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or THE


Jffice C o r r e s p o n d e n c e

Date—March a, 1944


Governor Szymczak

Subject; Report on "Recording and He-


Chairman Ecclea

.porting of Lend-Lease Transactions, etc."

The attached letter from Harold Smith, enclosing report, "Recording and
Reporting of Lend-Lease Transactions and Government Expenditures Abroad", and
memorandum from Mr. Knapp are self-explanatory,
I will appreciate it if you will follow this matter up and advise me
what comments, if any, we should make to Harold Smith*

Bureau of the Budget
Washington, D. C.


1(7 dear Mr. Eccles:
I am enclosing a copy of a report, "Recording and
Reporting of Lend-Lease Transactions and Government
Expenditures Abroad,n which has been prepared by an
Interdepartmental Committee and is being transmitted to
the Senate Appropriations Committee in compliance with
a request by Senator McKellar* I understand that the
Interdepartmental Coumittee had the cooperation of
members of your agency in the preparation of this report*
I believe that certain aspects of the report may be
of interest to you. May I ask you to have the recommendations included in the report examined with respect to
operations with which you are concerned. I would be glad
to know which of them you believe would be desirable and
feasible to adopt*
Very truly yours,

Honorable Marriner S. Eccles
Chairman, Board of Governors of the
Federal Reserve System



Honorable H«rold D.
Director, Bureau of tbe Budget,
D. C.
My dear ICr. faiths
In your l e t t e r of March 18, 1944» you enclosed e copy off e
report, "Recording and Reporting of Len3-Le&»e Transactions »nd Gov«rnxent Expenditures Abroad*, >rep&r6d by «B Interdepartmental Cometttee
for transmission to the Senate Appropriations Committee. I such . ppreei
e t e your thou,?fctfulness in sending me • copy of t h i s report nd I am
informed that i t r e f l e c t s I very high -^Jfellty of rorfcaenship. W ar«
v#ry d e f i n i t e l y interested i n seeing some &geney of the CrOTerment med«
for the reparation of coordinated reports on OTernm^nt
ing en internntioEtl ch^rtieter, Sueh informttion oul(J
be immencoiy helpful to UB in studying HM preeont and future
connected «rith iat« rn&tiomd KOBct ry &t.
and othur sheets of our foreign fineoci&l
hopeful that tbe Cosaitte©'s report w i l l b« acted upon
th&t any reports csospiled in t i c fera tu^feBted i s i i l be m&ide
to us ott i regular b^&is. In partieular, we nould hope that s t e t e of ^OTernaeBt tr^iis^ctionts ; i t h foreign countri<*6, &r^^n. according
t the o u t l i n e suggested on ?«ge 19 of the Coraaittee 1 e report, Ki-fat be
on & monthly or qu&rterly
% hare been much impressed by the greet cere and attention to
which i s manifested in tbe report nd here only one or t*o »uggt>Etione for further study *bich relate to additional MfetMNI not fully
covered by the report. I refer to two special typed of gorernfient
expenditures atbro&d, i . e . the disbursasent ci% occupetioa currency in
territories occupied by our armed forces, rnd the j&ale of u/,old by the
Ucitfcd States Treasury In tfce op?« mtirkete of r rlou» ©ountriee, notably
in the Middle £aat« I t ?ould uppear tbat foreign disbursements of these
two types find no place in the statement of goTermaent tr&ne etions &m
forjsalnted by the Cosaittee. They are nonetheless of considerable «tnd
growing importance and I b&lieve that %ht> Cocaaittee should give thorough
consideration to their iiielusion in tb«? terse of reference of the proposed
cestrtl clearinghouse,
Federal Reserve Bank of St. Louis

fery truly yours,
(Signed) M. S. Eccle*
Um S* S e c i e s ,