The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
First Estimate of Desirable Products of Pilot Project Preparatory work for a comprehensive study of the Federal Reserve 3ystem"Papers which will form the source material should be located, classified, and roughly analysed. Important characters in the drama should be sought out, t h e i r cooperation asked, and their interest enlisted. The dimensions and proportions of the comprehensive study should be sketched and i t s p o s s i b i l i t i e s bulked out. The exploratory study would at least hope to answer the basic questions, "What?" "tfhere?11 andttWhom?11"( To which add "SHen?") To that end, these fe f i l e s must be b u i l t up 1, Bibliography of printed soujrirce material, both primary and secondary, incjudin^, in addition to the usual bibliographic material, indication as to where i t can be found, and where needed, some summary as to contents. At least 1915 to date Federal Reserve Board Reports, 1915 to date. Regional Bank Reports " " " Member Bank Reports " • " Congressional Hearings bear$ngjff on the System Senate Banking and Currency Co mittee House Banking and Currency Committee etc. Presidential Messages bearing on the System Any other executive repofcts Legislation pertinent to the inquiry FederaW4arket Committee Reports Treasury Reports Comptroller of the Currency Reports Official and Unofficial Histories of the System Mbnographs Periodical Material, e t c . 2m Bibliography of material th<L8 far unpublished including name of author, type of material, heading under which i t comes, condition, where located and under whose j u r i s d i c t i o n , degree of a v a i l a b i l i t y , e t c . Diaries Corresponfence, both official and personal Unpublished reports Memoranda Manuscripts Obviously t h i s material, an essential sector of the project, can hardly be guessed at u n t i l inve^tiga^ion3 get under way. I t s classifications should g g expand'ai i t is discovered. Only wher. t h i s material i s »ur«eyed, however roughly, oan one begin to aaice reftftmnmidations as to papers which should be' edited, biographies to be written, monographs to be prepared. - 5« File of Persona, 1915 to date- this to include, or better, to start with the U3ual bidgrajlic date available in tfho's vino— nfwoe, dates and place of birth, (and death dates where known) parentage, education, marriage, family, career, System experience, affailiations (Club political party, religion etc.) —everything which can ahed light on the individual, the training he brings to the System, the sources of his activity, the period and the form of his importance to the System* What papers has he? Should he be interviewed early? V/here are his papers? Classified or raw? Will he give permission to have them roughly surveyed and classified? If deceased, who has papers? Condition and availability? Permission to survey, classify, use? This file should include at least the following categories of people Governors and officers Federal Reserve Board (1915 to date) Members Open Market Committees Presidents Regional Banks Members Senate and House Banking and Currency Committees Presidents USA 3ecr aries of Tneasury Comptrollers of Currency Others pertinent to the inquiry 4. File of Years - 1915 through 1955 " this to be a cross file for ready reference , with cross-indexing not only to the other three f i l e s , but alsocontaining an account of public events, political,uubc economic and diplomatic which bear on the inquiry; an an account of System events which are partiaant, both executive and legiilative. __^ Out of t h i s Years File should emerge cluster points for special study which will be essential in formulating the bulk and proportions of the comprehensive study which is to follow the pilot project —for example 1915 and surrounding eventsleading to the Federal Reserve 4 First experiences in warfinancing " Foreign financing - Federal Reserve and the depression e t c , etc. proportionspf the comprehensive plan, and some sketch of i t s p o s s i b i l i t i e s . Proposal for an exploratory project looking toward the collection, appraisal, editing and use of historical materials on the Federal Reserve System* The rapid changes which are now characteristic of the American economy make it difficult for useable records, much less readable history, to keep up with them. Yet it is more than ever vital that not only should results be known and understood, but that the path by which those results were reached be made clear. This truism is nowhere more important than in central banking* The Federal Reserve Systemfs functions are essential to efficient operation of the American economy, yet the System is less understood than the industrial commercial and financial operations which it so much influences. The System has been built and rebuilt during the past four decades, but what happened has not yet been adequately recorded* Unless this work of examining what has been done and setting it down in readable form is begun soon, a vital section of financial and economic history in the United States will be lost. The papers which would be needed in source material in wtiting an adequate history are scattered between government, banking and private files* It is not even known what exists, nor where some of what exists could be found* The men who have acted as architects and builders of the present Federal Reserve System are already beginning to disappear* Garter Glass and Governor Strong, for example, are dead* Others are reaching retirement* Those living, whose memories form a most valuable supplement to any papers which they may have, should be approached and asked to contribute personal knowledge and access to papers before it is too late. Only exploration can reveal what can be made available. But a number of important possibilities exist* Governor Strong1s papers have been worked to only a very limited degree, and can yield much more* There may exist at J*P.Morgan some papers of S. Parker Gilbert, and possibly others* E* A. GoMenweiser may have left an important collection. Charles Hamlin left a collection of diaries which have not been examined* Congressional hearings and debates can yield much material and probably important clues. 