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"oprice s ARCADE



December 2, 1936

Honorable Marriner S. Eccles
Board of Governors of the Federal Reserve System
Washington, D. C.
Dear Mr, Chairman:
I am taking the liberty of writing you about Mr. J. K. Vardeman who, I understand, is being considered for appointment to your Board.
I have known Mr, Vardeman for a number of years and have a very high regard
for him. I have learned of his activity as a practicing lawyer in Jackson,
Mississippi, through my contacts there in connection with our properties in
Jackson, of which you know. I knew of his activity here when he was in the
investment business and, of course, knew him during the time of his connection with the First National Bank.
I have, however, been more closely familiar with Mr. Vardeman!s work since
he became connected with the Federal Reserve Bank and Reconstruction Finance
Corporation here. In connection with his work in organizing the Direct Loan
Division, I had rather close contact with him through the St. Louis Finance
Company, the organization of which he was largely responsible for. I served
on the board of directors of that company, which, I presume you know, was
designed to further the effort then being made to give aid to crippled industries through the Reconstruction Finance Corporation. I was very much
impressed at that time by Mr. Vardeman1s aggressiveness in trying to further
this difficult and much needed activity for the promotion of industrial recovery. It was through his urging of the need and possible accomplishment
of good results that I secured financial aid for the project from the Industrial Club of which I was then president.
Neither the early direct loan plan of the Federal Reserve Bank nor the plan
for loans through St. Louis Finance and R.F.C. accomplished much except in
a preparatory way. But the manner in which the effort was handled gave striking evidence of Mr, Vardeman1s comprehensive understanding of the problems of
industry. You know, of course, that my point of view of industry's financial
problems is that of a business man rather than of a banker. I was impressed
by the business-man tendency of Mr. Vardeman1s attitude.
I do not pretend to be expert in judgment as to the qualifications of members
of your Board. It is my impression, however, that it is considered desirable
to maintain some degree of balance between the banker and business-man point
of view of members. Something can, of course, be accomplished in that direction by having on the Board some bankers and some business men. It is my
conviction, however, that a sounder balance can be accomplished by having on
the Board men who, like yourself, have the combined experience, and consequently balanced point of view, of both the banker and the business man. I believe

that Mr. Vardeman very distinctly has that balanced point of view.


Mr. Marriner S. Eccles


December 2, 1936

It follows, of course, that such point of view is provocative of a liberal tendency as against the conservative or reactionary attitude which characterizes
so many men whose experience has been wholly or chiefly in banking. That comment is not a criticism of bankers. It is only recognition of the attitude
which their experience tends naturally—we may say necessarily—to develop.
I am quite sure you would find in Mr. Vardeman a liberal tendency not unlike
your own and springing from similar causes. While writing you thus I want, at
the same time, to assure you that I do not at all ask favorable consideration
of Mr. Vardeman as a personal matter. It has been my fixed policy not to ask
personal favor of my friends who are in official position. I do sometimes indulge the assumption that they might find useful my frankly expressed opinion
about men or measures of which I have been in position to gain reliable information or judgment. It is on that basis that I am writing you on this occasion.
I hoped that you might pass through St. Louis on your trip west last summer
and that I might see you. I regret that it did not so happen.
Hoping that you are enjoying your usual good health, and with very best wishes,
I am
Most sincerely yours,



December 7, 19S6.

Mr. William T, Sardin,
Pet Milk Coapany,
Arcade Building,
Saint Louie, Missouri.
Dear Mr, Nardin:
X have your letter of December 2d with reference to Mr.
Vardeiaen and I appreciate your interest and the trouble you have
taken to advise me 50 thoroughly in regard to him. I do not know
of anyone in whose judgment I would have greater confidence than
In your own and what you say about Efr* VardetB&n's qualifications
would certainly weigh very strongly *ith me in the event that I
should be consulted*
Confidentially, I think I should point out that Mr*
Vardeaan, in view of his background and experience, probably
would be considered to be a banker or at least a representative
of the financial field, and on that account the President night
have some hesitancy, irrespective of Mr* Vardera&n's excellent
qualifications, in considering him for the Board* As you will
recall, the law requires that in selecting members of the Board
"the President shall have due regard to a fair representation of
the financial, agricultural, industrial and commercial interests**
At present there are four of us on the Board who are considered to
be bankers or representatives of the financial cooaunitj. This is
a larger proportionate representation than ever existed before on
this Board. Accordingly, It might be that the President would prefer to draw upon some other field entirely outside of banking and
finance in an king an appointment to the regaining vacancy here*
Otherwise, of course, the Board sight be open to soae criticise
A S being too heavily weighted in one direction and on that account
aight not have the public support which a aore diversified Board,
representing aore broadly the various eleaents in our picture,
would be expected to have. I do not, of course, know whether these
considerations would govern in this instance, but X felt I should
ition the flatter to you for your own inforaation.
I recognise that the balanced point of view is a very desirable thing and needless to say, X agree with you thoroughly about
liberal versus reactionary viewpoints, assuming as X do that you are

Mr. William T. Hardin -


not using the adjective "liberal* as an epithet* Also, I appreciate the spirit in which you write and respect your feeling about
—ting; recoaaendationa,
I was sorry that I did not have the opportunity of
stopping off to see you during ay trip vest last suaaer. I will
likely be going west soaetiae in the spring and will plan definitely to stop over a day in St. Louis either on «y way going oat or
cosing b&ck* In the meantime, I hope sone occasion may make it
necessary for you to cose to Washington* X have not given up the
Idea of your taking the Chairmanship of the rmtmrvm bank at St.
Louis* and I hope to have a visit with you regarding that ea well
as about the affairs of the ailk companies and Matters generally.
With best wishes*
Sincerely yours,

IU S. Eccles,