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A meeting of the Board of Governors of the Federal Reserve Sys— telawas held in Washington on Saturday, October 24, 1942, at 11:00 a.m. PRESENT: Ur. Eccles, Chairman Mr. McKee Mr. Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter Nierreq to was taken by the Board: Letter to Mr. J. Raymond Tiffany, General Counsel of the Book Manta. acturers/ Institute, Inc., New York, New York, reading as follows: "In your letter of October 20, 1942, you ask about the effect of the Board's Regulation W on the purchases of books in charge accounts. "You will have noted that the scheme of control for charge accounts is that a retailer may not sell a listed article to a. customer whose charge account is in default. In determining .!,11e default status of an account, however, charges for all ar— tIcles are taken into consideration and this would include Charges for books. Consequently, if the customer has not paid for his book purchases by the 10th day of the second calendar following the month of purchase, the account is deemed to be in ") default and he cannot buy any listed article. . "As you have noted, books are not included in the list of art1CieS mentioned in the regulation. This has the effect of Permitting a customer to buy books in his charge account even lf it is in default." Approved unanimously. Memorandum dated October 23, 1942, from Mr. Wingfield, Assistant al Attorney, recommending that there be published in the November iskle of the Federal Reserve Bulletin statements in the form attached to 2059 /3/24/42 2- the m -emorandum with respect to the following subjects: Consumer Credit Amendment to Regulation W Interpretation of RegulationW Rediscounts Eligibility of Notes Evidencing Guaranteed Loans Emergency Price Control Economic Stabilization Board Federal Reserve Bank Stock Tax on Dividends Approved unanimously. Thereupon the meeting adjourned. •
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