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A. P. G IA N N IN I October 14> 1938 C H A IR M A N O F T H E B O AR D O F D IR E C T O R S Honorable Lawrence Clayton Executive Assistant to Governor Federal Reserve Board Washington, D. C. Dear Mr. Claytons The Directors Committee of Nine is meet ing in San Francisco today for a final check up on the letter, exhibits, figures, etc. The letter will go forward by airmail tomorrow. The reason a copy is not being sent to you at the same time as it is sent to the Comptroller, is because the directors felt that perhaps Secretary Morgenthau and General Counsel Oliphant, who are now running the Comptroller's Office, would perhaps resent our doing so. However, I have instructed San Francisco to see that a copy is prepared, which will be delivered to you by our Washington attorney, Charles W. Collins, in about a week or so with the idea that same would be available to the Governor and other members of the Board for their perusal. Of course, after the Governor is through with it, I should like very much to have it sent to your chief examiner, Mr. Cagle, for his information and files. Warmest personal regards to you and Governor Eccles. A. F. Giannini Chairman of the Board October 15, 1938* a . p. g i a n n i n i C H A IR M A N O F T H E B O AR D O F D IR E C T O R S Personal Honorable Lawrence Clayton, Executive Assistant to Governor, Federal Reserve Board, Washington, D. C. Dear Mr. Claytons Congressman Ford, a member of the Banking and Currency Committee of the House of Representatives, just dropped in, and I had occasion to talk with him about the Patman Bill, which, as you know, provides for the Federal Reserve System being taken over by the Government. He volunteered that he is opposed to this Bill, and upon my asking him if he did not think the time had come for a merger of the F.D.I.C., F.R.S. and the Comp troller's Examining systems into one, he agreed that this should be done. He also agreed with me that the Federal Reserve System should be in full charge of all examina tions . I asked him if he would give me permission to so inform Governor Eccles, and he told me to go ahead and do so. I am passing this information on to you for what ever it may be worth. Warmest regards! Sincere!v vmrrs. October 19, 1958 PgRSOKII* Sr. A. P. Giannini Chairman of the Board Bank of America, I. T. & S. A. San Francisco, California Dear Mr* Gianninii This will acknowledge your brief letters of October 14 and 15 respectively and thank you for them. In your letter of October IS you referred to a discus sion you had with Congressman Ford of California respecting the Pataan bill and related natters, and particularly the question of a consolidation of the Federal bank supervisory agencies, at least insofar as the examining function is concerned• lou state that Congressman Ford agreed with you that the Federal Reserve System should be in full charge of all examinations. While this could only be interpreted as complimentary to the Federal Reserve System, ay Chief has espoused the consolidation program on the broad principle that there should not be overlapping, duplicat ing, and sometimes conflicting functions with reference to bank supervision and regulation exercised by several Federal agencies* Be feels that it is essential to the proper regulation of the banking structure of the country that there be one Federal agency in charge. As to what that agency shell be either in name or in per sonnel, whether one of the existing agencies or some other agency, he Is less concerned. The essential point is that there should be one agency with the necessary power and jurisdiction to properly carry out the responsibility which the public assumes rests now upon the combined agencies, and in particular upon the Board of Governors of the Federal Reserve System* While it would not be human for my Chief to be displeased by expressions of the kind contained in your letter, he rather feels that any campaign either within the Board itself or by its friends on the outside to prefer tills organisation over either of the others, is calculated to prejudice the general case for consolidation, which is much more important than the question which of the agencies is to absorb or be absorbed by the others. With warmest regards, I am lours sincefely, October 26, 1938. a .p .s ia n n in i C H A IR M A N O F T H E BO AR O O F D IR E C T O R S Hon. Lawrence Clayton, Chairman, Board of Governors, Federal Reserve System, Washington, D. C. Dear Mr. Clayton: This is to acknowledge your letter of October 19, the contents of which I have carefully noted. May I have your permission to show this letter to Congressman Ford? I will not do so until I hear from you again. Kindest personal regardsI Hovember 1, 1358. Mr. A. P. Giannini, Chairman of th© Board of Directors, Ban* of America, N. T. & S. A.f Los Angeles, California, Dear Mr. Giannini: Replying to yours of October 26, I see no reason why you should not show my letter of Octo ber 19 to Congressman Ford. In doing so, however, I trust that you will caution him that it~is for his own information, as it is not intended that the mat ters discussed therein be circulated even among our friends on the Hill. Sot that there is anything that we would have to apologize lor but that the matter is a delicate one and the Chairman's viewpoint might easily be misunderstood. In due course, if any legis lation develops, the Chairman's position will be fully and clearly set forth at the appropriate hearing. frith best wishes, I am Sincerely yours, Lawrence Clayton, Assistant to the Chairman. LC :lef
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