19470401_Minutes.pdf

494

Minutes of actions taken by the Board of Governors of the

Federal Reserve System on Tuesday, April 1, 1947.

PRESENT: Mr. Eccles, ChairmanMr. DraperMr. EvansMr. VardamanMr. Clayton

Mr. Carpenter, SecretaryMr. Sherman, Assistant SecretaryMr. Morrill, Special AdviserMr. Thurston, Assistant to the Chairman

Minutes of actions taken by the Board of Governors of the

Federal Reserve System on March 31, 1947, were approved unanimously.

Memorandum dated March 27, 1947, from Mr. Bethea, Director

of the Division of Administrative Services, recommending the appoint-

ment of Mrs. Mary Rose Arnold as a stenographer in that Division with

basic salary at the rate of $2,394 per annum, effective as of the

date upon which she enters upon the performance of her duties after

having passed the usual physical examination. The memorandum also

stated that it was contemplated that Mrs. Arnold would become a

member of the Federal Reserve retirement system.

Approved unanimously.

Memorandum dated March 26, 1947, from Mr. Bethea, Director

of the Division of Administrative Services, recommending that the

basic annual salaries of the following employees in that Division

be increased, effective April 6, 1947:

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

495

4/1/47

Name

-2--

Designationqalary IncreaseFrom To

L. L. Ball Assistant Supervisor (Telegraph) f''3,271.80 ,13,397.20John Blash Maintenance Mechanic 3,021.00 5,146.40Sydnor C. Orndoff Painter 2,920.68 5,146.40Bernard W. Larson Operating Engineer 2,845.44 5,021.00Mary S. Seagle Telegraph Operator 2,694.96 2,770.20William Myers Cafeteria Helper 1,954.00 2,020.00Katie Gill Cafeteria Helper 1,888.00 1,954.00Anna M. Utz Charwoman 1,690.00 1,756.00


Letter to Mr. Douglas, Vice President of the Federal Reserve

Bank of New York, reading as follows:

"In accordance with the request contained in yourletter of Mnrch 27, 1947, the Board of Governors approves,for a further period of six months beginning April 16,

1947, the continuation of Mr. Thomas P. Howard in an un-

assigned position in the Cash and Collection Function,with the understanding that the salary paid him whileserving in this capacity will not exceed the salary he

would be eligible to receive in the position he occupied

at the time he was given such assignment."


Letter to Mr. Paul P. Allman, The Detroit Edison Employees

Credit Union, 2000 Second Avenue, 825 General Offices, Detroit 26,

Michigan, reading as follows:

"This refers to your letter of February 20, 1947regarding the possible application of Regulations Tand U to certain credit that your credit union proposes

to extend for purchasing stock of The Detroit Edison

Company. The stock is registered on the Detroit and

New York Stock Exchanges."The question whether a person is subject to

Regulation U depends upon the type of business con-

ducted. Loans such as you propose are rather unusual

for a credit union, but on the basis of the facts pre-


496

4/1/47 —3—

"sented, your credit union does not appear to be thetype of person to whom Regulation U, in its presentform, was intended to apply; and it is the view of theBoard that your credit union is not subject to thepresent Regulation. You will realize, of course, thata different factual situation or a change in the Regu-lation might lead to a different result.

"The question whether a person is subject toRegulation T depends upon whether the person is a'broker or dealer who transacts a business in securi-ties through the medium of a member' of a nationalsecurities exchan ,e. This is a cuestien of fact thatnecessarily depends upon the circumstances of theparticular case. If your credit union does not effectsecurities transactions and merely lends to borrowers,it is not subject to Regulation T. Howver, you men-tion two cases in which the credit union would purchasethe Detroit Edison stock through a broker, in one casein its own name and in the other case in the name ofthe borrower. It seems that such purchases might wellcause your credit union to fall, within the specifiedgroup. The Regulation applies generally to creditextended by persons who fall within the group, and itcontains no exemption for such transactions as youpropose.

"This Board at present has no other regulationsthat would apply to the transactions you describe.You will note, however, that under section 7(d) ofthe Securities Exchange Act of 1934 the Board mayprescribe regulations along the lines of RegulationU which can apply not only to banks, but to any otherpersons not subject to Regulation T. If persons notnow subject to these regulations should extend sub-stantial amounts of credit for purchasing registeredstocks, it naturally might become necessary to con-sider the issuance of regulations that would placesuch persons on a basis comparable with banks."


Telegram to the Presidents of all the Federal Reserve Banks

reading as follows:


497

4/1/47 -4-

"Referring our March 17 telegram, Presidents' ConferenceCommittee on Expense Accounting has completed its reviewof draft of revised Functional Expense Manual giving ef-fect (1) to approved recommendations of Committee onExpense Accounting and of Subcommittee of Presidents'Conference Committee on Fiscal Agency Operations andReimbursable Expenses; (2) to certain other suggestedchanges; and (3) to changes in Fiscal Agency reimburse-ments, including space maintenance costs and uncurrentTreasury issues expenses, as set forth in Mr. Young'sFebruary 28 letter to Treasury and approved by Treasuryeffective April 1, 1947. Manual is now being printedand should be available for distribution, together withForm F.R. 634, by April 15."


Letter to Mr. Parten, Chairman of the Federal Reserve Bank

of Dallas, reading as follows:

"At the completion of the examination of the Fed-eral Reserve Bank of Dallas, made as of January 27, 1947,by the Board's examiners, a copy of the report of exami-nation was left for your information and that of thedirectors. /1 copy was also left for President Gilbert.

"The Board will appreciate advice that the reporthas been considered by the board of directors. Anycomments you may care to offer regarding discussionswith respect to the examination, or as to action takenor to be taken as a result of the examination, willalso be appreciated.

"It will be appreciated also if, in the light ofrecent experiences, you will advise the Board as toany developments in the personnel situation of the Bank."

Approved unanimous

__airman.


Documents

19470401_Minutes.pdf