INDEPENDENT AUDITORS' REPORT


To the Board of Directors and the Shareholders of
Federated American Leaders Fund, Inc.:

In planning and performing our audit of the financial
statements of Federated American Leaders
Fund, Inc. (the "Fund") for the year ended March 31,
2004 (on which we have issued our report
dated May 14, 2004), we considered its internal
control, including control activities for
safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with
the requirements of Form N-SAR, and not to provide
assurance on the Fund's internal control.

The management of the Fund is responsible for
establishing and maintaining internal control.  In
fulfilling this responsibility, estimates and judgments
by management are required to assess the
expected benefits and related costs of controls.
Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented
in conformity with accounting principles generally accepted
in the United States of America.  Those controls include
the safeguarding of assets against unauthorized acquisition,
use, or disposition.

Because of inherent limitations in any internal
control, error or fraud may occur and not be
detected.  Also, projections of any evaluation
of internal control to future periods are subject to
the risk that the internal control may become inadequate
because of changes in conditions or that
the effectiveness of the design and operation may deteriorate.

Our consideration of the Fund's internal control would not
necessarily disclose all matters in internal control that
might be material weaknesses under standards established by
the American Institute of Certified Public Accountants.
 A material weakness is a condition in which the design
or operation of one or more of the internal control
components does not reduce to a relatively low level the risk
that misstatements due to error or fraud in amounts that would
be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees
in the normal course of performing their assigned functions.
However, we noted no matters involving the Fund's internal
control and its operation, including controls for
safeguarding securities, that we consider to be material
weaknesses as defined above as of March
31, 2004.

This report is intended solely for the information and use
of management, the Board of Directors and the Shareholders of
Federated American Leaders Fund, Inc. and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone
 other than these specified parties.

DELOITTE & TOUCHE LLP

Boston, Massachusetts
        May 14, 2004