View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies. Federal Reserve Bank of St. Louis  Collection: Paul A. Volcker Papers Call Number: MC279  Box 25  Preferred Citation: Cosmos Club Speech, 1984 May; Paul A. Volcker Papers, Box 25; Public Policy Papers, Department of Rare Books and Special Collections, Princeton University Library Find it online: and https://fraser.stlouisfed.orearchival/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. They further agree to request permission of the Princeton University Library (and pay any fees, if applicable) if they plan to publish, broadcast, or otherwise disseminate this material. This includes all forms of electronic distribution. Copyright The copyright law of the United States (Tide 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Under certain conditions specified in the law, libraries and archives are authorized to furnish a photocopy or other reproduction. One of these specified conditions is that the photocopy or other reproduction is not to be "used for any purpose other than private study, scholarship or research." If a user makes a request for, or later uses, a photocopy or other reproduction for purposes not permitted as fair use under the copyright law of the United States, that user may be liable for copyright infringement. Policy on Digitized Collections Digitized collections are made accessible for research purposes. Princeton University has indicated what it knows about the copyrights and rights of privacy, publicity or trademark in its finding aids. However, due to the nature of archival collections, it is not always possible to identify this information. Princeton University is eager to hear from any rights owners, so that it may provide accurate information. When a rights issue needs to be addressed, upon request Princeton University will remove the material from public view while it reviews the claim. Inquiries about this material can be directed to: Seeley G. Mudd Manuscript Library 65 Olden Street Princeton, NJ 08540 609-258-6345 609-258-3385 (fax) Federal Reserve Bank of St. Louis  Remarks by  Paul A. Volcker  Reserve System Chairman, Board of Governors of the Federal Federal Reserve Bank of St. Louis  1984 Cosmos Club Award  Washington, D. C.  May 3, 1984  institution, known in The Cosmos Club is a venerable place for men distinguished your own literature, as "a meeting re, and the fine arts." in the fields of science, literatu and out of Washington for For an itinerant civil servant, in for your annual award more than 30 years, to be chosen g of a mystery. will, to me, always remain somethin I realize the award, for That is especially true when Federal Reserve Bank of St. Louis  one actively in the first time, has been given to the motto of this government, in full knowledge that be -- "sic transit town might well be -- indeed should gloria mundi." with its I realize an occasion of this kind, provoke from the ready-made platform, is designed to state of the world, honoree some pithy remarks about the or at least his profession.  In approaching that task,  story of the response was reminded of that old Abe Lincoln on a rail: "If it of a man about to be ridden out of town just as soon decline." wasn't for the honor of the thing, I'd me they would rather Even my best friends have begun to tell n -- it's not, they not hear me talk about the economy agai but that they value say, that they value our friendship less their stock portfolios more. t from But I suppose it is fair to say that, apar you, am now part the world of economic policy, I, like of the world of Washington.  And I have been struck, on  -2--  , each of my returns, by how much the city has changed es of and how that reflects, and affects, the process government about which we all have to be concerned. I am not thinking primarily of the physical appearance or size of the place -- even though, at this time of year, we are all reminded of Lady Bird Johnson's beneficient influence on the landscaping.  Those multiplying  new buildings downtown, and the fact that the outer suburbs stretch out to practically touch those of Baltimore, could over be characteristic of the growth of many American cities the past 35 years. Federal Reserve Bank of St. Louis  But I can't neglect one material change that always strikes me as relevant.  When I was here as a  summer intern in 1950, and at the end of the summer had saved up enough for one celebratory dinner with my colleagues, one had, to the best of my memory, three first-class restaurants from which to choose; in any one of them you could expect to spend about half of New York prices.  Well, my friends and I ended up at  Harvey's, which then as now styles itself as the Restaurant of Presidents.  It is still here -- even  though, I hope not symbolically, it has descended into a basement.  But it has now been joined by dozens of  others, with cuisine and prices well up to world standards.  -3-  I don't mention that because I have any special competence as a gourmet, but to make the obvious point that the industry is not being supported by either a proportionate increase in the size of the Washington bureaucracy or in their salaries -- the latter, as you know, have often lagged well below increases in the cost of living, even at home.  