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LUNCHEON WITH PRESIDENT ROOSEVELT - July 29. 1 9 U 1. I left with the President, to take up with Smith, the memorandum re Annex; it will be O.K. with the President if Smith will clear. Will wait to hear from Smith. 2. Discussed Evans and Wilson for membership on Board. Either one agreeable with President if can clear with Wickard. I also suggested be cleared with Wallace. 3. Discussed with President quite thoroughly the Executive Order, which he read and kept. 4. President said he was appointing this week a committee, with Wallace as chairman, on Foreign Economic Problems. Thought such a committee as I proposed should be appointed to cover domestic situation and would do that a week or so after other committee was appointed. 5. I discussed briefly with President the need of legislation giving Board powers to deal with the excess reserve problem, and he did not object to such legislation being proposed to have Congress discuss issues. I advised him we would not ask him to sponsor such legislation. 6. I talked briefly to the President about consumer credit control dealing with housing from a credit standpoint. 7. I also mentioned to the President the need of increasing social security taxes as well as coverage and benefits as a deflationary factor at this time. July 29, MKMQRANDUM FOR CHAIRMAN ECCLESs I understand that plans and specifications have been completed for the Federal Reserve Building addition which you and I have discussed several tines but that, unless there is some assurance that it would be used for housing the other bank supervisory agencies of the Government, your Board questions whether it should proceed with the construction at this tine and desires my advice* Regardless of the question of consolidation of these agencies, it is obvious that their work could be carried on to greater advantage If they were located in the same buildings* This would also be a convenience for the public* Tour addition, together with such offices as you could make available in your present building, would accomplish these desirable purposes* The addition would not require any appropriation by Congress* It would release office space in the Treasury and elsewhere that Is urgently needed for other purposes* X think you would be Justified in going ahead without delay, and accordingly I will recommend that the other banking agencies occupy these quarters instead of constructing or leasing other space* GOVERNMENT SECURITY YIELDS, EXCESS RESERVES, AND BANK DEPOSITS MONTHLY AVERAGES OF DAILY FIGURES PER CENT PER CENT 4 4 LONG TERM TREASURY BONDS 0 BILLIONS OF DOLLARS BILLIONS OF DOLLARS 8 8 \ 6 \ [ i 4 EXCESS RESERVES / 2 0j 0 \ f * BORROWED RESERVES (INVERTED SCALE) 2 _ I _ _, CALL REPORT DATES BILLIONS OF DOLLARS BILLIONS OF DOLLARS 50 50 40 40 ADJUS1rED DEMA ND DEPOS TS AND CURF?ENCY ^ * 30 30 20 20 10 ^^mm 1933 1934 1935 1936 1937 1938 1939 1940 f94l 10 COMMODITY PRICES AUGUST 1939= 100 PER CENT PER CENT 170 170 160 160 150 150 / 140 140 28 BASIC COMMODITIES J / 130 \ 120 130 120 r 110 110 100 100 90 90 130 130 120 9 0 0 COMMODITIES 110 100 — - / y — 120 110 100 90 90 120 120 I 10 110 COST OF LIVING 100 100 90 90 1939 ESTIMATES FOR JULY. 1940 1941 FEDERAL RESERVE DEMAND DEPOSITS AND CURRENCY JUNE 3 0 , 1911-1928; CALL REPORT BILLIONS OF DOLLARS 50 I I I II DATES AFTER JUNE 3 0 , 1 9 2 8 BILLIONS OF DOLLARS I I I I I I I I I I I I I I I I I I I I I I I I I I I 50 40 40 30 30 20 20 10 10 1912 '14 '16 '18 '20 '22 '24 '26 '28 '30 '32 INCLUDES ADJUSTED DEMAND DEPOSITS, GOVERNMENT DEPOSITS, AND CURRENCY OUTSIDE BANKS. '34 '36 '38 '40 PRICES OF 4 0 BASIC COMMODITIES PRESENT WAR, WORLD WAR, PER CENT JAN.-JUL. 1939=100 JAN.-JUL. 1914 = 100 PER CENT 280 280 A J\ - 1 260 - 1 fr 240 - 1 260 - \ i 240 f A 220 A /A V /V - 200 1 1 1 1 1 1 - 180 I WHPI n • WUrvLlJ A/ - UfAD - 180 • WArv t I 1 i I i i \ l I I I 140 200 i i i i i 160 - - i f I - 220 i i i i i i 160 \ 140 I I - 120 PRESENT WAR 120 J - 100 100 - 80 80 1939 1914 1940 1915 1941 1916 1942 1917 FEDERAL RESERVE INDEXES BASED ON DATA COMPILED BY J3ENERALJVIDTDRS ^CORPORATION AND_CORNELL UNIVERSITY. ESTIMATE FOR JULY. 1943 1918 1944 1919 1945 1920 1946 1921 EXECUTIVE ORDER ESTABLISHING THE ADVISORY MOKKTARY AND FISCAL COMMITTEE By virtue of the authority rested in me by the Constitution and the Statutes, and in order to define further the functions and duties of the Offioe for Emergency Management with respect to the national emergency as declared by the President on May 27, 1*1» it is hereby orderedJ 1* There shall be in the Offioe for Emergency Management of the Executive Offioe of the President an office to be known as the Advisory Monetary and Fiscal Committee which shall consist of (1} the Vice President, who will be the Chairman of the Consaittee, (2) the Secretary of the Treasury, (3) the Chairman of the National Resources Planning Board, (U) the Director of the Budget, (5) the Federal Loan Administrator, (6) the Chairman of the Board of Governors of the Federal Reserve System, and (7) the Administrator of the Office of Price Administration and Civilian Supply. An Administrative Assistant to the President, named by the President, shall be Secretary to the Committee. 