The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Forpi F . R. TO 511 Mr. Thomas Chairman E c c l e s REMARKS: 10/lA7 Wish you would prepare a reply for my signature, incorporating the following and anything else you think advisable: Acknowledge the lfetter and report saying that the report was gone over thoroughly by our staff people who gave me a memorandum; ' >t I made some suggestions to Mr. Thomas ^JLch I am advised he passed on to you over me telephone. M.S.E. CHAIRMAN'S OFFICE October 2, 19U7. Dr* K» (*. Mourse, Chairman Council of Economic Advisers Executive Office of the President Washington, D. C. Dear Dr. flours©: Thank you for sending me a copy of your Council's tentative draft of its third quart*r review prepared for the President's use* This draft was road thoroughly by numbers of the Board's research staff who gave me a memorandum pointing out its main features. I made some suggestions to Mr* Thomas as to points which I felt should toe included in the report and I mm advised that he passed these on to you by telephone* One suggestion concerning the powers of the Federal keserra System to regulate oredit we consider especially important at this tiae. In confirmation of Mr, Thomas' telephone message, X a* sending you a typed draft of this suggestion* I hope you found it possible to include this proposal in your report to the President* May X again express our appreciation for the opportunity to read your report and to sake suggestions in advance of its submission. Sinoerely yours. (Signed) M. S. Eccles II* S* Ecoles Chairman Enclosure third Quarter Roriow of Council of Econoaio Advisers Insert, page 12, «eeond full paragraph after first sentence Congress should reinstate to the Board of dovernors of the Federal Reserve System power to regulate consumer credit, which lias been repealed effective Vovember 1 by recently enacted legislation. Present powers of the Federal Reeerre System are also inadequate to Unit general credit expansion, which is now proceeding at ft rapid rate. la order to restore the Reserve System*s power to limit credit expansion, without upsetting the vast new war-created public debt structure, Congress should pass legislation along the lines recommended by the Board of Governors of the Federal Beserre System in its Annual Eeports for I9h5 F PY
@FedFRASER