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Going: off the gold standard & blunder.
Hearings before a subcommittee of the Committee on itemising and
Currency of the Unitca States Senate, 1935. pages 683-684.
^Senator Giac, > Vastly more fear ana more wide-spread fear
occurred by talcing us off the statutory gold standard than would
have prevailed had we remained on the statutory gold standard*
"Mr. Millsr. I have no ...asitation in saying th-1 I agree
-with you 100 percent.
"•••iifr. Miiler, I thina: the inobt uerious blunaer that any
country can make in the monetary field is voluntarily, by its
ovjn action, to suspend the gol& standard. I think we would have
been pushed off of the gold ataadard ' y the pressure of events,
p
but there V M no occasion for us voluntariL^ doing it. Events
would have done it, ana M would have been off the gola standard
«ith, I tiiink, a vastly better national prestige today than we
have, I thimj: wisdom, foresight, would have seen that ana would
have let the natur&i course of evento take place. In other
vordij play the gold •tanitiirt to a finish, oven tiiou^i it takes
the Xaat dollai1 of gold you h£ive» it tauni that va ?/ere in a
creditor position ami that the ^oic would coiae back here after
th^ frantic fear liad playua itself tc a finish.n
Mature« not raan-mde oj.ans. the cuu-e for the depression.
Hearings before the Go.imittee on Banking ana Currency of the United
Statea Senate, 1932, pi:,gss 225 and 239 •
W

I say tot the tiae being1 keep haudl off of the sick
patientfcoidotay out of the oick room except to feed, and bathe
and keep the patient varm.
n

iien£~tor Brooidia^'t. i^et him aie?

B

Mr. Miller. He ?.ill not die.

i

8attator Blaine. iho is the doctor that you vill leave in
charge of the aick patient?
"Mr. iuiilur. Nature is doing her woi*k. She i u , be our main
ait
reliance. Let us not ttadaraatlBata our recuperative po% ers. You
can interfere and medaie, but in my judgjaftSt v.itn very j.ittie
good result. Wa ara biiapj-y repeating our (MB history over again.
V e have nevor Lad a breakdown that haa not surprised us, and
;
our resort inevitably la to A a t I call baby poychoxogy. le




-2take resort particularly to cheap money devices in the hope ane:
even in the belief that they wtXX somehow or other wipe out
mistakes, forgive aebtt>, end t«t us all in ^oocl shape for a forward movement.*
"•••I hope you ao notftlMQAftrotand- y position there.
a
it are trying to Mtltt nature but X dc not t i i c th&t this assisthri
ance aione will accomplish results any more than I think it is
possible to make the weather change by manipulating the barometer,11
Board shoulc select its ox,n ciiaiman•
The Banking B i U Considered in the Light of 1927-1929," June 2A.
1935. ptgos 37-3o.
tiien can the m
banking legisle^tion do to improve
the situation of the Federal iteserve iioard and insui^e • more
competent perfonimnce by the Federal Reserve System in the
field of open-market poliqy should the Federal Reserve Board
be investou v.ith ultimate txuthority and respont3ibii.ity?
n

yfy i M w r is to make the Board mast..r in its own house
by giving it an assured position of complete inuepanaence both
in lav/ anc. in fact. So far as can be aone by statute !a.v;t it
should be iiaaunised against any form of interference, pressure
or influence, be its source financial or political.
"In oraer to give the Federal reserve Boari a position ay
nearly lttMBM from such influences ac possible, I have proposed
that meiabera of the Board should, if not Iliwiiltoiji then in
due coui'se, be •jppoiated for longer !)>!•• of service, that they
should not be removable except by impeachment, that nembers
reaching the age of seventy shouiu DQ given en aliovan .e on
volunttay retireiaont, that tho title of the Feaerd Bifirfl
Board should be changed to the Board of Governors of the Federal
Reserve ^system, and finally that the executive \uttA of the 3oard
shoula be a chairmen elected by the Board instead of a Governor
appointeu bj the P