MONETARY AUTHORITY HEARINGS BEFORE THE SUBCOMMITTEE OF THE COMMITTEE ON BANKING AND CURRENCY SEVENTY-THIRD CONGRESS ON H.R. 7157 as amended and reintroduced as H.R. 8780 BILL TO ESTABLISH THE FEDERAL MONETARY AUTHORITY AND TO CONTROL THE CURRENCY OF THE UNITED STATES JANUARY 30, 31, FEBRUARY 1, 2, 6, 7, 8, 9, 13, 15, 20, 22, 26, MARCH 1, 6, 7, 8, 1934 CONTENTS Dr. Luther A. Harr, University of Pennsylvania. Mr. Bernhard Ostrolenk, economist for Business Week, New York, Mr. Ambrose W. Benkert, chairman of board of Brookmire, Inc. - Mr. Robert E. Wood, president, Sears, Roebuck & Co., Chicago, Ill. Mr. Alvin T. Simonds, president, Simonds Saw & Steel Co... Mr. John Janney, chairman, executive board of the American Society Mr. Rufus S. Tucker, economist, Brookings Institution, Washington, Mr. Walter E. Trent, New York, N.Y. Dr. O. W. Sprague, Harvard University, Cambridge, Mass__ Mr. C. O. Moser, vice president American Cotton Cooperative Associa- Mr. Paul A. Gow, mining engineer, Butte, Mont. Mr. H. A. Smith, mining engineer, Warren, Ariz Hon. Henry Morgenthau, Jr., Secretary of the Treasury. Hon. Eugene A. Black, Governor, Federal Reserve Board- Rev. Charles Edward Coughlin, Royal Oak, Mich. Mr. Frank A. Vanderlip, New York City.. Prof. Frank Ashmore Pearson, Cornell University, Ithaca, N. Y 477 TO ESTABLISH THE FEDERAL MONETARY AUTHORITY TUESDAY, JANUARY 30, 1934 HOUSE OF REPRESENTATIVES, COMMITTEE ON BANKING AND CURRENCY, Washington, D.C. The subcommittee this day met at 3:30 p.m., Hon. T. Alan Goldsborough, presiding. Mr. GOLDSBOROUGH. This is a meeting of the subcommittee appointed by the chairman of the Committee on Banking and Currency to consider H.R. 7216 and H.R. 7157, which bills are identic and will be considered as the Steagall-Goldsborough bill. We will consider H.R. 6854 also. STATEMENT OF DR. LUTHER A. HARR, PROFESSOR OF BANKING AND FINANCE, WHARTON SCHOOL, UNIVERSITY OF PENNSYLVANIA Mr. GOLDSBOROUGH. The first witness is Prof. Luther A. Harr, professor of banking and finance at the University of Pennsylvania. Give your full name, please. Dr. HARR. Luther A. Harr. Mr. GOLDSBOROUGH. And your occupation. Dr. HARR. I am professor of banking and finance at the Wharton School, University of Pennsylvania. Mr. GOLDSBOROUGH. Professor Harr, this subcommittee would be glad to hear any statement that you have to make concerning the proposed legislation; and I am certain that the members of the subcommittee would like to question you. Would you prefer to make your statement first? Dr. HARR. It is immaterial to me how I proceed. I can follow your desires. Mr. GOLDSBOROUGH. If it is immaterial, the subcommittee would rather have you make the statement first. Dr. HARR. Very well. I may say at the outset that I did not learn about this meeting until about 11 o'clock last night, and therefore I have not written a statement, but I think I can make a statement without the necessity of having to read one. The passage of the monetary bill, I think, was only a partial solution of the problems facing this administration dealing with the question of money in its broad sense. After all, due to the fact that practically 90 percent of the business transactions of the United States are financed by the use of bank-check currency, and by the use of cash, the money problem becomes largely a banking problem. |