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PRINTING SPECIALTY CO. L. AUTOGRAPHIC E. HINNENKAMP REGISTERS AND CONTINUOUS PRINTED E M P I R E STATE SUPPLIES FORMS BLDG. SPOKANE, WASH. June 10,1941 • Hon. M.S. S o c l e s , Chairman Board of Governors F e d e r a l R e s e r v e System Washingt on,D.O. Dear Sir:- In the March 24 t h , 1 9 4 1 i s s u e of the C o n g r e s s i o n a l Record on page 142R A i s found the r e p l y of yours t o H o n « W r i $ i t Pat man of Texas t o h i s speech i n the House of R e p r e s e n t a t i v e s , tr. which you d e s c r i b e t h e w o r k i n g s of the F e d e r a l R e s e r v e System® Your l e t t e r i s v e r y c l e a r and t o me c o n c l u s i v e l y answers e v e r y p o i n t r a i s e d by Mr. Patnan,Showing the use and b e n e f i t s o f t h e system* I t seems t h a t such a v a r i a b l e document should not be h i d away i n the C o n g r e s s i o n a l Record,but should r e c e i v e w i d e r p u b l i c i t y * One paragraph on page A-1429 h o w e v e r , i s n o t q u i t e c l e a r t o me,and w i t h your wide knowledge of the s u b j e c t , y o u no doubt w i l l be a b l e t o e n l i g h t e n me t h e r e o n ; i t i s in r e g a r d t o t h e system i n use in Germany* We quote in p a r t your r e f e r e n c e t h e r e t o : , n For a l l the boasted e f f i c a c y of (?erman f i n a n c i a l management,the N a z i government has adhered t o s t r i c t o r t h o d o x y in p a y i n g i n t e r e s t r a t e s on i t s o b l i g a t i o n s , c o n s i d e r a b l y h i g h e r than ours. 11 Now,what I do n ot q u i t e understand, i s the kind of o b l i g a t i o n s r e f e r r e d t o ; in what f o r m t h e y are i s s u e d ; d e b e n t u r e s , n o t e s or bonds? A l s o , a r e t h e s e o b l i g a t i o n s i s s u e d and h e l d by t h e g o v e r n m e n t , o r are they s o l d t o i n d i v i d u a l s ? Thanking you in advance f o r any i n f o r m a t i o n you may o f f e r on t h i s s u b j e c t , I am June 18, 1941. Mr. L. E. Hinnenkamp, Printing Specialty Company, Empire State Building, Spokane, Washington. Dear Mr. Hinnenkamp: I have your l e t t e r of June 10 with r e f erence t o my l e t t e r t o Congressman Patman of Texas. I am g r a t i f i e d t o have your approving comments. I t i s encouraging to know that some of those who read the l e t t e r f e e l that i t answered the points made by Mr. Patman. In regard t o your question as t o German finance, l e t me say that the German Government has been selling securities to the public in the orthodox fashion. Whether they are described as debentures, notes, or bonds i s , as you know, merely a matter of terminology. In any case, the government pays interest on these obligations that are sold to the public. I appreciate having your l e t t e r and your interest in writing. Sincerely yours M. S* Eccles Chairman. ET:b •>TT" JO ,, .->4'd 10 pJ®°8 llOTJJ''-' tf'U nO S / o«aiit0qD
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