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Minutes of actions taken by the Board of Governors of the Nev , Reserve System on Friday, September 22, 1950. PRESENT: Mr. Evans, Chairman pro tem. Mr. Norton Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Tel egrams to the Federal Reserve Banks of Boston, New York, , Atlanta stating by Chicago, Kansas City, and San Francisco that the Board approves the establishment without change the Federal Reserv e Bank of Kansas City on September 15, by the ?ederal Reserve Bank of San Francisco on September 19, by the Federal Reserve Bank of Atlanta on September 20, by the Federal Reserve knits of New York, Philadelphia, and Chicago on September 21, 1950, alld by the Federal Reserve Bank of Boston today, of the rates of ctiscolint and purchase in their existing schedules Approved unanimously. MencTandum dated September 13, 1950, from Mr. Dembitz, 113e18tant Director of the of International Finance, recDivision c)11141erk114 an i ncrease in the basic salary of Ernest C. Olson, an 4oraist in that tilt° october 1, Division, from 00 to $5,800 per annum, effec1950. $5,4 Approved unanimously. Uemor bire„0 andum dated September 15, 1950, from Mr. Leonard, 4., -- Div30 of Bank Operations, recommending that the ndefinite appointment of Mrs. Alice C. Immler, a sta- 3E; 9/22/50 -2tistical clerk in that Division, be extended on a permanent basis, etreOsiNe October 1, 1950, with an increase in salary from $2,650 t°$2 71n ' ,v per annum, also effective October 1, 1950. Approved unanimously. tor Memorandum dated September 20, 1950, from Mr. Young, Direc- "he Division of Research and Statistics, recommending that t4le resi --gnation of George H. Cleaver, an economist in that Division, be accepted to be effective, in accordance with his request, at the "bilsiness September 22, 1950. Approved unanimously. Memorandum dated September 21, 1950, from Mr. Bethea, Dil'etc)r °I' the Division of Administrative Services, recommending the aPPolartruent of Mrs. Alice King Watt as a stenographer in that lialorx, with basic salary at the rate of $2,875 per annum, effectitiN as Of the date upon which she enters upon the performance of 11 " • cilltIes after having passed the usual physical examination, "bject to a sat isfactory investigation of Mrs. Watt's references. Approved unanimously. Lettc, -r to IR114 Willett, First Vice President of the Federal 4:ve Bank of Boston, reading as follows: 14117:In ac cordance with the request contained Board of W' llr letter of September 14, 1950, the t?rs approves the payment of salaries to the kte° employees at the rates indicated, which maxi.. are in excess of the prescribed salary q 9/22/50 -3n mums for the grades in which their positions are currently classified: Name Annual Salary Anne Settipani $ 2520 Dorothie F. Crittenden 2340 Lillian M. Perrier 2400 Virginia A. Canney 2520 Thomas L. O'Brien 3000 Vincent T. McNally 11 Boar, n a letter to you dated August 28, 1 V,the c cr Governors stated that whenever necessary under the ! for 3°3 evaluation plan an employee could be assigned, havia Period not exceeding six months, to a position wilci".La maximum lower than the salary he was receiving It .`'114 obtaining the specific approval of the Board. tiols noted that all but one of the employees menYourt letter of September 14, 1950, have been izoilt;',"'ng an above-maximum salary for more than six Itto:T and it is hoped that in the future these cases scribue called to the Board's attention in the preperiod of six months." Approved unanimously. flkikormTelegram to Mr. Knoke, Vice President of the Federal Reserve " 14 York, reading as follows: ,1,.,alltiYour wire September 21. Board approves the of loan or loans by your Bank to the Banco the al de de Venezuela not to exceed $20,000,000 in :ate at kA) 'ing terms any one time outstanding on the uuch loan and conditions: or loans to be made up to 98 per cent of the value of the gold bars held in (8) eour vaults as collateral; -ach loan to bear interest from the date uch loan is made until paid at the dissCOt , rate of your Bank in effect on the (0) EL:7 on which the first loan is made; 71, 1—" such loan to mature not later than ,Jeee " 4mber 31, 1950, 11111 It t8 u nderstood that the usual participation Banks.. °Ifered to the other Federal Reserve Approved unanimously. (J8 9/22/so —4— Letter to Mr. Leach, President of the Federal Reserve Bank or Richmond, reading as follows: t "Enclosed is a draft of a proposed cable 00 1, Ur. John Exter, Governor of the Central Bank CeYlon., Colombo, Ceylon, indicating that your Ba,,,. with the approval of the Board of Governors, the".8 agreed to the loan of Mr. G. Harold Snead to ee Central Bank of Ceylon for a period not to ex' ec °Ile year plus travel time. 4--ndicated in the cable, we are suggesting tha as!"le financial arrangements be on the same basis marvided for Mr. Exter when his services were The :available to the Ceylonese Government in 1.948. t e arr 1,4 were set forth in the Boards i e ter toangements r. Exter of November 30, 1948, as fol-Lows: f,ntivl:ew of the length of your stay high cost of living in Ceylon, t a.nd he Board hag authorized an allowance able to you monthly at the rate of .35000 a year, transportation from Wash0 Ceylon and return for you and : ' I 1r family by air or sea, including aper i4-e111 while in travel status corresponding t° , that allowed in the Foreign Service of :vile united States and flight insurance for ev °11Q xhrself5 and the sum of $1,000 for special ' rises Such as clothing, equipment, lugcage, C, These expenses above your sala Crou ,will be reimbursed to the Board by the ' ernraent of Ceylon. 