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F E D E R A L R E S E R V E B A N K O F S T. L O U IS
S T . L O U IS 2 , M O .

June 27, 1952

To A ll Banks in the
Eighth Federal Reserve District:

Most bankers will agree th at in face of the current Federal Government
deficit it makes sense to increase the flow of individual, institutional and business
savings into Government securities. The alternative, financing through the
banking system, would generate inflationary pressure at a time such as this when
we have virtually full employment of our resources. To m aintain the stability of
prices and economic activity that has generally characterized the past year-anda-quarter, it is necessary to intensify our efforts toward increasing non-bank
ownership of Government securities.
The T reasury’s revised savings bond program is a step in the right direction
and provides those in key positions with better ammunition to effect more sales.
You have recently received the joint statem ent by the Federal and State super­
visory authorities and the President of the American Bankers Association endors­
ing the T reasury’s new program. We w ant to add our own endorsement. We
urge each banker in this district to support the Treasury’s program and, in
particular, to bring to the attention of his customers the more attractive terms
of the new savings bond issues.
If the Federal Reserve Bank of St. Louis can be of service to your institution
in connection with the promotion of the T reasury’s savings bond program, please
do not hesitate to call on us.

DELOS C. JOHNS
President


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102