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1454 A meeting of the Board of Governors of the Federal Reserve System. was held in Washington on iltonday, October 14, 1946, at 10:30 a.m. PRESENT: Mr. Mr. Mr. Lir. Mr. Eccles, Chairman Ransom, Vice Chairman Draper Evans Vardaman Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman The action stated with respect to each of the matters hereinatt 'er referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the P**al.-Reserve System held on October 11, 1946, vlere approved unmi4104844 _ ;;I emorandum dated October 9, 1946, from Mr. Thomas, Director Qf the Divl Sion of Lesearch and Statistics, recommending that the basic salary of David L. Grove, an economist in that Division, be itIcre48ed frail to 45,905.20 per annum, effective October ' ;o, 1946. Approved unanimously. 14QuorLndum dated October 9, 1946, from Mr. Thomas, Director the Division of Research and Statistics, recommending that the increases in 1),,Isic annul salaries of employc,es in that '7434 b e approved, effective October 20, 1946: 1455 10/14/46 -2- __Name Designation Eleanor S. Prase Elizabeth B. Sette Doris Plass Warner Economist Economist Economist Salary Increase To From $4,149.60 3,773.40 3,773.40 i4,400.40 4,149.60 4,149.60 Approved unanimously. Memorandum dated October 8, 1946, from Mr. Smead, Director Of the Division of Bank Operations, recommending the appointment of 1488 Patricia - June Banton, as a stenographer in that Division, on a Porir indefinite basis, with basic salary at the rate of $2,394.00 Per annum, effective as of the date upon which she enters upon the Perfc)rillanee of her duties after having passed the usual physical exanlinati0n . The memorandum also stated that Miss Banton was a member. of the Civil Service Retirement System, and would remain in that . systeni Approved unanimously. Memorandum dated October 8, 1946, from Mr. Van Fossen, 118jetarit Director of the Division of Bank Operations, recomaending he appointment of Mrs. Florence J. Lewis as a clerk in that Division, °II a temporary indefinite basis, with basic salary at the rate of C23394.o t1Pon the Per annum, effective as of the date upon which she enters performance of her duties after having passed the usual 1:111sica-1eXamina.tion. The memorndum also stated that Mrs. Lewis Was a member of the Civil Service Retirement System and would rmain t4 that system. 1456 10/14/46 -3Approved unanimously. Memorandum dated September 24, 1946, from Yr. Bethea, Director of the Division of Administrative Services, recommending that the Naowing increases in basic annual salaries of employees in that Division be approved, effective October 20, 1946: Designation Wayne A. Salary Increase To From Pollard Assistant Chief, Fiscal Section Elizabeth L. Carmichael Supervisor, Publications Section Harry E. Kern Supervisor, Sven Procurement Section Johnson John Foreman of Laborers M Robert. Poundston Pay Roll Clerk P. Warner Accounting Clerk 1447 E. Printing Clerk kUi . DoVi rsey Printing Clerk Heien .Staley L•Hulen Clerk-Stenographer l';°°dleY B Mechanic General tlbertootheJ. General Mechanic Philip D. Sadler Supply Clerk klliaz E.Faber Smoot Guard 776.60 4,902.00 3,648.00 3,898.80 3,021.00 3,021.00 2,845.44 2,770.20 2,770.20 2,544.48 2,469.24 2,619.72 2,020.00 2,020.00 1,690.00 3,271.80 3,146.40 3,021.00 3,021.00 3,021.00 2,770.20 2,619.72 2,694.96 2,243.52 2,168.28 2,020.00 Approved unanimously. Reaerve Letter to Mr. Neely, Federal Reserve Agent of the Federal 16"nk of Atlanta, reading as follows: .In accordance with the request contained in Mr. arIn's letter of October 9, 1946, the Board of ;nrIlors approves, effective October 1, 1946, the klrent of salary to Mrs. Genevieve M. Barnett, as ,ern,_ ue Assistant Federal Reserve Agent, at the rate °f 0,300 per annum." Approved unanimously. 