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F . R.
TO
5 1 1
^r
Chairman E c c l e s
REJ/1ARKS:
I just discussed the attached letter and
questionnaire, received from Senator Taft,
with you over the telephone.
In line with our conversation, I will appreciate your giving the matter your consideration and drafting a reply for my
signature.
CHAIRMAN'S OFFICE
WALTER F. GEORGE, GA., CHAIRMAN
DAVID I. WALSH, MASS.
ROBERT M. LAFOLLETTE, JR., W I 8 .
ALBEN W. BARKLEY, KY.
ARTHUR H. VANDENBERG, MICH.
TOM CONNALLY, TEX.
JAMES J. DAVIS, PA.
JOSIAH W. BAILEY, N. C.
JOHN A. DANAHER, CONN.
I&tniieb
BENNETT CHAMP CLARK, MO.
ROBERT A. TAFT, OHIO
HARRY FLOOD BYRD, VA.
JOHN THOMAS, IDAHO
PETER G. GERRY, R. 1.
HUGH BUTLER, NEBR.
JOSEPH F. GUFFEY, PA.
EUGENE D. MILLIKIN, COLO.
^uu.^rrr
nu
EDWIN C. JOHNSON, COLO.
OWEN BREWSTER, MAINE
COMMITTEE
UN
GEORGE L. RADCLIFFE, M D .
SCOTT W. LUCAS, ILL.
CHRISTIE B. KENNEDY, CLERK
August 23, 1944
Hon. Marriner S. Eccles, Chairman,
Federal Reserve System,
Federal Reserve Building,
Washington, D. G.
Dear Mr. Eccles:
Our special subcommittee on Housing is
making a study of the whole housing situation with a view
to legislation dealing with organized finances and general
policy.
I enclose herewith the questionnaire which
we have sent to many research organizations and other
interested groups, for the purpose of showing what line we
are following. I hope very much that you may at some time
give your views to the committee. Our meetings are somewhat
uncertain because of the election period, but if you are
willing to come, I will try to fix a date that is convenient
With kindest regards,
Sincerely yours,
1 enc.
September 8, 1944
Honorable Robert A, Taft
Chairman, Subcommittee on Housing
Post-^ar Committee
United States Senate
Wa sh in gt on, D. C.
Dear Senator Taft:
Thank you for your letter of august 23 and
for your invitation to me to appear before your committee.
I have been interested in housing and in public policy for the improvement of housing for many years,
and I am always glad to be able to contribute to discussion
of the subject.
Since 1 expect to be out of town the end of
this month and the beginning of next, and 1 v»ant to study
the issues raised by your questionnaire carefully, I doubt
that I shall be ready to present my views before the end
of October or early in November.
Very truly yours,
(Signed) M. S. Eccles
M. S. Eccles,
Chairman.
RVv: dme
irfr Odaoe
2 5 1944
•ttit
SUBJECTS TO aiS COuSJDSHBD oY T h S SUB COKilITTEIS ON HOUSING
AND U8BA2* Ll&»DEV3L0PIffiNT OF THE SEKATS POST WAR COMMITTEE
I.
The Uole of Residential Construction in the National
Economy
It Estimates of the annual volume of residential
construction since 1909 and of the effects on
the national economy of its fluctuations.
The Committee is interested in comments
on the volume of employment flowing
from residential construction, both
directly and indirectly, and the relationships between these and the remainder of the national economic picture.
»y. \
2» Fluctuations in residential rent3, prices of
residential real estate and cost of building
since 1320, v/ith indications of causes and effects *
It would probably be generally accepted
that there is a i-elEtionuhip betveen
re-nt3, prices of residential real estate
and costs of building and the volume
of construction. The Committee v;ould
be interested in any illuminating or
clarifying Material,
3. The over-all housing situation a3 of April, 1940.
In April, 1940, the first housing census
ever undertaken in this country v/as completed. The salient features of the
housing situation as revealed by this
census are commonly known* The Committoo
is interested in comments on the significance of the census material, its
usefulness and an interpretation of its
meaning in terms of the various groups
interested in housing and residential
construction.
