The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
June 30, 1958
REPORT
ON THE PROJECT ON THE
HISTORY OF THE FEDERAL RESERVE SYSTEM
The Pro.iect
On January 21, 195^> "the Rockefeller Foundation made a grant of
$10,000 to the Committee for the History of the Federal Reserve System 1 /
for "an exploratory study of historical materials relating to the
Federal Reserve System."
The grant was to be administered by the
Brookings Institution.
On April 20, 195^, the Committee reported on the very considerable
success it had had in finding useful collections of papers on the early
History of the Federal Reserve System and requested a five-year grant
to undertake "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, 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."
The request stated:
. . . . The Committee now knows that what needs to be
done is much more than a single history of the Reserve
System — it is an appraisal of one of the most extra
ordinary inventions in this democracy, a review of
experience in its functioning, an analysis of its
performance illumined by the papers and the memories of
men who helped develop it and who took part in its
1 / The original members were: Allan Sproul (Chairman), W. Randolph
Burgess, Robert D. Calkins, William McC. Martin, J r ., Walter W. Stewart
and Donald B. Woodward. Added later were F. Cyril James and Joseph H.
Willits.
2
operation. The episodes around which conflicts swarmed,
and out of which change came, the process by which
decisions were made, the importance of personalities,
the interplay between public policy and private needs —
these various angles of approach and many more which have
been suggested from time to time by Committee members
testify to the vitality of the subject and to the lessons
which can be learned for other democratic institutions by
a detailed study of the experience of the Federal Reserve
System.
The proposed study was to be broad in scope, covering the entire
System, including the twelve regional banks.
The project contemplated
three main activities:
(1) further archival work and research, intended to discover and
make available materials that would be useful in the preparation of the
history of the Federal Reserve System;
(2 ) interviews with individuals who had participated in the life of
the System, in order to obtain personal recollections of value to future
historians; and
( 3 ) arrangements for
(a) the writing of a "definitive" history of the
Federal Reserve System as the central responsibility of the
Cominittee,
(b) the encouragement of monographs and essays dealing
with special phases of the history of the System, and
(c) the editing and publishing of important documents
relating to the history of the System.
The request for a grant of $310,000 for the support of these
activities was approved by the Rockefeller Foundation on May 21, 195^ •
The grant was for the five-year period ending May 31, 1959*
3
Inception of the Pro.iect
The inception of the project can be traced at least as far back
as Professor Robert Warren's statement in 19k6 that "never before had
there been an economy that expected the majority of its people to be
totally dependent upon the continuity of a stream of money income,"
and his insistence that the primary task of the Federal Reserve System
is one of seeing that this continuity of the stream is not interrupted
by monetary failure.
Students on many levels who tried to test the
validity or the effect of this belief found that although the functions
of the Federal Reserve System are essential to efficient operation: of
the American economy, the System itself was not generally understood nor
its evolution adequately recorded.
What was worse, the materials which would be essential in any
re-examination of the record were disappearing.
In the words of the
original proposal, "the papers which would be needed as 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 found.
The men who have acted as architects and
builders of the present Federal Reserve System are already beginning to
disappear.
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."
4
Concern over such matters led to conversations in 1953 between
Mr. W. Randolph Burgess, formerly vice president of the Federal Reserve
Bank of New York, and Mr. Donald B. Woodward* an economist who had had
occasion to do research work in the field of Federal Reserve operations.
They discussed the problem with Mr. Allan Sproul, then President of the
Federal Reserve Bank of New York, with Walter W. Stewart, formerly
Director of Research for the Federal Reserve System, and Adviser to the
Bank of England, and others.
It was the informed and contagious
enthusiasm of these men that inspired the project proposals, first "for
an Exploratory Project looking toward the Collection, Appraisal, Editing,
and Use of Historical Materials on the Federal Reserve System," and then
for the longer and more extensive undertaking planned to be finished by
1959.
The vision was inspiring.
Its public value in a period when the
field of monetary history seemed particularly arid promised to be high.
Work Begins
The expectation in January of 195^* when the pilot project was
started, and in April of the same year when the success of the first
explorations became clear, was that Mr. W. Randolph Burgess, monetary
expert and writer, then on temporary appointment to the Treasury, would
take personal charge of the project when he was released, and would
possibly become the new historian of the System.
The plan provided
that at that time a new executive secretary would be secured, and
Miss Mildred Adams,
a writer on economic and political subjects who
5
had left the field of journalism to organize and c&rry out the pilot project,
would then be freed to become one of the writers commissioned under the main
project.
Working quarters were provided by the Federal Reserve Bank of
New York; the co-operation of Board of Governors of the Federal Reserve
System and the Federal Reserve Banks was assured.
A major setback came when Mr. Burgess was drawn more deeply into
public affairs as Deputy to the Secretary of the Treasury, and the Under
Secretary of the Treasury.
He consented to stay on the Committee, but
discouraged any hope that he might soon leave the field of active
participation in the management of the nation's finances for the quieter
role of monetary historian.
At this point the Committee began a diligent search for an
historian to assume direction of the project.
Meanwhile, it proceeded
with its archival and research activities and undertook to encourage
several monographic studies in accordance with the original plan.
From January 195^ to June 1956 Miss Mildred Adams served as Executive
Director of the project.
While the Committee searched for an historian,
Miss Adams, with characteristic ingenuity and effort, was highly effective
in advancing both the archival work and the monographs.
The Search for An Historian
The search for an historian occupied the major attention of the
Committee for two years.
The quest was for an able scholar with the
skill of an historian who could grasp the role of personalities and the
importance of critical events in the development of the System, and who
at the same time had an adequate grasp of central banking.
4
sjflifl
6
The limited number of economic historians with monetary knowledge
or experience in the United States, Canada, and Great Britain was carefully
scrutinized.
With the help of Miss Adams, a long list of possible candidates,
with career data, was prepared and considered.
From these a small group
was selected for further consideration, and several were interviewed.
The
leading choices for this important assignment eliminated themselves.
Others were eliminated by the Committee after thorough consideration.
During its search the Committee approached or seriously considered such
students of the subject as:
Philip Bell, Karl Bopp, Lester V. Chandler,
Howard Ellis, Bray Hammond, Per Jacobsson, F. Cyril James, Paul McCracken,
Redvers Opie, Winfield Riefler, George Roberts, Harold Roelse, Raymond
Saulnier, R. S. Sayers, Leonard White, Brooke Willis, Lucius Wilmerding,
Donald B. Woodward, Ralph Young, and many others.
frustrated its best efforts.
But ill fortune
Those whom the Committee wanted had other
commitments, and those whom they could get they could not for various
reasons accept with confidence.
At one low point in the discussions of the
Committee the difficulties were attributed by Dr. Walter Stewart to "the
frailty of our distinction."
Another statement of Walter Stewart,expressing
the view of the Committee, was, "I wish that the workers were as willing
as the field is ripe."
Experts themselves of the highest order, they
could not easily agree on the appointment of men of less than perfect
qualifications to chronicle events in which they, most of them, at one
time or another, had had an active hand.
Various proposals to "find and
develop" a younger man for the task came to failure.
The Next Crisis
By the spring of 1956, the failure to find a qualified historian
and the impending retirement of President Allan Sproul from the Federal
Reserve Bank of New York and his resignation as Chairman of the Committee
presented a critical problem.
The idea of devoting three to five years to
such a major study had appealed to no scholar able or willing to accept
the challenge.
The Committee was not inclined to push forward with its
other activities until there was a clarification of its obligations with
respect to the main history.
That a "definitive" history of the nature
and scope originally contemplated was not feasible had become clear.
The
Committee thought it likely, however, "that a history of scholarly
character and substantial worth" could be brought into being, and it
expressed confidence that a number of highly worth-while monographic
studies dealing with important aspects of the history of the Federal
Reserve System were feasible and desirable.
Revision Proposed
In a letter to the Foundation on June 5, 1956, Allan Sproul
reported these conclusions.
He explained that the Committee had been
reluctant to launch monographic studies of the sort proposed until the
fulfillment of its principal commitment for a "definitive" history could
be insured, or until a reorientation of approach could have the sanction
of the sources of its funds.
He reported the Committee's view that the
funds could properly and wisely be used for selective monographic
studies, even though the history might not be feasible.
Accordingly, Mr. Sproul on behalf of the Committee requested the
approval of the Foundation to relieve the Committee of its obligation to
bring about the writing of a "definitive" history and instead to allow it
to develop and encourage slightly less ambitious studies on the History
of the Federal Reserve System, including such monographs, essays, and
histories as may be possible,
This was expected to result in the prepara
tion and publication of a one- or two- volume history of the System if
such a treatment were at all feasible.
The Committee proposed to
encourage worth-while monographic studies and essays that would contribute
to a better understanding of the System, and would develop this part of
the project as a supplement to, or a substitute for, a more comprehensive
historical treatment.
It also asked to transfer the executive as well as the administrative
responsibility for the project to the Brookings Institution, with the
understanding that the Committee would continue to serve the project as an
Advisory Committee.
Foundation Reply
The Foundation (in a letter from Dean Rusk on June 19, 1956) gave its
assent to the transfer of full responsibility for the project to the
Brookings Institution.
It also agreed that the word "definitive" might be
"de-emphasized," since the Foundation had in mind "a living history and
appraisal of one of the unusual inventions of government, a review of the
experience of its functioning, and an analysis of its performance illumined
by the papers and memories of men who helped develop it and who took part
in its operation."
But the Foundation expressed its reluctance to abandon a "definitive"
history as a target, if by so doing this would rob the effort of its central
rationale and deprive it of an idea around which to organize the remaining
work.
It added:
"Most specifically, we would not wish to press for an
effort which could only result in a second-rate job which was only definitive
if measured by its bulk."
And in explanation it stated:
"In trying to assess present prospects, it should be said,
on the negative side, that the Foundation would not be
satisfied with a miscellany of incidental monographs or
papers which would not, in total, amount to a serious and
reasonably comprehensive account of the Federal Reserve
experience. We can well imagine that a one- or two-volume
history supplemented by first-class incisive monographs
would come as close to the original plan as is now feasible,"
The Foundation indicated a willingness to substitute the "living
history" concept for a "definitive" history and suggested two alternatives
(a) "a carefully planned series of monographs drawn together by a one- or
two-volume general history of the System," which would require no further
reference to the Trustees of the Foundation, or (b) "an even more carefully
planned series of monographs, with an over-all editor, which in total
would comprise a responsible anfl comprehensive account of the Federal
Reserve System," which "would involve thoughtful strategic planning of
monographs in relation to each other and would hopefully produce a
series which would not leave any major segments of the story unexplored,"
This latter alternative, if chosen, should, it was thought, be at least
reported to the Board of Trustees; "anything less would, of course,
require reconsideration by our Board since the main purpose of the
original grant would be directly involved."
a;
ii§S
10
Next Steps
At the time there was some hope that the Brookings Institution
ft
with the advice of the Committee might b® able to proceed with the first
alternative..
It negotiated with three different authors of promise,
but was unable to find a satisfactory basis for undertaking the study with
any of them.
It considered the possibility of laying a specific list of
monographs before the Foundation for approval, but was unable to negotiate
adequate "tentative" commitments to make such a plan feasible.
The
search for personnel has gone on, but several of the more promising
younger scholars have elected other research engagements in preference
to this.
Thus it now appears that, even if modified as suggested, the
project could not now be organized and staffed so as to offer reasonable
assurance of success.
The New Crisis
Meanwhile, though the Committee has to its credit some notable
achievements, there are other less favorable developments.
The Committee itself is no longer intact.
resigned and moved to the West Coast.
Allan Sproul has
Walter Stewart has died.
Randolph
Burgess is now occupied with important official duties in Europe.
The shortage of personnel is in no way relieved.
In fact the
situation is less favorable now than it was four years ago.
are competing avidly for able scholars.
major commitments.
Universities
Some of the most able have
The new Commission on Money and Credit, sponsored by
the Committee on Economic Development, will shortly be competing for the
all too few specialists in this field.
These developments have been discussed with Mr. Buchanan from time
to time, and it has been agreed that unless a qualified historian, commanding
the confidence of the Committee, could be obtained relatively soon to assume
responsibility for the project, it would be preferable to terminate the
project and release the unused balance of the appropriation.
Achievements
Though the central purpose of this project has not been achieved,
there is reason to take satisfaction in its other achievements.
These
achievements fall mainly in archival activities and research and in the
promotion of monographs.
(a)
The following may be noted:
Archival and Research Efforts were from the start one of the
Committee's major preoccupations.
The location and compilation of
research aids was one of the chief goals of the project.
It included
interviews with some 90 men whose work in the Federal Reserve System went
back to its early days; the location of pertinent papers belonging to key
people who had had a formative part in the System and their moving (when
possible) to recognized places of deposit where students could consult
them; visits to and interviews with officers of the twelve Federal
Reserve Banks; the compilation of biographic and bibliographic card
files bearing on the System and so constructed as to be of quick aid
to students and to writers of monographs or major works.
Those four divisions of effort produced a valuable amount of
material, and some unexpected results.
5
12
Paper Search
The hunt for papers was more fruitful than had been expected.
reported earlier, 106 pertinent collections were discovered.
As
A report
on the location of these collections with some indication of their size
and condition was prepared.
The Committee was instrumental in getting
several collections out of cellars and into libraries where students
could consult them.
It was also found that certain collections already on deposit
needed servicing in order to make them more useful to students, and this
in two notable instances the Committee was able to accomplish.
The
Carter Glass papers, on deposit in the Alderman Library at the University
of Virginia, were rough-sorted according to date, but no one knew what
was in them nor where to find it.
Under the leadership of the late
E. A. Kincaid, then emeritus professor of economics at the University
of Virginia, and with a grant from the Committee, the papers were
inventoried.
With a subsequent small grant to the library under the
direction of Francis L. Berkeley, an index was prepared.
Copies of the
inventory have been distributed to 36 selected libraries, and copies of
the index will follow.
The second grant followed the discovery that New York City, the
financial center of the United States and at certain periods a critical
center of monetary affairs for the whole world, had no financial library
which students could use as a base for research on the monetary history
that is made daily in the city.
Recognizing the need for such a center,
the Committee held a series of conferences with officials of Columbia
$
13
University for the purpose of stirring interest among their librarians.
As a tangible example of the kind of material which needed such a home,
the Committee persuaded Mrs. Frank Vanderlip to part with her husband's
papers (dealing with the debates on monetary reform which led to the
creation of the System) and then granted $1,500 to the Columbia University
Library to pay the costs of arranging them for student research.
Following this, Mr. George Harrison, second President of the Federal
Reserve Bank of New York (and recently deceased) entrusted his papers
to the same library with the encouragement of the Committee.
In the course of this branch of the work the Committee collected
a number of items for which a permanent place should be found.
Papers
belonging to James Curtis, Frederic Curtiss, Paxil Warburg, Leon Fraser
and others, a unique compilation of court decisions affecting the
Federal Reserve System which was compiled for us by the then Chief
Counsel of the System, Mr. George Vest — these are examples that
rank as important by-products.
Meanwhile, the second branch of original research — the interviewing
of persons active in the early days of the System's development — proved
at once more tantalizing and more complicated than had been expected.