1457 10/14./46 —4— Letter to Mr. Laning, Vice President and Cashier of the Federal Reserve Bank of Cleveland, reading as follows: "The Board of Governors approves the change in the Personnel classification plan of the Pittsburgh Branch, c?nsisting of the establishment of the position of Phy— sician, as submitted with your letter of October 4, 1946." Approved unanimously. Telegram to Mr. Earhart, First Vice President of the Federal Reserve bank of San Francisco, prepared in accordance with the action t "ak._ - at the meeting of the Board on October 11, 1946, and reading as fo llows: "Referring letter from Bank of America under date of October 3 to Grady, copy of whch was forwarded to the Board in your letter of October 5, the Board wishes You to send following letter to Bank of America: 'Mr. Carl F. Vente, Senior Vice President, Bank of America National Trust & Savings Association, San Francisco, California. Dear Mr. 1,,ente: 'Today we have been instructed by the Board of Governors of the Federal Reserve System to advise you that they have received the application embodied in your letter ad— dressed to ar. Grady, Chairman of the Board of this Bank, under date of October 3, filed by you on behalf of Bank of America N. T. & S. A., seeking the right to participate in the nomination of a Class A director for the Federal Reserve Bank of San Francisco, and the additioml right to vote in the election of such Class A. director. are instructed by the Board of Gov— ernors of the Federal Reserve System to fur— ther notify you that the Board considers Your application as one falling within the Purview of section 4 of the Rules of Proce— dure adopted by the Board of Governors of the Federal Reserve System, effective Sep— t''mber 11, 1946, pursuant to the reouire— 1458 ' ,/14/46 -5111 ments of the Administrative Procedure Act. A copy of the Rules of Procedure, to which reference is made is enclosed. te are further instructed by the Board to advise you that the application is being considered and will be handled pursuant to the Provisions of the aforesaid section 4." Approved unanimously. Telegram to the Presidents of all the Federal Reserve Banks, reading as follows: "Th' • 18 will inform you of a System conference on Regulation W to be devoted primarily to the subject of general revision or the regulation. It will meet in Washington starting , °ndaY morning, October 28, and continue through the afterof the following day, Tuesday, October 29. It is desired that each Reserve Bank should send one senior officer of the Bank and feel free to send one additional man who is working on the regulation. the whole group should be ept small enough to work efficiently, you may feel that it uld be desirable for you to have more than tv,o representalvee, in vvhich case communication with Mr. Parry is sugested. Please let us know as soon as possible who will represent You Wish your Bank and what hotel reLervhtions, if any, us to make. V.e should also like to be informed, c°rIvenient, of hotel reservations made by you directly." j Approved unanimously. Under date of October 4, 1946, Mr. Hitt, First Vice President Of the Federal Reserve Bank of St. Louis, advised the Board regarding 8. 11111111°er of violations of Regulation IV, Consumer Credit, by ConsolidatedR°Ille Purnishings Company, 3307 Washington Avenue, St. Louis, Missouri. Of letter Mr. Hitt enclosed an agreement signed by the president c°mP8nY admitting the violations and consenting to the issuance 1459 1O/14/46 -6- °I an order closing the business for three business days, October 17-193 1946 and stated that the agreement was the result of confer- "ces following the latest examination of the registrant, and that the Federal Reserve Bank felt that the closing procedure and the term covered therein were a fair penalty and one which could be rec°1111nerlded for acceptance by the Board. Upon recommendation by Ir. Ransom, the following order was approved unanimously with the understanding that a copy rould be sent to the Federal Reserve Bank of St. Louis, which would obtain the signature of the president of the Company consenting to the issuance of the order. It was also understood that the other Federal Reserve Banks would be advised by mail of the issuance of the order, but that no press release would be issued in connection with it: "BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM v:ASHINGTON, D. C. In Relation to Consolidated Home Furnishings Company ORDER. SUSPENDING LICENSE UNDER REGULATION b "Consolidated Home Furnishings Company having appeared President, Sam Lyner, in connection with alleged vioFceT-°ns of Regulation % of the Board of Governors of the t,:?ral Reserve System, and having waived notice and opporIV-tY for hearing before the Board and consented to the _°11ance of this order suspending its license, and having are oed that: 1. It was at all times mentioned herein and now is engaged in the business of making Instalment sales of listed articles at 3307 l'ashington Avenue, St. Louis, 'Missouri, and that 