Evening star., 1934-11-11
ECCLES NEW HEAD
OF RESERVE BODY
Appointee Stanch Advo-
cate of Administrations
Policies.
By the Associated Press.

By the Associated Press.
A stanch advocate of administra-
ton policies that have brought obvi-
Gus displeasure to some conservatives
was named yesterday by President
Roosevelt to be governor of the Fed
eral Reserve Board.
Only A, small, brisk and quick
spoken, he is Mariner S. Eccles, who
has been Assistant Secretary of the
Treasury. He succeeds Eugene r.
Black of Atlanta, who resigned some
time ago to become an official liaison
man between the administration and
the banking world in general.
Eccles and Secretary Morgenthau
have gotten on we'll. The transfer of
the Utah financier to head the power
full Reserve Board was regarded by
those in intimate touch with the situ-
alton as indicating closer cooperation
between the two agencies in the
future.
Black quit his post with the ad-
ministration's benediction. but was
regarded as more orthodox in his
financial views than the Westerner
who succeeded him yesterday.
III
Back in February. 1888, when the
Senate Finance Committee was lis
tening to bankers, publishers, indus
tralistS and others give their recipe
for depresSion's cure, Eccles put for
ward a program which he smilingly
said might brighten those of our
people who possess wealth.
10 hot nf
money into the hands of those who
lacked it, rather than imitation. was,
in his opinion, one way to help restore
prosperity.
There is plenty of money" he said,
"but the trouble is that it is in the
wrong place"
Eccles advocated a five point pro-
gram for immediate action at the
time:
A direct grant to the States for
unemployment relief; increasing Gov
ernment funds for public works; re-
financing farm mortgages at lower
interest rates; adoption of the domes-
tic allotment plan for farm relief and
settlement of the war debt question,
with cancellation being preferable"
Every point in that program, save
war debt cancellation, has been adopt
ed by the Roosevelt administration
and the rest of the world apparently
has carried out his suggestion with
regard to the debts.
Banking System Plan.
In view of his appointment to the
agency which aids in directing the
country's credit policies, Eccles' ad-
vocacy at the time of unified bank
ing system, under Federal Reserve
supervision, appeared unusually sig
nificant to observers.
There was no indication, however
that the central bank. bugaboo OF
many financiers. was seriously being
considered by the in administra-
tion circle.
Amendments to the Federal Reserve
act to put credit control more directly
under Government authority might
be another matter.
Eccles' belief that the Government
must take the lead in the effort to
restore normal conditions was EN-
phatically stated at his Senate Com
mittee appearance.
action is taken by the Federal Govern
ment" he testified.
His frankness drew the attention OF
administration officials busily search
ing for financial experts who disagreed
with orthodox views.
1T will be pleasure and privilege
Eccles said after his appointment, ito
follow the leadership of President
that has shown such courage and
progressiveneSs in attempting to meet
the requirements of the times"
He was asked by reporters whether
a more direct connection between the
Treasury and the Federal Reserve
Board might result from his nomina-
ton
Against Encroachment.
His reply was that he thought there
should always be the closest alliance"
and there might be increased CO.
operation, but that he expected no
encroachment on board independence.
Until 1882, Eccles voted the Repub-
lican ticket. He broke away that year.
He said yesterday that Mr.. Roose-
yelt's ideas of what should be done
appealed to me and since that time
I have been one of his supporters"
Judging by the program he ad-
vanced before the Finance Committee
and subsequent developments, Eccles
has Influenced administration action
more than some of the professors who
have been credited with originating
emergency legislation.
He favored social insurance legisla-
ton. anti-child labor laws, old age
pension, high income and inheritance
taxes, national planning to co-ordi-
nate private and public activities and
the rigid control of security issues.
He helped draft the Federal housing
act.
The White House announcement OF
his appointment said he had acted
as liaison representative with other
Federal agencies having to do with
banking and finance.
OF Mormon ancestry, Eccles was
born and reared in Utah. He headed
a group of financial institutions in
Utah and Idaho before he became
Assistant Secretary After entering
the Treasury, he resigned his banking