4. Housing during the v:ar,
Under the stress of emergency and war conditions, both legislation and public participation in the creation, operations and
control of housing facilities has greatly
expanded.- The experience gained in this
period should be recorded and the objectives,
X
sec orsp 1 i ah rr.cn t s , ha na i c a ps a r? a i* Q va n ta ge s
loams:* c u r i n . : t h i s period would p r o vide tetsri'd for study ^nd discussion
by the Oor.rnittee.
5, TJie probable outlook Tor the post-war period
L-ue to the disruptions confronting the
residential construction industry and
the oporetion of rosidentic1 trroperties
curinc: tho war, tbo re-ostsbliahnsnt
of their place in the national eoonony
is e major concern of tho CoBifnittes* Any
suggestions to-srei this one; oulu bo
oapecially holpful. similarly f s dis«
cassion of tho incidence oi' those disruptions on the clifferont ffictora in
those industries v:oula fecilit'sto tho
examinst i on of pro pon a1a Tor ox pod i t ing
tho return of a reore normal Bitu&tion*
II.
c
X
^
recoral iiousin0 and horio Financing Legislation and the
/administration of Agencies "Isteblishdd thsroundor
1 . The o b j e c t i v e s of t h e aajor snaetnisnta
The Corimittso v/oulci Ilka t o have comment*
here on d i r e c t e d t o aach s p e c i f i c / . c t ,
%
2», Accomplishments under these onect^onta and
discernible trends they have sot in motion
3, Relationships bet' eon thase er.fectronts and
the a .encies established
•
These objective**, DCConpXishnonts and
relations should be stated ir, torn a of
th os e v;h i ch th e 1 a.: 2 s 1 e 11 on v s a expected
to "brin;; about, L'hQre may bo difference
of opinion with respect Lo the objectives
of the major i.ets, and this difference o.oes
not alva^s appear in the printed record.
The edniniatration of agencies ooteblished
by law nay be jud^cc; in tho 11- ht of the
principal objectives sou: hit in the lc.,u.
tion* Frecuently, provisions of a lav;f
../'
which at the timo of its onactnont
appeared incidental, assume much
significance in the operations
^, from the establishment of an
agency or the adoption of legislation
which is new in Intent or v/hich covers
an area of operation that previously has
not been a subject of Congressional action.
The legislation and the administrative interpretation" of both tho intent and meaning of Congress should be subjected to
examination, and comments thereon will
be appreciated,
•
III.
Specific questions of Congressional policy growing out
of the existin, situation
!• The disposition to be made of war housing
2. The organization of federal agencies dealing
with housing and ho:ne financing
Executive Order 7/-9070 of .February 24, 1942,
under authority of the first ar Powers
Act modified the set up of the rajor
federal housing and home financing agencies
established by legislation as independent
agencies* These .ere corbined in tho
•Jational Fousin;-, Agency, !_',y lav;, this
consolidation csases to exist six ^ontha
after tho termination of the cierrency
unless subsequent legislation is enacted*
There are, undoubtedly, both advantages
and disadvantages inherent In the consolidation. ..hethsr legislation making perr;anent this oonsolioatlon should be enacted,
and if so, the perm&nent X'orri which it
should take are important questions of
policy. Tho point of viov; of those
intimately concerned with housing a<K*
home financing .ould aid the Committo*
in recor ^ndinv-. this policy.
