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January 17, 1961.




SUBJECT: Coordination and Development of Basic
Economic, Fiscal and Monetary Policy.




At Secretary Atiderson's suggestion there has been
developed in the last couple of years a mechanism for
informal discussion with the President of basic economic,
fiscal and monetary policies, \4iich may well be vorth
continuing in your administration. At Irregular Intervals,
which averaged out to about once a month, the Secretary
of the Treasury, the Chairman of the Council of Economic
Advisers and the Chairman of the Federal Reserve Board
met with the President to discuss, without any formal
agenda, subjects of Interest In the general economic field.
Typical items for discussion would be the state of the
economy, monetary policy, problems of debt management,
balance of payments, etc* From one to two hours were always
set aside for these discussions and no notes or records were
kept. The meetings were not keyed to any emergency and so
did not attract any particular Attention from the press.
They afforded the President an opportunity to hear at first
hand the views of the senior officials of the government
most Intimately connected with economic problems on matters
of current interest to any one of them, and on any other
matter which the President himself cared to raise.
This mechanism, besides serving a useful purpose in
Informing the President and allowing him to re4ch decisions
on general policy matters, also served as a mechanism for
tying the Federal Reserve Board more closely in with the
executive branch of the government. In the absence of such
meetings there does not appear to be any opportunity for
the President to meet with die Chairman of the Federal
Reserve Board without attracting undue attention.



I feal that the views of President Elsenhower and
Secretary Anderson on the usefulness of these meetings
and any suggestions they may have on this general subject
would be helpful to you in determining the course of action
you may wish to pursue Intthis field. X have specifically
not recoamended any discussion of the balance of payments
or gold problem at this meeting since I understand that
these have been fully discussed with you on previous occasions
both by President Elsenhower and Secretary Anderson.

/s/ Douglas Dillon
Douglas Dillon

DUE 7 C '



Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102