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FED ER AL RESERVE B O A R D WASHINGTON A D D M tt O FF IC IA L O O R R O P O N M N C K TO TH K PB M O tAL REMCRVK FO ARD X-9100 January £1, 1935 Dear Sir: There are inclosed a copy of a letter dated January 2, 1935, from Governor Schaller of the Federal Reserve Bank of Chicago to Mr. Szymczak, with reference to sending two officers of the bank out into the district to contact member and nonmember banks in the district on industrial loans and other matters, and a copy of the Board's reply thereto. It will be appreciated if you will present this correspon dence to the board of directors of your bank and advise the Federal Reserve Board of your directors' reaction to the question of inaugurat ing a similar program in your district and as to any suggestions they may have to make as to topics which could be discussed by the representatives of the Federal reserve bank with banks in your dist rict if the program wore adopted. Very truly yours, Inclosures Chester Morrill, Secretary. TO CHAIRMEN OF ALL FEDERAL RESERVE BANKS EXCEPT CHICAGO FEDERAL RESERVE BANK OF CHICAGO 230 South LaSalle Street January 2, 1935. Honorable M. S. Szymczak, Member, Federal Reserve Board, Washington, D. C. Ify dear Mr. Szymczak: We are considering placing possibly two of our of ficers, a deputy governor and an assistant deputy governor, out in the district after January 15, 1935, to contact not only our member but our non-member banks. Our thought is to bring to the attention of bankers generally the facilities of this bank always available to members, including industrial loans, and also to encourage a thorough canvass of their local communities by the home bank to find if any desirable outlet may be developed for the employment of their funds in their home community. We expect to gather data for our own use as to not only the banks bub the general conditions, and I am writing to ascertain, if possible, whether you or the Board have in mind anything that you might wish us to include in a canvass of this kind. Awaiting your advice, I am ' Very truly yours, (Signed) G. J. Schalier, X -9100-b Copy January 16, 1935 Mr. G. J. Schaller, Governor, Federal Reserve Bank of Chicago, Chicago, Illinois. Dear Governor Schaller: As you were advised by Mr. Ssymczak on January 4, your letter of January 2, in regard to sending out a Deputy Governor and an Assistant Deputy Governor after January 15 to contact member and nonmeraber banks in your district, has been brought to the attention of the Board. It is noted that it was your thought to bring to the attention of bankers generally the facilities of your bank that are altvays available to members, including those relating to industrial advances; to en courage a thorough canvass of their communities by local banks so as to find whether any desirable outlets may be developed for the employment of their funds? and to gather data for your own use not only as to the banks but as to general conditions. You asked whether the Board has anything in mind that, might be included in a canvass of this kind. The Board is in sympathy with the purpose cf the program you have outlined and feels that it should result in a better understanding of mutual problems by your bank as well as by member and nonmember banks in your district. In addition to the subject of industrial advances which it is assumed your representatives will discuss with officers of the bank X -9100-b Mr. G. J . S c h a lle r - #2 from the standpoint of the participation of such banks in the making of working capital loans to worthy enterprises and such other subjects as may present themselves from time to time as bearing on general banking and economic conditions your representatives might discuss with the bankers whom they visit the following subjects: ' 1. Rates of interest paid on the various classes of time deposits. 2. Trend in rates on loans to customers. 3. Advantages of the loan provisions of the Housing Act. 4. Membership in the Federal Reserve Sjystem. 5. Clayton Act permits. 6. Government financing. 7. Insurance of deposits. 8. Proper method of valuing assets in published condition reports. Your representatives might also develop any suggestions which the bankers whom they visit may desire to make as to general policies of the Federal Reserve System in which they are interested. When you feel that the proposed activity has progressed sufficiently to enable you to do so, the Board would appreciate being advised as to the information obtained and as to any conclusions that you feel can be drawn from it. Very truly yours, (Signed) Chester Morrill C h e ste r M o r r i l l , S e c r e ta r y .
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