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Fo-rm F . R .

511

TO ___________
FROM

REMARKS:
December 19, 1941
Chairman Eccles talked to the President
about these matters today while at the
V/hite House.

CHAIRMANfS OFFICE



BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Leo Crowley is Chairman & rresident of Stanaard
Gas & Electric w>.
It pperates in r Q states,including jc&.,Cal.,Okla.,
^
Ore.Ky. ,Ind., * a sh. Idaho,ft^o.,Minn., iis» ,111.,
»
la*,Mich.,Col. Serving population estimated 8t
6,800,000. Serves 166^ coimuunities—1548
electricity}£49 gas,10 steam,17 transportation}
7 phone }1^ t
^

1940 balance sheet carries property ,plant and
equipment at ^574,000,000, total assets at
v697,000,000
87 millions of preferred
£1 "
" Qommon
Bonded debt aroundSOO millions




BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

COffice Correspondence
TO

n^fllrmfln "Ffoftififi

Date
Sllhject!

December 181 IQlil

"Re nrgfl/nl station of* 'Rfl/nTr Super

visory Agencies under First

Pursuant to your request, I have studied the reorganization powers
granted to the President by the First War Powers Act, l^l^l, as passed by both
Houses of Congress; and, in my opinion, a complete consolidation of the bank
supervisory agencies could be effected thereunder•
The Act gives the President broad authority wto make such redistribution of functions among executive agencies as he may deem necessary, * * *
to consolidate any executive or administrative commissions, bureaus, agencies,
governmental corporations, offices or officers11, and to transfer duties, powers,
personnel, records, property and appropriations from one such agency to another.
Under it the President could transfer all of the bank supervisory functions of
the Treasury, the Comptroller, the F.D.I.C, and the R«F*C* to the Board.
Six months after the termination of the war, the reorganization
powers granted by this Act will expire and all powers, functions, etc., will
revert back to where they were before the war; but this is not an insuperable
difficulty. It is believed that, if the consolidation is once put into effect, its efficiency will be clearly demonstrated, departmental jealousies
will disappear, and it would be relatively easy to obtain an Act of Congress
ratifying the consolidation and making it permanent.
It would be necessary to relate the reorganization to ffthe conduct
of the present war"; but this would be easy.
There is a provision that no "bureau" shall be abolished entirely
except by Act of Congress; but it is believed that this would cause no practical difficulty. A bureau could be kept in existence to exercise only relatively unimportant powers, such as the currency functions of the Comptrollers
Office, Incidentally, this restriction apparently applies only to "bureaus"
and not to government corporations such as the F.D^I.C.




Respectfully

Walter Wyatt?;
General Counsel.