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8-40 BOARD OF" GOVERNORS 4?4 OF THE FEDERAL RESERVE SYSTEM WASHINGTON ADDREBB CF'F'ICIAL CCRREBPCNDENCI: TC THE BCARD October 29, 1937. Dear Sir: It appears that 'inee the Reconstruction Finance Cor~oration, in accordance with its program, mq not grant any further commitments to make industrial advances and may not make any more industrial ad- vances, except under commitments heretofore granted, the Federal Reserve banks may rece~ve a mUch larger number of requests for industrial advances or commitments to make such advances thru1 has been the case in the recent past. The Board hopes that sympathetic con- sideration will be given to such applications as are received and that advances will be made where the tanks can consistently do so under the provisions of the law and tho Board 1 s regulations. Mr. Szymczak has already talked with an official of your bank over the telephone and acquainted him with the Board's position in this matter; he has also been in touch with Washington officials of the Reconstruction Finance Corporation and he requested the representa ti ve of your bank wi tb whom he talked to get in touch vd th the local Reconstruction Finance Corporation agenc,y with a view of working out a procedure b,y which all worthy applicants will be referred to the Federal Reserve bank. 475 S-40. -2- For obvious reasons the Board does not think it desirable a.t this time to conduct a campaign on this subj act, but it hopes that particular pain$ will be taken to guard against the public getting the impression that the Federal Reserve S,ystem has also discontinued making industrial advances. may think it desirable ~o In this connection you talk with representative bankers in your district from time to time with respect to the facilities in this field which the Federal Reserve banks have to offer. Vcry truly yours, Chester Morrill, Secretary. TO PRESIDENTS OF ALL FEDERAL RESERVE BANKS •
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