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http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Collection: Paul A. Volcker Papers Call Number: MC279  Box 29  Preferred Citation: Federal Reserve: Eccles Building Dedication, 1983; Paul A. Volcker Papers, Box 29; Public Policy Papers, Department of Rare Books and Special Collections, Princeton University Library Find it online: http://findingaids.princeton.edu/collections/MC279/c207 and https://fraser.stlouisfed.org/archival/5297  The digitization ofthis collection was made possible by the Federal Reserve Bank of St. Louis. From the collections of the Seeley G. Mudd Manuscript Library, Princeton, NJ These documents can only be used for educational and research purposes ("fair use") as per United States copyright law. By accessing this file, all users agree that their use falls within fair use as defined by the copyright law of the United States. 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Mudd Manuscript Library 65 Olden Street Princeton, NJ 08540 609-258-6345 609-258-3385 (fax) mudd@princeton.edu   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   Federal http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  I  The Men Who Made the Fed  Reserve Bank of Philadelphia  THE MEN WHO MADE THE FED* By Lawrence C. Murdoch, Jr. The Federal Reserve, our central bank, draws strength from its diversity. It is a regional system which blends opposing attitudes, interests, hopes and fears. It was created by Congress but it has many characteristics found in private enterprise. The people who played major parts in the birth and growth of the Fed also were a diverse lot with different kinds of strengths and abilities. But because of luck,fate or whatever, the right kind of person seemed to emerge at the right time. The first of the men who made the Fed, Carter Glass, we will call the fighter. He was only five foot-four, but he could rip into the opposition like one of the Bantam roosters he kept as a boy in Lynchburg, Virginia. Glass was born in 1858 to an aristocratic southern family. The Civil War wiped out his Carter Glass fought the conparents' fortune and he grew troversial Federal Reserve Bill through a hostile Congress. up knowing poverty and bitterness. At 13, he left school and found work as a printer's devil. He had to fight to survive as a boy, and he kept doing it all his life. ' In this pamphlet the author attempts to draw caricatures rather than paint portraits. The former simply captures a few outstanding features and exaggerates them while the latter shows more of a lifelike image.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  i  By age 30 Glass was the owner of the Lynchburg Daily News. His opinionated editorials led him into politics, and in 1902 he ran successfully for Congress. As it turned out, Glass was the kind of warrior it took to fight the controversial Federal Reserve Bill through a hostile Congress. He had to overcome opposition from Wall Street and the bankers on the one hand and the agrarian, easy-money interests on the other. He got the job done, however, and the Fed was created just before Christmas in 1913. Glass was just as pugnacious in the 1930s when efforts were being made to bring the Fed more under central control. But, as we shall see, the results were somewhat different. Benjamin Strong, the first president of the New York Reserve Bank, was the organizer. He started the Bank from scratch and played a major role in financing World War I. He helped discover how open market operations affect the economy and was instrumental in the restoration of the gold standard in the 1920s. Strong had three older brothers who, like his father and grandfather, graduated from prestigious colleges. But when his time came,the family funds Benjamin Strong organized the New York Reserve Bank had run out and he went to and tried to dominate the Fed. work as a bank clerk. Although he lost this first job because of poor penmanship, Strong eventually rose to become president of Bankers Trust, and in 1914, was persuaded to 2  http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  take the presidency of the brand new Federal Reserve Bank of New York. In principle, Strong did not favor a regional central banking system, but since there was one, he felt the real power should be located in New York. He called the Board of Governors "a timid bunch" and dominated the System from Manhattan. He managed this partly because of New York's status as the nation's financial center and partly because of the force of his own personality. Marriner Eccles was the centralizer. He was appointed a Federal Reserve Board Governor in 1934 near the bottom of the Depression. As a New Dealer, he felt that monetary policy should be part of an overall coordinated effort and he sought to bring the 12 ReMarriner Eccles sought to centralize authority in the Board of serve Banks more under Governors. the authority of the Board of Governors in Washington. Carter Glass, who was in the Senate at the time, was bitterly opposed to Eccles' plan because he feared it might reduce the System's independence. The aging warrior fought hard, won a few skirmishes, but lost the battle. The Banking Act of 1935, which Eccles backed, gave complete control over the purchase and sale of government securities to the Federal Open Market Committee. Before that, the individual Reserve Banks had had some degree of authority to conduct such transactions on their own. The Act authorized the President to appoint the Chairman of the Board of Governors and, in turn, gave the Board the   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  3  power to approve the selection of Reserve Bank presidents and first vice presidents. In addition, the Board got new authority over discount rates, reserve requirements, and the management of Reserve Banks. President Roosevelt used his new power and appointed Eccles Chairman in 1936. Eccles' grandfather brought his family from the slums of Glasgow, Scotland, to Utah, where the clan prospered and his father, David, built up a chain of successful businesses. From the age of eight, the young Eccles worked every summer in one of his father's factories and put all his earnings in a bank. At 19 he began a two-year stint as a Mormon missionary in Scotland. David Eccles died when his son was 22 and left him a business empire worth 7 million dollars. Marriner Eccles managed things so well that he was head of a chain of 26 banks, as well as many other businesses, when he came to the Fed. He was a small man with a narrow face and keen eyes. A biographer said he had a dry, impersonal manner and let himself go only when out shooting ducks or when given a bag of peanuts. Eccles' ideology was fervent but far from inflexible. He favored easy money and deficit spending in the depressed 1930s, but in the latter 1940s when inflation was more the problem he pushed for higher interest rates and a balanced budget. The Federal Reserve had "pegged" interest rates at low levels in order to help finance World War II. When the hostilities were over, the Treasury wanted the low rates to continue in order to make it easier and cheaper to manage the huge Federal debt created during the War. Eccles called the low-rate policy an "engine of inflation" and tried hard, but unsuccessfully, to pull out the pegs. When Eccles' term was up, Thomas McCabe, president of Scott Paper Company, was named Chairman of the Board 4  http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  of Governors while Eccles remained as a Board member. McCabe also wanted to free the Fed to raise interest rates and fight inflation. However, he differed from Eccles in personality and method. Eccles was introverted and autocratic, while McCabe was outgoing and flexible — the characteristics of a good salesman. McCabe reached an Accord with the Treasury in 1951, negotiating with a young under-secretary named William Thomas McCabe helped to make monetary policy a viaMcChesney Martin, Jr. The ble tool again. Accord freed the Fed to raise interest rates and restored monetary policy as a viable economic tool — something it had not been for 10 years. Soon after the Accord, McCabe resigned. President Truman then appointed the Treasury's Martin to chair the Federal Reserve Board and carry out the policies he had helped to establish. Martin was the persuader. He operated by consensus and often called 10 a.m. meetings of all the Governors where they decided major issues. He also returned some power to the Reserve Districts. He encouraged the Conferences of Reserve Bank Presidents and Reserve Bank Chairmen and called frequent meetings of the Federal Advisory Council which Eccles had called "a statutory nuisance." Perhaps most important, he began holding meetings of the Federal Open Market Committee with all Reserve Bank presidents attending and speaking their piece rather than just those whose turn it was to vote.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  5  Martin's father was the president of the Federal Reserve Bank of St. Louis, and when young William graduated from Yale in 1928, he got a job in that Bank's examination department. A year later he joined a brokerage firm as a statistician. He spent the 1930s in New York working in the stock 061market, eating at the Automat, studying economics at Columbia, and playing tennis on William McChesney Martin, weekends. He was one of the Jr., steered the Fed through top amateurs in the area and the "laid-back" 1950s and the activist 1960s. his wife, Cynthia,is the daughter of the donor of the Davis Cup. At the age of 31, Martin became the "boy wonder" president of the New York Stock Exchange. Several years later, in 1941, he was drafted into the Army as a private, exchanging his $48,000 annual salary for $21 a month plus free room and board. He ran the Fed with quiet dignity and was so respected that he served under five different Presidents. His adaptability and insight brought the Fed through two entirely different kinds of decades, the "laid-back" 1950s and the activist, acrimonious 1960s. Arthur Burns, whom we might call the scholar, became Chairman of the Board of Governors in 1970. He spent many years in teaching and research before coming to the Fed. When he spoke, his knowledge of economics and his erudite manner blended with his instinct for politics and worked to impress Congressmen and colleagues alike. Burns reorganized the Board more along corporate lines and he himself operated like a chief executive. Even though he had only one vote, his self-assurance and forceful  6  http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  personality made him a powerful figure. At FOMC meetings Martin always spoke and voted last. In contrast, Burns frequently opened the discussion, and when voting started, he often went first so that the other members acted with the full knowledge of where the Chairman stood. During Burns' time in office, the System adopted a more modern style of management which brought a new efficiency and cost consciousness to the Reserve Banks at a time Arthur Burns moved nimwhen the economy in general, and bly through political probthe payments mechanism in particu- lems and monetary crises. lar, were changing rapidly — in large part due to computers. Burns was born in Stanislau, Austria, in 1904. He arrived in the United States at the age of six, just a few years before Benjamin Strong opened the New York Reserve Bank. He got his Ph.D.from Columbia and was a lecturer, writer, and expert in business cycle behavior until he went to Washington to head the Council of Economic Advisers in the 1950s. Burns, with his shock of white hair parted in the middle, and ever-present pipe, became a symbol of monetary integrity throughout the world just as William McChesney Martin had been before him. Thus, in 1977 President Carter faced a difficult decision whether or not to reappoint Burns to another term as Chairman. If he did so, he would lose a chance to put in someone more identifiable with his own Administration. But, if he didn't reappoint the Chairman, the world might take it as a sign that the U. S. was placing less emphasis on the fight against inflation. After many months of deliberation, the President picked   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  7  G. William Miller, a lawyer who headed the Textron conglomerate. He brought a change in style to the job of Chairman. Traditionally, central bankers seemed to feel that silence in public was part of their role, and Eccles even said that it was his duty to talk as little as possible. Miller, in contrast, was frank and outspoken and gave frequent interviews. As this is written, Miller has moved on to become Secretary of the Treasury, as Carter Glass once did, and Paul Volcker has been appointed Chairman of the Federal Reserve Board. He was president of the New York Reserve Bank and previously held a high position in the Treasury Department, combining part of the backgrounds of Benjamin Strong and William McChesney Martin. We have tried to show that the men who made the Fed varied considerably in style, personality and philosophy. What they had in common was dedication and an ability to sense and work towards the nation's current goals. 0  B   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  For additional copies of this pamphlet or for a list of other available publications, write to Public Service Department Federal Reserve Bank of Philadelphia P. 0. Box 66 Philadelphia, Pennsylvania 19105   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  9   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Funeral Services for Marriner Stoddard Eccles December 22, 1977   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Conducting, R. H. Burton Director, First Security Corporation and close friend allie, the members of her family, members of the Eccles' family, and friends of Marriner S. Eccles: I am Harold Burton. I feel honored to be named to announce those who will participate in these services. I have been a close friend and associate of Marriner Eccles for many years. My own father expressed his high esteem for Marriner so often that I felt I knew Marriner long before I became associated with him Over the years I have had an ever-increasing appreciation of the many qualities and the greatness of this man. Rarely, has an individual affected the lives of so many people. In addition to many of Marriner's friends and associates from out-of-town, and dignitaries here too numerous to mention, I wish also to acknowledge the presence of Stephen S. Gardner, representing Arthur F. Burns and the Federal Reserve Board. Mr. Gardner is Vice Chairman of the Board. Marriner's grandsons have been designated as pall bearers. From here on the services will proceed as follows: The opening prayer will be delivered by President N. Eldon Tanner, First Presidency of The Church of Jesus Christ of Latter-day Saints. Edmund W. Littlefield, who succeeded Marriner as Chairman of Utah International, will then speak. Joseph Quinney, Marriner's brother-in-law and life-time friend and counsel, will speak for the family. The closing prayer will be offered by Dr. Thomas H. Caine, Marriner's physician in the final months of his life. The services will proceed from this point without further announcements.