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1_387 A meeting of the Board of Governors of the Federal Reserve 8PateM was held in Washington on Tuesday, September 21, 1943, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman McKee Draper Evans 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 herein— "ter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the 41 ' 41 Reserve System held on September 20, 1943, were approved unani4544z. The minutes of the meeting of the Board of Governors of the 441'al Reserve System with the Federal Advisory Council held on Sep2O 1943, were approved unanimously. Letter to Mr. Meyer, Assistant Cashier of the Federal Reserve 4111t of Chicago, reading as follows: "The Board of Governors approves the changes in !he personnel classification plan of the Federal Reserve ,Ilk of Chicago involving the establishment of the posi— ?ns of Adjuster in the Check Department and Senior ...:!-erk in the Consumer Credit Department, as submitted 41th your letter of September 15, 1943." Z Approved unanimously. Letter to Mr. Williams, President of the Federal Reserve Bank adelphia, reading as follows: 1388 9/21/43 —2— "This refers to your letter of August 24, 1943) and Mr. Hilkert's letter of September 10 with regard to the desire of your bank to change the method of paying overtime to employees who are subject to the Fair Labor Standards Act from a variable or fluctuating work week Plan to a straight time and a half basis. "We have taken this matter up informally with repre— sentatives of the National War Labor Board and have been advised that a change in the method of paying overtime to the employees of your bank who are subject to the Fair .I.,,abor Standards Act would not be objected to by the War iliabor Board provided such change would not have the ef— rect of materially increasing the salary of the employees ?noerned. In presenting the matter formally to the Na— onal War Labor Board, the certification procedure estab-lashed under General Order No. 19 should be used and the certificate should contain a full and complete statement ?f all the pertinent facts, such as the number of employees involved; the regular office hours now prevailing; the ,1111ber of hours of overtime usually worked by such em— 41 Prees; salary ranges of such employees; and the amount 'compensation they receive under the variable or fluc11!ing work week plan and the amount of compensation they "°Llid receive under the proposed straight time and a half Trertime plan. If it is contended that employees of your bank who work overtime under the variable or fluctuating l.(Irk week plan are at a disadvantage with employees of the 11 ' aarger Philadelphia banks referred to in your letter who sre on a straight time and a half basis, a comparison of c„!larY rates, regular hours worked and overtime worked ould be set forth in the certificate. . "Representatives of the National War Labor Board ex— Atalned to us that such Board could not categorically ap— P!'°ve a change from a variable or fluctuating work week arn to a straight time and a half plan without knowing P the facts in the matter and being able to determine cactly what effect such change would have upon the weekly Monthly salary of the employees involved. Under the ex— Executive Orders and regulations relating to salary f abllization, increases in the salaries of employees so 0:!: as Federal Reserve Banks are concerned may be made a"-LY.ln the manner provided to correct gross inequities nd if the effect of a changeover from the method of 2 Z 1389 9/21/43 —3— 'Paying overtime goes beyond the correction of gross inequities objection would be made by the National War Labor Board. "We will be glad to cooperate with your bank as fully as possible in any endeavor to accomplish the purpose stated in your letters referred to above." Approved unanimously. Letter to the board of directors of the "Florida Bank at Orle,ndott) Orlando, Florida, stating that, subject to conditions of member8114 numbered 1 to 3 contained in the Board's Regulation H, the Board Pproves the bank's application for membership in the Federal Reserve aYstem and for the appropriate amount of stock in the Federal Reserve f Atlanta. Approved unanimously, together with a letter to Mr. McLarin, President of the Federal Reserve Bank of Atlanta, reading as follows: "The Board of Governors of the Federal Reserve Syste approves the application of the 'Florida Bank at Or1 ;,ando', Orlando, Florida, for membership in the Federal ”serve System, subject to the conditions prescribed in Trhe enclosed letter which you are requested to forward o the Board of Directors of the institution. Two copies Of such letter are also enclosed, one of which is for .Y,..°ur files and the other of which you are requested to '-,.orward to the State Comptroller for the State of Florida, -Lor his information. "It is assumed that you will follow the matter of the bank's bringing into conformity with the provisions of law and the Board's regulations the savings accounts listed on Page 16 (1) of the report of examination for membership." Letter to "The First National Bank of Bismarck", Bismarck, North reading as follows: 1390 9121/43 "This refers to the resolution adopted on April 20, 1943, by the board of directors of your bank, signifying the bank's desire to surrender its right to exercise fiduciary powers heretofore granted to it. "The Board, understanding that your bank has never accepted or undertaken the exercise of any trust, has nas issued a formal certificate to your bank certifying that it is no longer authorized to exercise any of the fiduciary powers covered by the provisions