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1498 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, October 21, 1946. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Draper Evans Mr. Sherman, Assistant Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman Mr. Vardaman's office reported that he was absent from the city on Bankers c)fficial business attending the meet4,,ng of the Morris Plan As sociation at Virginia Beach, Virginia. The minutes of the meeting of the Board of Governors of the l'ederal kously. Reserve System held on October 18, 1946, were apv:.roved unani— lie moranclum dated October 18, 1946, from Mr. Thomas, Director Of the Divisicli of Research and Statistics, recommending that Miss PhYllis Bramlet, Secretary to Mr. D. M. Kennedy, be transferred from the Office of the Board Members to the Division of Research and Sta— t istics a clerk—stenographer in that Division, with no change in her Present salary at the rate of i3,021 per annum, effective Octo— ber 20, 1946. Approved unanimously. Mela°randum dated October 11, 1946, from Mr. Thomas, Director °r the D. lvisi°11 of Research and Statistics, reconniending the appoint— ent 01. u. tervora 'lss Dorothy I. South as an economist in that Division, on a irldefinite basis, with basic salary at the rate of t3,773./.0 1499 1,/21/46 Pe alaraml, effective as of the date upon which she enters upon the Perf°rmance of her duties after having passed the usual physical examination. The memorandum also stated that Miss South was a mem ber of the Civil Service Retirement System and would remain in that sYeter . Approved unanimously. Memorandum dated October 10, 1946, from Mr. Thomas, Director of the Division of Research and Statistics, recommending the appointIret of MiEs A. Regina Hurley as a clerk-stenographer in that Division, °II a temporary indefinite basis, with basic salary at the rate of 394 Per annum, effective as of the date upon which she enters 11P°n the Performmce of her duties after having passed the usual IllYsical ex s a memorandum also stated that she was 14ber of the Civil Service Retirement System and would remain a amination.T ille*er of that system. Approved unanimously. Memo Of the D r°11°Wing randuill dated October 18, 1946, from Mr. Thomas, Director sion of Research and Statistics, recommending that the increases in basic salaries of employees in that Division be aPProved, effective November 3, 1946: Nal/le .1?.illian M. e Ilal**Y RichBlakeards Murphy Designation Clerk-Stenographer Clerk-Typist Clerk-Typist Salary Increase To From 544.hS 394.00 2, 2, 2,544.48 2,394.00 2,394.00 2,243.52 1500 10/21/46 —3— Aporoved unanimously. Telegram to Mr. Grady, Chairman of the Federal Reserve Bank fl Fran, Your reading as follows: letter 17th. Board approves appointment by your i;(3ard of Directors of Mr. C. E. Earhart as President of ireral Reserve Dank of San Francisco effective October 3,1946, for unexpired portion of term beginning March j-946, "Board th also approves payment of salary to Mr. Earhart at the"te of 25,000 for the period October 17, 1946, , r-oligh April 30, 1947, the rate fixed by your directors reported in your letter." Apiwoved unanin,ously. Letter to Mr. Russell J. Darling, Executive Director, Ulehirr 6.41 Association of Small Loan Companies, 1912 Olds To-wer T .LianSirlg 3, Michigan, reading as follows: read with much interest the thoughtful an nlysis letter of August 23 of the viewpoints of those engag opt,,ged in the smallloanbusiness in Michigan as devel20, 't 1;io6th? meeting of your board of directors on August ticula 3 in regard to Regulation W. e appreciate parap r Y Your courtesy in discouraging the political ectjoach to this problem, since it is in the field of fee, l1°thic considerations primarily. ;.e cannot help but 1111(11 however, that the discussion indicates some misande+rhstanding of the purpose and terms of the regulation real uat the Points of vie;, as outlined in your letter come out to the suggestion that the regulation be done away with entirely. Put inY ju way recall that the regulation was originally ° effect pursuant to an Executive Order which Qovec' lor such a regulation in order to assist in the risi raent's Program for fighting inflation and the the c°st of living. This was a purpose that was in otheInterest of the small income families more than any elimls. It seems to us that they would not believe the nati°n of the regulation to be in their interest 1501 10/21/46 -4- "if, as seems perfectly clear, this would in no way increase the supply of goods but, on the other hand, would add to the existing overwhelming demand and consequently exert a further upward pressure upon prices. In these circumstances, they would realize that they were not being served if it were made possible for those who would -Luce to be relieved of this regulation to load them down ,71 1 such goods as are available at higher prices and '"-L(Al increased debt under the lure of apparently easier credit terms. The small income families are the great . 