19411216

1776

A meeting of the Board of Governors of the Federal Reserve S ystem w a s held in Washington on Tuesday, December 16, 1941* at 2:30pfll

PRESENT: Mr. Eccles, ChairmanMr. Ransom, Vice Chairman Mr. Szymczak Mr. McKee Mr. Draper

Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the

ChairmanMr. Wyatt, General Counsel Mr. Parry, Chief of the Division of

Security Loans Mr. Dreibelbis, Assistant General Counsel Mr. Vest, Assistant General Counsel

The question was presented whether the Board should take anyfurther action at this time with respect to the proposed amendments tothe Securities Act of 1933 which were discussed at the meeting with theFederal Advisory Council on November 17> 1941, or the statement submittedby the Council at that time in which the opinion was expressed that whena purpose statement was adopted section 5(b) of Regulation W, ConsumerCredit, should be eliminated. The members of the Board were unanimouslyof the opinion that, in view of the developments which had taken placesince November 17, 1941, in connection with the amendments to the Securi-ties Act, there was nothing further in that field to be done at this time by the Board. It was also felt that, since the suggestion of the Federal Advisory Council with respect to section 5(b) of Regulation W was given careful consideration in connection with the formulation of

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

1777

Amendment No. 2 to the regulation and it was decided at that time that the section should be retained at least until it could be determined whether the recently prescribed purpose statement would be sufficiently effective to make unnecessary the application of the regulation to in-stalment loans which are not secured by or for the purpose of purchasing listed articles, no action should be taken by the Board at this time with respect to the Council's statement, and that since the members of the Council were aware of the Boards position in this matter there was no need for further communication with the Council regarding it.

At this point Messrs. Thurston and Parry left the meeting.There was then presented a memorandum dated November 10, 1941 >

from Mr. Nelson, Assistant Secretary, relating the circumstances under which United States Government identification shields were placed on the automobiles owned by the Board and referring to certain considera-tions which might be taken into account in reaching a conclusion whether, as had been suggested, the shields should be removed from the cars*

Following a brief discussion of the matter, approval was given to the substitu-tion of a decalcomania reproduction of the Board* s seal for the shields on the seven- passenger Chrysler sedan, Mr. Ransom vot-ing "no11.

Mr. Dreibelbis withdrew from the meeting at this point.Consideration was then given to the designation of Chairmen

and Deputy Chairmen at Federal Reserve Banks for the year 1942 and to the appointment of Class C directors of Federal Reserve Banks and

12/16/1*1 -2 -


1778

directors of branches of Federal Reserve Banks for terms beginning

January 1, 1942, and the following actions were taken:

Henry S. Dennison was designated Chairman and Federal Reserve Agent a t the Federal Reserve Bank of Boston for the year 1942, and his compensation as Chairman and Federal Reserve Agent was fixed on the uniform basis fixed for the same position at all Federal Reserve Banks, i.e., the same amount as the aggregate of the fees payable during the same period to any other director for attendance corres-ponding to his at meetings of the board of directors, executive com- jdttee, and other committees of the board of directors,

Henry I. Harriman was appointed Deputy Chairman of the Federal Reserve Bank of Boston for the year 1942.

12/16/4X -3 -

Beardsley Ruml, Treasurer of R. H. Macy & Company, New York, New York, was reappointed a Class C director of the Federal Reserve Bank of New York for a term of three years beginning January 1, 1942, and redesignated as Chairman and Federal Reserve Agent at the Bank for the year 1942, his compensation as Chairman and Federal Reserve Agent being fixed on the uniform basis fixed for the same position at all Federal Reserve Banks, i.e., the same amount as the aggregate of the fees payable during the same period to any other director for attend-ance corresponding to his at meetings of the board of directors, ex-ecutive committee, and other committees of the board of directors.

Edmund E. Day was reappointed Deputy Chairman of the Federal Re-serve Bank of New York for the year 1942.

M. B. Folsom, Treasurer of Eastman Kodak Company, Rochester, New lork, was reappointed a director of the Buffalo Branch of the Federal Reserve Bank of New York for a term of three years beginning January 1, 1942.

Winfield Vf. Riefler, Professor in the School of Economics and Politics of the Institute for Advanced Study, Princeton, New Jersey, *as reappointed a Class C director of the Federal Reserve Bank of Philadelphia for a term of three years beginning January 1, 1942.

