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FIRST NATIOXAJL HVKK IN R O C K W O O D KOCKAVOOD, TKIVX. W H E R E YOU F E E L AT H O M E " June 18, 1938 Mr* Marriner S. Eccles, Chairman Federal Reserve Board Washington! D* C. Dear S i r : I noticed comment by you regarding Government r e s t r i c t i o n s on Bank loans which i s purported to be sent out in a l e t t e r of yours t o Senator Van den berg of Michigan. No doubt you a r e deluged with a l l types of l e t t e r s from bankers higher up, but my opinion i s t h a t you receive very few l e t t e r s from oountry bankers of small i n s t i t u t i o n s * We believe that we small country bankers come nearer holding the pulse of the p a t i e n t under d i s cussion than any o t h e r c l a s s of f i n a n c i a l r e p r e s e n t a t i v e s of the United S t a t e 1s . You, as an experienced banker and the head o f America s f i n a n c i a l s t r u c t u r e , no doubt r e a l i z e t h a t laws governing the b i l l i o n d o l l a r i n s t i t u t i o n s i n New York a r e not workable i n the small town of Rockwood, Tennessee* I am passing my t h i r t y - t h i r d milestone in a oountry bank, and I h e a r t i l y agree with you t h a t the present laws and r u l i n g s of our National Banks were born of mistaken ideas* We have passed through the d i s a s t r o u s period i n banking, and business, no doubt, would forge ahead to normaloy i f our banking i n s t i t u t i o n s were not hedged in a s they a r e a t present* I f banks a r e t o a c t a s the l i f e b l o o d of economics, why i s i t t h a t we a r e t i e d hand and f o o t , and the Federal Savings & Loan Associations a r e being allowed to compete with us f o r the choice r e a l e s t a t e loans, and are authorized to pay 4% on money guaranteed, whereas, we a r e only allowed to pay 2% with the guaranty? Also, we a r e in competition with our l o c a l Post Office f o r Savings Accounts* Two Government agencies t h a t a r e taking c a p i t a l from t h e ohannels of t r a d e , and we a r e expected, a s commercial banks, t o b u i l d back the f i n a n c i a l s t r u c t u r e of the country, and y e t keep ourselves 75$ liquid* FIRST K\TIOXAL BANK IN R O C K W O O D ROCKWOOD , TKT^X. "where y o u f e e l AT h o m e " Page #2; Mr* Marriner S. Eccles< You are r i g h t , Mr. Ecoles, and you diould be complimented f o r your u t t e r a n c e s by a l l bankers i n the r u r a l s e c t i o n . Thanking you f o r your time, I am Yours very Jfcruly, f E/C William Ensminger^ Vice President-Cashier June 27, 1938. Mr* William Ensminger, Vice P r e s i d e n t - C a s h i e r , F i r s t National Bank, Rockwood, Tennessee. Dear Mr* Ensminger: This i s t o acknowledge r e c e i p t of your l e t t e r of June 18, "with r e f e r e n c e t o my recent l e t t e r t o Senator Vandenberg, in which I commented upon the unduly severe r e s t r i c t i o n s placed upon t h e lending and i n v e s t i n g f u n c t i o n s of t h e banks. I have heard from a l a r g e number of o f f i c e r s of banks and other business men in a l l p a r t s of t h e country since t h i s i s s u e was r a i s e d , and I have found i t very r e assuring t o know t h a t based on t h e i r p r a c t i c a l experience t h e y are sympathetic with what t h e Board has been attempting t o do and has succeeded i n bringing about under t h e agreement j u s t announced. I p a r t i c u l a r l y a p p r e c i a t e your l e t t e r and I want t o thank you f o r your courtesy i n w r i t i n g . Very t r u l y yours, M. S* E c c l e s , Chairman. ET:mlh