19490228_200p_Minutes.pdf

378

Minutes of actions taken by the Board of Governors of the

Pederal Reserve System on Monday, February 28, 1949. The Board

Illet in the Board Room at 2:00 p.m.

PRESENT: Mr. McCabe, ChairmanMr. EcclesMr. SzymczakMr. DraperMr. VardamanMr. Clayton

Mr.Mr.Mr.Mr.Mr.Mr.

Mr.

Mr.

Carpenter, SecretarySherman, Assistant Secretary

Morrill, Special AdviserRiefler, Assistant to the ChairmanVest, General CounselLeonard, Director of the Division ofBank OperationsNelson, Director of the Division of

Personnel AdministrationMillard, Director of the Division ofExaminations

Before this meeting the Presidents of the Federal Reserve

e mitted a memorandum covering topics discussed at their

el5Etrete meeting on February

111141e4 with the Board at the

thte etternoorx.

the't Chairman McCabe

25 and 26, 1949, which were to be re-

joint meeting to be held at 3:00 p.m.

The topics were discussed and it was understood

would

Et"'ecorded in the minuteslth

ttoli

state the Board's views substantially

of the separate meeting of the Board

the Presidents.

14 connection with the discussion of the topic of legisla-

to ,..--"4:ovide for the conversion of national banks to State banks

lt}l(AAg°11ag. through liquidation, Mr. Clayton referred to his con-

ti04e with Mr. Rapport, Chairman of the Executive Committee

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

$70..417

2/28/119 -2-

Of the National Association of Supervisors of State Banks as recorded

14 the minutes of January 14 and 18, 1949. He stated that on Friday

atternoon, February 25, Mr. Davis, Chairman of the Presidents' Con-

asked him to meet with himself and Mr. Sproul, President

"the Federal Reserve Bank of New York, at which time Mr. Sproul

/atet4d that Elliott V. Bell, Superintendent of Banks for New York,

a4/ also a member of the Executive Committee of the National Asso-

4tion of Supervisors of State Banks, in discussing with him Mr.

ele4rt°nI e conversation with Mr. Rapport, said that he understood

tliet Mr. Clayton had informed Mr. Rapport that if the Supervisor's

488"1"1011 would support legislation proposed by the Board which

11010 A

-..v4 extend supplemental reserve requirements to cover all insuredbezk.-8) the Board in turn would support the proposed legislation for

corxvereiot of national banks to State banks. Mr. Clayton stated

ihp-'°rmed Messrs. Davis and Sproul that there had been a distinct

411114clerstanding since his statement to Mr. Rapport over the tele-

1114 vas that, unless the Congress made the supplemental reserve

41111tellents applicable to insured nonmember banks, as well as

44114r banks, the Board would oppose the proposed legislation with

:(1815ect to conveesion. He added that he informed Messrs. Davis and

--14111 that he had never expected the Supervisors' Association to

:1111'citt the Board's position with respect to reserve requirement

'fa"Blation.there

Mr. Clayton went on to say that Mr. Sproul stated

/les at evident misunderstanding by Mr. Bell of the Board's


2/28/49 -3-

Position on the legislation and that he would clear the matter up

With him after returning to New York.

At this point Messrs. Vest, Leonard, Nelson, and Millard

wittorew and the action stated with respect to each of the matters

hereiriafter referred to was taken by the Board:

Minutes of actions taken by the Board of Governors of the

?ederea Reserve System on February 25, 1949, were approved unani-

tIoUsiy.

Telegram to Mr. Woolley, Vice President of the Federal Re-

ss1.17-' bank of Kansas City, reading as follows:

"Reurlet February 24, 1949, regarding employment01' Arthur H. Saville, Jr., as a trainee for position:8 an assistant examiner. Board approves his designa-

n as a special assistant examiner for the FederalAeserve Bank of Kansas City. Please advise nature ofdisability for which pension is received. With ref-erence to indebtedness, it is assumed these obligationsvill be placed on a regular reduction basis if such isllot already the case."

Approved unanimously.

Letter to the Presidents of all Federal Reserve Banks, read-

4B follows:

ars "Reference is made to the Board's letter S-206i ted March 4, 1940 (F.R.L.S. #9084.1), in which ittit Provided, in part, that the Board's approval beteined before a Federal Reserve Bank employs special

,:u4sel whose services are likely to involve an ex-4'11(liture in excess of $1,000,ae "Pursuant to a suggestion made by a Federal Re-crI've Bank the Board has given consideration to in-

"'slag this limitation and, accordingly, the letter


2AA/49 -4-

"s-206 is hereby amended so as to raise from $1,000 to$2,500 the limitation on the amount which may be paidto special counsel by Federal Reserve Banks without theadvance approval of the Board of Governors."


Letter to Mr. Clark, Manager, Consumer Instalment Credit

nePa-rtMent, Federal Reserve Bank of St. Louis, reading as follows:

"This refers to your letter of February 10, 1949,concerning whether section 6(a)(1) of Regulation W re-

to the first half of the maximum maturity per-Mitted by the regulation, or the first half of theactual maturity, where the parties to a particular in-stalment obligation agree to a maturity less than the

maximum permitted by the regulation."Section 6(a)(1) refers to the maximum maturity

Permitted by the regulation. Consequently, in thecase of an $800 instalment loan for 8 months, fore aMPle, the 'first half of the applicable 1318XiMUMMaturity' would be 7-1/2 months, rather than 4 months."


41,1

Of San Francisco, reading as follows:

Telegram to Mr. Earhart, President of the Federal Reserve

a "Referring February 23 letter, no objection to

)31,/,E41‘ding contract for structural steel, Portland1ding, to Gunderson Bros. Engineering Corp., the

f'%/etst bidder, at $159,675. It is understood that:attract may be cancelled with reimbursement for

41°ense of preparing shop drawings."


klAroveti: Secretary.

14-4-a614-(C?

Chairman.


19490228_200p_Minutes.pdf

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