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Opening Prayer N. Eldon Tanner First Presidency, The Church of Jesus Christ of Latter-day Saints ur Father who art in Heaven. As Thou seest, we have met here to show our last respects to this great family and to Marriner Eccles, who has left us. We pray that while we are here we may have Thy spirit to be with us. Bless those who participate that they may do so as they wish to do and under Thy direction. We acknowledge this great man as one who has given great service to his country, to his community, to his associates and friends. And he has gone to his reward. Help us to realize, Heavenly Father, that we are continually saying good-bye to those who have left us, or they are saying good-bye to us as we leave. Help us to understand that this part of our life will be ended as it has been with our Dear Friend, Marriner. Help us to prepare for this occasion. Help us to realize and understand that the Savior, whose birth we celebrate in the next few days, came and gave his life that we might have immortality and eternal life, and has given us the plan of life by which we can prepare ourselves for eternal life. Give us courage and strength and understanding to so live that we may be worthy of this great blessing. Let Thy blessing attend this family and those who mourn at this time. Comfort them, give them solace, and help them to appreciate the great life that Marriner has lived, the contributions he has made that have prepared himself for this occasion. We pray, our Heavenly Father, that Thy blessings may attend us all, and that those who participate in this meeting may be helpful to us. Let Thy blessing attend us now and always help us to be worthy. We humbly pray in the name of Jesus Christ. Amen.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Remarks Edmund W. Littlefield Chairman, Utah International, Inc., and long-time business associate e gather here today for the common purpose of paying our last respects to an uncommon man — Marriner Stoddard Eccles. Humble though his beginnings may have been, the crucible in which his character was formed and the fires that forged it produced one of the remarkable men of his — or any other — generation. Part of the structure welded within him was a framework of ethical and moral values that were his hard truths — accepted, not subject to debate, dictates of conscience that were governing in all his actions. Among these was a sense of responsibility, responsibility to his family, to his friends, and associates, to his nation and most important, to the community of man. This was the fuel that fed his unrelenting determination to identify problems, search out the causes, seek the solutions, fight for their enactment. Sometimes it seemed to me that Marriner was never allowed to be young. Circumstances thrust responsibility upon him at an early age. He was more than equal to the challenge. With skill and hard work he not only preserved but enhanced the inheritance that was bequeathed to him and his brothers and sisters. In short order he won the respect, the confidence, and the acceptance of the older men who had been his father's associates. Marriner was not content merely to be a caretaker. He was a creator as well, an entrepreneur with excellent judgment and a keen sense of timing. From these qualities was conceived the first multibank holding company in the country, and two little banks in Logan, Utah, were the seed corn that has grown into the First Security Corporation and the very successful banking system it represents. Long before he was forty years of age Marriner was already entrenched as a successful business leader — President of Eccles Investment Company, of First Security Corporation, of the First National Bank, of the First National Bank of Ogden, Eccles Hotel Company, Sego Milk Products Company, and Stoddard Lumber Company. He was a Director of Amalgamated Sugar, The Utah Construction Company, Anderson Lumber, Utah Power & Light, among others. Impressive as this may have been, these were accomplishments of more tolerant times when the economy was on the upbeat and prosperity was abroad in the land.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  It was in the hard school of great adversity that the dimensions of Marriner's greatness began to be revealed. With the coming of the Great Depression the Nation foundered. One out of every four people was out of work. Some 9,000 banks failed. The conventional wisdom was applied as a remedy — and failed. It was indeed a time for agonizing reappraisal, and Marriner challenged all that he had been taught to believe in economics and in the causes of and cures for depressions. He concluded that the nation was pursuing a course that was making our economic woes worse. He prescribed a different remedy, a new definition of the role of government and of the private sector, a course of action that would reverse the direction in which the economy was plunging. Out of his creative mind emerged concepts and strategies that would prove to be a prime force in combatting the depression and in leading the nation back to economic recovery. His talents were moved to the larger stage of the Nation's Capitol and there he was to play a starring role for the next 17 1/2 years. Now in full view were the very special qualities that set this man apart from the rest. One was the relentless search for truth. There was little that Marriner was ready to accept at face value. He was a tortuously slow reader because he mentally challenged every sentence to see if it were true before proceeding to the next. The facts had to be true and the logic flawless before the conclusion could pass muster with Marriner. Against this constant challenge the frail failed, the sound survived, and the flawed was reworked and made better. Another characteristic was the complete independence of his thinking. He was not afraid to stand alone. If he coveted the praise of his peers, he would not prostitute himself for it. With relentless logic he analyzed the facts, weighed the possible solutions, determined the best course to follow and pursued it with unrelenting determination. To some this made him seem at times stern and unemotional but this was not the case. It was his determination to discover and to reveal the truth and to use this newly discovered knowledge to better the situation.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  With independence of thought was combined wisdom and foresight in rare degree. Fortunately for me, I learned early in my association with Marriner that the fact that Marriner thought one way and all the other people I respected and admired held a different view did not mean Marriner was wrong. He was consistently ahead of the rest of us. More often than not, what he was thinking today would become the popular view some months or even years hence. We are all the beneficiaries of these exacting standards. From it he authored the Banking Act of 1935 that placed the Federal Reserve System on a sounder basis, made it a more effective instrument of monetary policy, and better able to play its role as the Central Bank. He was a major force in the creation of the Federal Housing Administration and the widespread home ownership that it made possible. He played a crucial role in the financing of World War II and foresaw with unmatched clarity the inflationary pressures that were being built up inevitably to plague the world when again it was at peace. Marriner helped to restructure the international monetary system in ways that would facilitate the economic recovery of a world torn assunder by the ravages of war. Typically he stayed on the Federal Reserve Board after his term as Chairman had expired to help defeat an attempt by President Truman and Secretary of Treasury Snyder to diminish the independence of the Federal Reserve Board. Only when victory was achieved did he return to private life. Marriner was without peer in his ability to function effectively in both the public and the private sectors. One reason was that he knew his strengths and recognized his weaknesses. He knew that he was ill equipped to be a chief operating officer where the march of events demands quick decisions, often without all the facts in hand. For these talents he looked to others while he kept the enterprise in clear focus from a more remote perch. In so doing, free from the hurly burly, he brought to bear those very special qualities of foresight, wisdom, and experience that he had in such abundance.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  For over a quarter of a century I worked closely with him, and I hold him in the highest esteem and in the greatest affection. He never asked nor would he have tolerated me to do any act that would have reflected on his integrity or on mine or on the enterprise we represented. His logical approach made him seem impersonal to some. Yet he was a man who cared very deeply for people, for those who worked for him and for those who worked with him. He was loyal. He was fair. The duration and the solidity of his friendships and his business associations are convincing testimony of this. Even after his return to private life Marriner continued to speak out on matters of deep public concern. He warned that the explosion of population, particularly in the underdeveloped countries, was a millstone that was making it difficult to raise standards of living to minimum acceptable levels. Marriner was one of the first, and certainly the best known, to speak out forcefully against our involvement in Vietnam. He even did so at a luncheon at the White House when President Johnson and his cabinet invited the top business leaders to the White House to explain their escalation of the Vietnam War. Marriner raised the single voice of dissent, and he continued to criticize whenever he could make his voice heard. Typically, once more Marriner was out ahead of the pack, alone, calling for others to follow, and finally vindicated when his voice was no longer a solo but part of the chorus. Shakeskpeare once said: "Some men are born to greatness. Some achieve greatness. Some have greatness thrust upon them." All these were true of Marriner. The good that he did will live long.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  T  Remarks S. J. Quinney Brother-in-law and friend  hose who mourn the death of Marriner S. Eccles will find comfort in the love they have borne him; in the benefactions he has bestowed upon them; in their association with him in the days of his health and vigor. His vast achievements have touched the lives of millions of his fellow citizens — more immediately, his philanthropies have been shared by educational institutions; by the high and the lowly; by the rich and the poor; by the minorities and the majorities; by the blacks and the whites. All the descendants of his mother have had and still have their lives enriched as a result of his courageous business decisions and sagacious management of the family inheritance. Much has been said and written concerning his achievements and the unique intellect with which he was endowed. Let us now turn to some of the people who directly, but more often indirectly, helped create the atmosphere in which this great man and his talents flourished — those who played a supporting role in the drama of the Marriner Eccles career. Ellen Eccles, affectionately known as our Bammy, the mother of the Eccles Clan, moved to Logan, Utah about 1907, at which time I became acquainted with them. In high school at the Brigham Young College, Marriner and I were in the Clyde Fitch play, "Girls". He had the lead, naturally; I supported him. In 1912 he returned from a mission to Scotland as I embarked on a mission to Germany. Our paths crossed in New York. In 1914, I returned to Logan. In the meantime, David Eccles, the illustrious father, had died. Marriner was absorbed in the settlement and division of the intestate estate his father had left. Against the advice of most of his trusted friends, including my own father, but with the loyal support of his wonderful mother and such of his family as were then of age, and of his incomparable uncle, Robert Anderson, he courageously elected to sever his family's share of the estate from that of the first family, and thereon hangs a tale many, many times repeated.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  This brings me to the advent of the good folk to whom I alluded a moment ago. In 1916, four years after the death of Marriner's father, the family consisted of Bammy and her nine children, several of whom were not of legal age. Marriner caused the Eccles Investment Company to be organized, into which the properties comprising the estate were transferred. His brothers and sisters of legal age were directors and as the others became of legal age, they, too, became directors of this corporation which finally, after many years of existence, was merged into Utah International, Inc. All this time, Marriner was the dominating influence in the family's financial affairs. But he was supported by his brothers and sisters. Anyone who understands the Eccles temperament will realize that there were times when differences arose only to be resolved; when ambitions became apparent only to be appeased by compromise. There was give and take. III will was put down and good will was established. There was no fragmentation of the family nor of the underlying loyalty each felt to the others and to the purposes of their corporation. Without this family support and loyalty, Marriner's path would have been strewn with more obstacles than actually confronted him and with more frustrations than his restless soul could have endured. As this remarkable group of brothers and sisters stood steadfastly together, no one overeached the other. Marriner, especially in the formative years, must have had numerous opportunities to enrich himself at the expense of the others. Surely he might have seized opportunities not shared with them. But so far as I am aware, and I think I am knowledgeable, this honorable man did not do so. While he enriched himself he enriched his brothers and sisters. Certainly until the time when the family corporation was dissolved and its assets were distributed to its stockholders, and Bammy's own children had established families of their own, Marriner was fiduciary to his family — to his stockholders; and praise be to him, he conducted himself as that appellation demands. Were he here today, he would reciprocate the compliment by saying, All praise to the family whose early support and confidence smoothed the way to his ultimate spectacular success.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Not all, though most of his time and energy were devoted to business and monetary and fiscal policy and governmental affairs. He did find time to play now and then. He enjoyed golf, though to me, he made something of a business of it as he kept tab on each member of the foursome. Betimes, say once or twice a year, he would foregather with his companions to enjoy an afternoon and evening at Siv Jeppson's cabin on the south fork of the Ogden River where horseshoes and other innocuous games were played for a drink-around and where steaks and potatoes and trout were fried only as Siv could prepare them. It was there that a friendly game of poker followed, with good old Larry Clayton strumming his ukelele to tunes and lyrics not repeatable at this gathering. And on Labor Day, the boys would hie themselves northward on fishing trips to the Wind Rivers, to Jackson Hole, or to North Fork of the Snake River and, for three or four days, repeat the south fork rendezvous, except that Marriner did not fish. While the rest of us gathered in the provender, he would sit in the shade and study financial reports which he could recite verbatim years and years thereafter. Such a memory for figures — I mean numbers on the printed page. I am convinced that these mellowing vacations greatly benefitted Marriner. They gave him perspective. They permitted him to size up the men who had been entrusted with the management of several of the enterprises dear to his heart, and they certainly endeared Marriner all the more to the men who worked with and for him. Marriner took great pride in these co-workers and others — for example, in his brother, George Eccles; and in his business associate and protege, Ed Littlefield; and in Art Benning, the worthy successor of his competent father, to mention but three names. Men of this sort held things together; they minded the shop while he was in Washington attending to the affairs of the nation and after he returned from those lusty encounters. I am certain Marriner wanted to keep his life and his good deeds in proper context and perspective. Not that he did not enjoy the recognition lavished upon him, but he knew that no man walks alone.