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it A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Friday, September 19, 1941, at 11:30 PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereintter r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the kousiy. Of ilosi Reserve System held on September 18, 1941, were approved unani- T elegrams to Mr. Young, President of the Federal Reserve Bank '°n, Messrs. Sanford and Post, Secretaries of the Federal Re%,ve t anks Of New York and Philadelphia, respectively, Mr. Bowman, k3si.ste nt Vice President of the Federal Reserve Bank of Atlanta, and Dillard and Hale 04 Secretaries of the Federal Reserve Banks of and San Francisco, respectively, stating that the Board apot e es tablishment without change by the Federal Reserve Bank °an runcisco on September 16, by the Federal Reserve Banks of New l'Ythe l'atea Atlanta, Chicago, and San Francisco on September 18, 1%1, and Federal Reserve Banks of Boston and Philadelphia today, of the Of di scount and purchase in their existing schedules. Approved unanimously. 238 9113 / 4 1 -2Memorandum dated September 18, 1941, from Mr. Nelson, Assist- ant Secretary, recommending (1) that the resignation submitted by Mrs. Villahia T. Carnduff, a stenographer in the Secretary's Office, be accepted as of the close of business on September 10, 1941, and (2) that lass Esther Severud be appointed as a stenographer in the Secretal7'8(Iffice, with salary at the rate of .:_kl,560 per annum, effective 4 0f the date Upon which she enters upon the performance of her duties atter having passed satisfactorily the usual physical examination. Approved unanimously. Letter to Mr. Hitt, First Vice President of the Federal Reaerlre 14311k of St. Louis, reading as follows: ,_ "The Board of Governors approves the changes in the Z s te el d classification plan of your Memphis Branch as in your letter of September 15, 1941." q Approved unanimously. Telegram to the Presidents of all of the Federal Reserve Banks 411ag as follows: ca."Reg. W-72. Inquiries have been received regarding in which the original instalment purchaser of an of "bile or other listed article arranges the transfer en,Iii178 equity to another purchaser, the transfer of the 11' 01t:IV being arranged directly between the parties and Y orthrough any dealer or other Registrant, and the to 1,--6-Letrant holding the obligation is in effect asked ognize or approve the transfer. Of ti„ The Board is of the opinion that such a transfer ori,::! automobile or other listed article subject to the ittid'ual debt and lien may be made without restriction is er the regulation provided the original purchaser (who not a Registrant) remains liable on the contract and % 471k t 9/19/4i —3— "there is no change in the contract except the addition of the signature of the new purchaser. "However, if the original purchaser is released from nie obligation under the contract, or if the terms of the contract are altered except by including the subsequent Purchaser, or if a new contract is entered into between the Registrant and the subsequent purchaser, the same rewould apply as if the Registrant were making an ordinary instalment sale of the listed article. In such event, if the listed article involved was, for exmPle, an automobile and the subsequent purchaser agreed PaY 4'600 for the automobile, the Registrant could not extend credit to him in excess of 6400. "It may be noted, of course, that under section 8(a) ° the regulation the requirements stated in the preceding i Paragraph would not apply to action taken by the Registrant 1311 good faith (1) with respect to any obligation of a memter of the armed forces of the United States incurred prior t0 his induction into the service, or (2) for the Regiswil;nt's own protection in connection with any obligation lon is D5 and the subject of bona fide collect'iCh effort by the e Registrant." Z Approved unanimously. Telegram to the Presidents of all of the Federal Reserve Banks '"gazip, loo "Reg W-73. With reference to classification 'cookand ranges with less than seven heating surhes a warmer drawer in electric ranges is not considered e eating surface." Approved unanimously. Tel " to the Presidents of all of the Federal Reserve Banks llows: 'seasonal goods' "Reg' n the W-74. Refrigerators are not meaning of section i,(d) or Approved unanimously. 949/41 -4Telegram to the Presidents of all of the Federal Reserve Banks ' l eading as follows : . "Reg. w-75. Taxes and fees payable as prerequisite to obtaining license plates in name of purchaser of. automobile or motorcycle may be included in purchase rce of automobile or motorcycle under section 4(f) 2) and under Parts 2, 3(a), and 3(b) of Supplement." Approved unanimously. Memorandum dated September 19, 1941, from Mr. Parry, Chief Of the n. Lavision of Security Loans, submitting pursuant to the action 'fl at the meeting of the Board on September 17, 1941, a draft of a4liellclillent Number 1 to Part 3(a) of the Supplement to Regulation WI ec)rialuler Credit, and recommending that it be adopted to become effectiHre irarl iediately. q.eared by telephone with representatives of the Office of Price Ad- L'rlistrat ion that no The memorandum stated that the amendment had been Federal Loan Agency, and the Treasury Department, and suggestions had been made by the "trade" except a minor sug- geetion detail submitted by the Chrysler Corporation which seemed the staff to be unacceptable. The following resolution was adopted by unanimous vote: Resolved that, effective September 20, 1941, Part 3(a) of the Supplement to Regulation W be amended to read as follows: 1241 9/19/4i -5- "(a) The maximum credit value of a new automobile shall be 66 2/3 per cent of the bona fide cash purchase Price of the automobile and accessories includingany sales taxes thereon and any bona fide delivery charges) 1?ut such maximum credit value shall in no event exceed 1°6 2/3 per cent of the sum of the following items: (1) The manufacturer's retail quotation at factory, or the equivalent of such quotation. (For the purposes of this regulation, this means the retail delivered price of the automobile With standard equipment at the factory, as advertised, or as suggested or recommended to dealers, by the manufacturer; or, in the case of a 1942 model for which such a price has not been so advertised or suggested or recommended, it means the price last so advertised or suggested or recommended for the corresponding 1941 model, increased or decreased by the percentage by which the manufacturer's Wholesale price of the 1942 model is increased or decreased from the manufacturer's wholesale Price of such 1941 model.) (2) Transportation charges from factory to point of delivery as suggested or recommended by the manufacturer for inclusion in *!,he retail delivered price at that point, or ln the absence of any such suggestion or recommendation then an amount substantially equal to the freight by rail from factory to that Point; (3) Any Federal, State, or local taxes not included in the foregoing ; and (4) Any bona fide charges for delivery or accessories not included in the foregoing "In case the automobile is sold for delivery at the ?, by a dealer in a given place to a resident of Place or its vicinity who actually intends to bring a.;.; automobile to such place or vicinity and use it there, pla °Unt equal to the freight from the factory to such ce may be included." fact 1242 Thereupon the meeting adjourned. Secretary.
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