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COMMITTEE REPORT

Inforaptien To insure the desirable type of criticism, it is essential that the
Troggs Srivisten public be provided with ample information relative to the activities
Policies of the reserve banks. The amount of valuable credit information,
statistical and otherwise, supplied by the federal reserve system is
far beyond that furnished by foreign central banks. For this accomplishment,
 the reserve administration is to be commended. But in
providing the country with official or semi-official explanations of
the basic purposes of major policies, much yet remains to be done.
The scheme of twelve regional banks and the division of responsibility
 between the Federal Reserve Board and the district officials
increases the difficulty of supplying the public with the desired interpretations
 of reserve policies. It is to be recognized that various
officials may support the same measure from different points of view
and that to secure agreement upon the factors to be emphasized may
create discord within the system. The further fact that a certain
measure might accomplish one useful purpose, but not precisely that
originally avowed. must also serve to retard explanation.

Difficulties
Recognized

Possibilities if
Difficulties Not
Overcome

But despite the difficulties attendant upon complete statements
of intent, no secretive policy will succeed in securing approval for
the reposal in the reserve administration of a large degree of discretionary
 power. An ill-informed public will demand precise statutory
 limitations. Without ample knowledge, public criticism cannot
be intelligent and beneficial. The more abundant the information
and the sharper drawn the issues, the less fertile becomes the field in
which charges of ulterior motives can be sown. When ignorance
abounds, the arena belongs to the careless. the radical. and the irresponsible.


[11-Advised
Critics

With general discussion of reserve problems lifted to a higher
plane, ill-advised critics will find it more difficult to secure an
audience of intelligent men. Neither should there be too great apprehension
 regarding the inevitability of frequent reversals of policy.
Thoughtful men understand the imponderable character of most
credit problems and they will not demand that there be complete
-onsistency between the views of different reserve officials as enunciated
 on various occasions.

Reversals
of Policy

The Additional
Information
Needed

The explanations and interpretations advanced in the Federal
Reserve Bulletin, the annual reports of the Federal Reserve Board,
and by various reserve officials in Congressional hearings, have been
highly serviceable and beneficial. What appears to be required further
 is that on irregular occasions of important decisions, men who
occupy prominent administrative positions in the system should seek
to clarify their motives. By this it is not meant that there should be
a newspaper release on every action. But in some recognized way,
[Continued on tage SN