Thomas B. McCabe was redesignated Chairman and Federal Reserve Agent at the Federal Reserve Bank of Philadelphia for the year 1942, snd his compensation as Chairman and Federal Reserve Agent was fixed


1779

on the uniform basis fixed for the same position at all Federal Re- serve Banks, i.e., the same amount as the aggregate of the fees pay-able during the same period to any other director for attendance cor-responding to his at meetings of the board of directors, executive committee, and other committees of the board of directors.

Warren F. Whittier was reappointed Deputy Chairman of the Federal Reserve Bank of Philadelphia for the year 1942.

Walter H. Lloyd, Editor of The Ohio Farmer, Cleveland, Ohio, was re-appointed a Class C director of the Federal Reserve Bank of Cleveland for a term of three years beginning January 1, 1942.

George C. Brainard was redesignated Chairman and Federal Reserve Agent at the Federal Reserve Bank of Cleveland for the year 1942, and his compensation as Chairman and Federal Reserve Agent was fixed on the uniform basis fixed for the same position at all Federal Reserve Banks, i.e., the same amount as the aggregate of the fees payable during the same period to any other director for attendance corresponding to his at meetings of the board of directors, executive committee, and other committees of the board of directors.

R. E. Klages was reappointed Deputy Chairman of the Federal Re-serve Bank of Cleveland for the year 1942*

Francis H. Bird, Professor of Commerce at the University of Cin-cinnati, was appointed a director of the Cincinnati Branch of the Federal Reserve Bank of Cleveland for a terra of two years beginning January 1, 1942.

Robert E. Doherty, President of the Carnegie Institute of Tech-nology, Pittsburgh, Pennsylvania, was appointed a director of the Pittsburgh Branch of the Federal Reserve Bank of Cleveland for a term of two years beginning January 1, 1942.

Charles P. McCormick, President of McCormick & Company, Inc., Baltimore, Maryland, was reappointed a Class C director of the Federal Reserve Bank of Richmond for a term of three years beginning January1, 1942.

Robert Lassiter was redesignated Chairman and Federal Reserve Agent at the Federal Reserve Bank of Richmond for the year 1942 and his compensation as Chairman and Federal Reserve Agent was fixed on

1-/16/41 - 4-


1780

the uniform basis fixed for the same position at all Federal Reserve Banks, i.e., the same amount as the aggregate of the fees payable during the same period to any other director for attendance corres-ponding to his at meetings of the board of directors, executive com-mittee, and other committees of the board of directors.

W. G. Wysor was reappointed Deputy Chairman of the Federal Re-serve Bank of Richmond for the year 1 9 4 2 .

W. Frank Thomas, Construction Engineer and Real Estate Manage-ment, Westminster, Maryland, was reappointed a director of the Balti-more Branch of the Federal Reserve Bank of Richmond for a term of three years beginning January 1, 1942.

Charles L. Creech, Sr., Chairman of the B. F. Huntley Furniture Company, Winston-Salem, North Carolina, was reappointed a director of the Charlotte Branch of the Federal Reserve Bank of Richmond for a term of three years beginning January 1, 1942.

Frank H. Neely, Executive Vice President and Secretary of Richs, Inc., Atlanta, Georgia, was reappointed a Class C director of the Fed-eral Reserve Bank of Atlanta for a term of three years beginning Jan-uary 1, 1942, and redesignated as Chairman and Federal Reserve Agent at the Bank for the year 1942, his compensation as Chairman and Fed-eral Reserve Agent being fixed on the uniform basis fixed for the same position at all Federal Reserve Banks, i.e., the same amount as the aggregate of the fees payable during the same period to any other di-rector for attendance corresponding to his at meetings of the board of directors, executive committee, and other conmittees of the board of directors.

J. F. Porter was reappointed Deputy Chairman of the Federal Re-serve Bank of Atlanta for the year 1942.

Donald Comer, Chairman of Avondale Mills, Birmingham, Alabama, was reappointed a director of the Birmingham Branch of the Federal Reserve Bank of Atlanta for a term of three years beginning January 1, 1942.

Walter J. Matherly, Dean of the College of Business Administra-tion of the University of Florida, was appointed a director of the Jacksonville Branch of the Federal Reserve Bank of Atlanta for a terra of three years beginning January 1, 1942.

Clyde B. Austin, President of The Austin Company, Inc., Greene- ville, Tennessee, was reappointed a director of the Nashville Branch

12/16/41 -5-


1781

of the Federal Reserve Bank of Atlanta for a term of three years be-ginning January 1, 1942.

