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1484T A meeting of the Board of Governors of the Federal Reserve System was held in Washington on Monday, September 25, 1944, at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary The action stated with respect to each of the matters herein— after referred to was taken by the Board: s of the The minutes of the meeting of the Board of Governor were approved unani— Federal Reserve System held on September 23, 1944, Memorandum dated September 21, 1944, from Mr. Goldenweiser, Director of the Division of Research and Statistics, submitting the l'esignation of Miss Doris B. Bernstein, as a research assistant in that Division, to become effective as of the close of business on ion be accepted October 2, 1944, and recommending that the resignat as of that date. The resignation was accepted as rec— ommended. Letter to Mr. Ira Rubel, Ira Rubel & Company, Chicago, Illinois, /'eading as follows: effect "The problem presented by you concerning the been has of Regulation IV on the purchase of fine fiddles 1485 9/25/44 -2- "given further consideration, in the light of the information furnished by yourself and collected by us through several of the Federal Reserve Banks which were asked to consult with dealers in musical instruments in Boston, New Philadelphia, and Chicago. Our conclusion, Which we should like to explain to you, is that we should not attempt at this time to solve this problem by amending the regulation but should list it among a number of similar problems to be dealt with, if possible, at some later time. "Briefly summarized, the relevant information before us is to the effect that really fine fiddles, such as those costing as much as several hundred dollars, are sold in any considerable number by a very limited number of dealers -probably less than ten; that many of the transactions are either for cash or on 30-day charge account; and that many of the purchasers who buy on the instalment plan are (1) in as good position to deposit the required down payment at the time of taking out the instrument on approval as they will be at the end of the approval period, and (2) in as good position to make the required deposit as persons buying other listed articles, of similar value, with an approval period and on the instalment plan. Furthermore, there is a wide divergence of opinion among dealers as to the desirability of changing this provision in the regulais more tion, some dealers contending that this provision than satisfactory in its present form. From our point of view, therefore, in view of the purposes of Regulation VI and our responsibilities for administering it, the question comes to be that of deciding whether the number of people is inconvenienced and the degree of their inconvenience this time at on regulati the g sufficient to justify amendin this from people these ng and for the purpose of relievi inconvenience, "You will understand, we believe, that the question before us is not so simple as it may look at first sight or as it would be if Regulation W were less comprehensive in its coverage. Should the amendment, if one were to be made, relate only to the approval provisions of the regulation or to the down payment provisions in general? Should it relate only to fine fiddles (defined perhaps in terms 148G 9/25/44 -3-- "of their price), or to all stringed instruments, or to all musical instruments, or to some broader category including perhaps a number of other groups of listed articles? All of these alternatives, and several others as well, have both advantages and disadvantages, such as those affecting the simplicity or complexity of the regulation and those bearing on its equity as between buyers of different articles and buyers in different circumstances. It may well be, as it seems to us, that within a few months a solution to the fine-fiddle problem and a number of related problems will become feasible that will be far simpler and more satisfactory than any that would be feasible at present. "We wish to assure you that when that time comes we shall take pains to see that the problem you have prethat in sented to us is by no means overlooked. We trust tande the unders receiv the meantime we shall continue to as well ments instru l ing cooperation of dealers in musica as that of their customers." Approved unanimously. g as folLetter to the Comptroller of the Currency readin 10W8: an "It is respectfully requested that you place supple ng Printi and ing Engrav order with the Bureau of ng Fedmenting the order of June 131 1944) for printi s amount the in Series eral Reserve notes of the 1934 Bank e Reserv l Federa the and denominations stated for of Richmond: Number of DenomiAmount sheets nation ,000 $9,000 1,500 $500 0" 000,00 91 750 1000 Approved unanimously. 148 9/25/a •Im Thereupon the meeting adjourned. Approved Vice Chairman.
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