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  My friends, all these things are known to me. I have had the privilege of sitting in the councils of the Eccles Clan. It was not easy to arrive, but it did come about. When Jess and I were married, Marriner and the others, except Bammy, had grave misgivings because, quoting Marriner, I was too radical. And then in later years he despaired of me because I was too conservative. Notwithstanding these derelictions, I think he accepted me and I loved him as my own true brother. And then there is Sallie, Marriner's wife. What would he have done without her? How he admired her! This man, who could be gruff at times, could be melted by this fine, talented woman who added so much class to him and their relationship with their wide circle of friends. Frequently when I would be in his office, he would say, "I just received a letter from Sallie. Listen to this." And then he would read an excerpt from her letter, always clever and perceptive, and say, "Isn't she smart? No one can write like Sallie. Boy, she can see through everything! They can't pull any wool over her eyes." And so on and so on. The joy of her letters was a sort of dissipation with him. These very frequent letters, I do believe, sustained him day after day when they were apart and the going was really tough for this dear fellow. She mellowed his life while she added luster to it. No one could have been more faithful and thoughtful and attentive than was Sallie to Marriner, as she kept her rendezvous with death — not hers but his, though she, too, must have died a thousand times as she observed him gradually and reluctantly sink into oblivion. May she and may his family be rewarded in some way for the important role they have played always with Marriner as their leading man.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Closing Prayer Dr. Thomas H. Caine Physician ur Father which art in Heaven, as family and friends we have gathered here this hour to pay our final respects, with affection and respect, for the long and productive life of Marriner Stoddard Eccles. Our sorrow is tempered, Father, by the remarks that we have heard here from his colleagues and friends. We're thankful for his life and for the example which he has set for all of us — his strong personal integrity and self-discipline, great industry, unwaivering commitment to principle, and timeless service to family, the broad community in which he walked, this state, and our beloved nation. We are grateful also for the unique heritage which helped to mold his unique character in this great western land which he so loved. At this time, we would ask a special blessing upon his wife, Sallie, for the sensitivity and tireless attention which was his greatest comfort in these long months as his energies were frustrated by his failing body. And we pray for all the members of this family that their sorrow might also be tempered, and that Thy spirit might be with them, and that they may enjoy peace and safety throughout the course of the activities of this day and as they return to their homes. As we conclude these services, Father, we ask that we might not leave here without kindling in our own hearts a resolve that we will use the example which he has set for us in bettering ourselves. And to extend the influence and success which he has realized by recognizing, honoring, and protecting the heritage which he so loved and was so proud of. And also by showing through example in our own lives those principles which he exposed and demonstrated so well. Again, we are thankful for the abundant blessings that we all enjoy, and ask Thee to dismiss us now with Thy blessing in the name of Jesus Christ, Amen.  Closing Remarks Mr. Burton This concludes the services. The family wishes me to convey their appreciation for the letters of sympathy, beautiful floral offerings, and other expressions, and also for the numerous people who have come long distances to attend these services. There will be no funeral procession.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  1 arriner S. Ecc es Fe.era Reserve Board Buildin I!   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  DEDICATION CEREMONY Friday, July 29, 1983  Prelude United States Army Field Band  Welcome Master of Ceremonies The Honorable Preston Martin Vice Chairman, Board of Governors  Address The Honorable Paul A. Volcker Chairman, Board of Governors  Music Interlude  Tribute The Honorable Jake Garn Chairman, Senate Committee on Banking, Housing and Urban Affairs  Comments Spencer F. Eccles Chairman and President, First Security Corporation and Director, Federal Reserve Bank of San Francisco   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Music United States Army Field Band  MARRINER S. ECCLES FEDERAL RESERVE BOARD BUILDING  Our economic progress has been the envy of the world. It has been built upon the principles of private initiative and enterprise. I do believe firmly that by monetary means exercised promptly and courageously we can greatly mitigate the worst evils of inflation and deflation...One thing is certain: We will not obtain stability unless we work for it. I have recommended placing responsibility for the exercise of these powers in the Federal Reserve Board, which was established by law to serve the best interest of the nation in banking and monetary matters...The management of the central bank must be absolutely free from the dangers of control by politics and by private interests, singly or combined.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  SELECTED QUOTATIONS OF MARR1NER S ECCLES FEDERAL RESERVE BOARD MEMBER, 1934-1951 CHAIRMAN, 1934-1948  BY ACT OF CONGRESS OCTOBER 15. 1982  -  MARRINER S. ECCLES  Marriner S. Eccles, Chairman of the Board of Governors of the Federal Reserve System from 1934-1948, was born in Logan, Utah, in 1890. During his long and noteworthy career, he earned a reputation as a leading businessman and banker, an original economic thinker, and an important decisionmaker. He dramatically affected the history of the System, and he helped guide U.S. economic policy during the crucial years of the Great Depression, World War II, and the postwar period. In 1928, Mr. Eccles was founder of what is believed to be the first multibank holding company in the country, First Security Corporation; he was its president until 1934. He managed the banks of the First Security Corporation through the early years of the Depression so successfully that none of the depositors lost a penny of their savings. In 1933, Mr. Eccles testified before the Senate Finance Committee regarding proposals to promote economic recovery, and his stimulating ideas captured the attention of several of the close advisers to President Franklin D. Roosevelt. As a long-time associate of Mr. Eccles notes, "He came to Washington with a distinct reputation as a businessman and able banker. Yet he was something of an anomaly among bankers and businessmen in the 1930s. He believed in a need for significant changes in the role of government and the attitudes of businessmen." While most of the financial community proposed a balanced budget and a laissez-faire economic policy to stimulate recovery, Mr. Eccles advocated government spending on public works to put Americans back to work and put buying power back in their hands. Mr. Eccles accepted a call to Washington early in the Roosevelt administration to lend his active and imaginative mind to the task of working the country out of the Depression. He first assumed the post of Assistant to the Secretary of the Treasury in January 1934 and was appointed Chairman of the Board of Governors of the Federal Reserve System in November of that year. He was the architect of the Banking Act of 1935, which made the Federal Reserve System a more effective instrument of monetary policy and gave it greater authority to regulate and supervise commercial banking activities. Believing it necessary to reduce the costs of home building and standardize home mortgages, Mr. Eccles drafted legislation that created the Federal Housing Administration. He also played an important role in helping to establish the Federal Deposit Insurance Corporation. Although it is not widely known, President Roosevelt came to rely heavily on Marriner S. Eccles for economic advice. A White House memo dated December 1935 identified Mr. Eccles as the best voice the administration had on banking and national monetary affairs. When he was designated Chairman of the Board of Governors in 1936, Time Magazine, featuring him in a cover story, said,"A good many people believe that Marriner Eccles is the only thing   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  that stands between the United States and disaster." In the subsequent years, while President Roosevelt was rethinking his own ideas on economic policies he turned to Mr. Eccles as a confidant and strategist. The President reappointed him as Chairman in 1940 and 1944. Throughout World War II, Marriner Eccles presided over an expansion of credit for increased production at home and abroad. After his term as Chairman expired in 1948, he stayed on as a member of the Board until 1951 and was a key figure in urging steps leading to the famous "Accord" between the Treasury and the Federal Reserve. Under the terms of the Accord, the Federal Reserve regained its ability to use monetary policy to combat inflation and was assured of its independence from the administrative branch of government. During his years as Chairman of the Federal Reserve Board, Mr. Eccles served as a member of the Board of Economic Stabilization and was U.S. delegate to the Bretton Woods Conference, out of which was created the World Bank and the International Monetary Fund. He was a member of the National Advisory Council on International Monetary and Financial Problems and served on the Advisory Board of the Export-Import Bank. In July 1951, after a career that he had fully expected to be "of comparatively brief duration," he left the Board, noting that it had been seventeen years since he came to Washington. He cited the succession of events, including "the war period and the special problems of its aftermath," as contributing to his long period of public service. He then returned to private life and the family business in Utah. Mr. Eccles' experience in banking dated from 1913 when, at age 22, he became president of the Hyrum (Utah) State Bank. He organized the Eccles Investment Company, a holding company for interests in the family estate, in 1916, serving as vice president and general manager. During his career, Mr. Eccles was also president, director, and chairman of several other companies, among them, the Eccles Hotel Company,the Amalgamated Sugar Company,the Utah Construction Company, Utah-Idaho Central Railroad, and Utah Power and Light Company. Marriner Eccles has been identified with American monetary policy perhaps more than any figure of his time. He remained a staunch defender of the independence of the Federal Reserve throughout his career. It has been said of him that, whether in public service or in private enterprise, he displayed a shrewd realism about the course of the American economy. History has proved his judgments accurate on many political and economic issues. Mr. Eccles died in December 1977, in Salt Lake City, Utah, at the age of 87.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  HISTORY OF THE BUILDING  On June 19, 1934, the Congress authorized the Federal Reserve to acquire property and begin construction of a building that would become the new home of the Board of Governors. Since its organization in 1914, the Federal Reserve had occupied quarters in the Treasury Building and rented space in privately owned office buildings. The architect of the Board building was Dr. Paul Philippe Cret, of Philadelphia, a Frenchman by birth. When he completed the building it was, in the estimation of President Franklin D. Roosevelt, one of the "foremost architectural achievements in the nation's capital." The Building Committee that the Board established had the assistance of the Commission of Fine Arts, the National Capital Park and Planning Commission, and the National Park Service. The Commission of Fine Arts, in giving its views as to the general architectural character of the building, said,"The nature of the functions performed by the Federal Reserve Board dictates an architectural concept of dignity and permanence." That concept was brought to the design by Cret. Construction began in January 1936, and the building was completed in the fall of 1937. On October 20 that year, President Roosevelt dedicated the building in a ceremony attended by Marriner Eccles, who was then Chairman of the Board of Governors, members of Congress, and others. Cret also designed the Folger Shakespeare Library and the Pan American Union building. The Federal Reserve building is thought to be his masterpiece and, along with those buildings, represents the best of the academic traditions of the 1930s. The apparent lack of architectural ornamentation, a hallmark of the classical style, gives the building its elegance. The window grillwork on the facade is the work of Samuel Yellin, a Polish immigrant who became known as one of the greatest artists in wrought iron. In designing the Board building, Cret selected marble and fixtures for the interior to harmonize with the classical design. The mosaics on the first and second floors are made of 28 varieties of marble. Adolf Miller, who was an economist, and the Board member who headed the Building Commmittee in 1936, also had a hand in the interior design. Many of the Greek motifs representing stability and productivity that are evident throughout the building reflect his affinity for Greek mythology. Marriner Eccles said of Miller,"His heart and soul are in the Reserve System, and his devotion reaches even further, to include his guardianship of the building." With passage of the Garn-St Germain Depository Institutions Act of 1982, the building was designated the "Marriner S. Eccles Federal Reserve Board Building."   