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1517 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, October 24, 1946. PRESDNT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Draper Evans Vardaman Mr. Sherman, Assistant Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The minutes of actions taken by the Board of Governors of the Reserve System on October 23, 1946, were approved unanimously. M emorandum dated October 23, 1946, from Mr. Nelson, Director q the Division of Personnel Administration, recommending that the tollowing increases in basic salaries for employees in the Board lemiclers' Section be approved effective November 3, 1946: 1.1914e Designation F.gbert ie I. Cotten xargaret E. tisie :leather Viestman 444leine E. Benton Secretary Secretary Secretary Secretary Secretary to to to to to Chairman Eccles Mr. Ransom Mr. Draper Mr. Evans Mr. Thurston Salary Increase From To $5,403.60 4,902.00 4,651.20 4,400.40 3,898.80 $5,600.00 5,100.00 4,800.00 4,600.00 4,200.00 Approved unanimously. Letter to Mr. Clark, First Vice President of the Federal rira Bank of Atlanta, reading as follows: fte8e th "The Board of Governors approves the changes in se) , , - Personnel classification plan of the Federal Re— 1' of Atlanta and the Birmingham, Jacksonville, e, and New Orleans Branches, as submitted with 111" letter of October 17, 1946." 1518 "/24/46 -2Approved unanimously. Letter to Mr. Whittemore, President of the Federal Reserve tarik of Boston, reading as follows: "Reference is made to your letter of October 21, lq -46, stating that the Board of Directors has approved, ! ubjeot to the approval of the Board of Governors, a g Yment by the Federal Reserve Bank of Boston of 1357-27 to the Retirement System on behalf of Mr. alter Ed, oky in order to provide certain prior and current service benefits. "The Board approves the payment to the Retirement SYst s4 em as requested. In this connection it is underthat Mr. Eddy will receive no additional contriutl°n at the time of his retirement." Approved unanimously. Of Letter to Mr. Davis, President of the Federal Reserve Bank St. . L°1116, reading as follows: The contpin A Board of Governors has considered the ,_,,uestion In your letter of September 24, 1946, relative 0 ' nting The Plaza Bank of St. Louis the privilege of itilai''P quLt eaining the same reserves against deposits asEre reserveo be maintained by banks outside of central reand reserve cities. In light of the data submitted aId in viev: of the location and size of this bank arrJ w0 , 1 ""e character of business which it transacts, there The41 aPPear no reason for denying ;1. form,1 re,uest 'by Plaza Bank to maintain reduced reserves. manuf In accordance 7th your expressed opinion that the ii wie --acturers Bank Company of St. Louis likeTrust and ducedsh e 'uld be accorded the privilege of maintaining reto ti-v reserves, the Board has given further consideration it wn ease- As you Imow, it had indicated in 1943 that res,""u not be inclined to approve a reduction in re(luired corZies for this bank because of the concentration of h04-rate accounts. Since it appears from :Tour letter, charver, that these accounts are predominantly local in rather than national, also that there is sube Other?cmparability between the busines of this bank institutions for which permission to maintain 1519 10/24/46 -3reduced reserves has been granted, the Board would be in.clined to approve a reduction in required reserves ?,-f formally requested to do so by the Manufacturers smnk and Trust Company." Approved unanimously. Letter to the Honorable Francis J. Myers, United States Senate, lliashington 3 D• C., reading as follows: "We are glad to comment on the letter you have reeived from R. D. Le-i,ando, Vice President, Family Loan .(31'130rati0n of Pennsylvania, who is concerned about the res trictions of Regulation W. In our letter to you dated August 30, 1_946, in with a letter you had received from I. Lehr u ce°1/nection -;risb we '", L commented upon the point of view which Mr. , ewando appears to have. As stated more fully in that -4aetter, we do not feel that Regulation V; discriminates sgeainst people with low incomes. On the contrary, it f_ems to us that there is no group that suffers more iel7T the inflation or deflation against which the regupe, 1°n is directed, and that it would not help these b1124-e in the long run to encourage them to assume heavy , l'qens of debt at a time like the present, when emincomes are at record levels. "The provision of Amendment No. 20, which requires that ex:t the borrower, in order to claim the medical expense therT,!i°11 from the terms of the regulation, must specify -aas" rsons to whom the loan .)roceeds are to be paid, of *necessary in our opinion because of the large growth bor stament loans. e have had no complaints from wers about this provision, and there has been no 1,410811to suppose that it has unduly burdened lenders such exempted loans in good faith. a qar. Lewando's letter is returned as you requested. 1)ortr :enclosing a copy of the Board's latest annual reis s4.."?r Your information. The Board's general position 'aLed briefly on pages 23-25." Approved unanimously. 10'
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