Monetary Policy and the Management of the Public Debt, HEARINGS BEFORE THE SUBCOMMITTEE ON GENERAL CREDIT CONTROL AND DEBT MANAGEMENT OF THE JOINT COMMITTEE ON THE ECONOMIC REPORT SECOND SESSION PURSUANT TO Section 5 (A) of Public Law 304 (79th Congress) 97308 MARCH 10, 11, 12, 13, 14, 17, 18, 19, 20, 21, 24, 25, 26, 27, Printed for the use of the Joint Committee on the Economic Report UNITED STATES WASHINGTON: 1952 JOINT COMMITTEE ON THE ECONOMIC REPORT WRIGHT PATMAN, Texas JOHN SPARKMAN, Alabama CONTENTS Statement of: Page Appleby, Paul, dean of the Maxwell School of Citizenship and Public 573 Bell, James Washington, chairman, Department of Economics, 911 Blough, Roy, member, Council of Economic Advisers. Brown, Edward Eagle, chairman, board of directors of the First Bryan, Malcolm, president, Federal Reserve Bank of Atlanta----- Cook, H. Earl, member Board of Directors, Federal Deposit Insurance Corporation, accompanied by E. H. Cramer and L. L. Robertson, Economists' National Committee on Monetary Policy, New York, a submitted statement by 63 members__ 940 Fennelly, John F., Investment Bankers Association of America, ac- companied by Robert Craft, vice president, Guaranty Trust Co. Folsom, Marion B., Chairman, Board of Trustees, Committee for Eco- 291 Harris, Seymour E., professor of economics, Harvard University--- 355,380 Hemingway, W. L., American Bankers Association_ 324 926 Keyserling, Leon H., chairman, Council of Economic Advisers Lanston, Aubrey G., president, accompanied by Leroy M. Piser, vice president in charge of research, Aubrey G. Lanston & Co., Inc__-- 389 Martin, William McC., Jr., Chairman, Board of Governors of the Pollock, Dr. James K., professor of political science and chairman of 584 463 Preston, Howard H., professor of money and banking, University of 928 Robinson, Leland Rex, professor of political economy, New York Uni- versity (submitted) 932 Shanks, Carrol M., president of Prudential Insurance Co. of America, and chairman, committee on inflation control of the American Life Convention and the Life Insurance Association of America. Snyder, John W., Secretary of the Treasury, accompanied by mem- 7, 45 506 296 219, 235 Sproul, Allan, president, Federal Reserve Bank of New York_______ Trant, James B., dean, College of Commerce, and professor of money and banking, Louisiana State University (submitted) Wiggins, A. L. M., chairman, board of directors, Atlantic Coast Line How should our monetary and debt management policy be determined?_ Stein, Harold, staff director, Committee on Public Administra- 757 Viner, Jacob, professor of economics, Princeton University___ 754 752 Baker, John A., legislative secretary, National Farmers Chamber of Commerce of the United States (submitted) ____ Newsom, Herschel D., master, the National Grange------- The role of the banking system in a dynamic economy. Participants: 597 Fleming, Robert V., president and chairman of the board, 598 Reierson, Roy L., vice president, Bankers Trust Co., New 633, 637 Tapp, Jesse W., executive vice president, Bank of America, 626 Woodward, Donald B., second vice president, the Mutual Life 602 What Should Our Monetary and Debt Management Policy Be?______ 685 Ellis, Howard S., professor of economics, University of Cali- 686 Friedman, Milton, professor of economics, University of Chi- cago 688 Mikesell, Raymond F., professor of economics, University of Virginia- 711 Samuelson, Paul, professor of economics, Massachusetts In- stitute of Technology. 691 Whittlesey, C. R., professor of finance and economics, Uni- 698 Supplementary statements: Bryan, Malcolm, president, Federal Reserve Bank of Atlanta- Keyserling, Leon H., chairman, Council of Economic Advisers------- Additional information furnished for the record: Behavior of Deposits Prior to Suspension in a Selected Group of 432 743 276 746 Correspondence on debt management and monetary policy between the Federal Reserve System and the Treasury, and the Federal Re- serve System and the President, during the period from the outbreak in Korea (June 25, 1950) to the Treasury-Federal Reserve accord Correspondence with the Comptroller General concerning govern- mental agencies not audited by the General Accounting Office and Editorial in the New York Jourial of Commerce concerning the testi- mony of Prof. Seymour Harris, Professor Harris' answer thereto, Federal Reserve System preparation of answers to questionnaire____ Financial responsibilities of member banks on account of membership Lending, Inc., Fifth District Commercial Banking Voluntary Credit Restraint Committee, report of___. 614 Letter from Library of Congress, to Joint Committee, relative to Fed- eral Agencies having independent sources of income Letter from Preston Delano, to Congressman Patman, relative to affili- Letter received from Allan Sproul on the independence of the Federal Letter to Congressman Patman from Carrol M. Shanks, regarding removal of Secretary of Treasury from the Federal Reserve Board__ Letter to Congressman Patman, from National Association of Manu- Letter to Senator Maybank, from Walter P. Reuther, CIO, relative to panel discussion on mortgage financing conducted by Senate Banking and Currency Committee, on February 6, 1952- Memorandum from the President, regarding the need for credit re- Monetary Management, by E. A. Goldenweiser, excerpt from-------- 796 398 Payments to the Treasury by Federal Reserve banks. Remarks of Allan Sproul, president, Federal Reserve Bank of New York, at Seventy-fifth Annual Convention of American Bankers Association, San Francisco, Calif., November 2, 1949- Remarks of Allan Sproul, president, Federal Reserve Bank of New York, before Forty-fifth Annual Meeting of Life Insurance Asso- ciation of America, New York City, December 12, 1951. Report of the four member committee (Chas. E. Wilson, chairman), 128 Reserve Bank reserve requirements and Federal Reserve credit 106 3 Treasury Department, preparation of answers to questionnaire------ 70 |