View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Statement by William McChesney Martin, Jr.,
Chairman of the Board of Governors
of the Federal Reserve System
before the
House Banking and Currency Committee
May 10, 1951

federal reserve bank

f WiLnu cu liiA.

Mr. Chairman and Members of this Committee -

I appreciate this opportunity to present to you the views of the
Board of Governors of the Federal Reserve System with respect to the re­
sponsibilities placed upon or delegated to the Federal Reserve System
under the Defense Production Act of 1950,

The Board is strongly of the

opinion that these provisions of the Act should be continued.
As has been repeatedly emphasized before this and other committees
of the Congress primary reliance must be placed on fiscal, credit, and
monetary measures in combating inflationary forces inevitably generated
by the expanding defense effort.

It is hardly necessary to emphasize that

the forces creating upward pressures on prices are likely to continue
dominant in the economy even though these pressures may appear temporarily
to have been moderated.

Nor is it necessary to recount again the many

circumstances and factors whicn have combined to produce grave inflationary
dangers, or the preventive and precautionary steps already taken to
safeguard the economy.

On behalf of the Board I therefore shall address

myself particularly to those provisions of the Act with which we have been
directly concerned.

These provisions deal with certain supplementary

rather than primary credit restrictions as well as with the so-called V-loan
program to aid the defense effort.
It is important to emphasize that the marked advances in prices and
the exceptionally large increase in bank and other credit that have taken
place up to the present time reflect mainly expansion in private expenditures.
The full effects of expansion of defense activities are still to be felt.
While expenditures for defense purposes have doubled since last summer as yet




they account for only atout ten per cent of total output,

moreover, they

have thus far been met out of growing Government revenues and no new Federal
borrowing has been needed.

However, Federal expenditures for defense and

related activities are scheduled to rise sharply and may account for as
much as 20 per cent of total output within a year.
consideration for national stabilization policy.

This is the overriding
If inflationary trends

to be held in check, public policy will need to limit private spending,

especially such spending as is financed by borrowing or by the use of
past savings.

This is a time for saving, not spending.

Bole of Credit Restraint
Credit expansion has financed a substantial share of the increased
consumer and business spending since June 1950.

Without the restraints pro­

vided by the Defense Production Act the expansion in credit and upward price
pressures undoubtedly would have been even greater.

From the end of June

1950 to the end of March outstanding loans and holdings of corporate and
municipal securities by all banks increased by over 12 oillion dollars.


increase was almost as much as occurred in the two years 19UI and 19U8 together
and these were both years of rapid credit expansion and inflationary trends.
Credit extended by other lenders to businesses, municipalities, and consumers
also was in unprecedented volume.
Such credit was supplemented by drawing on liquid asset holdings.
Between the end of June 1950 and the end of March of this year, redemptions
of savings bonds exceeded cash purchases by over a billion dollars, and
savings accounts 'were reduced by close to three-quarters of a billion dollars.




Reflecting the demand for and use of ready cash, demand deposits of busi­
nesses and individuals increased by over ? billion dollars in the last half
of 1950 and showed only a moderate seasonal decline in the first quarter of

The turnover or rate of use of these deposit balances rose sharply.
It has become increasingly evident during recent weeks that this

acceleration of inflationary tendencies has been checked, temporarily at

The prospects for getting inflation under control are now better than

at any time since Korea.

To suicceed, however, will require full and contin­

ued use of all of the credit measures now up for renewal in the Defense
Production Act,

It would be extremely unfortunate if any of the means we

have been using to stem the inflationary tide should be allowed to lapse
at this critical moment when they are achieving a considerable measure of
There are tangible evidences that the availability of bank reserves
has been reduced, that banks have become more restrictive in their lending
policies, and that the over-all expansion of bank credit has definitely
slackened despite acceleration of lending to finance defense production.
Further evidences of the effects of the various measures of monetary and
credit restraint may be seen in the markets for consumer credit, mortgages,
and new capital issues.

Consumer instalment credit has ceased to grow.

New commitments by insurance companies and savings banks to purchase mort­
gages have been reduced.

