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April 7, 191*2. To - Mr* Bell From - Mr. Socles As you suggested, I am sending you herewith the letter addressed to the Secretary about which I spoke to you on the telephone this afternoon in connection with the suggestion that the limit on Series F and 6 bonds should be raised from #50,000 to #100,000. Enclosure April 7 # Bsmr floury t In rqplj to ft r«^u«st from Jfr. Bell, X aa submitting ssy TIOWO on tho st^gootloa that tho l i m i t on $«rl#» f wad 0 bonds •houl.i oo r&isod from f50,000 to |XO0#C00» I fool oorttdn that tho sioafcors of tfce Board *e woll as tho ftnttldsatt of tho ftoeorro Sft&k* w&uld agr«« w!th my pa*ttlon # «1BO« sy IIn« with « ® «sp«ot of the e«r«ttle»ti«ii »#at t o fm an m A e&py of feis eoejmieatiMi I s «nolo»«d. queetioa of inor«ikSlK^; th« l l a i t F a^<t Q bonds thtuld be d«f«rr«d p«Rdlag d^eleio t#rm ito^-sarlc«t*bl# l««u« which tb» F#dwmX itewwnr for thi# p o r t i o n »»jr *• tiMMiriMNl *« (1) fh# 2 l/Z per e«nt rat© carried by X^»y«ar F and § bend* 1* a tubtidy r»t# 4*aig^id prliaarily for «nall «aT©r»» Fifty 4 # l l a r i 1® ®#rta4niy not too |ow * limit for this t/p# of (£) Tho issuo propote^ by tla» Fvdaral H#««rvi» would the Faturtty to »i^h,t©*n y«ar« »c4 rvaorw tho tubwi^y foattiro. I t eould, ^j»r«for«, haw a muofc hi(h«r U n i t * In flaet^ tho slollar 3is?il proy*m»4 cou!4 latar »o raio^d or r«»o"r#4. Tho rosed Isifto would, thorofore, *o rooh farth«r i » ifeootlsg tho d«rtuid than would an inoro**o t o 1100*000 for P and a bondi. tho l&»yoar 2 l/2 par oont mm^mrk»% is^uo wo would ooc^Mito nueh loos with lc**£-t#m op«QHa&rkot l««y©» whloh you say with to offer fro» t l e » to ti&e* twolro yoar Z 2/2 ^or oomt bonds of tfeo F aM • tgrpo9 If fe# l i m i t b# ral«o4 t o f 100*000, would definitely eompoto with opOfNaarkot isftuoa* H*o l@«yoar is&uo wo propoM, on tho ^tlior hamd, would bo at 2 ly^ por oont snuoh olo»«r t o tho «arlB»t aad would not oonpoto on a profontttial basis with l tora Qpmto^mrk&t i s s u e s . As you kn<m0 I am rroatly IS) f«cvw of rosortlng to B«m-«»rk»t l$eit«s« I boll«T«, l»owoiror.9 for tt*« roasoms stated, that tho ptirpeto would bo aoeomplishod «meh utoro amtisfao* fion<Wftbl» H«nry Korfo&taum, 3r» ~2» April 7» proposed in our m«Biorandaei# tttan tgr imi«l&g the limit on F Q bonds# your*, 6«or*taiy of the 18^thinrton, & C* »
