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X-9289
X

BOARD OF GOVERNORS
OF THE
FEDERAL

RESERVE

SYSTEM

FOR THE PRESS

For release in Morning Papers of Saturday, August 24, 1935«




Statement
of

Governor Eccles
on signing of the
Banking Act of 1955.

X-9289

In my judgment the banking bill now signed by the
President marks an important advance in the development of the
country's banking system and the adaptation of monetary administration to present day conditions and national needs#

It was realized

at the outset that the measure was far from being the last word in
creating a perfect banking system. It was also realised that widespread controversy was unavoidable, as it always has been, whenever proposals have been put forth involving material changes in
the banking and monetary system. The function of banking and
money is perhaps the most important of all in our entire economy •>
It is at the very foundation of our interdependent industrial
society. The subject is complicated and difficult to understand.
It always has been and presumably always will be beset by sharply
conflicting theories and opinions»
In view of the inevitable clash of divergent viewpoints,
and the initial opposition to any Federal Reserve legislation at
this time, the resultant measure seems to me to be a most satisfactory accomplishment upon which the members of the Banking and
Currency Committees of the Senate and House and the conferees, who
have worked tirelessly and conscientiously to reconcile different
points of view in accordance with what they believed to be in the
public interest, are to be congratulated.
Considering the objectives and purposes of the legislation
as originally proposed and as finally enacted, I am very well




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X-9289

satisfied with the outcome* By providing for a centralized authority
over and fixed responsibility for monetary management, for a broadening of the basis for credit extension by the banking system, and
for better organization of the Federal Reserve System, a large contribution has been made to the solution of one of the most important
problems confronting the country today.