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May 17, Mr, ueorge L. Harrison, Governor, Feaerai iieservfc Bank of New York, How York, New York. Dear Governor Harrisons As you correctly surais ss reports ;(f i$" testimony before the Senate Banki% ^nu Curre th incomplete and incorrect. I was unexpectedly . nation with reft. Uie effect of putting out "the Patraau roney*. My reply haa to be extemporaneous. Had I been ore pared for the question no aoubt I could have I . jwever, I did not cover the subject as badly as prag rts would indicate, ana I aid unaertake t- bring out the very important point which you mentioned in your letter, tliat the Patman hill would add roughly an equivalent amount to excess reserves• For your inf ^rmatioii, I enclose a copy . hie transcript of th&t part of 'y testimony in this conriL^ct which you will see that I undertook i. to contsast the different effects from the issue of currency as provided in the Patman bill ana the raising of funds through Go* d»$ emphasizing th&t in the f jrir:©r case there w >uld be a direct t dition to excess x*eaerves, while in the latter case there be a reduction. I do not ne , tell you that I agree entirely with y. about those provision* in the Patman bill relating to restrict. )n the volume of currency, including Federal Reserve notes, in case the price level should exceed the 1921-1929 average. They are, aa you emphasise, another vital reason for opposing this Lsure. Sincerely your», H. S. Kccles, Governor, Enclosure.
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