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11120 CONGRESSIONAL RECORD—APPENDIX ort from t i p fact tb*£t rejections for func~. Wilson's. For Mr. McCabe has duties under ^onaV'illiteracy dropped grVatly* between iho/ the law which direct the Federal Reserve vvo^/orhyWars, /evertl^eaa it^i clear,(hat f to prevent Injurious credit expansion or ne/taatonf educating our people to bVeffctf- .contraction. It 1b, X believe, the fact that the members of the Federal Reserve Board j ve citizens ^ well f% good/soldieri isyfar torn completed and/bas become a trntjonul ^ , h n t j 0 f the Federal Open Market Commit-' •sp^hBiblUty. ^ / ; te* iigreed—includlng in hU privato y . > \r: -; vleitg even Govenj^f.YpJXJaman—that the Trea^ry's on-ttrtk *igid support ( j of ; a 1fixed*ln^rjpt naubn\is' causing in- » jurlous credit expanaidii thaf la highly lnfla- ^ tC&ecpni tlonary. v * - ' / T V V. Mr. McCabe>»d his colleagjies of the Fed-. 1 E X T E N S I O N .OF! .HHHABKS eral Reserve^ tmdpr the law an lndepend-^ or ent Oovernrfeat establishment. They are; to take orders from or to be. HON'. CURErfCE ^RllBURN V not supposedthe pressure of/the admlnlstra- ' subjected to tlon. Pr^'sid^nt Wilson* who "was responsiW KEVr TOftJtl % * T ble for the creation of the Federal Reserve IN THE HOUSE-OP RE3F&£SKNTATiyE3 System., treated the members-of the Board with the saifce scrup^Jlout respect for their Thursday, Mar&sjjisisi Independent? that he ^ gave -to Ithe Judges Mr.m K I L B U H N , , under of the Federal courts;',,There can be no doubt^ inanlQious * consent, to extend ray r e - ' th$t it* has been the intention of Congrcsa narks, I include .fcercin\aj* article , by that the federal Rescw*-. System should be independents-To. emphasize'this view CqnWalter Lfppmann,-.which X.Jiopo everygress in^the -Banking Act of 1935 removed one will read. T h e Federal Reserve the Secretary of the Treasury and the CompSystem should be above' any pressure troller of the Currency from the Federal Rerom outside and I , h o p e they follow serve Board. • Congress acted then upon the hrough on their position regardless of advice o t Senator Carter Glass, of Virginia, ho.se pressures;^ TJie articlcf follows: who had been Secretary of the Treasury under President Wilson. Senator Glass told ; Prom the wiUrhingtOn^ Pcifc of March 1, the Senate'that all Secretaries of the Treasury including, himself have exercised unduo TODAT ^moriiow Influence ova*Athe board and have treated (By Walter Llppmann) It rather as a bureau of the Treasury ln«t(jad of as a board independent of the GovA SECOND T Y * * H ? ernment * * riot to be used to finance The,President *has now intervened for the the Federal Oprerpment, which was assumed »coud time in -the controversy between the always to be.4ble to finance itself. Treasury and the Federal Reserve. This Mr. Truman does not, It appears, recog•nccting differed from the first onet which nize that the' Federal Reserve Is an Indevas held on January 31, In that the.^ Presipendent establishment with duties wl^ch dent has now come to see that the Issue are laid upon'Jt by the law, duties which is not one that can be scttl'eef- by calling it cannot, or at least should not, abandon t n the Federal Open Maifc^^mndttee and because he asks the Board to do that. /-Ir. .sklng them to be good and "to da what McCabe and h'ls colleagues are in the awkJohn Snyder wants to have done.; • ward predicament of being asfeed, indeed, At the w « t t n g v t h i s ' WfteJf ..the .President heavily, pressed, by the President of the recognized—ai .least ln: thooryw-thai there la United States to do what under the law . problem still to be solved, there are . i ivergen^ policies * whi6h Jinve AfctUI to be and their own unanimous Judgment under reconciled. This • time ' thc-Trwwury, the - that law'they ought not to do. The President's memorandum comes close Office of Defense Mobilteatloiir/'ttte Council to saying that if they do not obey the Treas.)f Economic Advisers were atyb^resent, and ury, they will be interfering with the dehe President instead of tftlltfcdtr off the cuff fense effort.. This Is duress employed to cad a*memorandum, appo/nted a commltoverride their independence of judgment. . ee to makp a report, andfcxptesiitydid "not It is not fair. Indeed, it is highly improper,, 13 those*present for any commitments on .k for th$ president to placc them In a dilemma he subjects under discussion.'" where '11, they do their duty und^r^he law, This Is a decidedly better: way to come they are mado to appear as obstructor* of it a great question of.this abrt. But it Is the national defense. If the president belot nearly good enough, \jrtie report which lieves the emergency Is such that tli# Fedthe President asked, for-Is, to be made by eral Reserve System should cease to be Invcessrs. finyder. Kcyeerllngt'McCftbo,-and Wilon. What two out of.thd#four members of . dependent and should become, as Senator h© committee—namely, Mr. Snyder and Mr., Glass put It, a bureau of the Treasury, then •Ceyserllng—ore going to report we already' he should* accomplish that by asking Conrinow; "they "have put out- a preview of d t . gress to amend the law and not by pressure from the White House. ' . ; ,, in the memorandum ti^ot the President road In what was surely one of^tj^e^hlest 1 ind that they—or thelr^stafls—must have > written. Thu^ half of ,tne committee to* speeches delivered in the SQnate<tfa?,£rmfty a . tudy the problem written lta own views* ;«' long day, Senator Douglas said at tbtf "I i bout the-conclusions of the committee Into conclude with the plea that the*Ze&wury • ho directive which the 'committee la to folabate Its policies and yield on thft • fcsue. tow. ^ ' - ~ May I also enter a plea that thcr federal Mr. Wilson, the third member. h a T a ' t n * Reserve Board gird its le£ai loins and fulfill nendouatoteresUin any measure whichwill;,.* 1 1 0 responsibilities which. I believe Confess : educe t b e ^ M l a n a r y pressure on th$ p r i ^ . intended it to have?" < *. ind wage ^ftUiagi for which he la J r e s p I t is asking.a good deal of a n y l w r d — ible. ButjMr^ Wilson has been subject<k|^ especially la,;a,tlme of national emergency, • o prcssutfi l a fact to unfair pressure;**-liw/especially l i t a field which so few under- < offect he/uis been put in a position whwflfj *} efattul,well enough to have strong viow*H-tt*at ho cannotside with the federal Rean^a T V i t should gird ( iti legal loins 4tnd daly,Hhe without owning into open disagreement with,-,. President and his administration/,/Bluce me President of the United States, who^ia^- Mr. Truman, aeems determined to mako t&e :iIb immediate.superior., issue one where the Federal-Jteaerve.roust The fourth,member of the committee choose between following its own judgment. Mr, McCabe, -tha Xlhalrman of the Board - and obeying-his Instructions, ther^'is m is^. of Go vera ors olttfe^'e&gna Reserve System.^ suowhich Congress alone can decide/Sena*..' His position"lA.'evj^in££*tilXQcultthan Mr. . tor Douolab has"a resoiullon w^ich -wp^iid MARCH 1 • fit decide it, and It should be brought forwardiar enough forward at least to.offset the heavy pressure which is being exercised upon the President's committee by the White House.