White House Press Release, Correspondence Between President Harry S. Truman and George E. Allen

#947 511 IMMEDIATE RELEASE DECEMBER 27, 1946 The President has sent the following letter to the Honorable George E. Allen of the Reconstruction Finance Corporation: "Dear George: I am indeed sorry to receive your resignation, but I quite understand the reason's which impel As you stated in your letter to me, you accepted appointment to the Reconstruction Finance Corporation with reluctance, and then only on the under- standing that I would not ask you to serve beyond a year. I have therefore no alternative but to accept your resignation, effective as of January 16, 1947. I am grateful to you for your service during the past year. You have been helpful to me not only in your formal post but in many instances in which I have called upon you for advice. To the members of the Board of the Reconstruction Finance Corporation I an indebted for their energy and foresight in the preparation of the report which you have sent mo and for their recommendations concerning the future work of the Corpora- tion. The report will receive my immediate consideration. You know, without any formal word from me, that I shall feel free, as the occasion may arisc, to call upon you for counsel. The best of luck to you in your future undertakings 1 Very sincerely yours, /s/ HARRY S. TRUMAN" Following is the text of Mr. Allen's letter to the President: NARA "Dear Mr. President: You will recall that on January 16, 1946, you asked me to accept an appointment to the Reconstruction Finance Corpor- ation for the period of one year. I explained to you my ro- luctance to enter public life but agreed to serve in that capacity for the period of time you requested. The year will be completed within a few weeks and I am therefore submitting my resignation, effective as of January 16, 1947. This past year has seen a rapid reconversion from war to peaco in the United States under your skillful and statesmanliko direction. In spite of the many obstacles thrown in the way, we have moved a long way since V-J Day on the road to a free peacetimo economy. The Reconstruction Finance Corporation has played its statutory and expected part in that transition period. We of the Board of Directors of the Reconstruction Finance Corporation, during the past year, have given much thought to the role which the Corporation should play in the inmediate future. We have spent much time and effort in preparing a detailed revaluation of the functions and operations of the Board. A report, representing the combined thinking of the Board of Directors, has been prepared in the form of specific recommenda- tions. We are submitting that report herewith for your considera- tion, and, if you deem it advisable, for submission to the Congress. These rocommendations are in form a proposed amendment to the Reconstruction Finance Corporation Act. In fact, however, they constitute a complete revision of that Act and of other legis- lation related to it. They simplify and consolidate into one enact- ment the provisions for the basic lending power of the Reconstruction Finance Corporation. They repeal all of the Corporation's extra- ordinary wartime powers and eliminate all peacetine powers which experience has shown to be now unnecessary. (OVFR)