A
report made to the Foundation in October 1955 described and evaluated
the three types of interviews developed — the memory type, directed
toward retired officials for the purpose of eliciting residual impressions
of early days (of which some 90 were recorded), the bank interview leading
toward "the sketching of what might be called an historical profile of
each of the twelve Federal Reserve Banks," and the group or conference
*
14
interview.
Of this latter type the most important were two which the
Committee held at Princeton among its own members.
of extraordinary interest and potential value.
These contain material
Transcripts of all three
types form a valuable part of the Committee files.
It is unfortunate that
pressures of time made it impossible for the staff to carry these further.
Both the bank interviews and the conferences, if enlarged and refined, would
have yielded riches that in the time available could barely be touched.
The third branch of research activity took the form of industrious
creation of card files designed to ease the student's task by speeding
the finding of essential data.
As reported to the Foundation in October
1955 , these card files include first, career and basic biographic data
for all Board members, senior officers and directors of the twelve Federal
Reserve Banks from 1914 to 1954, with some later additions for 1955; we
also have a sub-file for economists and monetary experts who are imp<M?tattfe
in Federal Reserve History and for those who might become participants in
this project.
Second, a chronoligical card file covering the forty years of
System history has been developed.
This file lists not only pertinent
government officials but also the legislation affecting the System, the
litigation, the chief Congressional hearings, the policy actions taken.
In addition to this an "Influential Events" file was designed in order
to supply a quick guide to the social and political atmosphere in which
the monetary history was unrolled.
%
15
Third, an extraordinary bibliographic file was established.
It
covers the periodical contributions and independently printed material —
doctoral theses and the like — which form so large a part of modern
monetary literature and which are not brought easily to hand in the
usual bibliography.
The original intention was to have these card files duplicated
for the benefit of students in other centers than New York, but this
has not yet been done.
They would be of service to any student working
in this field, and of special value to such a group as the new Commission
on Money and Credit.
One unexpected but briefly important aspect of the research and
archival efforts was the effect of bank interviews on the whole process
of evaluating and keeping records in the Board and the twelve Banks.
In her visits to the twelve Federal Reserve Banks, Miss Adams found
very early that a combination of limitations on space and lack of
historic awareness in certain of the banks had already resulted in
the destruction of irreplaceable old records and was steadily eating
away at what remained.
In her report for 19524.-55 , appended to the
Committee report of October 1955, she described conditions in the
individual banks and noted the effect of so-called "destruction schedules"
on future historical studies.
With the encouragement of the Committee
she was able in the spring of 1956 to secure from a pertinent System
committee a change of wording by which the retention of certain
papers was stressed at the same time that permission was granted to
destroy others.
f
16
Since then, i t has become apparent that the visits made, the
q u e stio n s asked, the q u e stio n n a ire s provided in the course o f v i s i t s
to bank lib r a r ia n s have re s u lte d in a marked change o f a ttitu d e among
System lib r a r ia n s .
Newly aware o f the importance o f a rchives and
h is t o r ic a l m a te ria l, fe e lih g w ith t h i s an enhancement o f the value o f
t h e i r own work, they are now c o n sta n tly on the outlook f o r a rc h iv a l
and h is t o r ic a l m a te ria l and a c tiv e ly in te re s te d in i t s p re se rv a tio n .
Other In flu e n c e s
No re p o rt o f the work accomplished under t h i s p ro je c t would be
complete w ith o u t mention o f p e rip h e ra l and associated a c t iv it ie s
which owe impetus o r encouragement to the e f f o r t s o f t h i s Committee.
The work done and the in t e r e s t created are c o ntinuing to s e t o f f chain
re a c tio n s.
The p u b lic a tio n o f Bray Hammond's book on Banks and P o l i t i c s
from the R e v o lu tio n to the C iv i l War i s one o f the se ; h is second volume
when completed w i l l be another.
A lla n S p ro u l"s im portant speech e n title d
"R e fle c tio n s of a C e ntra l B a n k e r," made a t a luncheon meeting o f the
American Economic A sso c ia tio n and the American Finance A sso c ia tio n i n
December of 1955, and re p rin te d in the Jo u rn a l o f Finance, f o r March 1955>
continues to suggest to stu d e n ts th a t monetary h is t o r y needs f u r t h e r work.
The Committee would n o t claim c re d it f o r the founding o f the new
Commission on Money and C re d it, but i t i s n o t w ith o u t sig n ific a n c e
th a t members of the one are active in v a rio u s aspects o f the o th e r.
There i s every reason why the f i l e s on the H is to ry o f the Federal
Reserve System could f a c ilit a t e the work o f t h i s new commission.
s
17
(t>) Encouragement of Monographic Studies.
At the outset the
Committee offered encouragement to a number of scholars who were
contemplating research in specialized aspects of the history of the
Federal Reserve System.
Ben.iamin Stro n g — C e ntra l Banker, by L e s te r V. Chandler
One of the most important activities of the Committee was the
commissioning of the biography of Benjamin Strong — Central Banker
by Professor Lester V. Chandler of Princeton.
In this project the
Committee provided counsel, editorial suggestions, and the necessary
financial support.
Making use of hitherto unused files in the Federal Reserve Bank
in New York and in possession of the Strong family, Professor Chandler
prepared a fascinating twelve-chapter study of Benjamin Strong's
influence in shaping the developments of the Federal Reserve System
from its inception to 1928, when Governor Strong died.
The manuscript,
which is now in press, has been read by the whole Committee and the
response has been enthusiastic.
One member of the Committee, for example,
has stated, that "It is an outstanding job, and alone, I feel, justifies
the formation of the Committee on the history of the Federal Reserve
System."
Another member of the Committee has commented:
". . . . This
seems to me a splendid job and I feel very proud to have had some
responsibility for its having been done.
This manuscript should be
very instructive and useful and it comes at a very fortunate time when
the Federal Reserve System and its policies are again a matter of
widespread interest."
book."
Another has said, "I am enthusiastic about this
The volume will be published by the Brookings Institution in
the fall of 1958 .
Other Monographic Studies
Other monographic studies which the Committee coaxed, encouraged,
and helped include the following:
1.
A study of "Selective Credit Controls," by Carl Parry,
who died suddenly in Washington in January 1958.
Before
his death he had completed the study and he left it almost
ready for publication.
The Brookings Institution will do
what it can to arrange a reading of this manuscript and
help in arranging for publication.
2.
A study of the "Legal Aspects of the Lending Function of
Federal Reserve Banks," by Howard Hackley, now General
Counsel for the Federal Reserve Board.
encouraged by the Committee,
This study was
The author had completed
the major part of the study before assuming his present
position.
He hopes to be able to finish the manuscript by
the summer of 1958.
The Institution hopes it may be of
some assistance in arranging for publication.
3.
The Committee was able to assist Mr. Bray Hammond,
formerly of the staff of the Federal Reserve Board, who
has been writing his history of banking in the United States.
The first volume, "Banks and Politics in the United States,
i
19
from the Revolution to the Civil War," was published by
the Princeton Press in 1957, and Mr. Hammond is now
embarked on a second volume which will deal with the
same subject from the Civil War to the Banking Act of
1935 > thus including the first twenty-two years of the
System's life.
These volumes were projected before the
Committee came into existence.
The Committee has
followed the work with interest, however, and its
Executive Director aided Mr. Hammond in finding a
publisher for the first volume and actively encouraged
work on the second.
It is especially gratifying that the
first volume received a Pulitzer Prize for 1958.
1*-.
For some time the Committee and Miss Adams in particular
have urged Mr. Allan Sproul to write up his experiences
with the New York Bank.
Thus far no definite arrangements
have been made, but Mr. Sproul is considering the possibility
of publishing a volume of his addresses while President of
the Bank, and of preparing a second study of Policy Making
in Critical Years.
This would include an eye witness account
of the Treasury-Federal Reserve Accord of 1951.
possible subjects have been explored.
Other
It is hoped that some
arrangement can be made to finance the writing of these
studies.
€
20
Ev a lu a tio n
The disappointm ent o f Committee members over the f a ilu r e o f
t h e ir e f f o r t s to secure an h is t o r ia n o f the desired dimensions to r e
place the author o r ig in a lly intended f o r "the h is t o r y " should not
obscure e ith e r the q u a n tity o r the q u a lity o f the work done under
the auspices o f the Committee.
The Stro n g biography alone i s a note
worthy accomplishment, and indeed may w e ll j u s t i f y the e n tire p ro je c t.
Added to th a t are the two te c h n ic a l monographs w r itte n by M e ssrs,
Hackley and P a rry , the in te rv ie w s and the lo c a tio n o f papers, the
encouragement o f a center f o r banking c o lle c tio n s a t Columbia U n iv e rs ity ,
the work done w ith in the System to create a sense o f the importance o f
p re se rv in g h is t o r ic re cord s, the c re a tio n o f research aid s in the form
o f biographic, i n s t i t u t i o n a l and b ib lio g ra p h ic a l f i l e s ,
and the v a rio u s
fo c i o f in t e r e s t planted among banking lib r a r ia n s and among monetary
econom ists.
More s u r p r is in g , perhaps, was the e ffe c t which t h i s work had a t
va rio u s le v e ls o f the System i t s e l f .
Not only did i t brake the
automatic d e s tru c tio n o f a rc h iv a l m a te ria l, b ut by some c u rio u s magic
i t sowed w ith in the System a sense o f the Importance o f the h is t o r y
o f the d a ily processes w ith which men and women were w orking; t h i s ,
we are assured, means n o t only more a tte n tio n to the saving o f u s e fu l
records, but w i l l a lso be o f c o ntinuing b e n e fit to sc h o la rs in the
fie ld .
4
21
The whole body of work done, work inspired, and interest
created represents an example of the kind of contagious educational
stimulus made possible by Foundation funds.
The Committee knew
that the field of monetary history had been largely abandoned.
It
chose to apply a specific stimulus to work in that part of the field
which concerned the Federal Reserve System.
The field is still
neglected, but the encouragement that has been given will help to
induce others to work in this area.
A country with an economy which
depends for its life on "the continuity of a stream of money income" needs
to know more than it does about the institutions that influence the flow
of that stream and the forces that tend to clog or to stimulate its
flowing.
Conclusions and Recommendations
The Institution and the Committee regard the accomplishments
of this Committee as important contributions toward the eventual
understanding of the role and the development of the Federal Reserve
System.
The Committee deeply regrets that it has been unable to find
qualified personnel to carry out the exceptional purposes which the
Committee had sought to achieve.
The Committee has come reluctantly
to the conclusion that the project should be terminated on June 30,
1958, and the unspent funds should be released.
In making this proposal
the Committee offers several specific recommendations:
1.
The subject continues to be important, and is perhaps
more important now, as our financial institutions and
policies come under further investigation, than it was
'4
22
when originally proposed.
It is urged, therefore, that
in the years immediately ahead, the Foundation give
sympathetic consideration to requests for support from
able scholars for the preparation of monographic studies
on important aspects of the history of the System, and
that this support be extended to cover the preparation of
memoirs and other studies by distinguished participants
ill the System who wish to record their experience and
impressions.
Such materials will become of great value
to future students of central banking.
2.
The lack of qualified, scholars with an interest in the
history of central banking and central bank policy
represents a serious gap in scholarship.
Encouragement
in the form of scholarships or research grants to develop
scholars in this field of interest would be well justified.
3.
In this, and in other important fields, where a generation
of elder statesmen is available and willing to assist young
scholars to understand the development of contemporary
institutions and policies, some machinery (preferably in
the form of the research seminar, with a director and funds
for grants and travel) could properly be established in
existing institutions to encourage and consider research
opportunities and findings.
Such seminars would afford an
invaluable opportunity to transmit to younger scholars the
experience and wisdom of those who have helped to shape
23
our economic life.
It is hoped that the Foundation may
find ways to assist the development of such seminar groups
for they will not only help to explore the origin and
development of social institutions, but will in addition
transmit something of the wisdom of the past to the future.
4.
To these ends the Brookings Institution will be glad to
co-operate and do what it can to further the research
objectives stated.
5.
The physical property belonging to the Committee — file
cabinets, research and bibliographic aids, and so on, were
moved to the Brookings Institution in June of 1956 and have
been kept under lock and key except when opened for use
by properly qualified research students.
It is recommended
that they be kept in that Institution, that'books contained
in the material be incorporated in the Brookings library, and
that files be made available to properly qualified research
students at the discretion of the President, and with due
regard for the confidential nature of certain information
included in them.
F in a n c ia l Report
The Foundation appropriated a total of $320,000 for this project.
The first grant of $10,000 in January 195^ (GA-SS 5^05) was used for
the pilot project over the first four months.
The subsequent grant of
$310,000 in May 195k (RF #5koSl), to run until May 31, 1959, has
financed the work since May 195^.
Most of the expenditures were made
w
2k
during the first two years for the archival and monographic work carried
on under the supervision of the Executive Director.
When after June
1956 the efforts to find an author were unavailing, further expenditures
for archival work and monographs were limited to necessary outlays to
complete commitments already made.
Of the $320,000 provided in the two grants (which we were
authorized to treat as one grant), $99)830.19 has been expended or
committed.
Of this sum $90,484.29 was expended or committed before
June 30, 1956 , and $9,345-90 during the past two years.
The expenditures to June 30, 1958 have been for the following
purposes:
Executive Director and her staff . . .................. $ 49,367.09
Archival and bibliographical work . . . . . . .
6,149-88
Kincaid-Glass project ................................ . . .
5, 036.24
Chandler-Strong project . . . . . . .
..............
20,600.01
Two conferences of Committee at Princeton . . .
1,996.50
Other t r a v e l.............. ... .........................................
4,828.57
Office costs (direct and indirect) . . . . . . .
11,851*90
Total
. . . . . . .
.....................
. . . . . . . $
99,830.19
Of the total grant, $95,238.39 has been paid to the Institution.
An
additional payment of $4, 591.80 is due the Institution to balance
the account.
We believe that highly worth-while results for the longer run
have been achieved for the money expended.
We regard the accomplish
ments reported as well worth the time and effort devoted to the project
25
by the Committee and the Institution, and we are glad to have had the
opportunity of serving in this effort.
Respectfully submitted,
Robert D. Calkins, President
The Brookings Institution
Copies for the Committee:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Allan Sproul
W. Randolph Burgess
F. Cyril James
William McC. Martin, Jr.
Joseph H. Willits
Donald B. Woodward
7/17/75
MEMO
To: RDC
From: eb
Re: History of the Federal Reserve System
A grant of $10,000 was received from the Rockefeller Foundation for the pilot study:
request for grant, January 7, 1954; notice of grant, January 21,1954; payment of grant,
February 5, 1954.
Report on pilot project: 4/20/54.
(unexpended balance of grant
added to grant for major study)
Request for grant for History of Federal Reserve System: April 16, 1954; notice of
grant: May 24, 1954.
amount of grant: $310,000 (in addition to previous $10,000 grant).
Payments under the grant to be on a semi-annual basis, contingent on receipt by the
Rockefeller Foundation of a project budget at the beginning of each year.
Payments received (additional to the original $10,000):
June 1954 - $26,662.50
Jan. 1955 - 26,662.50
Jan. 1956- 31,913.39
Aug. 1958 —
4,591.80 (received after notice of termination, to balance acct. of expend.)
