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1420
A meeting of the Board of Governors of the Federal Reserve
System was held in Washington on Thursday,
October 16, 1941, at 11:30
a.m.
PRESENT:

Mr. Szymczak
Mr. McKee
Mr. Draper
Mr. Bethea, Assistant Secretary
Mr. Carpenter, Assistant Secretary

The action stated with respect to each of the matters hereinafter referred to was taken
by the Board:
Memorandum dated October 15, 1941, from Mr. Nelson, Assistant
to

Secretary, submitting the resignation of Lois W. Jones, nurse,

become effective as of the close of business on December 16,
1941,

and re
commending that the resignation be accepted as of that date.
The resignation was accepted.
Memorandum dated October 14, 1941, from Mr. Goldenweiser, Director of
the Division of Research and Statistics, recommending that,
effective upon the termination of her temporary appointment on October
31
'1941, Miss
as
draftsman
at the
rate of

Elizabeth C. Fischer be appointed on a permanent basis
in that Division, without change in her present salary
1 1,620 per annum.
1.
Approved unanimously.

Memorandum dated October 13, 1941, from Mr. Goldenweiser, Director

of the Divisio
n of Research and Statistics, recommending that

148a Heien L.
Brown be appointed, on a temporary basis for a period
4°t to exceed three months, as a clerk in that Division, with salary




1421_
10/16/41
at the rate
of

1.1440 per annum, effective as of the date upon which

she enters
upon the performance of her duties.

The memorandum also

suggested that, inasmu
ch as Miss Brown would probably be recommended

for a permanent appointment at the expiration of her three months'
temporary appointment provided her work was satisfactory, she
be permitted to become
a member of the Retirement System and that her temPc)rarY* appointment be made subject to her passin
g satisfactorily the

uslial Physical examination.
Approved unanimously.
Memorandum from Mr. Goldenweiser, Director of the Division
f Research and Statis
tics, submitting the resignation of Miss Marjorie
rakes as a clerk-stenographer in that Division, to become effect
ive
48 (If the close of business on October 27, 1941, and recommending that

the

,

'
eelgnation be accepted as of that date.
The resignation was accepted.
Letter to Mr. Hays, Vice President and Secretary of the Federal

Reserve Bank
of Cleveland, reading as follows:
"The Board of Governors approves the changes in the
personnel classification plan of your
Bank, as requested
ln your letter of October 13, 1941."
Approved unanimously.
Cablegram reading as follows to Mr. Gardner, Senior Economist

the
4 flien

Board's Division of Research and Statistics, who is in Cuba
as

"I' of the mission to assist in developing legislation to establish




f

1422
10/16/41

-3-

a central
bank:
"Board approves retention Frazer three weeks longer
if necessary."
Approved unanimously.
Letter to Mr. Allen of the Credit Department of the Federal Reserve Bank of New York, reading
as follows:
"This is in reference to your letter of September
23, 1941, relating to the methods of determi
ning the actual net output of household furnaces and heating units
for furnaces under the Board's Ruling W-51.
"Enclosed is a copy of a letter sent to the Stoker
Manufacturers Association accompanied by a memorandum indicating the way in which Ruling W-51 should be applied
in the case of the stokers manufactured by the members
of the association.
This memorandum outlines principles
Which have general application in fields other than coal
stokers and it is believed that you will be able to answer
most inquiries by reference to these principles.
"The Board prefers not to issue a ruling which would
say that the
net output for cast iron boilers should be
the rating determined in accorda
nce with the Institute
or Boiler and Radiator Manufacturers' code, but it
is believed that it will be clear from the above mentioned memorandum that the I.B.R. code employs the correct method.
Tf this information is given to the institu
te it should
1?e able to notify the manufacturers and
dealers
accordingly.
This will not preclude manufacturers who are not
,embers of the institute from using ratings that are not
3
:c.lenti
fied as I.B.R. ratings, provided they are established in accordance with the prescribed
method.
. "No special inquiries have been presented to the Board
wIth reference to steel boilers
or oil burners. If any
questions with regard to these articles are presented and
cannot be answered by reference to the principles previou
sly
Feferred to, the Board would appreciate having the matter
Drought to its attention."
Approved unanimously.
Letter to Mr. Fry, Vice President of the Federal Reserve Bank




