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o. 131

Office Correspondence
Y q ________ Governor Eccles__________
From______ Mr. Clayton_____________


Date December* 19, 1934..

Subject? Charges against Governor Calkins,
of the Federal Reserve Bank of San Fran­
cisco, by Mr* A. P. Giannini, of the
Bank of America N. A., of California.

The interim report of the District Committee, Messrs. Miller
and Szyniczak, has been digested and shows the following conclusions
with reference to the various charges:
Charge No. 1?

Cooperation by Governor Calkins with the Walker-Morgan
group in Transamerica proxy fight, including partici­
pation in and approval of the publication of a vicious
personal attack on Mr. Giannini; also utterances re­
ferring to the "certain failure" of the Bank of
America; and also a conspiracy to bring about dismem­
berment of the Bank of America, N. T. and S. A.

Charge No. 2:

Governor Calkins failed to eooperate with Mr. Giannini
and his associates after they regained control of Bank
of America, N. T. and S. A., but on the contrary "pur­
sued harassing and destructive tactics with respect to
the bank".

Charge No. 5:

Governor Calkins endeavored to prevent reopening of the
bank after the holiday by submitting to the Treasury
Department "erroneous and misleading figures" on the
condition of the bank.

Charge No. 4:

That the Federal Reserve Bank disseminated daily re­
ports of the bank as to deposit accounts to unauth­
orized persons.

Charge No. 5:

That the Federal Reserve Bank bungled the shipment of
funds for the Bank’s Sacramento branches during a run
on 1/20/33.

District Committee’s Report: Evidence in the Board’s records to sup­
port the above charges unsatisfactory and inconclusive.
Charge No. 6:

Federal Reserve Bank on 7/25/34 improperly rejected
tenders by the Bank for F. F. Z>% bonds.

Charge No. 7:

That the Federal Reserve Bank in June, 1933, dis­
criminated against the Bank and greatly reduced its
subscription for Government bonds.

Memorandum to Governor Eceles— #2

District Commlttee,s Report? Not of sufficient significance to be
important except in connection with the preceding
charges as contributing to the entire picture.
Charge Ho. 8:

That the Federal Reserve Bank accepted only one out
of five hundred applications for industrial loans
forwarded by the bank.

District Committee^ Report: Governor Calkins states in his tele­
gram of lo/so/34 that the Bank of America had sub­
mitted only 52 applications. which it agreed to
share a portion o ' the risk. Of these 52, 14 had
been approved by the Industrial Advisory Committee
and 3 rejected. 53 applications had been submitted
by the Bank of America without participation by it
and of these 23 had been disapproved and 30 were
being investigated. Out of the total of 105 appli­
cations submitted, 41 had been disposed of and 64
were Still under investigation on 10/30/34.
Charge No. 9:

That the Federal Reserve Banks and/or the Recon­
struction Finance Corporation immediately employed
certain persons employed by the Bank of America
during control by the Walker group, who were let
out by the Giannini management.

District Committee’s Report: Governor Calking connection with
these matters is.not shown.
Charge No. 10:

That in the appointment of numerous boards and
committees by the Federal Reserve Bank and the
Reconstruction Finance Corporation there have
been included many California bankers but never
any representatives directly or indirectly of
the Bank of America.

District Committee,s Report: No evidence other than the statement
and Governor Calkins’ connection is not indicated.
Charge No. 11:

Governor Calkins, in resigning during 1910 from
the Mechanics Savings Bank of San Francisco, of
which he was cashier, stated that he would not
work for a "Dago” bank, referring to the acquisi­
tion of the above bank by the Bank of America.

District Committee’s Report:

Same as above and unimportant.

Memorandum to Governor Eccles— #8..

Charge No. IS:

That the Mechanics Savings Bank of San Francisco
was poorly managed by Governor Calkins, resulting
in both loss and assessments for the stockholders.

District Committee’s Report:

It has no bearing on the present situa­

The District Committee’s report is an interim report only and
states "the committee is giving consideration to the question of what
procedure is likely to prove most satisfactory and ascertaining the
facts with regard to these charges, and particularly to the question
whether it would be desirable to have formal charges and documentary
evidence presented by Mr. Giannini with a reply to Governor Calkins
and a formal hearing before the Federal Reserve Board or whether the
facts should be determined in a somewhat more informal way, while the
matter is still in the hands of the Board’s committee, through an in­
vestigation conducted in California by representatives of the Board
in such manner as may appear most appr6priate. Of course, a formal
proceeding before the Federal Reserve Board would of necessity involve
publicity and notoriety which the Committee feels should
be avoided if the matter can otherwise be handled in a satisfactory
manner." * * * "Accordingly, the Committee is rendering this as an
interim report pending the completion of its consideration of the
question what procedure in all the circumstances may be expected to
prove most satisfactory and desirable in ascertaining the facts with
respect to the charges made."