Board's authority in the matter
e:e4s
thos ed only because of the fact that the management of
tca Alanufacturers Trust Company preferred to seek the
As cl ts consent rather than issue additional capital stock.
Illiciinclicated above, the Board's consent was required here
escs
jsection 12B (v)(4) of the Federal Reserve Act (now
bee 1°n 18(c) of the Federal Deposit Insurance Act) only
li
allSe of the fact that, although the capital and surplus
lar 'anUfacturers Trust Company after the merger will be
ariciC? than the capital and surplus of that institution
of liurooklyn Trust Company before the merger, the capital
eomeanufacturers Trust Company after the merger will bc
b what smaller than the capital of the two institutions
/10
ef°
are the merger. In other words, the Board would have
atritY in the matter except for that difference in
capitt
o
t
caaa "This fact
would seem to be of interest because it
Act 8 attention to a weakness in section 7 of the Clayton
'a Provision for which this Board has responsibility
tor
compliance where applicable to banks. As
I
Y011 ZIIIr°reing
acqui °"TI section 7 in effect forbids one corporation to
core the ca ital stock of another corporation engaged
competition or
if
tend Tmerce
„o
• the effect may be to lessen
ureate a monopoly. However, the section does not
1483
10/12/50
n,
'
13PlY to the acquisition of assets.
ti:ves"1". R. 2734 which passed the House of RepresentaRe
on August 15, 199, and is now pending in the
"ihriate, would broaden section 7 of the Clayton Act so
bil;Zt it would also apply to acquisitions of assets -0n1Y in the case of corporations that are subject to
the
jurisdiction of the Federal Trade Commission. It is
clerstood that, with the exception of this Board, all
'the
Other agencies having responsibility for enforcing
LaPllance with section 7 of the Clayton Act already have
authority, under other provisions of law, over acilla`kl-sitions of assets in the case of persons for ahom they
7ive enforcement responsibility in connection with section
tio li°wever, even with the enactment of H. R. 2734, sec7 would continue to be confined to acquisitions of
'
16a1 stock in so far as banks are concerned."
Approved unanimously.
Letter for the signature of the Chairman, to Mr. L. M.
?resident, Bank of America National Trust and Savings Asso0
' n Francisco 20, California, reading as follows:
'tat,lori
se,, "This will acknoaledge
receipt of your letter of
s4
,;:emb-- 2o, 1950,
reiterating your request for anthe
questions contained in your letter of July
th.
/
1
4, "You were advised in reply to your letter of
Ilth that because the matters referred to in it
the
with the subject of pending litigation,
Board
be ,'
oard did not believe that any useful purpose would
ilv-e ved by a present exchange of correspondence deal
:
sti]Ilth these i;matters. The litigation, as you know, is
al
:
te Pending and therefore the Board sees no reason to
the position taken in its previous letter."
Approved unanimously.
Letter to the Presidents of all Federal Reserve Banks, readows
"In continuance of the established practice, there
1484
10/12/5o
-15-
"is enclosed a copy of the worksheet (F. R. )456) for
e in compiling member bank operating ratios for 1950.
A suPPly
of these worksheets is being sent under separate cover to
the Reserve Banks that use this form.
"The worksheet is the same as that used for 190
except1,
for a few minor technical changes: (1) Space
been provided for the totals of the non-additive
ratlos;
these totals, which were entered in the margin
the 1949 worksheet, facilitate machine tabulations.
2) The
calculation of actual net losses on loans in
the
memorandum
section has been simplified and space
has
been provided for including balances in valuation
De
es?rves at the beginning and end of the period. (3)
84. 41a1 subdivi.sions of the item numbers have been subuted for alphabetical subdivisions. (4) The size
r the form has been reduced slightly. These changes
have
been cleared with the President's Conference Subcommittee on Member Bank Operating Ratios:
se ."It will be noted that provision has been made in
poc lon A for the use of figures from the fall call reThis is in accordance with the established praoair'? of using, figures from the fall call when they are
poaliable, instead of the end-of-the-year call to make
esile early publication of the ratios:
se
'The procedure followed last year should be obth:ved in submitting this information to the Board after
completion of the tabulations made at your Bank."
Approved with the understanding
that the letter would be sent when
the worksheets have been printed.
.t1
liemorandum dated October 6, 1950, from Mr. Chase, Assistant
recommPnding that Dr. E. A. Goldenweiser, consultant to
tde
4.1.1d
'be reimbursed at the rate of $50 per day for two working
sPerrt with him at his home preparing him to take the stand in
ttal
Of economists' testimony in the Clayton Act proceeding
4111at, rp,
--ansamerioa Corporation, and that the Board approve an
ellient under which Dr. Goldenweiser would be compensated at the
1485
10/12/50
-16-
450 a day for attendance, as outlined in the memorandum, at
the
%ton Act proceeding when it reconvenes in .iashington on
ktober
10 1950 with the understaading that he aould be allo-ded
liecesBal'Y transportation expenses and a per diem in lieu of subsisterlee °.1 $9 in accordance with the Board's official travel regulations
41YPlicable to heads of divisions, together with such supplemental
L14warice for
other expenses as may be approved by the available memof
the Personnel Committee.
Approved unanimously0
lAernorandum dated October 12, 1950, from Yr. Marget, Director
°etheivision of International Finance, recommending that the
:Irlee8 of Lewis N. Dembitz, Assistant Director of the Division of
qlterilationai
Finance, be made available to the State Department in
(iel' that he
might serve as principal adviser on German debt problems
t(5 the
u
fluted
States delegation scheduled to begin consultations with
4it'sh
0%l
a —and French representatives in London on October 24 regarding
N41, ec°11°Illic problems and other matters referred to them by the
and British foreign ministers and the United States Secretary
"St
ate, with the understanding that the Board would continue to
Nr k
Dembitzis
ate
salary for the period of the loan and that the
bePartment aould assume responsibility forall travel, per diem,
4litti
exPenses incident to the mission.
The memorandum also
that it
was expected that :viz-. Dembitz would be away from the
4)/12/so
-17-
BOard
troill about the middle of October to the middle of December.
Approved unanimously.
@FedFRASER