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/ ECONOMIC POLICY COMMISSION CHAIRMAN V. R A N D O L P H B U R G E S S ICE C H A I R M A N OF A T I O N A L CITY NEW YORK. N. Y. BOARD BANK VICE C H A I R M A N LEONARD P. AYRES, VICE PRESIDENT C L E V E L A N D TRUST C O M P A N Y CLEVELAND. O H I O W I N T H R O P W. A L D R I C H CHAIRMAN OF BOARD THE CHASE NATIONAL BANK NEW YORK, N. Y. F. M. FARRIS. ECONOMIC POLICY COMMISSION THE AMERICAN BANKERS ASSOCIATION 22 East 4O Street, NewYorlN.Y PRESIDENT THIRD NATIONAL BANK IN NASHVILLE N A S H V I L L E , TENNESSEE BRANCH OFFICE 7 1 7 — 1 5 STREET, N.W., W A S H I N G T O N , D. C. A. P. S I A N N I N I C H A I R M A N OF BOARD BANK OF AMERICA N. T. & S. A. SAN FRANCISCO, CALIFORNIA RICHARD F I R S T ST. S. HAWES. B A N K MISSOURI RUDOLF S. HECHT C H A I R M A N OF BOARD HIBERNIA NATIONAL BANK NEW ORLEANS, LOUISIANA HAROLD H. HELM, VICE PRESIDENT CHEMICAL BANK & TRUST COMPANY NEW Y O R K . N. Y. WILLIAM A. MITCHELL, VICE PRES. J. P. MORGAN & COMPANY, INC. NEW Y O R K , N. Y. E. S. WOOSLEY, VICE PRESIDENT L O U I S V I L L E TRUST C O M P A N Y LOUISVILLE, KENTUCKY JOHN C. WRIGHT VICE PRESIDENT AND CASHIER AMERICAN NATIONAL BANK & TRUST CO. CH I C A G O , I L L I N O I S A. GEORGE G I L M A N , PRESIDENT M A L D E N SAVINGS BANK MALDEN, MASSACHUSETTS SECRETARY D R . March 15, 1943 P A U L F. Some weeks ago the Economic Policy Commission was asked to prepare a report on the problems banks are facing in selling government securities to their customers and buying them for their own account, having in mind particularly the United States War Fund drive in April. The enclosed report is the result, and we hope you will find it helpful. We are enclosing two copies, one for your own personal use and the other to pass on to the officer who handles your bond account, because I know he will want to have one. It has also been suggested that many bank directors have been asking the kind of questions that are answered in this report. If you would like to have enough copies for your directors please let us know how many you need, and we shall be glad to send them. Sincerely yours, W. Randolph Burgess C A D M A N 22 EAST 40 STREET, NEW YORK, N. Y. Dear Mr. President: VICE PRES. N A T I O N A L LOUIS. BDARD DF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Jffice Correspondence To Mr. Clayton Frnm Mr. Dani< Date March 22,19I4U Subject: The r e s u l t s of i n d u s t r i a l loan operations by the Federal Reserve Banks for the e n t i r e period to December 31* 19^4-3, a r e summarized in the following t a b l e : Advances made 1213,972,000 Current earnings Current expenses Current n e t earnings $ 9*015,000 U,573»OOO $ l4.,lil|2,OOQ Additions t o current net earnings Deductions from current n e t earnings: Losses and reserves for losses (net) All other Net earnings 7U*000 3*052,000 Ul,000 $ l,li23»000 Allowances for estimated l o s s e s , December 3 1 , I9U3 $ 1,713,000 Disposition of net earnings: Paid U. S. Treasury Transferred t o surplus (Sec. 13b) Transferred t o surplus (Sec. 7) % 1,512,000 -581,000 1+92,000 With respect to losses sustained by the Reserve Banks i t w i l l be noted t h a t $3,052,000 of losses have been charged off or provided for by s e t t i n g up allowances for l o s s e s . Of t h i s t o t a l , however, |l,713,OOO remains i n allowances for losses and, to t h e extent f i n a l determined losses are less than present estimates, the net earnings picture w i l l be improved. The experience of individual Federal Reserve Banks v a r i e s . A comment on the disposition of n e t earnings i s in order. While |l,512,OOO has been paid t o the Treasury, net d e f i c i t s in c e r t a i n years r e s u l t i n g from use of Treasury funds amounted to $581,000 so t h a t the n e t r e s u l t as f a r as use of Treasury funds i s concerned i s a gain of $931,000. The remainder of net earnings, $14-92,000, was derived from use of Federal Ressrve Bank funds. Maroh 27. 19U3* Dear Handolph: The copy of the report of the Boonoaic Policy Commission of the Araorican Bankers Association came to my desk while I was in the West, so I am somewhat delayed in acknowledging it and thanking you for sending it to me* As revised, it s earns to me to be a great improvement and excellent material to put into the hands of all of the banks in connection with the April drive* With best regards. Sincerely yours, Dr* W» Randolph Burgess, National City Bank, 55 Sail Street, Hew York ' ESTABLISHED 1812 April 1, 194-3. OFFICE OF THE VICE CHAIRMAN OF THE BOARD Dear Marriner; Thanks for yours of the 27th. I am glad the revised edition seems good to you, and hope it may be useful. While we could ht.ve discussed the questions your earlier letter raised, this pamphlet was certainly not the place to do it, but rather to emphasize the areas of agreement which, happily, are very large. 'With cordial regards, Sincerely yours, Honorable Marriner S. Eccles, Chairman, Board of Governors of the Federal Reserve System, Washington, D. C.
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