Project terminated June 30,1958; formal notification by RDC to Dean Rusk{
(with financial statement) July 16,1958.
Total expenditures (both grants) — $99,830.19.
Original members of the Committee on the History of the Federal Reserve System
were:
Allan Sproul (Chairman)
W. Randolph Burgess
Robert D. Calkins
William McC. Martin, Jr.
Walter W. Stewart
Donald B. Woodward
Added later: F. Cyril James
Joseph H. WUIits
(Mr.Stewart’s name does not appear on the final report.)
PR O JE C T :
F e d e r a l R e s e r v e Study
FOUNDATION:
ROCKEFELLER
Pilot Study
R e q u e s t f o r g r a n t : J a n u a r y 7, 19 5 4
N o t i c e of g r a n t :
J a n u a r y 21, 1954
G rant:
$10,000
P e r i o d : to A p r i l 30, 1 9 5 4 ( e x t e n d e d 4 / 3 0 / 5 4 to 9 / 3 0 / 5 4 ) U n e x p e n d e d b a l a n c e added
to l a t e r g r a n t .
P a y m e n t : F e b r u a r y 5, 1 9 5 4
T e r m s : F o r a n e x p l o r a t o r y study of h i s t o r i c a l m a t e r i a l s r e l a t i n g to F e d e r a l R e s e r v e
S y s t e m , to be a d m i n i s t e r e d by B I in c o l l a b o r a t i o n w it h C o m , on H i s t , of F R S .
R e p o r t s : S t a t e m e n t of r e c e i p t s and e x p e n d i t u r e s at en d o f p e r i o d of g r a n t .
H i s t o r y o f the F e d e r a l R e s e r v e S y s t e m
R e q u e s t f o r g r a n t:
N o t i c e of g r a n t :
Grant:
A p r i l 26 , 1954
May 24, 1954
$ 3 1 0 , 0 0 0 (i n a d d i ti o n to th e $ 1 0 , 0 0 0 g r a n t )
Period:
Five y e a r s
Paym ent:
(to M a y 31 , 1 9 5 9 )
s e m i - a n n u a l , c o n t i n g e n t on r e c e i p t of p r o j e c t bud get at b e g in n in g of e a c h y e a r .
Term s:
F o r the p r e p a r a t i o n of a H i s t o r y o f the F e d e r a l R e s e r v e S y s t e m , on the
u n d e r s t a n d i n g th a t the p r o j e c t would be a d m i n i s t e r e d j o i n t l y by the B r o o k i n g s
I n s t i t u t i o n and the C o m m i t t e e on the H i s t o r y of the F e d e r a l R e s e r v e S y s t e m .
Any b a l a n c e u n e x p e n d e d on M a y 31 , 1 9 5 9 w i l l r e v e r t to the F o u n d a t i o n .
[ L e t t e r s of 6 /5 / 5 6 and 6/ 1 9 / 5 6 ] — F u l l r e s p o n s i b i l i t y f o r a d m i n i s t e r i n g p r o j e c t t r a n s
f e r r e d to the B r o o k i n g s I n s t i t u t i o n , with the C o m m i t t e e s e r v i n g in an adviso ry
capacity.
Reports:
Annual s t a t e m e n t s of r e c e i p t s and e x p e n d i t u r e s .
SCHEDULE
Budgets
submitted
6/15/54
(1954-55)
1 2 / 21 / 5 5
(1955-56)
Paym ents
R eceived
2/5/54
$10,000
6/29/54
$26,662.50
J a n . 1 95 5
$26,662.50
1/9/56
$31, 913.39
P ro g re s s Reports
Submitted
4 / 2 0 / 5 4 - R e p o r t ©n
Pilot P r o je c t
6 /5 / 5 6 - R e p o r t by
Allan Sproul
ni>
/
I
F in a n c ia l Repo r t s
(due a nn ual ly)
Se nt
11 / 22 / 55
MM
S t a t e m e n t of f in a r c i a l s t a t u s a s e s t .
f o r 6/30/56
6/ 5/ 56
7//*/;>"&
1 /
/'
/
/V}'
/
\
M arch 3 , 1 9 5 9
Sir, John H. Greenfieldt
Office of the Comptroller
The Rockefeller Foundation
49 West H9th Street
Hew York 20, New York
Dear Mr, Greenfieldt:
I beg to enclose herewith my further and final report of our
expenditures for the project on the History of the Federal Reserve
System, under grants by the Rockefeller Foundation numbered GA-SS 5405
and 54061 and totalling $ 320, 000.
As you will recall, the project was cancelled as of June 30, 1958#
except for certain cleanup expenditures which were outstanding on that
uate. Meanwhile, we had included an estimate for these items in a table
of expenditures which I submitted under date of July 15, 1958.
As requested in your letter of August 22, 1958, I have now revised
this report so as to reflect solely our actual costs and no estimates,
which I submit herewith in two parts.
The first part is a schedule of obligations and disbursements,
July 1, 1958# to March 1, 1959# which explains what items in the expendi
tures for 1957-58 were estimated and compares these with actual payments.
The second part represents a re-working of our summary report for incorpora
tion of the changes.
You will note that we have absorbed a small difference of $5*92
between our advance report and actual experience, so that expenditures
aggregating 199#830.19 are equal to the total of $99*830.19 which we
have received from you for the project, including $4,591.80, received
August 1958.
I trust that you will now be in a position to formally close the
grant on your books. If not, please let us know what is required further.
cc:
M e.
Dr. Calkins
Mr. Akers
Miss Long
Mrs. Birkel
Miss Maroney
Yours sincerely,
Treasurer
S c h e d u le o f O b l i g a t i o n s and D is b u r s e m e n ts
Project on the History of the Federal Reserve System
July 1, 1958# to March 1, 1959
Estimated
Further Expenses
jujfc 30. 1958
Staff salaries - for editorial work on
manuscript for Chandler-Strong project . . .
$
500.00
Actual Costs
These Items,
$
5^3.63
Contract costs - for Indexing and proof
reading work on Chandler manuscript * . . .
850.00
Honorarium for Miss Adams (Executive
Director of project) . . . . . .....................
1,200.00
Supplies and miscellaneous - for binding
and mailing the Carter Glass Papers
Inventory . * * . * . * . ............................
600.00
Manufacturing cost - Chandler/Strong project .
6,775*00
7 , 054.39
$9,925.00
$ 9,930.92
Totals
• # ..........................................
Less transfer to general fu n d s .............. ... . .
Totals under grants
............................
Expended prior to June 30, 1958
_ _ _ _ _ _
$9*925.00
756.65
1,000.00
576.25
- 5.92
$9,925.00
M ilQ ld S.
.....................
Totals on Sumnary Reports
July 15. 1958
.
March 1, 1959
.
M££e.ggnces
$99,830.19
$99,830.19
% 3 .6 3
- 93.35
-
200.00
- 23.75
+ # 9 .3 9
+ 5.92
- 5.92
Final Report of Expenditures
Project on the History of the Federal Reserve System
Under Rockefeller Foundation Grants GA-SS 5405 and 54061 ($320,000 Combined)
Expenditures - Ob jects
____________ Fiscal Years ended June 30_________________
1955
1955
1956
1957
1958
Salaries ..................................................... $ 8 , 865.30 $23,016.10
Contract costs ..........................................
1,333-33
6,380.52
H o n o r a r ia .................................................
!|00.00
Miscellaneous services............................
557-00
10 , 198.63 30,355.51
Grant to Columbia University..................
957.66
3, 500.11
Travel and subsistence . . . . . . . . .
Supplies and miscellaneous .....................
802.35
1,910.13
Brookings Institution Overhead Allowances
3,000.00
Manufacturing c o s t ...................................
T o t a l s ................................................. &?.,Q3$,65 $38.755.75
$20,829.53
2,582.53
50.00
175.It5
23 , 536.50
1,500.00
1,159.41
1 , 295.90
3,000.00
$30.591.71
$
-expenditures - Purposes
Executive Director and her staff . . . . $ 8 , 669.85 $20,490.00
-Archival and bibliographical work . . .
3,141.69
Kincaid-Glass project ............................
1,333-33
2,737-91
Chandler-Strong project . . . . . . . . .
3,000.00
Two Princeton University conferences . .
1,996.50
Travel - General . ...................................
957.66
2,397.33
Office costs - d i r e c t .............. ...
1,077.83
1,991.32
Office costs - indirect .........................
3.000.00
$18 , 819.19
3,008.19
2,4 82 .53
1,127.41
2,054.39
3.000.00
$30.531.71
T o t a l s ................................................. $12.038.65 -ti38.T5it.72
Totals
652.39 $ 2,538.05
2,701.lU
2,531.65
- 1,000.00
TTO.6lt
3 , 73 3 -1 ?
5 , 869.69
253.13
93.04
348.75
889.04
- 7.358.27
$5.335.05 $15.210.05
$ 55 , 801.26
1 5 , 329.07
1,550.00
1.102.07
7 3 , 682.50
1,500.00
5,963*35
5,326.17
6,000.00
7.358.27
$99.830.19
$
188.05 $ 1,000.00
9^1.25
3,165.48 12,175.75
253.13
93.04
728.39
-
$ 49, 167.09
6,149.88
5,012.49
20 , 823.76
1 , 996.50
4,828.57
5,851.90
6.000.00
$5.335.0'; M ja.Q ,..g5
$99.330.19
I certify that this is a true and correct statement of our costs
for the project on the History of the Federal Reserve System. Our pre
liminary statement, dated July 15, 1958 , contained an estimated $9 , 925.00
in commitments for further expenses. Those estimated figures have been
eliminated from the present statement, and the actual costs of liquidating
the commitments have been inserted in their place. The substitutions
alter slightly the composition but not the totals of the last two columns,
in accordance with details on the attached schedule.
Treasurer, The Brookings Institution
March 2, 1959
J u ly 16, 1 9 5 8
M r . Dean Rusk
President
The Rockefeller Foundation
49 W eit 49th Street
New York 20, N ew York
Dear Dean:
In 1954 the Rockefeller Foundation made two grants to be
administered by the Brookings Institution lor the Committee on
the History of the Federal Reserve System. I am enclosing here
with a report on that project, which records a number of worthwhile accomplishments and also reports our failure to find a
suitable historian to undertake the principal writing assignment.
The Committee considers that the forthcoming volume on
"Benjam in Strong -- Central Banker,** by Lester V. Chandler,
is a major contribution for which the Committee can take some
credit. This volume is being published by the Brookings Institution
and will appear in the early fall.
The Committee has concluded that, in light of its inability
to proceed with the original plan or a suitable modification of the
plan, the project should be terminated as of June 30^1958. This
and several related recommendations are found on pages 21 -23
of the enclosed report.
During the period of its operation, the Committee has
expended $99,830.19, the majority of which was spent on archival
work and central staff, which was maintained during the first two
years of the project for the purpose of collecting papers and doing
background research which would be helpful in writing the history.
When we encountered difficulties in finding a suitable historian
these activities were curtailed and the funds conserved. To date
the Foundation has paid to the Brookings Institution under these
M r. D ean R u sk
-2-
7/16/58
two grants $95,230.39. An additional payment of $4,591.SO is
due the Institution to balance the account. W e will be glad to
receive a check lor this sum if it meets with your approval.
A full financial statement up to June 30, 1958 for the
project ic enclosed. A similar statement is being sent to the
Comptroller of the Rockefeller Foundation.
Let m e say finally that the entire Committee appreciates
very much the interest, the financial support, and the patience
of the Foundation during these past four years while efforts
were being made to undertake the project originally contemplated.
W e axe especially sorry that it was not possible to carry out the
project at this time.
Sincerely yours,
President
Enclosures
FINANCIAL REPORT - June 30, 1958
Project on the History of the Federal Reserve System
Under Rockefeller Foundation Grants GA-SS 5405 and 54061 ($320,000 Combined)
Expenditures - Objects
195^
Fiscal Years ended June 30
1956
1955
1957
$ 8 , 865.30
1,333.33
$23,016.10 $20,829.43
6,380.42
2,482.53
400.00
50.00
174.44
___________________5.V 7...93
10, 198.63
30, 341*-.51 23,536.40
Grant to Columbia University . . . . .
1, 500.00
957.66
Travel and subsistence ..................... .
3, 500.11
1,159.41
Supplies and miscellaneous . . . . . .
1,295.90
1,910.13
882.35
Brookings Institution Overhead Allowances
3 000.00
3 000.00
........................ . _
Manufacturing cost
Salaries 0 0 0 0
Contract costs . . . .
Honoraria ..................
Miscellaneous services
,
Totals
. ......................... . . . . .
7.084.80
,
6 000.00
7.084.80
$4,335.05 $14,210.04
$99,830.19
$ 8, 669.85
$20,490.00 $18,819.19
3,141.69
3,008.19
2,737.91
3. 000.00
2,482.53
1, 996.50
1,127.41
2,397.33
1,991.32
2,054.39
3.000.00
3.000.00
$ 188.05 $ 1 ,200.00
________
$49,367.09
6,149.88
5,036.24
20, 600.01
1,996.50
4,828.57
5,851.90
6 000.00
$38,75^.75 $30,491.71
$4,335.05 $14,210.04
$99,830.19
-___________ -
95,238.39
Receipts (GA-SS 5^05 and 54061) ..............
10, 000.00
93.04
912.79
253.13
348.75
$55,757.63
15,422.42
1, 650.00
1.102.07
73,932.12
1, 500.00
5,963.35
5,349.92
$38,754.75 $30,491.71
$12,038.64
1,333.33
957.66
1,077.80
........................................................ ...
I certify that the above
and the total include $9,925.00
1958. Theee accounts have been
Public Accountants, Washington,
under audit.
652.39 $ 2,394.41
2. 525.00
2,701.14
1 . 200.00
372*6.4
3,733.17
6,119.41
Totals
$12,038.64
Expenditures - Purposes
Executive Director and her staff .
Archival and bibliographical work
Kincaid-Glass project . ..............
Chandler-Strong project ..............
Two Princeton University conferences
Travel - General
. . . . . . . .
Office costs - direct .................
Office costs - indirect . . . . .
Totals . . ...............................
.
Deficit
,
$
1958
53,325.00
31,913.39
965.OO
11, 952.00
3,165.48
93.04
253.13
728.39
..............
. . . . .
,
$ 4,591.80
statement is correct, with the understanding that expenditures for 1957-58
which is reserved for liquidation of commitments outstanding as of June 30,
audited through June 30, 1957, by G. P. Graham and Company, Certified
D. C. Accounts for the period, July 1, 1957 - June 30, 1958 are now
Treasurer, The Brookings Ir
July 15, 1958
T H E ROCKEFELLER FOUNDATION
49 W E8T 49th STREET, NEW YORK 20
Cam * A i i t i t i i
fcoexpoew*, Nsw Y o* k
O fflC I OF THS COftCPTftOLLSK
r o w s s. m u , c o n m o u n
TsuiPHoatKf
JOHN tf, QRIINPIILDT, AMISYAKT COMnUCMLUM
?0»t« M, O K IV IM , ASSISTANT COMrntOMJHl
COuwwi
Auprust 22, 19^8
Re: RF5U061
Dear Miss Maroney:
In accordance with President Calkins’ request
of July 16 we are enclosing a check in the amount of
591.80.
