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Excerpt from statement of Mr* Sproul before the Joint Committee on
the Economic Report on May 12, k


Then there is the organization and functioning

of the Federal Reserve System itself.

I have always be-

lieved and still believe that we have in the Federal Reserve System a wise blend of national authority and
regional responsibility, of Government control and private

But it is some time since the Congress gave

us its mandate and various interpretations of its intent
have gained currency. More and more it seems to have become the habit to think of the System as a head office in
Washington with 12 branches or subsidiaries in the 12 Federal
Reserve Districts, and even to forget that the Board of
Governors is a Board and not a chairman with deputies, great
though the powers of the Chairman may be. More and more it
has become the habit to minimize the value or deny the propriety of any private participation in the affairs of the

I oppose these tendencies.11