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1938 •


Q. Mr. Secretary, can you asy arything about the bank examination study?
A. No, but for the first time I see daylight on it; we are going to have something j I think itfs going to be all right.
Q. When?
A* Well, Mr. Uphara had to go out of town for a couple of days and some of the
other people are out of town; itfs coming alopg aid I see we are going to
have something.
Q» Mr. Secretary, when you talk about seeing daylight, do you mean the majority
report or minority report?
A* I mean the report*
Q. Will there be two reports?
A. There will be one action.
Q. Will it cover all three agencies?
A. I hope so.
Q. Are you going to send both the majority and minority reports to the White
House, however, with your own report?
A. Oh, yes — give the President all the information — but there will be one
Q. When did you say t h i s might be reacfcr?

Oh, l e t 1 8 give them another week.

Q. When you say you see daylight, do you mean


I mean we are to be able to do something; up to now I wasn't sure we'd be
able to do axything.

— 2—
Q. What you mean is you see the chance of an agreement among all three agencies?
A. No, I see the chance for a step toward uniform bank examination.
Q. You were a little optimistic at first.
A. Yes, then it bogged down and I got discouraged but I am quite encouraged.
Q. Whatever you hope to get then will involve all three agencies? Would that
be a correct statement?
A. No, not necessarily. We may go ahead and one of the agencies may or may not
go alopg.
Q. For example, Mr» Secretajy — this is merely hypothetical — if the Federal
Reserve Board were not in agreement with the majority report and you string
along with the majority report and reported that to the President, would the
Federal Reserve Board be required to put into effect azy thing of that sort,
or could they go along on their own?
A. They could go along on their own.
Q. They could by legislation be required to f could they not?
A. Yes, but again on that same hypothetical basis, if you happen to have the
Federal Reserve Board, and if the Federal Deposit and the Comptroller decide
on joint action it doesn't leave mazy banks as far as the Federal Reserve is
concerned. If the State examiners and Federal Deposit and Comptroller all
agreed on an action it would take in most of the banks.
Q. Is there ary indication of one age m y not going along?
A. As Secretary of the Treasury, I've got to be optimistic so Ifm still hopeful
that we will get joint action.
Q. Your statement that the thing seems brighter and that daylight appears for
the first time


A. You will be askizjg what time the sun rises next.

- 5 Q. Are you referring to the fact that the State supervisors are working —
that's the latest development in connection with their working with the
Comptroller and Federal Deposit*
A. This is from that hypothetical friend —- from information I got Friday it
looks as though we would be able to move towards more uniform bank examination and that13 about as good as I can give you today.
Q. Can you say, Mr. Secretary, whether that step will also have aiy effect on
the availability of credit to small businessmen?
A. Not necessarily.
Q. Will your plan require legislation?
A. No.
Q. It would involve some relaxation, Mr. Secretary, would you say?
A. I donft want to qualify it.w