Evening star., 1948-05-28
EccIes Bars Selection
As Vice Chairman But
Stays With Board
ky the kssoeiofsd Press

Outspoken Mariner S. Eccles let
the country know today that he
wants no new job title from Presi- |
dent Truman now.
Mr.. Eccles, one of the last hold
overs from the New Deal front |
ranks, wrote the Chief Executive to
forget about appointing him vice
chairman Of the Federal Reserve
Board.
But Mr.. Eccles simultaneously
served notice on the President
that he will not quit the Federal
Reserve Board, seven-man Or
ganization which wields heavy
power oyer the Nations economic |
affairs.
Associates expressed belief that
Mr.. Eccles is determined to stay on
as board member to fight for his
credit-control and other specific
anti-inflation ideas in the face of
presidential coolness.
Truman Replaced Eccles.
That GOODNESS has taken this
course:
Last February /, Mr.. Truman let
lapse the Craftsmanship of the Re-
serve Board which Mr.. Eccles had
held for more than 13 years under
appointments from President Roose-
velt.
Mr.. Truman told Mr. Eccles he
was replacing him as chairman with
a Republican industrialist, Thomas
B. McCabe of Philadelphia, but that
he wanted Mr. Eccles to remain on
and take the vice chairmanship.
The President did not say why he
replaced Mr.. Eccles except that "it
is my preference" He never has
explained further.
In the four months since Mr.
McCabe has become board chairman
and Mr.. Truman let it be known at
two news conferences that he did
not know when he would name MI.
Eccles vice chairman and did not
care to say why he had not done so.
Letter Conveys Reaction.
Mr. Eccles, who was at his home
in Utah when the President made
the news conference remarks, gave
the President his reaction on his
return here in a letter dated We'd
nesday. Mr. Eccles made 1t public
last night after "a hours of White
House silence.
-Four months have now elapsed
since you first requested me toI
accept the vice chairmanship and
nearly month and half since you
reiterated that request the former
chairman wrote.
Under these circumstances and
In view of other developments. I
wish to withdraw my name from
any further consideration for des-
ignation as vice chairman. I shall
continue to serve as a member OF
the board"
Associates of Mr.. Eccles said the
deposed chairman feels that the ad-
ministration, while siding with him
generally in declaring anti-inflation
action needed, has failed to follow
through.
Eccles Proposed Controls.
r.. ldOG 4NOFChlbSA OS1loSN
Mr.. Eccles in calling for congress
sional action to restrain expan-
sion of inf1ationary bank credit. l"
But the administration has given
Congress no specific proposal, and
Mr.. Truman has joined Secretary
OF the Treasury Snyder in praising
voluntary action by banks to re-
strict lending.
When Mr.. Eccles outlined to Con-
gress a specific plan for restricting
bank lending ability and said the
proposal came from the seven-man
Federal Reserve Board, Mr.. Truman
told reporters Mr.. Eccles was speak
ing only for himself. /
Mr.. Eccles also has come out
strongly for restricting building
credit, contending that super-easy
credit has been instrumental in
pushing UP the prices Of homes.
Mr.. Eccles' term as a member OF
the board runs until February /, 1858