Evening star., 1961-06-18
ECONOMIC
Committee Requests
Changes for Stability

zation and structure, the COM
mission proposed to encourage
coordination among all agen-
'cies by requiring the President
to issue a statement when he
determines that the economy is
moving off track.
Pressure Need Cited
He would be required specifi-
cally to explain any "inconsis-
tencies" in corrective action by
Government agencies. These
statements, the commission
said. would highlight conflicts
and exert pressure for their
resolution.
The commission also proposed
to encourage coordination by
assigning the Federal Reserve
and all Government agencies
the same broad statutory goals
/ for economic sta bility and
growth.
/ And the commission proposed
to base Federal Reserve ap-
pointments on ability rather
than allocating seats on the
basis of occupation and geog-
raphy.
/ Other conclusions and rec
concentrations included the fol-
lowing:
/ No specific target should be
established for the rate OF
economic growth. but growth Of
I312 to 4l2 per cent annually
would be a reasonable" expec-
tation.
The Federal Reserve should
buy and sell Treasury securities
/ of varied maturitieS on the
open market. instead of con-
centrating Cn short-term is
sues.
/ Reserve requirements for
banks that are members of the
Federal Reserve System should
be identical, and the distinc-
ton between city and country
banks should be eliminated.
/ Require all insured CONNER
cial banks to join the Federal
Reserve.
( Abolish the statutory CELL
ings on the public debt end
on the maximum interest rate
payable on Treasury bonds.
Increase unemployment cCm-
pensation payments and re.
quire all States to conform to
Federal standards.
/ Avoid debt retirement when
business is in a downSwing. The
commission maintained that
| the debt is not too big for The
economy.
Give banks. savings and loan
associations and other financial
institutions increased leeway in
making loans and establishing
interest rates, so they can COM
pete on more nearly equal
/ terms.
Liberalize rules on branch
banking, and make Federal
charters available to mutual
savings banks and life inSur-
ance companies.
Regulate pension funds.
Remove ceilings from inter-
est rates on Federal Housing
Administration. Veterans Adj
ministration and agricultural
loans.
Use agricultural credit to dis
courage inefficient small-scale
farming.
Avoid devaluation Of the dol
lar, and combat balance of
payments difficulties through
such measures as expanding
exports. cracking down on gold
speculators, establishing ar
rangements among foreign CEN
tral banks for borrowing cur
rency reserves and increasing
the international Monetary
Funds resources and borrow
ing power.
Use. loan insurance and guar
antees of private credit, when
possible, in preference to direct
Federal loans.
Reserve Rule Attacked
Eliminate the requirement
that freezes about Sl2 billion of
the Nations S18 billion none
tary gold stock as a reserve
against currency, making the
entire gold stock available to
combat international runs" on
the dollar.
The commissions vice chair
man is H. Christian Some,
board chairman of the National
Planning Association. Other
members include Mariner S.
Eccles, former chairman of the
Federal Reserve Board; Gaylord
A. Freeman. jr.. president of the
First National Bank of Chicago;
David Rockefeller, president CT
the Chase Manhattan Bank;