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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.