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A meeting of the Board of Governors of the Federal Reserve SYstem Was held in Washington on Monday, September 28, 1942, at 1:45 PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pecle„ "al Reserve System held on September 26, 1942, were approved unanikottsiy. Letter to Mr. Gilbert, President of the Federal Reserve Bank of ba reading as follows: th "As requested in your letter of September 18, 1942, t e Board of Governors approves the payment of salaries ao the following officers at your Bank and the San Antonio jd El Paso Branches, effective September 16, 1942, for a"e period ending May 31, 1943, at the following rates a fixed by your Board of Directors: Annual Titaa 4E,ag 2.810,174 ur,IJUI OFFICE: vp $5,400 Assistant Cashier Eaglee SAM ANTONIO __ BRANCH Earl B. Austin 8,000 Managing Director ,Claude M. Rowland 4,800 Cashier 4L PASO BRANCH 3,180" GI'c'ver C. Page Cashier Approved unanimously. 9123/42 Telegram to the Presidents of a11 the Federal Reserve Banks, Ileading as follows: ."Board does not contemplate making a fall call for condition reports upon State member banks. You may so ivlse State banking departments for their confidential t Jformation. Understand Comptroller's office has advised cell that no immediate call for reports upon national anks is contemplated." t Approved unanimously. Letter to Mr. Chalfont, Managing Director of the Detroit Branch of the Federal Reserve Bank of Chicago, reading as follows: "This refers to your letter of September 18, 1942, enclosing a copy of a letter from Mr. J. F. Verhelle, Vice and Controller, The Manufacturers National Bank President of Detroit, dated September 16, 1942, regarding that of the standard form of guarantee agreement which , prohibits the financing institution from exercising : 4.T ()lotion to accelerate the maturity of the obligation °Ithout the prior written consent of the Guarantor. 4, "It is our understanding that the provision in ques4-on refers only to cases in which the loan agreement kes provision for an option to accelerate maturity and tc)!s not refer to cases in which the loan agreement conprovisions for the automatic acceleration of maupon the happening of certain events. Ordinarily, is believed that where maturity may be accelerated Upon . the happening of a certain event only after the giving 0 ' a notice by the financing institution to the borrower, t1, 11°11 acceleration is to be regarded as 'optional' rather ' d arl 'automatic'; and in such cases it would seem that untielr the terms of the standard form of guarantee agreement mae financing institution's option to accelerate maturity #,Y not be exercised without the prior written consent of %die Guarantor. Se •"While we have not submitted this matter to the armed rvices, we shall be glad to take the question up with the Particular Agency concerned if the question should become 'llaterial in any particular case." r Approved unanimously. .1888 9128/42 -3Letter to Lieutenant Colonel Paul Cleveland, Chief of the Loan SectiOn3 Advance Payment and Loan Branch of the War Department, reading a8 "L 01,10.11S: "There is transmitted herewith a copy of a letter received from Mr. C. B. Strathy, Assistant Cashier, Federal Reserve Bank of Richmond, dated September 23, 1942, "closing a list of guarantees executed by the Federal ne?erve Bank of Richmond on behalf of the War Department which have been terminated and cancelled. This is in response to your memorandum of September 10, 1.942, rePrding the cancellation of terminated guarantee agree- Approved unanimously. Thereupon the meeting adjourned. lEihcArMa} /-)7)(e_0141__ Secret ry. Chairman.
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