2, It shall be the duty of the Committee generally to co- ordinate the monetary, credit, and fiscal policies of the Government and to formulate and recommend to the President comprehensive monetary, credit, and fiscal programs integrated with the programs for national defense and civilian supply, the full and continuous use of rational resources in the defense and post-defense periods, and the avoidance of price distortions and inflation from monetary, credit and fiscal causes* This Order shall take effect on The White House , 1*1. , 1*1* EVANS, RUDOLPH MARTIN, adminstr. A.A.A.; b. Cedar Rapids, la., Nov. ii, 1890; s. Martin and Margaret (Ganshorn) E.; B.S. in Civil Engring., la. State Coll., 1913; m« Thurma Margeurite Allen, Apr. 15, 1919* children—Lenore Margeurite, NancyLee. Farmer and livestock raiser, Laurens, la., 1921-36; adminstr. A.A.A. since 1938* dir. Laurens Farm Co.; dir. Federal Surplus Commodities Corpn., Commodity Credit Corpn., Federal Crop Ins. Corpn. Served with Il6th Engrs., U. S. Army, with A.E.F., 1918-19* Mem. Kappa Sigma. Democrat. Episcopalian. Mason. Home: 3109 Cameron Mills Road, Beverly Hills, Alexandria, Va. Office: Dept. of Agriculture, Washington, D. C. Chester Davis writes as to Evans: "He is fine in every respect; welltrained, cooperative, intelligent; makes a good appearance and a good speech; has the confidence of farmers generally. In my opinion he would work into a very useful place on the Board. He is not a 'jarring1 personality; in general, he would be a peacemaker on the Board. Back of this, is the fact that he has been interested in farm financing, and the Fed. Res. System, and has been a business-like farm operator* Personally, I should be very happy to see him on the Board.11 April 84, 1941, To - The President From - Ch&ir&an Iccle receiving your memorandum of April 18, I have civen a good aeal of thought to the situation resulting from Chester DaTls* leaving the Board. I fully understand the position in which it places you because of your- responsibility forft&klBgappoint-.'er.tr to the Board and I greatly appreciate your attitude BOW,ftflheretofore, in g&Ti&g : e as opportunity to i advise with you. Aeeordlagly, I v.!ould like to suggest that you consider M. L. Wilson, Under secretary of Agriculture from 1 " - to 1940, and since then, 9:? Director of Extension of the Department of agriculture. He has held important agricultural pocta in your Administration continuously since 19" . Ht is exceptionally well qualified by experience and training and has excellent standing with the agricultural groups generally throughout the country. I attach a brief biography of hinu Hie appointment could be made either from the llontana District or from Washington. If you look favorably upon him and v;ould let M know, possibly by phone, I can cneck as to his availability and have the necessary data prepared for making out the appointment papers, or if you -;ould like to have me suggest other names, I can do so immediately. As you are ar;are, there has been a good deal of pressure for . G. Black, but I have reason to believe that thla is more to get him out of his present position, inhere I understand he is unpopular both with the agricultural community as vrell as with the Farm Credit administration, than it is to have him represent agriculture in the Peaerve Syat«B* He is about the last man ivhom the agricultural interests would propose for this place. I understand fxtm those who know him wttll that he is an extremely difficult person to vrork with. His selection would be very disappointing to me. nenvj Morgenthau kBOWB both Kilson £ n BSLaelC, and I believe that ^d he feels abo\rt as 1 do regarding them. Attachment rb : , . ILi-HL'. i I .COLi:, Director of Intension, U.£, Dept.'A^ri.; : b. at Atlantic, la., Oct. 25, 1885; s. John :;"esley and Mary X. (Magee) !