Rather, I suspect it is  supported by geometric growth in the number and size of Washington-based trade associations and legal firms. To take only one example, in 1950, the American Bankers Association, the Independent Bankers Association, and the Reserve City Bankers Association all somehow existed without a Washington base.  Now they are all here, and  joined by numerous other major banking trade associations.  Another reflection is that leading law  firms in New York and in every major city now seem to find a Washington branch necessary, a circumstance practically unknown even 20 years ago.  And I think  that does tell us something of the nature of the change in American society and the processes of government. Every particular economic and social interest seems to be better organized, more vocal, and highly litigious; this is the place to be all three.  And all  those added and expensive dining tables help provide a Federal Reserve Bank of St. Louis  -4-  business of pleasant ambiance for going about the . influencing the processes of government  It is, I  complexity of suppose, a natural response both to the reach of the today's world and to the fact that the tly, has Federal Government, at least until recen our national expanded steadily into more aspects of life.  ic of its But I would also suggest it has a dynam  own. est group One articulate and well-financed inter as others feel encourages a kind of Hegelian antithesis the fellow first compelled to protect their interests from on the scene. Federal Reserve Bank of St. Louis  The question is whether, in the end, a more  nal interest coherent and rational synthesis of the natio emerges, or is likely to emerge.  Indeed, I sometimes suspect  ns and lawyers to an insidious temptation for trade associatio est of their own, develop a kind of professional self-inter ituents' or hardening positions beyond their typical const clients' needs and inclinations. There is another phenomena within government that I suspect is related.  As I indicated a moment ago, the  grown but total size of the Washington bureaucracy has nal popurelatively slowly -- about in line with natio lation.  The number of Congressmen and Senators has not  sions of changed at all, except to accommodate the admis from the Alaska and Hawaii to Statehood and the delegate District of Columbia.  But within each of those great  -5-  institutions -- the Executive and the Congress -- there have been enormous changes in the way they are manned just below the top. When one of my predecessors as Federal Reserve Chairman, Bill Martin, left the Treasury to take the job, he was one of only two politically appointed Assistant Secretaries in that Department; the Treasury in total only had five politically appointed "policy" officials.  By the time I was Under Secretary in the  early 1970's, the distinction between politically appointed and career officials had become blurred, but we still had three career Assistant Secretaries and a non-political Deputy Under Secretary among what had become a total of 11 at that level or higher.  Today,  to the best of my knowledge, there is no careerist among the 15 "policy" officials at the Assistant Secretary level or higher.  And unlike the situation years ago,  there are a dozen or two non-career people at the next lower level. I do not, of course, recite that evolution to make a special point about the Treasury, with which I happen to be most familiar.  I am certain that the same  general trends have been evident in the other great departments of government, probably more so. Paralleling these developments in the Executive, there has been until recently a virtual explosion in Federal Reserve Bank of St. Louis  -6-  staff on the Hill.  Much of that, of course, reflects  the efforts of Congress to keep up with the sheer volume of constituency-related work as the country grows and communication becomes easier.  I don't know of  any way to measure accurately "policy oriented" staff of either individual members of Congress or of Congressional committees, but I am told that House and Senate committees now have a total staff of more than 3,600, in contrast to only 540 in 1950.  The total size of Congressional  staffs is roughly 13,000. I should emphasize that I can't imagine the Congress acting effectively -- or at all -- today withS ut a sizable and knowledgeable staff well equipped SS th to participate in the legislative process and to keep an informed eye on the Executive.  But what in-  terests me is how all this concentration of po cally oriented talent interacts. It's not that "politics" and "lobbying" ever could or should be absent in Washington; that's a basic element in government. specialized and complex.  But  s certainly become more  And I am left with the nagging  question of whether the heavier layers of shorter-term and politically oriented officials, interacting with ever more highly organized and fragmented constituent grS ups, do not figuratively, as well as literally, feed Federal Reserve Bank of St. Louis  7  upon each other.  