Evening star., 1935-06-24
AdoIph c. Miller Asks Free.
dom of Agency From
Politics.
COURSE TAKEN EARLY
IN 1929 IS DEFENDED
Suggests Modification of Admin.
istration Bill-Hits Open Mar
ket Policy Compromise.
By the Associated Press.

ny bLe hSSoClhLSu ETeSbs
Centralized control Of the Nation
credit was urged today by Adolph c.
Miller, a member of the Federal Re-
serve Board.
He recommended notifications in
the administration banking bill,
which has been approved by the
House. Compromise suggestions for
putting responsibility for open market
policies and discount rates in a new
agency were attacked by Miller, who
is dean Of the Reserve Board.
In lengthy statement. Miller said:
Final authority and continuous
responsibility for national credit poll
cies should be concentrated in a sin
gle, impartial, disinterested public
body having a national viewpoint and
owing undivided allegiance to the
general public interest"
New Independence Asked.
Basing his arguments on differences
arising within the board during the
speculative boom preceding the 1929
crash, and urging changes in the
banking bill to give the board a new
independence in exercising credit and
money control, Miller recommended
that the present Open-market Com
mittee, representing the IL Reserve
banks, be continued with power to
initiate open-market policies subject
to the boards final determination.
The Open Market Policy Committee
has to do with buying and selling of
Government securities.
Miller also would strengthen the
boards independence by longer terms
and voluntary retirement at 10 on
pensions and require one more than
a majority vote in the boards deci-
sions.
The American Liberty League in a
statement opposed enactment of any
measure which centralizes control of
credit policies. In attacking title 2 of
the administrations bill, the league
said
Title increases the authority of
political officers Of the National Gov
ernment over the Federal Reserve
System In such a way as to furnish
potential menace to the integrity of
our credit and monetary systems
Also, 1t skirts dangerously near the
borders Of unconstitutionality, II it
does not actually overstep them"
Referring to the 1929 situation.
Miller said.
During the tension occasioned by
the acute differences over the leader
ship OF the Federal Reserve System in
the six months following the boards
declaration of its position of Febru-
ary 2. 1929, the five members of the
board who took the responsibility of
formulating the attitude and policy
for the Federal Reserve System were
opposed by minority of their own
membership"
Defends Boards Judgment.
This minority, he said, included the
Secretary Of the Treasury, the gov
ernor and the vice governor, the II
Federal Reserve banks, the Federal
Advisory Council and many of the
largest member banks.
This was formidable opposition. /"
he continued. Nevertheless the
board adhered to its position, firm in
its conviction that it was pursuing
the only proper and effective course
OF action, belated though it was,
which was open to the Federal Re-
serve System at the time.
That it did not err in its judg-
ment from a public point of view
seems sufficiently established by the
fact that several of the most i'm
portant amendments written into the
banking act of 1888 with regard to
the Federal Reserve System were
based upon the attitude of the board
as expressed in 1929 and the proce-
dures then developed"