2* Among the living there are important memories and doubtless important collections of papers. Among those who sould certainly be covered are Walter W. Stewart, W* Randolph Burgess, George L« Harrison, Hoy A* Young, Robert V* Fleming, Eugene Meyer, Daniel ¥• Bell« Investigation would go much farther* The end product toward which this project is directed would be a comprehensive history of the Federal Reserve System, including the editing for publication of certain source materials, the writing of biographic sketches of some of the most important figures, the composing of books or monographs on special facets of the structure which emerge as of particular interest, and perhaps a popular history or two designed for wide public reading* Obviously such a comprehensive design would be a considerable undertaking, to be carried on under the direction of and with the active participation of an experienced specialist in this field* There are reasons to believe that Mr* Randolph Burgess, who has already contributed important volumes to the basic bibliography of central banking, might be persuaded to undertake this role when he relinquishes his present post in the Treasury* Meanwhile a great deal of preparatory work is needed before such a comprehensive study of the Federal Reserve System could be started. It is that preparatory work which is the subject of this proposal. Papers which will f o m the source material should be located, classified, and roughly analyzed. Important characters in the drama should be sought out, their cooperation asked, and their interest enlisted* The dimensions and proportions of the comprehensive study should be sketched and its possibilities bulked out* The exploratory study would at least hope to answer the basic questions, "What?" "Where?" and "Whom?" Genesis of the project An added factor which presses for a quick start is that such a project has, in one form or another, been quietly bubbling in the minds of several persons* Its present active form began with Mr* Donald Woodward, recently Vice President of the 3. Mutual Life Insurance Company, present Finance Chairman and Director of the Vick Chemical Company. Mr. Woodward, •whose career includes work for and about the Federal Reserve Board, discussed the idea with Dr. Joseph Willetts of the RockeJB.ler Foundation, Dr* Randolph Burgess, and Mr. S. Spencer Scott, president of Harcourt Brace k Co*, all of whom strongly favored it* Mr. Woodward enlisted the interest of Miss Mildred Adams, a journalist trained in the handling of economic subjects who is now reporting matters at the United Nations for The Economist of London. Together, and with the advice of Mr. Burgess, they prepared this proposal* Work Plan The work plan calls for a staff mamber and a secretary to work with the advice and collaboration of a small committee of experts, composed of such men as Mr. Burgess, Mr. Alan Sproul, Dr. Walter Stewart, Mr. William Me .Martin and Mr* Woodward* The services of Miss Adams, whose present schedule calls for more free time after January 1, might be secured for the post of active staff member. It is hoped that desk space might be provided without cost in the quarters and near the library of the Federal Reserve Bank of New York, or at Columbia University, or at the Board of Governors in Washington* Time and Costs For an exploratory project of this kind a period of six months should be sufficient. At the end of that time the staff member, working with the advisory committee, should have the major areas of the larger project blocked out, a biographic index of personalities prepared and tests made of their cooperative willingness, a bibliography of basic materials and a map of source papers ready. With those in hand, it will then be possible to attack the problems of the larger project* A budget for this exploratory work should be simple but adequate. The plan includes the hiring of one staff member for six months, and a capable secretary familiar with bibliographic methods. There should be a fund for necessary expenses incurred in travelling to interview key figures not in New York, and a fund to cover the cost of committee meetings* The following figures are proposed: Compensation of staff member - 6 months at the rate of $10,000 a year........ $$,000• Salary of Secretary 2,£00 Expense funds 2,500 #10,000 - | - - ' : -U^' FOR AK SXHtfKATQRT PH0<R3F Ii>0KIKd TOWARD TH8 8 # APPSAISAL, 4TOTI8B Al ! ©F L yAl CTRAl The rapi»* changes whioh are now eh&reoteristie of the African make i t difficult for uaaabl© rtaord»» lauoh l«jsa re&dnbla history, to kaap up with th«r,« l e t i t i s ta»r« than «?y©r v i t a l that not only should results ba known and aodtrstooj, but tbat the path lay whiefc thss? raeuits were rtaohed b# clear* Thl» truiaai 10 tK»^i«rt aore lai^ortarsi then La ctnt,r«l l^ankln^* The fttara! ?,oa<?rve ilydteffi1© fuwetiona .er« «»«ontlal to* operation of the AMTitAB tii>Dfyf y^t tho !»y3t«n i« l#MI understood than end f t m i t t i t op^rstions whit^it so nuoh in^jKTww* The has boar* built r.nd rebuilt ditrir^ the past fbur deoadeeip tntt what happeatd has sot y#t baen Rdu^ttaiely rooorded* Wnl«©» thie tioric of axasdising nhat ha© ba«n dona *nd setting i t dcjvn in r$a£fcb!<j ^rm iu bogun soon, a v i t a l so<iii«>!i of financial slid eeomiBie history in th& United state* will b« lo«t# Tho peters which HOUM b<3 need«d a© aettrc« taat*rial in writing an adequate history are scattered betireen gov©rm«ntf banking and prirata fil^a. known what oxi*ta f xmr vhervi aoae of What e s i s t t oould ba found. I t !a not The man who har* aote«1 as architects tm£ builders of the present Fadtral ^neervn 3f»t«p» i f i already to di«tpp^--.r« Sartor Olm® an^. fksvtirrpr Strong, for ^ t>rn: a to Gr^r papars «l kb^f UBJ- jeraona" • V AMfti b« approached ©nd ask«d t a ascts^ to papers befbr* i t i s too lat«# Only exploration oan r»r^al what ean ba faado Taila%l»« of iaportant poaaibili^ i>nly I • 1 • QpflOT strong 1 ! ',. ; lisdtod d i i yi«ld aKMb HPfti 8OE9O pap^ra of 9« Parker ^llbort, and poaaibly othora» l#ft an ii^p^rtant collootion, have mt bean axa^dnsd. and probably iap^rt&nt But a number •• '• • Oold^s»r«i»©r ^s^1 h«r« Oharlet Ha»lin l®ft a oolloetion of diari#a whioh 0onifr^»»iofial hsarir.^* and debate* nan yiald much nmtorial Acong the living the. re ara important aesioriea and doubtless collections of papers* Thos© who would certainly be iaoluded are Walter tf« Stewart, $* Bandslph Burgess, Oeorge L* Harrisani Ray A* Touttg, B&bsrt ?• Fles&ag, Sttgsne Meyer, 24*rriner coles and Daniel . Bell* Investigation would go such farther* -** ^od prodUjgt toward which this project Is directed wowld be a *oa*» prah<inaive hiatoiy of the Federal Heeerra 3y»t«jif including the editing tor publi0«tioa of oeytaia source ^iteriala f Urn writinfr of biographi© «ket^5«a of eo^se of the mot important figures* the ooaposing of books,raooagraphsand artiol-a on speoial facets of the structure whieh emerge as of particular int$r@stt and perhaps a popular history or two designed f&r wide public* rs&ding. Obriously »ueh a e^apreiliensivs design would be a considerable undertaking, %s be carried on over Uae bf experienced specialists in this field* Meanwhile a great deal of preparatory work i s needed before ouoh a oo»» prehensiye study of the Federal Reserv© System eould be started. It i s that preparatory work whleh ia the subject of this proposal# fapers whieh will ftora the sourer naterial should be looated, elasslfl#d f and roughly analysed* Xsportant eharaeters In the dras* should be aought out t their cooperation asked, and their interest enlisted* The dioensians and proportions of the oos^preheesive study should be sketched and i t s possibilities bulke 4out* The exploratory study would at least hope to answer the basic questions, "lAuKiY*. ^Shere?1* and "iAunif** ffpisis of the Pro.ieot An added faotor whieh presses fbr a quick start i s that sueh a project has» in on® fbrm or another» been quietly simserlng in the Binds of several persons* Its present active form began with Mr* Donald Woodward 1 recently tie® President of the Kutual Ufe Insurance Oonpany, present Finanoe 33airaan and Director of the Viok <3heedoal Ooapany* **• Woodward» whose career includes work for and abaut the Federal Reserve Board, discussed