View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

BOARD OF GOVERNORS
DF THE

FEDERAL RESERVE SYSTEM

Office Correspondence
Tn

Messrs, Eccles and Szymczak

Da te_^ecember

2,1944

Subject:.

Frnm Mr. Carpenter

Attached is an excerpt from the minutes of the meeting of the
Board held yesterday with respect to the further action to be taken in
connection with the Bretton Woods agreements. It will be noted that
the matter was referred to you (Messrs. Eccles and Szymczak) with power
to act with the understanding that, followiijg the discussions with the
State and Treasury Departments, you would submit a recommendation to
the Board as to the statement to be made by the Board and as to its publication.




Excerpt from the minutes of the meeting of the Board of Governors
held on December 1« 1944
I1 he re were then distributed copies of a memorandum submitted by
Messrs. Eccles and Szymczak

in accordance with the action taken at the

meeting of the Board on November 21, 1944* and reading as follows:
(The memorandum from Messrs. Eccles and Szymczak
appeared at this point.)
Copies of a draft of a public statement of the kind contemplated
in the first paragraph of the memorandum were also distributed and the memorandum and statement were read.
In the ensuing discussion of the proposed statement Chairman Eccles suggested that the statement might create the impression that the
Board was of the opinion that the International Stabilization Fund and the
Bank for Reconstruction and Development would be more effective and would
work more smoothly in solving the problems with wnich it had to deal and
was a more ideal mechanism than might actually turn out to be the case and
that he would like to see the statement revised to cover that point and to
make it clear that, while the Fund and the Bank would have shortcomings
and there were other controlling factors in the situation, the Bretton Woods
proposals were the best solutions available for a difficult problem.
After considering how Chairman Eccles1 suggestion could be met,
the discussion turrBd to the steps to be taken in connection with the memorandum and proposed statement, and Chairman Eccles expressed the opinion that
it was important that the matters referred to in the memorandum "which would
affect enabling legislation be placed before, and discussed with, representatives of the Treasury and State Departments at the earliest possible moment




12/1/44

-2-

so that they could be considered before the legislation was crystalized.
There was also a discussion of whether the proposed statement
should be released before the conferences with the Treasury and State Departments, and Chairman Eccles suggested that the form of the public
statement and the decision of the Board with respect to its release might
be affected by the outcome of the discussion with respect to the matters
to be covered in the enabliqg legislation, and, -therefore, he would prefer
to send the proposed statement to the Treasury and State Departments as a
tentative one that was under consideration by the Board,
During the course of the discussion, Mr.
Evans moved that the whole matter be referred to
Messrs. Eccles and Szymczak with power to act
along the lines suggested by the Chairman.
Thereupon, Chairman Eccles said that what he would like to do
wo l i be to prepare letters to the Secretaries of the Treasury and State
ad
Departments in which the questions with respect to the enabling legislation
would be presented and to which the proposed public statement in a form
agreed upon would be attached as a tentative statement that was being given
consideration by the Board for publication in the Feaeral Reserve Bulletin
or for release to the press as the position of the Board, and that when the
letters were signed he would send copies to Under Secretary of the Treasury
Bell and Assistant Secretary of State Atchison, and would call them on the
telephone and advise them that the letters were being* placed in the mails.
He also said that copies of the letters to the State and Treasury Departments and the proposed statements could be handed to the Presidents of the




12/1/44

-3-

Federal Reserve Banks when they arrived for their conference in Washington
on December 8 and the matter could be discussed with than while they were
here.
Mr* Szymczak suggested that under that arrangement the proposed
public statement would not be released until after a decision had been
reached on the questions with respect to the enabling legislation that were
of interest to the Board,




At the conclusion of the discussion, Mr.
Evans1 motion was put by the chair and carried,
with the understanding that following the discussion with the State and Treasury Departments
Messrs. £ccles and Szymczak would submit a recommendation to the Board as to the statement to be
made and as to its publication.
On this action Mr. McKee asked to be recorded
as "not voting".