Plans for issuance of some new securities have

been withdrawn or postponed and others have had to be revised, although the
total volume of new issues has continued very large.
The record of the past year has clearly demonstrated that selective
measures of credit restraint are an effective and necessary supplement to
general credit measures and at the same time are an important line of defense
for the Government securities market#

“ ll “

Continuing Authority to Regulate Consumer Credit
Regulation of consumer credit, reinstated last fall under
authority of the Defense Production Act, has played an important part
and as defense spending continues to expand should play an even more
important part in the program to control inflationary forces*


consumer credit regulation alone cannot solve the problem of inflation,
nevertheless, Regulation W, by establishing minimum downpayment require­
ments and maximum periods for repayment of consumer instalment debt, has
effectively limited the expansion of consumer purchasing power in the
form of credit dollars and is an essential part of any continuing compre­
hensive anti-inflationary program*
The terms initially established in September 19E>0, after extensive
consultation with trade groups, were only slightly more restrictive than
the average terms prevailing in consumer markets in the period just preceding
the regulation,

In announcing them the Board indicated that further

tightening might be in order as the magnitude of the defense program and
resulting inflationary pressures become more evident.

Some weeks later,

after careful consideration of current and prospective developments not
only in the consumer durable goods field but in the economy as a whole,
the Board announced, effective October 16, a more restrictive set of terms
which has remained in effect since that time.
The regulation now provides that in buying an automobile on in­
stalment a buyer must pay one-third down and repay the balance of his contract
in not more than

1$ months) for other durables such as washing machines and




television sets, the minimum downpayment requirement is 25 per cent, and
the maximum term allowed is also 15 months*

More liberal terms are permitted

for furniture and home repairs and improvements*
The present provisions of Regulation W are more lenient in some
respects than those in effect during most of World War II*

The regulation is

also substantially less restrictive than the terms of similar regulations
now in force in Canada, where the regulation of consumer credit is also
included in the arsenal of anti-inflation weapons.
Under the present terms of Regulation W, the highly inflationary
expansion of outstanding instalment credit has been stopped*

In the six-

month period October 1950 through March 195l> instalment credit outstanding
declined by 361). million dollars.

This decline contrasts sharply with the

increase of 2.3 billion dollars in the preceding six months, and with the
rise of 1*2 billion dollars in the period October 19U9 to March 1950..
Recently there has been some reduction in demand for consumer
durable goods from the exceptionally large volume of December and January,
although sales of most continue close to the high levels reached a year ago.
Conditions in these markets are being watched closely and frequent
consultations are being held with representatives of the industries and
trades which have been affected.

Even though inflationary pressures may

temporarily be checked, a highly volatile demand situation is to be expected
as long as the defense program and international developments play such a
dominant role in the economy.

Let me assure you that the Board is prepared

either to tighten or to relax credit terms whenever such action would be
consistent x\rith the objectives of the Defense Production Act.




Regulation of Real Estate Credit
In the field of real estate credit, several important steps have
been taken

to check inflationary developments and conserve materials and

other resources.

Last July, prior to the passage of the Defense Production

Act, the Federal Housing Administration and the Veterans Administration
tightened the terms under which they would insure or guarantee mortgage loans,
both on new and on existing properties.

Since the passage of that Act,

further action has been taken to regulate real estate construction credit.
The first step was the issuance, effective October 12, of Regulation X by
the Board and companion regulations by FHA and VA covering credit extended
in connection with purchases of 1- to 2-family houses.

The next was amendment

of these regulations as of January 1 2, 1951a to cover new multi-family units.
Finally, another amendment to Regulation X, effective February Ip, covered
loans in connection with certain

nonresidential construction.

At every

stage in developing the regulations valuable advice and assistance has been
sought and obtained from lenders, builders, and other private groups, as well
as from public officials.
Under the terms of Regulation X and companion FHA regulations,
mortgage loans on houses are limited to various percentages from 90 per cent
for houses valued at 5,000 dollars or less to 50 per cent for houses valued
at over 2l;,250 dollars.

V.ith respect to loans guaranteed by the Veterans

Administration, loan ratios 5 to 10 percentage points higher were authorized
by the Housing

Administrator to preserve the relative credit preference

granted to veterans.

At the time of their announcement the terms were widely

regarded as being strict and likely to lead to sharp curtailment in the
volume of residential building.




The effectiveness of the regulation was considerably limited at the
outset by the large volume of building then under way and by the large volume
of financing commitments outstanding.