the idea with Or* Joseph tfillitts of the Rockefeller Foundation, Mr, V/, Randolph Burgess, and Mr. 3« Spencer Scott, president of Hareourt Brace & 0o., all of whom strongly favored i t # Mr* Woodward enlisted the interest of Miss ;;ildrad Adaras, a journalist trained in the handling of economic subjects who is now reporting matters at the United Nations for The S canonist of London* Together, and with th© advice of Mr. Burgess, they prepared this proposal* Meanwhile, the Federal Reserve Bank of Now York has been interested for a number of years in one aspect of the problem which would f i t into the broader whole. I t has wished to develop archives, as distinguished frosfu f i l e s , which njight become a selfperpetuating history of th® bank, and which would forra the basis for the work of economic historians interested in writing in this field* After consultation with Walter Stewart, W* Randolph Burgess, itWffi U* Harrison and Benjamin Strong, J r . , a start was made, under the direction of Robert Warren, with the papers of Governor Strong, Ike f i r s t Governor of the bank. The death of Mr* tfarren halted this project, but the bank is interested In carrying i t forward and, therefore, is interested in th© present proposal. Work .Plan fhe work plan sails fggp a staff member, a bibliographer and a secretary to work with the advice and collaboration of a small committal of advisors. This advisory committee will be headed by Mr* Allan Sproul who has consented to serve as chairman. I t includes i,r. I* Randolph Burgess, Mr. r'illiam McO. Martin, Jr.* Mr* Walter Stewart and Mr* Donald Woodward) the latter will act as ,.»8cretary-Troasurer* will be ifjjtll '- If their presence liwii advisable. Other members The services of Miss Mildred Adaias, whose schedule calls for more free time after January 1st,nay bs secured for th® poatof *ctiv.e staff ***** in charge af jraseardh. T h e »°rkwill be done under the name or the T3omniittee on the History ojrt,he Federal Reserve System. (paragraph needed to explain the relationship of t h i s oommittee. which began ao an sid hoc entity, to the Brooking! Institution.) time ami For an exploratory project of this kind a period of six aspnths should be sufficient At the and of that time the staff member, working with the advisory committee• should the aajor arsaa of the larger project blocked out, a biographic index of personalities prepared and t . s t e **« of their cooperative willinpnosa, a bibliography of basic materials and a raap of source papers ready. Mth those in hand, i t will then be possible to attack the problems of the larger project. A Vudgot tor this exploratory work should bo stsqple but adequate, fhs plan Includes the hiring of ?m staff atmWr for six months# a bibliographer and * capable secretary familiar with bibliographic is$tho4s* There should be a fund for neaessary expenses inourrad In lararallisg to interview kej? figvprs* not its Haw York* and ft fund to <*ovar the «oat of eoonltte? saving** The following flgtmis are Cocpensatisn of staff member - 6 mtfoh* at t^ie rat# of ; 10,000 Salery of 3©orataxy #•#«•«•#•#•##•« 2,5CK3# » of Bibliographor 5,; . >aal c ;- only thtt preparatory i l i f t t i during Which s^ far Author study Of Ilia v^d^ral Ro««rva 3yat©ia will b« «urv«^«d and tht n of *my p<ar9om anli«t«d# toward, a far wider | But a pilot iw-jeot 0 - *&Bt«i | -a Tb« Oosn»itt'e»e ^auft^t at thl» tiaw ssuka ns?ro thafl «- rough ootimsta as to b&tr long th* larger proja^t aa^ take or how uuoii i t ^ghi coat* T>i@ work toward whloh thia pilot df*ort laada 1$ of mxah gr^^t value and has auoh wide rastiflGotiojua that angr att-vi >aw i i a liadts ac»v would be rwlaad &ia mt&iin from now# l;uoh iaora than ptore history i s iwolv^a, fbi Tdderal HeMmro 5y8tott ia pert of th« governing struotur« af the aoutiwr/j and as auoh ii« fuaati^iui^g suod i i s sf/eaUi b»ar upon the suaoo^a of I .;?afly* They K«ed study tgom mflf ^^ro m ^ s i thao ordinarily 90fit«Bplat«d# and they deaaud far wld@r underat^ j Usc.n haa hitl5«rto b#«a granted» it^i thiet in Kind i t seeias oloar that at least five years1 work would be involved in produdin^ and publishing auoh works as a definitive history of tlie Federal Rftfre 'yatea^ an analysis of i t s plaoo in the* Auierioun oounoi^, several voluBMis of pertinent papers to be oollested and adit^d* a eouple of key biograpfaies9 at least one popular aeeount us^able in higi* school and freshen oollegc courses* artloles and B»mgraphs in perlodiemls* >uah a oaeiprehengiva design w>uld m@d funds • la*3 in amount than 1300,000, &n4 might well att»&«t aohalara from I t would apttr research and writing in a fi^H rioh i o by prasQHt publicMLtl9tus, and of v i t a l eowwrn %0 thn J I c for an exploratory project looking toward the collection, appraisal, editing and use of historical materials on the federal reserve System.- • The rapid changes which are worn characteristic of the American eeoi mane it difficult for useable records* much less readable history, tc keep up with them, let it ia more thar. ever vital that not only should reaulta be known and • understood, but that the path by «bl«t> those results were reached be made clear. This truism is nowhere more important than in central banking* The Federal neaerve System*a functiona are essential to efficient operation ef the American economy, yet the System is less understood than the industrial commercial and financial operations which it so much influences. The System has been built sad rebuilt during the past four decades, but what happened has not yet been adequately recorded. Unless this work of examining what has been done and setting it down in readable form is begun soon, a vital section of financial and economic history in the United Statee will be loat. The papers which would be needed Q&> source material in writing an adequate history are scattered between government, banking and private files* It is not even known what exists, nor where some of what exists could be fowmd* The men who have acted as architects and builders of the present Federal iteserve System are already beginning to disappear. Carter ulass and Governor Strong, for example, are dead* Others are reaching retirement* Those living, whose memories f o m a most valuable supplement to any papers which they may nave, should be approached and asked te contribute personal Knowledge and access to papers before it is too late* Qmly exploration can reveal what ean be made available* But a number of important possibilities exist. Governor Strong*s papers have been worked to only a vary limited degree, and can yield rnmob more. Tmere may exist at J.P.Korgan some papera of 3. Parker Gilbert, end poaaibly others. K* A. Qojdeuwaiasr may have left an important collection. Charles lamllii left a collection of diaries w ich have not been examined. Congressional hearings and debates oaii yield much material and probably important clues. the living there are important memories and dbvfetless important collections of papers* 4MflRt (those wu© Hfettld certainly bo i ^ i n f l are fe«lter *• Stewart, «. Hand lpm Surgesa, George L. arriaon, Hoy A* loumg, Hobert V* Fleming, Sugeae Meyer, Daniel • • dell* A Investigation would go ouch farther* Tht ead prodaot toward whioh this