Alexander Fitz-Hugh, Vice President of the P. P. Williams Company, Vicksburg, Mississippi, was reappointed a director of the New Orleans Branch of the Federal Reserve Bank of Atlanta for a term of three years beginning January 1, 1942.

Simeon E. Leland, Professor of Economics at the University of Chicago, Chicago, Illinois, was reappointed a Class C director of the Federal Reserve Bank of Chicago for a term of three years beginning January 1, 1942.

It was understood that Mr. Szymczak would confer with Mr. Lewis, Class C di-rector and Chairman and Federal Reserve Agent at the Chicago Bank with respect to his retirement, and that the Personnel Com-mittee would make further investigations with respect to persons for appointment as a Class C director of the Chicago Bank to fill the vacancy caused by the death of Clifford V. Gregory and the vacancy caused by Mr. Lewis retirement should that occur. It was also understood that advice of the appointment of Mr. Leland should be held pending Mr. Szymczak's conversation with Mr. Lewis.

L. Whitney Watkins, Farmer, Manchester, Michigan, was reappointed a director of the Detroit Branch of the Federal Reserve Bank of Chicago for a term of three years beginning January 1, 1942.

Douglas W. Brooks, President of The Newberger Company, Memphis, Tennessee, was reappointed a Class C director of the Federal Reserve Bank of St. Louis for a term of three years beginning January 1, 1942.

fin. T. Nardin was redesignated Chairman and Federal Reserve Agent at the Federal Reserve Bank of St. Louis for the year 1942 and his com-pensation as Chairman and Federal Reserve Agent was fixed on the uniform basis fixed for the same position at all Federal Reserve Banks, i.e., the same amount as the aggregate of the fees payable during the same period to any other director for attendance corresponding to his at ^etings of the board of directors, executive committee, and other com-mittees of the board of directors.

12/16/41 - 6 -


1782

Oscar Johnston was reappointed Deputy Chairman of the Federal Reserve Bank of St. Louis for the year 1942.

S . M. Brooks, President of the S. M. Brooks Advertising Agency, Little Rock, Arkansas, was appointed a director of the Little Rock Branch of the Federal Reserve Bank of St. Louis for a terra of three years beginning January 1, 1942.

E. J. O'Brien, Jr., tobacco leaf dealer, Louisville, Kentucky, was appointed a director of the Louisville Branch of the Federal Re-serve Bank of St. Louis for a term of three years beginning January1, 1942.

J. Holmes Sherard, President of John H. Sherard & Son, Sherard, Mississippi, was reappointed a director of the Memphis Branch of the Federal Reserve Bank of St. Louis for a term of three years beginning January 1, 1942.

Roger B. Shepard, President of Finch, Vein Slyck & McConville, St. Paul, Minnesota, was reappointed a Class C director of the Federal Re-serve Bank of Minneapolis for a term of three years beginning January 1, 1942, and as Deputy Chairman of the Bank for the year 1942.

YJ. C. Coffey was redesignated Chairman and Federal Reserve Agent at the Federal Reserve Bank of Minneapolis for the year 1942 and his compensation as Chairman and Federal Reserve Agent was fixed on the uniform basis fixed for the same position at all Federal Reserve Banks,i.e., the same amount as the aggregate of the fees payable during the saae period to any other director for attendance corresponding to his at meetings of the board of directors, executive committee, and other connittees of the board of directors.

H. D. Myrick, Farmer, Square Butte, Montana, was reappointed a director of the Helena Branch of the Federal Reserve Bank of Minneapolis for a term of two years beginning January 1, 1942.

Robert L. Mehornay, President of the North-Mehomay Furniture Company, Kansas City, Missouri, was appointed a Class C director of the Federal Reserve Bank of Kansas City for a term of three years be-ginning January 1, 1942, and as Deputy Chairman of the Bank for the year 1942.

R. B. Caldwell was redesignated Chairman and Federal Reserve Agent at the Federal Reserve Bank of Kansas City for the year 1942 and his compensation as Chairman and Federal Reserve Agent was fixed on the uniform basis fixed for the same position at all Federal Reserve

12/16/41 - 7 -


1783

Banks, the same amount as the aggregate of the fees payable dur-ing the same period to any other director for attendance corresponding to his at meetings of the board of directors, executive committee, and 0ther conmittees of the board of directors.

