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1_525 Minutes of actions taken by the Board of Governors of the FedReserve System on Friday, September 17, 1948. PRESENT: Mt. Mt. Mt. Mt. Szymczak, Chairman pro tem. Draper Vardaman Clayton Mt. Sherman, Assistant Secretary Mt. Morrill, Special Adviser Minutes of actions taken by the Board of Governors of the Fed-1Bsatve System on September 16, 1948, were approved unanimously. Telegrams to the Federal Reserve Banks of New York, Philadelphia, Atle414. ' .111 Chicago, and San Francisco, stating that the Board approves thee Btablishment without change by the Federal Reserve Dank of San N11," ' 4-SICID on September 14, by the Federal Reserve Bank of Atlanta on etabel* 15, and by the Federal Reserve Banks of New York, Philadelphia, 414 01,= ''eago on September 16, 1948, of the rates of discount and purc14te ta their existing schedules. Approved unanimously. Letter prepared for the signature of Mr. Vest, General Counsel, k Ge orge T. Washington, Assistant Solicitor General, Department of Btice $ Washington, D. C., reading as follows: a "I have your letter of September 14, 1948, enclosing a aft of an act to amend State securities acts to provide ' 1 the dissemination of information prior to an offering isecurities, together with its interpretative statement. .., 'Both the draft of legislation and the interpretative tement were transmitted to you by the Securities and change Commission for submission to State legislatures 4 Z 526 911748 -2- "through the Council of State Governments, and the Bureau of the Budget has suggested to you that this Board / culd probably be interested. , "The purpose of the proposed legislation is to permit he distribution to the public of information regarding securities prior to the time when such securities are egistered or cualified for sale under the so-called blue sky laws' of the various States, in order that Prospective purchasers and prospective participants in 4 Proposed distribution of such securities may have an cPPortunity to analyze and evaluate the merits of the securities before they are pressed to buy them or to 13articipate in their distribution. The proposed legis?tion would thus help to effectuate the policy of the "ederal Securities Act of 1933. 4, "We appreciate your sending us the draft and statement lor our consideration, and I am glad to advise you that 'he Board has no objection to the proposal and is in symPa.t4r with its purposes." Approved unanimously. Telegram to the Presidents of all Federal Reserve Banks read- 4s folio " ; m "In view of several changes in the schedule for other retings, the Board has set October 7 and 8 as the dates the conference of Reserve Bank people handling Regution W work. You will receive a letter concerning the "genda at a later date." Approved unanimously. Letter to Mr. C. R. Orchard, Director, Bureau of Federal • Unions, Federal Security Agency, Washington, D. C., reading as "The Board's Regulation W relating to Consumer Instalment 9;edit which was issued under the authority of Public Law 5, enacted at the recent special session of Congress, -3:becomes effective September 20, 1948. Copies of the 4egulati0n and of the Board's press release dated AugUst 19, 1948, regarding the Regulation are enclosed. "It seems clear that effective and uniform enforcetient of the Regulation throughout the country is es!ential to accomplish the purposes of the law and in Iltirness to the consuming public and to those subject to the Regulation. "To that end the Board seeks the cooperation of your cTganization in the administration of the Regulation 14‘.1th respect to the institutions under your supervision. Tr. Brown and Mr. Leonard have reported to the Board Zlleir recent discussions with you on this matter, and 'ne Board appreciates your offer of cooperation. "The Board would like to have the cooperation of your . crgnization a along the following lines: 1. Your examiners to take appropriate steps in the examination of institutions under your supervision to promote understanding of, and compliance with, Regulation 1,11 and to determine whether violations of the Regulation exist. 2. If violations by institutions under your supervision are discovered which in the Opinion of representatives of your organization are inadvertent, your representatives to take steps to obtain correction of the violations along the lines which it is contemplated will be taken by the Federal Reserve Banks in similar circumstances under section II-A of the enclosed Outline of Enforcement Program; and 3. If violations by institutions under your supervision are discovered which in the Opinion of representatives of your organization are apparently willful and steps Should be taken to determine whether penalties should be prescribed, your representatives to report the facts in the case to the Federal Reserve Bank of the district in Which the apparently willful violation occurs or to the Board of Governors. 1528 -4"In carrying out the above program, we would like to have representatives of your organization and appropriate representatives at the various Federal Reserve Banks tuaintain close informal contacts in order that the Federal Reserve Bank representatives may be of all possible assistance to your staff in your cooperation with us in thls matter. Needless to say, we contemplate the same Close and informal relations between our staffs here in Washington. 4. "The procedure regarding treatment of violations of le Regulation as stated in the attached Outline of the rtorcement Program, which has been prepared for the 'ederal Reserve Banks, has been cleared with the Departlent of Justice." Approved unanimously, together with similar letters to Honorable William K. Divers, Chairman, Home Loan Bank Board, Washington, D. C. and Honorable I. W. Duggan, Governor, Farm Credit Administration, Department of Agriculture, Washington, D. C. Telegram to Mr. Rouse, Vice President of the Federal Reserve o New York, reading as follows: ,., "Your wire September 16. Board approves further three 'uortth renewal by your Bank of the five Banque de France loans of $10,0002000 each maturing September 22, a t°13er 4, 13, 14, and 20 on the same terms and conditions : aPPlY to the maturing loans with the understanding that f ‘I) Banque de France requests such renewal in each case 411t1 (2) if subsequent developments in the international Situation make resubmission to your Directors desirable nt_'s matter will also be resubmitted to the Board of `luvernors. 00 "It is understood that the usual participation will be 'fsred to the other Federal Reserve Banks." gold Approved unanimously. Telegram to Mr. Rouse, Vice President of the Federal Reserve Of New York, reading as follows: 1_529 9117/48 —5— "Your wire September 16. Board approves three month renewal to December 23, 1948, by your Bank to Bank Polski of the $2,250,000 balance of the $3,000,000 gold loan due September 23, and a three month renewal to January 3, 1949, of the $2,625,000 balance of the $3,500,000 gold loan due October 1, on the same terms and conditions as apply to the maturing loans and on the same understanding, namely, that an,Y further extensions which might be requested of these or /?Y* other loans to Bank Polski would, if granted, be con— gent upon a repayment calculated on the basis of at -Least 25 per cent of the amount outstanding on June 9, 1948 "It is understood that the usual participation will be °Ifered to the other Federal Reserve Banks." Z Approved unanimously. Assistant-Secretary. °ved; APP1'
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