May we thank yo'j for submitting the detailed
summary of expenses, actual and committed, for the
period July 1, 19H& through June 30, 19?8. We note
that you have entered the amount of $9,??5 as a commit
ment for further expenses. We shall, of course,
expect to receive a statement of the actual costs
incurred in the liquidation of these obligations.
When that statement is received we shall be in a position
to formally close the grant on our books. We would hope
that this statement might be received some tine before
May 31, 1 9 & .
Sincerely yours,
Miss Mildred Maroney, Treasurer
The Brookings Institution
722 Jackson Place N.W.
Washington 6, D.C.
FW:CH
Enc.
I n l y 25, I f S S
M r. JLeland DeV inney
The Rockefeller Foundation
49 Weet 49th Street
N ew York 2@» Mew York
Dear Lee:
Thank you very much for your note ef July 23
regarding til# report on the project for the History
of the Federal Reserve System. I am glad to have
your approval regarding the disposition of Hie
physical property.
W e will send you in the near future copies of
the Benjamin Strong biography and any other publi~
cations we can bring into being.
Sincerely yours*
President
'CCTl
OcersC
MIS£ Maronei
M
r s .
1
Bir’cei.
THE ROCKEFELLER FOUNDATION
4? W EST 49th S T R E E T , NEW YORK 20
C&gLg AlHMfcSBSSt
T H E SO C IA L S C ii M C I I
M O H M A K S. I t 'C H A S A W , O I H S C T O *
L B L A M & C . D S VIW W B Y,, A S S O C I A T E » I « K C T O R
S C E K K B TH W . T H O M P S O N , A S S O C IA T E D IR E C T O R
RO G K& F . B V A S fS ' A S S I S T A N T 0 S R E C TO 1S
EftSaClKS W . M C K 1K L I T , A S S I S T A N T » I K * C T O R
M O M TA G U S y U D R L M A K , A S S X tT A IfT D IR B C TO R
&3CKVO&H&, New Yosk
TmUSPMOWKi
c©s,um*vs s-si m
J u ly 23, 1958
Dear Bob:
T h is will acknowledge and thank you f a r your
l e t t e r o f J u ly 16 to Dean Rusk and the enclosed re p o rt
on the p ro je c t fa r the H is to r y o f the Federal Reserve
System and recoraaendations concerning termination o f
the p ro je c t. Heedless to say, m share both your
disappointment about the f a ilu r e to fin d the key
person re q u ire d to b rin g t h i s p ro je c t to su c c e ssfu l
completion and also your q u a lifie d satisfaction about
the acca&plishaents th a t have been achieved,
I am passing the financial report along to
our C o n t r o lle r for appropriate a c tio n .
We note your reccsmendations on pages 21 to
23 and, o f course, w i l l give these our continuing
attention. We concur in the reecraaend&tian concerning
d is p o s itio n o f the p h y sic a l p ro p e rty belonging to the
Con*ittee. We look forw ard 'to seeing the biography
o f Benjamin Strong whac i t comes froa th® press and
subsequent monographs as these may appear.
S in c e re ly yours
M r. Robert D. C a lk in s, P re sid e n t
The Brookings I n s t i t u t i o n
722 Jackson Place, N.W.
Washington 6, D.C.
LCDseo
cc:
Mr. Akers
Miss Maroney
Mrs. Birkal l'
July 16, 1958
Hr. John H. Qreenfieldt
Assistant Comptroller,
Tha Rockefeller Foundation,
i*9 West U9th St.
Sot York 20, N. I*
Dsn? Hr* Qreenfieldit
Res
Rockefeller Foundation Grants QA-SS *3»05 and & 0 6 1
For a Sttady of the History of the Federal 8# »«n « Syetast#
At this tiae, I a* writing you further pursuant to
1sttar of
April 3 , 1958, following your inquiry on ths status of the above account.
It is sgr understanding that Dr* Robert D. Calkins, President of
The Brookipgs Institution, is sailing a fall report, with conclusions and
reconraendations, to ths President of the Rockefeller Foundation*
A copy
of his report is enclosed herewith.
This report also contains a
financial statenant in cumulative or suiaroary fora. (See last three paces*)
In addition, I beg to sutaait herewith a nore detailed financial
report.
I have previously filed reports for our fiscal years ended
June 30, 195U and 1955*
On this current report, I here added expenditures
for our fiscal years ended June 30, 1956, 195?, and 1958, showing total
expenditures of $99,830.19 against receipts of $95,238,39, for GA-6S 5U<$
and 5^063. combined,
(Dr. Calkins will also send this statenent to
Di* Rusk.)
I would like to add ths following explanation of ay certification*
The total of expenditures shown is #99,830.19*
Of this amount, $89,905*19
had been disbursed as of June 30, 1958*
The balance of $9,925*00 represents
charges which we have entered to set up a reserve fas* further costs which are
impending.
These iteas are the cost of binding and distributing the
inventory of the Glass papers; amounts needed for proof work, Indexing and
aanufacturing cost in connection with the biography of Benjamin Strong by
Dr. Lester V. Chandler j and far toe unpaid fee and expenses of Miss Adaas for
her work on conclusion of the project (hiring the spring of 1958*
While this procedure was necessitated by steps taken toward the
termination of these grants, 1 of course will expect to file a further report,
as toe Foundation stay require, on the disposition of this reserve fund.
Tours very truly,
Treasurer*
%
R O C K E F E L L E R FOUNDATION GRANTS
for the H i s t o r y of the F e d e r a l R e s e r v e S y s t e m
R E C E I P T S AND E X P E N D I T U R E S
G ra nt s
R. F. #5404 (for pilot p r o j e c t ) ........................ 1 0 , 0 0 0 . 0 0
R. F. #54061 .......................................... .........................................
310,000.00
Total ( a d m i n i s t e r e d in c o m b i n a t i o n ) .................................................$ 3 2 0 , 0 0 0 , 0 0
R e c e ip t s
Under #5404 ....................................................................................$ 1 0 , 0 0 0 . 0 0
Under # 5 4 0 6 1 ............................ ....................... ..............................
85,238.39
Total R e c e i p t s .................................................................................................... $ 9 5 , 2 3 8 . 3 9
E x p e n d it u r e s ( fi sca l y e a r s ended June 30)
1953-54
1954-55
1955-56
1956-57
... $ 1 2 , 0 3 8 . 6 4
.......................
, . . .
...............................................
Total to 6 / 3 0 / 5 7 (audited and c e r t if ie d by
the T r e a s u r e r ) ...................................... ...
1 9 5 7 - 5 8 ( e s t i m a t e d ) ..................................................................
38,754.75
30,491.71
4,335.05
$ 85,620.15
11 ,9 6 5 -9 6 a
Total E s t i m a t e d E x p e n d i t u r e s , ..................... ... . . . ........................
Cash d e f i c i t i m p e n d i n g .....................................................................................................$
a Includes $ 7 , 5 0 0 for m an uf act ur in g c o s t of Chandler m a n u s c r i p t .
97,586.11
2,347.72
January 16, 1958
MiiidUilANDUM
To:
Froms
Miss Mildred Adams
Mildred Maroney
I am summarizing below the financial status of the Federal
Reserve R eject under grants totalling $320,000 by the Rockefeller foundation#
1 should emphasize two points,
1.
For the moment, this report is in summary form.
I shall be
glad to supply a report in more detailed fora for the next report to the
Comptroller of the Rockefeller foundation*
In this connection, I would like
to point out that the last such report was rendered under my certification for
the period ended June 30, 1955>. •
From time to time, I have prepared such
reports for a subsequent period, but as far as I am aware Dr* Calkins did not
submit them*
2*
Figures below are necessarily tentative.
They are firm
in so far actual disbursements are concerned, but I am not able to estimate
the requirements for completion and publication of the Chandler manuscript.
(X have no knowledge of its nature or the schedule for publication.)
I might also raise for consideration the question of additional charges for
overhead by* The Brookings Institution.
The only such charges so far have
aggregated $6,000, or $3,000 per annum for the two year period June 30, 195U
to June 30, 1956.
That amount was approximately 9*5/5 of expend!tur s in the
same period, but was not so computed.
As you will recall, the charge was
pre-determined at $3,000 per annum by agreement with the Committee on the
History of the Federal Reserve System, but was suspended when the project ceased
having a formal budget status*
Fiscal Years
Receipts
Expenditures
1953-5U
$10,000.00
$ 12,038.61*
195U-55
53,325.00
38,75U.?5
1955-56
31,913.39
30,1*91.71
1956-57
1957-58 (to Dec. 31)
Totals, to Dec. 31, 1957
Outstanding Commitments s
To University of Virginia
For committoe work, editing, and
publication of Chandler ms*
For additional overhead at B. I*
a/
~
b/
—
U ,335.05
______________
2,618.72
95,238.39
a/
88,238.8?
365*00
b/
?
?
This amount includes an advance for expenses which is outstanding to
Lester Chandler in amount of $1,800 (subject to accounting).
The
balance was expended at Brookings Institution between July 1 , 1957
and DeCember 31—mainly for secretarial work and supplies in connection
with the Chandler ms*
Question of amount.
Status -of Rockefeller Foiandation Grants $hGk and 5I4O6I
For Federal Reserve St«$r
Fiscal '^ears ended June 3©
Grants
Receipts
320,000.00
#10,000.00
|12,038.6U a/
1955
53,325.00
38,?5U.?5 a /
1956
31,913.39
30,1*91.71 b /
19&
i
1957
Expenditures
—
Totals, as of $/30/5?
320,000.00
95,238.39 4 /
it,335.05 fe/
85,620.15
Comaitffiients outstanding:
University of Virginia (cat.).fo r
indexing G^ass papers
365.00
Lester V. Chandler, for expenses
of Ben Strong biography
?©r printing biography
1,800.00 c /
?
?
?
For other expenses
a/
Reported to Rockefeller Foundation in detail
b/
Met yet reported to Rockefeller Foundation
c/
Balance of advances outstanding, not yet translated to expenses
(carried as receivable pending accounting)
6/
Of this amount, 485,620.15 has b@©» carried to incoras account to
cover expenses to 6/30/57.
The balance of $9,618.2k which
has been received but not emended is carried as a liability
(prepaid grant©).
h i « -
i
/ *
' h
3/12/57
HISTORY O F THE F E D E R A L R E S E R V E S Y S T E M
Received
R o c k e f e l l e r G r a n t s .............. ...
$320,000
$95,238.39
[ F r o m Miss M a r o n e y ’ s r e p o r t of 2 / 1 5 / 5 7 ]
Allo cate d Exp ended
2/15/57
12/31/56
$88,169
$83,342
J u ly 10, 19 5 6
M r. Dean Rusk, President
The Rockefeller Foundation
49 V e it 49th Street
New York 10 N ew York
,
Dear Dean:
On behalf of Allan Sproul, I should like to acknowledge
your letter of June 19. It appears that the plans we are
endeavoring to make would conform with the first alternative
outlined in your letter, and would present no special problem.
In the event Dr. Opie should not be available, we shall
search further for the appropriate personnel in the hope that
we may carry through the project as closely as possible in
accordance with the plans originally contemplated. W e shall
be glad to keep you informed regarding developments.
With very best wishes,
Sincerely yours.
President
o
FEDERAL RESERVE BANK OF NEW YORK
ROUTE SLIP
Date__ 6/21/56___
To_____Dx>. Calkiaa___ _______________
O f _ _ _ _ ______________________________ _
f"l ^
Q
Attend to
P I Not#
return
|H] Proper* r#pty for my sJ^natttr#
n
forwardto F$©$
Q
£ ] A*
PI ^
y®er s&fRHfeMts and
sasfffi&lefs*
For signature, if you approve
Q
So® (pfeojte) «m re. attacked
Q
Does attaeited meet with yo**r
app#®¥*|?
Otber nmafk
M i s s Ad am s left instructions
that when t h i s l e t t e r w a s r e c e i v e d
h e r e it should be f o r w a r d e d to you*
” <— *— — —
— — —
Digitized
iMwe.for FRASER
c
T H E ROCKEFELLER FOUNDATION
49 W EST 49th STREET, NEW YORK 20
OFFICE OF TH E PRESIDENT
June 19, 1956
Dear Mr. Sprouli
My colleagues and I have given your letter of June 5,
addressed to Dr, lorman Buchanan tthe careful consideration which
it clearly deserves. Let ne say at once that we appreciate the
thoughtful Interest and time which the members of your Committee
have given to the history of the Federal Reserve System.
The resolution of your Committee concludes vith a
recommendation and a request. The request is that full responsi
bility for administering the project be transferred to the Brookings
Institution, the Committee to serve in an advisory capacity to
Brookings. That seems to us reasonable and vise, and requires no
legislative action under the resolution of our Trustees. Since
this step is 'within the discretion of Brookings and your Committee*
ve need only to record that it is entirely agreeable to The Rocke
feller Foundation.
Yarning to the recommendation that the Committee (presumably
new Brookings) be relieved of an obligation to prepare a "definitive"
history as the principal objective of this undertaking, the problem
is somewhat more complex. The salient facts seem to be (a) that the
Trustees of the Foundation mads the grant in the hope that a
comprehensive and up-to-date history of the Federal Beserve ■would
result; (b) that the Coianittee, after serious and diligent effort,
has concluded that a "definitive" history is not feasible; and (c) that
the Ccajmittee believes, however, that it is desirable and important to
proceed with historical work cm the Federal Reserve, to include
selected monographs and a one- or two-volume history of the System,
if feasible.
Perhaps we should first de-emphasize the intimidating word
"definitive*. Mo history is likely to be definitive to a conscientious
historian. This word was not used in our resolution of appropriation
nor was it used in our letter of notification to Brookings. Vhat we
essentially had in Bind was "a living history and appraisal of one
of the unusual inventions of government, a review of the experience
of its functioning, and an analysis of its performance illumined by
the papers and meaories of mm who helped develop it and who took
part in its operation", to quote from one of our internal papers on
the subject.
la trying to u s h i present prospects, it should be said,
on th# negative aid®, that the Foundation would not be satisfied vith
a miscellany of incidental monographs or papers which vould not, la
total; amount to a serious and reasonably cos&preheasl1?© account of
the Federal Hes®rr# experience. Ve can well imagine that a oa®~ or
two-TOluM histoiy supplwaented by first-class incisive monographs
would com® as close to the original plan as is a w feasible.
We should b# reluctant to agr®@ that a "definitive" history is
longer tli® target, if by doing so w* w w to rob tha effort of its
casatrml rationale and d@prive it of aa idea which could s#rv® to
organise th® r«®adn±ni work. W« ourselves h aw not, or th* other
hand, insisted upon the word "definitive* aad vould not expect th®
impossible or impractical. Most specifically, we would not wish to
press for an effort -which ©erald only result in a second-rate job i*±eh
t o # only definitive if measured by its balk.
bo
Would it be helpful to your Committee to accept the quoted
portion ia the fourth paragraph, above, as sa alternative to "definitive"?
