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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

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