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June 25, 19k3
Dear Marriner:
As you know, we have been going over the draft of the
Executive Order "Regulation of Credit Under National Stabilization
Program". At the one meeting which we had in the Office of the Director of Economic Stabilization I stated that I knew that the
Board did not have any such thing in mind, but we wanted to make
sure that in exercising the powers conferred by this Order they
would not in any way interfere with the Treasury in the exercise of
its fiscal functions. We suggested at that time that they might
want to add a sentence at the end of Section 1 along the following
"None of the powers vested by this Order shall be
exercised by the Board in a way that will interfere
with the Treasury Department in the exercise of its
functions with respect to the public revenues, borrowings, credits, taxation and finance.11
This was readily accepted by the group, including your representatives.
In further considering the matter the question has been
raised as to why this Order should not follow the lines of Executive
Order No. 881+3, pursuant to which your Board regulates consumer
credit by setting up a committee on which the various interested
agencies are represented. I talked this over with Ronald Ransom
who gave me various reasons why you did not want to set up such a
committee. I think we can appreciate those reasons, but I should
like to agree upon an informal arrangement between the Board and
the Treasury in view of our interest in the whole subject and the
fact that at almost every point your regulations are liable to
touch some function of the Treasury in its operations. I suggest
that the technical staff of the Treasury be permitted to work on
the proposed regulations with your technical staff and that we
also be consulted from time to time in their operations. I think
if this arrangement could be agreed to there would be no necessity
for the committee that has been suggested.
Very truly yours,
(Signed) D. W. Bell.
Honorable Marriner S. Eccles
Chairman, Board of Governors
Federal Reserve System
Washington, D. C«


July 15, 1943.

Dear Dan:
This is in response to your letter of June 25, 1945, concerning the tentative Executive Order, "Regulation of Credit Under
National Stabilization Program".
If the Order should be issued, the Board and its staff
would wish to keep in close touch with the Treasury on any points
where regulations under the Order would touch functions of the
Treasury and its operations. I think this is evident from the
ready acceptance of the suggestion made by the Treasury at the meeting in the office of the Director of Economic Stabilization. However, when the matter of an order was first broached to me, I stated,
and I think you will agree, that, because of the difficulty of administering an order of such breadth, there would have to be some
freedom of action subject, of course, to the overall control of the
Director of Economic Stabilization as contemplated in the Executive
Order which created that office. Accordingly, if the Order is issued, I doubt if it would be practicable for the technical staff of
all of the agencies which might be affected to work on the regulations with our staff, slthough the Board, of course, would expect
its staff to consult with the staff of any agency whose functions
would be affected by a proposed regulation. Furthermore, I am sure
that satisfactory liaison could be established and maintained with
the Treasury without unnecessarily burdening your technical staff
with work on all regulations. Within these limitations I am sure
we can set up an entirely satisfactory working arrangement and you
have my assurances that we would do so.
Sincerely yours,
(signed) M. S. Eccles

Honorable D. W. Bell,
Under Secretary of the Treasury,
Washington, D. C.