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• 153 BOARD OF GOVERNORS OF' THE FEDERAL RESERVE SYSTEM WASHINGTON S-58h ADDRESS DF"I'"ICIAL CDRREBPDNDENCE TD THE BDARD November 12, 19h2. Dear Sir: As you were advised in the wires from Secreta.ry (Jlorgenthau and from me dated November 11, i t is contem.pl.<:~tt;d that tbe activities of the Victory Fund Committees will be greatly expanded. • • • ... L1. connectlon with th.~.s expanded prograr.1 I should like to call attention to the meeting held i~ith the PreddGnts of the Federal Reserve Banks at the Carlton EotcJ. on September 2;:3 to discuss activities of the Victory Fund Comrrd.tteef3. At that meeting .r discu3sP-d at som~ length the progro?.rn of the Comrnittees and expressed the opinion. thBt since the System is vitally int.::rested in the :>ttccess of the selling program the Federa.l Reset'Ve Bar..ks would be jus·t:.ified in assuming certain expenses :i.n connection with the progra.11. It i.s contemplated that expenses of the kind referred to in the letter from ~/ir. Bell, LTnde!' Secretary of the Treasury, dated Septeinbcr 19, 1942, will be reimbursed by the Treasury Department although it now appears that to reimburse the Federal Heserve Banks in full for the expanded activities it vdJ.l be necessa.ry to obtain a deficiency appropriation. It is understood this will be asked for in due course. There are, howev~r, certain expenses whieh do not come within the terms of Mr. Bell's letter. In thif-3 connection, I refarred, at the meeting at the Carlton Hotel, to the faCt that th,:; Federal Re,;erve hanks had been able to f8cilitate the work of the CornaJ:i.ttees by providing luncheons and dinners at meetings and conferences at the Federal Re:::erve Banks and Brtmches and at other points ·Lhroughout their districts. The Board concurs in :11y statement that the Federal Reserve Banks a.re justified :in assuming the expenses connected with sueh meetings <Yhc,n in the opinion of the Presidents to do so would hc"lP to make the GovernmE·nt' s progra.~ a SUCC8SS, It was intended follov-ring the meeting at the Carlton Hotel to ""''""'""'"'..,.;;rve a committee: review the rp.wr:;tion of expenses connected with the Digitized • for FRASER .. ... . -2- .$'. .. It will be appreciated if you will l<:eep the Board advised C1lrrontly of important developments in connection with the expanded Victryry Fund program • TO 'l'HE PRF.E;IDENTS OF ALL FEDERAL RESEHVE bANKS ... .. 154 Victory Fund program and to make suggestions vri th re::>pect tO' E.xpenses that might be absorbed by the Federal Reserve Banks. In view of the urgency of the expanded program, however, ar1d of the di.ffictllty of getting the committee together, it has been tho1.:1.ght best to get a letter out to you promptly so that you would be informed of the views of the board at the beginning of the expanded program • • • S-52:1.~
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