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CABLE ADDRESS - B A M E R IC A L 8 A N F R A N C IS C O H E A D Q U A R T E R S A . P . GI ANNI NI S A N F R A N C IS C O . C A L IF O R N IA C H A IR M A N O F T H E B O A R D O F D IR E C T O R S July 18, 1936 Mr. Lawrence Clayton, Assistant to the Chairman, Board of Governors, Federal Reserve System, Washington, D. C. Dear Mr. Clayton: It occurs to me that the suggestion in the enclosed letter might be carried out, if you and your Chief think it would be advisable. Needless to say, we stand ready to co operate with the Administration in any way that we can, and at your convenience, I should be glad to have your reaction to this idea and any sug gestions you may wish to make. My kindest regards to you Cordially yours, COPY BANK OF AMERICA LOS ANGELES MAIN OFFICE July 16, 1936 Mr. A, P. Giannini Chairman of the Board of Directors Bank of America N.T.& S.A. San Francisco, California Dear A, P. After a preliminary chat with President Mario, .1 am writing this to you and sending a copy to him. No other copies are being made of the letter. From all parts of the country we hear bankers squawking about the difficulty of making ends meet in these days of excess reserves. They are placing the blame squarely upon the present Administration in Washington. The complaining bankers, to my own knowledge, include large numbers of former Democratic bankers of the South. Undoubtedly these opinions will be voiced very freely by speakers at the September Convention of the A.B.A. in San Francisco, Coming as this does, almost on the eve of the general election, is it not possible that such expressions will reach the depositors of the respective banks throughout the country and thus influence many votes. I am wondering whether such statements could be contraverted or offset to a degree if some one would be accorded a prominent place on the A.B.A. program who would make an address upon a topic something like one of the following: How Banks Can Be Made Profitable in 1956 Making Profits For Your Stockholders in 1956 Profits in Spite of Excess Reserves in 1956 We know that some banks, notably our own, have not been satisfied to mark time or march without making progress and th^t they are fairly on the way of settling the problem of excess reserves by utilizing them in a safe and sane way. A. P. Giannini July 16, 1936 -2 - If some one of recognized ability would delve into this a bit and would ascertain why some banks - our own and I believe the Eccles Group and others (George Eccles told me a year ago they were making more money than at any time in their history) are moving steadily forward in spite of what New York bankers are saying; then, if such facts and figures could be released and be given the proper publicity at San Francisco, some of the prevailing bankers1 prejudice against the present Administration at Washington might be dissipated. Howard Whipple as president of the California Bankers Association could do it convincingly if you could sell him on the idea that this would be a real contribution to the bankers of America. I am wondering whether Tom Smith would use such informa tion as a keynote for his administration. Tom will be more in the limelight than Orval Adams, and Tom’s pronouncement therefore would carry more weight as his position would be one of greater prestige. There has been a change In the times even though bankers choose to close their eyes to it. Banking has changed during the last four years and, in fact, has shown a continuous change during the past one hundred years, as is shown conclusively in the much distributed booklet put out by Young & Ottley, Inc. entitled "Merchants of Debt.” If bankers continue to ignore the trend of the times, they might find that once again, as in the Banking Acts of 1933 and 1935, that the Government may have to take the initiative in regard to changes in banking laws. if these suggestions do not have any appeal to you, I know you have a nice big wastepaper basket available. Best regards. Very sincerely, (s) Pete July £0, 1956 Hr. A, P. Gtarmini Bank of America 1 Powell Street San Francisco, California Dear Mr. Giannini: Thanks for yours of July 16th enclosing clippings from the San Francisco papers following Mr. Stewart*s appointment. Meanwhile I am in re ceipt of your letter of July 18th enclosing a let ter to you from the Los Angeles main office signed "Pete*. lour suggestion is a good one and we will see what can be done in that direction* I have kept a copy of tiie letter signed BPete* and I am returning the original to you. With kindest regards, I am Tours sincerely, Lawrence Clayton Assistant to the Chairman enclosure LC/fgr
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