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1310 A meeting of the Board of Governors of the Federal Reserve SYEtem was held in Washington on Friday, September 26, 1941, at 11:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman 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 hereillafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pecleral Reserve System held on September 25, 1941, were approved 44411iRlously. Telegrams to Messrs. Sanford and Hays, Secretaries of the Pecler 41 Reserve Banks of New York and Cleveland, respectively, Mr. Leacts President of the Federal Reserve Bank of Richmond, Messrs. rct and Powell, Secretaries of the Federal Reserve Banks of Chica go and Minneapolis, respectively, Mr. Caldwell, Chairman of the p ederal Reserve Bank of Kansas City, and Mr. Coleman, Vice Preset of the Federal Reserve Bank of Dallas, stating that the Board 4151:Tovp. the -' establishment without change by the Federal Reserve 4141at of Kansas City on September 22, and by the Federal Reserve :11111tap o4 New York, Cleveland, Richmond, Chicago, Minneapolis, and se's. 1311 9/26/41 -2- Oallas on September 25, 1941, of the rates of discount and purchase intheir existing schedules. Approved unanimously. Telegram to Mr. Stewart, Secretary of the Federal Reserve ank of St. Louis, replying to his wire of September 25, 1941, and that on advances to established industrial or commercial "'sses under section 13b of the Federal Reserve Act, when a fi' lrleing institution was also makine, an advance, the Federal Reserve tame of -1" St. Louis, effective September 27, 1941, was authorized to charge same rate as was charged the borrower by the financing institUtion if such rate was lower than Reserve Bank's established rate. The telegram also stated that the Board approves the establishment bY the Pt -ank without change of the other rates of discount and pure4se in its existing schedule, advice of which was contained in kr, Stewart's telegram of September 25, 1941. Approved unanimously. Mr. Morrill reported that the Comptroller of the Currency today , issued a call on all national banks for reports of condition 44 , a.6 the close of business on September 24) 1941, and that, in acee with the usual practice, a call was made on behalf of the Of 11114*er Governors of the Federal Reserve System today on all State nk ba--s for reports of condition as of the same date. The call made on behalf of the Board was approved unanimously. 1312 9/26/41 -3Letter to the Presidents of all Federal Reserve Banks read- ing as follows: "There are enclosed for your information a copy of a letter addressed to Governor Ransom by the President of a Federal Reserve Bank under date of September 17) 1941, a copy of our reply, and a copy of a proposed draft of a letter which might be used in answering requests for advice as to the legality of forms of instalment contracts." Approved unanimously. The letter to a President of a Federal Reserve Bank referred to in the above letter was addressed to President Young of the Boston Bank and read as follows: "This is in response to your letter of Se,,tember 17, 1941, regarding requests made by various dealers that the Federal Reserve Bank examine forms of instalment contracts submitted by such dealers and advise whether they comply With Regulation W and are otherwise legal. "It is unfortunate that your inability to comply with such requests is creating bad feeling but we agree with YOU that it is neither feasible nor appropriate for a Federal Reserve Bank to undertake to give such legal advice. "It is noted that you are writing a courteous letter iI each case explaining why you cannot assume this respons bility; and it is believed that) if such letters are ??rased in such a way as to enable the persons to whom Irsy are addressed to understand clearly why the Federal .,sserve Banks cannot comply with such requests, it will tend to reduce any resulting bad feeling to a minimum. In an effort to be helpful in this connection, a drat+ of a letter which might be used for this purpose is i7:.Lesed for your consideration. It is believed that form 1,4 ters should not be used for this purpose and that indi'tial letters should be written in each case." Letter to the Presidents of all Federal Reserve Banks read- aS 4.01 10WS: hi. HP. 1313 9/26/41 -4- "In accordance with the practice followed in recent Years, a supply of form F.R. 456, revised September 1941 (copy enclosed), is being sent you under separate cover for use in connection with the preparation of member bank operating ratios for 1941. The printing of this work Sheet was delayed for a time pending consideration of suggested revisions of the earnings and dividends report form. The only revision that has been decided upon is the addition of a column in which total-year figures are to be reported. This change will reduce the time required to compile the work sheets. "It is requested that, upon completion of the operating ratio tabulations usually made at your Bank, these work sheets be sent to the Board. As in past years the data will be transferred to punched cards, which in turn will be used in making tabulations for publication in the Bulletin and for other purposes. In order that any memorandum ratios used this year may be computed accurately Without additional work, particular attention should be Paid to the distinction between very small amounts or percentages and absolute zero items (see instructions on reverse side of the form). "To avoid the inconvenience of being without the inshown on the work sheets during the period that 'it is being recorded on punched cards here, you may want , c) consider the possibility of having the data reproduced fl Recordak film. Such reproduction was employed at the : sard's offices this year as a means of keeping readily ;1.1d permanently available the information shown on the opis _ ating ratio forms for 1940, and the process was found to r.atboth satisfactory and inexpensive. If your Bank duplies these forms next year by the Recordak process, you :IV not care to have the original work sheets returned to tl; d also, the Banks that have heretofore prepared duplito!forms manually for the Board's use may no longer need 1.18 do this and may require fewer blank forms than were ifed in the past. Consequently, it will be appreciated aljou will advise whether or not you will want the work 3 'returned and how many blank forms (if any), in adA7?I 1(3 " to the supply now being sent to you, will be needed." Z Ap,roved unanimously. 1314 9/26/41 _.5_ Thereupon, the meeting adjourned.
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