Thus, while construction activity

and extensions of mortgage credit have continued at very high levels, the
restrictions imposed have been important in helping to reduce the number of
new units being started.

During the winter months housing starts were equal

to those a year earlier but were down more than seasonally from the extra­
ordinary high level of last spring and summer.

In March and April starts ap­

pear to have been about one-fifth below a year ago.
It now appears likely that under present regulations the effective
demand for new houses will be less than in 1950 when a record total of
1.1100.000 units were started.

At the same time, with about 360,000 or

units started in the first four months of 1951, the total for the

year will probably exceed the 6 0 0 , 0 0 0 to 850,000 units set as a target
last October when the terms were first announced.

Prospects for a smaller

volume of construction this year together with recent high levels of
production of most building materials have resulted in a leveling off of
building material prices since tne first of the year.

Even so, these prices

average about 20 per cent higher than in the spring of 1950 and shortages
of some metal items are rather widely reported.
To make restrictions of mortgage credit adequately effective, the
authority over such credit needs to be extended to cover loans made on existing

Since passage of the Defense Production Act prices of old as

well as new houses have increased significantly, thereby raising the loan
values of old properties and adding to the potential volume of credit based
on this type of asset.


increases for old properties in turn tend to

support increases in prices of, and the amount of credit extended on,
new houses.

Thus, restriction of credit extended on existing properties

would help to make the restraint of new construction credit more effective
as well as to limit inflationary mortgage credit expansion generally.
The amount of mortgage credit extended on old houses during 1950
was the largest on record, almost 9 billion dollars or about three-fifths
of all the credit

extended on all 1- to ij-family properties.

In the first

quarter of 1951 lending on old houses was maintained at a very high rate and
continued to account for a large share of the total volume of mortgage credit
extensi on.
The President as well as the Council of Economic Advisers and the
Joint Committee on the Economic Report have recommended that authority be
granted to control credit on purchases of existing houses.

The Board joins

in this recommendation and urges that the authority be granted in the form
provided in the bill presently under consideration.
Total mortgage debt outstanding on 1- to U-family houses, new and
old combined, is 2-1/k times what it was at the end of World War II.


of such rapid expansion of mortgage debt would not only threaten the stability
of real estate markets but also have a serious inflationary impact on 'the
whole economy.
Voluntary Credit Restraint Program
The recently inaugurated Voluntary Credit Restraint Program, to
which I referred earlier, is designed to encourage financing institutions to
conduct their credit operations in such a way as to contribute to meeting
defense and other essential needs and at the same time to help limit the use


of credit for other purposes*



This program has been established as a result

of the President’s delegation to the Board of the authority contained in
the Defense Production Act to encourage the making of voluntary agreements
in the field of financing.

It has been developed after consultation with

and approval by the Attorney General and also after consultation with the
Federal Trade Commission,
The Program is entirely voluntary on the part of participating
financing institutions and its success is wholly dependent on the coopera­
tion of such institutions.

The Board and the Reserve Banks participate in

it to the extent required under the terms of the program in order to be of
assistance to the voluntary committees appointed under the Program,


Powell has been designated by the Board to be Chairman of the National
Voluntary Credit Restraint Committee,

This Committee originally consisted

of four representatives each of banks, insurance companies, and investment
banking houses chosen after consultation with the lending associations
in these areas.

More recently, two representatives each of mutual savings

banks and savings and loan associations have been added to the Committee*
The National Voluntary Credit Restraint Committee has established
initially 12 subcommittees for banks, one located in each Federal Reserve Dis­
trict, and U regional subcommittees each for insurance companies and investment
banking houses. These subcommittees are available for consultation with indi­
vidual financing institutions to assist them in determining the application of
the Program to specific loans for which application has been made to financing

Of course, the final decision with respect to making or




refusing to make any particular loan or loans is wholly within the discretion
of each financing institution, whether or not it has consulted with any of
the subcommittees.
Members chosen to serve on the national committee as well as on
the various subcommittees have been very carefully selected to provide
broad participation by the financial community,

I will submit for the

record a list of the membership of the national and regional committees.
You will agree, I'm sure, that this is an impressive roster of financial
The national committee has issued three bulletins, the first
dealing with means of restraining inventory financing, the second with the
principles to be followed in financing capital expansion programs and
the third with State and local government financing*

These bulletins,

together with the Statement of Principles of the Program, have been dis­
tributed to all financing institutions participating in the Program to
provide a common guide for combatting inflationary loan expansion in
their respective fields.

