View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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