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Office Correspondence
1 ^
o overnor Ecoles
.
™
From
:'r. Wyattt General Co.uns_£

FEDERAL RESERVE
BOARD

'

Date

2., 1935,

Subject:_ Changes in
suggested by Recon^truct^AI

ttr« Await informs me that he and ." r. Coolidge had a conversation
yesterday afternoon with Governor Talley and other representatives of the
Reconstruction Finance Corporation on the above subject*

v~^

In addition to the sixteen suggestions which they d'scussed with
you, the Reconstruction Finance Corporation people had a seventeenth suggestion,
a copy of which is attached. Jt would amend the Clayton Act so as to forbid
interlocking relationships between member banks and common oarricrs, public
utilities, or organizations that lend money to, deal in, or hold the securities
of common carriers, cr public utilities* It was vigorously opposed by Messrs*
Await and Coolidge, and I am confident that you will be opposed to it,
Mr« Coolidge and . r. Await also opposed the Reconstruction Finance
Corporation's suggestions numbered 6, 7 and 13 which are discussed in my
memorandum of -.ay 23 on the above subject.
Mr« Coolirige took the position that suggestion numbered 16, which is
the 3ranch Banking Amendment, involves a political question; but Mr* Await
sa;c ~r. Jones has definitely mode up his mind to recommend the Branch Banking

idmen b«
Governor Talley did not indicate whether or not he will withdraw the
amendments opposed by you, Mr. A .alt and Mr* Coolidp-e.
Mr« Await did not know when Mr. Jones expects to testify but I understand that Dr« Miller and :>. James will appear before the Committee en Monday,
Owen D« Young on Tuesday and father Coughlin on Wednesday*




Respectfully.

..'alter ffi
General Counsel*

Suggestion No. 17.
Strike out the period and the quotation marks
on page 74, line 7, and add thereto the following:
"and no director, officer, employee or representative of any member bank of the Federil Reserve
System shall at the same time be a iirector, officer, member, employee or representative of any
common carrier or public utility or of any business organization or institution (other than a
mutual savings bank) that lends money to, or de»ls
in or holds the securities of, any common carrier
or public utility."
The purpose of this suggestion is to eliminate
Interlocking relationships between member banks and railroads and
other utilities and institutions which finance such utilities.