The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
BOARD DF FEDERAL GOVERNORS • F THE RESERVE SYSTEM W A S H I N G T O N 2 5 , D. C. ADDRESS Z-2065 (On office copies only) • FFICIAL T0 THE CORRESPONDENCE BOARD June 13, 1947. Dear S i r : This letter i s being written to bring you and other interested persons in your district up to date on the present status of S. 408 and H. R. 3268 which relate to the repeal of the present section 13b of the Federal Reserve Act and the addition of a new paragraph to the present section 13 of the Act, providing for the guarantee of business loans by Federal Reserve Banks. You w i l l recall that I addressed a letter to you under date of March 21, 1947, calling attention to the legislative situation at that time with respect to this matter. S» 408 has been reported out favorably by the Senate Committee on Banking and Currency and i s now on the Senate calendar. When a b i l l comes up on the Senate calendar, unanimous consent is necessary for i t s consideration, and when S. 408 was brought up recently, Senator Wherry, the Republican whip and a member of the Steering Committee, objected. While i t is possible for a b i l l to be brought up on motion, such a course i s not likely in this case without the consent of the Senate leaders. The only other method by which the b i l l may be brought up is by having i t made the unfinished business of the Senate through arrangement by the Chairman of the Banking and Currency Committee with the Republican Steering Committee. Accordingly, i t may be necessary to get the assistance of the members of the Steering Committee in order to obtain action on the b i l l by the Senate, In the House the Banking and Currency Committee has completed hearings on H. R. 3268 but has not yet made a report on the b i l l . At present we have no indication as to whether or not the Committee report, when made, w i l l be favorable. In view of your special interest i n this legislation and of the fact that many of the bankers, industrialists, and particularly small business enterprises in your district are also very much interested in the proposed legislation, we want you to be f u l l y advised of the present status -2of the legislation so as to be in a position to acquaint interested persons in your district vith respect thereto. As stated in my letter of March 21, i t is important that i t be understood that unless sufficient support develops for the authority to make guarantees, Congress may decide to pass the f i r s t section of the B i l l and not the second, thus leaving the Reserve Banks without any authority in this field. As you know, I have testified before both the House and the Senate Banking and Currency Committees on these b i l l s . You have been f u r nished with copies of my testimony before the Senate Committee on S. 408 and of press releases of statements made by me on June 3 and June 10 before the Banking and Currency Committee of the House on H. R. 3268. Chairman. TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS
@FedFRASER