The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MI S C. 1 4 0 A (M IS C . 140 A. f —36 M—2 -5 4 ) F ederal reserve Ba n k of n ew York NEW YORK 45 . NEW YO RK A lt. Kauri E , Bopp, V ic e P re s id e n t. F e d e ra l R eserve B ank o£ P h ila d e lp h ia , P h ila d elp h ia 1, F a . D e a r K a rl: M ay 16* 1955 £>-' C l h air* m l Dm d ra ft of y o « r paper e t M o M ^ w hich yon >«b I semi la s t v ic k , and 1 haven’t enough s p e c ific com m ents to w » ffw rt sending b tc k e x tra copy w ith n a rg b tftl a a to tiw u . la g e n e ra O M y s p e c ific com m ents v t r f i w tte p icayu ae. r i r i t , th a r« la aa ©14 phobia o f »Im d w hich re la te s to tha i nfla tio n a lte r W orld W ar I I X th« p a p tr e x c e lle n t, the vox* o f balanced y e t p ro vo cative « m « y o f the fie ld w hich w t have com e to expect fro m yon. Y iltt l e m i? it l& i A# tk# took lk » b a r bet was concealed o r suppressed, aad th a t the ra w ty a v a ila b ility of «v «4tt la Dm p riv a te econom y a lta r tha w a r « ii wot so ta rg e a cause aa m ost people b elieve o r m ih s m . Y ou r seco n I parag rap h on page 2 awakened th is re a c tio n . D I d id gat throw n o ff tha tra c k a little wham yea s ta rte d w ith W M v ttU B ty aa a a * o f tha ah jaettvae o f c e n tra l bank p o licy * aa to w het yoa w ere ta lk in g about c e n tra l banking in g en eral o r la tha W aited S tates You picked me up la te r when yott pointed oat th a t we have been able la rg e ly I to d ia re g a rd o u r balance o f paym ents ia pursuing m onetary p o lic y . Yon I m igh t w ant to th row la a parag rap h cm the closeness - day to day * w ith w hich \ \ 1 c e n tra l banks la m ost fo reig n co u n tries have to follow the fo re ig n exchanges (j \ \ j \ and the balance o f paym ents. In c id e n ta lly , in tha sam e a ra a yon changa \ f fro m c o n v e rtib ility to re d e e m a b ility a t tha bottom o f page 5 , b «t d o n 't aay Y w hat yon m ean by re d e e m a b ility . &o yon want to get la ta dom estic I conve r tib lilty ? 1 lik e d w hat yon had to say about guides and judgm ent, aad about the su pp ly, a v a ila b ility aad cost o f c re d it. P erhap s 1 lik e d p a rtic u la rly yo ur statem ent th a t no d ire c tiv e o r sp ecific gnide w ill te ll the p ra c titio n e r w hat to do a t 11:00 a .m . oa T h u rsd ay. It is a fa ilu re to understand th at . sim p le fa c t, w hich u n d e rlie s som e o f the p r e s e t d e s ire to m ake the \^ FRASER ** M anager o f tha System Open M a rk e t Account m ore d ira c tly resp onsible to Digitized for http://fraser.stlouisfed.org/ the F e d e ra l Open M a rk e t C o m m ittee. I can th in k o f nothing m uch w o rse Federal Reserve Bank of St. Louis * M r . K a rl R . Bopp 5 /1 6 /5 5 Thursday. U w n M 1m 11:00 » , » , «m FfW ty before t&ft d lN t t iv i om arged. Becauae I b«li*v* a© ti» iW |U y la what yon aay ab«at the Federal Opan Markat Comsnt&§«• n l t»tha quotatioayou o t page U, la m alarmad ly tfcud&tt&ir to trv to tifcii C ^ sia ilte i m&iS body, ft kaa anough to do coaklag policy, It It | « i H i capacity to 4$ that «•!!* SiaeiMlf, A lla n Sproul