Does it in the end produce more and  better results, or the reverse? One certain effect has been to diminish the role of, and I suspect over time the average quality of, the professional long-term civil servant -- those in the Executive Departments and with Congressional committees who look upon government service as a career in itself, regardless of the changing political scene. I know when I was in college and graduate school, at institutions thought to be among the elite, a career in the foreign service or in some of the great domestic departments and agencies was considered by many a natural professional objective, a means by which those able and interested in government could expect over time to gain satisfaction and ultimately a reasonable measure of prestige from constructive public service. Such still exist, and  555oubt young careerists today  tend to be drawn from a wider spectrum of personal and educational backgrounds, which in itself can be good. But I also sense there is less enthusiasm among the best in college and graduate schools, whatever their S. rticular backgrounds, for a career in the civil service, or in government generally. We don't necessarily have to have a lot of symS.thy about the particular perspective fr5m which Federal Reserve Bank of St. Louis  8  John Ehrlichman, in the midst of the Watergate hearings, said that he could not in good conscience any longer recommend to the young a career in government.  But  there is room for concern when, for different reasons, our best among the young arrive at the same conclusion. I know that many remain strongly attracted by public policy issues, and they want to deal with them.  But I am  also struck by how often talented young people interested in government tell me they think the best thing for them to do is go to Wall Street, or to a law firm, or to a bank, make some money, and then think later about how they might enter government at a "policy level" position when they have both financial security and a real possibility of influencing policy. That's fine as far as it goes.  But I wonder how many will  really do it, and whether they will be familiar enough with the processes of government to be fully effective when they do enter. When the young do want to enter government directly, they seem much more likely than before to seek a Congressional staff position where they think they will be -- and in fact are likely to be -- more immediately exposed to, and can more likely affect, the important policy debates.  However, those  positions often do not imply the same career commitment. Some of the most politically active will, of course, set their sights on becoming a member of Congress Federal Reserve Bank of St. Louis  -9-  itself.  I share the often expressed feeling that the  individual Congressman or Senator today is probably better prepared, better educated, more articulate, and his more strongly motivated to "make a difference" than typical counterpart of 30 years ago. busier.  They are certainly  There are larger committees, more testimony,  and much longer and more numerous laws.  Whether those  ony committee hearings are as well attended, the testim among as well absorbed, and the laws as well understood . all the competing claims on time is another matter  I  wonder if there is not a fallacy of composition -of whether more individually energetic and able members Congress, accompanied by more numerous and more expert staff often eager and able to make their own imprint on the policy process, will, beyond a certain point, necessarily produce a more coherent and effective result, or whether they do not, in effect, tend to cancel each other out. Federal Reserve Bank of St. Louis  One possible result, it seems to me, is  which we to dilute the ability of any Administration -- to have for many years looked to set the national and legislative agenda -- to develop and carry through a consistent and coherent program of its own. I know, in working with the Congress, that many of the best feel a sense of frustration, and those frustrations may even grow as they, as a result of experience, intelligence, and sheer legislative  -10competence, reach natural leadership positions.  That  leadership is hard to express where there are so many centrifugal forces at work; the arts of constructive compromise, of bringing relevant experience to bear, of marshalling consensus -- the essential job of a Congressional leader -- are not made easier when so many are in a position to urge so many competing concepts of the public good, supported so aggresively by well organized specific interest groups. And, of course these days, it must all be done in the Sunshine.  Sunshine may at times be a healthy and  essential antidote to festering sores.  But, carried to  excess, I have seen it wilt some tender plants that need quiet cultivation.  Sometimes, when legitimate  efforts to reach reconciliation will be interpreted as public defeat or "selling out," it seems to have the practical effect of simply hardening antagonistic positions. we are not going to return to a simpler time. The public is going to demand -- and deserve -- full information. We have a more diverse, better educated society, and complications rise geometrically. As the government does more, and limits on its range of activity once philosophically taken for granted are exceeded, the insidious tendency is to assume that every new initiative is precedent for doing still more. Federal Reserve Bank of St. Louis  -11-  Any President is going to demand that the bureaucracy respond to his priorities. The Congress needs to be equipped to do its job of oversight and to make its imprint on legislation wherever initiated. I yield to no one the right to rail about the "bureaucracy," with its tendency to repel different ideas and new initiatives.  