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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.

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