The New Deal
Hoover - Roosevelt Exchanges
ROOSEVELT TO HOOVER
March 1, 1933
I am dismayed to find that the enclosed which I wrote in N.Y. a week ago did not go to you, through an assumption by my secretary that it was only a draft of a letter.
Now I have yours of yesterday and can only tell you that I appreciate your fine spirit of co-operation and that I am in constant touch with the situation through Mr. Woodin, who is conferring with Ogden and with various people in N.Y. I am inclined to agree that a very early special session will be necessary—and by tonight or tomorrow I hope to settle on a definite time—I will let you know—you doubtless know of the proposal to give authority to the Treasury to deposit funds directly in any bank.
I get to Washington late tomorrow night and will look forward to seeing you on Friday.
49 East 65th Street
Feb. 20, 1933
I am equally concerned with you in regard to the gravity of the present banking situation—but my thought is that it is so very deep-seated that the fire is bound to spread in spite of anything that is done by way of mere statements. The real trouble is that on present values very few financial institutions anywhere in the country are actually able to pay off their deposits in full, and the knowledge of this fact is widely held—Bankers with the narrower viewpoint have urged me to make a general statement but even they seriously doubt if it would have a definite effect.