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V SECURITIES AND EXCHANGE COMMISSION WASHINGTON Philadelphia OFFICE OF THE CHAIRMAN May 6, 19ij2 Honorable Marriner S* Eccles Chairman, Board of Governors of the Federal Reserve System Washington, D. C. My dear Mr. Eccles: I enclose for your information a copy of a letter which I have written to the Secretary of the Treasury concerning the meeting which was held at his office last Wednesday* Also enclosed is a copy of a suggested draft of a letter from the Secretary to the President. Quite a few proposed issues of securities have come to our attention since the meeting and, in consequence, 1 have asked Mr* Buffington to arrange for a further meeting of the Informal committee* I am hopeful that Mr. Buffington will be able to call such a meeting for Monday, May 11• Sincerely yours, Gan son Pure ell Chairman Enclosures > 'ft ^ Xfty The Honorable The Secretary of the treasury Treasury t 9 My dear Secretary 2 Thank you for c a l l i n g the informal ing l a s t Wednesday of those who have expressed an i n t e r e s t i n the use of capital funds during t h i s war period. I appreciated the opportunity of discus sing with such a group the matters which have given our Coimiagios* considerable concern and which we f e e l should a l s o be of equal scream to the other a* I was g r a t i f i e d that the problems of i n i t i a l impact i n t h i s f i e l d aroused the I n t e r e s t of t M s group* I f e e l that you have brou&ht about a b a s i s for r e a l progr«sa through the formation of the Informal co&mittee to handle •natters r e l a t i n g to new i s s u e s on twonty-four hours 1 notice* There w i l l be problems of t h i s character to present to the eojaraittee from time to tl<s* and X w i l l undertake to bring them to your attention* I have already asked s>« Buff i n g ton to arrange a meeting a t an early date to consider c e r t a i n proposed I s s u e s which have come to our a t t e n t i o n since the meeting* I t ID my hope that t h i s Infernal rangeaeat w i l l also penalt the oonsideration of other r e l a t e d problems which we f e e l are an i n t e g r a l part of t h i s question, and that through t M s proeess we smn develop an e f f e c t i v e program to cope with whatever s t r e s s e s cay develop* - - 2 m I recall that something was said about Informing the President, by l e t t e r , about o w meeting and the tentative arrangement that has been made* I assume that this already has been done* However, since i t may have bean overlooked, I have prmpT^d a suggested draft of a l e t t e r frosi yew to the President «hioh may be helpful to you# Sincerely yours, Qanson Puree!! Chainaaa Ganson Puroell:ng • DRAFT My deer Mr. Presidents On Wednesday, April 29, 19U2, a stating was bald at my office on the subject of capital funds control• Present were the Secretary of Commerce, the Chairman of the Board of Governors of the Federal Reserve System, the Chairman of the Securities and Exchange Commission, and Mr* Lauchlln Currle, aa wall as myself. Consideration was given to the desirability of instituting some control over capital issues with a view to avoiding competition between such lasuet and Government financing for the war. In particular, oonaideration was given to the necessity of controlling the amounts of auch offerings and their timings so aa not to interfere with Government financing of various typea. In addition, there was discussed the need for capital control in preventing the raialng and employment of capital for non-esaential a c t i v i t i e s and the consequent creation of competition for labor, material a, and transportation between such non-eesentiel a c t i v i t i e s and Activities essential to the war effort* DRAFT- It was determined that • substantial problem exists which requires some governmental scrutiny and the persons preaent agreed to oonatltute themselves a committea to watch developments la thia field and to meet upon c a l l . It i s expected that definite rec- ovnaftdationa for executive action w i l l be made at the moment the need appears. Respectfully submitted,
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