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Section 10 of the Federal Reserve Act specifically provides
that upon the expiration of their terms of office, members of the
Board shall continue to serve until their successors are appointed and
have qualified. The same paragraph provides that of the members appointed to the Board, one shall be designated by the President as
Chairman and e n as Vice Chairman of the Board to serve as such for a
term of four years*
Members of the Board are appointed by the President by and
with the advice and consent of the Senate but the Chairman and Vice
Chairman are merely designated by the President to serve as such for
a term of four years. Prior to the Banking Act of 1935 the Federal
Reserve Act provided for the designation by the President of a Governor (now Chairman) and Vice Governor (now Vice Chairman) and the
provision was consistently interpreted as meaning that they served
at the pleasure of the President. The Banking Act of 1955 added language
providing for the Chairman and Vice Chairman to serve for a tern of
four years, the purposes of the addition being to clarify the existing
law and to make plain its purpose of enabling the administration in
office to maintain a laison and responsive relation with the Board.
Other than to act as the Board's executive officer with the
right to call meetings of the Federal Open Market Committee the Chairman and the Vice Chairman, in his absence, perform no statutory duties
different from any other member of the Board. The office of Chairman
is an incident to membership upon the Board and the characteristics of
membership radiate through the member to the office of Chairman. Thus,
a member of the Board whose term has expired by specific language of the
statute would continue to serve and perform all of his duties as a
member until his successor has been appointed and qualified and it would
follow that if such member also was Chairman he would continue to perform all of the duties of the office, including the duties of Chairman.
Purthemore, the hold-over provision refers to "terms of
office" and the Chairman and Vice Chairman are appointed for a "term".
Therefore, it would appear that the hold-over provision in the paragraph in question relates both to the terms of office of members of
the Board and to the terms of office of the Chairman and Vice Chairman.
This is emphasised by the fact that the hold-over provision is but a
part of the general paragraph and follows the provisions dealing with
appointment of the members of the Board and the provisions dealing
with the designation of a Chairman and Vice Chairman, thus indicating
its general application.