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  ,  DEDICATION CEREMONY Friday, July 29, 1983  Prelude United States Army Field Band  Welcome Master of Ceremonies The Honorable Preston Martin Vice Chairman, Board of Governors  Address The Honorable Paul A. Volcker Chairman, Board of Governors  Music Interlude  Tribute The Honorable Jake Garn Chairman, Senate Committee on Banking, Housing and Urban Affairs  Comments Spencer F. Eccles Chairman and President, First Security Corporation and Director, Federal Reserve Bank of San Francisco   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Music United States Army Field Band  MARRINER S. ECCLES FEDERAL RESERVE BOARD BUILDING  Our economic progress has been the envy of the world. It has been built upon the principles of private initiative and enterprise. I do believe firmly that by monetary means exercised promptly and courageously we can greatly mitigate the worst evils of inflation and deflation...One thing is certain: We will not obtain stability unless we work for it. I have recommended placing responsibility for the exercise of these powers in the Federal Reserve Board, which was established by law to serve the best interest of the nation in banking and monetary matters...The management of the central bank must be absolutely free from the dangers of control by politics and by private interests, singly or combined.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  SELECTED QUOTATIONS OF MARRINER S. ECCLES FEDERAL RESERVE BOARD MEMBER, 1934-1951 CHAIRMAN, 1934-1948  BY ACT OF CONGRESS OCTOBER 15. 19112  MARRINER S. ECCLES  Marriner S. Eccles, Chairman of the Board of Governors of the Federal Reserve System from 1934-1948, was born in Logan, Utah, in 1890. During his long and noteworthy career, he earned a reputation as a leading businessman and banker, an original economic thinker, and an important decisionmaker. He dramatically affected the history of the System, and he helped guide U.S. economic policy during the crucial years of the Great Depression, World War II, and the postwar period. In 1928, Mr. Eccles was founder of what is believed to be the first multibank holding company in the country, First Security Corporation; he was its president until 1934. He managed the banks of the First Security Corporation through the early years of the Depression so successfully that none of the depositors lost a penny of their savings. In 1933, Mr. Eccles testified before the Senate Finance Committee regarding proposals to promote economic recovery, and his stimulating ideas captured the attention of several of the close advisers to President Franklin D. Roosevelt. As a long-time associate of Mr. Eccles notes, "He came to Washington with a distinct reputation as a businessman and able banker. Yet he was something of an anomaly among bankers and businessmen in the 1930s. He believed in a need for significant changes in the role of government and the attitudes of businessmen." While most of the financial community proposed a balanced budget and a laissez-faire economic policy to stimulate recovery, Mr. Eccles advocated government spending on public works to put Americans back to work and put buying power back in their hands. Mr. Eccles accepted a call to Washington early in the Roosevelt administration to lend his active and imaginative mind to the task of working the country out of the Depression. He first assumed the post of Assistant to the Secretary of the Treasury in January 1934 and was appointed Chairman of the Board of Governors of the Federal Reserve System in November of that year. He was the architect of the Banking Act of 1935, which made the Federal Reserve System a more effective instrument of monetary policy and gave it greater authority to regulate and supervise commercial banking activities. Believing it necessary to reduce the costs of home building and standardize home mortgages, Mr. Eccles drafted legislation that created the Federal Housing Administration. He also played an important role in helping to establish the Federal Deposit Insurance Corporation. Although it is not widely known, President Roosevelt came to rely heavily on Marriner S. Eccles for economic advice. A White House memo dated December 1935 identified Mr. Eccles as the best voice the administration had on banking and national monetary affairs. When he was designated Chairman of the Board of Governors in 1936, Time Magazine, featuring him in a cover story, said,"A good many people believe that Marriner Eccles is the only thing   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  that stands between the United States and disaster." In the subsequent years, while President Roosevelt was rethinking his own ideas on economic policies he turned to Mr. Eccles as a confidant and strategist. The President reappointed him as Chairman in 1940 and 1944. Throughout World War II, Marriner Eccles presided over an expansion of credit for increased production at home and abroad. After his term as Chairman expired in 1948, he stayed on as a member of the Board until 1951 and was a key figure in urging steps leading to the famous "Accord" between the Treasury and the Federal Reserve. Under the terms of the Accord, the Federal Reserve regained its ability to use monetary policy to combat inflation and was assured of its independence from the administrative branch of government. During his years as Chairman of the Federal Reserve Board, Mr. Eccles served as a member of the Board of Economic Stabilization and was U.S. delegate to the Bretton Woods Conference, out of which was created the World Bank and the International Monetary Fund. He was a member of the National Advisory Council on International Monetary and Financial Problems and served on the Advisory Board of the Export-Import Bank. In July 1951, after a career that he had fully expected to be "of comparatively brief duration," he left the Board, noting that it had been seventeen years since he came to Washington. He cited the succession of events, including "the war period and the special problems of its aftermath," as contributing to his long period of public service. He then returned to private life and the family business in Utah. Mr. Eccles' experience in banking dated from 1913 when, at age 22, he became president of the Hyrum (Utah) State Bank. He organized the Eccles Investment Company, a holding company for interests in the family estate, in 1916, serving as vice president and general manager. During his career, Mr. Eccles was also president, director, and chairman of several other companies, among them, the Eccles Hotel Company,the Amalgamated Sugar Company,the Utah Construction Company, Utah-Idaho Central Railroad, and Utah Power and Light Company. Marriner Eccles has been identified with American monetary policy perhaps more than any figure of his time. He remained a staunch defender of the independence of the Federal Reserve throughout his career. It has been said of him that, whether in public service or in private enterprise, he displayed a shrewd realism about the course of the American economy. History has proved his judgments accurate on many political and economic issues. Mr. Eccles died in December 1977, in Salt Lake City, Utah, at the age of 87.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  I 7=1MW•=?Za-C1MEIiT- V'41E!WMR:Ill filr:1171  1   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  1W-  HISTORY OF THE BUILDING  On June 19, 1934, the Congress authorized the Federal Reserve to acquire property and begin construction of a building that would become the new home of the Board of Governors. Since its organization in 1914, the Federal Reserve had occupied quarters in the Treasury Building and rented space in privately owned office buildings. The architect of the Board building was Dr. Paul Philippe Cret, of Philadelphia, a Frenchman by birth. When he completed the building it was, in the estimation of President Franklin D. Roosevelt, one of the "foremost architectural achievements in the nation's capital." The Building Committee that the Board established had the assistance of the Commission of Fine Arts, the National Capital Park and Planning Commission, and the National Park Service. The Commission of Fine Arts, in giving its views as to the general architectural character of the building, said, "The nature of the functions performed by the Federal Reserve Board dictates an architectural concept of dignity and permanence." That concept was brought to the design by Cret. Construction began in January 1936, and the building was completed in the fall of 1937. On October 20 that year, President Roosevelt dedicated the building in a ceremony attended by Marriner Eccles, who was then Chairman of the Board of Governors, members of Congress, and others. Cret also designed the Folger Shakespeare Library and the Pan American Union building. The Federal Reserve building is thought to be his masterpiece and, along with those buildings, represents the best of the academic traditions of the 1930s. The apparent lack of architectural ornamentation, a hallmark of the classical style, gives the building its elegance. The window grillwork on the facade is the work of Samuel Yellin, a Polish immigrant who became known as one of the greatest artists in wrought iron. In designing the Board building, Cret selected marble and fixtures for the interior to harmonize with the classical design. The mosaics on the first and second floors are made of 28 varieties of marble. Adolf Miller, who was an economist, and the Board member who headed the Building Commmittee in 1936, also had a hand in the interior design. Many of the Greek motifs representing stability and productivity that are evident throughout the building reflect his affinity for Greek mythology. Marriner Eccles said of Miller, "His heart and soul are in the Reserve System, and his devotion reaches even further, to include his guardianship of the building." With passage of the Garn-St Germain Depository Institutions Act of 1982, the building was designated the "Marriner S. Eccles Federal Reserve Board Building."   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  1  DEDICATION CEREMONY Friday, July 29, 1983  Prelude United States Army Field Band  Welcome Master of Ceremonies The Honorable Preston Martin Vice Chairman, Board of Governors  Address The Honorable Paul A. Volcker Chairman, Board of Governors  Music Interlude  Tribute The Honorable Jake Garn Chairman, Senate Committee on Banking, Housing and Urban Affairs  Comments Spencer F. Eccles Chairman and President, First Security Corporation and Director, Federal Reserve Bank of San Francisco   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Music United States Army Field Band  MARRINER S. ECCLES FEDERAL RESERVE BOARD BUILDING  Our economic progress has been the envy of the world. It has been built upon the principles of private initiative and enterprise. I do believe firmly that by monetary means exercised promptly and courageously we can greatly mitigate the worst evils of inflation and deflation. . .0ne thing is certain: We will not obtain stability unless we work for it. I have recommended placing responsibility for the exercise of these powers in the Federal Reserve Board, which was established by law to serve the best interest of the nation in banking and monetary matters.. .The management of the central bank must be absolutely free from the dangers of control by politics and by private interests, singly or combined.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  SELECTED QUOTATIONS OF MARRINER S. ECCLES FEDERAL RESERVE BOARD MEMBER, 1934-1951 CHAIRMAN, 1934-1948  BY ACT OF CONGRESS OCTOBER IS. 19112  MARRINER S. ECCLES  Marriner S. Eccles, Chairman of the Board of Governors of the Federal Reserve System from 1934-1948, was born in Logan, Utah, in 1890. During his long and noteworthy career, he earned a reputation as a leading businessman and banker, an original economic thinker, and an important decisionmaker. He dramatically affected the history of the System, and he helped guide U.S. economic policy during the crucial years of the Great Depression, World War II, and the postwar period. In 1928, Mr. Eccles was founder of what is believed to be the first multibank holding company in the country, First Security Corporation; he was its president until 1934. He managed the banks of the First Security Corporation through the early years of the Depression so successfully that none of the depositors lost a penny of their savings. In 1933, Mr. Eccles testified before the Senate Finance Committee regarding proposals to promote economic recovery, and his stimulating ideas captured the attention of several of the close advisers to President Franklin D. Roosevelt. As a long-time associate of Mr. Eccles notes, "He came to Washington with a distinct reputation as a businessman and able banker. Yet he was something of an anomaly among bankers and businessmen in the 1930s. He believed in a need for significant changes in the role of government and the attitudes of businessmen." While most of the financial community proposed a balanced budget and a laissez-faire economic policy to stimulate recovery, Mr. Eccles advocated government spending on public works to put Americans back to work and put buying power back in their hands. Mr. Eccles accepted a call to Washington early in the Roosevelt administration to lend his active and imaginative mind to the task of working the country out of the Depression. He first assumed the post of Assistant to the Secretary of the Treasury in January 1934 and was appointed Chairman of the Board of Governors of the Federal Reserve System in November of that year. He was the architect of the Banking Act of 1935, which made the Federal Reserve System a more effective instrument of monetary policy and gave it greater authority to regulate and supervise commercial banking activities. Believing it necessary to reduce the costs of home building and standardize home mortgages, Mr. Eccles drafted legislation that created the Federal Housing Administration. He also played an important role in helping to establish the Federal Deposit Insurance Corporation. Although it is not widely known, President Roosevelt came to rely heavily on Marriner S. Eccles for economic advice. A White House memo dated December 1935 identified Mr. Eccles as the best voice the administration had on banking and national monetary affairs. When he was designated Chairman of the Board of Governors in 1936, Time Magazine, featuring him in a cover story, said,"A good many people believe that Marriner Eccles is the only thing   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  •IF  that stands between the United States and disaster." In the subsequent years, while President Roosevelt was rethinking his own ideas on economic policies he turned to Mr. Eccles as a confidant and strategist. The President reappointed him as Chairman in 1940 and 1944. Throughout World War II, Marriner Eccles presided over an expansion of credit for increased production at home and abroad. After his term as Chairman expired in 1948, he stayed on as a member of the Board until 1951 and was a key figure in urging steps leading to the famous "Accord" between the Treasury and the Federal Reserve. Under the terms of the Accord, the Federal Reserve regained its ability to use monetary policy to combat inflation and was assured of its independence from the administrative branch of government. During his years as Chairman of the Federal Reserve Board, Mr. Eccles served as a member of the Board of Economic Stabilization and was U.S. delegate to the Bretton Woods Conference, out of which was created the World Bank and the International Monetary Fund. He was a member of the National Advisory Council on International Monetary and Financial Problems and served on the Advisory Board of the Export-Import Bank. In July 1951, after a career that he had fully expected to be "of comparatively brief duration," he left the Board, noting that it had been seventeen years since he came to Washington. He cited the succession of events, including "the war period and the special problems of its aftermath," as contributing to his long period of public service. He then returned to private life and the family business in Utah. Mr. Eccles' experience in banking dated from 1913 when, at age 22, he became president of the Hyrum (Utah) State Bank. He organized the Eccles Investment Company, a holding company for interests in the family estate, in 1916, serving as vice president and general manager. During his career, Mr. Eccles was also president, director, and chairman of several other companies, among them, the Eccles Hotel Company,the Amalgamated Sugar Company,the Utah Construction Company, Utah-Idaho Central Railroad, and Utah Power and Light Company. Marriner Eccles has been identified with American monetary policy perhaps more than any figure of his time. He remained a staunch defender of the independence of the Federal Reserve throughout his career. It has been said of him that, whether in public service or in private enterprise, he displayed a shrewd realism about the course of the American economy. History has proved his judgments accurate on many political and economic issues. Mr. Eccles died in December 1977, in Salt Lake City, Utah, at the age of 87.