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T he P laza Ba n k of S t .Louis T W E L V E THIRTY O L IV E S T R E E T S ain t L o u is J o h n R. Kir k ,J r . v ic e p r e s id e n t September 26, 1947 Hon. Marriner S. Eccles Chairman, Board of Governors Federal Reserve System Federal Reserve Building Washington, D. C. Dear Governor Eccles: While I have not recieved the full text of your comments for the National Association of Super visors of State Banks, this morning's papers carry enough to convince me that the speech was very timely. The great majority of the people in our Country seem to want to avoid the unpleasant facts of the present critical situation, and I am fear ful that our failure to face these facts is leading us into some tragic experiences. It is my firm conviction that the military in this Country, by placing their demands for funds on the basis of an appeal to patriotism, are able to talk the Congress out of unwarranted sums of the tax payers* money. Internally, we now have a great number of our people already in the grip of a depression, despite what statistics may show as to number of people employed and total payroll. Any family earning $150 a month, and required to spend & month to exist is actually suffering depression. Al though we do not have a large savings department in our small city bank, a study of the accounts being closed shows that more and more people are being forced to withdraw funds from these accounts, from time to time, to meet increased living costs. The report of the member banks in leading cities, for the period ending September 17, shows a $776,000,000 increase-in time deposits in the last year, but I $155 -1 - The Hon. Marriner S. Eccles P la za Bank o r St. Louis September 26, 1947 believe that if the general experience is simi lar to ours, it will be found that the total number of accounts has undergone a material decline in the same period. The press is continually beating the drums in the fight against Communism. It seems to have be come an obsession with the great majority of people in places of importance. Personally, I am not at all impressed with the manner in which Communism is being opposed in this Country. I think the best guaranty against the spread of Communism is the realization on the part of Congress and the people that we have nothing to fear as long as our economic structure can be maintained in such fashion that our people can be assured of steady work and the opportunity to acquire the necessities of life at reasonable prices. My basic reason for writing this letter was to applaud your courage and frankness, but as I have gone along I seem to have inserted some opinions of my own. I know that at times you must be discouraged when you contemplate the mountainous tasks which con front this Country, and I do hope that you will continue to give the leadership which we have be come accustomed to expect from you. John R. Kirk, Jr. JRK jSAM O c to b e r 1 3, 1947. D ear M r, K i r k : Your letter of September 26 commenting on my recent talk to the State Bank Supervisors was particularly interesting to me, I certainly agree with you that the best way to fight Communism is to be sure that our economic system functions in a way to assure steady work for our people, and the opportunity to acquire the necessities of life, I am most gratified by your kind references to my talk, a copy of which I am enclosing. Sincerely yours, M. S. Eccles, Chairman. Enclosure Mr. John R. Kirk, Jr., Vice President, The Plaza Bank of St. Louis, 1230 Olive Street, Saint Louis, Missouri. ET«ra
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