3, jodificetions in existing 1'ederal legislation
and the programs of the agencies established or
affected thereby$ desirable for the post-v.ar
period
(1) The i13d oral riome Loan Bank
oystem and its affiliated
aCiencies
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(2)
(3)
(4)
(5)
(a) The I'oaoral savings and
loan associations
(b) 'i'ho ?eder&l Livings and
Loan Insurance Corporation
Tho iiOwe Owners'1 Loan Corporation
The Federal Housing Administration
The i/ootsral Public Housing Authority,
successor to tho United states
Housing authority
Legislation affecting tho investment )
of national ban>s in home
4, Obstacles to more icioapread improvement in housing,
and ho\-; they can be minimized or removed
(1) Vhe disparity between cout3 of
occupancy ana faruily incomes
(2) The elements of the cost of occupancy
(a) Capital costs
1) La nd c os t s
2) •hiildlrr, costs
3) Public i; prove vents
4) Utility costs
(r>) Operating costs
(c) Upkeep end -laintensnce
1
(d) Fixed charges
(e) Profits
(3) 'i'ho scarcity of equity funds for housing
(4) I'hc intemittont character of consti'uction operations
( b) Arbit rary &nci ax*t i 1 ic la 1 res tricti ons
upon construction operations
(6) Local and federal ta^ structure
and rcchinery
5. Other appropriate :edcral - -assures
A number oi proposals have been made for Congressional action that would facilitate resi*dential conv^jtruction and the re-estEblishment of
a more normal situation in the area of concern
to this Committee* The Conmitioe is glad to
have these and any other proposals for its consideration* L very v;ioelv discussed subject is
that of the relationship of the federal government
to the general problem of urban re-developrent*
iilla sre now pending in both Houses of Congress
on this subject. It is one rhich is ir.tiratoly
related to the general problem of housing and
horrje l'insncing* Tho Committee will appreciate
comments on proposals in this area*
v
WALTER ft GEORGE, GA., CHAIRMAN
ALBUM W. BARKLEY,~KY;
CARL HAVDEN, ARIZi
JOSEPH C. O'MAHONEY, WYO.
CLAUDE PEPPER, FLAi
SCOTT M. LUCAS, ILL.
CHARLES l_i MCNARY, OREGi
ARTHUR H. VANDENBERG. MICH;
WARREN R. AUSTIN, VT;
ROBERT A. TAFT, OHIO;
SCOTT RUSSELL, COUNSEL
kittles -Scn«{«
SPECIAL COMMITTEE ON
POST-WAR ECONOMIC POLICY AND PLANNING
/
November 2 7 , 1944
.
Honorable Marriner Eccles, Chairman
Board of Governors
Federal Reserve Board
Washington, D. G,
Dear Mr. Eccles:
The Sub-Committee on Housing and Urban Redevelopment
of the Senate Post-Vrar Planning Committee will start
hearings on January.8th, aiming toward recommendations
to the Senate lor a comprehensive peacetime housing program
The principal subjects of interest to the Sub-Committee
at this time are the following:
(1)
Nature of the permanent federal administrative
organization of the housing agencies.
(2)
Disposal of war housing,
(3)
Problems of revival of the home building
industry, including relaxation of wartime
controls •
(4)
Hole of federal government in future
public housing.
(5)
Types and methods of private credit aids.
(6)
Relation of housing agencies to the
general credit policy of the government.
(7)
Effect of veterans' loans on the housing
picture.
(8)
Relation of rural housing and urban rehabilitation to the general housing program.
1
/
-2ffe would like very much to have you appear before the
Sub-Committee to express views on any or all of these
subjects, or with respect to any other phase of post-war
housing or urban redevelopment.
The hearings are scheduled from January 8 through January 23.
If you desire to accept this invitation, please notify
Mr. Robert B.Troutman, Jr., 102 Senate Office Building,
as soon as possible. Please also advise as to the approximate
amount of time which your presentation would require.
Sincerely yours,
Chairman of Sub-Committee
on Housing
December 6,
Honorable hobert Taft,
United States Senate,
Washington, D. C.
Dear Senator Taft:
Thank you for your letter of November 2?.
I should prefer to appear before your Committee after
the representatives of the agencies most directly concerned with housing h^ve presented their views — possibly on January 22, 1945.
