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Minutes of actions taken by the Board of Governors of the Itederal Reserve System on Thursday, October 19, 1950. PRESENT: Mr. Mr. Mr. Mr. McCabe, Chairman Szymczak Evans Norton Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Minutes of actions taken by the Board of Governors of the Neral Reserve System on October 18, 1950, were approved unanimously. Memorandum dated October 161 1950, from Mr. Noyes, Assistant "Istrator of the Office of Real Estate Credit, recommending that kiss Aclele Hug, a stenographer in the Division of Administrative 4rvi_ be transferred to the Office of Real Estate Credit as 4eriet4r7 to Mr. Fisher, with an increase in her salary from $2,875 d, 3,10n -- Per annum, effective October 29, 1950. The memorandum also etatea that the Division of Administrative Services was agreeable to thie trallsfer. Approved unanimously. biteet Memorandum dated October 17, 1950, from Mr. Boothe, Assistant °r of the Division of Administrative Services, recommending an qtreas e in the basic salary of Mrs. Louise L. Biller, operator, key 1)1.14c4, that Division, from $2,650 to $2,730 per annum, effective tob -r 29, 1950. Approved unanimously. "/19/5o -2- Memorandum dated October 17, 1950, from Mr. Boothe, Assistant Di ' l eetcr of the Division of Administrative Services, recommending the 415014tment of Mrs. Ruth H. Goodyear as a stenographer in that Division, Intl/ basic salary at the rate of $2,875 per annum, effective as of the 4tellPaa which she enters upon the performance of her duties after 1141114 Paesed the usual physical examination and subject to a satisr(tct0r7 investigation of references. Approved unanimously. Letter to Mr. Earhart, President of the Federal Reserve Bank or s_ Prancisco, reading as follows: "The Board of Governors approves the payment of Ii!"-arY to the following officers at the rates indicated „l!ich, according to your letter of October 11, 1930, 17e the rates fixed by your directors, for the period IcZinning with the date upon which each assumes his responsibilities and continuing through April 3°, 1951: Annual , Name Title all-LIEL E. Everson Assistant Vice Presi$9;00-0 dent, Head Office L R. Barglebaugh Assistant Manager, 8,000 Salt Lake City Branch J. Thomas Assistant Manager, 6,300" Los Angeles Branch 8, Approved unanimously. or Letter to Mr. Weigel, Secretary of the Federal Reserve Bank t. L 0111e, reading as follows: "Reference is made to your ur letter of October 16, 1!950, advising that effective January 1 1951, Group rsPit al Service, Inc. will increase its benefits and tie I ; 1 ; 1 47) P m9/50 -3- "It is noted that the estimated annual expense to the Bank for providing both hospitalization and surgical coverage is $21,600; $4,800 Of which represents the increase to be effective January 1, 1951. "The Board will interpose no objection to the proposed expenditure." Approved unanimously. Letter to Aetna Life Insurance Company, 1511 K Street, N. W., 11141111Ston, D. C., reading as follows: "In a recent telephone conversation with Mr. Crocker of your group life division we were informed et you would have no objection to the inclusion of Members of the Board of Governors in our group in!urance plan (Policy No. 8042) which is underwritten uY Your company. "It has been decided that members of the Board 11 be included in our plan and it seems desirable ; 111.at the contract be explicit on this point. It 4111, therefore, be appreciated if you will forward e44) "a rider stating that the term 'employee' when0er used in the contract includes members of the 13/7 ard of Governors." n Approved unanimously. Letter to Mr. Peyton, Chairman, Conference of Presidents, 1'41 Reserve Bank of Minneapolis, reading as follows: 14 "The Board is glad to concur in the plans outlined tb the statement submitted at the September meeting of :e Presidents and the Board for the wartime protection 't records. "We have been in touch from time to time in recent weeks Iv with With various representatives of the Government ti;sth to the protection of Government records 1/141 while no general plan has yet been released, we toll keep in touch with developments as they may relate he Board, the Treasury, and other Government agencies. 4'e Board will be pleased to coordinate its activities 'IA this regard with the larger program outlined in the 1553 1Y19/50 "Presidents? statement covering the records of the Pederal Reserve Banks and commercial banks. "If Mr. Rounds is selected for the purpose indicated in the Presidents' statement, it will be appreciated if he will keep in touch with Mr. Evans, 'wham the Board has asked to handle the matter so tar as the integration of the program with the activities of the Board and other departments and agencies of the Government is concerned." Approved unanimously. Letter to Mr. Calvin K. Snyder, Secretary, Realtors' Washington ittee, 1737 K Street, N. W., Washington 6, D. C., reading as follows: "This will acknowledge your letter of September 19 / 1950, addressed to Chairman McCabe. "We appreciate your deep interest in the problem ( 2! real estate credit controls. During the past weeks f̀,Ile Rousing and Home Finance Agency and the Board of °vernors of the Federal Reserve System have held ' tings jointly with mnny of the large associations :tut are generally representative of the building 111struction and mortgage finance industries for the scussion of the regulation on real estate credit, 11:d the many constructive suggestions made by them ,re of great assistance in the development of the .ue gulation. . 0 "We are placing firm reliance on the cooperation 44 °rganizations like your own in the effective accomplishment of the purposes of the Defense Prot10n Act of 1950 authorizing the new real estate 2'edit regulations, objectives of which are the iii?.tenance of sound credit conditions and the proIon of urgently needed defense production. 4 Your offer to make the services of the National eciciation of Real Estate Boards available to us in 1c s4aect1on with the administration of the regulation a will be PPreciated, and you may be assured that it kept in mind." tn 7 j Approved unanimously. 10/19/50 -5- Telegram to the Presidents of all Federal Reserve Banks, l'e8411113 as follows: "In order to ascertain the extent to which the Provisions of section 5(g) of Regulation X are being utilized the Board desires that you report the number Of requests received for exemptions under section 5(g) laP to the close of business Wednesday, October 18, and the number of such requests granted up to that date 'ogether with the number of dwelling units involved kir known). Please provide a similar telegraphic l'ePert as of the close of business each Wednesday further notice. In connection with requests for e/comptions under section 5(g), the applicant should !tate specifically in each case whether applications rtpr insurance or guarantee have been filed with FHA °I* ITA. If such an application has been filed, it would ; eft that ordinarily there would be no proper basis ;or the granting of an exemption by the Federal Reserve i41c. In general it is the Board's desire that section dtikg) should be strictly interpreted and that exemptions , l I culd not be granted unless there is a clear showing stibstantial hardship. The mere fact that a builder v'r other person may have made substantial commitments or ertakings before August 3 is not sufficient basis for 181,e granting of an exemption unless he is also able to 1,rli that he will suffer substantial hardship if he r8 to comply with Regulation X in obtaining credit tather than obtaining it on the basis previously con.."Plated by him and the Registrant. In this connection ; LLB° it is the view of the Board that section 5(g) is be interpreted as referring only to the credit to i;.°51tance new construction which is extended to the , Uilder or other person who made substantial commitments Undertakings before August 3 and the provision does tcs.t aPlay to credit involved in the subsequent sale of e Property by such builder or other person to third varties." r Approved unanimously.
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