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1181 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Viashington on Saturday, September 13, 1941, at 11:30 PRESENT: Mr. Ransom, Vice Chairman Mr. Szymczak Mr. Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary The action stated with respect to each of the matters hereinetter referred to was taken by the Board: Letter to Mr. Young, President of the Federal Reserve Bank Of Chicago, reading as follows: "In accordance with the request contained in your letter f of September 10, the Board approves the designation Vice of the President Mulroney as the officer to have charge Bank Examination Department, and his appointment s an examiner for the Reserve Bank." Approved unanimously. Letter to Mr. Chase, Presid ent of the Maine Securities Company, Portiand, Maine, reading as follows: "This refers to your letter of August 21, 1941, re: ning the rirht of a bank which is a member of the FedReserve System to lend securities owned by it. In th_717 °I the reference in your letter to the fact that . matter had been taken up with the Federal Reserve th„of Boston by a member bank, we have made inquiry of to e Bank concerning the matter before replying 0 Yo you. Ipres "The Federal Reserve Bank advises that an inquiry, phonullablY the one in question, was recently made by teleof by a State member bank but that the exact detail s Thethe R arrangenent had not been worked out at the time. es rve Bank's comment was of a general character and r 1182 9/13/41 II not intended either as approval of the proposed transor as advice that the loan of stock would in itself be contrary to any provisions of law or regulations. Doubt was expressed, however, as to the desirability of ispuch a transaction from the point of view of the member ank, and in this connection the possibility was mentioned ?f the member bank's finding later that the transaction had been in effect a sale of the stock. Of course, if transaction should be such as to constitute a sale, the member bank could not thereafter reacquire the stock In view of the provisions of section 9 of the Federal Re'V Act and section 5136, United States Revised Statutes, ,!Ilch prevent the purchase of stock by member banks of ',Ile Federal Reserve System. , i "1:e trust that this explanation of the matter will Iblje you the information which you desire, but if it is ma 'clear to you or to the member bank in question, you BaY wish to contaunicate further with the Federal Reserve ilk of Boston on the subject." Approved unanimously. Tels'a 6FCLM to the Presidents of all of the Federal Reserve Banks g as follows: ."Reg. The classification 'plumbing fixtures -bued for household use' does not include water meters." Approved unanimously. r'e ct isn, g Tel egran to the Presidents of all of the Federal Reserve Banks 8 follows: (1110„:1Reg. T-60. The Board has received the following -t,Lon relatim -, to Regulation W: "A Purchaser Paymen buying a listed article makes a dortion t in excess of the amount required by the regu a MaY he be permitted later, in purchasing a second the article, to apply any part of the down-payment on chaaell ' st article as the required down-payment on the ourof the second article? 'Re is not permitted to do so." Approved unanimously. 1_183 9/13/41 Telegram to the Presidents of all of the Federal Reserve Banks ---ug as follows: "Reg. V:-61. An inquiry which may be stated as follows has been received under Regulation lc: The X Electric Company purchases substantial numbers of automobiles for cash and sells them to its salesmen on a monthly payment plan, with payments spread over 12 to 18 months. The X Electric Company does not make such sales to anyone except its salesmen. Is the X Electric Company- 'engaged in the business' as described in section 3(a)? Must these extensions of credit comply with the down-payment and other requirements of the regulation? "Both parts of the question should be answered in the aff irmative." Approved unanimously. Telegram to Mr. Hodge, Assistant Counsel of the Federal Reserve 441t of c hicago, regarding suggested amendment to Regulation W to apply ti5 the f. Inanoing of used cars, and reading as follows: our wire September 10 re Vv-16-24-37. Board agrees with 'Your opinion that practic under e (1) your wire is not in°1ation in circumstances described in your wire. Assum14 that practice under (2) your wire involves arrangements eta': Particular finance companies or banks which your wire y.o 'es are not present in (1). Board also agrees with 0,' 1 nion that such practice under (2) is violation. clideration is being given to possible amendments to v1-1- wlth such situations." Approved unanimously. Thereupon the meeting adjourned. Secr tary. V edirrie 4.4114AW Vice Chairman.
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