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COPY TREASURY DEPARTMENT WASHINGTON Memorandum: April 14, 1939 To: Mr. Marriner S. Eccles, Chairman, Board of Governors, Federal Reserve System. From: Mr. E. S. Duffield, Assistant to the Secretary, Treasury Department. In sccordance with the Secretary's instructions at the close of the meeting on April 13, I am sending you this proposed report by the Treasury Department on the Brovm Bill. Will you please let me have your comments as soon as possible. (Signed) Enclosure E. S. Duffield C O P Y My dear Mr. Chairman: In reply to your request of April 4, 1939 for a report on S. 2045, a bill which would trensfer the Comptroller of the Currency and cert tin of his duties to the Federal Deposit Insurance Corporation, I should, like to state that the Department, barring unforeseen developments, does not wish to recommend this or any other banking legislation for enactment at this session of Congress. Moreover, everything the bill seeks to accomplish with reference to the Treasury Department can be achieved by the President and Congress under the Reorganization Act, if it is deemed advisable, without the enactment of additional legislation. Very truly yours, Secretary of the Treasury. The Honorable Robert ^. Wagner, Chairman, Senate Banking and Currency Committee, United States Senate, Washington, D. C. 4/14/39 COPY To: Members of the Board From: Governor Ransom April 18, 1959 1:45 P.M. S. 2045 (Brown Bill) I have just been advised by Mr. Duffield of the Treasury that the proposed report on S. 2045 (Brov.n Bill) has now been cleared by all agencies represented on the Interdepartmental Committee except the Board. They are waiting now for a reply to their recent request for an expression of opinion from us. w*-~v BOARD DF GDVERNDRB DFTHE A p r i l K , 19S9 FEDERAL RESERVE SYSTEM WASHINGTON Mr. B. & Duffield, Assistant to th© Secretary, Treasury Department, Wash ing tors, D. C. Bear Mr. Duffield: Reference i s a&d© to your aeaorniidun of April 14f 1939, enclosIng a copy of a proposed report by the Treasury Department on the Brcran b i l l , S.EQ45, and asking for ^y cosaente with respect to such report. It i s understood that JQU ©issultaneously addressed a similar memorandum to i r . Hanson asking for bis coaaents, While Mr. Ransom Is now out of the city, he indicated before he l e f t that he was in accord with the views expressed herein &nd you may consider this l e t t e r s§ feeing responsive also to your memorandum to hiss. 4a was pointed Ottt during the nesting of the Inter-departesatal Committee on April 15, our position eeerae to be sofsewhat different froze that of others who were present at the meeting. The Board, in it© l a t e s t annual report, di&eusAed th© banking and credit situation rather extensively and called the attention of Congxegfrdli the existing problems of banking and banking supervision. Only v^en^i^ i t has urged that Congress, through appropriate eoissitteefs or a jj^i^/coiaisittee, take steps to determine the solution for certain of thesaN^oW-^^©* I& view of this record w© do not believe that we could B^pT^mn^telj or consistently now m&km ® report which would commit us to Ine i p i t i o n of recoasnending teat neither the Brown b i l l nor aay othen^SfoKQi^iegislation be enacted at this session of Congress. Moreover[fit tie our view that i t i s for Congress to detersine whether i t n d s h e a ^ ^ e n s i d e r banking legislation s t this time. Furthermore, while everything the b i l l seeks to accomplish ®ith reference to the Treasury Department siay be achieved by the President and Congress under the Reorganization Act, we doubt that th© Reorganisation Act can properly be considered as offering a solution to the entire problem to which the b i l l i s directed. for these reasons, we do not feel that we can now concur in the conclusions expressed in the proposed l e t t e r in so far as they would preclude the procedure that the Board has reeossaended, even though the report may be entirely appropriate from the standpoint of the Treasury, ft hope that at the proper tisie the Board will have the Treasury's support of i t s recommendation for an over-all Congressional study of the probtews in these fields. Very truly yours, (Signed) l« 5. Eccles li. ft« Eceles, Chairman 5/5/59 — Mr. Eccies had nothing to bay in regard to tnis matter ana tiiererore no reply necessary. V.E. Hay 2t 1939 Mr. Marrlner S. Eccloe Secretaryfeorgenth&unow proposes to eand th© attached letter BM 1 report on the Brotm Bill. If you believ© that the Treasury ahoul«3 not send suoh & report on this Bill, or If you have any commenta on the report, would you pleaee call I '-oretary or tnder secretary Hanes before noon on Hay 3» My &«&r Mr, Chairman* R»f*r«!toe I s a&&*» t o April 4, 1930, r&quasting a report on 5, 2O4S, A B i l l •to tfMftffcff to the IMtoftft MpH&i Innuran&t Corporation a l l fm&mml bAnX^exemlnlnf? funotlona, and for other purpo&aa11, thl« b i l l w u l d tranif#r th» MflM of the Goaptrollfcr of th© c^irr^ney ami I t s ban^: oxamlnlng and tup#ryi§ory functions frc^ tb« to the rederal Deposit Xnanraiio# Corporation. 1 to th© resio^al of th© OomptroXl^r of tho or h i t dutl«s from th« Tmmx&y at IMi tine and imoordlnglj X r^oowitud g of ib&m t i i t l i t t i of $• ^Hd vhleh off©ot V«ry t r u l y of the Treasury Robert F. Wagner, Qh&tmm, Conslttoo on Bailing mnd O ESDlhp 5/2/39
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