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BERNARD M.BARUCH 5 9 7 MADISON NEW YORK AVENUE 22,N.Y. June 1, 1944 Mr. M. S. Eccles, Chairman Federal Reserve System, Washington, D. C. My dear Mr* Eccles; I was so glad to see you put in the b i l l . Is there anything I can do? You have always been so sane in your actions, and so helpful at a l l times. Sincerely yours August 1, 1944 Honorable Bernard S . Barueh, Sands Point, long Island, York, Ee&r Sr. Baruel: flow that Cong reus has reconvened to consider l e g i s lation related to reconversion, i t 1» my purpose to request of ChFlrrar tfacner end Cheirssaa Spence that bearings be scheduled oh S. 1918 and H. K. 4804 providing f o r gttsrantees by the Federal Reserv»* Strike of loans to business enterprises sace by private flmueiiig institutions, thus following out the recommendations contained in the Baruch-E&nccck Re o r t . Under date of June 1 # 1944, you wrote me a brief note advising that yo^ were glai to see that I had brought about the Introduction of these b i l l s and asking i f there was anything that you could do in the matter. I think i t *?ould be helpful at this tlsne i f you would write me a l e t t e r in support of t h i s l e g i s l a t i o n , and a suggested draft of such a l e t t e r i s enclosed f o r your consideration. I t would be jry purpose to place t h i s l e t t e r or a copy of i t in the record of the hearings. Trusting this finds you well and with kind personal regards, I as», Sincerely yours, H. S. Eccles, Chal nean. Enclosure LC/mg General F i l e copies of this l e t t e r were Made but are being held by Mr. Clayton until he determines A e t h e r or not they should be sent to General F i l e s . MG c 0 p Y BERNARD M. BAMJCH 597 Madison Avenue New York August 3» Hon. Marriner S. E c c l e s , Chairman, Board of Governors, Federal Reserve System, Washington 25, D. C. Dear Mr. E c c l e s : As you know, I have been g r e a t l y concerned over the delay of Congress in enacting the l e g i s l a t i v e program recommended in the Baruch-Hancock report* Fortunately, j u s t before the Summer r e c e s s , Congress passed S. 1718 which r e l a t e s to settlement o f terminated c o n t r a c t s . Unfortunately, they did not pass the unemployment insurance so necessary t o human demobilization. Another e s s e n t i a l part of the program i s the assurance of adequate c r e d i t f o r small and medium sized businesses through amendment of the Federal Reserve Act, as outlined in the plan which you submitted to me l a s t December and which was s e t f o r t h in general terms in my r e p o r t . I was glad t o note that under date o f May 15th, Chairman Wagner and Chairman Spence introduced companion b i l l s , which, i f enacted, would implement t h i s plan. The f i n a n c i n g mechanism embodied i n these b i l l s w i l l be very h e l p f u l and indeed necessary, p a r t i c u l a r l y during the impending t r a n s i t i o n p e r i o d . In addition t o f a c i l i t a t i n g the financing of reconversion, i t would be an important aid in financing businesses which do not require reconversion, including new enterprises so that they can do t h e i r f u l l share in the resumption of our c i v i l i a n production. Now that Congress has reconvened, I hope that the Banking and Currency Committees o f the Senate and the House w i l l promptly hold hearings on these b i l l s and that no opposition w i l l be encountered. There would seem t o be no valid ground on which anyone should o b j e c t t o your plan which, in essence,merely r e leases f o r timely use a t this c r i t i c a l period unused funds appropriated by Congress ten years ago f o r the very purpose of helping businesses which cannot otherwise obtain r e q u i s i t e f i n a n c i n g . Please advise me i f there i s anything I can do to a s s i s t in the early enactment o f S. 1918 and H. R. i*80J+. Sincerely y o u r s , (Signed) Bernard M. Baruch. Auiiuat 1944 IIonorable Bernard 11« ¿aruch, Sends Point, Lon# Island, Kew York. Dear Xr* Baruch: I wish to thank you for /our gracious latter of August 3 respecting the b i l l s 3 . 1918 and H. R. 4904 Introducnd loot Hay by Chairman Wagaer and Chairman £?ence end now pending in their respective oomsstttees. I as sore your l e t t e r w i l l bt> most helpful in obtaining e^rly consideration of this legislation» I note that there i s a alight typographical error in your l e t t e r in that in the second paragraph you refer to " 3 - 7 1 9 " relating to the settlement of terminated contracts *i?e^eas thia b i l l was 8 , 1718. Also in the last line of your l e t t e r you o f f e r to assist in the early enactment of *S 718" whereas you intended to refer to S. 1918, th* pending b i l l relating to section 19b« Thinking that your l e t t e r «ay be submitted for the Record, T assure that you would prefer to send me a corrected copy, upon receipt of which 1 shall be ^lad to return to you the one just received. Thankinr you heartily for ?our fine cooperation and with warmest perronal regards, I am, 3incerely yours, U. 8 . Kccles, Chai naan LC/mg General File copies of this l e t t e r were made but are being held by Mr. Clayton until he determines whether or not they should be sent to General F i l e s . MG
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