The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
April 26, 1945. To Chairman Eccles From Governor Ransom The attached is Dr# Parry1s memorandum resulting froir. Mr. Y«ill Davis1 request of April 24. BDARD DF GDVERNDRS OF THE FEDERAL RESERVE SYSTEM Jffice Correspondence Date April &,1945 To Mr. Ransom Subject: Talk with Mr. Walter Salant From Mr. Parry of Mr. Davis1 Office. Following through on your request of Tuesday morning, I got in touch with Mr. Salant and he came to see me Tuesday afternoon and again Wednesday afternoon. He said that he had been on Mr. Davis1 staff only a week. On Tuesday he asked "What could be done by means of credit controls,11 particularly with reference to urban and rural real estate and on Wednesday "What could be done in those fields by means of credit controls without either new legislation or an Executive Order." On Tuesday I gave Mr. Salant a brief histejy of credit controls in general and the proposal (first brought to our notice in 1942) that they be applied to real estate credit. Mr. Salant listened to this history with close attention. He expressed special interest in (l) the fact that Mr. Vinson!s letter of January 1945 had asked what could be done "within the limits of existing law" and (2) in the technique that might be used in applying controls to real estate credit. On this second point, he took special notice of the idea of basing the down-payment requirement on the price paid for a given farm (instead of on some appraisal) and the idea that some means eculd be used to prevent the purchaser from borrowing the down payment. The question on Mr. Salant1 s mind seemed to be whether credit controls in the real estate field would be "administratively feasible." On Wednesday, when Mr. Salant asked about the use of credit controls "without either new legislation or an Executive Order," I told him that — since no power is now possessed by any agency to lay down rules of general application (supported by sanctions) — only the educational or "hortatoigr" approach could be used. He seemed to be somewhat disappointed, but listened with interest to my account of what haaalready been done along these lines for farm mortgage credit by the Farm Credit Administration, etc., and my explanation of steps which would be necessary to develop a similar campaign for urban mortgage credit. I told him that the patterns and methods used by FCA could best be learned from Mr. Edward C. Johnson of the Department of Agriculture and he said that he would see Mr* JohnsoEU To find a man, either in Government or outside, who would have a thorough knowledge of the urban mortgage industry and would at the same time not be altogether "promotionally minded" would not be easy, but the names of some men were suggested in the National Housing Agency, etc. Mr. Salant said he would be getting in touch with me again. I gpt little light from Mr. S&lant on how Mr. Davis1 mind may be running. It did seem, however, that in Mr. Salantfs view Mr. Davis Mr* Ransom -2- has not given up the idea of an Executive Order but is most interested at this time in finding some way of combatting inflation in real estate prices without either asking Congress for new legislation o£ asking the President for an Executive Order*
@FedFRASER