The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
BOARD OF GDVERNDRS
OF THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To
***•• Secies
Date—M_^
Subject:
Mr. Carpenter
Attached is a copy of a letter dated May 4, 194-8, and its
enclosure, from Mr. Sproul with respect to a questionnaire which he
has received as a member of the Advisory Committee of a subcommittee
of the Hoover Committee which is studying the organization of the
executive branch of the Government. The letter will he placed on the
docket for consideration at the meeting of the Board on Tuesday, May 11,
and the staff is studying the material that might be assembled in response to Mr. Sproul!s request.
Attachment
C0 r i
Magr .**, i f
b€ J
fcnclased i s
• • .
fill—ill
r of t a e Advisor^ C-
caia^ittis-.; of Ine Hoover
:• .
;t«
;
MB i f t!
-
.
rtl
Ml t
tiwy>ili'« and 1 MM
llMf MQ
if 1
M^l of
I Ml ittTt
. rk.-iSOwa«it ftf t h '
^
I lM*t been -riv«j't
-
H
•
. : .
'
,
I cover-
• • in M/ •
I * aw
n#^a not confine tjMttMtaRMi to I
eor«r«d In the u m t l i w u t r t , tf cours*, as X wo^ld b* ^lad to M^vt t h e i r
tti on ot ; ;-r kSpcc
tr»« ^roblca,
T'ait m*f Ml »n opporturilt..,
« • ^oo<:
Ee««rr# System as M i l :^s for the •gMMt&w branch ol' UM
Lf
Aii'ui ftp]
Sproul,
Honorable Thosa^a B.
,
,
Bo&ra of Governors tf the Federal ,Eea«rv*
l*«hln*;ton, D. C,
FMWfl
c
0
I
A.
XL
. 1 -.-i,, yi-' Ni'U^Si. ••.
r.y^:?H
(1) Tke S«a.at«i 0HwL%t#t on *Tflhtnj MR4 Curr^c;/ has racotMMtndtci t h - t RFC be
raided by t.*- PtUtailttj *t
: s of lendi
|
"First, euch a c t i v i t i e s tha
priv
Mn ' t .
rrt*d cm in cospetiti«
"Second, xn deci;.: I
-r to |
.er 5 tinn shoula be tne intereat
lo.-.n, - ; •. f9
. public
•; •-
- v);'.; ,1 foorrot-
M
T?rirfi, antler
| conditions* UM ,-ctiviti £ anoiid r>£ condiicted go ai t ottriMltii«c sclf-muit^.inin^ liiaofay us i t i s
Are these Uv
• ;.-..Ar-.a for t
- rdi in T'
(,?) r^hat MPI UM
GkPVWHMttl .iendiivg other than
KFC?
(3) Aa
i©» of lo.*ns g
ju-itific-a frai
viewpoint of a CDssrpalXin^ neec. b&«cd u^on uubiic MMtMdty oi1 n s t i :
.i.
(1) Is i t destr
i,
isr.i Oovcrn-ncnt 1 witfix; -ctlv
corre-
lated *nd coridaet«d ir. iffiHrtlj »dih ai )flllf«fB policy r^lutci to tho
Gov«rnaierit*s r ublic debt nunag«unt policy, W* ,--oIici9* TmgfU
credit |p t;v. NnldMf fi«ld
or-rdit policies?
(2) Is i t dMlrabXi to wwtgn 1—dlag or i
ttx% Federrd Reserve System or do«« «uc
ten«iv& r^spansibiiit/ for Nfpiltll— wi I
>©n»ibilitie« to
rlt
coriiict MMI the ex'
lure?
(3) Is i t &t»ifmhl« to ooiingX^ lendlrj^ rt s^onsibiiitiea witn the r'-jj^onsi-
for MM constriction, owners;,!- imi
t in t
1 of
.ion of ph/«i--.
••;>-
(.'j) Is It cscsir .
. •>
l lending responsibilities sit
b i i i t i e a for Ml
-
MB%1 or | nvM ll
(5) I s i t i»(rtTlWt for MM Government to undertake l«idiru
gp<*.r>Mity a c t i v i t y witi", re:r,&ct I
(F-.
MJM 0MMW ^r^ f<sir^aers nould IM
Ml cl
' \iorro^arts,
would b i ftn t
.
