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1359 A meeting of the Board of Governors of the Federal Reserve ahtela ,_ "us held in Washington on Tuesday, September 12, 1944, at 11:30 PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Draper Evans Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Leonard, Director of the Division of Personnel Administration After an informal discussion of proposed changes in the offi— staff of the Federal Reserve Bank of Dnllas incident to the res— laiation as of September 30, 1944, of Mr. Stroud as First Vice President, Chai 1111st Eccles referred to the discussions at meetings with the Federal it4i1Y Council and its executive committee since the meeting on January 531944, with respect to the request of the Council for copies of the campany bill prepared by the Board. 441etaalt Ikch tioz3 the He stated that Mr. Vest, General Attorney, had prepared an opinion on the matter in Position was taken that the Board was not required to dis— e to th eCouncil drafts of proposed legislation to which the Board : tht be giving consideration, as such drafts were not information 414 the me 'rig of section 12 of the Federal Reserve Act and, there— tce' Were not required to be furnished to the Council upon its request. 1360 9444 -2Chat , ' 41 Eccles also said that he had requested Mr. Vest to prepare "telll°ralichlin on the subject which might be read at the next meeting Or the Federal Advisory Council and that such a memorandum had been 151'ePal ' ed blY Mr. Vest under date of September 11, 1944. The memorandum was read and discussed. It was agreed that it should be revised and divided along the lines suggested during the discussion, i.e., into a legal opinion and into a conclusion of the Board based on the legal opinion and that both should be submitted to the Board for consideration when so redrafted, with the view of enabling the Chairman to make a statement either of his own views or the views of the Board, provided the Board agrees, at the meeting with the Federal Advisory Council on September 18, 1944. At this point Messrs. Thurston and Leonard withdrew from the The action stated with respect to each of the matters herein44e'.r'referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Reserve System held on September 11, 1944, were approved unani1401,1b1 Uemorandum from Mr. Morrill recomending that the temporary Otp. of Mrs. Grace Thorne as a charwoman in the Secretary's be extended for an indefinite period, effective at the expira4.04 or 40 her present temporary appointment on September 18, 1944, with ch azir,P 4-11 her present basic salary at the rate of $1,200 per annum. Approved unanimously. 1361_ —3— Letter to Mr. McRae, Chief Examiner of the Federal Reserve Bank of Boston, reading as follows: Your letter of August 14, 1944, relative to the ;placation of Regulation T to certain activities of F. S. eeleY & Company of Boston, Massachusetts, you called ata ion to a request of Mr. Harry C. Robbins of that firm 41 expressed in his letter to you dated August 8, 1944, d4at representatives of the firm come to Washington to '‘'LeetIss the matter with us. 4.„ "After studying the information we have recently obi rled and examining the legal aspects of the matter someh further, we believe that such a visit would prove 44-Pfill and would make it possible to clear up the difatY and at the same time to fulfill the Board's re41181-bilities under the Securities Exchange Act. ' 814 "Accordingly, we should appreciate your arranging vecli a visit at such time as would suit the firm's conPlease inform the firm that we should like to ije their assistance in analyzing this type of business 4:601ts elements -- on the tentative assumption that 1101 , 4 of these presumably are, while others presumably are do ' , within the prohibition of 'arranging' that is laid bY the Securities Exchange Act of 1934." j Approved unanimously. Letter to the Presidents of all the Federal Reserve Banks readthe a3 r ollows: "In connection with the execution of guarantees under auTLItive Order No. 9112, there are enclosed herewith photo. r,'e of letters to all Federal Reserve Banks from the War Oe' 1944 merit and Navy Department, both dated September 11, aig? Prescribing the use of a revised form of guarantee kel, ement, identified as '194/1 V-Loan Guarantee Agreement' thafuearing the date of September 15, 1944. It is expected coth,La similar letter will be received from the Maritime -"-Lesion in a few days. 1362 -4"There is also enclosed a duly authenticated copy of sh Ti --944 V ,ee -Loan Guarantee Agreement bearing the date of ptember 15, 1944, together with Explanatory Notes of l'he same date regarding the use of such form, as enclosed 73:11. identical language with the letters from the War and "allY Departments referred to above. "As indicated in the Board's letter of September 6, /44 (S-782), transmitting documents relating to the inNumtion of the T-Loan program under the Contract Settleent Act of 1944, the schedule of guarantee and commitment aese and maximum rate of interest prescribed in that letter ere aPPlicable to guarantees of V and VT loans under Exvelltive Order 9112, executed on the enclosed form of 1944 beL°ari Guarantee Agreement; and such fees and rates will effective as to such guarantees beginning September T 1914 me "A supply of the printed 1944 V-Loan Guarantee Agree.70rIt and accompanying Explanatory Notes will be sent to Ur Bank in a few days. The Board wishes to take this opportunity to express aPpreciation and that of the War and Navy Departments and the and ,.... Maritime Commission for the helpful suggestions -umments which were received from the Federal Reserve ;"' in connection with the drafting of the T-Loan Guarantee -Lioan Agreements and of the 1944 V-Loan Guarantee Agree-Lent,it Approved unanimously, together with the following letter to the Comptroller of the Currency: ado :The War Department and the Navy Department have c02'ed a revised form of Guarantee Agreement for use in unrotion with the guaranteeing of war production loans thee- Executive Order No. 9112; and it is expected that 4B1, i revised form will also be adopted by the United States revitiJ.me Commission in the near future. A copy of the sed form of agreement, identified as '1944 V-Loan 157iantee Agreement' and bearing the date of September piarie.944, is enclosed herewith, together with certain Exu 17 Notes bearing the same date regarding the use the revised form. to no 1300 -5"It 11111 be appreciated if you will advise the Board ther, in your opinion, the form of 1944 V-Loan Guarantee _Peement, dated as of September 15, 1944, in the form en.Losed herewith, complies with the definition of the term _tpoonditional' as used in Exception 10 to section 5200 ui the Revised Statutes, which was issued by you on June '1942.1? 18 r Voucher submitted by Mr. Szymczak, in accordance with a letter swes ed to him on July 29, 1944, by Chairman Eccles, in the amount of t330 sence °vering per diem in lieu of subsistence during Mr. Szymczak's ab°11 a trip to London, to which reference was made at the meetings or Board on June 20 and June 30, 1944. The payment of the voucher was approved unanimously. Telegram to Mr. Knoke, Vice President of the Federal Reserve York, reading as follows: 12 :In compliance request contained your wire September se '40card consents to your Bank negotiating with reprei3L itetives of Netherlands Government or De Nederlandsche ej,11 as to terms and conditions of your custody of gold leral to proposed loan by commercial banks to NetherGovernment which is to be held by your Bank for acec b of Chase National Bank as manager of syndicate of -"Lercial banks participating in the loan." Approved unanimously. Thereupon the meeting adjourned. (J30aLtiA )11)-4;/•-(:/2 Secret y. kIttio -/ Chairman.
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