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Great Caution Should Be Used in Filling Vacancies on Federal Reserve Board EXTENSION OF REMARKS op* ~ .. HON. PAUL W. SHAFER or MICJIIgAN ; s - m THE HOUSE OF BW?RE6ENTATIVB3 Wednesday, Fthpfory 15, 1950 / Mr. SHAPER. Mr. Speaker, President Truman wlll-foon be called upon to fill two vacancies on the Federal Reserve Board. This Will be a great responsibility for the Chief Executive, The importance of his action is well stated in a press release which appeared i n Washington newspaper over the week end. The release, I taStJerstand, was issued by a highly respected Member of the other, body and should be available to every Member of , ^Sbngress. Therefore, under permission*,Ja extend my remarks, I in-? elude this statement which I commead to all Members: <• _ FEDERAL RW3S»Vf VACANCIES ' There are two vacancies to be filled on the present Federal Seserve Board. This BoArd, as you know, wft-s set up to act as an independent regulator of the country's financial policies and was never designed to be a tc3oi of the executive branch. I t I i supposed to be uonpolltlcal and nonpartisan. The Board Is designed to serve as a traffic l i g h t in Rational fiscal policy. I t is Important for the Amerlcatt peqpje and our democratic Institutions th*j| these very fine and important position*,' paying $15,000 a year for 14-year terms', should be filled by men of Independence aftd caution. The crcdlt of the Nation is n o t h i n g to be trifled with. We must be strong financially t o stand the strains frorfi w i t h i n and without nowadays. There has been a tendency of late on the part of the Board to move closer t o t t f e orbit of the White House. That to against the spirit of ""the law \yhich created tKe Board, T h i s Board could very w i l f i s e packed to aglfc9J£> the fiscal policies Uf^l d g ^ n ^ y the W W w House and the Treasury,* m S f c lire report* i n Waa&lngton t h a t t h U r i f a ydWdMuty. Let me point out t h a t tfe*i$tne df >«dutrol f r o m - t h e White House W - t h e y t e i t a n to Board could well ' M N as its uPtimate%tolalt t h e control of t h e iJ&nka through * t h e ' Board's credit policies a n d through the banks to the Industries of-'the country. •> •<• . •' The Board has embarked In recant years on tome radical actions which are m w e nt less questionable, i f we do not get pendent men a**li«tr appointees these que** tlonable actions t&lght well become ruteSlft f u t u r e action. The subject of the eoaiumer'a dollar is a precious one In this c o i f t i t * ^ I am sure the President w i l l realise thafc-n stroifg, Independent Federal Reserve Board, acting according to the Intent of Congvesa and not i n o v l n f te-the White House orbit at all. Is an asset Which the American people cannot well afford td.loae. Congressional K e c o r c i k / X t > i t?Q