Other bulletins as may be appropriate and helpful

will be issued from time to time.
While there has not yet been time to build up a body of statistical
information to enable the Committee to analyze thoroughly the effects of the ■
Program, there are indications that the initiation of the Program has
had a salutary effect on the trend of credit.

Expansion of bank credit,

xfhich was very sharp during the last half of 1950, has shown some signs




of abating in recent weeks.
Endorsements of the Program and pledges of wholehearted coopera­
tion have been received from many representative industry groups.


the circumstances, those connected with the Program are most encouraged,
and it is the Board*s view that the authorization for this unique coopera­
tive effort as one means of restraining the further expansion of private
credit should be continued,

V-Loan Program
Section 301 of the Defense Production Act provides the authority
for the current guaranteed loan program under which loans made by private
financing institutions to defense contractors are guaranteed by
defense procurement agencies.

Essentially this program is a revival

of the so-called V-loan program which was successful in helping to
finance war production during World War II,
Under the present program, there are eight guaranteeing agen­

the Departments of the Army, Navy, Air Force, Commerce, Interior,

and Agriculture, the General Services Administration, and the Atomic
Energy Commission,

The twelve Federal Reserve Banks act as fiscal

agents of the United States on behalf of these guaranteeing agencies.
The Board, after consultation with the guaranteeing agencies, has
prescribed regulations governing the guarantee operations of the
Reserve Banks and rates, fees, forms, and procedures to be utilized
in connection with such guarantees*




One of the special virtues of the V-loan program is the fact
that the procedure for obtaining a guaranteed loan is relatively simple.
Briefly, any defense contractor who requires financing in order to
carry out his contracts first gets in touch with his local bank or
financing institution®

The financing institution, after working

out the terms of the proposed loan, files an application for a
guarantee with the Federal Reserve Bank of its district.

The Reserve

Bank makes any necessary credit investigation and submits the loan to
the appropriate agency for approval.

If the guaranteeing agency ap­

proves the application, it authorizes the Reserve Bank as its agent
to execute the guarantee agreement.
A maximum interest rate of 5 per cent and a schedule of
guarantee fees have been established by the Board after consultation
with the guaranteeing agencies.

The higher the percentage of guarantee

requested by the financing institution, the higher the guarantee fee
which it is required to pay*

This encourages financing institutions

to assume as much of the risk as possible and reduces the Government’s
contingent liability.
Up to April 30, 503 applications for guarantees totaling
about 365 million dollars had been received; 327 applications were
approved for about U22 million dollars, 105 applications for about

123 million dollars are under consideration, 57 applications
aggregating about 11 million dollars were declined, and the remaining
few applications were withdrawn.

At present, applications are being

received at a rate of slightly more than 100 a month.




Because of rulings of the Comptroller General, financing
institutions have Been reluctant to take assignments of Government con­
tracts as security for defense loans.

However, this situation will be

remedied by a clarifying amendment to the Assignment of Claims Act re­
cently approved by the Senate and the House of Representatives.


this impediment to lending on defense contracts removed, and with the
anticipated acceleration in the defense production program, there is
every reason to expect that the volume of applications for guaranteed
loans under the V-loan program will increase greatly.
The basic purpose of the V-loan program is to utilize the pri­
vate banking system so far as possible in financing necessary defense

V-loan guarantees are especially useful to smaller con­

tractors who may not be otherwise able to obtain necessary financing
for defense contracts.
Continuing Need for Restraints on Inflation
Defense production is in the early stages and demand for
civilian goods remains at high levels.

