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A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Tuesday, September 9, 1941, at 4:30 PRESENT: Mr. Ransom, Vice Chairman Mr. Szymczak Mr. Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Wyatt, General Counsel Mr. Morrill presented a letter addressed to Chairman Eccles A "ate of August 27, l941, by Mr. Bailey, Assistant Director of the D, "reau of the Budget, transmitting a copy of a report submitted to the Bureau of the Budget by the Secretary of Commerce, in accordatiee v. r/th established procedure, which he proposed to send to the 1841 of the Senate Comirdttee on Banking and Currency in relation t0 the vrlce control bill (S. 1810), and stating that, before replyt0 -ue Secretary of Commerce, the Bureau would appreciate receiv• 4-41 eXPression of the views of the Board regarding the enactment Of th_ Proposed legislatjon. In the ensuing discussion of the reply to be made to Mr. 18811eITI„ called -Letter, Mr. Ransom pointed out that Chairman Eccles had been t0 testifY on the proposed legislation and was expected to do 011 his return from the V;est, which raised the question whether the -°al 'cl shoji]ri -- make a report on the bill in the Chairman's absence or had testified on the legislation. The Secretary was requested to prepare, for the consideration by the Board, 1138 9/9/41 a draft of letter to the Bureau of Budget along lines suggested during the discussion. At this point Ur. Wyatt left the meeting and the action stated with respect to each of the matters hereinafter referred to was then ta411 by the Board* Memorandum dated September 5, 1941, from Mr. Goldenweiser, - vOr of the Division of Research and Statistics, recommending, 'le reasons stated in the memorandum, that l'2,000 be added to the Iler's°11a1 services classification in the 1941 budget of the Division Or earch and Statistics. Approved unanimously. Letter to the board of directors of "The Union Savings Bank of St, eh arles", St. Charles, Missouri, stating that, subject to conditions °f membership numbered 1 to 3 contained in the Board's Regulation 11) the B °arc' approves the bank's application for membership in the Fcdp Leserve System and for the appropriate amount of stock in the Fedtt serve Bank of St. Louis. , Approved unanimously for transmission through the Federal Reserve Bank of St. Louis. °I‘ the Letter to Rr. Nichols, Chief of the Division of Examinations Fe deral Deposit Insurance Corporation, reading as follows: to the request contained in your letSeptember 9, 1941, the Board of Governors of the ter „ -4 " response 9/9/41 —3— Federal Reserve System hereby grants written consent, 11; ,1 accordance with the provisions of subsection (k)(2) 0J. section 12B of the Federal Reserve Act, for examiners for the Federal Deposit Insurance Corporation to make an le,x.arairtation of The Oakland County State Bank, Milford, 'Q.chigan, in connection with its application for continllatIon of insurance after withdrawal from membership in the Reserve System." Approved unanimously. Letter to Mr. West, Vice President of the Federal Reserve Bank Of San Francisco, reading as follows: "Reference is made to your letter of August 30, 1941, rd to a copy of a letter of August 14, 1941, from the ,Pringville Banking Company, Springville, Utah, both rei J atin37 to a request by the member bank for permission to Sc the amount of , ncrease its investment in bank premises by app .`%32,500 for the purpose of remodeling its resent banking quarters to provide additional needed workpacen and to modernize such quarters. tio 'In view of your recommendation and available informaact12:, the Board will interpose no objection to the translon under the condition of membership numbered 8." Approved unanimously. T elegram to the Presidents of all of the Federal Reserve Banks l'eading as follows: Questions have been received regarding the ,"11?C' merl, -PP-Lication of Regulation W to extensions of instal'e credit in cases in which there is delay in the forlTerY of the article sold, or in which time is required uhe of a job of installation or constructi°q. thaj. general principle applicable to these cases is the delay in the delivery of the article or in the of the job is bona fide and is not for the purc"- evading any of the provisions of the regulation, fi',7 40 9/9/41 "the date of delivery or completion may be used as the ! 3,ase for applying the requirements of the regulation. "ence the down-payment could be obtained in such cases any time on or before such date of delivery or comple:,4°.n. Similarly, the 18 months maximum maturity in such ' ases could be calculated from such date of delivery or COmPletion with, of course, the usual option under secsee9(b) of making the 15-day adjustment permitted by that section for calculating the maximum maturity. For any such case in which any date later than the dateof the contract between the seller and the purchaser 2 4 used as the base for applying the requirements of the :sgulation, ,it it would be advisable for the Registrant's record to indicate clearly the facts justifying such se of a later date. t) "A related question received by the Board deals with or f ' c gress Payments under a contract for the installation o a heating C system' or under a contract for a similar lant,truction job. Payment is to be made for the instalme or construction as the job progresses. Each paytir" is to be made at the completion of a specified poreo ! of the job and is to be approximately equal to the e2L of that portion, the final payment being made at the f;:c4iPlet1cm of the job. If such an arrangement is a bona ten :bu8iness practice which is followed for the conveneva ; of the parties concerned and is not an effort to tiot e an of the provisions of Regulation VI, the regula1 does not require any change in the procedure." ; Approved unanimously. ' l eadtrig Te legram to the Presidents of all of the Federal Reserve Banks as follows: for. : Reg* 1 -44. The classification 'ironers designed eloc L.Ionsehold trically use' does not include hand irons, whether or otherwise operated." Approved unanimously. Tele„ 1'4(44 g to the Presidents of all of the Federal Reserve Banks 4 f011OWS* 1141 9/9/41 -5- , "In response to an inquiry one Federal Reserve Bank nas been advised as follows: 'It is suggested that expenses incurred by liaison officer and his staff in connection With Defense Savings Bond program including salaries (other than those chargeable to General Overhead) be reported in the nonreimbursable column of the U. S. Savings Bond unit in the Functional Expense Report, Form E.'" Approved unanimously. Thereupon the meeting adjourned. Secretary. Vice Chairman.
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