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Memorandum for the President CARTER GLASS, VA., CHAIRMAN KENNETH MCKELLAR, TENN. FREDERICK HALE, MAINE ROYAL S. COPELAND, N. Y. HENRY W. KEYES, N. H. CARL. HAYDEN, ARIZ. GERALD P. NYE, N. DAK. ELMER THOMAS, OKLA. FREDERICK STEIWER, OREG. JAMES F. BYRNES,'s. C. PETER NORBECK, S. DAK. MILLARD E. TYDINGS, MD. L. J. DICKINSON, IOWA RICHARD B. RUSSELL, JR., GA. JOHN G. TOWNSEND, JR., DEL. MARCUS A. COOLJDGE, MASS. ROBERT D. CAREY, WYO. ALVA B. ADAMS, COLO. COMMITTEE ON APPROPRIATIONS PATRICK MCCARRAN, NEV. JOHN H. OVERTON, LA. JOHN H. BANKHEAD, ALA. JOSEPH C. O'MAHONEY, WYO. WILLIAM GIBBS MCADOO, CALIF. HARRY S. TRUMAN, MO. KENNEDY F. REA, CLERK JOHN W. R. SMITH, ASST. CLERK January 23, 1936. 9:15 A. M. Memorandum for The President I hare made as searching an inquiry as seemed possible within the limit of time at my disposal, concerning J. Blain Shaum and also in regard to Robert T. Steuart, suggested for membership on the Federal Reserve Board representing agriculture. Neither of the Missouri Senators ever heard of Shaum, and Senator Clark found upon personal inquiry that neither of the two Collectors of Internal Revenue for Missouri, who happened to be in Washington, had ever heard of him. Inquiry of the two outstanding and most widely circulated faim papers in Missouri revealed no knowledge of Mr. Shaum. Inquiry of the Kansas City Star people disclosed that Shaum is not an actual farmer, but a fam agitator holding some official position with a farm organization in Missouri. He is said to be a protege of former Secretaxy Hyde, the bitterest and most foolish official of the Hoover administration. Inquiry of the two Oklahoma Senators concerning Robert T. Steuart revealed that both of them regard Steuart as an out- standing citizen of their state. Senator Gore stated that he had been committed,by request, to the reappointment of Thomas; but said if Thomas is out of the picture he would enthusiastically endorse Steuart, who, in his opinion, is a man of fine character and intelligence. Senator Thomas laughingly said that Steuart is opposed to eveiything which he advocates in economics, but is a self-made man of fine character and intelligence who would undoubtedly make a useful member of the Federal Reserve Board, if appointed. I eci told Steuart faims a thousand acres in Oklahoma and has many more in the Rio Grande section of Texas in John Garner's district. I was unable to contact Garner, who knows Steuart well; but I suggest that you call him on the telephone and get his estimate of the man. I asked Jesse Jones about it and was told that Steuart is a person of exceptional executive capacity, wealthy, an extensive land-own©r and con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis CARTER OLASS, VA., CHAIRMAN KENNETH MCKELLAR, TENN. FREDERICK HALE, MAINE ROYAL S. COPELAND, N. Y. HENRY W. KEYES, N. H. CARL HAYDEN, ARIZ.. GERALD P. NYE, N. DAK. ELMER THOMAS, OKLA. FREDERICK STEIWER, OREG. JAMES F. BYRNES,' S. C. PETER NORBECK, S. DAK. MILLARD E. TYDINGS, MD. L. J. DICKINSON, IOWA RICHARD B. RUSSELL, JR., GA. JOHN G. TOWNSEND, JR., DEL. MARCUS A. COOUDGE, MASS. ROBERT D. CAREY, WYO. ALVA B. ADAMS, COLO. COMMITTEE ON APPROPRIATIONS PATRICK MCCARRAN.NEV. JOHN H. OVERTON, LA. JOHN H. BANKHEAD, ALA. JOSEPH C O'MAHONEY, WYO. WILLIAM GIBBS MCADOO, CALIF. HARRY S. TRUMAN, MO. KENNEDY F. REA, CLERK JOHN W. R. SMITH, ASST. CLERK ducting successful farming operations in both Oklahoma and Texas. He is said to hare organized and successfully administered an insurance coc^any also. I have no personal acquaintance with either Sfcaua or Steuart; but I get the very definite impression that Steuart is infinitely the superior man. Mr. Eccles thinks it is desirable to have a Republican farmer. I do not agreessince you already have two Republicans in your list of contemplated appointees in the person*of Eccles and McKee*and that is enough. The Congress, after discussion, refused to require you to make a-non-partisan board; but I think it is wise to do so, as you have done. As to Persons and Ransom, I conclude it is a toss-up, with Ransom having a shade the better of the argument since for three years he has been chairman of the legislative committee of the imeriean Bankers1 Association and is thoroughly familiar with banking legislation. Moreover, I find that he and his friends bitterly resent the suggestion that he is not completely committed to your renomination and election. Ihqy tell me that Ransom raised nearly every dollar for the expenses of your recent reception in Georgia, is now engaged in raising a fund to promote a favorable delegation from Georgia and has endeavored in every way to abate the antagonism of Talmadge. I doubt the wisdom of embittering Ransom and his friends when they thus make vehement protestations of loyalty to you. Leaving out the question of politics altogether, I would say either Ransom or Persons would make a useful maaber of the Federal Reserve Board. Persons, I aa told by both Eccles and Senator Blade, will not accept more than a two-year appointment, stating that he cannot afford to live in Washington and would want to return to his bank in Birmingham. Ransom, I am told, would want to make Federal Reserve bank administration a career. Mr. Eccles and I experienced no difficulty in adjusting the tenns of your proposed nominees, and I respectfully suggest that you name Mr. Broderick as vice-chairman of the Board,since he has had a longer and more varied experience than any one of the other nominees for the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis CARTER GLASS, VA., CHAIRMAN KENNETH MCKELLAR, TENN. FREDERICK HALE, MAINE ROYAL, S. COPELAND, N. Y. HENRY W. KEYES, N. H. CARL, HAYDEN, ARHC. GERALD P. NYE, N. DAK. ELMER THOMAS, OKLA. FREDERICK STEIWER, OREG. JAMES F. BYRNES.'S. C. PETER NORBECK, S. DAK. MILLARD E. TYDINGS, MD. L. J. DICKINSON, IOWA ** Jbenate RICHARD B. RUSSELL, JR., GA. JOHN G. TOWNSEND, JR., DEL. COMMITTEE ON APPROPRIATIONS PATRICK MCCARRAN, NEV. JOHN H.OVERTON, LA. JOHN H. BANKHEAD, ALA. JOSEPH C O'MAHONEY, WYO. WILLIAM GIBBS MCADOO, CALIF. HARRY S. TRUMAN, MO. KENNEDY F. REA, CLERK JOHN W. R. SMITH, ASST. CLERK — 3 — The suggested terras are: Brod eri ck years; Szymozak 12 years; McKee 10 years; The farmer member 8 years; If Ransom should be selected -6 years; Eccles 4 years; (He says he prefers a two-year tern, but there is some complication); Morrison 2 years• Should there be anything lacking in this information, I mill be glad to talk with you either in person or over the telephone and to be of any possible service in the matter. I still think it would be well to send the nominations in as soon as possible; otherwise you will be bothered to death by other applications • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis.
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