If
ve sm ao particularly difficult problem here® (toe @f two
alternatives vould mmt. t® meet the purposes for vhich our great was
made? (a) a cerefolly planned -series of monogrejsiis dram together by
a <m#~ or two-volume g «era l history of the fljysts* (b) «a evaa aor®
carefully plaaned series of moaogmph®, with aa overall editor, which
ia total w u M comprise a responsible and comprehensive account of
th® .Federal Reserve Systeaj this vould involve 1&oughtfttl strategic
planning of the monograph® to relation to ®ach other «&d would hopefully
piroduee a series which m old not leave say major segments of the story
m«aqplor®d.
I do hop® this letter will help to clarify the position m d
sight open the way for a satisfactory conclusion. Ve mast rely he&vily
upon the advice and jadg^eat of your distinguished Cowaittee.
Alternative (a ), above, would require no further reference to our
trustees? if alte:mative (b) irere adopted, we would at least wish to
report this ammm&wmt to m x Board j anything less would, of course,
require reconsideration by m r Board sine® the mala purpose of the
original grant vould be directly involved.
May I say w e# again how grateful ve are for the time and
atudetjr which the members of ymxr Ck»mitt«e have themselves invested
In this undertaking.
Sincerely yours,
D&im Itagk
Mr. Allan Sproul, Ohairsan
Committee o» the History of
the Federal Beserve Sy®t«s
33 Liberty Street
few York 45* lew York
o
COMMITTEE O N THE HISTORY OF THE FEDERAL RESERVE SYSTEM
3 3 L i b e r t y S t r e e t , N e w Y o r k 45 , N e w Y o r k
T e le p h o n e : R E c to r
ALLAN SPROUL
Chairman
W . R a n d o lp h B u rg ess
R o b e rt D . C a lk in s
F. C y r i l
Jam es
W illia m
McC.
M a rtin , J r .
W a lte r W . S te w a rt
2-5700,
E x te n s io n
286
With cooperation of
THE BROOKINGS INSTITUTION
722 J a c k s o n P l a c e , N. W .
W
a s h in g t o n
6,
D.C.
Josep h H . W illits
Secretary
Executive Director
D o n a ld B . W o o d w a rd ,
M ild r e d A d am s,
June 5, 1956
Dear D r. Buchanan:
T h is le t t e r i s to re p o rt on the progress o f work under the d ire c tio n
o f the Committee on the H is to r y o f the Fed era l Reserve System, and to make
recommendations f o r the fu tu re o f t h i s p ro je c t which i s supported by a grant
from the R o c k e fe lle r Foundation.
The o rig in a l re q ue st o f t h i s Committee f o r fin a n c ia l support con
templated thre e main a c t iv it ie s :
(a) a rc h iv a l and re se a rc h, intended to d i s
cover and make a v a ila b le m a te ria ls th a t would be u s e fu l in the p re p a ra tio n o f
the h is t o r y o f the Fed era l Reserve System; (b) in te rv ie w s w ith in d iv id u a ls who
have p a rtic ip a te d in the l i f e o f the System, in order to obtain p ersonal re c
o lle c tio n s o f value to fu tu re h is t o r ia n s ; and (c) arrangements f o r the w r itin g
o f & ’’d e f in it iv e " h is t o r y o f the Fed era l Reserve System as the c e n tra l respon
s i b i l i t y o f the Committee, the encouragement o f monographs and essays dealing
w ith sp e c ia l phases o f the h is t o r y o f the System, and the e d itin g and p u b lish in g
o f im portant documents r e la tin g to the h is t o r y o f the System. The g ra nt made
by the R o c k e fe lle r Foundation was f o r the support o f these a c t i v i t i e s .
Two p revious re p o rts which t h i s Committee has made since January,
1954, when the f i r s t p i l o t g ra nt was made, review the d e ta ils o f work which
was commissioned and o f research and a rc h iv a l s tu d ie s accomplished up to
J u ly 1, 1955• Ra the r than f u r n is h a supplementary re p o rt f o r the year ending
in June, 1956, I should lik e to put before you a summary o f the Committee's
entire achievement so th a t you may see how f a r we have gone toward our goal
in s p ite of se rio u s d i f f i c u l t i e s encountered in fin d in g research personnel.
A.
A rc h iv a l A c tiv itie a
The a rc h iv a l a c t iv it ie s o f the Committee have progressed w e ll under
the able d ire c tio n o f M ild re d Adams. We have reason to take p rid e in the gen
e ra l work o f lo c a tio n and p re p a ra tio n o f papers and m a te ria ls . We believe we
have g re a tly increased the a v a ila b ilit y o f research m a te ria ls which w i l l be o f
benefit to h is t o r ic a l s tu d ie s o f the System whether conducted under t h i s
Committee o r n o t. T h is work i s now la rg e ly completed, f o r the time being,
and M iss Adams has resigned as Executive D ire c to r e ffe c tiv e J u ly 31/ 1956.
The search f o r p riv a te c o lle c tio n s o f papers which bear on the crea
tion and development o f the System was one o f the f i r s t undertakings o f the
Coasnlttee. More than a hundred o f these c o lle c tio n s have been found. Con
siderable data about them and t h e ir owners have been organized, duplicated
c
Dr. Harman S. Buchanan
2
June 5, 1956
and distributed as a research aid to the Library of Congress, the Kew York Public
Library, the libraries of the Federal Reserve Board and the tvelve Federal Reserve
Banks, and to some twenty universities which are distinguished for the quality
of graduate work offered in the fields of economics and monetary affairs.
The Selective Inventory of the Papers of Carter Glass, made by a group
of graduate students working under the direction of Dr. Elbert A. Kincaid of the
University of Virginia, was completed in the autumn of 1954. Copies of this
important research aid, mimeographed and put into binders, were in May, 1956,
distributed to the same libraries which received the data on private.collections,.
In the process of this paper hunt we have steadily disclaimed any wish
to amass collections ourselves, and have asked only that they be put where scholars
could consult them. In several instances we have been instrumental in saving
papers from destruction and suggesting depositories which were glad to get then
and render them useful to students. This applies particularly to the papers of
Ogden Mills, Emanuel Goldenweiser, Col. Leonard Ayres, now in the Library of
Congressj of Fred I. Kent, now at Princeton, of Frank Vanderlip being set in
order at Columbia. There are many other Instances.
In the course of its search for papers, the Committee found that lew
York City, now the financial capital of the world, has no library where the pri
vate papers of bankers and financiers who have played so important a part in
building the American economy to its present strength are collected in a center
equipped for the use of scholars. On conferring with the appropriate officials
of Columbia University, we discovered a quality of interest in this project which
might lead to the establishing of such a center were it properly encouraged and
financed. As a first move in this direction, and for the immediate purpose of
sorting and cataloging the rich Frank Vanderlip collection (which had been dis
integrating in a Duchess County garage until our executive director found it and
steered it to Columbia), we made a sub-grant of $1,500 to the library of Columbia
University. The University plans to seek other funds for the prospective Finance
Library Center from other sources.
In 1954 and 1955# this Committee made a survey and summary report on
historical materials in the libraries and files of the Federal Reserve Board and
the twelve Federal Reserve Banks, and reported that, not only had considerable
early materials been destroyed, but that a continuing program of destruction
threatened more recent records. At that time we formulated and distributed a
list of materials which the twelve Banks might be presiaaed to wish to keep as
historically valuable, and which answered the repeated question, "But what do
you mean by historical material?"
This problem was brought to the attention of the Conference of
Presidents of the Federal Reserve Banks, which had a working subcommittee on
th* Destruction of Records. After several conferences and repeated discussion,
the subcommittee revised its Destruction Manual to emphasize the importance of
preserving records described as of historical value, and changed its name to
Sub-Conmittee on the Retention and Disposal of Records. It is the hope of the
Coanittee on the History of the Federal Reserve System that this achievement,
reaching direct to the operating level of the Banks, may preserve for the use
of future historians important materials which would otherwise be slated for
destruction.
Dr. Horman S. Buchanan
3
June 5, 1956
The card files which were started early in the life of this Cooraittee
have now beeone highly valuable research tools, and are so keyed together as to
sake it possible to move easily back and forth between desired details of period,
office, people, policy, legislation and litigation involving the System. In addi
tion to this Time Pile, Persons File, files for banks and economists, we have a
bibliography of considerable size, still in the process of growing. When com
pleted, it could fora the basis for a highly valuable reference bibliography on
central banking, with particular reference to the unpublished material which
forms so important a part of that literature. The original intention was to
set these files up in such a manner that they could be reproduced aftd distributed
to otbar research centers, but thus far we have not felt justified in undertaking
so costly a step. They are, however, ready to serve where needed.
B.
Interviews
The Committee has experimented with interviewing techniques and has
made transcripts of several conferences, which will be of use to historical
scholars. The work of interviewing, however, has not been expanded because it
was felt that interviews should be coordinated with historical research under
the general direction of the contemplated historian.
C.
Research and Writing
The research and writing activities represent both achievements and
disappointments. Progress has been greatly impeded by the lack of qualified
personae!.
The Committee achieved an initial success in its selection of
Dr. beater Cbmndler of Princeton to write a biography of Benjamin Strong, the
first Governor of the Federal Reserve Bank of Hew York. The subject was one
which Interested him, but one which he might never have undertaken except for
the aid given by the Gemlttee. This work is proceeding at a satisfactory
pace, and there is every reason to expect that an illuminating biographical
work relating to the history of the Federal Reserve System will be finished in
1957 as planned.
A substantial lumber of topics for monographic treatment have been
suggested and considered. For a number of these personnel 1s available* The
Comalttee has been impressed with the possibility of making significant con
tributions In the field by encouraging essays and intensive monographic studies
on particular aspects of the System and its experience. Indeed some members of
tbs Comsdtte# are of the opinion that a comprehensive history cannot be written
until after a number of principal episodes have bees thoroughly explored in
monographic studies. Definite assignments for such studies were postponed, how
ever, pending the selection of a scholar to direct the entire project and to
serve as airthar of the basic history.
She loss of Dr. W. Randolph Burgess, who had been expected to take
major responsibility for the project and to write the definitive history of
the System, has been a major disappointment. After It became clear that
Dr. Burgess could not leave the national service, we approached other distin
guished scholars In the field, but found them unable to put aside existing
coaaitaents. We next turned to the possibility of using younger men, either
c
D r . Herman S . B u c h a n a n
4
Ju n e 5
,
1956
as a writing team or as a group which might function through and he inspired
by seminar discussions in which members of the Coots ittee and others of mature
experience and attainment. Two years of searching among men of caliber and
proven ability have given us a heightened appreciation of the difficulties
inherent in the very condition which gave rise to the original request for a
grant. Economic historisms equipped to study and write about monetary affairs
are few in number, and modern research into the development of the role of
central banking in the American economy is extremely limited. The Committee
has thus far been unable to overcome the deficiency of personnel which charac
terizes this field of study.
At the present time, the Committee ia conducting negotiations through
the Brookings Institution with Dr. Redvers Opie as a possible director and his
torian for the project. Whether Dr. Opie will be available or not cannot be
ascertained until late July or early August, after he had had an opportunity
to consider this assignment in relation to his other commitments. If he should
be available, he would undertake a major history of perhaps two volumes, en
courage the preparation and publication of supplementary monographs and essays,
and we hope organize (with the aid of funds obtained for the purpose) a seminar
on the development of central banking as a means of stimulating younger men to
work in this field and to offer a means of drawing on the experience of older
men who have worked in the System. If Dr. Opie should not be available, the
search for a director and historian would be continued in the hope that aosaeone
of similar quality can be found.
Meanwhile, the Committee would like to commission several monographic
studies by authors familiar with the experience of the System. These studies
would cost little and they would contribute importantly to the general purposes
of the project.
With encouragement from the Committee, a legal history of the Federal
Reserve System has been started by Howard Hackley of the legal staff of the
Board of Governors. The portion now in draft gives an impressive and highly
useful record of legislative changes and judicial interpretations bearing on
the authorities under which the System has operated. It is hoped that this
study can be made one of the publications of this Committee.
Mr. Bray Hammond, whose new book, American Banks and Politic* from the
Aaericag Revolution to the Civil War, had informal aid from the executive direc
tor of this Committee which led to its publication by the Princeton University
Press, is outlining for us a monograph on "The Evolution of the Payments
MedmaisB.’* The payments mechanism is of key importance to the smooth opera
tion of the banking systea and of the whole economy. The development and
iarplidation* of the mechanism are seldom understood. A preliminary memorandum
outlining this project has been prepared. The Committee hopes to work out an
arrangement whereby Mr. Hammond would undertake this study for the Committee.
Use retirement of Dr. John Williams from the New York Federal Reserve
Bank offers the possibility that he may write a small volume, perhaps of essays,
oa the development of monetary theory and policy during the last quarter century.
Such a contribution should be a publication of the Committee. On the basis of
preliminary discussions with Br„ Williams, it seems likely that such an assignaent would be welcome.
c
D r , Norman S. B u chanan.
5
Ju n e 5 ,
1956
These are some of the more urgent topics but there are others which
the Committee would like to encourage or sponsor, when a director has been
chosen.
Administration and the Future
The foregoing achievements of the Committee are substantial, even
though the search for a distinguished scholar, trained in the economic and
historical disciplines, equipped with sufficient knowledge of monetary theory,
minded and able to accept a commitment to head this project and to write the
desired "definitive" history, has not been successful.
During the past two years two types of difficulties have been en
countered in the operation of the Committee. The first has arisen from the
recognition by the Committee that it had assumed a commitment to the Rockefeller
Foundation for a "definitive" history as the principal objective of the Committee
work. The second has been the difficulty of exercising administrative responsi
bilities by means of a committee consisting of members geographically scattered
and all busy.
As the explorations of the Committee have continued, it has become
increasingly clear that a "definitive" history of the nature and scope origi
nally contemplated is not feasible at this time. The Comittee considers it
likely, however, that a history of scholarly character and substantial worth
■ay be brought into being, and it is confident that a number of highly worth
while monographic studies dealing with important aspects of the history of the
Federal Reserve Systea are feasible and desirable. The Comaittee has been
reluctant to launch sonographic studies of this sort until the fulfillment of
its principal commitment for a "definitive" history could be assured or until a
reorientation of approach could have the sanction of the source of its funds:
The Committee believes that the funds can be properly and wisely used for selec
tive monographic studies and that these would represent an important contribution
to historical research, even though a definitive history is not now deemed to be
feasible. After two years of experience the Committee is of the opinion that
this is the way to proceed and that it requires greater latitude and freedom
with respect to its obligation to the Foundation.
Accordingly, the Coanlttee requests the approval of the Foundation
for a clarification and reinterpretation of the project. The original intent
of the project was to undertake certain archival activities and interviewing,
to assure the writing of a "definitive" history of the Federal Reserve System,
to encourage monographs and essays on the history of the System, and to edit
and publish documents. Host of these obligations present only minor problems.
The Committee, however, would like to be relieved of its obligation to bring
about the writing of a ’’definitive’’ history, and would like instead authority to
develop and encourage slightly less ambitious studies on the history of the
Federal Reserve System, including such monographs, essays, and histories as may
be possible. The Committee would expect that its continued activities would
result in the preparation and publication of a one or two volume history of the
System, if such a treatment proves feasible. It would expect also to encourage
worthwhile monographic studies and essays that would contribute to a better
understanding of the System, and would develop this part of the project as a
supplement to, or a substitute for, more comprehensive historical treatment.
