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COPY UNITED STATES SENATE Committee on Appropriations February 2 , 1943 Mr. Carroll F . Byrd F i r s t National Bank Willows, California lfy dear Mr. Byrd: I have received your l e t t e r of January 29 with respect to Senate Bill 829> to control and regulate bank holding companies. I have also received the pamphlet you sent me that was issued by your association. I appreciate having this and your courtesy in writing me. I assure you that my stand on t h i s does not indicate opposition to free enterprise or traditional competition. The fact of the matter i s , certain amendments to this b i l l are now in the process of being drawn up and my support or opposition to the b i l l will depend upon the form the proposed amendments take. But I assure you that I will approach this whole matter from a s t r i c t l y impartial point of view and use qy good judgment in deciding my ultimate stand in the matter. Thank you again for your l e t t e r , and I extend my kind regards. Sincerely, Pat McCarran CARROLL F. BYRD PRESIDENT FRANK WORTMAN A. R. DAWSON N CE PRESIDENT S. B. LAFROMBOISE SECRETARY TREASURER INDEPENDENT BANKERS ASSOCIATION TWELFTH FEDERAL RESERVE DISTRICT INCORPORATED EXECUTIVE MANAGER — R. F. HOLLISTER 802 FAILING BUILDING PORTLAND 4, OREGON February 9 , 194S EXECUTIVE COUNCIL J. R. MCEVOY, FIRST NATIONAL BANK, HOLBROOK, ARIZONA ROBERT S. BEASLEY, BEVERLY HILLS NATIONAL BANK AND TRUST COMPANY, BEVERLY HILLS, CALIF. CARROLL F. BYRD, FIRST NATIONAL BANK, WILLOWS, CALIFORNIA M. F. JEL1NEK, BANK OF OROF1NO, OROFINO, IDAHO A. R. DAWSON, CASSIA NATIONAL BANK, BURLEY, IDAHO R. L. DOUGLASS, THE SECURITY NATIONAL BANK, RENO, NEVADA E. T. WAY, GRANT COUNTY BANK, JOHN DAY, OREGON FRANK WORTMAN, FIRST NATIONAL BANK, MCMINNVILLE, OREGON HENRY R. HURREN, CACHE VAJ-LEY BANKING COMPANY, LOGAN, UTAH H. A. GARDNER, BANK OF SPANISH FORK, SPANISH FORK, UTAH V. J. BOUILLON, THE WASHINGTON NATIONAL BANK, ELLENSBURG, WASHINGTON S. B. LAFROMBOISE, FIRST NATIONAL BANK, ENUMCLAW, WASHINGTON Carroll F . Byrd, Pi First National Bank Willows, California Senator Pat McCarran Senate Office Building Washington, D. C. Dear Senator McCarran: Thank you for your l e t t e r of February 2 . The Independent Bankers Association of the 12th Federal Reserve District and a l l of i t s officers, past and present, have virtually been a part and parcel of the movement to obtain necessary bank regulatory legislation for about seven years. We believe we are fully aware of practically a l l of the present activities now taking place in Washington appertaining to S. S29. have For the anc ^ojie\half years firm ofi (£ieland Wo; Frank W. WozentriifctJ of th< xir Leg: s i a t i v e Courf Building, Wasfriigto n, D. C, u. oi rou i n Colonel Wozencya near futu o call tative. f ied Colonel aft, Southern I shall ask as our represen I am enclosing a marked copy of the advertisement published by the First National Bank of Willows (California) in the February 6, 1948, issue of the New York Edition of the Wall Street Journal. A similar advertisement will also appear in a very early issue of the American Banker, - possibly on February 9 or 10. I shall assume that you know practically everything about this b i l l , or otherwise you would not have taken the i n i t i a t i v e in holding i t up. You therefore no doubt are well aware of the fact that the present b i l l i s only a mildly regulatory b i l l , and the result of jiany compromises. Many officials high in the councils of the government, as weH as many Senators and Congressmen, have always taken the attitude that there should be no compromise with an economic evil of this vital importance to the American people, and have always stood http://fraser.stlouisfed.org/ CALIFORNIA FederalARIZONA Reserve Bank of St. Louis EXCLUSIVE REPRESENTATIVE OF INDEPENDENT IDAHO NEVADA BANKS IN OREGON UTAH WASHINGTON Senator Pat McCarran - 2 - 2/9/43 for a "kill b i l l " or at least a "freeze b i l l " . I t i s needless to say that this is a type of legislation we would prefer. On the other hand, many members of Congress of great political experience have convinced both the federal banking supervisory agencies and many of the leading bankers of the nation that this milder form of bank regulatory legislation is a l l that i t is possible to get a t the present time, from a purely political angle. A k i l l b i l l or a freeze b i l l (as in the case of public u t i l i t i e s ) can perhaps only be enacted during times of stress or depression, by reason of the political fences that the opponents of this type of legislation can build up, during a period of boom, to prevent the enactment of more drastic legislation. I have very good reason to believe that l i t e r a l l y thousands of bankers and financial experts throughout the country very much fear that any substantial "shake out" or depression might very easily result in the socialization of a l l banking in the United States unless this milder form of bank holding company regulatory legislation is enacted at the present time. I feel quite sure that i t is the general opinion of the general banking fraternity and financial experts that i t should not be necessary for this country to place itself in the position, during any temporary future period of stress, to burn down the barn in order to get rid of a few rodents. I believe that you will agree that any type of legislation that i s enacted under the stress of public emotion during a period of economic disturbance, is not the most desirable form of legislation. The writer is not so presumptious, as a small "cow town banker", to ask you to believe that I speak for the banking fraternity and financial experts of the United States, - but i t i s n^ personal belief that the opinions above expressed are also held by a majority of the members of the Board of Governors of the Federal Reserve System, as well as many leading bankers of the nation. If such were not the fact, why would forty-one nationally known economists call upon Congress to enact regulatory bank holding company legislation; and why did the Board of Governors, the Federal Advisory Council, the National Association of Supervisors of State Banks, the Reserve City Bankers, and the state banking associations of eleven states recommend bank holding company regulatory legislation. If any of the remaining teeth of this b i l l are going to be extracted by stultifying amendments, the opponents of the legislation can of course claim a decisive victory. You state in your l e t t e r that your support or opposition to the b i l l will depend upon the form the proposed amendments take. I am sure that none of the proponents of this legislation would object Senator Pat McCarran - 3 - 2/9/43 to any technical amendments that would receive the approval of the Board of Governors of the Federal Reserve System in order that the legislation might not work an undue hardship on any bank or holding company that i s carrying on a reasonable type of banking business that i s not conducive to monopoly. On the other hand, I sincerely hope arid trust that you have no idea of demanding amendments that would result in a useless piece of legislation that would fail to accomplish the required purpose. I am mailing a copy of your l e t t e r to me, dated February 2, 1948, together with this l e t t e r of reply, to a l l members of the Executive Council of this Association; to Frank W. Wozeneraft, our Legislative Counsel; and to a l l members of the Legislative Committee of this Association; as a l l of us are v i t a l l y interested. Thanking you again for your courtesy in writing me, and sincerely trusting that you will see f i t to make a very thorough investigation of the purposes and phraseology of this b i l l before taking any further stand that might obstruct the early enactment of same, I remain Very respectfully yours, CARROLL F . BYRD CFB:p
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