of section 11(k) of the Federal Reserve Act, as amended. This certificate iS enclosed herewith. "In this connection, your attention is calJed to the fact that, under the provisions of section 11(k) of the Federal Reserve Act, as amended, when such a certificate has been issued by the Board of Governors of the Federal Reserve System to a national bank, such bank (1) shall no 1011ger be subject to the provisions of section 11(k) of : the Federal Reserve Act or the regulations of the Board of Governors of the Federal Reserve System made pursuant thereto, (2) shall be entitled to have returned to it any securities which it may have deposited with the State or imilar authorities for the protection of private or court ! and (3) shall not exercise any of the powers conferred by section 11(k) of the Federal Reserve Act, except rith the permission of the Board of Governors of the Federal Reserve System." Approved unanimously. Letter to "The First National Bank of Chatfield", Chatfield, esc)ta, reading as follows: "This refers to the resolution adopted on June 8, 1943, by the board of directors of your bank, signifying tlie bank's desire to surrender its right to exercise fiduary Cl powers heretofore granted to it. "The Board, understanding that your bank has never etually accepted or undertaken the exercise of any trust, issued a formal certificate to your bank certifying it is no longer authorized to exercise any of the 1 115-ary powers covered by the provisions of section l'tkk) of the Federal Reserve Act, as amended. This cer'ilficate is enclosed herewith. t 1391 9/21/43 -5"In this connection, your attention is called to the fact that, under the provisions of section 11(k) of the Federal Reserve Act, as amended, when such a certificate has been issued by the Board of Governors of the Federal Reserve System to a national bank, such bank (1) Shall no longer be subject to the provisions of section ; : I1(k) of the Federal Reserve Act or the regulations of the Board of Governors of the Federal Reserve System ade pursuant thereto, (2) shall be entitled to have returned to it any securities which it may have deposited With the State or similar authorities for the protection of Private or court trusts, and (3) shall not exercise any of the powers conferred by section 11(k) of the Federal Reserve Act, except with the permission of the Board of Governors of the Federal Reserve System." T Approved unanimously. Telegram to Mr. Stroud, First Vice President of the Federal Re- serve Bank of Dallas, reading as follows: "Referring our September 18 wire in reply your Septe w,111-er 16 wire, and Mr. Smead's telephone conversation .1,111 You, please disregard our answer to second question pe-Lating to extension of unguaranteed credit to borrower :Working capital after financing institution has ob' 4.°1 lned guarantee through Federal ReServe Bank. Will adYou later regarding this question." Approved unanimously. Telegram to the Presidents of the Federal Reserve Banks, reading 43 follows: A._ "Consideration is being given to a draft of proposed radment No. 11 to Regulation V. to deal Iiith several tTala technical points affecting instalment vendors. The ' 13 " 4 of the draft is given below. The Federal Reserve trks are requested to make comments and suggestions on e Proposed changes, and it would be appreciated if these (ere telegraphed to the Board by Monday, September 27. It ! f not intended that the changes be submitted to the trade 'r comment, but you are at liberty to consult anyone in 1.392 9/21/43 -6- "the trade for the purpose of developing your own comment. Neither the draft language nor the substance is authorized for publication. ProDosed AmenAmeat No. 11 to Regulation "Regulation W is hereby amended in the following respects, effective • ,f "1. By adding to section 4(d) entitled 'Statement 2 4411aag.tigla' the following sentence: 'he Statement of Transaction need not include a descripticn of the article if it is purchased by means of a coupon uock or similar medium of instalment credit upon which a cash down payment of at least one-third of its purchase value has been made. "2. By adding to section 12 the following new subsections (n) and (o): etc. _ "(n) State Sales Taxes, Parcel Post,Charges, or Purposes of calculating the down payment required by section 4(a) on an instalment sale of any listed article Other than an automobile and for purposes of determining whether or not a Statement of Transaction is required by !ection 4(d), the Registrant may, at his option, exclude 0111 the cash price of the article, as defined in section ' ), 4' 0 (1) any State sales tax or (2) any parcel post, express/ or freight charge paid by the seller for delivery of the article to the purchaser. "(o) MAii Orders. - An instalment sale shall not be deemed to be in violation of section 4(a) if the sale is ac l le upon the receipt of a mail order for one or more art;cle3 and the cash deposit received with the order fails ,- less than It1.00 to equal the sum of the down payments -.?quired by this regulation for all of the articles inc4-uded in the order." T Approved unanimously. Telegram to the Presidents of the Federal Reserve Banks, read141 follows: "You may advise State banking departments, for their -Liciential information, that Board contemplates making 8 1' D fall call for condition reports upon State member banks, n" such call will not request figures until some date in alc,tober. Understand Comptroller's Office has similarly "ised them as to national banks." COW". Approved unanimously. 9/21/43 Thereupon the meeting adjourned. Vice Chairman.
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