The Coamittee believes that this greater flexibility will assist substantially
la stimulating further worthwhile work in this field.
Br. Sora&n S. Buchanan
6
June 5> 1956
The adainistrative difficulties coafronting the Coranittee hare arisen
'because of the time required to communicate with Canalttee members> to schedule
■eetlngs, and to conduct negotiations. There has been no lack of interest and
attention by Coaaittee menbers. All aeabers of the Coamittee have been aost
loyal In attending a substantial number of oeetings. nevertheless, delays have
bean inevitable. The Coaaittee recently asked the Brookings Institution, which
h&s collaborated on the project fro® the beginning, to accept an added degree
of adfflinistrativ* responsibility by initiating proposals for the consideration
of the Coaaittee and by appointing a staff aeaber to assisae a degree of execu
tive responsibility for th® project.
Brookings
Coaaittee
sad to ay
Executive
The transfer of this added administrative responsibility to,the
Institution has been occasioned by ay resignation as Chairaan of the
on the ground that ay departure for the Vest Coast puts a necessary
active participation in Coanittee work, and by the resignation of the
Director, as well as by the desire to facilitate administrative action
The Coaaittee Is now of the opinion that this partial transfer of
administrative responsibility Is not enough, if negotiations are to proceed
pronptly for sonographic and other studies. After two years of exploratory work
It is believed that the time has com to transfer further responsibility to the
Brookings Institution. Accordingly, the Coaaittee recoaaends that the Brookings
Institution assuae fall administrative and executive responsibility for the pro
ject, the Coaaittee continuing to serve the project in an advisory capacity.
This armngeaent is acceptable to the Brookings Institution, and the Coaaittee
requests the Foundation to approve this transfer of responsibility. The
Institution would continue to consult the Coaaittee 02 all aajor aatters of
studies aad personnel connected with the project, and the Coaaittee would read
and criticise aanascrlpts and he generally available tor consultation, as It
now Is . We believe that this transfer of administrative and executive respon
sibility for the project will simplify and prooote the organization of the re
search activities which the project has always contemplated.
We would welcoae a statement froa the Foundation Indicating its
approval of the use of its grant for the continuance of the project with these
two aodlflcations — an increased degree of flexibility in the interpretation
of the responsibility of the Corolttee for the preparation of a "definitive"
history of the Federal Reaerve Systea and a transfer of adainistrative respon
sibility to the Brookings Iaarfeituti«.
Representatives of the Coaaittee and of the Brookings Institution
will be glad to call on you in the near future for such discussion of this
proposal as the Foundation desires.
A copy of a Ceoeaittee Resolution embodying the above recaaaendations
and a stateaast of estlaated expenditures as of June 30, 1956 are attached.
Yery truly yours,
Sr. Straan 3. Buchanan, Director
Mvlftien of Social Sciences
fbs lectoafeller Foundation
49 Ifcst 49th Street
Scv York 20, Rev York
Attactawats (2)
Allan Sproul,
Chairaan.
c
STATEMENT OF FINANCIAL STATUS
OF THE PROJECT OF THE
COMMITTEE OH THE HISTORY OF THE FEDERAL RESERVE SYSTEM
AS ESTIMATED FOR JUHE 30, 1956
Grants received fro* the Rockefeller Foundation:
January 21, 1954
May 21, 1954
(for nine so u th s)................................... $ 10,000.00
(for five months to May 31, 1959) . . . . .
310.000.00
T o t a l ...................................................................... $ 320, 000.00
Expenditures:
January 21, 1954 to June 30, 1956:
Salary and Contract Payments ..................................................$ 67,551*90
Travel, Grants, Miscellaneous Expenses ................................
11,241.93
.................. . ..................
6 ,000.00
T o t a l ................................................................... ...
$ 84,793*83
Overhead . . . . . . . . . . . .
Coamitiaents Unexpended June 30, 1956
..........................................
Total Expenditures and ComnitiBents . . . . . . .
3»375.00
$ 88 , 168.83
Balance Unexpended and Uocoamitted, June 30, 1956 . .................. $231,831.17
COMMITTEE ON THE HISTORY OF THE FEDERAL RESERVE SYSTEM
RESOLUTION
WHEREAS, the Committee on the H is to r y o f the Fed era l Reserve System
recognizes the fo llo w in g s it u a t io n :
1. Th a t i t was e sta b lish e d f o r the purpose o f developing a va ila b le
m a te ria ls and a h is t o r y o f the Fe d e ra l Reserve System;
2 . Th a t i t obtained a g ra nt from the R o c k e fe lle r Foundation s p e c if
ic a lly f o r a rc h iv a l a c t i v i t i e s , the in te rv ie w in g o f experienced p a rtic ip a n ts
in the System, the w r it in g o f a " d e f in it iv e " h is t o r y o f the Federal Reserve
System, the encouragement o f o th e r monographs and essays on the h is t o r y o f the
System, and the e d itin g and p u b lic a tio n o f re le v a n t documents;
3. Th a t the Committee has made s u b s ta n tia l achievements in fin d in g
and making a v a ila b le p riv a te c o lle c tio n s o f a rc h iv a l m a te ria ls , in c o lle c tin g
remembered in c id e n ts from o ld e r o f f ic e r s , and in f a c i l i t a t i n g the p re se rv a tio n
o f im portant records w ith in the System;
4. Th a t the Committee has in prog ress a prom ising biography o f
Benjamin S tro n g , the f i r s t Governor o f the Fed era l Reserve Bank o f New Yo rk;
Th a t a ft e r two years o f e f f o r t to fin d an appropriate author to
undertake the " d e f in it iv e " h is t o r y o f the System, and a ft e r numerous a lte rn a
tiv e s have been considered o r attempted, and have re s u lte d in f a ilu r e , the
Committee has re lu c ta n tly concluded th a t a " d e f in it iv e " h is to r y cannot now
be prepared under i t s sp o n so rsh ip ;
6 . Th a t s u b s ta n tia l and im portant c o n trib u tio n s can and should be
made through h is t o r ic a l research to promote a b e tte r understanding o f the ro le
o f t h i s unique System and th a t such c o n trib u tio n s can be made through mono
graphic stu d ie s th a t examine im portant episodes in the h is t o r y o f the System,
through essays by p a rtic ip a n ts in the a f f a i r s o f the System, through the most
comprehensive h is t o r y th a t may now be fe a s ib le , and through o th e r supplementary
p u b lic a tio n s ;
7. Th a t such a program o f stu d ie s and w r it in g s , though d e f in it e ly
w o rthw hile and probably fe a s ib le , i s no t regarded by the Committee as the "de
f i n i t i v e " h is t o r y o r ig in a lly contemplated;
8 . T h a t, th e re fo re , the Committee should seek an understanding
w ith the R o c k e fe lle r Foundation which w i l l p e rm it and a u th o rize the Committee
to use the funds a t i t s d isp o sa l f o r a program o f stu d ie s th a t may o ffe r impor
ta n t c o n trib u tio n s to the o v e r- a ll h is t o r y o f the Fe d e ra l Reserve System, i n
cluding as comprehensive a h is t o r y as p o ssib le and such monographs, essays,
o r o th e r p u b lic a tio n s as may be approved by the Committee; and th a t the Committee
be re lie v e d o f i t s o b lig a tio n to b rin g about the w r itin g o f a " d e f in it iv e " h i s
to ry in the usua l meaning o f the term ;
o
2
9.
That after nearly two years of experience during which the
Coanittee has endeavoured to exercise its administrative responsibilities as
a group, it hag become increasingly clear that administrative responsibilities
for the project should now be transferred to the Brookings Institution and
that this Committee should operate as an Advisory Camnanittee to the project;
10. That the Committee has previously asked the Brookings Institution
to assume larger responsibilities for initiating plans and proposals, which it
has been willing to accept, and that the Committee has confidence in the ca
pacity of the Brookings Institution to organize appropriate studies in line
with the purposes of the project;
11. That in launching this revised research program the Institution
will need the administrative freedom implicit in the proposal herein presented,
in order to make plans and negotiate promptly with personnel, and that this
transfer of increased responsibility to the Brookings Institution is made
acute and especially desirable by reason of the resignation of the Executive
Director of the Conmittee on the History of the Federal Reserve System effective
at the end of July, 1956, and by the resignation of President Allan Sproul
as Chairman of the Committee at the end of June, 1956;
Now, therefore, BE IT RESOLVED That the Committee recoomends to the
Rockefeller Foundation that authorisation be given for the use of the unex
pended funds in its existing grant for historical research and the preparation
of & substantial history, historical monographs, or other essays and documents
cm the history of the Federal Reserve System.
AND FURTHER BE IT RESOLVED That the Conmittee request the approval of
the Foundation for the transfer of full responsibility for administering the
project to the Brookings Institution with the understanding that the Coaaittee
on the History of the Federal Reserve System will serve in an advisory capacity
to the Institution with regard to research and writing for this project.
b
Resolution Approved by
The Coaantttee on the History of the Federal. Reserve System
February k3 19$6
Alternate Text «» Clause of Enactment
In the light of the Committee's experience during the past two years*
and after considering various alternative plans and procedures* the Com
mittee recognizes that in order to can y out ita responsibilities for the
general development of the project* it is desirable to assign to the
Brookings Institution a larger administrative responsibility for studies
and personnel*
lo
To this end the Committee suggests*
That the Brookings Institution appoint a full-time staff member
in the field of central banking who could devote his entire time to the
development and direction of projects on the History of the Federal Reserve
System.*
lie
That the Brookings Institution assume responsibility for initiating
proprams, finding and employing properly qualified personnel, and the sub=
mission of these proposals to the Cosaadttee for review^ criticism, and
authorization! it being understood that such programs will Include the
stimulation of Interest in the field of central banking j, the commissioning
of monographs$ the continuing hunt for an historian^ and all other activities
necessary to carry the project to successful fruition*
in .
Under these arrangements the Committee w iU c m tl zsmtos
(a) review general policy and individual projects j
(b) authorise expenditures Jointly with the Brookings Institution!
(c) counsel and advise those commissioned to work on projects* and
(d) read and criticize manuscripts*
IV o That s if the Bi’ookings Institution will work out the foregoing
arrangements in a manner acceptable to itself g the Caraolttee will be
prepared to f^ive the pz^posal inaasdiai® consideration„
?«.
It is th© conaerisus of th# Comittee that it would b® desirable
to employ Dr« Howard Ellis for a major isriting assignment on this project.,
€>
January 16,
956
Mr. George E. Van Dyke
Assistant Comptroller
The Rockefeller Foundation
49 West 49th Street'
New York ZO, N ew York
Dear M r. Van Dyke:
Thank you for your letter of January 9 and for
sending us the check for $31,913.39, representing pay
ment in full for our 1955-56 estimated budget, less the
unexpended carryover for June 30, 1955. We appreciate
very much your sending this payment.
Sincerely yours,
President
cc:
M r. Akers
Miss Maroney
M rs. Wilson '
T H E ROCK EFELLER F O U N D A T IO N
49 W EST 49th STREET, NEW YORK 20
Cable
OFFIC E OF T H E C O M P T R O L L E R
H . M A LC O LM G I L L E T T E , C O M P T R O L L E R
GE O R G E E . V A N D Y K E , A S S IS T A N T C O M P T R O L L E R
Januaiy 9, 1956
RF Si|Q6l
Dear Mr, Calkins
In accordance with the budget for the year beginning
July 1, 1955 in the amount of
which you submitted with
your letter of December 21, ve are pleased to advise you that
lie are forwarding a cheek to Miss Maronegr, Treasurer, for the
amount of $31,913*39, representing payment in full of your
1955-56 estimate, less the unexpended balance of $12,531.61
reported as ef June 30, 1955*
We have noted the fact that you plan to subait a re
vised budget for tbs current fiscal year sonetime in February.
Very truly your
Mr. Robert D. Calkins, President
The Brookings Institution
722 Jackson Place, N.W.
Washington 6, D. C.
fw
Copy to Miss Mildred Maroney
A dd ress:
R o cjcpo u n d , N e w Y o r k
o
T H E R O C K EFELLE R FOUNDATION
49 W E S T 49th S T R E E T , N E W Y O R K 20
THbM)C1\L
( ' \HJ f
HI i II \ N . V N , D i K K t
UI.W Ii
KnCKK
l «i | . i
A ll
K.H I
D, NliVS 'i <)HK
V ! \ V K V , \ - i S i > CJ S T K D i K
1'. K\ W s , \ S ^ ] S I \
KM
K VN S K J H
W. 1
<>M I’S u N ,
MS i\\:
January ii, 1956
Dear Bob*
It occurs to me that it might be useful, from your point
of view as well as ours, if I attempt to summarise what I take to be
the outcome of our somewhat protracted discussions at the Commodore
Hotel last weeks
As I think we agreed, the first question to be answered
by your Committee is how far the various monographs that you now
have in contemplation, and perhaps to some extent ccwrmitted, come
towardsproviding a comprehensive history of the Federal Reserve
System such as was contemplated at the time the original grant was
made. As I read the action and discuss its background with people
who were here at the time, there seems to be no question that the
Trustees understood that the main purpose of the grant was to pro*
vide a comprehensive history® As I recall our conversation, this
was also your view. Furthermore, everyone seems to agree that the
history should be carried well beyond the 1930's in order to be of
much use* How far this will be possible if the Federal Reserve
Board and others will not make available materials after the mid1930*8 is for the Committee to decide.
We agreed also, I think, that the value of monographic
studies—even fairly comprehensive ones—«depends very largely on
who is to undertake thesu The plan proposed to the Trustees called
for the work to be done
a person in whom the Committee had great
confidence. If now that plan is not feasible, then I think you
agreed that we need to know who in fact will do the monographs in
place of the comprehensive study. Does the Committee feel confid
ant that there are people of high competence who could and would get
the monographs under way without much further delay?
'
o
2
Once you tell us what monographs you contemplate, who is
to do them, etc., then I think we can fairly easily determine here
whether or not further clearance is necessary from the Trustees in
view of what they understood to be the plan at the time they made
the grant. I take it this is essentially the same point which con
cerns some members of your Committee when they speak of "the moral
aspects of the grant."
Does the above about represent the outcome of our
discussion?
With best regards,
Sincerely yours,
Norman S« Buchanan
Dr* Robert D« Calkins
Brookings Institution
?22 Jackson Place, N. W»
Washington 6, D» C.
NSB:bn
December i I , 1955
M r . G e o r g e E. Van Dyke
A s s is ta n t C o m p tro ller
T h e R o c k & f c lle r F o u n d a tio n
4 9 W e i t 4 9 th S t r s e t
New Y o r k <LQt N ew T u r k
D e a r M r . V an Dyke:
I h a v e d e f o r r ^ d a n s w e r i n g y o u r l e t t e r of N o v e m b e r *5 ia w hich
you r e q u e s t e d a c o p y of the b ud get f o r i 9 5 5 - 5 6 f o r the stu d y of the
F e d e r a l R e s e r v e S y s t e m . W i h ad hoped th at we c o u ld subcnit a r e v i s e d
b u d g et b e f o r e th is t i m e . A c t u a l l y the w o r k of the C o m m i t t e e i s u n d e r
r e v i e w a t p r e s e a t * and it will be F e b r u a r y b e f o r e o u r fin a l bud get c a n
be d e t e r m i n e d with a n y r e l i a b i l i t y .
