The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
CHARGE T O THE ACCOUNT O F Ellas A Smith Loan Agency Reconstruction Finance Corporation Federal Reserve Bank Salt Lake City Utah Please wire first thing tomorrow verbatim contents your wire to Senator Glass Thanks and regards Lawrence Clayton Night Message Ctargeto Federal Reserve Board* LOAN AGENCY OF THE RECONSTRUCTION FINANCE CORPORATION Salt Lake City, Utah April 16, 1935 AIR MAIL Marriner S. Eccles, Governor, Federal Reserve Board, Washington, D. C. My dear friend Marriner: I ail enclosing herewith copy of a telegram which I have sent to Senator Carter Glass today, endeavoring to correct an error which occurred in a letter of mine dated January 3, 1934 to the Examining Division of the Reconstruction Finance Corporation relative to The First National Bank of Salt Lake City selling to the RFC $250,000.00 of Preferred Capital Stock* In transmitting my letter the word "Debenture* was used by mistake instead of Preferred Stock* The only way that I can account for it is that we brought into the Agency about that time a new Examiner who wrote this letter and, evidently, did not fully consider the difference between Preferred Capital Stock and Debentures. In reply to my letter of the above date, I received the following telegram on January 15, 1934.: "Board today conditionally approved $250,000.00 Preferred Stock First National Bank, Salt Lake City, Utah. Stop No publicity should be permitted until resolution received by Agency. KLOSSNER." We received on January 26th the resolution of the Reconstruction Finance Corporation regarding the subscription of the purchase of #250,000*00 of Preferred Stock and, at a later date, the stock was issued and the money paid over by the RFC to the credit of The First National Bank of Salt Lake City. I regret very much that the error occurred, but trust that it will not in any way embarrass you - and it should not* I cannot for the life of me see how this should have any influence with the Senate in confirming you for the high position to which you have been appointed. The only question should be your ability to fill the office and I am sure that all your friends feel you are ful^y qualified. With kindest personal regards, I am, Very respectfully, Enclosure Manager April 10, 1335. My dear Senators Xou will recall that Huring the testimony last Monday, Senator Glass stated that the First National Bank of Salt Lake City had applied to the Reconstruct!on Finance Corporation for the purchase by the latter of $250,000 of debentures and that they were not issued for the reason that the application was never approved. Xou will probably also recall that I could not understand such information as the bank in question had applied for preferred stock in the same amount, which application had been approved, and for the further reason that national banks would not apply for denatures as they could issue preferred stock under the law. In order to clear up this situation and to answer the innuendo contained in Senator Glass1 statement that the application was never approved, I had inquiry made at the Salt Lake Loan Agency of the Reconstruction Finance Corporation regarding the purported application for debentures. In answer ay office has received a telegram, copy of which is enclosed, from ELias A. Smith, Manager of the Agency, who was ruoted by Senator Glass as the authority for the misstatement. Sincerely yours, (Signed^ >;], S, Eccies M. S. Eccles, Governor. Honorable James F. Byrnes, Subcommittee of The Committee on Banking and Currency, United States Senate, Washington, €. Enclosure. IC/lea R E C E I V E D BY P R I V A T E WIRE FROM POSTAL TELEGRAPH « S T A N O A R D TIME I N D I C A T E D IN THIS M E S S A G E Tostal Telegraph TU* !• • full rate Tafaftnun « r Cehienrmw « THE INTERNATIONAL SYSTEM Commercial Cables ail Qmtrica Cables DL DAY LETTER NL NIGHT LETTER NM NIGHT MESSAGE LCO DEFERRED C A B L E NLT NIGHT CABLE LETTER WLT W E E K E N D C A B L E LETTER TUackay tk, erica 2P00T 114 collect govt 1 extra m Fonn I f P . V SaltLake Utah 935a APril 17 1935 Lawrence Clayton, federal Reserve Board# following wire sent to senator Glass sixteenth ^ u o ^ T?on# carter Glass.: united states senate Washington DO advised during hearing regarding i^ccles confirmation yesterday you stated First National Rank of salt Lake City made application to the R *p c to purchase its debentures in the amount of two hundred fifty thousand dollars stop ::o such application ever made through this Agency stop Fowever application made to corporation to purchase two hundred fifty thousand dollars preferred stock of this bank which was approved and consummated stop My letter of January third nineteen thirty-four transmitting preliminary application was in error in using the word debentures instead of preferred stock evidently accounting for the confusion in your information mrnVOfVTtm ^lias a. smith Manager salt Lake loan Agency RT^C 134pm Salt Lmk.0 OtXj, Utah kpril Tia zmnm X6 # 1935 xmrn Straight $£aaaaga HON. CkFHR (Ea33 statss sskatk WA^XJIGM, D« c. mrsm AOT3SD SOWSD HIKING ROBBING ECCLED OOHyiHU-vTIOK Y1STSHD4Y YOU 31UT..D FIRST H4T10» X B^HK OF SALT UXK C1TT MlDE ' TLIC4TI0N !0 IKE HFC *0 F0BSH\SE 1T3 DlQBtTUHES IN THE iMOUWT OF no HUNDRED FIFTY WtiSUID OLU8S SfOP EvDE THPOUGH OT© A&SQT STOP 80 SOCH APPLICATION I9T® HDVEVSR iUFPLiaiHOH 1&13S IX) CORPORATIOH W PUBCH4SI TWO ROKDRED FIFTY THCCB5AHT) COllABS THIS l^JK -/HIGH MAS APPROVE AND OOmWm:?m f FXRRJ® STOCK OF STOP MY U^TTO OF JAJRUftf -JIXBD MXJinYE3 IHIOT FOUR TH^MITIING PR'.LIMIIUHY APPLICATION IN EBBQR IH m t m THE WOHD DPssmoras XHsm& OF PRtfJ^BED STOCK, OTDBHTLY . CCOUNTIBO FOB THE GOITOSIOK IN OT npoiaimoM. e l u ~ 4. 3 & t h , wmiokr SALT LAO LOAB .\anar, HFC Gharga to: Salt Laks Loan Agouqr, RFC, 307 Firat national Bank 8ia«., Oorevmimt Rata * Tax Exaapt, April 19, 1955, Mr. Liias A* Smith, Manager, Loan Agency of the it. F. C», Salt Lake City, Utah. My deax* Ellas* I ®ish to thank you for your letter of April 18th enclosing me a copy of the telegram which you sent to Senator Carter Glass relative to the first National o&&k of Salt Lake, I feel the telegram fully covered the situation and assure you that I greatly appreciate your assitance in this regara. With kindest personal regards, Sincerely yours, J&i S b
@FedFRASER