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OEO. S. COLTON ELASTIC W E B CO. EASTHAMPTON, MASS. DIRECT MILL DELIVERY LONG DISTANCE «2O PRES. AND MOR. EDITOR COLTONS RADIOGRAM M B I ,cERIZED AND COTTON LISLBS. CABLES. FRILLS CORDS AND BRAIDS CORSET GORINOS AND LACES SURGICAL WEBBINGS ARTIFICIAL LIMB WEBS S|L|£ CLIFFORD A. RICHMOND O, XdOD Honorable Marriner S. Eceles, Member of the Federal Reserve Board, Washington, D.C. Dear Mr.Eccles: In the morning paper I note: n Eccles warns banks may be taken over on tight loan policy. Step may be necessary, he says, for failure to extend credit to business." My dear sir, as you have made this statement, may I come right back at you and ask just what you mean, if you mean anything at all, as applied to the banks that exist - by the grace of God - in the western part of Massachusetts. I am not sarcastic; I am looking for light. Evidently you know womething very vital that the bankers of this vicinity do not dream of. It is time they woke up and knew the facts. We certainly are weary of hearing tirades from Washington about the tightness of banks. The national banks in this vicinity are lousy with money that they cannot loan. There is a limit that they can loan on real estate. They cannot get sound collateral loans because too many business people are devoid of confidence in the New "Deal and the purposes and intents of the men administering it. Until this damnable condition is absolutely changed, there will be no considerable demand for Collateral loans and little safe collateral to offer to protect them. Bank examiners are camping on the banks to charge down loans inadequately collateralled, many of which loans are continually growing worse because of lack of confidence in securities caused by the animosity of the administration, dominated by a master politician who never had to face the finding of a payroll and seems to cordially believe more can be drawn from a barrel than there is in it. GEO. S. COLTON ELASTIC W E B CO. EASTHAMPTON, MASS. DIRECT MILL DELIVERY LONG DISTANCE 220 C L I F F O R D A. R I C H M O N D PRES. AND MOR. EDITOR COLTON'S RADIOGRAM March 6 , 1955 SILK. MERCERIZED AND COTTON LISLES. CABLES, FRILLS CORDS AND BRAIDS CORSET GORINGS AND LACES SURGICAL WEBBINGS ARTIFICIAL LIMB WEBS Honorable Marriner S. Eccles -2Now, the savings "banks in this locality have a waiting list for real estate loans. They cannot get in the money fast enough to accommodate those who have come to them for real estate accommodation; and likewise they cannot get any abundance of good collateral loans that it would be safe for them to take. What, then, is the meaning of all this tirade about the constipation of banks? What does it mean? These very banks are constantly buying government loans, although they yield them almost nothing. What is the answer to all this blather about the tightness of banks, the unwillingness to make loans? Does the administration really think because it likes to call a tail a leg the government can stand on it? Supposedly sound corporations can borrow plenty of money at ridiculously low rates; unsound loans should not be made; so what? There are men hereabout who would borrow to paint and repair their homes if in this Hopeless alphabetical morass they could see a way to make repayments. The banks cannot be blamed for being as doubtful of their customers' ability to repay as the customers are themselves. First, build confidence in business leaders and restore confidence in investors; then labor can be employed. This letter is written hot off the bat and straight from the shoulder but it is written constructively, sincerely asking for a point of view from one gentleman to I hope - another. Does your statement apply to banks in Western Massachusetts and, if so, what should they do, in sound banking practice, to cooperate - please be specific. lours Tery truly, Clifford JL CAR:M
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