A c c o r d i n g l y , I a m sen d in g you h e r e w it h a r e v i s e d s t a t e m e n t of
e s t i m a t e d e x p e n s e s f o r > 9 5 5 - 5 6 b a s e d on p r e s e n t s a l a r y c o m m i t m e n t s
a a d o t h e r f o r e s e e a b l e e x p e n s e s . T h e to ta l a m o u n t s to $ 4 4 , 4 4 5 . 0 0 , f r o m
w hich m a y be d e d u c te d th^ u n exp en d ed b a l a n c e f r o m 1 9 5 4 * 5 5 of
$ i £ , 5 3 * , 6 i . A c c o r d i n g l y , I sh ou ld lik e to r e q u e s t p a y m e n t on J a n u a r y i,
19*6 of $ 3 i , 9 i 3 . 39, r e p r e s e n t i n g the a m o u n t r e q u i r e d to f in a n c e o u r
opt a t io n s on a m i n i m u m b a s i s f o r the c u r r e n t f i s c a l y e a r . T h e s e
f i g u r e s a r e to be c o n s i d e r e d in s u b s titu tio n f o r th o s e g iv e n ia m y l e t t e r
to M r . G il le t t e d a te d N o v e m b e r 7, . 9 5 5 , w hich w e r e b a s e d on o u r
p r e l i m i n a r y b u d get f o r the y e a r .
In filing th is r e q u e s t f o r p a y m e n t I should like to e x p la in th at when
the p la n s of th e C o m m i t t e e a r e d e f i a i t e l y s e t t l e d in F e b r u a r y i 9 5 6 , we
s h a l l w ish to s u b m i t a r e v i s e d bud get and r e q u e s t a f u r t h e r p a y m e n t
if a d d itio n a l funds sh ou ld be n e e d e d d u r in g the c u r r e n t y e a r .
S in cerely y o u rs,
P resid en t
Eac. cc:
M r. A k ers
M i s s M a r one y
M r s . W ilson
M iss A dam s
M r . W ood w ard
T H E BROO KIN G S IN S T IT U T IO N
P r o j e c t on the H i s t o r y of the F e d e r a l R e s e r v e S y s t e m
R. F . 5 4 0 6 i
E s t i m a t e of E x p e n d i t u r e s , J u l y i, 1 9 5 5 - Ju n e 30, * 9 5 6
S a l a r y C o m m i t m e n t s ( e m p l o y e e s of B r o o k i n g s I n s t i t u t i o n ...............$ 1 6 ,8 4 5
S a l a r y E s t i m a t e s ( e m p l o y e e s of F e d e r a l R e s e r v e B a n k and
m i s c e l l a n e o u s p e r s o n a l s e r v i c e s ) .................................................................
3 .1 0 0
C o n t r a c t with l i s t e r Y . C h a n d le r - B e n S tro n g S t u d y .................. ... .
4 ,5 0 0
T r a v e l , s u p p lie s , and m i s c e l l a n e o u s e x p a n s e s ............................................
5 ,0 0 0
B r o o k i n g s I n s titu tio n Overhead ................................................................. . . . .
1 ,0 0 0
N ew P r o j e c t s and C o n t i n g e n c i e s .............................................................
T o ta l e x p e n se s,
i
9 5 5 - 5 6 .............................................................................................. $ 4 4 , 4 4 5 . 0 0
U n exp en d ed B a l a n c e , B u d g e t l o r 1 9 5 4 * 5 5 .......................................................
Cash R e q u ire m e n ts, 1 9 5 5 -5 6
i0 ,0 0 0
l l t$ l l.fci
$ 3 1 ,9 1 1 .3 9
THE ROCKEFELLER FOUNDATION
49 WEST *9th STREET, NEW YORK 30
i
H C * OP T H * <OMI> r * ' » U . * K
H-
AppHH«S:
|Uk k w * i.. N * * V 'F£
mm »m*Rnif.
K* v a n PY*K« A*-i-~T4* I
November 2$, 19^5
RF SkOfei
Dear Miss >'aroney:
Thank you for your letter of November 22 with woicn you
submitted a sta tenant. of receipts and expenditures for Uie perio d
ended June 30, 195-|p mder the captioned appropriation*
>fe note tnat you report an onex*-ended ba i.anoe remaining
as of June 3'), ly£> in the amount oi' Cl 2,531*61# Itiie balance
will be taken into consideration ™ien forwarding our next payment
to you,
in the interim, ye snai+ look forward to receiving; the •
19>5->6 budget from Dr, Calkins,
Very truly yours.
Miss Mildred Haronev
Treasurer
The Brookings Institution
722 JacKSon rlace, N’ .W.
Washington 6, D. C,
fw
copy to Jr. Robert J . Calkins
N o v e m b e r 22, 1955
MEMORANDUM
To:
M r. Calkins
From :
Mildred M aroney
On N o v e m b e r 7, you r e p o r t e d to the C o m p t r o l l e r of the R o c k e f e l l e r
F o u n d a t i o n that the e s t i m a t e d b udg et f o r the y e a r 1 9 5 5 - 5 6 is $ 5 5 , 0 0 0 , in
c o n n e c t i o n wit h the F e d e r a l R e s e r v e p r o j e c t .
He r e p l i e d to you r e q u e s t i n g a b r e a k d o w n of t h i s f i g u r e . He a l s o
a s k e d f o r o t h e r i t e m s , w h i c h I have s up pl ie d (c o p y on y o u r d e s k ) . B u t this
p a r t i c u l a r i t e m i s one w h i c h I th ink you w i l l want to d r a f t , s i n c e m y own
v e r s i o n of it is so s k e t c h y .
F o r w h a t e v e r it m a y be w o r t h to you, the fo ll ow in g is m y v e r s i o n :
I.
C o m m i t m e n t s known to t r e a s u r e r :
S alaries
M iss
M iss
M rs.
M iss
A d a m s f o r 12 m o n t h s . . .................................
B u r n e t t f o r 4 m o n t h s ........................................
S i n g e r f o r 3 m o n t h s . * ....................................
B u r s t e i n f o r 12 m o n t h s ................ . . . .
T o t a l ................................................................ $ 1 6 , 6 4 1 . 0 9
Contract
L e s t e r V. C h a n d l e r
P a y m e n t due 6 / 1 / 5 5 (paid in S e p t . ) . . . . $ 1 , 5 0 0 . 0 0
P a y m e n t s due in 1 9 5 5 - 5 6 ....................................
5,000.00
T o t a l ................................................................. $ 6 , 5 0 0 . 0 0
B r o o k i n g s I n s t i t u t i o n O v e r h e a d .................. ................................... $ 3 , 0 0 0 . 0 0
II.
U n d e s i g n a t e d e x p e n d i t u r e s ( c o n t i n g e n c y f i g u r e ) ......................$ 2 8 , 8 5 8 . 9 1
T o t a l ( e s t i m a t e d f o r T r u s t e e s , Nov7. 1 9 5 5 ) ............................. $ 5 5 , 0 0 0 . 0 0
P a r t I I a b ov e m e r e l y r e p r e s e n t s a r e s i d u a l f i g u r e , th at i s , $ 5 5 , 0 0 0 . 0 0
m i n u s the s p e c i f i c i t e m s l i s t e d a b o v e . I have s e n t a c opy of t h i s to M i s s
Adams for a s s is ta n c e toward refinem en t.
Due to a f a i l u r e in o u r t i c k l e r s y s t e m , we n e g l e c t e d to p a y D r . C h a n d l e r
$1,500 w h ic h w a s due J u n e 1, 1 9 5 5 , and t h i s m u s t be c o m p r e h e n d e d in the budget
f o r 1 9 5 5 - 5 6 . We paid it in S e p t e m b e r , w h e n we o u r s e l v e s d i s c o v e r e d th e
o m i s s i o n ; he n e v e r s a i d any thin g about it. T h i s c o m e s out i n the w a s h .
E x p e n d i t u r e s f o r 1 9 5 4 - 5 5 would h av e b e e n $ 1 , 5 0 0 h i g h e r had we paid it when
s c h e d u le d .
I ha ve a l s o r e p o r t e d to M i s s A d a m s th at e x p e n d i t u r e s in the f i r s t
q u a r t e r of 1 9 5 5 - 5 6 a g g r e g a t e d $ 9 , 0 5 0 . 9 4 .
November 22, 1955
M r . G e o r g e £ . V an D yk e,
A ssistan t C o m p tro lle r,
The R o c k e f e l l e r F o u n d a t io n ,
49 W e s t 4 9 th S t r e e t ,
New Y o r k 20, New Y o r k .
D e a r M r . V an D yke:
I have r e c e i v e d f r o m yon a co p y of y o u r l e t t e r of N o v e m b e r 15 to
D r . C a lk in s in r e g a r d to the statem < nts w h ich you r e q u i r e in c o n n e c t i o n
with y o u r a p p r o p r i a t i o n R . F . # 5 4 0 6 1 f o r the p r e p a r a t i o n of a h i s t o r y of
the F e d e r a l R e s e r v e S y s t e m .
D r . C a lk in s w ill su p p ly the d e t a il e d b re a k d o w n of e x p e n d it u r e
e s t i m a t e s a s p r o j e c t e d f o r the y e a r ending Ju n e 3 0 , 1 9 5 6 .
I a m supplying h e r e w i t h the r e p o r t of a c t u a l e x p e n d i t u r e s f o r p e r i o d s
ending J u n e 3 0 , 1 9 5 5 and the r e s u l t i n g p o s i ti o n a s of J u l y 1, 1 9 5 5 . T h is
r e p o r t is in two p a r t s .
T h e f i r s t r e p r e s e n t s a c u m u l a t i v e s t a t e m e n t w hich is s e t f o r th in
t e r m s of two g r a n t s (R . F . # 5 4 0 4 and # 5 4 0 6 1 ) , w h ic h , a c c o r d i n g to the
n o t i f i c a ti o n of M ay 2 4 , 1 9 5 4 , w e r e to be t r e a t e d a s a c o m b in e d su m of
$ 3 2 0 , 0 0 0 . 0 0 . A s o f J u n e 3 0 , 1 9 5 5 , we had exp e n d e d $ 5 0 , 7 9 3 , 3 9 a g a i n s t
r e c e i p t s a g g r e g a t i n g $ 6 3 , 3 2 5 . 0 0 , and th e unexp en d ed b a l a n c e of $ 1 2 , 5 3 1 . 6 1
w as c a r r i e d to o u r l i a b i l i t i e s in the f o r m of p r e p a i d g r a n t s , a p p l i c a b l e to
the b ud get f o r 1 9 5 5 - 5 6 .
(Of the t o t a l e x p e n d e d to June 3 0 , 1 9 5 5 , $ 1 2 , 0 3 8 . 6 4 w as e x p e n d e d in
1 9 5 3 - 5 4 and $ 3 9 , 7 5 4 . 7 5 in 1 9 5 4 - 5 5 . A n o t h e r b r e a k d o w n of the to ta l i n d i c a t e s
t h a t $ 1 3 , 0 9 0 . 3 2 w a s d i s b u r s e d in the f o r m of r e i m b u r s e m e n t s to the
F e d e r a l R e s e r v e B a n k of New Y o r k , w hile $ 3 7 , 7 1 3 . 0 7 w as d i s b u r s e d by
the In s titu tio n a s e m p l o y e r o r v e n d e e . The l a t t e r f i g u r e s in c lu d e s $ 3 , 0 0 0
of i n d i r e c t c o s t s o r g e n e r a l o v e r h e a d c o v e r e d by a g r e e m e n t with the
C o m m i t t e e on the H i s t o r y of th e F e d e r a l R e s e r v e S y s t e m f o r a n annual
c h a r g e a t that r a t e b egin n in g J u l y 1, 1 9 5 4 .)
M r . Van Dyke
1 1 / 2 2/ 5 5
Page 2
The second p a r t of my re po rt ia a budget st a t e m e n t for 1 9 5 4 - 5 5 ,
which is p r e p a r e d on a basis co ns is te nt with an e s t i m a t e of $ 5 3 , 3 2 5 for
the f i s c a l y e a r , as submitted by Dr. Calkins to the R o c k e f e l l e r
Foundation June 15„ 1954. This s ta te m e nt r e c l a s s i f i e s expen ditures for
1 9 5 4 - 55 for the pu rpo se s of the C o m m i tt e e , It also r a i s e s the total for
1 9 5 4 - 5 5 f ro m $ 3 8 , 7 5 4 . 7 5 to $ 4 0 , 7 9 3 . 3 9 by inclusion of the deficit for
1 9 5 3 - 5 4 in the amount of $ 2 , 0 3 8 . 6 4 . This is n e c e s s a r y f r o m a budgetary
viewpoint to finance the def ici t, although obviously the deficit is eliminated
through the cumulative r e p o r t of r e c e i p t s and e x p e n d i t u r e s, which ends
with the identical bal anc e of $ 1 2 , 5 3 1 . 6 1 .
I t r u s t that this info rm at io n will supply your naeds, e x ce p t as to
the breakdown of r e q u i r e m e n t s for 1 9 5 5 - 5 6 . If not, p l e a s e feel f r e e to
c o m m u n i c a t e with me f u r t h e r .
Yo ur s v e r y truly,
Treasurer
Lnc.
THE BROOKINGS INSTITUTION
P r o j e c t on the Hi sto ry ot the F e d e r a l R e s e r v e System
A d m in is t e re d Jointly with the
C om m it tee on the Hi sto ry of the F e d e r a l R e s e r v e Sy ste m
Under R. F . G ra nt s #5404 ( $ 1 0 , 0 0 0 ) and #54061 ( $ 3 1 0 , 0 0 0 )
f inancial Report
June 30, 1955
Receipts:
R. F . Vouc her #5 408 73 , F e b r u a r y 3, 1954 . . .............................................
R. I . Voucher # 3 4 4 7 7 9 , June 29, 1 9 5 4 , ...........................................................
R. F . Voucher # 5 48 78 3, D e c e m b e r 16, 1954 .................................................
$10,000.00
26,662.50
26,662.50
T o t a l .........................................................................................................................
$63,325.00
E x p e n d i t u r e s , y e a r s ended June 30:
1954
1955
S a l a r i e s ..................................................................
C o n tr a c t p a y m e n t s ..........................................
H o n o r a r i a ..............................................................
M isc ell an eo u s p e r s o n a l s e r v i c e s . . . .
$ 8,365.30
1,333.33
—
_______—
$23,016.10
6,380.42
400.00
_____5 47 .9 9
Total, pe r so n a l s e r v i c e s . . . . . . .
T r a v e l and e n t e r t a i n m e n t ............................
S u p p l i e s .............. ...................................................
F r e i g h t and e x p r e s s c h a r g e s . . . . . .
Eq uip m ent ...............................................................
Equipment rental ..............................................
Equipment m a i n t e n a n c e ..................... ...
Telephone and te l e g ra p h ............................
