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THE WHITE HOUSE WASHINGTON January 30, 1936. MEMORANDUM FOR GOVERNOR EOCLES Thank you for the enclosed about Mr. Manuel, Nevertheless, there is a situation in the Northwest which has been very disturbing to practically all the smaller bankers in the smaller communities, Mr. Peyton is strongly opposed by them and I am inclined to think that they have a pretty good case running back a good many years especially because many of them were ruined by the chain banks started in that territory. I wish you would try to find someone who would not antagonize the smaller bankers as much as Mr. Peyton does and would. . D, R. £3 % • dear Mx* d la & utoor^ndUK with roi'erence to Urm H&nuul about for Gk&lrma of the Tho Honor&ble ?r©©id©at of White Hou0«« January 28, 1956* MEMORANDUM FOR THE PRLL1D&1T: By note of January 25 th you to you about Ralph W. Manuel, President National Benk of Mine&polis, to replace man of the Board of the Federal Reserve requested ae to ipfk of the Marquette John Peyton as Chair* Bank at Minneapolis* I had occasion to have Mr. Manuel1£ record thoroughly checked because he was a candidate for appointment to the Board of Governors of the Federal Reserve System, and no one exerted himself more energetically th&n he did in en effort to secure an appointment# He does not have high standing as a banker in the Northwest* Bit b&nk it ft small one and has two affiliates whose policies he dominated which had to be reorganized after the banking holiday on & basis of B0% w&iver of deposits and a 1QQ$ stock agses&iaent* According to the bank examiners1 reports "the files indicate that the bond accounts in the affiliated banks, in which the major losses were incurred, were supervised by Bank Shares Corporation of whiah Mr* Manuel « M President.n For the practical job of running • Federal Reserve Bank, John Peyton is the best man we have in the entire Federal Reserve System* He has cooperated more completely and more intelligently with the Board here than &jny of the other reserve b&nk chairmen. It is true that the independent bankers in his territory have been vigorously opposed to him* To my aind, these bankers are presumptuous, to say the least, for they are not even members of the Federal Reserve System and never have been, yet they undertake to advise && to how the System should be managed and who should manage it. Personally, I feel it would be a very serious blow to the Federal Reserve Bank of Minneapolis and to the entire Federal Reserve System to replace a conspicuously capable executive like Peyton because of opposition from a Senator who was formerly the State Bank Commissioner and appears to be biased in favor of the little state banks which, as you know, were la the worst difficulties during the depression. THE WHITE HOUSE WASHINGTON January 25, 1936. MEMORANDUM FOR GOVERNOR EOOLES Will you speak to me about this? F. D. R. THE WHITE HOUSE WASHINGTON Y^x i m^ .... '-*>&
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