Evening star., 1949-03-10
Hoover Urges
Radical a|Change
For Treasury
Would Put FDIC, RFC
And Export-Import
Bank Under Agency
By Francis P. DouqIos

The Hoover Commission re
ported to Congress today that tn,
Treasury Departments organiza
tlon and methods have become OBJ
solete and the department shoule
be thoroughly reorganized.
The commission recommended
an end to political appointment!
of collectors of internal revenue
and customs and certain othel
jobs regarded by some as sine.
cures" All officials below Assist.
ant Secretary should be appointed
from the career service without
Senate confirmation, the commits.
sion said.
1t also recommended formation
of domestic lending council ir
connection with the Treasury tt
advise on policies and coordinate
the operations of these agencies.
There are 80 agencies lending
money or guaranteeing or insur-
ing loans, the commission pointed
out. 1t said it does not at present
favor placing them in the Treas
ury. but there should be co-ordi-
nation of their credit policies.
Shift of Agencies.
AS forecast in The Star recently
the commission recommended plac-
ing the Reconstruction Finance
Corp, the Federal Deposit Insur-
ance Corp, and the EXport.Import
Bank in the Treasury. This drew
dissents from several commission
members.
These transferred corporations
would form one major division in
q revised organization of the de-
partment.
Another division would be the
revenue service resulting from q
consolidation of the Internal Reve.
nue. and Customs Bureaus.
The fiscal service would form
still another main division. II
would include management OF
Federal finances, custody and dis
bursement of funds, management
of the debt, savings bonds sec
ton, the mint, the Bureau of En-
craving and the Secret Service
Another section would be the
Office of Liquidation. This would
take in the 10 lending agencies
whose affairs are now being
wound up.
A banking and international
finance group would include the
Office of international Finance,
the controller of the currency and
a new National Monetary and
Credit Council to act in connec-
ton with the lending agencies.
Administrative services would
also be grouped together. The
proposed Office of Accountant
General completes the list of these
divisions.
The commission - Commission
on Organization of the Executive
Branch, headed by former Presi-
dent Hoover-said savings to be
made by such a reorganization
ARE considerable"
Two commission members, De-
fense Secretary Forrestal and
Representative Brown, Republi-
can, of Ohio. opposed the trans
fer of the FDIC, which insures
bank deposits up to $4,000. They
said the corporation does not re-
quire any appropriation of funds
and should be left independent
unless Congress transfers all
banking activities to the Treasury
including the Federal Reserve
System.
Three Others Dissent.
Three other members. Senator
Aiken, Republican, of Vermont
DR.. James K. Pollock and James
H. Rowe, jr., opposed the transfer
of the FDIC, the RFC and the
Export Import Bank.
They said they did not oppose
placing the three agencies in the
departmental structure, but felt
the Treasury was the wrong de-
partment for the Export Import
Bank and the RFC. They favored
placing those two agencies in the
Commerce Department. Their po-
sition on the FDIC was somewhat
similar to that of Secretary For
restal and Mr.. Brown.
The commission recommended
transfer of the Narcotics Bureau
to the Justice Department., since
it is more concerned with en-
forcement of narcotics regulations
than with tax collections.
Recommendations for shifting
the Coast Guard from Treasury
to Commerce and the Bureau of
Federal Supply to a new General
Services Office had been an