I respect and value the  work done on the Hill to raise important questions, to facilitate legislation, and to air problems.  And there  is no doubt that groups in the society affected by government need to have ways to articulate these concerns, and indeed to bring their expertise and experience to bear. But,I also believe we could help the cause of effective government, rather than harming it, if we more consciously took into account the need for achieving consensus and efficiency when debating aspects of the process of government.  The aim would be simple enough -- to  restore a better balance among responsiveness, professionalism, and continuity.  Nor do I think those  characteristics need be competitive; they can be mutually reinforcing.  Change isn't an end in itself, and it  needs to be tested against experience. Federal Reserve Bank of St. Louis  -12-  I am thinking in part of matters upon which I have no special competence or specific proposals. Would government operate more effectively and coherently if we collectively developed greater restraint on federal initiatives when states and cities might reasonably be called upon to respond (or not to respond) depending upon their political judgment and their own analysis of whether the matter at hand justifies the money spent, the regulations imposed, or the laws written? Do the campaign financing laws and the PAC's phenomena exaggerate the influence of particular interests unduly; and, would we be better off exerting more discipline on the growth of Congressional and Executive "policy" staffs? Have we paid enough attention to developing and maintaining a core of expertise and a high level of professionalism in the Executive, responsive to the needs of any President? Do we need a better way to limit what we are willing to spend to what we are willing to pay for?  Even more  fundamentally, the occasional debate about Consitutional issues, such as the term of Congressmen or the President, has implications for many of my more mundane concerns. I have no formula for any of this -- my point is that all of them bear on questions of the effectiveness of the government machine. Federal Reserve Bank of St. Louis  -13-  have I would comment upon the one area where I had direct experience.  As I implied earlier, my  t and observation suggests that the well of talen been fully effectiveness in the civil service has not replenished over the years.  Too many of the best leave  entering at prematurely, and too few of the best are the bottom.  More political appointees are a perceived  sense, substitute, but that practice, in a structural Federal Reserve Bank of St. Louis  can he part of the problem. and to More talent would be encouraged to come of them stay at the junior or mid-levels if the best rs at could look forward to culminating their caree -- and the higher levels of responsibility and salary r. former seems to me as important as the latte  That  ion will require, among other things, stricter justificat abinet of political appointments, certainly at sub-C taries levels and the number of Under and Assistant Secre reversing to some degree the postwar trend. If that's to have a ghost of a chance, any the Administration will need to have confidence that to civil service is in fact both capable and responsive their direction and needs.  I've been around long enough  deeply to recognize that a new Administration is often h to see skeptical on that score -- but also long enoug Cabinet Members come to respect and rely upon the best  -14-  of their inherited staff, often at the expense of the less experienced "inner and outer."  And it won't work  unless the civil service, and thosehave a strong ethic of responsiveness to their political masters, while retaining the strong sense of institutional memory, continuity, and expertise that is its strength. The best have it now.  I have seen it work in key  departments with strong morale and sense of purpose. But I also know it hasn't been uniformly true. The best are getting too few, and we need to find more imaginative ways of motivating and training them. Some of the responsibility must lie with the professional schSS ls of government at leading universities, some of which seem to be groping for their mission.  Within  government, I question whether a natural departmental S. rochialism and fear of elitism has not discouraged programs to promote tranfers among kindred departments, more emphasis on a variety of training assignments and experience -- perhaps including long sabbaticals outside government.  Alongside that goes the right of retirement  at reasonable pensions when a "fast track" doesn't work S ut, and the right to fire.  None of that is new, but  sS mehow we don't seem to implement it well. Maybe I'm biased.  I represent an institution  that, in its basic framework, is encouraged to maintain professionalism and continuity. Federal Reserve Bank of St. Louis  Of course, the Federal  -15-  Reserve Act was more fundamentally designed to maintain a certain insulation from partisan or passing political pressures, while maintaining a sensitive awareness of what is going on beyond our marble walls. In those respects, while quite unlike the typical department or agency, we share some of the characteristics of other independent regulatory bodies -- only more so. I suppose the Federal Reserve must, in its organizational essentials, be among the least changed of all governmental instrumentalities during my years in Washington.  