Present schedules call for

doubling defense outlays as a percentage of national output within a

In addition, private outlays for new plant and equipment are

expected to increase substantially, adding to inflationary tendencies.
Although recently inflationary pressures appear to have moderated, the
fundamental situation in this country and abroad is still strongly in­
Estimates of possible increases both in total output and in
output of particular products indicate that the defense and other
essential goals cannot be realized unless civilian production and

- lU demand for important types of goods are curtailed*

Present and

prospective shortages of steel, copper, and other metals require re­
straint on competing civilian uses of metals, such as automobiles,
appliances, houses, and commercial construction*

Unless both public

and private expenditures for nondefense purposes are limited, the only
alternative is a further advance in prices*

It is of paramount import­

ance, therefore, that the anti-inflation programs now in operation be
continued and strengthened*


Oliver S. Powell, Chairman
Commercial Banks
George S. Moore
Vice President, The National City Bank, New York, New York.
Carlisle R. Davis
Vice President, State-Planters Bank and Trust Company, Richmond, Virginia.
Kenton R. Cravens
Vice President, Mercantile-Commerce Bank & Trust Company, St. Louis,
Everett D. Reese
President and Trust Officer, Park National Bank, Newark, Ohio.
Insurance Companies
George L. Harrison
Chairman, New York Life Insurance Co., New York, New York.
Carrol M. Shanks
President, Prudential Insurance Company of America, Newark, New Jersey.
E. B. Stevenson, Jr.
Executive Vice President, National Life and Accident Insurance Co.,
Nashville, Tennessee.
Claude L. Benner
President, Continental American Life Insurance Co., Wilmington, Delaware.
Investment Bankers
Lee M. Limbert
Vice President, Blyth & Co., Inc., New York, New York.
Rudolf Smutny
Partner, Salomon Bros. & Hutzler, New York, New York.
Francis Kernan
Partner, White, Weld & Co., New York, New York.
William K. Barclay, Jr.
Partner, Stein Bros. & Boyce, Philadelphia, Pennsylvania.

First District Commercial Banking Voluntary Credit Restraint Committee

Walter S. Bucklin, Chairman.
President, The National Shawmut Bank of Boston, Boston, Massachusetts.
John E. Toulmin, Vice Chairman.
Senior Vice President, The First National Bank of Boston, Boston, Massachusetts.
Roy A. Young,
President, The Merchants National Bantc of Boston, Boston, Massachusetts.
Lester E. Shippee,
Executive Vice President, The Hartford-Connecticut Trust Company,
Hartford, Connecticut.
Chester G. Abbott,
President, First Portland National Bank, Portland, Maine.
W. F. Farrell,
President, The Providence Union National Bank and Trust Company,
Providence, Rhode Island.
Carl B. Pitman,
Vice President, Federal Reserve Bank of Boston, Boston, Massachxisetts.

Second District Commercial Banking Voluntary Credit Restraint Committee
George Whitney, Chairman,
Chairman of the Board, J. P. Morgan & Co., Inc., New York, New York.
George Champion, Vice Chairman.
Senior Vice President, The Chase National Bank of the City of New York,
New York, New York.
Charles H. Diefendorf,
President, Marine Trust Company, Buffalo, New York.
R. E. McNeill, Jr.,
President, Central Hanover Bank and Trust Company, New York, New York.
David C. Barry,
Senior Vice President, Lincoln-Rochester Trust Company, Rochester, New York.
Horace K. Corbin,
President, Fidelity Union Trust Company, Newark, New Jersey.
Arthur Phelan,
Vice President, Federal Reserve Bank of New York, New York, New York.

Third District Commercial Banking Voluntary Credit Restraint Committee
Frederic A. Potts, Chairman,
President, The Philadelphia National Bank, Philadelphia, Pennsylvania.
Carl H. Chaffee,
Vice President, The First National Bank of Philadelphia,
Philadelphia, Pennsylvania.
George P. Edmonds,
President, Wilmington Trust Company, Wilmington, Delaware.
Frank W. Sutton, Jr.,
President, The First National Bank of Tom's River, N. J.,
Tom's River, New Jersey.
J. Wilson Steinmetz,
President, Ninth Bank and Trust Company, Philadelphia, Pennsylvania.
Frank Steraple,
Executive Vice President, The First National Bank of Scranton,
Scranton, Pennsylvania.
W. J. Davis,
First Vice President, The Federal Reserve Bank of Philadelphia,
Philadelphia, Pennsylvania.
fourth District Commercial Banking Voluntary Credit Restraint Committee
John K. Thompson, Chairman,
President, Union .Sank of Commerce. Cleveland, Ohio.
A. Mitchell,
President, Cental Trust Company, Cincinnati, Ohio,
francis H. Beam,
Senior Vice President, The National City Bank of Cleveland, Cleveland, Ohio.
Tonathan S. Raymond,
Vice President. Me]Ion National Banx and Trust Company, Pittsburgh, Pennsylvania.
Robert C. Downie,
President, Peoples First National Eank and Trust Company,
Pittsburgh, Pennsylvania.
E. S. Patterson,
President, The First National Panic of Akron, akron, Ohio.
William H. Fletcher,
First Vice Pre^ld v.t, Federal Reserve Bank of Cleveland, Cleveland, Ohio.