1!In addition, the Government of Ceylon, °f Payment by the Board of a guartertheri_c " 1 "ance 5 etc., to be reimbursed by arld- '-,ov ernment of Ceylon, will provide you il ey suitable living quarters nane d mYaiatfeam 0 thereof, including servants and reas, 1°°a1 incidental services including fell, —rlable use of an automobile and chaufma i* It is assumed that the Government ret, Pr°vide you suitable offices, a secerY5 and other necessary working faci1yoallrinducltuies dinegt transportation if required r 9/22/50 -5"In shodSnead,' applying the two paragraphs above to Mr. case, the Federal Reserve Bank of Richmond of course be substituted wherever the Board : 1 4 mentioned and the Central Bank of Ceylon should ue su bstituted for the Government of Ceylon. and "If these arrangements are agreeable to you if Your Bank's directors, it would be appreciated or,You would let us know as soon as possible in u `ter 44.r. that we may dispatch the attached cable to Approved, Mr. Vardaman voting "no". Ileserve Letter to Mr. Stetzelberger, Vice President of the Federal bank of Cleveland, reading as follows: 12 1::Reference is made to your letter of September Sav3.: , 75°5 submitting the request of 'The Sylvania Bank Company', Sylvania, Ohio, for permikno-w,-,to establish a branch (de novo) in a community : I as the Village of Trilby, Washington Township, LIA ; e--t?-?untY, Ohio. Of ti" t is understood the Superintendent of Banks of State of Ohio has approved the establishment proposed branch. Govet , In view of your recommendation the Board of approves the establishment and operation u eanoh in the Village of Trilby, Washington ! tiazi`tshr,1P, Lucas County, Ohio, by The Sylvania Savings is ni‘j.cl,TanY, Sylvania Ohio, provided the branch letetL'au-lished within ;ix months of the date of this era2 : 14.• ," It is understood that Counsel for the Fedisfy 2erve Bank of Cleveland will review and sattaker,--.7self as to the legal aspects of all steps J-11 establishing the branch." I Approved unanimously. Tel. R%erve 'gram to Mr. Mangels, First Vice President of the Federal 844k of San Francisco, reading as follows: ot 8:Board approves action proposed in your wire subpoena serve o = ..gt a tr aX 2 41Trlt " Approved unanimously. 1() 9/22/50 -6Letter to Mr. S. F. D. Meffley, Special Representative, Recordi ng and Statistical Corporation, Chicago 6, Illinois, reading as follows. "This refers to your letters of September 18, 7)° with regard to designation of an appraisal uid g0 , that you may arrange to print and distribute :ati0nal Used Car Dealers Association, and to " -c of your explanation of Regulation W. 1, view of your approaching deadline, we 1,ed"In Mr. Olson of the Federal Reserve Bank of Chicago to telephone you about these matters. .R Y°u may make your plans in expectation that the : Board will designate such a book for the purpr, --2,cf Part 4 of the Supplement to Regulation W iet7-cted that it is prepared as stated in your jer ce September 18, 1950, and that it meets the' to- c°nditions for designation stated in our letter Y0111 dated September 9, 1950. 'reel 41th regard to the proofs you submitted, we Ilan that the table headed 'Regulation -IX- Fia chedulel, and the reference to it on the : Pree dec % ., -411g Page, may be misunderstood by automobile and others subject to the regulation as itse ing that the use of this table would in therilgT alt11:nc .ompliance with the requirements of '14 to o!s You know, the Board's designation applies aarsvq:hoet_h; _aetrians of average retail values and not to Iigures set forth in guide books, such crder-r calculations of maximum loan value. In this' 0 lessen the danger of misunderstanding in Illatinennection, we suggest that you remove Rega' from the heading of your finance schedP14ati nd restate the last paragraph of your ex°11 with a separate heading and with wording ITIeto the following: by limitations initially established Regulation W for automobiles are: down and PaYments of at least one-third, -maximum maturities of 21 months. he FINANCE SCHEDULE /11e for r„:5°110wing pages exhibit a Finance Schedcc reference showing our computation of 11 4 1 4.-1 ,t) 4 9/22/5o -7H,„.; i4aamum down payment and maximum loan value on bona AT Mash purchase price or appraisal guide value. 4 Mcaonthly also shown." Payment Schedule for 12-month period is Approved unanimously. 't the Letter to Honorable Frederick J. Lawton, Director, Bureau Bud get, Kashington, D. C., reading as follows: teml,"This will acknowledge your letter of Sepof-Zer 12 to Chairman McCabe regarding the study ssa;he administration of foreign affairs and overBrookings °Perations which is being undertaken by the syst "The Institution. Board of Governors of the Federal Reserve ahd desires to cooperate in every way possible statpll be glad to have members of the Brookings requesttalk with representatives of the Board, as you zeit • It is suggested that the Brookings staff will'rs make their initial contact with Mr. Arthur terr:rt, Director of the Board's Division of InLeivisuiL°hal Finance, or in his absence with Mr. sion." Dembitz, Assistant Director of that Divi- Approved unanimously. Lette_ ' to The Honorable, The Comptroller of the Currency, DePartment, Washington 25, D. C., reading as follows: "1t • 411 ord 18 respectfully requested that you place tor Drier.„with the Bureau of Engraving and Printing ., C)r tiiel, l6i , ng 90,000 sheets of Federal Reserve notes 4ichra, - :Z)0 4 Series for the Federal Reserve Bank of 420 ,A,,e-nriouniii3n0a. 00 11 . sheets each in the $5, $10, and 0sit Approved unanimously Secretary.
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