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26 March 1947.

Honorable karriner S«
Chairman, Boara of Governors
Federal heserve bystea
Washington, D« C«
Dear Mr. £cclesr
On this anniversary of fijcecutive Order 9112, which was signed by
the Resident on 2b March 1^42, I desire to express to you persona I ly,
ana through you to the members oi the Board of Governors of the Feaeral
rieserve bystem and to the officers of the Feaeral Reserve Banks, the
deep appreciation oi the uar department ior tne very great assistance
which the entire System has rendered it in connection with the
Guaranteed i»oan program.
The underlying philosophy oi the tocecutive Order was, us you Know,
that In assi^tiiifc war production contractors through guaranteed loans
the Viar Department shou±a use not oruy the funds already in the coiaiuercial banks of the country, but shouxd utilize tne existing credit
machinery as well. It was to that end that the Federa^. Reserve Banks
were appointed the Fiscal Agents ox1 tne nar Department,
The universal acceptance of the principle of hegulation V loans by
both the contractor s and the bamcs is uue in no smaol part to the good
judgment, the siciil and the expedition with which tney have been handled
by the Federal ueserve Barnes, Especially appreciated were the helpful
suggestions of the iteserve Banks uurlng the liquidation phase of the
"V" ana "I" programs which, in many respects, called for an even greater
degree of financial management tiian that required in the initial extension of creait.
You ana tne members of the Federaj. iteserve System who participated
in trie pro^raiu snoulu ieel a deep satisfaction in your contribution to
this important part of tne war effort.

Sincerely yours,

Kenneth C • hoyajJL
Unaer secretary of «ar

April 1, 19U7D«ar Mr. Tinder Secretary*
Oa behalf of our Board and the Federal Ussei
Banks, I vdsh to thank you aost sinoerely for your ganerout alnded letter of March idb «Hl«h has just reaehed «e*
In a l l th« various activities la wfeioh our 3ystaxa has bo«o emgagad or«r tb« y«ars # I do aot
that tti«r« ha* «rtr b««a cano i s whiati th« spirit
tha two contracting parti as ;-^a» baa® aor« aoostructitv
and free frcn f rloticm than tha joint effort of tha Wmr
D*partaa«at and oursalTos l a carrying out th« jmrpoaas of
Szaeutlva Ordar 9112. la the anxious days auriag tii8
war «ith a l l i t s probleau and diffioultia* aad in taa
nany aoatlis of r«c on Torsion aftar host! 11 t i as had ceassd*
m. genuinely oooporati-va s p i r i t axis tad at a l l tiabss batvaaa as* this taajwork aad tha uniformly f a i r attitude
of the War Dejpartaa&t BMde possible ^i* suooessful administration of Regulation ?•
With ay beat personal wisns* to you, I aa
Sinoerely yours.

the Boaoracle Ksnaetfo C. aoyall,
Under Secretary of Ifcr,
Yashingtoa, 0. C.