J. B. Grant, of the law firm of Lewis and Grant, Denver, Colorado, *as reappointed a director of the Denver Branch of the Federal Reserve Bank of Kansas City for a term of three years beginning January 1, 1942.

Neil R. Johnson, Rancher and Farmer, Norman, Oklahoma, was reap-pointed a director of the Oklahoma City Branch of the Federal Reserve Bank of Kansas City for a term of three years beginning January 1,1942.

Leonard E. Hurtz, President of the Fairmont Creamery Company,Omaha, Nebraska, was appointed a director of the Omaha Branch of the Federal Reserve Bank of Kansas City for a term of three years beginning January 1, 1942.

It was decided that J. H. Merritt should not be reappointed as a Class C director of the Federal Reserve Bank of Dallas and that the Personnel Committee should go over the list of Board appointees to the directorates of the branches of the Dallas Bank for the purpose of ascer-taining whether it would be desirable to appoint one of them as a Class C director of the Bank to succeed Mr. Merritt.

Jay Taylor was reappointed Deputy Chairman of the Federal Reserve Bank of Dallas for the year 1942.

F. M. Hayner, President of the Las Cruces Lumber Company, Las Cruces, New Mexico, was reappointed a director of the El Paso Branch of the Federal Reserve Bank of Dallas for a term of three years be-ginning January 1, 1942.

H. Renfert, Renfert-Helmbrecht Company, Galveston, Texas, was re-appointed a director of the Houston Branch of the Federal Reserve Bank Dallas for a term of three years beginning January 1, 1942.J. M. Odom, General Contractor, Austin, Texas, was reappointed a

director of the San Antonio Branch of the Federal Reserve Bank of Dallas for a term of three years beginning January 1, 1942.

12 / 1A / a - s -


1784

Henry F. Grady, President of American President Lines, Ltd.,an Francisco, California, was appointed a Class C director of the federal Reserve Bank of San Francisco for a term of three years be-ginning January 1, 1942, and designated as Chairman and Federal Re-serve Agent at the Bank for the year 1942, his compensation as Chairman and Federal Reserve Agent being fixed on the uniform basis fixed for the same position at all Federal Reserve Banks, i.e., the same amount as the aggregate of the fees payable during the same period to any other d ire c to r for attendance corresponding to his at meetings of the board of directors, executive committee, and other committees of the board of directors.

Action with respect to the appoint-ment of Mr. Grady was taken with the un-derstanding that no advice thereof would be sent to Mr. Grady or to the Federal Reserve Bank of San Francisco until au-thorized by Chairman Eccles after he has had an opportunity to talk with Mr. Grady and President Day regarding the matter.

C. V. Newman, President of Calavo Growers of California, Los Angeles, California, v/as reappointed a director of the Los Angeles Branch of the Federal Reserve Bank of San Francisco for a term of two years beginning January 1, 1942.

George T. Gerlinger, President of the Willamette Valley Lumber Canpany, Portland, Oregon, was reappointed a director of the Portland Branch of the Federal Reserve Bank of San Francisco for a term of two years beginning January 1, 1942.

Herbert S. Auerbach, President of Auerbach Company, Salt Lake City, Utah, was reappointed a director of the Salt Lake City Branch of the Federal Reserve Bank of San Francisco for a term of two years beginning January 1, 1942.

Charles F. Larrabee, Vice President of Pacific American Fisheries, Inc., Bellingham, Washington, was reappointed a director of the Seattle Branch of the Federal Reserve Bank of San Francisco for a term of two year8 beginning January 1, 1942.

It was agreed that letters thanking them for their services should be sent to Messrs. Curtiss, Thomas, Merritt, and Force,


1785

i2/l6/A1

Class C directors of the Federal Reserve Banks of Boston, Kansas City, Dallas, and San Francisco, respectively, all of whom the Board, for various reasons, had decided not to reappoint, and to Messrs. Sutphin,Wherrett, Hill, and Campbell, directors of the Cincinnati, Pittsburgh, Louisville, and Omaha Branches, respectively, v/ho had served six or more years.

It was also agreed that the letters last referred to above should be sent promptly and that when sufficient time had elapsed for their receipt by the ad-dressees, telegraphic advice of the ap-pointments made by the Board at this meeting (with the exception of advice relating to the appointment of Messrs.Leland and Grady) should be sent to the appointees and to the respective Federal Reserve Banks with the request that no information regarding the appointments be given to the press prior to the release in Washington of the usual statement, ad-vice of which would be sent to the Banks later.

