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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