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 extensive
 report upon the federal reserve system recently submitted by the
Banking and Currency Committee of the Chamber, find it to be currently’
 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 conribute
 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 expresions
 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 subtance
 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 relaively
 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 legislation.
 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 unhampered
 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 considered
 opinion upon fundamental aspects of the system.
(Continued on page 6)