It  certainly has more unique characteristics, with its regional framework and built-in elements of private consultation and participation. The strong currents affecting all government have had their impact.  Staff has grown.  The sheer complexity  of the economy and our broadened regulatory authority are reflected in 894 pages of regulation today.  I am glad  to say that is below the peak, but it is still 10 times what it was in 1950.  We spew out dozens and dozens of  statistical series about as fast as we can produce them -- even if we sometimes doubt the utility of so much volatile information so frequently -- in response to the demand for openness.  Sometimes it's alleged we  lack accountability, but you will understand that charge carries less bite to members of the Federal Reserve Board who collectively made 143 formal appearances Federal Reserve Bank of St. Louis  -16-  before the Congress during the past four years; I personally also made 53 less structured visits last year as well.  In contrast, during Bill Martin's first four  years, Members of the Board testified 28 times. I don't want to suggest that trend is any different from that of, say, Cabinet officers, some of whom carry a much heavier load of Congressional contacts. I want to confuse quantity with quality.  Nor do  Indeed, it's  hard to believe -- I don't believe it -- that more frequent testimony means more carefully prepared testimony, or that members of Congress will be as well prepared to receive it, amid the enormous numbers of conflicting demands on their time.  That's one reason  they need the staff. There has, of course, been a change in another respect.  Thirty years ago, I can affirm from experience,  that when you asked a Washington taxi driver to take you to the Federal Reserve, you had better be prepared with the address.  A few months ago, a visitor reported a  response with a qualitative difference.  The taxi driver  responded to his direction with an exclamation:  "Oh,  the Federal Reserve, I didn't realize they had a building.  I thought they were just on television!"  Well, if we haven't advanced in terms of locational familiarity, we have in terms of public consciousness. Federal Reserve Bank of St. Louis  -17-  I suppose it is to that change that I can attribute this award today. But that awareness also naturally raises questions about our unique role within government, how we go about our business, and whether our special structure is still justified in this day of openness and political responsiveness.  The questions are hardly new.  The  issue is whether the answers also stand the test of time. My point is not to debate the popularity, or even the wisdom, of current monetary policy. stock in trade -- but not tonight.  That's my  What is relevant is  that the fundamental justification for the structure of the Federal Reserve System is to remove that policy to a degree from the passions of passing politics -- politics in the narrow sense -- and from electoral considerations. More positively, the question is whether the structure in fact encourages professionalism and a "long view" in its decision-making, and whether, at the same time, its decisions are adequately informed, in the language of the Federal Reserve Act, by awareness of the needs of "business and commerce." From one point of view -- that of a standard governmental department -- the structure of the system undoubtedly looks like the proverbial camel, designed by committee. Federal Reserve Bank of St. Louis  It combines a central supervisory and  -18-  coordinating body in Washington -- the Federal Reserve Board -- with twelve regional banks whose Presidents participate directly in decisions on monetary policy. The Banks also have knowledgeable private citizens, drawn from various walks of life, on their boards of directors; they participate in the regional administrative management and provide a flow of information about the economy and policy proposals even if they are shielded from monetary policy responsibility (and even advance knowledge of key decisions).  Obviously, there can be  stresses and strains internally -- they are a byproduct of the effort to assure a variety of points of view.  But I would also submit that, like a camel, it  works, and works effectively against those tests of competence, continuity, and responsiveness. There exists a definite esprit de corps.  We  have lost a lot of good people over the years to the private sector -- I am always struck by how many of those commentators and critics of our policies were themselves trained in the Fed; I also think we can fairly say so many leave and assume positions of prominence because so many good young people were attracted to come in the first place.  Through the years, the sense  of enthusiasm and dedication to a common goal -- among the Board Members themselves, the Reserve Bank Presidents, the talented professional staffs, the boards of directors, Federal Reserve Bank of St. Louis  -19-  and the supporting staffs -- have remained high, and that isn't a matter of creed or oath. Beyond our role in monetary policy, narrowly defined, the Federal Reserve also has responsibilities in the area of banking supervision and regulation, the provision of certain key banking services, acting as fiscal agent of the government and in consumer affairs. Whether or not each and every one of those functions is inherent in central banking, I think we must assume that the Congress itself, in providing us with added responsibilities through the years, has repeatedly recognized that certain functions may be better done by an independent body, free from day-today partisan concerns and with continuity of purpose. The challenges have, in the end, come from those dissatisfied with monetary policy at particular times, from those who, for whatever reason -- intellectual, or doctrinal, or political -- want monetary policy to respond to their particular conceptions.  