111ai°ritY of the people, as you point out, and the elimIllation of the regulation yvould be a further step in the .ctlirection of raising their cost of living, increasing .heir indebtedness, and lessening their means of enjoying the wider opoortunities wh'ch we hope aill come from greater production in the near future. "As a matter of fact, although the regulation does control the terms of credit, it does not prevent the extension of credit. It does, in the case of purchases, .(14: 1lire a down payment and, in cases subject to the regide,6i°n, there is a specified period of time within ;flich the credit is to be extingu'shed. It does, thereore, leave the door ooen for what should in the present ' ircumstances be reasonable extensions of credit. you ,1 ? s You recognize, the various considerations that cL, Boardt WLnced in your letter have constantly received the me„ 8 consideretion, and it is watching the devedopst'"'s from day to day and from month to month. It is ti"ing the regulation 1,,ith a vie,, to its silvlificathe- 4nd its adaptation to its fundHaentel purposes in re ,light of postwar conditions. VJe believe, from many th; crts that we have received, that the regulation and m`Inner in which it has been administered have been poli ; a ded with considerable favor, even though, as you hote ' °Ilt, there are many ;%ino disagree with it. ;he ciaty t herefore, that all those affected will appreoni e that it is the purpose of the Board to serve tr41 jt,'Ile best interests of all concerned under the ' a i°nary conditions that now prevail." j Aporoved unanimously. 1502 10/21/46 -5— Letter to 11r. Young, President of the Federal Reserve Bank Of Chic0, reading as follows: "Reference is made to your letter of September 27, 191.6 and enclosures, concerning various proposls for rviding additional space at your head office. The .0ard has considered this matter in the light of the tlf°rmation in your letter and enclosures and All inPose no objection to the employment of an architect to o Prepare preliminary plans for en additional four stories to the building. ,. "Beforeany - commitment is entered into for comple2-on of detailed plans and specifications, the prulim12,1arY plans should be submitted to the Board for coneeration. Please advise the Board of the details of th agreement made with the architect. It is assumed anY such agreement provide that the Bank is riot ebli gated to retain the architect for any work beoInd the preparation of such preliminary plans, but beat if he is retained, the payment for such work will taken into account in the final fee." t r L Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank q Chi cago, reading as follows: • .""as refers to your letter of September 25, 1946, _v4lich authority is refiuested to employ an architect to draw plans for expansion of the Detroit talch quarters. pie "The Board will interpose no objection to the emOf an architect to prepare preliminary plans mitman addition to the Detroit Branch building. No com— of -dent, however, should be entered into for preparetion is ! tailed Plans and specifications until legislation tiolelut-2,ined eliminating or modifying the present limitap4alsoVhe cost of branch buildings and the preliminary Pleas Ilre been submitted to the Board for consideration. arch.: advise the Board as to the fee to be paid to the It il ' ect for the preparation of the preliminary plans. wilis , assumed that any agreement made with the architect Provide that the Bank is not obligated to retain 1503 10/21/46 -6"hiM for any work beyond the preparation of such prelimPlans, but that if he is retained, the Dayment for ' uch or will be taken into account in the find1 fee." Approved unanimously. Letter to the Comptroller of the Currency, Treasury Departnlent y . 3 as hington, D. C., reading as follows: "It is resoectfully requested that you piece an °rder with the Bureau of Engraving and Printing, supPl'eenting the order of June 13, 1946, for printing 2: a2,000,000 of Federal heserve notes of the 1934 ries for the Federal Reserve Bank of St. Louis in the $5 denomination." Approved unanimously. Assistat ecretary.
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