project is directed would be a comprehensive history of tho Federal Reserve System, Including the editing for publication of certain source materials, the writing of biographic sketches of of the most important figures, the composing of books <•#* monogrsphs on special facets / A of the structure which emerge as of particular interest, and perhaps a popular history or two deiignsd for wide public reading* obviously such a comprehensive design would ( bo * ooMldorablo todartaking, to bo carried oif A nitin r " " "' I "* • • ^ • • « j ^ r - * — T - » apocialiat^in this fiold. to boliav* thattir.fiaadolph Burg»ar,# whofaaaalroady contributod important to tho baaic bibliography of control banking, sight bo porauadad to uadartako taia rolo wh*a ho roUnQui«k»» hia prwintr TJoo*-±n~«Hi"fnwwury. r HoanwhUa a groat deal of preparatory work la noodod bofora auoh * eoaprebonsiYO study of tho Federal haaarva aystoai eould be ttarttd. work whleh l a the aubject of this proposal. I t i t that preparatory Papers which will torn the source material should be located, classified, and roughly analyzed. Important characters in the should be sought out, their cooperation asked, and their interest enlisted. The dimensions and proportions of the sompyhonsivo study should be sketched and I t s p o s s i b i l i t i e s bulked out. The exploratory study would at least hope to answer the basic questions, *wkmt?" •whersT* earn "whom?" Qenesis of tarn project • • • • • M ~ » An added factor which orssses for a# quick start i s that such s project has, in one form or spotter, been quietly •wbifttng irf the minds of several persons, active Digitized for present FRASER its form began with Hr« uomsld Woodward, recently Vice President of the Kmtaal l i f e Insmranca Company, preesmt flmsmes Chairman and director of the Viok Jhemical Company. Mr. Woodward, whose career includes work for and about the federal ieserve Board, discussed the idea with ftp* Joseph WiUetts of the HookeAler Foundation, /nr. Ramdelph targets, and Mr. S. tmmmemr Scott, president of •aroourt flxmee 4 Oe., s l l ef whom strongly favored i t . Mr. woodward enlisted the interest of Miss Mildred Adams, a journalist trained in the handling cf economic subjects who i s now reporting natters at the United Nations for the teooomist of London. Together, and with the advice of red this Mr. Burgess, they prepared this proposal. proposal. ] ' >^he Federal Reserve Bank of New York has been interested for a number of years in one aspect of the problem which would fit into the broader whole. It has wished to develop archives^as distinguished from filea^ which might become a self-perpetuating history of the bank, end which would formnthe basis for the work of economic historians interested in writing in this field. After consultation with Walter Stewart, W. Randolph Burgess, George L. Harrison, and Benjamin Strong, Jr., a start was made, under the direction of Robert Warren, with the papers of Governor Strong, the first Governor of the bank. The death of Mr. Warren halted this project, but the bank is interested in carrying it forward and, therefore, is interested in the present proposal/f* Flan The work plan ealls for a staff aejiB«r\and a secretary to work with the advice end^oollaboratio© of a small committee of .emmertv, composed of smuii men ea \ Mr. gorges*, Mr. Alkn Sproul, M>. Walter Stewart, Mr. William Mc.Martin and Mr. woodward. the services of Miss Ada»s>. whose present schedule c a l l s for more free time after January 1, might be secured for Vie post of active staff member. space !•£•#•* be provided without eost £sK$he quarters and near the library of the federal Reserve Senk of Kew Yort»fr*H»V4frlummi W t W l J , TBTttrtho flsmrd ef Time and Joaf Hr an exploratory project of this kind a period of six months should be sufficient. At the end of that time the staff member* working with the advisory committee, should here the major areas of the larger project blocked out, a biographic index of personalities prepared an<* t e s t s made of their cooperative willingness, a bibliography of basic materials and a map of source papers ready. http://fraser.stlouisfed.org/ i t wBank i l l ofthen Federal Reserve St. Louisbe With those in hand, possible to attaoic the problems of the larger project* k. A budget for this exploratory work should be simple but adequate. The plan includes the hiring vf one staff member for sis wonthe, and a ^capable secretary familisr A with bibliographic methods. There should be a fund for necessary expenses incurred in travelling te interview key figures riot in Jtev York, and a fund to cover the cost of committee meetings. The following figures are proposed! Compensation of staff member - 6 months at the rate of a*~,000 ^year»•••• £5,000, ^Salary of Secretary ?»500 •xpenee funds t bear upon the wtkiMMXBx continuing success of this democracy. They need sktudy from many more angles than are ordinarily contemplated, and they far wider understanding than has hitherto been granted. With this in mind it seems clear that at least five years1 work would be involved in producing and publishing such works as a definitive hiatofy of the Federal Reserve System, an analysis of its place in the American economy, seveal volumes of pertinent papers to be collected and edited, a couple of key biographies, at least one popular account useable infiighschool and freshman college courses, articles and monographs in periodicals, Such a comprehensive design would need funds not less in amount that; §500,000, and might well attract scholars from several disciplines, It would spur research and writing in a field rich in possibilities, inadequately covered by present publications, and of vital concern to the country• Advice needed on the following itemsCommittee name Committee members Suggestions P£}.ot Project in Banking Studies Committee on Banking Studies Committee for Central Banking Studies Ce^ntral Banking Studies Committee Project CBH (Central Banking History) Suggested Mr Randolph Burgess Mr Allan Sproul Dr. Walter Stewart (?) Mr William McC. Martin J r Mr Donald Woodward Add Mr William Me. Martin Sr.Ss toepresnting member banks? Mr Lester Chandler (?) of Princeton as academic advisor? Officers Suggested Mr Randolph Burgess, chairman Mr. Donald Woodward, Secretary-Treasurer Miss Mildred Adams Research Director Method of handling funds and disbursements Bank Signing officers Bookkeeper Committee staff Research Director Secretary -Bookkeeper Bibliographer with archive techniques • Quarters and Equipment Office space Files Typewriter dictating machine Supplies Estimate of costs and length of time to be required for end product to which this rdlot project may be expected to lead. Suggested 3 to 5 years need to write Qefinitve 2-volume history 5 volumesof collected and edit^ed papers 1 or 2 key biolgraphids 1 popular history to go through trade channels for use in high s chools and freshman colle^courses. +-AJU, ? of th* I t <Ui¥im*lt far th«u HMM&U *«4»*l«# «JO!I 1##* n*£a&U Tat i t in «or* th*« «v«r vital that fPt .illy sJ»«l4 r*milf b* tomt v«rs t h i s tml«!r im pBMfa»f# a»f» Updriwiit tlwm i o #»ntyiil f£ to UMT A » r t « « t»tway t f»% <th« %*tfta I* I««i tt^aftoo! thins tmllt «M»i ham m% of and t» tlm trill in between •» pr-iwits flt#»« It ! • iwt «rt i t in too to tdntfi^iU ?