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TH E COMPANY W ILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE 1201-S J----------- V . C l a s s o f S e r v ic e T h is is a full-rate Telegram or Cable gram unless its de ferred character is in dicated by a suitable symbol above or pre ceding the address. WESTERN U N IO N NEWCOMB CARLTON CHA IRM A N O F T H E BOA RD f t. B . W H IT E P R E S ID E N T J. C. SYM BO LS WILLEVER F IR S T V IC E -P R E S ID E N T DL = Day Letter SER = Serial NM - - Night Message NL = Night Letter CDE = Code Cable LC = Deferred Cable NLT = Cable Night Letter Ship Radiogram The filing tim e shown in the d ate line on telegrams and day letters is STANDARD T IM E a t point of origin. Time of receipt is STA ND A RD T IM E a t point of destination. Received at f~3 w m tws paid 3 ^ * / ' -: t Wux Los Angeles Calif 1018a Nov 24 Lawrence C Clayton Asst to Chairman Marriner S Eccles Washn Wired A 0 Stewart last night Mayflower Hotel and reported this morning wire undelivered stop passed on to Governor Eccles stop Wire contains suggestions to be Have asked to have wire delivered to you and you are authorized to handle as if addressed to you Regards A P Giannini 144 PM WESTERN UNION MESSENGERS ARE AVAILABLE FOR THE DELIVERY OF NOTES AND PACKAGES November 27, 1956 Mr, A. F. Giannini Bank of America 1 Powell Street San Francisco, California Dear Hr. Giannini: This will acknowledge your wire of ISovember 24th which came shortly after I had received frost the First Boston Corporation a copy of your wire to Mr. Stewart who had left for H t York. The naiaes contained in your wire ©. will be given consideration in selecting an additioual di rector for the Io ! Angeles Branch of the Federal Reserve .f Bank of San Francisco. Yesterday afternoon at the Burning Tree Club the Chairman and I got into & three cornered discussion with Bob Fleming rsgarain£ real estate mortgage 'leading oi banks. It appears that the present top officials ol v the ABA are not fully aware of the threat to the entire banking structure represented by the attitude of the building and loan and mortgage banking forces in their insistence that the author ity of the Housing Administration to insure real estate loans be not extended. If they can get by Kith this the banks will then be limited to sixty percent loans with ten year matur ities. The mortgage bankers and the building and loan people will then offer seventy or seventy-five percent leans with fifteen or twenty year maturities and will thur get most of this business. This is, of course, only half' of the story. By offering to loan a higher amount on a given property with longer maturity they will command a higher interest rate. This in turn will permit them to pay a higher rate for their funds than can possibly be paid by commercial hanks. The con clusion is inescapable. Savings will be gradually drawn into the building ana loan societies and into mortgage loan com panies selling participations in mortgage notes. Of course, orthodox bankers are not alarmed by this. Like the ostrich they have their beads in the sand, refusing to see the trans formation that has come about in the lending and investment field of the banking system 6f today. S r A. P. Giannini - 2 f. This is all the same problem that I recommended to you some two or three weeks ago as a pressing and profit able subject for study by the ABA. Bob Fleming is becoming alive to this situation if he ras not already alive to it, and said that ho expect'd to 'phone you and urge your per sonal attendance at the Ser York meeting. I feel it is im portant for you to be there so that the ABA will take prompt and effective action to rally banking sentiment on the side of continued and increasing mortgage lending by banks. This is only one field of the battle ho’ever. A campaign must likewise be waged on Capitol B-.ll ue to that, my personal end confidential opinion is that people hereabouts will do their best. With kindest personal regards, I am Yours sincerely, Lac.rence Clayton ABBifc'i&nt to the Chairman LC/fgr
