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The First State Bank •HINT IN FENNIMORE R . J. C A M P M U L OSO. F . PRANTZ A. K M N N I T H KKRN JOHN N . KRAMER FENNIMORE, WISCONSIN L . A. I HAROLD PLATTNBR December 1 9 t h , 1947 Mr. M. S. yEcclea, Chairman Board o f Governors F e d e r a l Reserve Sfptem Washington, D. C# DearSir * I have r e c e i v e d your l e t t e r d a t e d December 1 5 t h i n answer t o my p r e v i o u s l e t t e r and w i s h t o thank you f o r your prompt ref>ly« However, i n your l e t t e r you f a i l t o answer s e v e r a l q u e s t i o n s t h a t I r e a l l y would l i k e t o have answered. I have made a s t u d y o f your r e s e r v e program and w h i l e I f e e l i t has some b e n e f i t s I a l s o f e e l t h a t the hanks as a whole s t a n d t o l o s e a g r e a t d e a l o f customer g o o d - w i l l i n case we are p u t i n a p o s i t i o n t h a t we are unable t o g r a n t loans f o r l e g i t i m a t e p u r p o s e s . I p a r t i c u l a r l y wanted you t o answer i n w h i o h way you would be able t o t u r t a l l the Government l o a n a c t i v i t i e s such as the P r o d u c t i o n C r e d i t A s s o c i a t i o n s , t h e F e d e r a l Land Banks and v a r i o u s o t h e r F e d e r a l Loaning A g e n c i e s . I a l s o wanted you t o answer what c u r t a i l m e n t s you w o u l d have over the l o a n i n g a c t i v i t i e s o f L i f e Insurance Companies and Finance Companies. I can see no b e n e f i t i n r a i s i n g the r e a e r v e r e q u i r e m e n t s o f hanks w h i c h r e t a r d s our l o a n i n g a c t i v i t i e s w h i l e the o t h e r l o a n i n g agencies c o n t i n u e on f r e e l y i n t h e i r r e g u l a r course o f b u s i n e s s . I t just d o e s n ' t make sense t h a t a l e g i t i m a t e b o r r o w e r i s r e f u s e d a l o a n by a bank whereas, he can go t o some o t h e r l o a n i n g agency and h f g r a n t e d a l o a n . I n t h i s p a r t i c u l a r case I canJt see L^A. JOHN W . KREUL, VICE PRU. A . K E N N E T H K E R N . CASHIER The First State Bank ( N R . J. CAMPI OEO. W, F R A N T Z A * KENNETH " " W JOHN N . K R A M E R JOHN W . KREUL FENNIMORE C L I O RAMSOUR. A S S ' T CASHIER FENNIMORE, WISCONSIN h^^™** -2- Mr. Ms S. E c c l e s , Chairman December 1 9 t h , 1947 hhw we have accomplished a n y t h i n g o u t s i d e o f h a v i n g the man f e e l r e s e n t f u l t o w a r d the bank i n t h a t h i s l o a n a p p l i c a t i o n was r e f u s e d . I t d o e s n ' t mean a n y t h i n g t o the i n d i v i d u a l borrower i f we e x p l a i n t h a t because o f r e s e r v e r e q u i r e m e n t s we are unable t o make t h i s l o a n because t h i s i s something he d o e s n ' t u n d e r s t a n d . He remembers o n l y t h a t he was t u r n e d down and r e f u s e d a l o a n by h i s bank and i f you m u l t i p l y t h i s s i t u a t i o n many f o l d you know t h a t aoomer o r l a t e r t h e r e w i l l be a g a i n r e q u e s t s f o r more F e d e r a l Loaning A g e n c i e s . You a l s o f a i l e d t o answer my q u e s t i o n r e g a r d i n g the n a t i o n a l i z a t i o n o f b a n k s . I know i t i s a g e n e r a l f e e l i n g among Dangers t h a t t h i s i s the f i r s t s t e p t a k e n by the Government and your Board of D i r e c t o r s i n t r y i n g t o f o r e e the banks i n t o t h i s program. I w i l l a p p r e c i a t e h e a r i n g f r o m you f u r t h e r the unanswered q u e s t i o n s I have r e f e r r e d t o . Yours v e r y LAL :MEH truly, regarding
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