Fifth District Commercial Banking Voluntary Credit Restraint Committee
Archie K. Davis, Chairman.
Senior Vice President, Wachovia Bank & Trust Company,
Winston-Salem, North Carolina.
Eugene L. Miles,
President, Baltimore National Bank, Baltimore, Maryland.
Hulbert T. Bisselle,
Senior Vice President, The Riggs National Bank of Washington, D. C.
Washington, D. C.
J. Phillips Coleman,
Vice President, First and Merchants National Bank of Richmond,
Richmond, Virginia.
Thos. C. Boushall,
Chairman and President, Bank of Virginia, Richmond, Virginia.
Ernest Patton,
Chairman of the Board, The Peoples National Bank of Greenville,
Greenville, South Carolina.
N. L. Armistead,
Vice President, Federal Reserve Bank of Richmond, Richmond, Virginia.
Sixth District Commercial Banking Voluntary Credit Restraint Committee
John A. Sibley, Chairman,
Chairman of the Board, Trust Company of Georgia, Atlanta, Georgia.
J. Finley McRae, Vice Chairman.
President, The Merchants National Bank of Mobile, Mobile, Alabama.
James G. Hall,
Executive Vice President, The First National Bank of Birmingham,
Birmingham, Alabama.
V. H. Northcutt,
President, The First National Bank of Tampa, Tampa, Florida.
Herman Jones,
Executive Vice President, The First National Bank of Atlanta, Atlanta, Georgia.
Dale Graham,
President, The National Bank of Commerce in New Orleans, New Orleans, Louisiana.V
V . K . Bowman,
Vice President, Federal Reserve Bank of Atlanta, Atlanta, Georgia.

Seventh District Commercial Banking Voluntary Credit Restraint Committee

Homer J, Livingston, Chairman,
President, The Firs ^“"National Bank of Chicago, Chicago, Illinois.
Carl A, Birdsall,
President, The Continental Illinois National Bank and Trust Company
of Chicago, Chicago, Illinois,
Mark A. Brown,
President, Harris Trust and Savings Bank, Chicago, Illinois.
George L, Luthy,
President, Commercial National Bank of Peoria, Peoria, Illinois,
Donald F, Valley,
General Vice President, National Bank of D e t r o it , Detroit, Michigan.
William Taylor,
President, First Wisconsin National Bank of Milwaukee, Milwaukee, Wisconsin,
A. L. Olson,
Vice President, Federal Reserve Bank of Chicago, Chicago, Illinois,

Eighth District Commercial Banking Voluntary Credit Restraint Committee

Sidney Maestre, Chairman,
President, Mississippi Valley Trust Company, St, Louis, Missouri.
James H, Penick,
President, Worthen Bank & Trust Company, Little Rock, Arkansas,
Earl R, Muir,
President, Louisville Trust Company, Louisville, Kentucky,
Harold T, Jolley,
President, The Boatmen's National Bank of St. Louis, St. Louis, Missouri,
William A, McDonnell,
President, First National Bank in St. Louis, St. Louis, Missouri.
V, J, Alexander,
President, Union Planters National Bank & Trust Company of Memphis,
Memphis, Tennessee.
Olin M, Attebery,
First Vice President, Federal Reserve Bank of St, Louis, St, Louis, Missouri.

