COMMITTEE REPORT 
To the Board of Directors of the 
Chamber of Commerce of the United States: 
introductory 
Extended 
Report 
Auxiliary 
Statements 
Recommendations 
for Decision 
Nature of 
Recommendations 
Management 
Emphasized 
The undersigned, as a committee appointed to review the exten- 
sive report upon the federal reserve system recently submitted by the 
Banking and Currency Committee of the Chamber, find it to be cur- 
rently’ applicable and to contain recommendations which should 
have the consideration of the organizations in the Chamber mem- 
Yership. 
The report— “The Federal Reserve System”—and the eight 
quxiliary statements upon special phases of the system, should con- 
ribute to the development by the American business public of a 
;pirit of sober and sympathetic criticism of the system, and in their 
sntirety will repay review by the business community. They should 
se considered as a whole in connection with our observations below. 
We have found it practicable to select from the report certain 
-ecommendations which in our judgment lend themselves to expres- 
ions of approval or disapproval by the member organizations. We 
have omitted conclusions that are so technical in nature or so general 
1s to be unsuited to this purpose. A few of the recommendations we 
present below differ in literal statement but are compatible in sub- 
tance with those of your Banking and Currency Committee, of 
vhich all of the undersigned were members. 
We believe it is significant that in the studies of the Banking 
ind Currency Committee, extending over a year, and in subsequent 
review, made in the light of recent developments, there are rela- 
ively few recommendations for changes in the Federal Reserve 
Act or in the administrative policies or practices of the system. In 
10 instance is there insistence upon the necessity of immediate legis- 
lation. Instead, the emphasis is upon the importance of a capable 
and politically independent management and upon the wisdom of 
permitting the system to develop improvements in practice un- 
hampered by upsetting investigations or by attempts at narrow legis- 
‘afive control of its policies. 
It is recognized, however, that it is not possible to foretell when 
anarmful proposals will be vigorously agitated. It is well, therefore, 
for the business community to register without undue delay its con- 
sidered opinion upon fundamental aspects of the system. 
(Continued on page 6)