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BDARD DF G D V E R N • R S
• F THE

FEDERAL

RESERVE

SYSTEM

wrhce Correspondence
To
From




Chairman Eccles

Date
Subject;

February 9, 1958,

The Ezekiel group meeting
February 8th,

Additional members present included Mr. Tolley and Mr. Niles
of W. P. A. 3&ere was general regret that you could not be present.
New points that were developed that might be of interest to
you were as follows:
1. Jerome Frank expressed himself strongly on the need for
making provision for the handling of an emergency credit situation
should things get worse. The R. F. C. could probably handle this
but they would have to have authorization. He spoke warningly of
the danger of some big crack-ups. (He asked me privately to pass
along the name of James Touhey to you as somebody who would be just
the man to deal with the situation on the west coast if it should
develop).
2. Bob La Follette expressed very vigorous opposition to the
toll road idea on the grounds that it would be slow in getting
started and would lead to an awful lot of graft and political racketeering before we got through with it.
3. I suggested moving the provision of capital funds for
small businesses from the category of recovery measures to longerterm measures, and this was concurred in.
4. In connection with longer-range proposals there was general condemnation of Richbergfs H. R. A. ideas. There appeared to
be general agreement on the need for a fact-finding agency in developing information that would aid business in planning programs for
expansion, etc.
5. There was some disagreement as to next steps. All felt
that a program should be worked up iismediately, but while some felt
that it should be got to the President in some way very soon others,
including Mr. Tolley, felt that it should be held back until business
got much worse and the prospects for a rise were much less good.
No decision was taken on this, but Ezekiel undertook to work up a
program immediately with other members of the Industrial Committee
of the National Resources Comaittee.

-2-

I didn't mention t i railway proposals* In this connection
le
I would remind you that you mentioned to me the other day as
our luncheon meeting was breaking up that you had some further
suggestions on the subject before I sent any memorandum to Mr.
Eastman*
Dr* Burns is now working up a list of possible suggestions
in connection with the Social Security Act, which I expect to
receive tomorrow*