.
(?) Should there be •
for th* •
i-4 c i ' ijQiB i M a u r j u ..•
H, credit «. •
fro^
§ V«Mr«AI -v-i Indi.*n«
. ff«TOT4 t
(6) HMNPI It Ul -osSiblc, i« I t m i f t f n W •
ae..
r loan
• ri&tur-*L t l M i if narrower.
ilftj •MM
consider
*et;
- .
;olicy r t
to sponsor *
.
.
. ._'
I
. i^
.
drect
tut* publication
r*
Govern >ent i^Mdiag *|{ttici#s?
(d) I s i t deeir«tbl«i for a l^v:.
c^ to own 0. '?• Gov<u
Ion*; as the Govem>a«nt tuppllea •
(9) I s i t d c a i r i b i e £vr UM I«n<
- i tubi
L 4af>unt of 11
to o i
T^Ivinr: fund
J:I iMMTKlis i t t o rs-eiaplo/ t a e f;..:
(At loAst one of MM present tjf«ft«4
.,i«» »o
fMM borrow*?i
Lr»d to &
.xl of i t *
collections into MM Trw^aur/,)
(!")) Should i)M landing &^enci*j», so Iflng -&• tiMQf h^ve MM us* of Govf*rnT«nit
WMJtali u^ ptqp&pi
obt&inin
.
I full coat incurred b j tne Gov::rn;nv I
itttlt
s:;ould UM lending %g«r,cit;s be
of a l l other .
by other Gov©raa«nt ag
?«&r t u e l r
full
licable to ti't«ir :.ctiviti-2s w:;ich ar* oorne
(1) I t ia consistent with our ;«n«r&l tppro&eh or QoveraMBft I
balances, t :
I
;:-'ci..il ty;-i- •>••* eeonoo&c function, euc.u M 1-
In; , MHUrtl
Lvt braMh of UM StWMMfct
Does such - c
•
d&r>f;er t o the bAslc lib«r^
(.:) v.Mcri i^ t n t pf«f«tmU.« i
.1 uOfear r<
Le?
•:
iM<t for Ll
a c t i v i t i e s of
til* fed«r~ii QiffWnMHMlti
( a ) I n i::t. <c-::
%'jXa.r
tt tiMgr •
QQV£TU:-;<XI\
-:C
t', - •.,:
- 'I^ation, IK
It desirable t^>
:ry
D«partn:jnt or ahouici t;ag.y be di rtrilotted i n v&rioue
• r s, atxc;
r i e u l t a r s , Co.-^aeres, « t € . i
( b) Oovv HMMM t Cor. >or -tlon
M sho^ia t ; u: i^nd-
If WgMltllfl <»© Bpr^SMNl cor;,<
itt# e *ctiviti«8 )M ?ui'iilr;isteraa throu^rU Pear ifOM&M)
©n« d*f«%iaf i t s entire attention I t ench of the four
awijor pur^o&«f©—MNtlgTi ^^ric^Iturrii., co,a-2erci-.-l>
MB«r»hip an-i foreign tr^de?
Is i t dsslr-.biv to introdac« purt~ti:n
bo&rdsr of itVMiWn tt ^hoala
fuU.-ti-3is, ^a -^
fc]
.dr^ctars be
NMHl OT
Hof* sno;ild MM ooar-i of air^ctora bo c.
would
tn^re b© argr adv'-crta^et of having appointr-ents MMli o l r t c t
by Congress &a well as by the Fresidtiit c
amr<eT of appointment of tJta ;jr«g#nt Cc^^desion i
ix&tion of th« Executive Branch of th«
i M*
Sho
Directors h-.iv© full responsi-
b i l i t y for tn*> aeifrction of top
ro ;>Yici:
(1} i s i t ;J».
.
tirit.l*2 8, i f conducted
cor^or^tlori^, should bo fro.^--} ,>f civi.1 service reatrictions tmd
(2) Is i t 4esirubl
-
QtffWnHMlrt l i w i i ..
subject to :.-. detailed Audit octroi
or Ul i NkMtrilfcl 1/
Corporation .
lalon, & soun;
as th I
roach?
orated b/ the
«nt
@FedFRASER