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis ••11■-  HISTORY OF THE BUILDING  On June 19, 1934, the Congress authorized the Federal Reserve to acquire property and begin construction of a building that would become the new home of the Board of Governors. Since its organization in 1914, the Federal Reserve had occupied quarters in the Treasury Building and rented space in privately owned office buildings. The architect of the Board building was Dr. Paul Philippe Cret, of Philadelphia, a Frenchman by birth. When he completed the building it was, in the estimation of President Franklin D. Roosevelt, one of the "foremost architectural achievements in the nation's capital." The Building Committee that the Board established had the assistance of the Commission of Fine Arts, the National Capital Park and Planning Commission, and the National Park Service. The Commission of Fine Arts, in giving its views as to the general architectural character of the building, said, "The nature of the functions performed by the Federal Reserve Board dictates an architectural concept of dignity and permanence." That concept was brought to the design by Cret. Construction began in January 1936, and the building was completed in the fall of 1937. On October 20 that year, President Roosevelt dedicated the building in a ceremony attended by Marriner Eccles, who was then Chairman of the Board of Governors, members of Congress, and others. Cret also designed the Folger Shakespeare Library and the Pan American Union building. The Federal Reserve building is thought to be his masterpiece and, along with those buildings, represents the best of the academic traditions of the 1930s. The apparent lack of architectural ornamentation, a hallmark of the classical style, gives the building its elegance. The window grillwork on the facade is the work of Samuel Yellin, a Polish immigrant who became known as one of the greatest artists in wrought iron. In designing the Board building, Cret selected marble and fixtures for the interior to harmonize with the classical design. The mosaics on the first and second floors are made of 28 varieties of marble. Adolf Miller, who was an economist, and the Board member who headed the Building Commmittee in 1936, also had a hand in the interior design. Many of the Greek motifs representing stability and productivity that are evident throughout the building reflect his affinity for Greek mythology. Marriner Eccles said of Miller,"His heart and soul are in the Reserve System, and his devotion reaches even further, to include his guardianship of the building." With passage of the Garn-St Germain Depository Institutions Act of 1982, the building was designated the "Marriner S. Eccles Federal Reserve Board Building."   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  .   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  I  I arriner S. Eccles Feseral Reserve Board Buildin  I   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  DEDICATION CEREMONY Friday, July 29, 1983  Prelude United States Army Field Band  Welcome Master of Ceremonies The Honorable Preston Martin Vice Chairman, Board of Governors  Address The Honorable Paul A. Volcker Chairman, Board of Governors  Music Interlude  Tribute The Honorable Jake Garn Chairman, Senate Committee on Banking, Housing and Urban Affairs  Comments Spencer F. Eccles Chairman and President, First Security Corporation and Director, Federal Reserve Bank of San Francisco   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Music United States Army Field Band  MARRINER S. ECCLES FEDERAL RESERVE BOARD BUILDING  Our economic progress has been the envy of the world. It has been built upon the principles of private initiative and enterprise. I do believe firmly that by monetary means exercised promptly and courageously we can greatly mitigate the worst evils of inflation and deflation...One thing is certain: We will not obtain stability unless we work for it. I have recommended placing responsibility for the exercise of these powers in the Federal Reserve Board, which was established by law to serve the best interest of the nation in banking and monetary matters...The management of the central bank must be absolutely free from the dangers of control by politics and by private interests, singly or combined.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  SELECTED QUOTATIONS OF MARR1NER S. ECCLES FEDERAL RESERVE BOARD MEMBER, 1934-1951 CHAIRMAN. 1934-1948  BY ACT OF CONGRESS OCTOBER 15. 1912  MARRINER S. ECCLES  Marriner S. Eccles, Chairman of the Board of Governors of the Federal Reserve System from 1934-1948, was born in Logan, Utah, in 1890. During his long and noteworthy career, he earned a reputation as a leading businessman and banker, an original economic thinker, and an important decisionmaker. He dramatically affected the history of the System, and he helped guide U.S. economic policy during the crucial years of the Great Depression, World War II, and the postwar period. In 1928, Mr. Eccles was founder of what is believed to be the first multibank holding company in the country, First Security Corporation; he was its president until 1934. He managed the banks of the First Security Corporation through the early years of the Depression so successfully that none of the depositors lost a penny of their savings. In 1933, Mr. Eccles testified before the Senate Finance Committee regarding proposals to promote economic recovery, and his stimulating ideas captured the attention of several of the close advisers to President Franklin D. Roosevelt. As a long-time associate of Mr. Eccles notes, "He came to Washington with a distinct reputation as a businessman and able banker. Yet he was something of an anomaly among bankers and businessmen in the 1930s. He believed in a need for significant changes in the role of government and the attitudes of businessmen." While most of the financial community proposed a balanced budget and a laissez-faire economic policy to stimulate recovery, Mr. Eccles advocated government spending on public works to put Americans back to work and put buying power back in their hands. Mr. Eccles accepted a call to Washington early in the Roosevelt administration to lend his active and imaginative mind to the task of working the country out of the Depression. He first assumed the post of Assistant to the Secretary of the Treasury in January 1934 and was appointed Chairman of the Board of Governors of the Federal Reserve System in November of that year. He was the architect of the Banking Act of 1935, which made the Federal Reserve System a more effective instrument of monetary policy and gave it greater authority to regulate and supervise commercial banking activities. Believing it necessary to reduce the costs of home building and standardize home mortgages, Mr. Eccles drafted legislation that created the Federal Housing Administration. He also played an important role in helping to establish the Federal Deposit Insurance Corporation. Although it is not widely known, President Roosevelt came to rely heavily on Marriner S. Eccles for economic advice. A White House memo dated December 1935 identified Mr. Eccles as the best voice the administration had on banking and national monetary affairs. When he was designated Chairman of the Board of Governors in 1936, Time Magazine, featuring him in a cover story, said,"A good many people believe that Marriner Eccles is the only thing   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  that stands between the United States and disaster." In the subsequent years, while President Roosevelt was rethinking his own ideas on economic policies he turned to Mr. Eccles as a confidant and strategist. The President reappointed him as Chairman in 1940 and 1944. Throughout World War II, Marriner Eccles presided over an expansion of credit for increased production at home and abroad. After his term as Chairman expired in 1948, he stayed on as a member of the Board until 1951 and was a key figure in urging steps leading to the famous "Accord" between the Treasury and the Federal Reserve. Under the terms of the Accord, the Federal Reserve regained its ability to use monetary policy to combat inflation and was assured of its independence from the administrative branch of government. During his years as Chairman of the Federal Reserve Board, Mr. Eccles served as a member of the Board of Economic Stabilization and was U.S. delegate to the Bretton Woods Conference, out of which was created the World Bank and the International Monetary Fund. He was a member of the National Advisory Council on International Monetary and Financial Problems and served on the Advisory Board of the Export-Import Bank. In July 1951, after a career that he had fully expected to be "of comparatively brief duration," he left the Board, noting that it had been seventeen years since he came to Washington. He cited the succession of events, including "the war period and the special problems of its aftermath," as contributing to his long period of public service. He then returned to private life and the family business in Utah. Mr. Eccles' experience in banking dated from 1913 when, at age 22, he became president of the Hyrum (Utah) State Bank. He organized the Eccles Investment Company, a holding company for interests in the family estate, in 1916, serving as vice president and general manager. During his career, Mr. Eccles was also president, director, and chairman of several other companies, among them, the Eccles Hotel Company, the Amalgamated Sugar Company,the Utah Construction Company, Utah-Idaho Central Railroad, and Utah Power and Light Company. Marriner Eccles has been identified with American monetary policy perhaps more than any figure of his time. He remained a staunch defender of the independence of the Federal Reserve throughout his career. It has been said of him that, whether in public service or in private enterprise, he displayed a shrewd realism about the course of the American economy. History has proved his judgments accurate on many political and economic issues. Mr. Eccles died in December 1977, in Salt Lake City, Utah, at the age of 87.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  HISTORY OF THE BUILDING  On June 19, 1934, the Congress authorized the Federal Reserve to acquire property and begin construction of a building that would become the new home of the Board of Governors. Since its organization in 1914, the Federal Reserve had occupied quarters in the Treasury Building and rented space in privately owned office buildings. The architect of the Board building was Dr. Paul Philippe Cret, of Philadelphia, a Frenchman by birth. When he completed the building it was, in the estimation of President Franklin D. Roosevelt, one of the "foremost architectural achievements in the nation's capital." The Building Committee that the Board established had the assistance of the Commission of Fine Arts, the National Capital Park and Planning Commission, and the National Park Service. The Commission of Fine Arts, in giving its views as to the general architectural character of the building, said, "The nature of the functions performed by the Federal Reserve Board dictates an architectural concept of dignity and permanence." That concept was brought to the design by Cret. Construction began in January 1936, and the building was completed in the fall of 1937. On October 20 that year, President Roosevelt dedicated the building in a ceremony attended by Marriner Eccles, who was then Chairman of the Board of Governors, members of Congress, and others. Cret also designed the Folger Shakespeare Library and the Pan American Union building. The Federal Reserve building is thought to be his masterpiece and, along with those buildings, represents the best of the academic traditions of the 1930s. The apparent lack of architectural ornamentation, a hallmark of the classical style, gives the building its elegance. The window grillwork on the facade is the work of Samuel Yellin, a Polish immigrant who became known as one of the greatest artists in wrought iron. In designing the Board building, Cret selected marble and fixtures for the interior to harmonize with the classical design. The mosaics on the first and second floors are made of 28 varieties of marble. Adolf Miller, who was an economist, and the Board member who headed the Building Commmittee in 1936, also had a hand in the interior design. Many of the Greek motifs representing stability and productivity that are evident throughout the building reflect his affinity for Greek mythology. Marriner Eccles said of Miller,"His heart and soul are in the Reserve System, and his devotion reaches even further, to include his guardianship of the building." With passage of the Garn-St Germain Depository Institutions Act of 1982, the building was designated the "Marriner S. Eccles Federal Reserve Board Building."   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  •  •  •  •  c)\ • •  •  •   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  auquiA .Wifind 111%  Voteheru,  • want to thank 14ou 4,motud,img, M4 ion., the 444i,oat4an oi the itrn the 9luet aedendat, Reelase Sueitckmq. aW,-eoi/ated the marosetou ormonmtemenU that we moklie ion, the 9rue. UPe eerLemonqWQ MOt ttr ond, to 64 tmebent r6efilveoentiing. TM tate huaand, Qepldie. at WA Ui4eidt to the 34derLat ReeTue Suadiing, and, c9 ux deefIttfi wi,th ,Lto 6eautth,41aett handoome 4,-LtenAdort,.  0441  41A0144,  •cm WON iorL. 'you that 14ou ari,e the ki,Lrueetort, oi wach ,initorLtant oegment oi dinevidoan W4 Ad Jconvidatutate lou on 'pun, Geh,Leu.emmt. • oend mq thank, oPidth mq be4t iort, tjourt, contiAued oucce. gime:144i, Ard4W21.4.-674/6Ajz_f  1   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  W1/€4   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  30ARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM I983 AUG -4 PH 12: 08 RECEIVED OFFICE OF THE MIRO;  SALLIE ECCLES  a3/  CO2.vg4g4 4feddAt...  