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3525 A meeting of the Federal Reserve Board was held in Washington on Monday, November 19, 1934, at 9:40 a. m. PRESENT: Ur. Er. Mr. Er. Mr. Er. Er. Eccles, Governor Thomas, Vice Governor Hamlin Miller James Szymczah O'Connor Er. Morrill, Secretary Mr. Bethea, Assistant Secretary Er. Carpenter, Assistant Secretary Er. Wyatt, General Counsel Governor Eccles read a statement prepared by Mr. Mille r in htnoe with the action taken at the meeting of the Board on lisirezb 6r 179 1934, to be read by the Governor at the meeting with Of' deral Advisory Council this morni ng. During the discussion the 11%4 statement certain amendments were suggested and the question liaised as to whether the statement should be given any publicity. It was agreed that the statement should not be given out and that Governor Eccles should advise the Council that no publicity will be given to the statement at this time. At the conclusion of the discussion , upon motion by Ir. Szymczak, the statement was approved in the following forms rilo "Before begin ning its deliberations with the Council this vir4ing the Board desir es me to make a brief statement of its virtu with reference to the relations between the Federal Adtioncry Council and the Federal Reserve Board. ihose suggestri ; 41 are nade with a view to promoting and maintaining a With, th and spirit in the relations of the Council Board, h. aubta"It t --a been the practice of the Council in the past to re" to the Federal Reser ve Board such representations or Ilmendations as it might see fit to make with regard to 3526 11/19/34 -2"the matters within its province and this, in the judgment of the Board, is the only Procedure that is consonant with the 1 ent of the law and conducive to the good administration , ofthe Federal reserve system. The reconuuendations and representations of the Council are made by the Council in its capacity as adviser to the Federal Reserve Board solely and therefore !'re for the Board's consideration alone. It follows that it lS for the Board to determine what disposition shall be made Of the recoisauendations and representations submitted to it by the Councjl after the Board has had adequate time to consider them.iqld it is also for the Board to determine what, if any, Publicity should be given to them other than in its annual report.rhO Loard has always been ready to receive the views of the Council as to the desirability of publishing particular r?e°111m0n 1 ations in advance of the annual report and on occac slon such publication has been made by the Board of the either on the Council's suggestion or on"the recommendations, Board's own motion. It is the feeling of the Board, in which it is believed that t, i a:L the Council will concur, that this is the only procedure AL---c will work satisfactorily. Us ine Federal reserve system cannot; function satisfactorily .Zless it is animated by a high conception of its responsibila4and unless every element in it is imbued with a sense of s 1?ation and loyalty to a common purpose. It is in that irlt that we must work together if the country is to receive ee gr:eatest benefits from the Federal reserve system and entertain a high regard for the purposes and spirit of its 5y1, 1,ZCement. Unless the general public feels respect for the €111 lt cannot exercise great influence and without the se of influence as well as power the system cannot ful- its larger responsibiliti es." j Governor Eccles raised the question as to the procedure fol1.()14. "1)Y the Board in making public statements and he was advised 4_ has been the established policy of the hoard that all sta-ueIliellta to the Press should be issued through the Governor's office. lie p, l'-(111"ted that that procedure be continued. eference was then made to the question of topics for eon1.clert3.4 :::otrhe Federal Advisory Council and it was agreed that, finds it desirable to do so, he might suggest to 941 Council that it report on the cooperation of financing institufl the respective Federal reserve districts in the industrial egrau4 and that each member of the Council make a short ant *while the members of the Board are in attendance at a Of the Council meeting as to business conditions in his Thereupon the meeting adjourned.
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