That, of course, is the  basic reason a high degree of continuity and insulation was provided the Federal Reserve in the first place. The basic concept still seems to me sound. So in this city that has seen so many changes in my 30-year acquaintance, I am glad to say that some fundamentals have remained. Federal Reserve Bank of St. Louis  I, and my colleagues, are  -20constantly aware that we must work hard to justify our special place and trust.  A special status implies  special responsibilities -- responsibilities to take monetary and other actions that we believe to be appropriate viewed against the continuing long-term public interest in stability and sustained economic growth, and policies we can explain and defend in the public arena. You can well imagine that, at the risk of driving the selection committee to drink, I'd like to interpret this occasion as a special Cosmos Club blessing on our structure; but I won't.  What I do hope you will permit  me to say is that the honor you do me can only underscore the need for all of us in the Federal Reserve to conduct ourselves in ways that maintain the confidence we try to earn. Federal Reserve Bank of St. Louis  The Cosmos Club 1. What Is The Cosmos Club? The Cosmos Club is a men's club incorporated in Washington, D.C. in 1878. The Clubhouse is located at 2121 Massachusetts Avenue, N.W. Its founders were men active in science, literature and the arts. Since that time the Club has elected as members men who have done meritorious original work in one or more of these areas, who are well known to be cultivated in one of these fields, or who are distinguished in a learned profession or in public service. 2. What Is, The Club Offer Its Memb ,rs? The Club offers fellowship among men having interesting careers in science, literature and the arts, in the learned professions, or in public service. Thus, a member who enters the Club in search of congenial companionship will find it in full measure. But should he seek solitude, his privacy is respected. Easy chairs in the library, for instance, provide a retreat for quiet reading. The social and cultural programs of the Club are extensive. These include Monday evening lectures, monthly Noon Forums, occasiS.l wine tastings, musical concerth, book-and-author ners, theater parties, Spring, and Fall Open House, the presentation a the Cosmos Club Annual Award, art exhibits, receptions fO r new members, the annual Club Anniversary dinner. The traditional Monday night Members' Buffet is a particularly so ble and informal affair, providing unusual camaraderie. Additional information is available in the Club office, and the monthly Club Bulletin and special mailings provide current information. Members enjoy reciprocal privileges with other selected clubs, foreign and domestic. An up-to-date list and other information are available at the Club office. Members have the privilege of entertag guests at the Club for meals and most Club programs, and may arrange for male guests to occupy sleeping rooms. A member may secure a "woman's privilege card" for his wife, entitling her to use the ladies' parlors, to partake of meals in the Garden Dining Room, and to participate in various social and cultural activities of the Club. She may also invite guests. Nearly 20 standing and special committees are appointed annually, involving about 100 members. Committee service provides a stimulating opportunity to benefit the Club, and is often the route to elective office. Federal Reserve Bank of St. Louis  3. What Club Facilities Are Available? The Club's home was once considered one of the finest private residences in Washington. After the Club acquired the property in 1951, extensive structural changes and additions made it ideal for Club purposes. This lovely French Renaissance structure offers spacious dining rooms, convenient meeting places, comfortable lounges, and an interesting cocktail room. The library is on the second floor, and the billiard room is on the third. Also on the third floor are rooms which members may engage for private meetings at which food and beverages may be provided. The attractive, spacious Warne Lounge (second floor) was once a ballroom. Here are held musical concerts, new member receptions, dances and other important events. The Powell Auditorium is used for the Monday evening lectures (open to guests of members), and for special events such as wine tastings, luncheons and dinners for large groups. The room may be reserved by members for private gatherings by arrangement with the Club Manager. Elsewhere are a barber shop, a locker room with shower, a card room, and sleeping rooms for members and male guests. Meal service is provided for breakfast, lunch and dinner. (A schedule of meal hours is available). A special "brunch" is available for members and guests on Sundays, and an extensive buffet dinner is provided on Thursday evenings. Many guests of members have complimented the Club for its excellent cuisine and gracious table service. Wine, cocktails and other beverages are available in the Ladies' Parlors, the "Old Club Room" (first floor), and in the Warne Lounge and dining rooms. Limited parking is available adjacent to the Clubhouse for a modest parking fee. Tipping of employees is not permitted. Members express their appreciation of employee services through contributions to a Christmas Fund for employees. 