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1195 A meeting of the Board of Governors of the Federal Reserve SYst was held in Washington on Thursday, August 12, 1943, at 10:45 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Goldenweiser, Director of the Division of Research and Statistics Mr. Smead, Chief of the Division of Bank Operations Mr. Wingfield, Assistant General Attorney Mr. Thomas, Assistant Director of the Division of Research and Statistics Mr. Hansen, Special Economic Adviser in the Division of Research and Statistics Mr. Gardner and Miss Bourneuf, Senior Economist and Associate Economist, respectively, in the Division of Research and Statistics /11% szYmczak stated that Harry D. White, Director of Monetary Res e—c4 of the Treasury Department, had stated to Mr. Goldenweiser that 41418 desi,„ `Jus of conferring with the Board for the purpose of getting 'Illeleselion from the Board of its attitude toward the proposed plans 11(*illterAational monetary stabilization prior to the consideration of the , 14848 by the policy-making officials of the Government and the presv1011 Of the yi their conclusions to the President and Congress and prior to 8it of Lord Keynes, who was expected to be in the United States tt'°1111c1 the middle of September, at which time Messrs. White and Keynes Were _ '31Il'ectsd to confer for the purpose of agreeing upon a single plan. Rs to said that this meeting had been called for the purpose of con11 bl4cle t 8°111e of the problems involved and the response that should be Vhitels request. 1196 8/12/43 -2Copies were distributed of a memorandum prepared by Mr. Golden- weiser under date of August 11, 1943, setting forth some of the questions It'.i.could arise in this connection, and the memca.andum was read. A W4 general discussion of these questions ensued, during which there 'general agreement with the suggestion made by Chairman Eccles that the Board should not take a position with respect to the plans pending the toetings of the policy group, consisting of the Secretaries of the Trees1117 and State Departments and heads of other interested agencies of the CT(Nr4ment, and that when Chairman Eccles attended these meetings he eh°111c1 be in a position to discuss the problems involved without committtNg the Board. The question was raised as to whether the Administration WE18 COIrazitted to any plan, and it was pointed out that it was understood tllet one of the purposes of the forthcoming visit of Lord Keynes was to krrive at same agreement with Mr. White which might involve a compromise betWeen the two plans. It was also pointed out that no one at this time 00114 determine when hostilities would cease or what international condi'tl°48 Would prevail after they ceased. There was also a discussion of the conditions that should exist r°11°Willg the war to permit of the effective working of a satisfactory 111°IleterY stabilization Dlet Drogram, the conditions that might impair or corn64.11. destroy the effectiveness of such a plan, the manner and extent to Which. the plan might oins operate, and whether it would be better at the et tO ad°13t a less extensive procedure such as had been proposed by 'Vice President of the Federal Reserve Bank of New York. 1197 8/12/43 At the conclusion of the discussion, there was unanimous agreement on the following Points: 1. That the Board should not undertake to make any commitments with respect to the plans prior to meetings of the heads of the interested Government departments and agencies for the purpose of considering the policy Questions involved; and 2. That the Board would have no objection to meetings being held at the Federal Reserve Banks similar to the one being held in Chicago the latter part of this month if it were understood that the meetings Would be arranged by Mr. White through the Board, that attendance would be confined to representatives Of the Federal Reserve Banks and the Board and would not include officers of coimaercial banks, and that any representatives of the Board or the Reserve Banks attending the meetings would be entirely free to express their personal views without committing the Federal Reserve Banks or the Board as such on any question that idight be raised. At this 1181186n s and point Messrs. Goldenweiser, Smead, Wingfield, Thomas, Gardner and Miss Bourneuf withdrew from the meeting, and the letic)la stated with respect to each of the matters hereinafter referred tC wcIs then t Etken by the Board: The Pede , 'al minutes of the meeting of the Board of Governors of the Reserve System held on August 11, 1943, were approved unanimously. Memorandum of this date from Mr. Morrill, recommending, for the l'e(3118 stated in the memorandum, that the services of Tames Peninston as e"eria helper in the Secretary's Office be terminated, effective as °r the close of business on August 9, 1943. Approved unanimously. Thereupon the meeting adjourned. 7 Secretary.
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