ROOSEVELT ON FEDERAL CREDIT UNIONS AS A SOLUTION TO PERSONAL DEBT. ROOSEVELT, FRANKLIN D. 1885-1...

ROOSEVELT ON FEDERAL CREDIT UNIONS AS A SOLUTION TO PERSONAL DEBT. ROOSEVELT, FRANKLIN D. 1885-1945. Typed Letter Signed ('Franklin D. Roosevelt') as President, to A.J. Kruse of the Associated Retail Credit Men mentioning the Home Owners' Loan Corporation (HOLC), the Federal Housing Administration (FHA) and the Farm Credit Administration (FCA), 2 pp, 4to, Washington, D.C. June 25, 1935, on White House stationery, with original transmittal envelope; with a typed carbon of Kruse's June 8, 1935 letter to Roosevelt; some age toning and smudging to all. 'THE HONEST FAMILY WHICH SPENT ALL ITS SAVINGS AND INCURRED PERSONAL DEBTS RATHER THAN TO CALL UPON PUBLIC RELIEF DESERVES THE MOST CAREFUL CONSIDERATION FROM ALL OF US.' Roosevelt responds to a letter from A.J. Kruse, manager of the Associated Retail Credit Men and Credit Bureau of St. Louis (a copy of which is present here). Kruse's letter praises the work of the Home Owners Loan Corp, a New Deal program that helped homeowners stay in their home, but asks why the government isn't doing more for citizens in the current economic crisis who do not own their own homes? Kruse writes, 'in recent years due to unemployment and financial burdens being of major importance, we feel that which has been and is being accomplished for the home owners and the business men of America should also become a reality with our average American citizen who is neither a home owner nor established in business for himself.' Kruse's argument is that the failure of the government to help non-home or business-owning citizens is hurting the economy, as those people are spending their limited money on food and necessities, and not other goods and services the American economy has to offer. On the second page, Kruse outlines his loan plan for the payment of debts for people who, under normal circumstances, would have satisfactory credit reports, with the payments capped at no more than 10% of income and with a period of 3 years allowed for repayment. By allowing these citizens to pay off lingering debts at reasonable rates, businesses can be made whole and the debt-burdened citizens can rejoin the spending economy. Sounds like a good idea, right? So good, FDR already thought of it. After patting himself on the back for the Home Owner's Loan Corporation (HOLC) and FHA lines of credit for home improvement, Roosevelt writes, 'It has perhaps not come to your attention that we have provided, in the Farm Credit Administration, legislation for Federal Credit Unions, which are being organized not only in rural communities but in groups of employees everywhere. These Federal Credit unions are rapidly providing an orderly method for the liquidation of the small debts which honest families have accumulated while out of employment, as well as providing for emergency credit of the same character in effort to put the commercial banks of the country in a position to make personal loans to honest families so that these debts may be paid off over a reasonable period and so that such families may, at the same time, be able to make substantially their usual purchase. In view of the great financial assistance and credit resources which the Government has already placed at the disposal of private lending agencies, it seems to me the public has a right to expect them to now make credit available wherever it is needed and may be extended properly.' Roosevelt closes: 'The honest family which spent all its savings and incurred personal debts rather than to call upon public relief deserves the most careful Consideration from all of us.' The Associated Retail Credit Men and Credit Bureau of St. Louis was a member of the National Retail Credit Association, an organization dedicated to nurturing the expanding retail credit business in the early 20th century. For further information on this lot please visit Bonhams.com For further information about this lot please visit the lot listing