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February 16,1945.

Honorable Marriner S. Eccles,
Board of Governors of the Federal Reserve System,
Washington 25, D.C.
Dear Marriner:
In accordance with my usual custom I am enclosing herewith copy of my latest, though probably not my last, public


Vie will be most interested here in knowing -what final
decisions you arrived at in the matter of bank holding companies* It is a bit disturbing to us that measures undertaken to fit one situation which is out of hand should
embarrass another situation in this territory which has, so
far as we can see, no serious aspects to it.
As to the matter of legislation, I made a suggestion on
Monday that legislation for the divorcement of bank holding
companies and business holding might at least put the other
crowd on notice but not be the sort of legislation that either
the Treasury or the Bureau of the Budget would have any reason
to feel disturbed about. It would have to carry a proviso
freeing the operation of tax liability and it would, of course,
hit the small Boston situation the same way that it hits the
big California one.
On the other hand while it eliminates some future hazards
and is a perfectly logical proposal, it does not after all
stop the growth of your wild octopus or our domesticated squid.
Sincerely yours,



February 23,

Mr. Kalph E. Flanders, President,
Federal Beserve Bank of Boston,
Boston 6, Massachusetts.
Dear Balph:
This is to acknowledge your letter of February
16 enclosing a copy of your latest, though not your last,
public address, for which 1 thank you. It is certainly
a good Chamber of Commerce sales talk on Hew England and
almost convinces me that your section of the country compares favorably with sine!
With regard to bank holding company legislation,
your suggestion would, as you recognize, do no more than
half of the job that needs to be done. It would take the
holding coispanies out of other than the banking business,
but would not reach the monopoly aspects that are so
serious in the case of the wild octopus. The matter i«
still under discussion with the Treasury.

With best regards,
Sincerely yours.