«f*»isft! st. J , l*ft . • jK^^MbM^^L A ^I_ML 1l £^^ftflfc^tt ^klh^fe-tK^b A'ttiA Jt ^^Htt^&^rtA1 A Mfc£* Wte^toH^4 4f ^ 4fc£k JlL»ii'il jjtiif^fr^^fc V.^fcjfcjft ft i i M V l ^ M ^ ' A l l I ^ ft** • * saoh in if th^ INI *l U «D«t carried 1 !• of Ui • ' 'm M will Itere. tb» of th* p^Hi.- ^t :. . .: ; .>.... In • ' with rw?i*Uy f l i t o.f or - t«t*r*«t. of Ms* Mt&r** lUtem®* it )o«va»ltit ti*lft£§ in Ht who i s new r*portlm a«tt*f* «t ths Ua*t*4 J^ii^n» tar H i tail p la pmUm *&&& *ouU fit Into I f r* tbt ^eirk of <iooooart« hl»tori*r» iet«r*«t«A 1# «riiif^ in ."T^tt i m l t ^ tin* pr3]«at« u' ;«sk 1# i«t9r»*t^ In r@f la Ht iitP ftK» mrk mill tht «^l«» wsd «otUb»r*U^d s i * *e*U ^ art in «MK fir* # ^ w r d , fb« (MirfitMt* af *»«•» I^»M j/t f»: tlT» aft*r JafamiiT l» « * # t b« mmro& f i t » !% In topt* th«t a«*k MpMi» « l # i b» provide wii;4>ttt MM In the ih« Ubrarar « - the ?)»4«ml *«i»#rv<» ":*Bk of |»t#j4«t of this kind a p«rl9<! i f i U mn/Um •teuU h* At t&» «» ^ t t N this «tiiff i*K&«r# ^rtclnc ulth *iUiqgt»*«f 9 ft WbU«Hor«p:y of *••*# wml*rlmU »ni » ump of e a r n * pftg«r» of iit« U i g t r pr»J#*t# plmn tmtmim Vm hirlnr ^P •»» « t * l f «»fe»r H»r «i3t fS>nUwf ft ftfid ii <w^>»tta *oor«tifsr find.U*r «rlHi blbliofMplit« fwUm&m* Th«r« #i»nia be II Iftntf&r P'OfiOftiy ^Nifiiftft iwvrro lit tiwulUngf t» lot»pvi«** l *«.«••*•*« ^ V - Of Y X ^ V V / , >K)R ANffXPIORATORYPROJECT IDOKIW TOWARD THS l U J OOLLfSOTIQN, APPRAISAL, EDITING ABD USE OF < J> ' j f vT HISTORICAL 1OTTRIALS ON TH«? FEDERAL RgSSRVS 3Y3TgH» \ ^% \ / \f Th« rapid ohange» whioh are now oharactaristic of the American make i t difficiilt for useable records, much leaa readable history, to keep up with them. Yet i t is more than ever v i t a l that not only should results be known and understood, but that the path by which those results wera reached be made ol©ar# This truisia i s nowhere more important than i» central The Federal Reserve System's functions are essential to efficient operation of the American econony, yet the Systexa i s less understood than tha industrial, commercial and finanoial operations whis^it ao aauoh intfuences. The System has been built and rebuilt during the past four decades, butAw*hat happened has not yet been adequately recorded. Unless this work of examining what has bean done and setting i t down in readable form is begun soon, a v i t a l section of financial and economic history in the United States will be lost* The papers which v/ofcld be needed as source material in writing an adequate history are scattered between government, banking and private f i l e s . known what exists, nor where some of what exists could be found. I t is not even The men who have acted as architects and builders of the present Federal Reserve System are already beginning to disappear* Carter Glass and (Governor Strong, for example, are dead. Others are reaching retirement* Those living, whose memories form a most valuable supplement to any papers which they laay have, should be approached and asked to contribute personal knowledge and access to papers before i t i s too late* Only exploration can reveal what can be made available. of important possibilities exist* But a number Governor Strong's papers have been worked to only a very limited degree, and can yield smch more* There may exist at J . P. Morgan some papers of 3. Parker Gilbert, and poaaibly others, left an important collection, have not been examined, and probably B« A. Goldenweiser may have Charles Haralin left a collection of diaries which Congressional hearings and debates can yield much material important clues. Among the living thf-re are important memories and doubtless important collections of papers. Those who would certainly be included are Walter tf« Stewart, W. Randolph Burgess, George L. Harrison, Roy A. Young, Robert V. Fleming, Sugane Meyer, Marriner socles and Daniel w. Bell. Investigation would go much farther. ^ e e"d product toward which this project is directed would be a com- prehensive history of the Federal Reserve System, including the editing for publication of certain source materials, the writing of biographic sketches of soma of the most important figures* the composing of books, monographs and articles on special facets of the structure which emerge as of particular interest, and perhaps a popular history or two designed for wide public reading. Obviously auoh a comprehensive design would be a considerable undertaking, to be carried on over time by experienced specialists in thi3 field. Meanwhile a great deal of preparatory work is needed before such a comprehensive study of the Federal Reserve System could be started. It is that preparatory work which ia the subject of this proposal. Papers which will fens the source material should be located, classified, and roughly analyzed. Important characters in the drama should be sought out, their cooperation asked, and their interest enlisted. The dimensions and proportio a of the comprehensive study should be sketched and its possibilities bulk.ed; out. The exploratory study would at least hope to answer the basic questions, "What?*,ttWhere?" and MWhomfB. flenesis of the project An added factor which presses for a quick start ia that such a project has, in one form or another, been quietly simmering in the minds of several persons. Its present active form began with Mr. Donald Woodward, recently Vice President of the Mutual Life Insurance Company, present Finance Chairman and Director of the Vick Chemical Company. Mr. Woodward, whose career includes work for and about the Federal Reserve Board, discussed the idea with Dr. Joseph Willitts of the Roakafoller Pou&laUan, Mr. •/. Randolph Burga»s 9 and Mr* 3 * Spaaoar S a o t t , /I pr«aidont of Haroourt Eraoa 4 0o«9 all of whom strongly favors it# Ufa woodward tha interest of Hlsa i iidred Adaiaa9 a Journalist trained in tha handling of aoonoiaio aubjests who la sow reporting nsattara at tha United Natlona for The Soonomist of I#ndoa#^ogaiharf"-«qt~-wHh -the adr&ea oV-tflr» ISurgeaa, they ~pr-epa»ed this proposal• ;-;«anwhllo9 tha Faderal Reserve Bank of Now York haa bten interested for a number of years in vm aspeot of tha problem whieh would f i t into the broader whole. I t haa to develop aroMvast aa dlatinguishad from f i i « s t whioh might baoons a self^iatory of th« Wnk, tm$ whioh would form tha baaia f^r tha work of ooonomic historians intarestad in writing In this flaid« Aftar conaultation with .'altar Stewart, I4 Randolph Burgoaa^ O^orga L« Harrison and Banjamin Strong» Jr« t a start was smde9 undar tha direction of Bobart $*??? $ witli tha pap ra of e&varnor Strong, thu firat Qowermr of the bank* Tha <feath of Hr» Warren haH«d this projaet9 but tha bank i s intaraated in earrying i t forward &nd9 therefore* i s int«r^atecl in tha present Tha work plan sails fet a staff ®esb©r9 a blbllograpbar arsd a a«or«tary to work with tha »<!vio?i ai^d aollaboratlon of a sisal! ooxssittaa of advisors* Thia advisory oeanittee wilt be headed by Mr* Allan SprouX who haa oonssnted to »arv4 aa ohaiiRaan# I t inoludss Nr« Hi Randolph Burgeaa, !