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25 January 2J, 19^5* Honorable Brent Spenoe, Chairman, Banking and Currency Cossaittee, House of Representatives, Washington 25. T>+ C* Dear Mr* Spenoei Attached is a draft of & bill approved by the Board and the Treasury, and recommended in the President*a Budget Message, reducing the requirements of reserves to be held by Federal Reserve Banka from their proaant level of itO per cent in gold certificates against Federal Reserve er notea in circulation and 35 P oent in gold oertificatea or lawful money against deposits to a uniform minimum of 25 P«r cent in gold oertificatea against combined note and depoait liabilities* She bill also provides, with the approval of lite Treasury, for indefinitely extending the authority expiring June 30, 19U5 of the Federal Reserve Banks to pledge U. S* Government securities against Federal Reserve notes issued by Federal Reserve Agents* I am alao attaching a copy of a statement explaining the measure and the need for its enactment* Sincerely yours, Um S. Eccles, Qhairaaxu Attachments 2 ETjb 25 January 2h> 1916* Miss Minna L« Huppertf Secretary to Senator Wagner, Washington, D. C. Bear Miaa JSuppert* this is -the letter* with onoloeuros, about *hioh I talked to you on the telephone and nhioh you promised to oall to the Senator's at** tontion upon his return* I would appreciate your letting a* hear from youas soon as the Senator returns • Sincerely yours, U* 8« Boole*, Chairaaiu HSE:VE:b 25 January 2k, 19^5Honorable Robert F* Wagner, Chainaan, Banking and Currency Committee, tilted States Senate, Washington 25, D* C* Dear Senatort Attached la a draft of 1 a bill approved by the Board and the Treasury, and recommended In the President a Budget Message, reducing the requirements of reserves to be held by Federal Reserve Banks from their present level of per cent in gold certificates against Federal Heserve notes in circulation and 35 per cent in gold certificates or lawful money against deposits to * uniform minimum of 25 per cent in gold certificates against combined note and deposit liabilities. She bill also provides, with the approval of the Treasury, for indefinitely extending the authority expiring June 30, 19U5 of the Federal Heserve Banks to pledge U* S. Government securities against Federal Reserve notes issued by Federal Beserve Agents. I am also attaching a copy of a statement explaining the measure and the need for its enactment* I have given a copy of the bill and the statement to Chairman Spenoe of the House Banking and Currency Cotanittee, and have talked to him and Mr* Wolcott, the ranking minority member of the Caaaaittee, about the matter* They are both favorable to getting the bill through &t the earliest possible date after It has been Introduced* However, I asked Mr* Spenoe not to introduoe the bill until I had had an opportunity to talk with you about it and also to Senator Tobqy or Senator Taft, representing the minority on your Committee* I should very much appreciate having an opportunity to talk with you about the bill as soon as convenient after you return to your office, so that if it is agreeable to you, the measure may be Introduced simultaneously in both Houses* With best regards. Sincerely yours, Um S* Socles, Chairman* Attachments 2 ETib
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