4. How Is The Club Governed? The Cosmos Club was incorporated as a non-profit, private men's club on 13 December 1878. The articles of incorporation specify that the Club shall be under the general charge of a "Board of Management" under regulations established by the Club's Bylaws. (The Bylaws are available in the Club office). The Bylaws provide among other things for the election of officers, the establishment of committees and the admission of new members. Elections are held annually at a meeting of the Club, at which reports of officers and committees are also received and other appropriate business is transacted. The Board of Management engages a General Manager who is responsibile for daily Club operation. Federal Reserve Bank of St. Louis  2  5. How Are New Members Elected? The Cosmos Club is composed of men (a) who have done meritorous original work in science, literature or the arts; or (b) who, though not professionally occupied in science, literature or the arts, are well known to be cultivated in some field thereof; or (c) who are recognized as distinguished in a learned profession or in public service. The procedure for becoming a Cosmos Club member is not unlike that of other organizations. It requires that two equally responsible sponsoring Club members (each of whom has belonged to the Club for at least one year) cooperate in completing a form (available at the Club office) giving the nominee's professional record. Each sponsor also submits a letter telling of the nominee's qualifications and merits. These steps are followed by the usual letters of reference, principally from Club members; however, letters from informed non-members are acceptable. Other data showing the candidate's achievements, etc. which would be helpful to the Admissions Committee may also be submitted. The process requires three to four months on the average. Membership is limited by the Bylaws to 2500, exclusive of Senior and Emeritus members. Because the sponsoring members are careful to propose only those men whom they believe meet the requirements, a very high proportion of nominees is elected to membership. Receptions for new members are held in the spring and in the fall. 6. What Costs Are Involved? The initiation fee for men under the age of 40 at election is $250. For those 40 and over, the fee is $400. The initiation fee may be paid in full on election or in eight equal quarterly installments. The annual dues depend upon the class of membership. Members in Resident Status are those who reside, maintain a residence, or are engaged in any occupation within 30 miles of the Clubhouse during more than half of the calendar year. Members in Non-Resident Status are all others. The Club Bylaws also define Senior Members and Emeritus Members. The following table shows the annual dues, which may be paid in quarterly installments:1 Members under 40 Members 40 and over Senior Members Emeritus Members Established January 17, 1977 Federal Reserve Bank of St. Louis  3  Resident  Non-Resident  $200.00 400.00 200.00 0  $100.00 200.00 100.00 0  Three special categories of privileges are Associate, Foreign Visitor, and Guests (see Bylaws). Fees and charges for these categories are covered in the Bylaws. Charges for meals and beverages are recorded on the member's order slip which the member signs, with his assigned membership number. Cash transactions are permitted only at the office desk where tobacco, candy, brochures, books, postcards, etc. may be purchased. The office will provide information on charges for sleeping rooms, meeting rooms, etc. Itemized statements are sent to members monthly. 7. What Are The Responsibilities of Members? Members are expected to act as gentlemen in the Clubhouse and on Club grounds. They are expected to know and abide by the House Rules, copies of which are available at the Club office. Members are likewise responsible for their Club guests. Guest names are to be recorded in a book to be found at each Club entrance. After one membership year, members are responsible for continuing the vitality and status of the Club by sponsoring qualified men for membership. 