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G. L . M E R R I C K Attorney-at-Law July 19-1943. Mr* M a r r i n e r C • Eocles, Chairman, Federal fieserve Board, Washington, D* C# Dear S i r ; I t was suggested by one having considerable knowledge of the matter t h a t some of t h e "mystery" surrounding t h e Bank of America N a t i o n a l Trust and Savings Association would be c l e a r e d by f i n d i n g out why t h e Bank d i d not go i n t o several S t a t e s , one of which was Utah. As a Utah Banker and t h e heed of t h e Federal Reserve i t i s e n t i r e l y possible t h a t you may not only know but may be w i l l i n g t o s t a t e the reason* I f not w i l l i n g t h e c i t i zens can only conclude t h a t i t i s of such a nature t h a t you dare not disclose i t . However a N a t i o n a l Bank should operate i n the open, i f any organisation should* Shall I take i t t h a t a refusal to reply i n d i o a t e s t h a t t h e r e i s something"rotten i n Denmark" • 816 Broekman B]dg* t Los Angeles-C&lif* A " Youra 0 OFFICES O F RIAL S SINESS AUDITS FINANCE MANAGEMENT RESEARCH SYSTEMS G.L.MEERIGK A C C O U N T A N T S AND" TAX ACCOUNTING ENGINEERS SERVICE LOS A N G E L E S Mr. M a r r i n e r C. Eccles, Chairman, Federal Reserve Board, Washington, D. C. Sir: I am i n r e c e i p t o f year r a t h e r amusing l e t t e r i n r e p l y to my simple query o f w Why the Bank o f America If. T # & S. A . d i d not go i n t o Utah w . You,*s you say could ignore the l e t t e r o r query e n t i r e l y o r could evade i t under the pretense you d i d . Anything so as not t o answer. The t i p , as one might say, was given by a person i n high p o s i t i o n and one f a m i l i a r w i t h the , f i n s i d e * o f the Bank and TransAmerica. We were simply f o l l o w i n g up the w t i p H . The e l e c t e d or appointed o f f i c i a l i n a government "by the people and f o r the people ( see Heed Smoot) i s a f t e r a l l the servant of the people as long as he remains on the peoplds p a y r o l l . I f one wants^any i n f o r m a t i o n he n a t u r a l l y goes t o such persons or sources where the i n f o r m a t i o n d e s i r e d can "be found. As a Utah banker ( one o f the States mentioned, the other i s Idaho) you presumably would be i n touch and have a knowledge o f such matters - Bankers u s u a l l y know what i s going on i n banking c i r c l e s - ; i t i s also l i k e l y t h a t the Bank o f America or TransAmerica made an e f f o r t t o go i n t o these S t a t e s . The usual e n t r y i s by the exchange o f stock w i t h a "frozen 11 Bank. There were no doubt ^frozen w Banks i n Utah and Idaho. As head of the Federal Beserve you, one would assume, be f a m i l i a r w i t h a l l the various r a m i f i c a t i o n s o f the Banks o f the Countfy, p a r t i c u l a r l y the Bank o f America which came i n t o the lime l i g h t by the a c t i o n of the S.E.C. You Ho doubt have read the SEC releases on TransAmerica and the Bank of America, and are f a m i l i a r w i t h the proceedings i n the Time Trust matter. However as you say you know nothing about the m a t t e r , even though i t were possibly the most i n t e r e s t i n g wbankkng * development i n the Country from many angles. I f you w i l l take the C a p i t a l Stock $ 50,G00 t 000 Sur* plus $ 3^,100,000 and Undivided P r o f i t s $ 20,92H,112.28 as shown on the statement of c o n d i t i o n as of December 31*1936 ( the year the SEC went over i t ) . - The SE6 claims the Undivided P r o f i t s o f $ 20, m i l l i o n were w r i t e ups not e a r n i n g s . - and reduce them by the SEC f i n d i n g s a f f e c t i n g t h a t year 1936 you have an i n t e r e s t i n g c o n d i t i o n indeed. At l e a s t i t should be i n t e r e s t i n g t o the Federal Beserve Board* The statement o f c o n d i t i o n as o f December 31-19^2 h a r d l y looks alay b e t t e r outside o f the l i q u i d i t y e s t a b l i s h e d by the peoples funds o f $ 30 m i l l i o n given TransAmerica f o r P r e f e r r e d Stock. Sorry t o have bothered you, A l i t t l e thought and much acquaintance w i t h Washington and i t s ways should have t o l d me t h a t tibe,-persons appointed t o high p o s i t i o n s are those knowing a b s o l u t e l y n g J ^ i ^ ^ j ^ m the j o b . . Li -25 July 27, 19U3. Mr. G. L. Merrick, 816 Brockman Building, Los Angeles, California. Dear Mr. Merrick: Tour letter to me of July 19 is so i n sulting by implication that i t does not merit a reply. Lest jay silence, however, be used by you as a pretext for imputing some falsity to me, I desire to say that I have no knowledge whatever and no reason to have any information as to why the bank to which you refer "did not go into several States, one of which was Utah". Such a question, i f i t is honestly intended, should be directed to those who head that institution; certainly not to ne, for I have no connection, direct or indirect, or in any way whatsoever, with i t . Very truly yours, M. S. Eccles, Chairman.