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HEBER J. GRANT, President
JOHN F. BENNETT, vice President
w? MS E W A N , ASS'C cashier
GEO. s. SPENCER, vice President
WILLARD R. SMITH, Cashier
J. FORBES DONE, ASS'C casnier
WS" T. PATRICK, Ass't Cashier
CAPITAL $ I.OOO.OOO. OO - SURPLUS
$500,000.00
llarch 30, 1955
Mr. Ivlarriner S. Eccles
Governor of Federal Reserve Board
Washington, D.C.
Dear Mr. Secies:
Ever since the Federal Deposit Insurance Corporation went into effect, we have been
working on legislation which would be as favorable to strictly stock savings banks as present
legislation is to mutual Banks, The "Banking Act
of 1933" made no differentiation between strictly
stock savings banks, (referred to herein as "nonmutual savings banks1*) and commercial banks; whereas,
as you know, non-mutual savings banks more closely
resemble mutual banks than commercial institutions.
We are the only non-mutual savings bank in the State
of Utah, and compared with other banks in this Country,
non-mutual banks are rather limited. However, they
represent assets of close to one and one-half billions
of dollars, distributed in thirteen states throughout
the Union.
Y/e believe the FD1C looks with favor on the
Amendments to the "Banking Act of 1933",. which we have
suggested be included in the "Banking Act of 1955". It
seems the Amendments which it is suggested be included
in the "Banking Act of 1935", must also be included as
Amendments to the "Federal Heserve Act". Vfithout doubt,
inquiry will be made of you with regard to the propriety of such Amendments being made to the Federal Reserve
Act, and naturally we are very desirous of engaging your
favorable recommendations. You may be familiar with the
suggested Amendments, but if not, for convenience sake,
we are enclosing H.IUB111 5357, in which the suggested
Amendments are inserted. {S©e pages 3,10,37, affecting
the "Banking Act of 1935* aad pages 65 and 67, affecting the "Federal Iteaerr* Act11. )
Bttiefly, m £©#1 justified in asking for such
Amendments on the following grounds;
HEBER -J. GRANT, President
JOHN F. BENNETT, vies presiflent
w * M? EWAN, Ass't cashier
G E O . S SPENCER, vice president
WILLARO a SMITH, CasWer
j . FORBES DONE, ASS'I casnier
w~ T. PATRICK, Ass't Cashier
CAPITAL $ I,OOO.OOO. OO - SURPLUS
$500,000.00
M * W k <**%» Utah
l.Ir. Larriner °. Secies
3-50-35
First:
I] on-mutual savings banks should
be placed in the same class as mutual savings banks,
inasmuch as neither of these classes of institutions
makes any commercial,or loans of a risky nature. You
know, of course, State Laws rigorously restrict savings banks in their investments and do not permit them
to make unsecured loans, of. any kind. It is therefore
unfair to require such banks to join in guaranteeing
the deposits in banks making investments and loans of
a more risky, unsecure nature. This is not required of
mutual banks, and should not be required by non-mutual
savings banks.
Second; Inasmuch as savings banks pay interest on every dollar of their deposits, they should
be granted the right to obtain interest on their deposits in approved commercial banks, of their reserves
and surplus funds, similar to the rights granted mutual
savings banks under the present Banking Act.
Third: Savings banks should not be reoxuired
to join the Federal Reserve System to obtain insurance,
since they do no commercial business and therefore, are
not able to avail themselves of any of its facilities.
Fourth; Some of the non-mutual savings banks
in the West, as you perhaps know, allow depositors to
use checks against short notice savings accounts, in
order to protect their term savings accounts against
competitors. This practice is more common in California and other western banks and is not employed at all
by our institution; and the banks employing such practice are desirous of being continued such right in the
"Banking Act of 1035*•
I feel certain you will recognize the justice snd equity of tne above briefly stated reasons
for the suggested Amendments, and hope we can rely
on your co-operation in having them incorporated in
the "Federal Heserve Act*.
HEBER J. GRANT, Presidant
JOHN F. BENNETT, vica president
w» Mf EWAN, Ass't cashier
OEO.s. SPENCER, vice president
j . FORBES DONE, Ass't cashier
WILLARD R.SMITH, Cashier
W* T PATRICK, Ass't Cashier
CAPITAL $ I.OOO.OOO, OO - SURPLUS
$ 500,000.00
karriner S. Secies
3-30-35
_ — 3...
I am enclosing a little amplification
of each of the four above mentioned points with
a more detailed explanation, which I will be very
kappy "to have you read, as they greatly
the arguments. I am doing this so that /th$s letter
will not burden you with its length.
With personal greetings and
wishes, I am
2nc:
H.H.Bill
@FedFRASER