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Form F.<R. 131
BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

Date December 30, 1956
lo ... .__Jb\i_Eccles

Subject: Stewart McDonald

^ J>M« Daiger
G P 0

The call which you received from Mr. McDonald on
Monday, asking you to have luncheon with him today, was not
of my prompting, though I have spent a good deal of time with
him since Monday of last week* I therefore asked Miss Egbert
to tell you, when she spoke to me yesterday about the call,
that I thought it would be much better if I were left out in
case you confirmed the engagement with McDonald*
In a memorandum to you which I dictated yesterday
on some personal matters, but which you will not yet have
read, I expressed the opinion that, where the factors involved are not political, your influence will carry more
weight with McDonald during the next few weeks than anyonefs
else* It is also my opinion, however, that you and McDonald
have never warmed up to each other, and that McDonald feels
this.
You will recall my telling you that I had heard
from two quite different sources a couple of months ago that
there was a story current about town to the effect that you
had changed your mind completely about the housing matters
which were under discussion during the first half of this
year, and had gone over completely to Mr. Faheyfs side of
the controversy. Coupled with this story was the report
that you ^did not think much of Stewart McDonald," whereas
you were on most cordial and intimate terms with Mr, Fahey.
McDonald knows from his conversations with me, and
more particularly from the stand you took at the recent
Treasury meeting, that the former part of the story is
groundless. Nevertheless, as to the latter part of the
story, I think that in the pressure of other matters you
have given the appearance of treating McDonald pretty
casually. Mr. Jones, on the other hand, is on very close
terms with him.
I think that McDonald has wanted very much to
get a session alone with you for some time in order that
both of you could talk quite freely and without interruption.




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He is now as fall of ideas as an egg is full of meat, and
he is eager to talk with you about thesu Some of the ideas
you will recognize as your own, others as mine, and some you
will not know the father of. But McDonald will deck them
all out in striking figtires of speech and sell them to you
if he can.
I am myself very fond of him, including his weakness
(which is not an uncoiamon one) of forgetting from one day to
the next where his ideas come from, or of changing them around
so that they occasionally become almost unrecognizable to the
persons who prompted them.