The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
351 A meeting of the Board of Governors of the Federal Reserve SYstealwit , a the Presidents of the Federal Reserve Banks in Executive Sessi °4 was held in the offices of the Board in Washington on Thursday, March 1, 1945, beginning at 2:15 PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Messrs. Flanders, Sproul, Williams, Gidney, Leach, McLarin, Young, Peyton, Leedy, and Gilbert, Presidents of the Federal Reserve Banks of Boston, New Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, and Dallas, respectively Mr. Clerk, First Vice President of the Federal Reserve Bank of San Francisco Mr. Sienkiewicz, Secretary of the Presidents' Conference Chai Man Eccles reported that Mr. Ransom and he went to the l'I'ea,, 'll'7 this rn -°Pning and met with the Secretary, Under Secretary 411 ) atiri If ' Ale841 44 Were -Ps. White and Gaston. The Secretary was very cordial, 411 the others. The Chairman told the Secretary that a mesNehad Etrld 1,e beea received from Under Secretary Bell through Mr. Ransom 1)e : ted what he Nitirme had understood the message to be. that The Secretary the correctness of the statement. Chairman Eccles said the Lnlecliate reaction of the Presidents was that they did not 352 3406 -211114 to have such a meeting as had been suggested because they did 11°1 " 1-sh to be placed in the position of making a definite commitment ()tithe Part of some as being favorable to the program and others as not bac_ -441g favorable to it. Those who did not go would be presumed to be agalrlSt the program, whereas some of the Presidents felt that theYdi d not know enough about the program as yet to take a definite P°31:tion and they were neutral about it. In any case, they did not teel that they should be placed in the position of a divided organiza: arrk er ahey would all be glad to come over at any time that might be they would come individually and discuss the matter with " the e -sereta-4, at such times as he might desire. he t01,1 The Chairman said .ecretary Morgenthau that he sympathized with that position 44cl th t . t4 4 IA had been felt that the Reserve Banks and Presidents, inas- : 4" this issue was a controversial one, should not be requested hag° %It actively and publicly. The Chairman pointed out that it t:14-1174Y8 been the policy of the System to keep the Reserve Bank of: beeet 8 (1114t of issues of this nature that were highly controversial e0th erwise they would inject the System, as such, into the tic l salln and it would be divided against itself, and that it ath ' toarilea 014 'of the Presidents that that should not happen. The Chair- aid he told the Secretary that if the Treasury wished to go arl:V District and would get in touch with the Board in advance, 353 3/1/45 -3- he wa 8 8111‘e that they could make any arrangements that were desirable or,4 "er that the Treasury might present its views effectively, such 48 tht. °ugh the medium of meetings, luncheons, etc. He emphasized thatmr. SProul had indicated that if the Secretary wished to come to Nett York and have a meeting or luncheon there, he would help make 811ch ar rangements, so that the Treasury would have ample opporj Tio express its views on the Bretton Woods proposals, and that 1 Other P be very b residents felt the same way about it, but that it would ad for the Reserve Banks to organize themselves into a group to e° cut and sponsor the proposals. L The Chairman said that the Secretary and his staff seemed to " `ve 110 . ' 4J-fflcult7 in seeing this point of view; that it seemed to n ° argument or effort at persuasion, and that the Secretary 4 131)4rerltiv ttlg accepted it without question. The Chairman then reported that Dr. White expressed the feel- that eserve Bank Presidents ought to have some opinion on a mat•'ti - sort which was as vital as this in the whole monetary and ekcharlee tt N field- Dr. White thought that the Presidents had been ex- *i to th th -e American Bankers Association's position because, naturally, 001 .1.• §4 the and contacts were with the banks of their Districts a58 AMeri can th Bankers Association Committee's views predominated • that area (tertte atIct 'which, in turn, would have its influence upon the Presi the other officials of the Reserve Banks unless they were 354 3/1/45 -4t° get the answers to the American Bankers Association's arguments. Re th eret°re auggested that the Presidents and the other officers of the 13 hould be given the opportunity to get the other side of the Tlestion, whether or not they make any public utterances. He kated out that it was natural for men to have individual views which theYt(pressed privately, even though they did not express themselves 14311.04. Therefore, he felt that the Presidents should be fully int(IrItted and should have an opportunity to hear fully and thoroughly the (4'ea'alla7 side of the story and their arguments against the American 11411kel's Ass ociation's position. He asked whether it would not be posaibie tor all the Presidents to give the Treasury, while they were hel'eriVlashington, two or three hours' time for an explanation of the Tr ea.811/7 viewpoint. The Chairman said he told Dr. White that he 11°1114 slIbtilit the matter to the Presidents. Atter a brief discussion, it was agreed that Chairman Eccles 'd advise the rreasur that the Board and the Presidents would be to have Dr. White and other members of the Treasury staff meet tfith the 13 oard and the Presidents tomorrow afternoon at 2:00 p.m. tO the Pilrpose of presenting the Treasury viewpoint and for a disth th Thereupon, the Chairman left the room to take the matter up Ivoe Itl'easurY and upon his return reported that Under Secretary 111(1 arrange the meeting. 355 3/1145 -5- Thereupon the meeting adjourned. %65a4Wtd. hnMAft-lefa Secre ry. Chairman.
@FedFRASER