View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.


September 10, 1948

Dear Marriner:
Enclosed herewith, vrlth our "best wishes, is a copy of
the "Annual Report of the Federal Deposit Insurance Corporation
for the Year Ended December 31, 1947"•
Incidentally, although 1947 was another year
expansion in "bank lending, we are happy to report that
period there was not a dollars loss to a depositor or
receivership of an insured bank, vrhich evidences in no
terms the confidence the public reposes in the FDIC«

of great
in that
a single

In addition to the foregoing, we are happy to report
that only recently we repaid the United States Treasury the two
hundred and eighty-nine million dollars originally advanced in
order to capitalize this Corporation, thereby eliminating, insofar as this organization is concerned, pjiy governmental subsidy
to the dual system of banking*
Thanking you for any suggestions and comments you care
to make regarding the matters covered by the enclosed report,
furthermore, appreciating your fine cooperation at all tines, I
am, believe me,
Cordially and sincerely,

Honorable Marriner S. Eccles
Board of Governors
Federal Reserve System
Washington 25, D. C.

October 7, 1948.

Mr. Mi*ple T. H^ri,
Federal Depo6it insurance Corporation,


nn <c5, D. c .

Dear Maple:
Your l e t t e r of SeptemDer 10, »ith a copy of trie Annual
Kepoit of trie Federal Deposit Insurance Corporation, wo.6 received
while I was on a western t r i p . Upon m return i bad so many .natters
awaiting m attention th<*t i have not nad <n opportunity t o send you
an earlier acknowledgment.
Naturally I share your gratification that the Corporation
has repaid to the Treasury the <JK89 million dollars originally subscribed for capital of the Corporation, although I aight nave sojae
reservations as to whether tnis entirely eliminates "any governmental
subsidy to the dual system of banking" even in so far as .your
organization is concerned.
May i also oiier the coiu^ent that % in the federal Reserve
System had a snare in cringing about the retirement of tnis c a p i t d ,
of wnich $139 million was originally furnished by the federal heaerve
Barnes and upon which tney have received no return. I t M upon iay
s u r e s t ion, with the concurrence of the Boo.rd of uovemors, that the
iiudget bureau proposed and the President recoai.;.ended in January
that Congress authorize tne Corporation not only to retire the
million of capital furnished fej the Federal reserve System but to
maKe the payment to the Treasury instead of to the Federal tie serve
Banks. This »as in addition to tne proposed retirement of capital
furriished by the Treasury. Tne comoined steps helped at tnat time to
balance the bud5et.
«%ith uest wisnes, 1 am,
Very sincerely