The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Y Governor Bccles <--> 1935 TliTOII FiZG7 Mr. Goldenweiser t} I attach an attempted revision of the objective to be prescribed for the Federal Reserve Beard. This objective differs from the previous ones in three particulars: 1. It includes the maintenance of sound banking and credit conditions. This Is clearly a part of the duties of the Federal Eeserve Board and a mention of It in the objective will placate those who think that the proponents of the bill have no interest in sound banking. 2. It brings in the need at this time to restore production and employment to a satisfactory level. In the text this level ie defined as the highest level consistent with economic stability. 3. It prescribes the mitigation of such fluctuations in the general level of production, trade, prices and employment, as militate against the continued stability if economic conditions. In simple language, this objective means that the Board should contribute to the maintenance of sound banking and credit conditions and to the restoration and maintenance of prosperity. There is nothing new in the thought, but it seems to me to be a fairly satisfactory way to meet the two principal objections to the objective as originally introduced, namely, that it does not provide for the restoration of prosperity and puts too heavy a burden on the unpalatable word "ttastabilizing." % • f It shall be the duty of the Federal Reserre Board to use Its powers toward the maintenance of sound banking and credit conditions and to exert tueh influence at lies "within the scope of nonet«ry action and credit administration (1) toward the restoration of emploTment amd production to the highest level consistent with economic ttability and, thereafter, (?) toward the stoderntion of such fluctuations in the general level of production, trade, -arises, and erroloyraent at conflict with continued stability of economic conditions. / /0
@FedFRASER