Ninth District Commercial Banking Voluntary Credit Restraint Committee

Arthur H. Quay, Chairman,
President, First National Bank of Minneapolis, Minneapolis, Minnesota,
Willis Wyard,
President, First and American National Bank of Duluth, Duluth, Minnesota,
Joseph F, Ringland,
President, Northwestern National Bank of Minneapolis, Minneapolis, Minnesota,
Rollin 0, Bishop,
President, The American National Bank of Saint Paul, St, Paul, Minnesota.
Julian Baird,
President, The First National Bank of St, Paul, St. Paul, Minnesota,
B, M. Harris,
President, The Yellowstone Bank, Columbus, Montana,
Maurice H. Strothman, Jr,,
Vice President, Federal Reserve Bank of Minneapolis, Minneapolis, Minnesota.

Tenth District Commercial Banking Voluntary Credit Restraint Committee

D, T. Beals, Chairman,
President, "TKe Inter-State National Bank of Kansas City, Kansas City, Missouri.
John Evans,
President, The First National Bank of Denver, Denver, Colorado.
James M. Kemper,
Chairman of the Board, Commerce Trust Company, Kansas City, Missouri,
Taylor Abernathy,
President, The First National Bank of Kansas City, Kansas City, Missouri,
Arthur L, Coad,
President, Packers National Bank in Omaha, Omaha, Nebraska,
Hugh L. Harrell,
Vice President, The First National Bank and Trust Company of Oklahoma City,
Oklahoma City, Oklahoma,
Henry 0, Koppang,
First Vice President, Federal Reserve Bank of Kansas City, Kansas City, Missouri

Eleventh District Commercial Banking Voluntary Credit Restraint Committee
Milton F. Brown, Chairman,
President, Mercantile' National Bank at Dallas, Dallas, Texas.
Ben H. Wooten,
President, First National Bank in Dallas, Dallas, Texas.
W. M. Massie,
Vice President, The Fort Worth National Bank, Fort Worth, Texas.
L. Randolph Bryan, Jr,,
President, The Second National Bank of Houston, Houston, Texas.
Harris McAshan,
President, The South Texas National Bank of Houston, Houston, Texas,
Fred F. Florence,
President, Republic National Bank of Dallas, Dallas, Texas.
W. D. Gentry,
First Vice President, Federal Reserve Bank of Dallas, Dallas, Texas,

Twelfth District Commercial Banking Voluntary Credit Restraint Committee
E. C, Sammons, Chairman,
President, The United States National Bank of Portland, Portland, Oregon,
I, Warren Heilman,
President, Wells Fargo Bank & Union Trust Company, San Francisco, California,
Chester A. Rude,
Chairman, Executive Committee, Security-First National Bank of Los Angeles,
Los Angeles, California.
James Lochead,
President, American Trust Company, San Francisco, California.
F, A. Ferroggiaro,
Senior Vice Chairman of the Board, Bank of America National Trust and
Savings Association, San Francisco, California.
Thomas F. Gleed,
President, Seattle-First National Bank, Seattle, Washington.
E. R. Millard,
Vice President, Federal Reserve Bank of San Francisco, San Francisco, California,

Eastern Insurance Voluntary Credit Restraint Committee
Frazar B. Wilde, Chairman,
President, Connecticut General Life Insurance Company, Hartford, Connecticut.
Julian D. Anthony,
President, Columbian national Life Insurance Company, Boston, Massachusetts.
Frederick ¥. Ecker,
Executive Vice President, Metropolitan Life Insurance Company, Hew York, Hew York,
Robert E. Henley,
President, Life Insurance Company of Virginia, Richmond, Virginia.
E. A. Camp, Jr.,
Vice President and Treasurer, Liberty Rational Life Insurance Company,
Birmingham, Alabama.
¥. W. Bodine,
Chairman of the Board, Penn Mutual Life Insurance Company, Philadelphia, Penna.
William F. Treiber,
Vice President, Federal Reserve Bank of Hew York, Hew York 45, Hew York.

Mid-Western Insurance Voluntary Credit Restraint Committee
Robert B. Richardson, Chairman,
President, Western Life Insurance Company, Helena, Montana.
T. A. Phillips,
Chairman of the Board, Minnesota Mutual Life Insurance Company, St. Paul, Minn,
W» T. Grant,
Chairman, Business Men's Assurance Company of America, Kansas City, Missouri.
Frank J. Travers,
Vice President, American United Life Insurance Company, Indianapolis, Indiana,
Willard H. Boyden,
Vice President, Continental Assurance Company, Chicago, Illinois.
A. L. Olson,
Vice President, Federal Reserve Bank of Chicago, Chicago 90, Illinois.