8. What Additional Information Is Available? A monthly Club Bulletin is mailed to members, with an informational Supplement. A directory of Club members is published periodically in a book which also contains House Rules, Articles of Incorporation, Bylaws, the then current officers and members of the Board of Management and committee members, and lists of past presidents, secretaries and treasurers. An up-to-date roster and list of committee members is available for review at the Club office. A color brochure descriptive of the Club, and a book on the Club founders are available for purchase in the Club office. Available gratis are a descriptive pamphlet on the Club library and a leaflet describing certain sculpture in the Club. Other publications on the history of the Club are in the library. MEMBERSHIP GOALS AND OBJECTIVES COMMITTEE February 1977 Federal Reserve Bank of St. Louis  4 Federal Reserve Bank of St. Louis  May 18, 1984  Mr. Charles G. Dobbins 1545 Eighteenth Street, N.W. Washington, D.C. 20036 Dear Mr. Dobbins: Your note reminds me I should have thanked you "officially" for making that affair at the Cosmos Club so nice for me and my family. I hadn't seen the letter to the Post, but I can't help but agree with the last phrase! When I get out from under, we'll polish the text and get it to you. Sincerely,  PAV:ccm  Removal Notice The item(s) identified below have been removed in accordance with FRASER's policy on handling sensitive information in digitization projects due to copyright protections.  Citation Information Document Type: Newspaper article Citations:  Number of Pages Removed: 2  Dobbins, Charles G. "Blame for the Deficit." Washington Post, February 24, 1984.  Federal Reserve Bank of St. Louis  CHARLES G. DOBBINS 1545 EIGHTEENTH STREET. N.W. WASHINGTON. D. C. 20036 (202) 483-7199  May 10, 1984  The Honorable Paul A. Volcker Chairman Board of Governors Federal Reserve System Washington, D.C. 20551 Dear rr. Volcker: One week ago you gave the Cosmos Club what members are saying was the finest Annual Award occasion of all! Your warmth and cordiality made everything easy for the audience and for me as chairman of the Awards Committee. I was pleased to note that the Post on Saturday reported some of your remarks, and with fair accuracy, though we were not aware of a reporter's presence. Incidentally, when I wrote a letter to the Post (attached) on February 24, it seems I was more prophetic than I knew. On behalf of the Awards Committee and of myself, let me thank you for a most informative and delightful address. Sincerely, CA Chairman, Awards Committe, The Cosmos Club  /  11 Ott95 ),A.A OJOb C  1#1  tex Federal Reserve Bank of St. Louis  Vint ' ) ,t  /11V41 ) eit/14' •  I'  7))/ 1334 JAN I G r  oe e  2121 Massachusetts Avenue, N. W. Washington, D. C. 20008 (202) 387-7783  -7  Li  LEONARD J. GRANT President  January 13, 1984  The Honorable Paul A. Volcker Chairman Board of Governors Federal Reserve System Washington, DC 20551 Dear Chairman Volcker: I was indeed very pleased to learn from Mrs. Mallardi that you have agreed to accept this year's Cosmos Club Award. I can assure you that there is no need to be concerned about the length of your address. Mrs. Mallardi indicated that your preference would be for the month of May rather than April. We would like to suggest either a Tuesday or Wednesday evening, perhaps one of the following: May 1, 8, 15, 22, 29 or 30. If none of these u would find a dates would be convenient, then perhaps 10, 17 or 31. Ma either Thursday evening preferable, Again, may I express my personal delight and enthusiasm on your selection for this year's award and also your kind acceptance. Yesterday I confidentially mentioned this matter to a mutual friend of ours, William McChesney Martin, who replied that the Club could not have made a better choice nor found anyone who was more dedicated to serving the public and our country. An Arrangements Committee will be appointed shortly to work out the details for the Awards Ceremony. Meanwhile, I look forward to hearing from you on which date would be preferable. Sincerely,  LJG/fr Federal Reserve Bank of St. Louis  0,11)4.  BOARD 1.'7 GOVEr,,,,I,, rrIT7  ;933 NOV 29 Al  -2121 Massachusetts Avenue, N. NV. Washington, D. C. 20008 9: 2 t: (202)387-7783  November 28, 1983  (/0  LEONARD J. GRANT President  The Honorable Paul A. Volcker Chairman Board of Governors Federal Reserve System 20551 Washington, DC Dear Chairman Volcker: It gives me great pleasure to advise you that the Board of Management of the Cosmos Club, on recommendation of the Awards Committee, has selected you as the 1984 recipient of the Cosmos Club Award. The Award is presented annually to a person of national or international standing in a field of science, literature, the fine arts, • the Award. or public service. An honorarium of $1,000 accompanies Previous recipients include scientist Edwin Land, art historian Kenneth M. Clark, actress Helen Hayes, and poet Archibald MacLeish. It has been customary to confer the Award at a public ceremony in the Cosmos Club auditorium in the spring. The recipient is expected to deliver an address of about 30-40 minutes and to provide a manusEs,Iat_of the_remarks which is published by the Club77- The pfriTteff--version may be -a—grt longer tharitt-d—daai'ess. I enclose three examples of addresses by former recipients to give you a general idea of the type and range of these papers. I sincerely hope that you will honor us by accepting the Award. As noted above, the presentation ceremony usually takes place in the spring, preferably in April or May on a Tuesday or Wednesday evening. A reception and dinner at the Clubhouse precedes the formal ceremony and address. We would be pleased to entertain a few of your personal guests at these events. I am indeed delighted to have this opportunity to write this letter. Knowing of your very busy schedule, I look forward with pleasure to hearing from you so that we can reserve a mutually convenient date for the Award ceremony next year. Sincerely,  El LJG/fb Federal Reserve Bank of St. Louis  RA 7
Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102