1460 ' 0/14/46 -7- 2. Prior to October 4, 1946, it failed to comply Kith Regulation W in a number of instances; and said Consolidated Home Furnishings Coilipany having further agreed that during the period of suspension of its license under this order it W111 close its office at the address aforesaid and that, upon resumption of business folloing the termination of this suspension, it will conform its business to the requirements of Regulatjo 1 , "The Board, having considered the consent, representations and agreement of the party named and under authority of Section 5(b) of the Act of October 6, 1917, as amended, elicl Executive Order of the President No. 8843, hereby orders: 1. That the license of said Consolidated Home Furnishings Company issued pursuant to the Board's Regulation 1: be and the same is hereby suspended for the period commencing at the close Of business October 16, 1946, and ending at the opening of business on October 21, 1946: Provided, that this order during the period of suspension shall not prohibit (a) the carrying on of regular office and accounting work, (b) the receint of any payments on existing obligations, and (c) the making of payments on any Obligations, including obligations to employees for salaries and wages; 2. Any terms used in this order that are defined in Regulation shall have the meaning - T herein given them. By order of the Board of Governors of the Federal Res,— frIzie 6y-stem this 14th day of October, 1946. toi ) (Signed) S. R. Carpenter, Secretary. th the undersigned, Sam Lyner, represent that I am 2 President of Consolidated Home Furnishings Company described in the foregoing order and that, having full cmathority to do so, I confirm the agreements and repreSentat .t out in the aforesaid order and consent to its islasler CONSOLIDATED HOME FURNISHINGS COMPANY (Signed) Sam Lyner, By President." 1461 10/14/46 Letter to the Presidents of all the Federal Reserve Banks, rea diAg as follows: "A Summary of Regulation W iTnforcement Reports for the month of August 1946 is enclosed. " ,Five lems were of the Banks indicated that enforcement probsubstantially similar for each class of RegisThe remaining Banks reported more enforcement :'1Ificulties in some fields than in others. These fields, fl order of importance, were as follows: (1) house-tohouse peddlers, (2) State-licensed small loan companies, jewelry stores, (4) soft goods vendors, (5) automobile dealers, and (6) furniture stores. byIn connection with the enforcement reports received the Board from the Federal Reserve Banks, some reflected 110t, in vestigation activity in respect of 'soft goods vendors'. may be that some investigations in this category were made by these Banks but lAere not properly reported as a ;result of a misinterpretation of footnote No. 1 on Form 011.11639. Combination of groups 'E' and 'I' was intended si Y for purposes of the 'Number of Registrants' column .21,” it Was was recognized that registration statements in ;1-"e°11 might not indicate the exact nature of busiiass activity. The information contained in individual velitijation reports should permit use of the 'soft goods Classification in respect of all other statistics." tnnt. i Approved unanimously. Telegram to Mr. Knoke, Vice President of the Federal Reserve of New York, reading as follows: "Your telegram October 11 Board approves loan by Your $ 111, : 1 Bank to Banco Nacional de Costa Rica of up to '" such loan to be secured by gold earmarked in Your Stull vaults. As indicated in your telegram it is underthat the loan is to be made on the following terms d conditions: (A) The amount to be advanced not to exceed $1,000,000 in the aggregate at any one time outstanding; such 1°an or loans to be made up to 98 per cent of the value of the refined gold bars held in your vaults d.s collateral; 1462 9Such loan or loans to run for three months, but no loan or renewal thereof to mature later than April (c) 30, 1947; Interest until further notice to be at the discount rate of your Bank (at present 1 per cent per annum) on the amounts actually advanced; and (D) The amount advanced at any time and the amount repaid at any time to be in round amounts of not less than t50,000. "It is understood that the usual participation will be °ffered to the other Federal Reserve Banks." Approved unanimously. Thereupon the meeting, ,purned. Secre arY• Chairman.
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