It was further agreed that, in the absence of some unforeseen development, the Board's statement would be released to the press on December 31, 1941, for publication in the morning papers of January 2, 1942.

Mr. McKee stated that, in accordance with the action taken at the meeting of the Board on December 13, 1941, he and Mr. Ifyatt called 00 Mr. Towisend, Acting Assistant Solicitor General in the Department of Justice, following which a conference was had this morning with the Conc-essioners of the District of Columbia for the purpose of exploring with them the possibility of finding some way in which the proposed tax sale

-10-

the Board's building could be avoided, that this afternoon Mr. Wyatt


1786

12/I6/U U ~

received from Mr. Keech, Corporation Counsel for the District of Col-umbia, a draft of suggested letter to be addressed by the Board to the District Commissioners, which he had prepared, and that Mr. Keech had stated that if the letter were sent by the Board he would reconrnend to the District Commissioners that they accede to the request contained therein that the Commissioners withdraw the Board's property from the lis t of property to be sold on January 6, 1942, for nonpayment of taxes, with the understanding that at the appropriate time steps would be taken vdth all reasonable dispatch to determine the matter. The draft of letter was read and certain perfecting changes were suggested.

It v/as agreed unanimously that the letter should be revised and that, upon approval of the revision by Messrs.Ransom and McKee, it would be submitted to Messrs. Keech and Townsend and, if satisfactory to them, would be trans-mitted to the District Commissioners over Mr. Morrill's signature.

At this point Messrs. Wyatt and Vest left the meeting, and*

the action stated with respect to each of the matters hereinafter re-ferred to was then taken by the Board:

The minutes of the meeting of the Board of Governors of the Federal Reserve System held on December 15, 1941, were approved unani-mously.

Memorandum dated December 12, 1941, from Mr. Nelson, Assist- *nt Secretary, recommending that Robert Sinclair be appointed as a porter in the Building Operation and Maintenance Section of the


1787

12/16M - 12 -

Secretary's Office, with salary at the rate of $1,080 per annum, effec-tive as of the date upon which he enters upon the performance of his duties after having passed satisfactorily the usual physical examination

Approved unanimously.Memorandum dated December 9, 1941, from Mr. Morrill, Secretary,

recommending that the following increases in salaries of employees in the Secretary's Office be approved, effective as of December 16, 1941:

Name

Service F u n c t i o n s

Bloch, S t a n l e y J .

Baker, Sebum E.

Kirkland, Rexford M.

Kay, George R.

Peregory, Walter L.Crump, Allison M.Steinacker, William A

Kidwell, Warren, Jr.Power, Reginald C.

fatkins, F. L.Johnson, Claiborne Jones, Robert H.

DesignationSalary Increase From To

Senior Operator, Dup-$2,200licating Devices $2,000

Senior Operator, Dup-licating Devices 2,000 2,200Senior Operator, Dup-licating Devices 2,000 2,200Operator, Duplicating

1,860Devices 1,740Operator, Duplicating

1,860Devices 1,740Operator, Duplicating 1,800Devices 1,740Operator, Duplicating 1,800Devices 1,740Junior Operator, Dup- 1,440licating Devices 1,320Junior Operator, Dup- 1,560licating Devices 1,500Senior Mail Clerk 1,740 1,860Mail Clerk 1,440 1,560Junior Mail Clerk 1,320 1,380

ieraMurphy, R o y a l J .

Dampley, C. B.Tucker, Robert L. Glotfelty, Joseph T.,Weeks, E. J., Sr*Hyde, William

Jr

Marble MaintainerPainterPlumberOperating EngineerPorterPorter

1,9201,8601,8001,9201,0801,140

2,040 1,980 1,860 1,980 1,200 1,200

Approved unanimously.


1788

Memorandum dated December 8, 1941, from Mr. Goldenweiser, D irector of the Division of Research and Statistics, submitting the resignation of Nathaniel Weyl as a Junior Economist in that Division, to become effective as of the close of business on November 30, 1941, and recommending that the resignation be accepted as of that date*

The resignation was accepted.Telegram to Mr. Clark, Vice President of the Federal Reserve

Bank of Atlanta, reading as follows:"In accordance with the request contained in your

letter of December 9, the Board approves the appointment of John Lewis Moore, Jr. as an assistant examiner for the Federal Reserve Bank of Atlanta.

"If the appointment is not made effective on Jan-uary 1, 1942 as planned, please advise us."

