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A meeting of the Executive Committe e of the Federal Reserve Board was held in Washington on Monday, September 24, 1954 , at 12:40 P.m. PRESENT: Mr. Mr. Mr. Mr. Thomas, Vice Governor Hamlin James Szymczak Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Wyatt, General Counsel Goldenweiser, Director of the Division of Research and Statistics Mr. Parry, Assistant Director of the Division of Research and Statistics Mr. DuBois, Assistant Counsel Mr. Mr. Mr. Mr. Mr. ALSO PRESENT: Mr. Black, Governor of the Federal Reserve Bank of Atlanta. Reference was made to the revised draft of September 25, 1954, °t the regulation with regard to the extension and maintenance of credit bl'Okers 2 dealers and members of national securities exchanges, which had bec„, -- prepared by memb ers of the Boardts staff in accordance with the l'equest made at the meet ing on September 22, and copies of which had been 1\1111i-shed to all members of the Boar incl d uding, at the request of Vice Goverizor Th the Secret y of the Treasury and the Comptroller of the ellrreno Thomas stated that he had sent copi es of the revised draft Mi. Jo__ 'Pliant, General Counsel to the Secretary of the Treasury, and °ePh P. Kennedy, Chairman of the Securities and Exch ange Commission. or sect.T on he draft was discussed and it was suggested that subsection (b) 1 5 n / Credit not c114 for purchasing or carrying securities", be liged to read as follows: to mr. or 2918 9/24/34 -2"In a special account recorded separately, a creditor may, notwithstanding any other provision of this regulation, extend credit to any customer, without collateral Or on any collateral other than non-exempted registered securities, for bona fide commercial or industrial purposes or for any other purpose except for the purpose of purchasing or carrying securities or of evading or circumventing the provisions of this regulation.” This amendment to the draft was agreed to by the members present, elld Mr. SzYmczak and Mr. James stated that they were ready to vote on the draft as thus amended. Messrs. Thomas and Hamlin indicated that they were inclined favorably to the revised draft, but stated that they had not had an °PPortunity to read the draft carefully but would do so by 3:00 p.m. this afternoon. Mt. Thomas stated he would call a meeting at that time t°r a discussion of any further questions that might occur to him or 41r6 Hamlin in connection with their study of the draft of regulation. 41** SzYmczak inquired whether it was agreed that the regulation should be isaued before October 1 and made effective on that date, and all the members present expressed concurrence with that position. It was suggested that Mr. Thomas arrange a meeting of the Board t°1' tomorrow morning, to which the Secretary of the Treasury and the e°mPtroller of the Currency would be invited, with the view to taking 11.116 ' 1 acti cm on the regulation. Mr. Thomas stated that it was important that as much time as possible be saved in acting upon the regulation and tilat he 'Quid comm 'cate with the Secretary of the Treasury and the e°111Ptrollerof the Currency and arrange a meeting for sometime tomorrow koz.4. Ing, if possible. 2919 9/24/34 -5Mr. Morrill said that Mr. Wyatt was preparing a statement, to be printed on the inside page of the regulation, in connection with the procedure to be followed in submitting inquiries regarding the interpretati on.and application of the regulation, and that a press state Was being prepa red by Messrs. Goldenweiser, Wyatt and Parry to be iss4ed when the final regulation is made public. Certain questions in connection with the press statement were raised and discussed, but no action was taken. the At this point the members of the staff left the meeting, and Executive Committee went into executive session, at the conclusion of whieh Mr. Morrill was requested to record in the minutes of the itleeting that the committee had asked Mr. Szymczak to give special attentien and supervision to the question of expediting the transfer of title to the proposed site on Constitution Avenue for the Board's new tmilding. Thereupon the meeting adjourned. sere,occut4PPrOyed: Secretary.
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