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1943 A meeting of the Board of Governors of the Federal Reserve /rEltelt Was held in Washington on Monday, October 5, 1942, at 9:30 a.n. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinktter, referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Ner Ell Reserve System held on October 3, 1942, were approved unanimously. Memorandum dated October 5, 1942, from Kr. Leonard, Director the or -17ision of Personnel Administration, submitting the resignation l'r"'ellek L. Frost as a messenger assigned to Governor Szymczak's of- "d recommending that the resignation be accepted as of the close q t11144 -Ltess on December 20, 1942. The resignation was accepted. Letter to Mr. Clerk, First Vice President of the Federal Re- Ellik of San Francisco, reading as follows: go 'Tour letter of September 25, 1942 referred to the ' ra a letter dated September 17 from The Jewelers' cie 8 1:r-Keystone asking several questions concerning reg44ration under Regulation W of jewelers in your district their compliance with the regulation's provisions. ot It is our understanding that the Federal Reserve Bank to Ilew "!D:tic, which received a similar request, has been in xellch with Mr. Donald S. McNeil, Associate Editor of The 111,41Tlerst Circular-Keystone and has indicated that it wouldbe ctule to give satisfactory answers to any of the questions 1944 10/5/42 -0- : except the first which referred to the number of jewelers icieeistered. Upon considering the matter further, Mr. lNeil agreed that the subject was not suitable for an arele and the project was abandoned. While the number of ! cgistrants was reported to him, he was later told that he was not authorized to publish the figure. "Consequently, it will be unnecessary for you to do anYth' -lng further with respect to the inquiry. Because it 18 possible for articles of this kind to do more harm than ':)°(1) the Board would prefer to give them no encouragement." J Approved unanimously. Letter to Mr. Edward C. Reichart, Vice President of The Scott,4k4ardt C ompanY, Inc., Buffalo, New York, reading as follows: wh "This is in reply to your letter of September 23, 1942 erich We believe refers to Amendment No. 6 of Regulation W, wi! ctive July 27, 1942, copy of which is enclosed. You -LI note that its application is not confined to repairs of 11°Ileas of defense ;;orkers. You ask why this amendment did include an exemption for insulation shingles applied on 'e oUtside of a house. a. "The special exemption provided by Amendment No. 6 aprn ee in general only to materials which are used wholly or 111Y a8 insulation rather than as structural parts. In Ekt aine; not to include such materials as siding and roofing, ttter Eiving due weight to their value in reducing heat loss, ine 80E:rd was influenced by countervailing considerations, IleellIdinE the undesirability of relaxing the restrictions of etial-llEttion Vi over a wider field than necessary for the Lamerli"a Purpose. There seemed, on the whole, to be good techdreel Erounds for drawing the line at the point where it is awn by Amendment No. 6. "As the President stated in his message to Congress on teell 27, the curtailment of consumer credit is one of the tr,,.?e8erY steps to be taken as a part of the program to neure-'ize the forces working toward the advance of prices. The Belation of such credit can be relaxed only when circumit;flee' 61 such as the acute shortage of transportation facil4;4e,8 for fuel, develop an urgent necessity for special treatto'of some particular class of credit and then relaxed only 4,,tIle extent required to meet the particular situation that d eveloped. Elble 'It was decided that on balance, considering all availinformation concerning the technical advantages of wall C 4 1_945 1(3/5/42 -3- and the volume of financing of such applications by 7 the use of credit, the public interest would be best : 811red if credit employed in these applications was released ron' the restrictions of the regulation at this time. A reOn a broad scale, however, as would be necessary if such as siding were qualified for exemption, was thought; to interfere too greatly with the regulation's obJective. i elzi "The administration of Regulation W is decentralized 1, °Ile the twelve Federal Reserve Banks and their twenty-four ;reaches, and you will find it more convenient to direct any B;!ther questions that you may have on this subject to the ,"rrlo ailiffeao,Branch of the Federal Reserve Bank of New York, New 'York." Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks, read8 r°11.0Ws . Reference is made to the Board's circular letter of ne 11 4-, 1942 (Z-744) enclosing certain correspondence betvo„ orTI the Board and the Treasury with respect to the desire mal:he Treasury to use a punch-card check for the purpose of t44-inE disbursements at the Chicago and New York offices of e Tr(lasury's Division of Disbursement. of "After some informal conferences between representatives ea the Treasury, the Board of Governors and the Federal Rea f7e Banks of New York and Chicago, the Treasury has adopted eri n) which has been agreed to by the Federal Reserve Banks cla New York and Chicago, for the exclusive use of punch-card pieeks in the Chicago and New York offices of the Division of pas abursement, and the payment of such card checks through the to eral Reserve Banks of those districts in a manner similar that now followed with respect to Emergency Relief checks. For your information in this connection, there are enel two copies of each of the following letters relating : his matter. It 1,111 be appreciated if you will furnish 04' set of the enclosed letters to Counsel for your bank. Letter from the Under Secretary of the Treasury to the Chairman of the Board dated August 31, 1942, and enclosure; Letter from the Board to the Under Secretary of the Treasury dated September 10, 1942; Letter from the Acting Secretary of the Treasury to the Federal Reserve Bank of New York dated 1946 'D/5/42 -4"September 12, 1942. (It is understood that an identical letter was addressed to the Federal Peserve Bank of CI icaso); Le-Ler from the Federal Reserve Bank of New York to the Under Secretary of the Treasury dated September 21, 1942; Letter from the Federal Reserve Bank of Chice.co to the Acting SecretEry of the Treasury dated Se.2tember 19, 1942." Approved unanimously. Thereupon the meeting adjourned.
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