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I1173 A meeting of the Board of Governors of the Federal Reserve SYstelt Was held in 'Washington on Tuesday, June 9, 1942, at 3:00 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman McKee Draper Evans Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Thurston, Special Assistant to the Chairman Mr. Goldenweiser, Director of the Divi— sion of Research and Statistics Mr. Thomas, Assistant Director of the Division of Research and Statistics Mr. Stark, Assistant Director of the Division of Research and Statistics ALSO PRESENT: Mr. Frederic A. Delano, Chairman of the National Resources Planning Board Mr. Beardsley Ruml, Advisor to the Na— tional Resources Planning Board Chairman Eccles stated that Mr. Delano's letter of June 1, 1942, relating to the possibility of developing a plan for coordinat— 11le some of the research and statistical activities of the Board of °(Ivernors and the National Resources Planning Board had been received 44(1 discussed at a meeting of the Board this morning; that the Board °I' Governors, Which under the law had very broad discretion vdth re— ellect to the scope of its research and statistical work, was very much ttterested in the suggestion; and that the members of the Board were €14'd to have this opportunity to discuss the matter further. /1/.. Delano said that, as stated in his letter, the National ees Planning! Board had divided the United States into nine 619/42 -2- NJ° "for purposes of administration and study, that he was familiar Id-th the long experience of the Federal Reserve System with a regionaJ cq'gatr:4-zation, and that the suggestion had been made by Mr. Ruml that it r44thtb e possible for the two Boards to coordinate their research and statisti work to their mutual advantage. He also said that one of the Problems of the Planning Board was that its expenses were paid from IIPI:To priations by Congress which had been substantially reduced this Year) and that for that reason the Planning Board had not been able to carry on all of the work that was believed to be necessary for the proper discharge of its duties. He went on to say that the work that had been done by. AllTirl Hansen, of the staff of the Board of Governors, had been Ver7 laSerla to the Planning Board and was very much appreciated. In response to a request from Mr. Delano for his comments, Mr. 111/11ft stated that he had been giving consideration to the problem reto tel'reci by Mr, Delano for two or three years; that he was of the °Pillion that the Board of Governors and the Planning Board, with so in common, should work out a long-term program of collaboration; ktd that the statement approved by the Board at the meeting with the of the Federal Reserve Banks last January with respect to the tketions of the Reserve Banks was entirely in accord with such .a step. 11°"cled that at the last meeting of the Planning Board at Indianapolis : 1"" suggested that the research and statistical work that the Federal -4erlre Banks of necessity must do to discharge their responsibilities 11'76 6/9A2 —3- 14 this field was very similar to the work that should be done as a 4818 for the decisions of the Planning Board, and that if a program e°1/1(1 be worked out the Federal Reserve Banks could carry on the neces7 l'esearch work in their respective districts more effectively than the Planning Board and the latter could use the information thus deas a basis for projects which were outside the jurisdiction of th Federal Reserve Banks. M. McKee inquired whether there was anyone on the staff of th pl e —`anning Board with whom Mr. Goldenweiser could confer on the matter, and Mr. Delano stated that Thomas C. Blaisdell, one of the AsDirectors of the Planning Board, was in charge of its Research 'h and that he could work with Mr. Goldenweiser. Work or c`f the c't the In the ensuing discussion, it was stated that the research the Federal Reserve Banks, while not under the direct charge Board of Governors, was subject to its direction, and the history Present arrangement was reviewed. It was also stated by some the Me Ipers that the research divisions at some of the Federal Reeerve 11k8 were adequately staffed at the present time to carry on the 4 Work s uggested by Mr. Delano, that others would need strengthening, 441 that steps to this end were being taken at the present time in accorci atice with a policy previously adopted. l'°110wing an indication by members of the Board of Governors theY* were favorable to an undertaking to work out a program of °ration with the Planning Board, Mr. Ruml suggested that the 1196 6M2 -4- P11-m should be developed slowly so that all of the Reserve Banks that were not now organized to carry on the work could be assured of 1111114 high-grade direction of their research and statistical activities* In response to an inquiry from Mr. McKee as to that was being cl°11e in the Bureau of Foreign and Domestic Commerce, Mr. Ruml stated thatbusiness concerns would much prefer to submit reports to the Nie ral Reserve Banks than they would to a department of the Govern44lt 'and that the regional offices of the Bureau of Foreign and Domestic 411141el ' ee were not adequately organized to carry on the type of work that w4s being suggested for the research and statistical divisions of the p ederal Reserve Banks. Mr. Delano expressed appreciation of the Board's willingness t° ct consider the problem, and Chairman Eccles stated that, as a means setting UP an arrangement for following the matter, the Board had 4ked kr. Evans to undertake its immediate direction on behalf of the 11(44,c1 and that he would be available to confer with representatives Of the Planning Board in that connection. Mr. G oldenweiser suggested that from the standpoint of organi44.1(311 it would be preferable if contacts by representatives of the 11`411hing Board could be made with the Board of Governors rather than cill'eetlY. with the Federal Reserve Banks, and Mr. Delano said that that would be done. Mr. Ruml questioned whether that would be a de11''4131.e pro cedure to follow if a field representative of the Planning 1197 6/9/42 —5- 130A should contact one of the Federal Reserve Banks, and it was lade clear that after the program had been worked out there would be 4"jection to direct contacts in accordance with the program. Mr. RU-ml inquired whether there would be any objection to his sslng the matter with the Chairmen of the other Federal Reserve tarks ) and Chairman Eccles suggested that the subject was one that 'Light well be placed on the agenda for consideration at the next con— Pere nee of Chairmen. At the conclusion of the discussion, it was understood that gr. Evans would have immediate direction for the Board of ef— forts toward the development of a program along the lines discussed at this meeting; that Messrs. Goldenweiser and Blaisdell would keep in touch with each other; and that when the matter had progressed to a Point where another meeting of representa— tives of the Planning Board with the Board of Governors was believed desirable such a meeting would be held. Thereupon the meeting adjourned. Secretary. ikpPro Chairman.
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