^r# William MeO* liartin, J r . , Mr. VsUsf Stewart and Mr* Donald itoodward! the latter will aot an ;-6or@iejty*TrQ©Ai«:@r# othar will bt adtf'at when and i f their proa«no® aeesja adviaable* Tha aorvlo<ta of Hiaa lilldrad Adawi9 vh$&$ aohedula oalla for ipre §gm tiao aft«r January 1st,iaay b# asourod for tha B««t »f soiiy# ataff nanbar in eharga of reaaarah. A?he work will'bb done under the name of the Committee on the History of the Federal Reserve System. ft to i f ttJ For an 4xploratJ>rr project of thi« kind a pariod of Six n»ntha should ba awfflaiaot At Ut@ ®s& of that Use tha ataff aeab«r9 working with the adriaory oommittea, should haw tha mpr areas of th# larger prjj«ot bloaked out# a biographic index of paraonalltiea prapar^d and taata * f a of thair ooop^ratiya willingmaa, a bibliography of baaic i««l«riala and a aap of aauroa papara ready, tfith t^ioaa in hand* i t will then ba y toa poaaibia to atteofc the prablerwa of the largar project poaaibia to atteofc the prablerwa of the largar project* A budget for this exploratory work should be simple but adequate* The plan includes the hiring of one staff member for six months, a bibliographer and a capable secretary familiar with bibliographic methods* There should be a fund for necessary expenses incurred in travelling to interview key figures not in New York, and a fund to cover the coat of committee meetings. The following figures are proposed$ Compensation of staff member - 6 months at the rate of 110,000 a year 15,000. Salary of Secretary • 2,^00. Salary of Bibliographer 5,5°°* Expense Funds . . . . . . . . . . . . . . . . . . . . . 3»QQQ» 16,000. Snd Produot - The Larger Design This proposal concerns only the preparatory tages, during wuich material© needed for further study of the Federal Reserve System will be surveyed and the cooperation of key persons enlisted. But a pilot projeot of this type is pointed toward a far wider and product. The Committee cannot at this time make more than a rough estimate as to how long the larger project may take or how much it might cost. The work toward which this pilot effort leads is of such great value and has such wide ramifications that any attempt to draw its limits now would be revised six months from now. Much more than pure history is involved. The Federal Reserve System is part of the governing structure of the country, and as such its functioning and its effects bear upon the continuing success of this democracy. They need study from many more angles than are ordinarily contemplated, and they demand far wider understanding than has hitherto been granted. With this in mind it seems clear that at least five year a1 work would be involved in producing and publishing such works as a definitive history of the Federal Reserve System, an analysis of its place in the American economy, several volumes of pertinent papers to be collected and edited, a couple of key biographies, at least one popular account useable in high school and freshman college courses, articles and monographs in periodicals• Such a comprehensive design would need funds not leas in amount than |JOOf(WO, and might well attract scholars from aeysral disciplines. It would spur research and writing in a field riob in possibilities, inadequately covered by present publications, and of vital concern to th© country. teltph&m* HMrwlandor 4-0IgO, the «ii*laft«d m&Qrvndvc* in that wbith Hr# !&aaX*! v^j-4Hw3^Kiff ti>j>ft' 4fy^^i_tts,> 5 t waa Br^fljarod rojp t b a awai* isaft' %*\® f^<|Ulii0id#iit# you ii&u|,tf ii#ti IUEMI 1 nould you i»U9at« any changed you thirife d«#irabl## Teu will find that u»:1«r tH# heading #^&fk Fia»n 1 har« i f r^u «pprov« of th« *$«oolftU3t> of with th» InsUtutl^tt tfhidh yau di«eu»*«i with I Hi|ig p^r4o« ihin v«ry h&#ty e»t« # A« Mr* i l U i t t i haa »«k^ thai thi# ;>ro?90*l ^e i s hl« Pfflu© on or even by Saturday, I f you oan hftre I t hstfk t o m V Thars£a0>/With ^ s N r t r 6h«ttg«» y&u fi«a v i t a l , 1 will. *©# that i t r$ft0H«s him &jr tht prt^isribad data* you to mx^i tor your ^ourtav i» this* s / Mildred Adams inatltution J|i 1 assume Mr. Woodward told you that a latter of tranamittal would also corae from you. FOR AH IOT1ORATORT ?BOj*fOT H2GKIK9 TOWARD TICS OOLIOTIOK, APPRAISAL, OTTXKO ANO USS OF HISTORICAL KAT-SRIALS OH THg F8D8RAL RSSfRVS 3TSTM* The rapid changes which are now c h a r a c t e r i s t i c o f the American eeonony make I t d i f f i c u l t f o r useable r e c o r d s , much l e s s readable h i s t o r y , to keep up with thew, Yet i t l a more than ever v i t a l t h a t not only should r e s u l t s be known and understood, but t h a t the path by which t h o s e r e s u l t s were reached be nade clear* This truism i s nowhere more important than i n .central banking* The Federal Reserve System's functions are e s s e n t i a l t o efficient operation o f the American eoonoey* y e t the System I s l e s s understood than the i n d u s t r i a l , commercial and f i n a n c i a l operations whlaMt so much inmuances* The System has bean b u i l t and r e b u i l t during t h e past four decades, but what happened has not y e t been adequately recorded* Unless t h i s work of examining what has been done and s e t t i n g I t down i n readable form i s begun soon, a v i t a l s e c t i o n o f f i n a n c i a l and economic h i s t o r y In the United S t a t e s w i l l be l o s t * The papers which wofild be needed as source ssaterial i n w r i t i n g an adequate h i s t o r y are s c a t t e r e d between government* banking and private f i l e s * known what e x i s t s , nor where some o f what e x i s t s could be found. I t i s not even The men who have acted as a r c h i t e c t s and b u i l d e r s of the present Federal Reserve System are already beginning to disappear* Garter alaas and Governor Strong, f o r example, are dead* Others are reaching retirement* Those l i v i n g * whose memories form a most valuable supplement t o any papers which they may have* should be approached and asked t o contribute personal knowledge and access to papers before i t i s t o o l a t e * Only e x p l o r a t i o n oan reveal what can be made a v a i l a b l e * o f iaportant p o s s i b i l i t i e s e x i s t * Governor Strong's papers have been worked t o only a r&ry limited degree, and can y i e l d much more. soae papers o f 5* Parker S l l b o r t , and p o s s i b l y others* l e f t an important c o l l e c t i o n * have not been exarained* and probably But a number There stay e x i s t at J . P* Morgan . f • Goldenweiser may have Oharlss Haralin l e f t a c o l l e c t i o n o f d i a r i e s which Oongroasional hearings and debates oan y i e l d much m t e r i a l important c l u e s * Asong the living %\nr$ are ii^ortant memories and doubtless Important collections of papers* Those who would certainly be included are Walter W# 3tewart>1#* Kmudalph Barges*^ George L« Harrison, Roy A» Young, Robert V« Fleming, -ageno Meyer, Harrinor £00 lea and Daniel .