I should like to discuss our "housing
problem11 and what the Federal government might do about
it. Presentation of my prepared testimony should not
take more than two hours, but I shall be glad to discuss
more fully any points which the Committee may desire to
pursue.
Sincerely yours,
(Signed) M. S. Eccles
M. S. Eccles,
Chairman.
i jv: dine
Copy sent to: hobert B. Troutman, Jr.,
LOk Senate Of lice Building
..
N0V2^
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p
Y
UNITED STATES SENATE
Special Committee on
Postwar Economic Policy and Planning
December 19, I9I4I4.
Mr. Um S. Eccles
Chairman
Board of Governors
Federal Reserve System
Washington, D. C.
Dear Mr, Eccles:
Senator Taft has forwarded to me your letter
to him dated December 6. He is pleased that you have
accepted the Committee's invitation to appear during
the January hearings.
If it is convenient, the Committee would like
to meet with you on the morning of January 17« Please
notify me as soon as possible if this date is satisfactory.
Yours very truly,
(Signed)
Robert B. Troutman, Jr,
.
December
Mr. iiooert b. Troutman, J r . ,
United s t a t e s oen^te,
Special Conduit tee on r)o-tv»ar
Economic Policy and Planning,
Washington ^5? D. G.
Dear Mr. Trout man:
in trie course of d telephone conversation
today with Mr. Secies, wao is in Utah to ue with his
family at Christmas, I mentioned your letter of
December 19 in which you suggest that he meet v\dtn
the Committee on the morning of January 17, if convenient.
He asked me to say that if you felt it
necessary to arrange the schedule for your hearings
in advance,' you permit him to oe set down tentatively
for that date, but preferably for a later date if the
hearings are to continue beyond that time, i think
he had previously indicated that he would like to appear- as close to the end of the hearings as possible
and that his appearance is necessarily contingent upon
a number of circumstances that cannot be foretold with
certainty at this particular time. ±nis is an especially
crowded period ^nd tnere is not mucn time for the preparation of the material that he would like to present.
ttr. Eccles asked me to thank you for your
courtesy.
Sincerely yours,
Elliott Xhurston,
Special i.ssistuiit to the Chairman.
kn, J ^ . 2 .
G.(
{WALTER F. GEORGE, GA., CHAIRMAN
SEN W i B A W K L E Y , ~ K Y . I
RL HAYDEN, ARIZj
SEPH C. O'MAHONEY, WYO.
CLAUDE PEPPER, FLA;
SCOTT M . LUCAS, ILL.
CHARLES L. MCNARY, OREG.
ARTHUR H. VANDENBERG, MICH.
WARREN R. AUSTIN, V T l
ROBERT A. T A F T , OHIO*
tteb &icAa& Senate
SCOTT RUSSELL, COUNSEL
SPECIAL COMMITTEE ON
POST-WAR ECONOMIC POLICY AND PLANNING
January 2, 1944
Mr. E l l i o t t Thurston
Special Assistant to the Chairman
Board of Governors of the
Federal Reserve System
Washington 25, D. C.
Dear Mr. Thurston:
Thank you very much for your l e t t e r of
December 22. Delay in answering i t i s due to t he
fact that our schedule has not been completely
arranged until today.
The hearings will begin January 9 and end
Jama ry 19, and in compliance with Mr. Eccles' r e quest we have arranged for him to appear the l a t t e r
part of that period. If he can do so on January
17, i t will enable us to better conform with a logical sequence of subject matter. Therefore, in accordance with your l e t t e r , we are arranging for his
appearance on the morning of January 17.
Further, the hearings will take place in
the Senate Office Building, but as yet no specific
room ha 3 been assigned.
Senator Taf t f s office can
provide Mr. Eccles with this information upon his
arrival•
Sincerely yours,
Robert
n u u s r u E.
is . Troutmai
lruuomai ,
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