1423
10/16/41

-4-

of Richmond, readin
g as follows:
"There is enclosed a copy of an undated letter from
Mr. H. M. Ewers, 1003 Harrison Street, Lynchburg, Virginia,
addressed to the 'Information Bureau, Washington, D. C.'
which has been referred to the Board.
"It is suggested that you reply to Mr. Ewers advising him that if the transactions are in fact separa
te,
they may be treated separately as suggested
in his letter.”
Approved unanimously.
Letter to Mr. Hodgson, Assistant Counsel of the Federal Reserve
184nk of Minneapolis, reading as follows:
"Your letter of October 6th enclosed a copy of a letter from you to
Mr. W. S. Dwinnell, Jr., Minneapolis Securities Corporation, 1214 Plymouth Building, Minneapolis,
Minnesota. This letter expressed the opinion that a credit
sale of an ice cube freezing machine would not be subject
to the
provisions of Regulation Vi even though the machine
has a capacity of less than 12 cubic feet.
"The Board agrees with your view that a refrigerator, the
sole purpose of which is to manufacture ice cubes,
1" -8 clearly designed for commercial use and so would not
be within
the classification of 'mechanical refrigerators
of less than 12 cubic feet rated capacity' in the Supplement to Regula
tion Vi."
Approved unanimously.
Letter to Mr. Hodgson, Assistant Counsel of the Federal Reserve
1/arlit of M
inneapolis, reading as follows:
f
"In your telegram of October 8 you asked
whether
ilrnaces, boilers, stokers, etc., designed for actual
net output in excess
of 240,000 B.t.u. per hour, are exluded from Group D-1
of the Supplement to Regulation Ilk,
even
though used in a single family home, duplex or appartment building.
"The answer to this question
is in the affirmative.
Ruling YV-51 was
designed to draw a line between heat




1424
10/16/41

—5—

"generating sources that would be subject to the terms of
the regulation and those that would not, no matter what
the character of the building in which they are installed.
This standard was established in order to avoid the many
difficulties for the dealer, the sales finance company,
or the enforcing agency if each heating unit
had to be
traced to its ultimate use."
Approved unanimously.
Letter to the Presidents of all Federal Reserve Banks reading
48 follows:
"There is enclosed for your information a copy of
a letter addressed to Chairman Eccles by the Attorn
ey
General of the United States under date of October 7,
1941, advising that the Council of State Governments
and the Governors' Conference Committee has offere
d to
assist the Federal Government in securing State legislation or administrative action which will be helpful to
the national defense effort or
in advising State officials concerning legislative or administrative propos
als
Which might be in conflict with the national defens
e program.
"The Attorney General requests advice as to any
measures in connection with the defense activities of
the Federal
Reserve System which we can foresee will require State action, with as detailed a description of
such measures as is practicable
at this time.
"In order that a suitable and prompt reply may be
made to the Attorn
ey General, it will be appreciated if
YOU will
advise the Board at your early convenience of
anY problems arising in your district in connec
tion with
the defens
e program which might be alleviated by State
legislation or administrative action
on the part of the
State authorities.
"In this connection, it might be helpful if you would
request your Counsel to review the laws of the States in
nur district regarding assignments of accoun
ts receivable,
irlast receipts, and similar subjec
ts, with a view of asrtaining whether it is possible to suggest any State
tegislation which would
facilitate the financing of subcontractors having
subcontracts arising out of the defense
Program.n




1425
10/16/41

-6Approved unanimously, together with
a letter to Mr. Biddle, Attorney General
of the United States, prepared for Mr.
Szymczak's signature and reading as follows:

"In the absence of Chairman Eccles and Vice Chairman
Ransom, this will acknowledge receipt of your letter of
October 7, 1941, regarding the offer made by the Council
of State Governments and the Governors' Conference Committee to assist the Federal Government in securing State
legislative or administrative action which will be helpful
to the national defense effort or in advising State
officials concerning legislative or administrative proposals
Which might be in conflict with the national defense program.
"In accordance with your request, we shall be glad to
advise you of any measures in connection with the national
defense activities of the Federal Reserve System which we
can foresee will require State action, as soon as we can
Obtain reports from the Federal Reserve Banks as to what
ifficulties, if any, they have encountered in the States
their respective districts which might be alleviated
IDY State legislation or administrative action on the part
Of the State
authorities."

Thereupon the meeting adjourned.

Assistant Secretary.

APPr'oyed: