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BDARD DF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. March 1 8 , 1949 ADDRESS OFFICIAL TO T H E CORRESPONDENCE BOARD Dear C h i e f : When I was i n Los Angeles l a s t week I met w i t h a number o f bankers, i n c l u d i n g Morgan C r a f t , t h i s y e a r ! s P r e s i d e n t o f t h e C a l i f o r n i a Bankers A s s o c i a t i o n . As our meeting was breaking u p , Morgan g o t me o f f t o one s i d e and s a i d t h a t he had i n v i t e d you t o address t h e C a l i f o r n i a Bankers A s s o c i a t i o n a t t h e i r annual meeting t h i s y e a r , b u t t h a t t o date he had had no r e p l y from you. Morgan t o l d me t h a t he d i d n ! t l i k e t o be a pest and t o c o n t i n u e t o bombard y o u w i t h l e t t e r s about t h e i n v i t a t i o n , b u t he was v e r y anxious t o know as soon as p o s s i b l e whether you i n t e n d t o accept t h e i n v i t a t i o n . He s t r e s s e d t h e p o i n t t h a t he was most anxious t o see you accept, as a r e many w i t h i n t h e A s s o c i a t i o n . I should l i k e t o express my own hope t h a t you w i l l accept t h i s i n v i t a t i o n , your schedule p e r m i t t i n g , because your appearance o u t here b e f o r e t h a t A s s o c i a t i o n a t t h i s t i m e would have a tremendous p s y c h o l o g i c a l a f f e c t upon t h e bankers o f t h i s area. God knows we need t h e i r 100 p e r cent backing a t t h i s t i m e . The C o m p t r o l l e r s d e c i s i o n c e r t a i n l y s t r u c k a new l o w i n i n t e r - a g e n c y c o o p e r a t i o n , d i d n ! t i t ? When I t h i n k o f a l l t h e t i m e s , f o r about a year now, when we met w i t h Delano o r h i s r e p r e s e n t a t i v e s and a l m o s t , b u t never q u i t e , g o t d e f i n i t e assurance t h a t h i s men would be made a v a i l a b l e , i t makes me a c t u a l l y p i t y him f o r what he i s * I f t h e r e were ever needed some t e l l i n g grounds f o r c o n s o l i d a t i n g t h e f e d e r a l banking agencies t h e Transamerica case would p r o v i d e a l l t h a t were necess a r y . However, i t i s a c o n d i t i o n and n o t a t h e o r y which c o n f r o n t s us and I am moving t o f i l l i n t h e gaps by o t h e r means. We s h a l l make outs - 2 - A l l t h e i n d i c a t i o n s a r e t h a t t h e G i a n n i n i s are planning a spectacular Fourth of J u l y celebration f o r home consumption/ I t has come t o me f r o m v a r i o u s p a r t s o f t h e s t a t e t h a t i m p o r t a n t businessmen are b e i n g i m p o r t u n e d t o appear and t e l l how much t h e G i a n n i n s have done f o r man and c o u n t r y . The S o u t h e r n f i l i b u s t e r w i l l be a t o y steam engine by comparison^ 8th# I am l o o k i n g f o r w a r d t o seeing you h e r e on t h e With k i n d personal regards, I remain, Sincerely yours, 0 P.S # I have j u s t been handed a copy o f t h e Transamerica Annual Report f o r 1948 • I suggest you read t h e p a r t e n t i t l e d "Reserve Board I s s u e " commencing on Page 10 t h e r e o f * Copy enclosed^ Governor M. S. E c c l e s , Board o f Governors o f t h e F e d e r a l Reserve System, Y/ashington 25, D. C# March 1949 Dear Leonard: 1 have read « i t n i n t e r e s t your l e t t e r o f March 18, and t h a t p a r t of the Transar,erica Annual Report f o r 1948 e n t i t l e d *iieserve Board I s s u e . " I n o t e what you 6ay about seeing Morgan C r a f t i n Loe Angeles. I am enclosing copy o f a l e t t e r which I sent t o Morgan j u s t before r e c e i v i n g your l e t t e r . You w i l l f i n d i t s e l f explanatory. I can iaagine how you f e e l about t h e C o m p t r o l l e r ' s d e c i s i o n , but i t should have been no s u r p r i s e t o you. I t i s t h e k i n d o f cooperation which I have always expected, i n s p i t e o f t h e e f f o r t s of the new Chairman. L a r r y has been up i n t h e Northeast f o r a week, and w i l l not be back i n the o f f i c e u n t i l next Monday. Mr. McOabe l e f t a week ago l a s t Monday and i s not expected beck u n t i l A p r i l 5. I am l e a v i n g here the saddle o f next week, stopping i n S t . Louis and Kansas C i t y enroute t o ban i r a n c i s c o , *here I expect t o spend a t l e a s t a few days, as you Know 1 am specking t o t h e Commonwealth Club on F r i d a y , t n e e i g h t h . Things around t h e tfoard are r a t h e r q u i e t . The weather has been s p r i n g l i k e t h e l a s t day o r t » o so I ajs l o o k i n g forward t o a weekend o f g o l f • I w i l l hope t o see you w h i l e I am i n San Francisco. w i t h kindest personal regards. S i n c e r e l y yours, VLXira Xnclosure. M. 6 . X c c l e s . M r . Leonard Townaend, c / o Mr. Agnew, F e d e r a l Meserve bank o f San * r a n c i s c o , San F r a n c i s c o , C a l i f o r n i a *
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