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P R I C E , PRESIDENT K. S . B A R B f f R . VICE PRESIDENT S E R E N A A . B A R B E R , CASHIER ^ ^ BKAZEA BRAZEAU ZENO B A R B E R , ASST. CASHIER BANK C A P I T A L $10,000.00 BRAZEAU, MO. June 25, 1958. Chaiman Ivlarriner S. Eccles, Federal Reserve Board Washington, D. C. Dear Mr. Larriaer: Recently we were examined "by the FDIC examiners, and while the natter of our examination was s t i l l fresh on our minds, we read an article in the "St. Louis post-Dispatch" "bearing date June 17th, with the heading: "Sasier Credit At Banks Urged By Reserve Head." The writer read each word of i t , wishing there had "been more of i t , i t so completely expressed the attitude so many hankers are taking now. Before I go any further, just one glance at this letter-head will prove to you that we are very small. So small that we should not even he considered worthy of expressing an opinion as to what we think about hanking or anything else, however, there is no restriction, so far, on a person saying what he or she thinks, even though i t may not cause any comment. laying a l l that aside, i t is good to know that -someone thinks "soundly" on the hanking situation. We a l l appreciate what the FDIC lias done for us. In our particular case, at the time of the hanking holiday, things were very discouraging. We were miserably small, are yet very small. Banks around us were closing each day, some very large "banks, and a l l of us, large and small, wondering what the out* come would he. The good Samaritan, in form of the FDIC came along and rescued us a l l . Confidence was restored, "both to hanks and their depositors, hut that credit belongs to ter. Roosevelt, and nobody else. At any rate, we a l l took a new start, both large and small, but where are we headed? At present, a l l of us have too much idle money, even us, who are so small. The question confronts us as to what to do with that idle money, ijend it? Surely, why not? So we go on-and ierid i t . We think we know the people to v/hom we lend i t , and we rest a l i t t l e easier, thinking we have made a reasonably good loan until FDIC examiner pays us a v i s i t , then to our sorrow, we find that we have made a serious blunder, and i f we aren't careful, we get an invitation to throw out that note. And the next year, the same invitation is again extended, only i t becomes a demand To be sure, a throwa-out note is not to be burned, i t may be collected at any time, but as the supply grows each year, the game loses i t s glamour or magic influence, and i t would take a man with a steel constitution not to become discouraged and say "What is the use to try and lend money", but that won't do, idle money draws no revenue, and you are critisized severely again, so what i s a fellow to do, have you a solution? We a l l need one. Onee in a while, or twice in a while a "small man" comes in and asks for a loan. He needs it to operate his business with, or to meet a necessity. n e can f t give large amount of security, bet he can give enough to satisfy the M. S. S. # 2. "banker, v&om he has known a l l his l i f e . He gets his money and goes on about his "business of whatever it is* and a l l is well until the hanker is obliged to notify him that he MIST pay up AT ONCE. Not because the "banker himself is not satisfied, but because of the restrictions placed upon him. The man is defeated, he rightfully feels that a l l is against him, and that a bank is the place where he must shy around, he is not welcome there for they were meant for feig men and big concerns, and very big at that, and the time has come when some very good people hesitate to borrow from banks for the simple reason that they my be called upon to meet their obligation at a time when it is not convenient and^jthey are politely informed by the banker that their note is "rotten", and'^^^^^apoor risk. I am not objecting to FDIC examiners. In most cases they are a nice sort of people to deal with, and the blame is not to be placed on their shoulders as they must meet the requirements of the Corporation, regardless of who i t hurts, but i t does seem that the Corporation's restrictions are rather severe, with the result that bankers are becoming discouraged. Oh yes, you are going to look u? up in the "Blue Book", and you will find that the writer is a woman Cashier of one of the smallest banks in the state of Ilssduri, and that fact will likely cause a good broad smile to appear on your face, as well as on the faces of those around you, which is well and good, I wouldn't want you to cry, so get a l l the "gang" together, call in Ilr. Boosevelt, the man whom we have a l l been, and are s t i l l so proud of, and the man with broadest smile of any man in whole United States, and take a good hearty laugh over the fact that your ppinion, expressed on "Easier Credit At Banks Urged By Reserve Head" is responsible for these few lines, simply because that opinion runs along the same line as that of the writer, only ydu had sense enough to express yours, and I didn*t have, and wouldn't be heard anyway. I do not propose to know anything about the Federal Reserve System, but I believe that most of us recognize sound judgnent when we come in contact with i t , and I also believe that after reading the above'mentioned arti c l e , every banker who read i t wanted to shout "Halleluiah, Brother, that is what we have a l l been thinking but just hadnft said i t . " Being one of the smallest banks in the state, we were proud that we were able to live through the Hoover administration, or the depression, or anything else you may desire to call i t , and we have said that we MOVID NOT give up the fight during the Roosevelt administration (the entire board happens to be Democrats), but since our ]sst examination, we are not so sure of i t . I f the Cashier can regain enough grit and encouragement to keep fighting, we may make i t , i f they will permit us to fcurry the note case before another annual FDIC examination. I f you have read this, I want to say "Thank You" for your time. I f you have not, well, I didn't expect you to in the f i r s t place, but I have i t out of my system, and i f you have any more good opinions to express, please put force to them. Again thanking you, I am Tours for less restrictions
@FedFRASER