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August 3, 1939.
Chairman M. S. Eccles,
Board of Governors,
Federal Reserve System,
Washington, D. C.
Dear Governor*
My departure from the Division and my new duties raise
certain problems relating to the staff:
1. Henry Edmiston will probably be made a very attractive offer (I understand $5>6OO a year) by the National
Resources Planning Board, which is now attached to the White
House and which is very desirous of securing a person familiar
with the intricacies of federal finance, including estimating
and the activities of all the lending agencies. I also am
badly in need of such a person with whom I can work closely.
I had hoped that your suggestion to Dr. Goldenweiser that Henry
be put in charge of this whole field in the Division would be
adopted and that I could have direct access to him. Dr.
Goldenweiser, however, appears disinclined to move in the
matter and Henry will probably have to make a decision within
a few days. In these circumstances, I think that it will
probably be both to his interest and mine for him to make
the shift.
2 # Mr. Bassie, in my former section, is, in my opinion,
one of the most competent technicians in the country. He is
being offered $5ยป6OO a year to go to Commerce (he is now getting $4>600) to take charge of the work in developing basic
economic indexes such as consumption, production and inventories. I think he will be a real loss but as his work has been
subjected to severe criticism by Dr. Goldenweiser, Mr. Thomas
and the Business Section I fear that his position here will
be difficult and that the results of his brilliant work will
get neither to the Board nor to the pvblic. I cannot honestly
advise him, therefore, to decline the Commerce offer.
3. Emile Despres, of the Federal Reserve of New York,
who was vdth me last winter, has likewise been made an attractive offer by Commerce. I urge strongly that you endeavor to

Chairman Eccles


secure him to carry on some of the work I have been doing. He
has a thorough grasp of the economic problem in yours and my
terms, has ideas, and can write simply and effectively. He has
an attractive personality and Dr. Goldenweiser has frequently
stated his desire to have him in the Division. He could fruitfully take my place on the technical staff of the Fiscal and
Monetary Mvisory Committee, as Dr. White would work closely
with him. j[l may as well be frank in saying that White dislikes
and distrusts Dr. Goldenweiser and refuses to take him into his
confidence in any way.J Despres is liked by Krost and Sweezy and
the three could work closely in covering the fields of taxation,
fiscal policy and recovery problems.
4* On particularly confidential material I should very
much like yoor authorization to refer directly to Krost and
Sweezy and, if you get him, Despres. In view of Dr. Goldenweiser1s
ill-concealed hostility you can readily understand ray reluctance
to route any very confidential material through him. If this
arrangement cannot be sanctioned I shall have to rely entirely
for my most important and confidential work on people in other
Government agencies in whose discretion I heve absolute trust.
As I expect, of course, to work closely with you it would be an
enormous advantage if you viould retain your direct contact with
my fonaer section.
I have to date referred one proposed plan on which I am
expected to advise to Dr. Goldenweiser for analysis and comments,
and received back one paragraph, written by a junior economist,
which is completely worthless for my purposes.