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BOARD OF GOVERNORS or THE FEDERAL RESERVE SYSTEM Office Correspondence To Chairman Eccles From Mr> Thurston 1***-****^ 21 SubjectL_ , Section 10, paragraph 2, of the Federal Reserve Act s t a t e s : "Of the persons thus appointed, one s h a l l be designated by the President as Chairman and one as Vice Chairman of the Board, t o serve as such f o r a term of four years •ff lffliile the same paragraph provides t h a t •'members of the Board s h a l l continue t o serve u n t i l t h e i r successors are appointed and have qualified", there i s no such hold-over provision with r e spect to the designation as Chairman. George Vest thinks t h a t the Chairman f s term i s d e f i n i t e l y f o r the four-year period and t h a t he has to be redesignated each four years• There i s no reason, he says, •why the President could not a t any time sign the customary designat i o n , to be effective beginning February 1, 19ij.8. Accordingly, I think i t would be appropriate for you to mention to Matt Connelly t h a t unless the President has other i d e a s , i t would be well t o issue the redesignation a t any time now so as to allay possible speculation and uncertainty. The same considerations apply, of course, t o Matt Szymczak*
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