Southwestern Insurance V o l u n t a r y Credit Rest r a i n t Committee

W. L. Vogler, Chairman,
Executive Vice President, American National Insurance Company, Galveston, Texas.
Harry L. Seay, Jr.,
Executive Vice President, Atlas Life Insurance Company, Tulsa, Oklahoma.
Carl C. Weichsel,
Vice President and Treasurer, Great National Life Insurance Company, Dallas, Tex
T. L. Bradford, Jr.,
Vice President and Treasurer, Southwestern Life Insurance Company, Dallas, Texas
P. M. Greenwood,
Executive Vice President, Great Southern Life Insurance Company, Houston, Texas.
H, R. DeMoas,
Vice President, Eederal Reserve Bank of Dallas, Dallas, Texas.

West Coast Insurance Voluntary Credit Restraint Committee
Asa V. Call, Chairman,
President, ’Pacific Mutual Life Insurance Company, Los Angeles, California.
Harry J. Stewart,
President, West Coast Life Insurance Company, San Erancisco, California.
Raymond R. Brown,
President, Standard Insurance Company, Portland, Oregon.
Dwight L. Clarke,
Chairman of Advisory Board, Occidental Life Insurance Company of California,
Los Angeles, California.
Virgil H. Smith,
Vice President, Beneficial Life Insurance Company, Salt Lake City, Utah.
E. R. Millard,
Vice President, Federal Reserve Bank of San Erancisco, San Erancisco, California

E a st e r n Investment B a n k i n g V o l u n t a r y Credit [Restraint C o m m i t t e e

Percy M. Stewart, Chairman,
Kuhn, Loeh & Co., 52 William Street, New York, New York.
T. Jerrold Bryce,
Clark Dodge & Co.,


Wall Street, New York, New York.

Clarence E. Unterherg,
C. E. Unterherg & Company,


Broadxtfay, New York, New York.

Prank A. Willard,
Reynolds & Company, 120 Broadway, New York, New York.
A. Phelan,
Vice President, Pederal Reserve Bank of Nev York, New York 45, New York.

Mid-Western Investment Banking Voluntary Credit Restraint Committee
D. Dean McCormick, Chairman,
McCormick & Co., 231 S. La Salle Street, Chicago 4, Illinois
Lee H. Ostrander,
William Blair & Company, 135 S. La Salle Street, Chicago 3» Illinois.

Reno H» Petersen,
The Illinois Company, 231 S. La Salle Street, Chicago 4, Illinois.
Richard W. Simmons,
Blunt Ellis & Simmons, 208 S. La Salle Street, Chicago 4, Illinois.
Neil B. Dawes,
Vice President and Secretary, Federal Reserve Bank of Chicago, Chicago 90, 111.

Sou t h w e s t e r n Investment B a n k i n g V o l u n t a r y Cre d i t R e s t r a i n t C o m m i t t e e

John H. Rauscher, Chairman,
Rauscher, Pierce & Co., Mercantile Bank Building, Dallas 1, Texas.
H. H. Dewar,
Dewar, Robertson Sc Pancoast, National Bank of Commerce Bldg., San Antonio 5> Texas
Nilliam C. Jackson, Jr.,
First Southwest Company, Mercantile Bank Building, Dallas 1, Texas.
Edward Rotan,
Rotan, Mosle and Moreland, 806 Rusk Avenue, Houston 2, Texas.
W. D. Gentry,
First Vice President, Federal Reserve Bank of Dallas, Dallas 13> Texas.

Western Investment Banking Voluntary Credit Restraint Committee
Frank F. Walker, Chairman.
Dean Wittei* & Co., 45 Montgomery Street, San Francisco


, California.

Mark C. Elworthy,
Elworthy Sc Co., Ill Sutter Street, San Francisco 4> California.
Edward C. Henshaw,
William R. Staats Co., Ill Sutter Street, San Francisco 4> California.
Frank Weeden,
Weeden & Co., 315 Montgomery Street, San Francisco 4> California.
E. R. Millard,
Vice President, Federal Reserve Bank of San Francisco, San Francisco 20, California