aa4cZ )Le  ogLe Ze ete  4  l  ieZL%L°  ‘ 4.4Z " 1 C4 1 A1 4:  rd0? ).4  o e4   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  0La  mMg/  ,,  1  http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  4L4L.4.1  tj (  First Mrs. Eccles, Mrs. Steele, Mr. John Eccles, Mr. Spencer Eccles,  grandchildren and grandnieces and in-laws of Marriner Eccles --  we are delighted to have you all here on this special occasion. 144 14"611C/CtiriN  Senator Garn -- to whom we owe the idea and serves as  our chief overseer as Chairman of the Senate Banking Committee. Ckthigage4 Members of the House Banking Committee;Governors and  ex-Governors, Members of the Administration and our sister agencies,  staff and friends, e yirrld Welcome to you all.  Marriner Eccles was an extraordinary man of many dimensions,  personal, business, and as a public official.  It is, of course,  in the latter guise for. which we particularly honor his memory today.  I hope you will permit me a moment of personal reminiscence --  I may be the only Federal Reserve official in active service who  had at least a small personal acquaintance with the man.  I didn't cut my eyeteeth on the Federal Reserve -- but  I did write a thesis on Federal Reserve policy in college --  and to a oa49.  student, Marriner was the Fed in those days.  After all, he had been Chairman practically all my life.  his memoirs "Beckoning Frontiers", a little later.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  I read  -2--  And in the late 1950's, I came to know him personally -- to  sit at his feet, so to speak -- when he was a member of the  Commission on Money and Credit, and I was a staff appendage.  He was, quite naturally, a leading member of the  Commission -- he was never one to hide his views.  And I  learned then, too, -- perhaps his family can confirm it --  that he was an assiduous practitioner of the old maxim that  "repetition is the mother of learning."  Every member of that  Commission had indelibly imprinted on his memory that the  discount rate, open market operations, and reserve requirements  were indispensable, interrelated tools of monetary policy that  were not to be tampered with by the recommendations of any mere  Commission.  So, Senator Garn, when I testify before your  Committee that we do need reserve requirements, I can tell you  I learned it not only from a master, but from one of Utah's  most famous sons!  Marriner had gone to Washington some 25 years before I  met him -- a banker and businessman with fresh and strong views   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -3--  about how to deal with depression.  Among other things he could  be said to have found some of Keynes theories before Keynes --  his lesson was that deficits are not always a bad thing.  Sometimes I think we learned that lesson too well!  But Marriner, himself, of course applied his lessons  symmetrically.  After the war he fully recognized that we were  in a new era and that inflation had become the main threat.  He  turned his energies to dealing with it.  He left his mark on Washington and the country in its  institutions as well as its polcies.  As a young man in the  Treasury, he was a driving force behind the creation of the  FHA and the FDIC.  And then, when he became Federal Reserve  Chairman, he turned to reform of the banking system and the  Federal Reserve itself.  The Banking Act of 1935 stands as his  legislative monument -- dedicated to the basic proposition that  the Fed would be independent of both politics and private interests.  During World War II, Federal Reserve policy was frozen --  and interest rates were frozen in a fixed pattern -- to support  the war effort. jacket  http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  But that agreed wartime policy became a straight-  after the war was over, when the inflationary threat appeared.  -4-  I'm sure Marriner felt the cherished independence of  the Fed was being compromised in his efforts to change policy, and  his last years with the System were devoted to fighting the battle  to end the "pegs" on interest rates -- including staying as Governor  after his term as Chairman expired without reappointment.  The famous accord -- when monetary policy attained its  needed flexibility -- was as much his achievement -- alongside  Bill Martin's -- as anyone's.  In thinking about this occasion, I read President Roosevelt's  remarks in his dedication of the building -- some of his words are  relevant today.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  The banking system must be constantly alert to  changing conditions in order that it may be  prepared to adapt itself to the needs of our people.  --  The important powers of monetary policy are a  public concern, and they must be vested in a public  body.  But monetary powers possess no peculiar magic.  They are not omnipotent.  They must be coordinated with  the other major powers of the Government.  -5-  And he said, rightly, the structure of this building  ranks among the foremost of the Capital's architectural achievements.  Marriner Eccles, in eulogizing a colleague at the Board said:  "His heart and soul are in the reserve system, and his devotion  went even further to include his guardianship of this building."  Those same words are a fitting tribute to Marriner.  A visitor yesterday reminded me that not everything these  days depends on a building.  Taxi driver story.  had a building,  "Oh, I didn't know the Federal Reserve  I thought it was just on television."  Well, Sidney Hyman's biography of Marriner makes clear  the importance of the building in Marriner's thinking.  Joint Chiefs of Staff  "Once in Rockville, always in Rockville."  He defeated the combined forces of the Chiefs of Staff  in the midst of war.  What could be more fitting than that the building now  assume Marriner's own name.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -6-  His own words set in bronze and unveiled here today  on this memorial are the best testimony to his economic  philosophy and are the essence of the beliefs that he sounded  throughout his career at the Board.  They read:  "Our economic progress has been the envy of the world.  It has been built upon the principles of private inative and  enterprise.  I do believe firmly that, by monetary means exercised  promptly and courageously, we can greatly mitigate the worst  evils of inflation and deflation .  . one thing is certain:  we will not obtain stability unless we work for it.  I have recommended placing responsibility for the  exercise of these powers in the Federal Reserve Board, which  was established by law to serve the best interest of the nation  in banking and monetary matters .  the management of the • .  central bank must be absolutely free from the dangers of control  by politics and by private interests, singly or combined."   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -7-  His guardianship of those beliefs, of the Federal  Reserve itself, and this building is symbolized by our re-  dedication here today of the Marriner S. Eccles Federal Reserve  Board Building.  We appreciate the presence of all of you in  joining us today.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  utAii  /4,t  O'r  s, Mr. Spencer Eccles, First Mrs. Eccles, Mrs. Steele, Mr. John Eccle Marriner Eccles -grandchildren and grandnieces and in-laws of special occasion. we are delighted to have you all here on this , tt, Senator Garn  to whom we owe the idea and serves as  Banking Committee. our chief overseer as Chairman of the Senate " _Members  ••  _  "  Of the-Housel/LE7Tittee,.Governors and  and our sister agencies, ex-Governors, Members of the Administration  staff and friends,  Welcome to you all. many dimensions, Marriner Eccles was an extraordinary man of personal, business, and as a public official.  It is, of course,  his memory today. in the latter guise fax-which we particularly honor reminiscence -I hope you will permit me a moment of personal e service who I may be the only Federal Reserve official in activ the man. had at least a small personal acquaintance with ve -- but I didn't cut my eyeteeth on the Federal Reser y in college -I did write a thesis on Federal Reserve polic Fed in those days. and to a 0-a--61_ student, Marriner was the y all my life. After all, he had been Chairman practicall . his memoirs "Beckoning Frontiers" a little later   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  I read  -2-  personally -- to And in the late 1950's, I came to know him a member of the sit at his feet, so to speak -- when he was a staff appendage. Commission on Money and Credit, and I was the He was, quite naturally, a leading member of s. Commission -- he was never one to hide his view  And I  can confirm it -learned then, too, -- perhaps his family the old maxim that that he was an assiduous practitioner of "repetition is the mother of learning."  Every member of that  memory that the Commission had indelibly imprinted on his reserve requirements discount rate, open market operations, and tary policy that were indispensable, interrelated tools of mone dations of any mere were not to be tampered with by the recommen  Commission.  your So, Senator Garn, when I testify before  irements, I can tell you Committee that we do need reserve requ from one of Utah's I learned it not only from a master, but  most famous sons! 25 years before I Marriner had gone to Washington some with fresh and strong views met him -- a banker and businessman   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -3-  about how to deal with depression.  Among other things he could  theories before Keynes -be said to have found some of Keynes always a bad thing. his lesson was that deficits are not on too well! Sometimes I think we learned that less his lessons But Marriner, himself, of course applied  symmetrically.  we were After the war he fully recognized that  become the main threat. in a new era and that inflation had  He  turned his energies to dealing with it. country in its He left his mark on Washington and the institutions as well as its polcies.  As a young man in the  the creation of the Treasury, he was a driving force behind FHA and the FDIC.  And then, when he became Federal Reserve  banking system and the Chailman, he turned to reform of the Federal Reserve itself.  The Banking Act of 1935 stands as his  the basic proposition that legislative monument -- dedicated to politics and private interests. the Fed would be independent of both policy was frozen -During World War II, Federal Reserve fixed pattern -- to support and interest rates were frozen in a  the war effort.  jacket http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  me a straightBut that agreed wartime policy beca  ationary threat appeared. after the war was over, when the infl  -4endence of I'm sure Marriner felt the cherished indep change policy, and the Fed was being compromised in his efforts to fighting the battle his last years with the System were devoted to staying as Governor to end the "pegs" on interest rates -- including ointment. after his term as Chairman expired without reapp its The famous accord -- when monetary policy attained alongside needed flexibility -- was as much his achievement -Bill Martin's -- as anyone's. Roosevelt's In thinking about this occasion, I read President his words are remarks in his dedication of the building -- some of  relevant today.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis f  --  The banking system must be constantly alert to changing conditions in order that it may be prepared to adapt itself to the needs of our people.  --  The important powers of monetary policy are a c public concern, and they must be vested in a publi  body.  But monetary powers possess no peculiar magic.  They are not omnipotent.  They must be coordinated with  the other major powers of the Government.  -5this building And he said, rightly, the structure of s architectural achievements. ranks among the foremost of the Capital' e at the Board said: Marriner Eccles, in eulogizing a colleagu system, and his devotion "His heart and soul are in the reserve ship of this building." went even further to include his guardian Marriner. Those same words are a fitting tribute to everything these A visitor yesterday reminded me that not  days depends on a building. Taxi driver story,  had a building.  "Oh, I didn't know the Federal Reserve  I thought it was just on television."  makes clear Well, Sidney Hyman's biography of Marriner 's thinking. the importance of the building in Marriner Joint Chiefs of Staff e." "Once in Rockville, always in Rockvill Chiefs of Staff He defeated the combined forces of the  in the midst of war. that the building now What could be more fitting than  assume Marriner's own name.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -6today His own words set in bronze and unveiled here his economic on this memorial are the best testimony to he sounded philosophy and are the essence of the beliefs that throughout his career at the Board.  They read:  world. "Our economic progress has been the envy of the te initiative and It has been built upon the principles of priva  enterprise. ised I do believe firmly that, by monetary means exerc ate the worst promptly and courageously, we can greatly mitig evils of inflation and deflation .  . one thing is certain:  we will not obtain stability unless we work for it. I have recommended placing responsibility for the , which exercise of these powers in the Federal Reserve Board of the nation was established by law to serve the best interest in banking and monetary matters .  the management of the  rs of control central bank must be absolutely free from the dange ned." by politics and by private interests, singly or combi   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -7Federal His guardianship of those beliefs, of the lized by our reReserve itself, and this building is symbo s Federal Reserve dedication here today of the Marriner S. Eccle  Board Building.  We appreciate the presence of all of you in  joining us today.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  1  td,OLI  Eccles, Mr. Spencer Eccles, First Mrs. Eccles, Mrs. Steele, Mr. John of Marriner Eccles -grandchildren and grandnieces and in-laws this special occasion. we are delighted to have you all here on 441-1v 4-  A  Senator Garn  .serves as to whom we owe the idea and h,  te Banking Committee. our chief overseer as Chairman of the Sena -1,e d a!,/:•4 / rnors and MernberSo! The House Banking Committee,. Gove on and our sister agencies, ex-Governors, Members of the Administrati  staff and friends, Welcome to you all. many dimensions, Marriner Eccles was an extraordinary man of . personal, business, and as a public official  It is, of course,  honor his memory today. in the latter guise far-which we particularly reminiscence -I hope you will permit me a moment of personal ve service who I may be the only Federal Reserve official in acti the man. had at least a small personal acquaintance with rve -- but I didn't cut my eyeteeth on the Federal Rese cy in college -I did write a thesis on Federal Reserve poli  and to a oa-Is  student, Marriner was the Fed in those days.  lly all my life. After all, he had been Chairman practica le later. his memoirs "Beckoning Frontiers" a litt   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  I read  -2-  onally -- to And in the late 1950's, I came to know him pers a member of the sit at his feet, so to speak -- when he was a staff appendage. Commission on Money and Credit, and I was the He was, quite naturally, a leading member of views. Commission -- he was never one to hide his  And I  can confirm it -learned then, too, -- perhaps his family the old maxim that that he was an assiduous practitioner of "repetition is the mother of learning."  