•; B*SJU, Iowa State College, ijaes, la., 1907; B»S*, Univ. of Vl**, 1920; hoxu D.Se., Montana State College, 1955. Began as farmer, 1907; asst. agronomist, Mont. State Coll*, 1910-12, extension agri. economist, 1922-24, prof, and head dept. of agrl, economics since 1926; county agent, Caster County, Mont., 19X3; state extension agent leader, 1914-22; in charge dlT« farm aianagetsent and cost accounting, tub. Dept. Agr., 1924-2G; ragr» Fairway farms Corpn. (an endowd researca orgn*}« Chief Wheat Mjustsent 3-ection, A-;*rl, Adjuft^BMmt Adalnstrn*, U#c. I)ept» of Agr», May l - - . e t 1, 1933; &lr. DlY« of Subsistence G..,p, Hoiteeteads, U*S, Dept. Interior, tept. 1, 1933~Jm« .'0, 1934] asst, sec, of Agr«, 19?4~'37; under secretary of agr*t 1957—40; dir, of extension, U,G. Dept. . e - » £ince 1940« Chairman sttb-. ^ j eom» in support of voluntary domestic allotment plan,T . - . !,. Chasber of Commerce, 19'1- i . Men • Aft« Eeott* Aaec, i-grl. History Soc, (pres. 19::8), Am. County Life AftKU (pretj. 19S6), A.A.A.S., Am. Farm Economic A M * (pres, 1925), Epsilon Sigma Phi, Phi Kappa Phi, Alfita 5^eta. Unitarian. Club: Cooaos. ioitlior: Farm Relief &nd the Domestic Allotment Plan, 1933; Democracy Has Roots, 1939* Joint Author: Agriculture in Modern Life. Home: 14 .Rosemary St., Chevy Chase, Md. Address: U. S« Dept. of Agriculture, Washington, D« C. THE WHITE HOUSE WASHINGTON April 18, 1941 PERSONAL & CONFIDENTIAL MEMORANDUM FOR HON. MARRINER S. SOCLES I am a good deal troubled by the fact that Section 10 of the Federal Reserve Act says that the President In selecting the FRB shall "have due regard to a fair representation of the financial, agricultural, industrial and commercial interests and geographical divisions of the country11. I take it that it can be properly said that you and Rensome represent, in a sense, finance; that Szymczak represents commerce and that McKee and Draper represent industry. This leaves agriculture with no representation and this means that three out of the.four interests mentioned are represented by the present five members but that the fourth interest mentioned is not so represented. You will see my embarrassment. Insofar as the agricultural divisions of the country are concerned, I am not worried because the present five members represent Utah, Georgia, Illinois, Ohio and Connecticut. What do you think? F. D. R. July 9, 19U1 To: Chairman Eccles From: Mr. jpreibelbis Attached are two bills, either of which would extend the period until January 21, 19U3 during which a reorganization under the Reorganization Act of 1939 could take effect. The short form would extend the period without eliminating any of the exempted agencies. The long form would extend the period and would eliminate the agencies originally exempted in section 30 3 ) of the Act. This would be done by amending section 3 so as to eliminate the present subsection (b) in which the exempted agencies are enumerated and relettering the succeeding subsections. For your information, I have marked the eliminated section 3(b) in the attached copy of the Act. Attachments A BILL To extend the period during which a reorganization under the Reorganization Act of 1939 shall take effect Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That Section 12 of the Act of Congress approved April 3, 1939, knoTOi as the Reorganization Act of 1939» is hereby amended by striking out "January 21, 19i|lft and inserting in lieu thereof "January 21, 191+3". 7/W A BILL To extend the period during which a reorganization under the Reorganization Act of 1939 shall take effect, and for other purposes* Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That Section 3 of the Act of Congress approved April 3» 1939 known as the Reorganization Act of 1939 is hereby amended to read as follows: "See. 3» No reorganization plan under section h shall provide (a) For the abolition or transfer of an executive department or all the functions thereof or for the establishment of any newexecutive department; (b) For changing the name of any executive department or the title of its head, or for designating any agency as 'Department* or its head as 'Secretary1; or (c) For the continuation of any agency beyond the period authorized by law for the existence of such agency; or (d) For the continuation of any function of any agency beyond the period authorized by law for the exercise of such function; or (e) For authorizing any agency to exercise any function which is not expressly authorized by law,11 Sec, 2. Section 12 of the Reorganization Act of 1939 is hereby amended to read as follows: "Sec. 1£, No reorganization specified in a reorganization plan shall take effect unless the plan is transmitted to the Congress before January 21, 7/9Al