•• Ball. Investigation would go much farther* and product toward which thia project £9 directed would be a ooiahistory of the Federal Heserve ;>ystsa:, including the editing' for publication of certain source materials, the writing of biographic sketches of souse of the sao3t iisportant figure«» the ooaiposing of books, rzomgr&ph* and articles on special facet* cf the struatura which emerge as of particular i n t e r e s t , and perhaps a popular history or two designed for wide publis reading* Obviously such a comprehensive design wculd be a ooneiderabls undsrtaid.ng, to be carried on oy©r tiase by experienced specialists in this fisld« ksanwhile a great deal of prayarat-ary work i» needed before auch a «ow prthenaive study of the Joderal Rewnrs iystess could bo started• preparatory work which is the subject of t h i s proposal. I t i s that Papers which will fora the aouros notarial should he located, classified, &nd roughly analysed# la^ort characters in tfei draiaa •timitd b^ aought out f their o(->operation asked, and their enlisted* Th<i diia^Dsions and proportio 3 of the comprehensive study should be sketched and its possibilities bulk.tA out# • The exploratory study would at least hope to answer the basic questions, "What?51, 'nihers's" and nWhoa^H. Genesis of the project kn added factor which presses for a cjuiok start i s that sueh a projeot in on© form or another, been quietly aiarsaring in the minds of several persons. Its present active form began with Mr. 3onald Woodward* recently 7ice President of the mutual Life Insurance Oowpany, present Finance 'Jhairsaan and Director of the Viek CSiemical Ooapany* !ir» Woodward, whose career includes vjork for and about the federal Resarvs Board, discussed the idea tfltk drrifo**®b^dilli&%a of th© Rockefeller FsMWrJ.afeia*. I r. . Randolph Surges a, and Mr* 8* Ipetioor Scott, ^ ; ^ N *? president of Haroourt Brao© & Co*, «§L of whoss strongly favored i t * Kr* Woodward enlisted the interest of Kiss I ildr«d Adams, a journalist trained in the handling of economic subjects who is now reporting matters at the United Kations for The of London* 'Togstiher, as&~ with- *&» advio» -^f r:Mr*^Bttrg<a«a ».^fay prepared this proposal* Meanwhile, the Federal Reserve Bank of Naw York has bean interested for a number of years in one aspect of the problem which would f i t into the broader whole. It has wished to develop archives, as distinguished from f i l e s , which might become a self** perpetuating history of tha bank, and which would form the basis for the work of economic historians interested i s writing in this field* After consultation with Walter Stewart, tf* Randolph Burgess, Gsorge L* Harrison and Benjamin Strong, Jr*f a start was a&de, under the direction of Robert Warren, with the papers of Qovsrnor Strong, the first Governor of the bank* The death of Mr. Warren halted this project, but the bank i s interested in carrying i t forward and. therefore, i s interested in the present proposal* v/ork Plan The work plan eall3 for a staff member, a bibliographer and a secretary to work with the advice and collaboration of a small cossalttee of advisors* This advisory will be headed by Kr« Allan Sproul who has consented to serve as chairman. I t includes Kr* /. Randolph SurgeasyHJry-iftl 11 ia MgU^^artln, Jr*» >lr» ^altor Stewart: and Mr* Donald Woodward} the latter will act as Secretary-Treasurer* w i l l be frir*Hrtffrffr Hinfl I f thsfr pr##e4^<tae«aa advlafflM^> Other members The services of Hiss Mildred Adaas, whose schedule c a l l s for »>r© fUNN time after January 1st,-my be secured for the post j>f\active staff msiaber in charge of research* The work will be done .und$rvthe name o F l h e Committee on the History of the Federal F d l R ^^^ ^^ ^ Reserve ^ f ^ ^ ^ £ (paragraph J0S«4«.lJUi^wQilain tJi« tstl^is^^^9t--^^--^oimAtt^ which bagan as an, ad hoc antity, t o t-J» 8 r o o k i e s I n s t i t u t i o n ^ ' for an exploratory project of this kind a perio3 of six aonths should be sufficient At the and of that tine the staff meiabsr, working with the advisory comRiittoa, should haw the major sxeas of the iarger project blocked out, a biographic index of personalities ZrTat T I grphy of basi *** ° ° ^ r a t i V 0 W U U ^ - ^ • bibliography of basic materials and a map of source papers ready, with those in hand, i t will then b. possible to attack the probleiss of the larger project, ' ** h* I budget for this exploratory work should bo aiaple but adequate* The plan Includes the hiring of one staff member for six isootha, a bibliographer arid a capable secretary familiar with bibliographic methods* There should be a fund tor necessary expenses incurred In gravelling to interview key figures not in Heir York, and a fund to cover the cost of caspsittee settings* The following figures are proposed! Condensation of staff member * 6 months at the rate of 110,000 a yeas* • **•«.*#•**••«••#*••.«••••••• -$5,000* Salary of 3eoretary 2,^00. Salary of Bibliographer $,5°°» expense Funds »..»..+»,...*«»»•»«»* 5#000* 16,000. .jgqd Froduat - The Larp;ar Design This proposal concerns only the preparatory stages, during which materials needed far further study of the Federal Reserve System will be surveyed and the cooperation of key persons enlisted* But a pilot project of this type is pointed toward a far wider end product* The Oo&Knittee cannot at thia time make more than a rough estimate as to how losg the larger project may take or how jaueh i t alght cost* The work toward which this pilot effort leads i s of such great valu© and has such wide ramifications that any attempt to dr»w i t s limits i»w would b© revised six saonth© from now* Much more than pure history i s involved* The Federal Reserve System i s part of the governing struetur© of the country.* and «ta such i t s functioning and l i e effects bear upon the continuing success of thia democracy. They need study from many more angles than are ordinarily aant@rsplat&d, and they daiaand far wid^r understanding than has hitherto been granted* With this in aind i t seems dear that at least five years1 work would be Involved in producing and publishing such works as a definitive history of the Federal Reserve 3ystesaf an analysis of i t s place in the American eoo noray,several volumea of pertinent papers to be collected and edited, a couple of key biographies, at least one popular account ttoeable in high school and freshman college courses. lAmU articles and aonographs in period!cala. 3uoh a cos^reheneive design would need funds nat leas in amount than -5500fODOf and aight wall attract scholars front aaveral disciplines* It would spur research and writing in a field rioh in possibilities, inadequately oowrod by present publioationa, and of vital eonearn to tho oountty* Project - To make an exploratory study into the wisdom, need, possibility of writing a popular study of the part which money plays in the economy in the United States, This would have special reference to the part which the Federal Reserve Board, its member banks, and the people in them played between 191$ and 1953 in making the American economy what it is today* Need for such a sbudy - X American ignorance offc&e&r-~«iraeconomy, its component parts U and its manner of working, still,so great as to be potentially dangerous at moments when they, as citizens of a democracy, are called on to choose one economic course or another* Since 1933 when the Roosevelt regime started a tsTtiaa nfjAt#3»ti 4k popular education in an effort to bring popular belief and actuality somewhat closer together the public has lmini In rrqffl*t to recognize the part which industry plays in making the economy