Every member of that  memory that the Commission had indelibly imprinted on his and reserve requirements discount rate, open market operations, monetary policy that were indispensable, interrelated tools of mmendations of any mere were not to be tampered with by the reco  Commission.  your So, Senator Garn, when I testify before  irements, I can tell you Committee that we do need reserve requ but from one of Utah's I learned it not only from a master, most famous sons! years before I Marriner had gone to Washington some 25 fresh and strong views met him -- a banker and businessman with   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -3-  about how to deal with depression.  Among other things he could  theories before Keynes -be said to have found some of Keynes always a bad thing. his lesson was that deficits are not on too well! Sometimes I think we learned that less his lessons But Marriner, himself, of course applied  symmetrically.  we were After the war he fully recognized that  me the main threat. in a new era and that inflation had beco  He  turned his energies to dealing with it. try in its He left his mark on Washington and the coun institutions as well as its polcies.  As a young man in the  the creation of the Treasury, he was a driving force behind FHA and the FDIC.  rve And then, when he became Federal Rese  ing system and the Chairman, he turned to refolm of the bank Federal Reserve itself.  The Banking Act of 1935 stands as his  basic proposition that legislative monument -- dedicated to the politics and private interests. the Fed would be independent of both policy was frozen -During World War II, Federal Reserve d pattern -- to support and interest rates were frozen in a fixe  the war effort.  jacket http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  became a straightBut that agreed wartime policy  inflationary threat appeared. after the war was over, when the  -4independence of I'm sure Marriner felt the cherished rts to change policy, and the Fed was being compromised in his effo ted to fighting the battle his last years with the System were devo including staying as Governor to end the "pegs" on interest rates -out reappointment. after his term as Chairman expired with attained its The famous accord -- when monetary policy ent -- alongside needed flexibility -- was as much his achievem Bill Martin's -- as anyone's. ident Roosevelt's In thinking about this occasion, I read Pres -- some of his words are remarks in his dedication of the building  relevant today.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  alert to The banking system must be constantly be changing conditions in order that it may people. prepared to adapt itself to the needs of our  --  are a The important powers of monetary policy in a public public concern, and they must be vested  body.  magic. But monetary powers possess no peculiar  They are not omnipotent.  They must be coordinated with  the other major powers of the Government.  -5of this building And he said, rightly, the structure tal's architectural achievements. ranks among the foremost of the Capi eague at the Board said: Marriner Eccles, in eulogizing a coll rve system, and his devotion "His heart and soul are in the rese dianship of this building." went even further to include his guar to Marriner. Those same words are a fitting tribute everything these A visitor yesterday reminded me that not days depends on a building. Taxi driver story.  had a building.  rve "Oh, I didn't know the Federal Rese  I thought it was just on television."  iner makes clear Well, Sidney Hyman's biography of Marr 's thinking. the importance of the building in Marriner Joint Chiefs of Staff "Once in Rockville, always in Rockville." Chiefs of Staff He defeated the combined forces of the  in the midst of war. the building now What could be more fitting than that  assume Marriner's own name.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -6here today His own words set in bronze and unveiled y to his economic on this memorial are the best testimon beliefs that he sounded philosophy and are the essence of the throughout his career at the Board.  They read:  envy of the world. "Our economic progress has been the of private initiative and It has been built upon the principles  enterprise. s exercised I do believe firmly that, by monetary mean mitigate the worst promptly and courageously, we can greatly evils of inflation and deflation .  one thing is certain:  work for it. we will not obtain stability unless we ty for the I have recommended placing responsibili Reserve Board, which exercise of these powers in the Federal interest of the nation was established by law to serve the best in banking and monetary matters .  . the management of the  from the dangers of control central bank must be absolutely free singly or combined." by politics and by private interests,   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -7-  al His guardianship of those beliefs, of the Feder our reReserve itself, and this building is symbolized by al Reserve dedication here today of the Marriner S. Eccles Feder  Board Building.  We appreciate the presence of all of you in  joining us today.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  July 27, 1983 Immediate Family of Marriner S. Eccles attending Eccles Dedication The special guests of honor: - Mrs. Sallie Eccles (Marriner's wife) Mrs. Elenore Steele (Marriner Eccles' daughter) and Mr. Harold Steele (son-in-law) (former President, First Security Bank of Utah) Mr. John D. Eccles (Marriner's son) and Mrs. Vera Eccles (John's wifer David (John's son) Sarah (John's daughter) - Mr. Spencer Eccles (nephew and CEO to the First Security Corporation) and family Mrs. Cleone Eccles (Spencer's wife) Miss Hope Eccles (Spencer's daughter) Miss Lisa Eccles (Spencer's daughter) Miss Katie Eccles (Spencer's daughter) Mr. Spencer Eccles (Spencer's son) - Mrs. Delores (Lollie) Eccles (Marriner's sister-in-law by brother George) (George headed First Security Corporation) She is legally blind.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Mrs. Barbara Johnson (Assistant to Mrs. Delores Eccles)  July 29, 1983 Time Schedule for Dedication Ceremony 1:55 pm  Board car with Michael Whitehouse leaves for Madison Hotel to pick up Mrs. Sallie Eccles.  2:00 pm  Two Board cars leave for The Capital Hilton Hotel to pick up Spencer Eccles family.  2:30 pm  Mrs. Sallie Eccles due to arrive in Board garage. Mr. Whitehouse will introduce her to Mr. Cremona, who will escort her to the Oval Reception Room.  2:40 pm  Mr. Spencer Eccles and family due to arrive in Board garage.  Mr. Whitehouse will greet the family and ac-  company them to the Oval Reception Room. 2:42 pm  Mrs. Sallie Eccles and Mr. Spencer Eccles and family escorted to Chairman's office by Messrs. Cremona and Whitehouse.  2:30 2:45 Pm  Senators, Representatives, Mr. McChesney Martin, former Board Members, and heads of Agencies escorted to Board Room or Chairman's office, as appropriate.  Board  Members and spouses should be available to gather in the Board Room to greet distinguished guests. 2:30 3:00 pm  U.S. Army Field Band plays incidental music.  2:50 pm  All guests in the Board Room proceed to reserved seating at the ceremony site.  2:56 pm  Chairman Volcker and guests escorted to ceremony site by Messrs. Cremona and Whitehouse.  3:00 pm  (Or as soon as everyone is situated)   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Mr. Cremona signals  the band conductor to commence playing the National Anthem.  This begins the official ceremony.  3:03 pm  Master of Ceremonies, Vice Chairman Martin begins the program.and introduces Chairman Volcker.  3:05 pm  Chairman Volcker delivers address.  3:10 pm  Immediately following the Chairman's address, Mr. Cremona signals the band conductor to commence the music interlude ("America the Beautiful" with narration).  3:13 pm  Vice Chairman Martin introduces Senator Garn.  3:15 pm  Senator Garn delivers Tribute.  3:22 pm  Vice Chairman Martin introduces Spencer Eccles.  3:24 pm  Spencer Eccles offers his Comments.  3:28 pm  Vice Chairman Martin concludes the ceremony by inviting special guests to the Board Room for a reception and  .  Board staff to a simultaneous reception in Dining Vice Chairman Martin presents mementos to Mrs. Room E. Sallie Eccles, Senator Garn, and Mr. Spencer Eccles. 3:30 pm  At the conclusion of Vice Chairman Martin's comments, Mr. Cremona will signal the band conductor to commence the closing march ("Stars and Stripes Forever").  3:34 Pm  Band plays incidental music while guests disperse to respective receptions.  5:00 pm   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Program concludes.  w  W  •  October 23, 1981 Frederick H. Schultz   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  The attached memorandum was given to a friend of mine by Marriner Eccles about 15 years ago. Mr. Eccles said that it was prepared for the President in response to a conversation which they had had concerning the weaknesses of the Federal Reserve System. It was accepted by President Roosevelt and served as the basis for the Banking Act of 1935.  Attachment  1  .• .• . 4. . , 1  -A,  r  I • IA NC.  %  \ i'\  \\I\  .4. %  I •4  .  Memo given to President 11/3/36  DESTIUSLE CHANGES IN TM:: ADMINISTRATION OF,THE FiZi.RAL ItEaliVE SYSTEM.  • .. # " • B22.21111_01* rnr...^tar7 n7.71% .s°7.ont to ..ns_1225.s , Fluctuations production, employment and the national income are determined by changes in in the available supply of cash and deposit'currency, and by the rate and character of monetary expenditures. The effect of an increased rate of spcndin y be modified by decreasing the supply of money, and intensified by -increasing the supply of money. Experience shows that without conscious control, the supply of money tends to expand when the rate of spending increases and tends to contract then the rate of spendinz declines. Thus, during the depression the supply of money instead of expanding to moderate the effect of decreased rates of spending, contracted, and so intensified the depression. This is one part of the -economy in which au.omatic adjustments tend to have an intensifying rather than a moderating effect. If the monetary mechanism is to be used as an instrument for the promotion of business stability conscious control and management are essential. nt. 2. ntr At the present time in • reliance must be placed upon increased governmental and private expenditures to bring about a rise in the national income. The most important role of monetary control at the moment is assuring that adequate support is available vhenever needed for the emergency financing involved in the recovery program. 5. Eple_orianet?.ry cortrbl in the rutrre., Two supremely important duties are likely to devolve upon the reserve administration in the near future. The first is assuring that a recovery does not result in an undesirable inflation. The second is assuring that a recovery is not followed by a depression. the 4. ,ThWIrt-L1.1e 1 1rie z±i 1" In order to endeavor, with soma prospects of success, (a) to renier prompt support for the emergency financing in case of need, (b) to prevent the recovery from getting out of hand, and (c) to prevent the recurrence of disastrous depressions in the future, it is, in my opinion, essential that the authority of the Federal Reserve Board should be strengthened in the folloving tays: 1. Complete control over the timing, character and volume of open market purchases and sales of bills and securities by the reserve banks should be conferred upon the Federal Reserve Board. 2. - Governors of the individual Federal ileserve Banks should be appointed annually by their Boards of Directors subject to the approval of the Federal Reserve Board. 5. lalcs=a2.z....z-2-raztIrz Although the Beard is nomLnally the suprene monetary authority in this country it is generally conceded that in the at it has not played an effective role, and that the system has been generally dominated by tke Gevernors of the Federal Reserve Banl:s. As a consequence, the Board has not commanded the respect and prestige to uhich its position would apparently   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  entitle it, nor has membershiD on the Board been as hirhly desired as it should be to attract the necessary talent. The great disrity in salaries has also contributed to this condition. This has led to the unfortunate result that banl:er interest, as represented by the individual Reserve Bank Governors, has prevailed over the public interest, as represented by the Board. • The relatively minor role pl7ed by the Boar d can, in q7 opinion, be attributed to its lack of authority to init intr open-rarket policy, and to the com731cte independence of the Reserve Bank Governors. G. Ozon rn.r!:et onr7,tiors. Far and away the most important instrumnt of reserve policy is the Do:.er to buy and sell securities in the open rarket. In this ray reserves, on e.7hich de7osits are base d, may be given to or tal:en amly from me=ber banks. It is not too much to say that who possesses this p=er controls the banking system, and, in large measure, the supply of money.  In the present administrative nrgani:ation the powe r to initiate open narket policy rests tith the reserve banks. The Federal Reserve Bor.rd possesses only the pc:7er to approve or disa =rove. Thus, the effective power over money rests rith the individual rese rve banks and not .- Tith the Board. Ecmever much the Board may desire an ener cetic buying or selling policy it is po7erless to initiate such a poljcy. On the other hand, the reserve banks' ability to carry out the poli cy is dependent on the Board. It should be noted that the Ear2: .t.ct cf 1 933 effected no real ch=ze in this respect. Frem 19E0 to 19E3 the Open ::arket Poli cy Committee as col-nosed of the trelve Federal Reserve Bank Governors. At present the Federal Cr.en Varket Coaaittee is likewise cemposed of the twel ve Governors and hence is . dominated by the same men rho rere responsible for the policy followed dur. inz the depression. The Governors) by the very nature of their appointLents, duties and associations, cannot help but be profoundly influenced by a narrow bankins rather than a broad social point of view. There Is no reason to sunpo3e that this administrati ve organization rhich functione.d so 1:adly in tile past, rill func ticn any better in tl:e future. The diffusion of zorer and responsibility, the root cause of the trouble, rem:71as. Over one hundred individuals are responsi ble, in various deExces, for -Le formulation of policy. Obviously the more peop le there are who share the resconsibility, the less keenly any one of them rill feel any personal reszonsibility for the policies adopted. It is therefore almost inevitable t!'..7.t such a loosely knit and crT.:berso me body as the Federal Reserve 1:dministration should be charactenised by inertia and indecisive action Eencrally. rcover, a cc72picte st:_lt: ate resultin: from a cli.a TreeLent of the reserve ban::s and the Board is clays possible. To correct this condition refern nu2t be in the direction of cc.1ce=atin: authority and . rcs.ionsibility for co.ltrol into the hands of a smal l policy fcrmulatine: body. 7. of rn-, r-rrn. As the S:rstr-ri has develo;,ed the Governor s, villo are not even mcr.Tio:IL:d in t:le .;.ct, have attained po3itions of major inportance in influencing policy. -;oreover, they arc entirely independent of the Board. If the power of approval of appointn ents of the Reserve Ba,lk   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Governors vere conferred en the Beard, the possibility of ladcof cooperation and friction would be obviated in the future, thile the prestige of the Board vould be enhanced. 