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A meeting of the Board of Governors of the Federal Reserve &Y'stelawas held in Washington on Wednesday, October 24, 1945, at 10:30 PRESENT: Mr. Ransom, Vice Chairman Mr. Szymozak Mr. Draper Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary The action stated with respect to each of the matters herein— after referred to was taken by the Board: Letter to Mr. Wiltse, Vice President of the Federal Reserve Bank of New York, reading as follows: accordance with the request contained in your letter uin of October 19, 1945, the Board approves the ap— Peintment of Randolph V. Daly an examiner for the Federal Reserve Bank of New York, 'he appointments of Paul J. Cox John E. Horbett, Jr. Michael J. McDermott as assistant examiners, and the designation of Frank B. Allen, Jr. John R. Murray Beekman C. Slack as , special assistant examiners. Please advise us of the ,_Aates Upon which the appointments of the examiner and the c'ssistant examiners become effective." Approved unanimously. Letter to Mr. Weigel, Assistant Vice President of the Federal Reserve B of St. Louis, reading as follows: "The Board of Governors approves the change in the 711 10/24/45 —2— personnel classification plan of the Federal Reserve Bank of St. Louis involving the establishment of the posltion of Utility Kitchen Man in the Cafeteria Depart— ment, as submitted with your letter of October 16, 1945.11 Approved unanimously. Letter to the board of directors of the "Charleroi Savings and 'Pm, 4. -4LLSk, Company," Charleroi, Pennsylvania, stating that, subject to 00nditions of membership numbered 1 to 6 contained in the Board's Regulat' 1°n H, the Board approves the bank's application for member— fl the Federal Reserve System and for the appropriate amount of etc)ck in the Federal Reserve Bank of Cleveland. The letter also con— the following special comment: "It appears that the bank possesses certain powers Which not being exercised and which are not neces— ! arlaY required in the conduct of a banking and trust uuslness, such as the power to act as surety in certain : .c cumstances. Attention is invited to the fact that if the bark desires to exercise any powers not actually ex— e 41e time of admission to membership, it will b oF=ses.1under condition of membership numbered 1 to e taln the permission of the Board of Governors before relsing them. In this connection, the Board under— _ ° ".nds that there has been no change in the scope of the (rPorate ) t powers exercised by the bank since the date of 8 application for membership." X l Approved unanimously, together with the following letter to Mr. Gidney, Presi— dent of the Federal Reserve Bank of Cleve— land, reading as follows: tem "The Board of Governors of the Federal Reserve Sys— and aPproves the application of the 'Charleroi Savings ust Company,' Charleroi, Pennsylvania, for member1n the Federal Reserve System, subject to the 10/24/45 —3— II conditions prescribed in the enclosed letter which you are requested to forward to the Board of Directors of the institution. Two copies of such letter are also enclosed, One of which is for your files and the other of which you are requested to forward to the Secretary of Banking for the Commonwealth of Pennsylvania for his information. "It is assumed that you will follow the matter of the ban] --Os bringing into conformity with the provisions of law and the Board's regulations the savings account mentioned on page 16 of the report of examination for membership and will advise the bank of the provision of Regulation Q remember banks to reserve the right to require not liess than 30 days' notice in writing before the withdrawal of savings accounts." Letter to the board of directors of "The American Bank, of Port C linton, Ohio," Port Clinton, Ohio, stating that, subject to e°nditions of membership numbered 1 to 3 contained in the Board's Regulation H, the Board approves the bank's application for member- ship the Federal Reserve System and for the appropriate amount °f stock in the Federal Reserve Bank of Cleveland. Approved unanimously, for transmission through the Federal Reserve Bank of Cleveland. Telegram to Mr. Fletcher, Vice President of the Federal Reserire 'ank of Cleveland, reading as follows: "Retel today. Board extends to December 1, 1945, ci7;,-Te within which The Bank of Leipsic Company, Leipsic, maY accomplish membership." Approved unanimously. Telegram to Mr. Mangels, Vice President of the Federal Reselnre t ank of San Francisco, reading as follows: 4 stxg A f) _La.) 10/24/45 -4- "Relet October 17. Board extends to November 28, 1945, the time within which Barnes Banking Company, Kays— vIlle, Utah, may accomplish membership." Approved unanimously. Letter to "The Bank of Commerce, Wetumka, Oklahoma," Wetumka, Okiahoma, reading as follows: "The Board is glad to learn that you have completed oll arrangements for the admission of your bank to mem,erehip in the Federal Reserve System and takes pleasure ln transmitting herewith a formal certificate of your membership. "It will be appreciated if you will acknowledge re— ceipt of this certificate." r Approved unanimously. Telegram to the Presidents of all the Federal Reserve Banks l'ead g as follows: "The Board has been asked whether under Regulation T a , customer having a general account in which the ad— ' 1,..18ted debit balance exceeds the maximum loan value of rue securities in the account may have delivered to him :am the account a registered security (other than an ex— enlPted security) if he pays the broker an amount of cash 1511a1 to the current market value of the security de— versd. be e "The Board has ruled that such a transaction would b, ,qulvalent to a sale of the security and the receipt uhe broker of the proceeds and that consequent1T the 'ansaction is permitted by the regulation." Approved unanimously. Letter to Congressman Jerry Voorhis reading as follows: 8 to :1This is with reference to your letter of October mr. Hammond, who is temporarily absent, enclosing 1714 10/24/45 -5- II a letter from Mr. Frank J. Gardner, Huntington Park, California, relative to this Board's Regulation T. "The recent changes raised margin requirements from 50 per cent to 75 per cent and prohibited individuals having undermargined accounts from using the proceeds of ?ecurity sales to make new purchases without first bringlng their accounts up to the 75 per cent level. , "In view of the continuing danger of inflation, the .?oard has felt that it would not be properly fulfilling lts re sponsibilities under the Securities Exchange Act of 1943 if it were not fixing margin requirements at the 75 per cent figure. Nor has it felt that an individual Who had a margin position at the time the changes were made Should be able to continue trading on better terms 'itlan are available on new transactions to an individual Who did not have such a position. "Thank you for giving us the opportunity to comment O uL Gardner's letter, which we are returning to you he rewith." Approved unanimously. Thereupon the meeting adjourned. vr Secret ry. APPr tip /^ Vice Chairman.
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