what it is* Thus far no analagous effort has been spent on explaining and publicizing the part which money plays. Indeed there has been discernible what o-an only be eailed- a deliberate effort to keep banks and bankers in the shadow* It seems probable that this stems from the banking crisis of 1933 when the national government capitalized on the political chance offered by an economic situation and "rescued" the banks from their perilous state, to the disgrace of the banks and the benefit of the New Deal. In any event, time enough has passed so that that ppisode should take its place in a longer history and a ggowittg economy. -2Porm of end product One or more books intended for popular reading. Once tfch«, material is in hand, it might well be possible to produce a book of the type which a publisher of paperbound volumes who numbers his readers in the millions would find acceptable. The first effort ^however^ would be to pro- duce a volume on the general level of the Harrod biography of J, M. Keynes; a book which combines economics and finance with a vivid account of the human personalities, motives and iocidents involved; a book which should become required supplementary reading for college students studying economics in general, money and finance in particular. Instigators of Project This project stems from a long held desire on the part of Donald Woodward (now chairman of the Finance Board of Vick Chemical Company, recently Vice President in charge of Research for the Mutual Life Insurance Company of New York) to get down on paper the rich and turbulent history of Federal Reserve activity from 1929 to 1933 while certain personalities then actively participating were still alive. Mr. Woodward had hoped to do the study himself, but increasing responsibilities made him fear that by the time he could find hours enough the personalities involved would no longer be living. He therefore enlisted the interest of Mildred Adams (in private life Mrs. ¥. Houston Kenyon, Jr,, wife of a well known New York attorney) a former colleague on the American Survey section of The Economist (London) who has had long experience in writing on economics (and non-economic) subjects. Miss Adam*/who was graduated with honors in -3economics from the University of California considers herself a lay economist more interested in writing than in pursuing the changing intricacies of economic theory• She was in 1939 engaged by the American Adult Education Association to write a first book in economics to be included in a series then being prepared by their Readability Laboratory, That volume, called Getting And Spending and published by MacMillan under contract with the AAEA, went through two editions, and a special paperbound edition of 10,000 copies prepared for the educational work of the then active CCC GsstpM* Her work as a journalist includes almost weekly contributions between 1930 and 19ij.O for the New York Btaaday Times* Since I9I4.O she has tended to spend m*&& time in contributions to The Economist* She is presently correspondent of that publication at the United f*l 'Jr Nations, and also writes on American affairs* Tbs»e~ Part vrhieh the Federal Reserve and the people in i t played between 1915 and 1955 *» making the American economy what i t i s today — Conscious purposes, accidents, meehanisias, men* tfhat i s that econ ay today? Mixed between controls and free mechanisms, ..-/to. Industrial production the largest fraction, devoted to> free enterprise (even where it doesn't exist) and to the belleffethat ev-ryone is better off when everyone worksf and seourity for everyone can be had* Most powerful eoon raic force (as a nation) in the world today* Producing 15^0 odd billions of goods and services par year* v Distributing i t with enough success so that in t°i(>0 j (a) i t s people have the highest real inouie (?) in money terms * and $he widest general spread of comforts* (b) Ita people are thus far able and willing to tax themselves not only for the government (eotoraunal) aarvlces they want* but also to distribute x billions in loans and grants to ailing nations elsewhere* (This, accomplished in the name of mutual aid and a cooperative effort to stave off communism until i t shall coas® to be a menace to this nation's lifet comes back in the form of political reassurance, and economic purchase of American products* ./nether i t i s a good investment from either point of view remains to be proven. Thus far i t is an experiment somewhat though not wholly analagous to the British policy of 19th century developmental loans*) JSxerting pressure on older governments and decaying ec nomies . , in an attempt to push them closer to the American pattern* ( f <+fs+^t - iA\, KAASJXX***. Co^rtr*. u«-<ACvu; Jhat was that eoonony in Largely a matter of private enterprise, though glfoEs&rlngs of social protest tending toward controls were discernible^ Agriculture 3tlll looked larger than industry O) but industry was gaining* l^th century pafctarns of boom and bust, upper and lower clasia etc* s t i l l governed* Vlotory* over Spain in 1898 had given lla an elated sense of political destiny, and made Surope conscious of i t s young power, but neither attitiade had Jelled or was generally accepted* part did the central banking system play 11 this 40-year transformation of the ambitbus child into the cautious giant? What* injf eaasnoe, ia a central banking system? doos i t do? How does i t do it? what effects does i t have? How do thoae #£foots show themselves? VJhan, and why, waa the central banking system sat up? Alias of ths Tounding Fathers Hamilton VQ* Andrew Jackson 1st National Bank - 1791-1811 2nd national Bank - 1816-1956 Civil Jar by private banking #• Jay Oooke — educative influence of a bad »./tional bank syatera - !$>5~1915 Persistence of the boom and bust ( J J ^tCoo^^^i^j ^ J u+(&c*xL.,dprii^^ Hhy and how a Federal Reserve 3yate» - 1915 to date, Infandsy - 191? through w'orld War I Iapotenoe or lack of judgment In the 1920*3? Effect i f any on the depression of 1921. Effect i f any on the boom and oraah of Q Lessons learned and appliedjifor *he long depression 0lass-3toagall act of 1955 Smrganoy Banking Act of 1959 l ^andsupjpleraentQ^J Roosevalt re-ioI3i)(^he f©d#r&l Reserve for the purposes and need a of the New l Changea of 1955 The Fed* Sfc helps finance the war by aiding Troaoury to build in inflation Policy of cheap ajoney and low interest rates* Truman -ind Snyder v s . the F©d. ?r}&l!olos and problems of Kew p o l i c i e s , or, old ones when the worta turns? >03t of a huge federal dsbij and how t o handle i t Have men learned to control a national economy fey manipulating monetary valves? central I s the banking system truly theicor© of our national eoon - The pereonalitiea concerned, alive and dead* Roy toung# Boston "Aaskhar-Fleming, Karriner Secies Garter Glasa Andrew Mellon \ y UMA U ' Holdeuorth, J.T#T Oatterall, P,.0, !. Hammerer, £,8« l/arbttrgt P,X* .1* Paovols&y, L First Bank of the US (Phil. 1910) Seoond Bank of the US ABO of the Federal Reserve "System (Princeton Federal Reserve 3yetesi, I t s Origin and Growth (M 19J0) The New Federal Reserve System Monetary Management under the SMI T)eal (Wash* 194O)f 1'onetary Issues ( Washington ft (Hi -
@FedFRASER