8. tz1t.t4cn for c!.. ntrn1 In-1.*_r_T. The adoption of these suggestions would intmduce certain attributes of a real, central bank capable of energetic and positive action without calling for a drastic revision of the thole Federal Reserve Act. Private ownership and local autono=y are preserved, but on really iml>ortant questions of policy authority and responsibilityare cencentrated in the Ecard. Thus, effective control is obtained, thile the intense opposition and criticism that greets every central bank proposal is largely avoided.  November 5, 1934   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  MARRINER ECCLES:  A MAN WHO MADE ECONOMIC HISTORY by Michael Whitehouse  Fifty years ago construction was halted on the site of the Commerce Department building in Washington.  A few blocks to the west, near the  Federal Reserve Building, "World War I tempos", the temporary quarters housing the Department of the Navy and the Veterans Administration, lined the Constitution Avenue Mall.  Elsewhere in the Northeast, people were living  in makeshift structures too -- they called these camps Hoovervilles. A pall settled over the nation in 1934 while the people awaited the promise of a new president, Franklin D. Roosevelt.  He assured  the country that "the only thing we have to fear is fear itself." FDR then set out to mobilize the country and stimulate the economy through a series of revolutionary programs that were the basis of the New Deal.  The history of this era is quite well known, but less remembered  perhaps, are the people with new ideas that FDR brought to Washington to get the job done. The Federal Reserve has good reason to remember one such figure -- Marriner S. Eccles. Eccles dramatically affected the history of the Board of Governors and the Reserve System, and influenced economic history while helping the country survive the severe economic conditions of the Depression years.  He came to the Board in 1934 when President Roosevelt  appointed him the first Chairman of the reconstituted Board of Governors,   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -2-  and served the system until 1951.  When he died in December 1977,  the newspaper, The American Banker, said, "probably no banker had more impact on the lives of Americans in this century than the feisty Utah tycoon who served as Fed chairman... during the 1930s and World War II." Next month, in conjunction with the recently enacted amendment to the Garn - St. Germaine Depository Institutions Act, the Board will honor the former chairman by officially dedicating the Board building as the "Marriner S.  Eccles Federal Reserve Board Building."  The event,  which will be attended by members of Congress, the Eccles family and representatives from the banking community, will be marked by an address by Chairman Volcker and the unveiling of a memorial plaque that will hang in the entrance to the Grand Staircase. In commemorating Eccles' public service, participants will be paying homage to an exceptionally far-sighted thinker and strate ist.  He thoroughly believed in banking stability and secure money  management. Those beliefs led to his designing the Banking Act of 1935, which made the Federal Reserve a more effective instrument of monetary policy.  To do so, he fought a long battle with Senator Carter Glass,  the prime author of the Federal Reserve Act of 1913 and Chairman on the Senate Subcommittee, who did not support certain changes proposed by Eccles despite the grave economic conditions in the 1930s.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -3-  By winning President Roosevelt over to his side , Eccles succeeded in pushing through changes that are the foundation of the Federal Reserve today.  The Banking Act of 1935 gave the nation's Central Banking System  greater authority to regulate and supervise canmerci al banking activities and the major role in making open market transactions. The way Marri ner Eccles conti nual ly battled to wi n acceptance of his controversial positions was a trademark of a man whose ideas and character were quite unconventional for their day. "Marriner Eccles was something of an anomaly among bankers and businessmen in the early 1930s -- he was a wealthy westerner of Mormon heritage who believed in a need for significant changes in the role of government and the attitudes of businessmen", says Merritt Sherman, Assistant Secretary of the Board from 1946-51.  "His ideas on government spending were sacrilege  to the traditions of the Eastern establishment.  But he had been a business  success of first rank and a true leader -- they could identify with him on this ground." Mr. Sherman, who has actively served the Federal Reserve System for over 50 years, is something of a Board historian and came to know Chairman Eccles personally while working with him. "He came to Washington with a distinct reputation as a businessman and able banker, who had managed to get all his depositors through the Depression without losing a penny of their savings despite the grave number of bank failures around the country", remarks Merritt Sherman.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -4-  Indeed his background was unusual.  Marriner's autobiography, Beckoning  Frontiers, tells of an intriguing family lore. His father, David Eccles, was a Mormon polygamist with twelve children from his first marriage and nine, including Marriner, from the second. David Eccles, who had no formal education, created from scratch a business empire in timber, railroads, and construction that spanned Utah, Idaho, Nevada and Oregon. Raised as a Mormon, Marriner spent two years as a missionary in Scotland. When he was 22 years old, his father died.  He was given responsibility  by his mother for managing various enterprises that she had inherited and succeeded in making his family's estate into a multimillion dollar chain of businesses.  When General Electric acquired one of the Eccles  companies, Utah International, in 1976, it was the largest corporate merger in U.S. history. As a young businessman, Marriner proved himself extremely competent and successful in the capitalist spirit.  In later years, he formulated new  economic theories on dealing with the devastation of the depression and became an influential economic force for the New Deal. He first received some notice in the nation's capital in February, 1933 when Congress was hearing testimony from business leaders regarding proposals to help stimulate the economy.  Eccles, who was  recommended to the Congressional Committee by a Utah Congressman, advocated the ideas of compensatory goverrrnent spending, arguing that spending was necessary to stimulate the economy. This was extremely anathema to the conventional economic thinking of the day. The New York Times commented..."The paper he prepared and read before a Senate Committee was so far out of the beaten paths of economic thinking that there were few who really understood it, and it commanded attention and comment only from the few."   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -5-  Soon after Eccles' Congressional testimony, several of FDR's close advisors, known as the "Brain Trusters", heard what Eccles had to say and ultimately Secretary of War, George Dern, wrote Marvin McIntyre, a key Roosevelt adviser and assistant, suggesting that the president see the Utah banker.  Dern's note, on file in the Presidential Library in  Hyde Park, New York, reads as follows: "Mr. Marriner S. Eccles, of Ogden, Utah, is in the city... (We) had a long visit with him last night and we were so impressed with his grasp of the economic situation that we all agreed the president should see him.  He  has not asked for the opportunity to see the president, but will be glad to come and express his views if invited.  He is not looking for anything and the  president is the one who might be benefited by the interview." Such was FDR's introduction to Eccles.  Soon after, Marriner Eccles was  persuaded to join the Department of the Treasury as assistant to the secretary. There, in the spring of 1934, he was a major force behind the legislation creating the Federal Housing Administration with its insured, amortized mortgages designed to help invigorate the housing market.  Not intending to  make a career in Washington, Eccles prepared to move his family back to Utah.  Several months later, however, he was told that President Roosevelt  was considering him for appointment as a member of the Federal Reserve Board. At a White House meeting FDR broached the question.  Eccles replied that  the proposition was appealing to him but only if his suggestions for   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -6-  fundamental changes in the Reserve System would be considered. This qualification interested President Roosevelt and he asked to see something in writing. Two months later Eccles again met with President Roosevelt and presented a three-page, single-spaced memo that outlined reforms which would later become the essence of the Banking Act of 1935.  Eccles had  prepared the document with the help of Lauchlin Currie, then a Treasury Department official who was to become assistant director of Research at the Board.  Impressed with Eccles, FDR appointed him to the position of  Governor of the Board (the title then for Chief Executive Officer of the Board). During the next few years, while President Roosevelt was rethinking his own ideas on economic policies he came to trust Marriner Eccles as an important confidant and strategist. The fact that President Roosevelt relied on the advice and ideas of Eccles is evidenced in a memo that one of the president's senior staffers sent to another member of FDR's inner circle, Marvin MacIntyre. December 1935, it said in part:  Dated  "In speaking to the President today  about Marriner Eccles' usefulness to us as a speaker on banking and monetary national affairs -- and he is the best on these subjects that we have and we need him badly -- I told the President that Eccles' was extremely reluctant to deliver any addresses..." The note, which is on file in the Eccles collection of the University of Utah library, went on to say that Eccles was reluctant to speak in public because he was afraid of arousing opposition in the Senate to his nomination   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  -7--  as Chairman of the Board of Governors (as it would be reconstituted under the Banking Act of 1935, effective February 1, 1936). The memo continued:  "Eccles now is quiet as a clam.  He is refusing all kinds  of invitations, some of which if accepted would do us a world of good. We are under attack with our best gun silenced." President Roosevelt came to the defense of his "best gun" after this discussion.  In private, the president spoke with several opponents of Eccles  and, as was his persuasive manner, he succeeded in quelling much of the opposition. The cordial and mutually beneficial relationship between the two men endured through the years as evidenced by Roosevelt's unqualified endorsement of Eccles for Chairman of the Board of Governors. Chairman in 1936, 1940 and 1944.  Eccles was redesignated  In 1940, the president noted in a personal  letter to Chairman Eccles that if the Chairman was hesitant to take the post again because of a statute that stipulated that a Board member could not resume private banking practices for two years after leaving office, he (Roosevelt) would lobby Congress to repeal that condition. But a brief letter to Eccles in January of 1944 may have best revealed his sentiments about the central bank head.  It said:  "The time has came, the walrus said, to speak of many things -- among others, that your re-nomination goes to the Senate for confirmation for another term, whether you like it or not.  Enuf said."  While Eccles succeeded in cementing long lasting friendship with FOR, the same can not be said of his relationship with the nation's next president, Harry Truman.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Although Eccles ably presided over an expansion  -8-  of credit for America's European allies, and for domestic arms industries during the World War II years, President Truman did not reappoint Eccles as Chairman in 1948.  But Eccles felt, however, that his work for the Federal Reserve System  was not completed.  His convictions were such that he stayed on as a Board  member until mid-1951 and was a key figure in urging steps leading the TreasuryFederal Reserve Accord.  To stem the post-war inflationary pressures on the  economy, Eccles advocated an arrangment whereby the Federal Reserve would no longer "peg" (or buy) Treasury Department bonds at a fixed rate.  The accord  represented an understanding that the Federal Reserve Board would cease to monitize the public debt, and thereby assured continuance of the Fed's independence. On June 20, 1951, Eccles wrote President Truman: "It is now more than 17 years since I came to Washington to engage in a public service that I fully intended and expected would be of comparatively brief duration.  A succession of events, including the war period and the  special problems of its aftermath, led me to stay on...  But I now feel the  time has arrived when I can and should return to my home and private business affairs in the West." After leaving Washington, Eccles continued to campaign vigorously for causes he favored.  He was a staunch advocate of world population control,  and sought closer relations with China long before that was considered acceptable in financial and political circles.  He also resumed his business  career in Utah, becoming chairman of the First Security Corporation, a multi-bank holding company formed by Marriner and his brother George.  He also served as  chairman of the Amalgamated Sugar Company, one of the West's largest sugar processors, and Utah International, a construction concern   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  that  -9was acquired by General Electric. Says Wendell J. Ashton, publisher of the Deseret (Salt Lake City) News, and a man who knows the Eccles family well:  "The brothers inherited  their father's business acumen and they became giants in their own right." Mr. Ashton, who also sits on the Board of Directors of the Salt Lake City branch of the San Francisco Federal Reserve Bank, continues:  "The Eccles  had, and continue to have, a profound impact on the economic and cultural growth of the Mountain West region." It can also be said of Marriner Eccles that he had a profound impact upon the policies and structure of the Federal Reserve System.  The words  that will be set in bronze on the memorial are reflective of Chairman Eccles' philosophy and are quotations taken from several addresses he gave during his tenure at the Board. They read in part:  "I do believe firmly that by monetary means  exercised promptly and courageously we can greatly mitigate the worst evils of inflation and deflation... I have recommended placing responsibility for the exercise of these powers in the Federal Reserve Board, which was established by law to serve the best interests of the nation in banking and monetary matters."   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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