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BOARD OF GOVERNORS FEDERAL Office C o r r e s p o n d e n c e Chairman Eccles "gtom RESERVE SYSTEM Date finhjftr.t; October ^ iag Bill ttto~aid in the stabilization of construction11. S.llili9 introduced by Senator Murray Ramsay Wood X am attaching a suggested reply to Senator Murray* s letters of October 8 and October 11 in -which he asks for your comments on S»l/j)i9« you commented on an earlier In a letter of September version of this bill, and made some suggestions for changes. The bill in its present form takes account of most of these comments and suggestions. It seems to be a much better bill, although it is still not coordinated with the Pull Employment Bill, S#380, and it is possible that, if S.J80 is passed, a measure like S.l/i?i9 inay be needed. Ihe present bill provides for three groups: a Construction Policy Board which shall advise Congress and the President quarterly whether steps should be taken to increase or decrease the total amount of construction; a Public Works Stabilization Committee, 'which shall advise the President on how to stabilize Federal and Federallyaided construction and promote cooperation among State, local, and Federal construction agencies; and a Construction Industry Advisory Committee -yfoich shall advise *the Construction Policy Board and the Public Works Stabilization Committee, and obtain as much coordination as possible of public and private construction* Federal construction agencies are directed to prepare programs of construction for six years in advance, and a fund of #150,000,000 is set up to be loaned free of interest to public agencies for the planning of projects. Money advanced from this fund is to be paid back when the projects are completed. In statements which accompany the bill, Senator'Murray makes it clear that the Construction Policy Board has no administrative duties, and -that -ftie President and the Public Works Stabilization Committee have the power only to modify the timing of construction approved by Congress. Senator Murray also makes it clear that "construction should not be considered a 'make-work1 activity providing emergency outlets for public expenditures vixen business is depressed." Attachment /CuJ Hovember 6, 19b5« Honorable Jeraos £# Murray, tKltod states Washington* D*C» Dear Senator Murray* X h&ire ro&d the bill* t&ich you oncloaod with your letters of Qetober 8 and October 11* Although I && still of the opinion that this bill duplicates in part Y&at trcrnld bo achieved by tho Full Eaplojwnt Bill, S*$S09 I should h a w m objection to its onaotanent. Sincerely* M« Eccloa, Chainsaa J A M E S E. M U R R A T , M O N T . , W I A I K W W A L L E N J . ELLEMLDERT, LA. ARTHUR CAPPER, KANS, JAMES M . ME/ N . Y. GEORGE A. WILSON, IOWA T O M STEWARD , VENN. KENNETH S. W H E R R Y , NEBR. CLAUDE PEPPER, F L A . C. DOUGLASS BUCK, D E L . JAMES G. SCRUGHAM, NEV. THOMAS C. H A R T , CONN. BR I E N M C M A H O N , CONN. ^ICtiHcb &enctie DEWEY A N D E R S d N , EXECUTIVE SECRETARY Special Committee to Study Problems of American Small Business October 19, 1945 Marriner S* Eccles, Chaiman, Federal Reserve System, 20th & Constitution Ave., fl.W., Washington, D.C* Dear Mr* Eccles: We are now preparing to resume the hearings on construction which were interrupted by the summer recess of The Congress* This letter has a double purpose: First, to remind you of your very generous response to the invitation of this Committee to aid it by appearing at a hearing; and second, to say that the hearing at which the Conmittee will be happy to have you express your views is scheduled for October 30, 1945 at 10 A.M* in the Senate Office Building* I shall have to give you the room number at a later date* It seems desirable now to broaden the scope of the testimony on the "Flow of Credit Into Construction" to include an examination of the value and utility to the credit institutions of adequate knowledge of the market for construction* We shall be glad to have you explore the possibility and desirability of federal and state aid in unifying or coordinating the policies of credit institutions which lend money for construction* The thought here reflected is that effective use of trustworthy, adequate information on the; markets for construction may call for multilateral aotions by groups of lending institutions with the aid and cooperation of government* JAMES E. MURRAY, MOKT., CHAIRMAN A L L E N J . ELLEHJDFVR, L A . A R T H U R CAPPER, K A N S . J A M E S M . M E A T ^ N . Y. GEORGE A* W I L S O N , IOWA TOM STEWART. -ENN. K E N N E T H S . W H E R R Y , NEBR. CLAUDE PEPPER, FLA. C. DOUGLASS BUCK, D E L . JAMES G. SCRUGHAM, NEV. T H O M A S C. H A R T , CONN. B R I E N M C M A H O N , CONN. ^ C r t H e b tidies J£>enaie D E W E Y A N D E R S O N , E X E C U T I V E SECRETARY Special Committee to Study Problems of American Small Business October 26, 1945 Marriner S. Socles, Chairman, Federal Reserve System, 20th and Constitution Ave., N.W., Washington, D # C. Dear Mr# Eccles* The telephone call which 1 made to you on October 23rd announcing a postponement of the hearings on "The Plow of Credit Into Construction*1 scheduled for October 30th and 31st, was made necessary by the inability of three of the witnesses to appear on the dates set. As soon as new dates for the hearings can be fixed, I will advise you* Thank you for your continuing interest.