P o s t a g e ..................................................................
Books and s u b s c r i p t i o n s ............................
B. I. o v er h e ad a l l o w a n c e ............................
$10,198.63
957.66
303.00
154.06
4.64
324.16
—
95.47
1.02
.............. -
$30,344.51
3,500.11
416.54
11.7 9
742.23
231.36
44.00
413.29
8.70
42.22
3,000.00
T o t a l s ........................................................
$12,038.64
$38,754.75
$50,793.39
B a l a n c e on hand, June 30, 1955 ( c a r r i e d as prepaid g r a n t s ) .................
$ 1 2 , 5 3 1 .6 1
G ra nt s r e c e i v a b l e (unpaid ba la nc e, July 1, 1 9 5 5 ) ..........................................
256,675.00
Total available for the period July 1, 1955-«May 31, 1 9 5 9 . .....................
$269,206.61
I c e r t i f y th at the ab ov e s t a t e m e n t is c o r r e c t .
T reasu rer,
Th e B r o o k in g s In s titu tio n
N ovem b er 22, 1955
BUDGET STATEM ENT
P r o j e c t on the H ist o ry of the F e d e r a l R e s e r v e S y s t e m
Under R. F . Grant #54061
F isca l Year 1954-55
T h is s t a t e m e n t is p r e p a r e d on a b a s i s c o n s i s t e n t with e s t i m a t e s s u b
m itte d to The R o c k e f e l l e r F o u n d a tio n , by D r . G a lk in s , Ju n e 15, 1 9 5 4 .
E stim ated
J u n e 15, 1 9 5 4
A c tu a l P e r f o r m a n c e
1954-55
S a l a r i e s .................................................................
$ 2 1 ,3 3 8 .0 0
O ffice c o s t s and t r a v e l .............................
5,000.00
4 ,1 6 9 .0 8
R e s e a r c h c o n t r a c t s ........................................
8 ,9 3 7 .0 0
$ ,3 5 6 .2 7
B r o o k in g s e x p e n s e s and o v e r h e a d . .
3 ,0 0 0 .0 0
3 ,0 0 0 .0 0
C o n ti n g e n c i e s
...................................................
Two P r i n c e t o n c o n f e r e n c e s
15,000.00
1,996.50
. . .
D e f i c it f o r 1 9 5 3 - 5 4 . ...................... ...
$ 2 1 ,2 3 2 .9 0
.........................
2 .0 3 8 .6 4 *
$ 5 3 ,3 2 5 .0 0
$ 4 0 ,7 9 3 .3 9
R e c e i p t s , f o r 1 9 5 4 - 5 5 ................................................................................
5 3 ,3 2 5 .0 0
B a l a n c e a v a i l a b l e f o r 1 9 5 5 - 5 6 ..............................................................
$ 1 2 ,5 3 1 .6 1 * *
* E x p e n d itu re s , 1 9 5 3 - 5 4 ($ 1 2 ,0 3 8 .6 4 ) le s s R. F . #5404 ( $ 1 0 ,0 0 0 .0 0 ).
* * S e e a l s o c u m u l a t i v e r e p o r t of r e c e i p t s and e x p e n d i t u r e s u n d e r
R . F . # 5 4 0 4 and # 5 4 0 6 1 ( c o m b in e d ).
TH E ROCKEFELLER FOUNDATION
4f W EST 4
STREET, NEW YORK 20
Cm u
o r r i C t OF T H E C O M P T R O L L E R
Atttm w:
Ko c k m u k b ,
M. M A L C O L M G l L U r T T * , C O M F T a O L U I
O B O B G * U. YAM D T E I , A SS 1ST A X T COM U M I U I
Hovmaber 15, 1955
RF 5UQ61
Dear Mr. Calkins:
We have your letter of November 7 vith reference to the
above appropriation for the preparation of a history of the federal
Reserve Systam*
It is noted that you estimate your budget for the year
1955-56 at $55,OOG* Last year you suhaitted a detailed breilltam
of your projected expenditures for the year, and ve vould very such
appreciate it if you vould foJJLov the seme procedure this year*
He also note that you request a payment of Hi3,Q00 to
meet the estimated expenses for the current fiscal year* Vs assume
this amount represents the full amount of your budget, less angr
unexpended foods remaining from 195U-55* In accordance vith oar
official notification of Hay 2k, 195k, it is custcsiary for us to
forvard our remittances in semi-annual payments, and if this is
convenient to you, ve shall plan to forvard our first semi-annual
payment upon receipt of your budget* Our second seal-annual pay
ment vill be available about the first of January, 1956) hovever,
we shall require a signed statement of receipts and expenditures
for the year ended June 30, 1955 before forwarding it to you*
Mr* Robert D. Calkins, President
The Brookings Institution
722 Jaokson Place, N , V*
Washington 6 , D* C .
fv
Copy to Kiss Mildred Maroney, Treasurer
Nrw T o m
e
N o v e m b er 7, 1 9 5 S.
M r . H. M. G ille tte
C o m p tro ller
Th e R o c k e f e l l e r F o u n d a tio n
4 9 W e s t 4 9 th S t r e e t
New Y o r k *10, New Y o r k
Re:
G ran t 54061
D e a r M r . G il le t t e :
On M a y 2 4 . 1 9 5 4 1 w a i a d v i s e d of the g r a n t of $ 3 1 0 , 0 0 0
to the B r o o k i n g s I n s titu tio n f o r the p r e p a r a t i o n of a h i s t o r y of
the F e d e r a l R e s e r v e S y s t e m . To date the In s titu tio n h a s r e
ce iv ed under th is g r a n t $ 5 3 , 3 2 5 t o w a r d budget f o r 1 9 5 4 - 1 9 5 5 ,
and $ 1 0 , 0 0 0 under a pr e v io us g r a n t (GASS 5 404 ).
T o J u n e 30, 1955 the In s titu tio n has e x p e n d e d $ 5 0 , 7 9 3 . 3 9 .
T h e e s t i m a t e d b ud get f o r the y e a r i 9 5 5 - 1 9 5 6 i* $ 5 5 , 0 0 0 . A c c o r d
ingly, I should lik e to r e q u e s t p a y m e n t of $ 4 3 , 0 0 0 to m e e t the
e s t i m a t e d e x p e n s e s f o r the c u r r e n t f i s c a l y e a r .
S in cerely y ou rs,
P resid en t
cc:
Mr. A k e r s
Mias Ma ro ne y
M r s . Wilson /
R. F . GRANTS —
Study o f H is to r y of Fe d e ra l Reserve System
J u ly 21, 1955
MEMORANDUM
To :
From*
Mr. C alkins
M ildred Maroney
T h is i s a p re lim in a ry statem ent o f the s ta tu s o f funds f o r the
Fed era l Reserve stu d y .
F o r reasons which are apparent below, the re i s no
urgency about cash requirem ents f o r 1955-56, and I would a l i t t l e p re fe r
d e fe rrin g req uest to R o c k e fe lle r Foundation u n t i l we fre e ze fig u re s ( in A ug ust),
A ls o , budget f o r 1955-56 may be excessive?
GRANTS
R.
GA SS 5h0h ( p ilo t p r o j e c t ) , . . .
R . F . 5^061 ................................................
$10,000.00
310j 000>00
T o ta l (to be handled as a combined sum)
...........................
$320,000.00
EXPENDITURES
1953-5U a............................................................. .... 12 >038, &
195U-55 (p re lim in a ry fig u re )
...................... 38,75U.75
Total
....................................................................................................
Unexpended balance of grants
<>••••.......................................
-
£0,793*39
269*206.61
PREPAYMENTS BY ROCKEFELLER FOUNDATION
1953-5U
195U-55
................................. ..........................
(budget for
..................
10,0 0 0 .0 0
53,325.00
Total
............................................................ .....................
Less Expenditures (from beginning to 6/30/55)
.......
63,325-00
- 50?793«39
Balance of prepayments, 6/30/55 ..............................................
12,531>61
CASH REQUIREMENTS, 1955-56
Budget as estimated May 13, 1955 ........... 65,000.00
Less prepayments brought forward .............. 12,531*61
Cash Requirements, 1955-56 (?)
............... ...............................
5 2 , U 68.39
o
FEDERAL RESERVE - 7/1/5U - 6/30/55
Under R. F. 5U061 ($310,000)
Tentative Budget
SAURIES (and OASI)
Expended to
Oct. 31
Committsd
7/1 - 6/30
Mildred s. Adana . . . . . ......... . . . .
Marguerite Burnett IQ/13.▼.]*/! 3)
Ellen Colt Singer 9/9 Irma Burstein ll/l Employees of Federal Reserve Bank
Brookings stenographers ..............
Misc (Elizabeth Abolin) ..........
Total salaries .......................
CONTRACTS
17.569.^7
21,388,00
.
F . A. Kincaid (balance).................
Lester Chandler ................... .........
Beatrice ^ulla (?)
. . ...........
Total contracts ................ ........
HONORARIA
2 ,666,66
1 000,00
2 ,666.66
l.,5<io.oo
?
3 , 666.66
7.166.66
,
8,937
300.00
November conference .......................
Other
« » • • * ......................... ..
?
Total honoraria
TRAVEL
....................... ..........................
3,000,00
MISCELLANEOUS (El and Fed Res, Bank)
Stationery ............................................
Telephone and telegraph .............• • • • •
Equipment ...............................................
Equipment rental . , *....................... . •. •
Equipment maintenance ............ ............
Entertainment ......... ..............................
Books .............. ....................................
Other ......................................................
Total miscellaneous . . . . . . . . . . .
1*00.31
33.78
55.18
677.88
1( 2 .6 0
UU.oo
3.2o
U.30
.60
2^000.00
"H
r
OVERHEAD ALLOWANCE.......................................
3,000.00**
CONTINGENCIES
..........................................
Deficit under R, F, 50W* (1953-5U® . . . .
15,000*00
________
TOTALS
53,325.00
3,000,00*.
2,038.61t
10,880.39
* Assumes extension of appointments to 6/30/55
** Question whether this provision includes B. B, stenos and misc, direct costs
or whether it is an allow nee for B, I , indirect costs
1
30.07A.57
(Incomplete)
G jb u u u *
i
February 8, 1955
M iss M ildred Adams
33 L ib e r t y S tr e e t
New York U5> N. Y .
Dear M iss k#m&t
As promised, I have gone over the record of expenditures w ith a
view to p u llin g out the c o sts o f the November conference at P rin c e to n , which
amounted to $872.39 as set f o r t h in P a r t I I o f the attached re p o rt o f expenditures
This fig u re d i f f e r s o n ly s l i g h t l y fro ® IP's. S in g e r’ s e a r lie r computation, due to
a $10.00 adjustment in the b i l l from P rin c e to n In n .
We a ls o have added 50 cents
for tr vel by Dr. Calkins, which item represents the cost of cancelling his
re se rv a tio n s •
A l l o th e r tra v e l in say re p o rt i s accounted f o r by t r i p s to Denver,
Ith a c a , C h a r lo t t e s v ille , Boston and Washington, in c lu d in g b i l l s and adv nces
by tfee Bank, item s paid by B ro o k in g s, le s s re fu n d s to Brooking s*
As ex
plained on the telephone, i t i s not p o ssib le a t t h i s junc ture to f u r t h e r break
down these item s by p ro je c ts , because I do not know what the p ro je c ts a re ,
o r i f I d id , I would not be able to t e l l what t r i p s and what s a la rie s are as
signed to th e n .
B u t I s h a ll be glad to cooperate w ith you in the develop
ment o f c la s s ific a tio n c o n s is te n t w ith your budgetary c r i t e r i a , i n so f a r as
you want t h i s done
A part from the r e - c la s s ific a tio n in the enc lo sure , I have ra ise d
the o v e ra ll t o t a ls o f expenditures by I ^ . O l i .
T h is c o rre c tio n i s explained
as fo llo w s s
1. I find I overstated payments to Dr. Kincaid by $ 0 .0 1 .
I guess
we owe him that penny I
^ ^ ^
2 . I understated traveljb& $ 7 5 * 3 ^
This i s due to the fa c t th a t
a supplementary b i l l which we T^ely^^rTTtovBpher from the Bank in New York
was e rro ne o usly posted to a no t^ r account, and we have sinc e corrected
3 . In the previous rW > o H « thq^ t ^ lementarv payment o f $26.25 to
Miss Bowen was counted twice because we paid her once via the register o f
vouchers and again via the payrolls; meanwhile, the latter check has been
cancelled.
fhe three adjustments in combination amount to $1*9.Oiu
T o ta l exp e nd iture s, as of Dec. 3 1 , become $3 1 ,306.99 instead o f
$ 31,257.95*
The unexpended balance o f $320,000 was $ 2 8 8 ,6 9 3 .0 1 , and
the unexpended balance o f cash re c e ip ts (prepayments a t Dec. 31) was ^ 3 2 ,0 1 8 .0 1 .
Yours s in c e re ly ,
/
€*-Vurv
Treasurer
i
.
ulc-
4
1
/ H 'v W
Corrected Report
M. Maroney - 2/8/5$
Report of Expenditures
STUDY OF THE HISTORY OF THE FEDERAL RESERVE SYSTEK
December 31, 1951*
I*
OBJECTS OF IXPEHDXTURI
Fiscal Periods
1/1/51* 6/30/51*
7/1/51* 12/31/51*
8,669.85
10,270.17
1,333.33
2,666.66
2,000.00
208.62
3,999.99 «/
2,000.00 V
208.62
1,333.33
k ,875.28
6,208.61
957.66
1,378.02
2,335.68 c/
« • • • •
695.07
1,21*1*.B8
1,939.95
Brookinrs Institution Expenses
1sal Overhead * ..V « . . * • • •
382.73
1,500.00
1,882.73
Total Expenditures
12,038«6U
19,268.35
31,306.99
RECAPITULATION, 1/1/51*—12/31/51*«
I I . Purpose* of Sxpenditure
Unclassified
PfiQc$toQ Conf •
Hot. 1951*
Salaries # • • • • • • * • *
Contract paym ents..............
Travel and subsistence * » •
Office costs of Committee •
B. I , Expenses and Overhead
18,882.65
5,999.99
1,729.28
1,939.95
1,882.73
Salaries
Totals
Mildred Adams.................
Ellen Colt Singer * * « •
Marguerite Burnett • * •
Irma Buratein .................
Dorothy Bowen • • » • • •
Elizabeth Abolin . . • ♦
OASI paid by B. It « . .
Bank payrolls (reimbursed)
Total Salaries
• • • »
Contract payments
" ' £* I.' Kincaid .................
Lester V. Chandler • • *
Adelphia Reporting Bureau
Total contracts • * • •
Travel and subsistence
Office Costs of Cosmittee
Total Expenditures
. • *
|30,U3l*.60
57.37 d/
208.62 “
606.1(0
* 872.39
18,91*0.02
Totals
18,91*0.02
6,208.61
2,335.68
1,939.95
1,882.73
$31,306.99
a/ Due to oversight, less than contracted by one cent (we owe Dr* Kincaid one cent)*
B/ Includes payment due 1/1/55#
c/ Includes |?5*30 omitted from previous report.
d/ salary supplements (56.25) p lus 2%
@FedFRASER