Approved unanimously.Letter to Mr. Gidney, Vice President of the Federal Reserve

Bank of New York, reading as follows:"The report of examination of the Central Home

Trust Company, Elizabeth, New Jersey, as of October 4,1941, reflects a most disappointing and disturbing manage-ment situation, a situation which should not be tolerated and which is inconsistent with the situation as described in your letter of March 12 in reply to the Board1 s letterof February 25, 1941-

"Your memorandum of December 3 regarding the discus-sions with President Leavitt and Vice President Wratten with respect to the recent report of examination has been read with interest. It is noted, however, that although the recent report of examination was reviewed in consid-erable detail with the two officers of the trust company, the memorandum contains no reference to the management sit-uation which presents one of the most serious problems of the bank, if not the most serious.

U f l iM - 1 3 "


1789

11 Frankly, the Board cannot tinderstand why the super-visory authorities should permit the return of President Leavitt to power in the bank in the light of his past record in the administration of the banks affairs and particularly in view of the understanding reached in con-nection with the suspension last year of the proceedings for the termination of insurance.

"Since the report of examination as of October 4,1941, clearly indicates that Vice President Wratten has not taken over the management of the bank as was contem-plated when the proceedings for termination of insurance were suspended, but that President Leavitt remains the dominant figure in the institution, it is requested that you advise the Board promptly as to the Reserve Banks position on the question of whether the R.F.C. should use its voting powers at the forthcoming stockholders meeting to eliminate Mr. Leavitt as an officer of the bank and, if possible under the voting arrangements, also as a director.


Letter to Mr. Hitt, First Vice President of the Federal Reserve

Bank of St. Louis, reading as follows:"This is in reply to your letter of November 22 re-

garding the State Bank of Farina, Farina, Illinois, which was admitted to membership last March.

"According to your letter the Building and Loan As-sociation of Farina occupies space in the banks quarters and the cashier of the bank, who is also secretary of the building and loan association, transacts the business of the association at any of the three windows of the bank.This situation, you state, existed at the time of the ex-amination for membership in January but was not disclosed to the examiners. When the matter was brought up in the recent discussion, the cashier suggested that the business of the building and loan association might be confined to a separate space designated by appropriate sign and you inquire whether the suggested plan would be acceptable to the Board.

"As a general principle, the Board does not look with favor upon a banks sharing its quarters with another fi-nancial institution. The connection between the institutions

12/16/41 -1 4 -


1790

"might not be understood by the public and in the event of difficulties of one the situation might result in serious embarrassment to the other. In certain cases, therefore, particularly in the case of larger institu-tions, the Board has prescribed conditions of membership requiring, or giving the Board the right to require within a reasonable period of time, the removal from the banking quarters of any other association or business. However, in the case of a small country bank where an officer handles the business of a building and loan association on the side, such removal may not be always practicable.

"Had the situation at Farina been known at the time the banks application for membership was considered by the Board, a condition of membership regarding the re-moval of the building and loan association from the bank-ing quarters would not have been prescribed in the ab-sence of any unusual factors indicating the desirability of such a condition in the particular circumstances.The Board, therefore, will raise no objection to the proposed plan as suggested by the cashier of the bank."

Approved unanimously.Telegram to Mr. Fleming, President of the Federal Reserve Bank

of Cleveland, reading as follows:"Your wire December 11 re withdrawal of savings de-

posits to purchase defense bonds which was discussed at meeting on December 12. Bnphasis of defense bond cam-paign is on voluntary character of investment and upon use for this purpose of funds currently available. There-fore, circumstances do not constitute an emergency within meaning of section 4(d) of regulation Q and to amend reg-ulation so as to permit immediate withdrawal to purchase defense bonds might result in misunderstanding as to Gov-ernment* s need of funds from this source."

Approved unanimously, together with a similar telegram to Mr. Swanson, Vice President of the Federal Reserve Bank of Minneapolis.

Telegram to Mr. Knoke, Vice President of the Federal Reserve

12/14/41 -1 5 -* i

^ of New York, reading as follows:


1791

"As requested in your letter of December 13 Board has increased to a total of $250,000,000 the authority given to your bank in the Board's letter to you of August 9 1937 to purchase United States Government securities for the account of foreign central banks."


12/16/ 41 16

Thereupon the meeting adjourned.

h r ) o ^ 4 ____________________________Secretary.


19411216

Documents

Transcript of 19411216