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Uay 27, 1955, j ear Senator: For your information I as enclosing a cc which I aaie on Saturday evening on the Btzrid It seeded to mfc that you aiight wish to have textual", statements which I Bade particularly with reference tion of the Open Market Committee ur.der Title II. As you will note, I sought to emphasize that, larayyi< j it is of paranount importance t. hav* ers a.s we possess in earring out monetary policy vesteo la • sontr Oil :?n whic responsibility will be definite! . 4+ . ., as you are aware, three siajor powers exiet, but their use is iapalr ffusion of authority and responsi ow that coat ahail be coneistvited seems I to important but not a primary consideration although, have expressed my own view, in tfestir fore the Senate a Coauaittees, triat it woulc be preferable to hav, 3oaru, as such, designated as the responsible agency, act , owever, only after consultation with an advisory committee of fii ors the Federal reserve banks. laftssucb as the principal controversy over the p. . has centered on the quest. w the controlling authority shall be constituted I thought that ay own viewpoint as expressed in this aecessarily somewhat brief re .on might be of interest, I am therefore taking the liberty of aeruing you this oopyf t plementing as It I "ay Sts>1 I before the J>enate and FTouse Co&Kittees, copies of which I previously : rwarde' . .>ectfully, . S. i-ccles, arable v.itec State-3 Sejotit Hashingtc , re. f«b atcher, (Same letter to all members of the Senate Banking and Currency Committee) Bonn rfo.'131 ^i /»f**" /^l FEDERAL FEDERAL RESERVE RESERVE " Uy7ce Correspondence mm rom Governor Eccles D0ARD Date nay Subject: Mr. Thurston If you approve I shall have the following letter drafted to accompany copies of your radio talk which I am sending to all members of the Senate Banking and Currency Committee: My dear Senator: For your information I am enclosing a copy of a radio talk which I made on Saturday evening on the Banking Bill of 1935. It seemed to me that you might wish to have textually the statements which I made particularly with reference to the composition of the Open Market Committee under Title II. As you will note, I sought to emphasize that, in my judgment, it is of paramount importance to have such powers as we possess in carrying out monetary policy vested in a controlling body on which responsibility will be definitely placed. At present, as you are aware, three major powers exist, but their use is impaired and complicated by the diffusion of authority and responsibility. How that controlling body shall be constituted seems to me to be a rnnifffiTriT'y consideration A although, of course, I have expressed my own view, in testimony before the Senate and House Committees, that it would be preferable to have the Federal Heserve Board, as such, designated as the responsible agency, acting, however, only after consultation with an advisory committee of five governors of the Federal Reserve banks. Inasmuch as the principle controversy over the pending bill has centered on the question of how the controlling authority shall be constituted I thought that my own viewpoint as expressed in this (J I'irrm N o . 181 ^ ---»<• r> ^ * ^ Qffcce C o r r e s p o n d e n c e i^ro _^ FEDERAL RESERVE K0ARD , Date Subject: From - 2 - necessarily somewhat brief radio discussion might be of interest, and I am therefore taking the liberty of sending you this copy, supplementing as it does my statements before the Senate and House Committees, copies of which I previously forwarded to you. Respectfully, [. S. Eccles, Governor.
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