Loading...
HomeMy WebLinkAboutEconomic Stabilization Task Group 1965 Y c p 1 ECONOMIC STABILIZATION TASK GROUP April 22, 1965 AGENDA Introductions Dr. Emmette S. Redford Committee Chairman Col. Laurence T. Ayres Executive Assistant /Resources Plan of Operation for Emergencies Dr. Redford Emergency Planning in the Mr. James L. Cauthen Banking Community Vice President Federal Reserve Bank Dallas Planning Concept for the State Colonel Ayres Concept of the Committee. Problem Dr. Redford Proposed State Organization Colonel Ayres Problems in the Operation of a Dr. Redford Program Organization of Task Groups Dr. Redford Discussion - v= STATE OF TEXAS EMERGENCY RESOURCES PLANNING COIoIIT1EE ECONOMIC STABILIZATION TASK GROUP CONFERENCE April 22, 1 9 6 5 - rn 4 3 x 1. GENERAL: A conference of the Economic Stabilization Task Group was conducted under the chairmanship of Dr. Emmette S. Redford in the Emergency Operating Center, Department of Public Safety, Austin, Texas, at 9 :00 a.m., April 22, 1965. 2. PURPOSE: To familiarize the membership with the requirement im- posed on this task -group by the Emergency Resources Planning Com- mittee; to discuss and decide upon the organization of this task group in order to accomplish planning in the areas of: (1) rent control (2) price control (3) rationing; to discuss ways and means of carrying out the required functions of this activity in tine of emergency; and to determine and recommend to the Committee the type organization under which economic stabilization activities should be developed so that the concept recommended can be incorporated in Part A of the Emergency Resources Management Plan. 3. CONFEREES: Chairman Dr. Emmette S. Redford, Professor, Department of Government, University of Texas, Austin; Attorney Theodore E. Frossard, Dallas; Mr. Edgar E. Jackson, Real Estate Sales and Prop - erty Management, Austin; Mrs. Janice May, Department of Government, University of Texas, and past president of State League of Women Voters, Austin; Mr. Edmund L. Nichols representing Commissioner John C. White, State Department of Agriculture, Austin; Dr. John P. Owen, Chairman, Department of Economics and Finance, University of Houston, Houston; Dr. Sydney C. Reagan, Chairman, Real Estate De- partment, Southern Methodist University, Dallas; Mr. Sterling Sasser, Jr., Real Estate and Insurance, Austin; Mr. Leon Stone, President, The Austin National Bank, Austin; Mr. Rayford Young representing Com- missioner John H. Winters, State Department of Public Welfare, Austin; Mr. W. C. McMillen, Regional Representative, Office of Emergency Plan - ning, Denton; Mr. James L. Cauthen, Vice President and Emergency Plan- ning Officer, Federal Reserve Bank of Dallas, Dallas; Mr. D. T. Macleod, Director, FHA Insuring Office, Housing and Hone Finance Agency, San Antonio; Mr. William J. Rogers, Regional Director, Wage and Hour and Public Contracts Division, Department of Labor, Dallas; Mr. H. Earl Rosamond, Director, Community Requirements Branch, Housing and Home Finance Agency, Fort Worth; Mr. Leonard A. White, USDA State Defense Board, College Station; Mr. William B. Wolfe, Jr., Regional Mobiliza- tion Coordinator, U. S. Treasury Department, Denton; and Colonel Laurence T. Ayres, Executive Assistant, Emergency Resources Planning Committee, Austin. I+. ABSENTEES: Dr. Redford expressed his regret that the following individ- ucls were not present at this important meeting to contribute opinions based on their valuable store of knowledge and experience: Mr. H. S. (Hank) Brown, President, Texas State AFL -CIO, Austin; Mr. William J. Burke, Executive Director, State Board of Control, Austin; Mr. T. H. Cleveland, Hall and Cleveland Drug Company, Dublin; Mr. Ernest Elam, • E & I Printing Company, Austin; Mr. Charles E. Green, Executive Editor, Austin American- Statesman, Austin; Mr. Stephen J. Matthews, Executive Director, Texas Municipal League, Austin; Mr. Robert McIeaish, County Auditor, Hidalgo County, Edinburg; Mr. W. W. Overton, Jr., Chairman of the Board, Texas Bank and Trust Company, Dallas; and Mr. W. Victor Womack, President, Womack Brokerage Company, Lubbock. 5. SUMMARY: Dr. Redford introduced the conferees present and explained absences of certain task group members. He then stated that a major decision was to be made at the conference, but first he would comment on the reason for the formation of the Committee. ". . . In case of a nuclear attack on this country, a third or more of the pupulation might be killed and sections of the country isolated from other sec- tions. The National Government would have the responsibility for the continuation of the economic stabilization program and the supply of the essential services and items such as food, etc. to the people. However, in areas wherein the National Government would be out of contact - or even if it had contact and would not be able to operate - there would be a temporary period in which the state and local govern- ments would have to assume responsibilities for the application for these national problems for rent stabilization, price stabilization and rationing. Some areas of the country would be contaminated by fallout and other effects of the bombing and civil defense would be a major activity of the total government. In other areas of the country, where the majority of the government was left intact, it would be assumed that the states and communities were prepared to conduct emergency operations for thirty to ninety days until the National Government was able to take over the responsibility . . ." Mr. McMillen was asked by Dr. Redford to comment. Mr. McMillen: ". • • The Federal Government might be quite ineffective and during the interim period the Governor of the State would be asked to assume the responsibility to carry out Federal policies. The organi- zation within each state, it is to be hoped, would be such that the Fed- eral Government, when again effective, could take over the same organi- zation, use the same people and pull them all together as a total team; working, then, with the Federal Government rather than specifically for the state. The Office of Emergency Planning has consummated contracts giving some assistance to states involved in this planning. A state is expected to come up with a plan and organization to recommend to the governor; the Federal Government believes that a governor will accept the challenge and give consideration to assuming the responsibility during the interim period of sixty to ninety days. However, that period might be extended to six months. I can assure you that the President of the United States is very, very interested in this program . . ." Dr. Redford concluded this portion of the conference by informing the group that the decision to be reached during this meeting was relative to a recommendation to the Committee of the type organization to super- vise the economic stabilization program. Mr. Cauthen gave a concise and abbreviated verbal picture of the emergency planning program and operation of the Federal Reserve banks. (Enclosure No. 1) -2- • • Colonel Ayres presented material developed by the Planning Committee at the February 26 conference relative to planning concept for the Parts A and B of the State of Texas Emergency Resources Management Plan. At this point Dr. Redford outlined the scope of the problem with which the group is faced and asked Colonel pyres to present a proposal, de- veloped by Dr. Redford and Colonel Ayres during previous conferences, to the group for consideration. The proposal concerned a basic organi- zation and is shown in enclosures 2 and 3. It was recommended and ap- proved that Enclosure No. 2 be submitted to the Emergency Resources Planning Committee for inclusion in Part A of the basic plan and En- closure No. 3 be used as a point of departure to build on in the por- tion of the plan to be developed by this task group. Mr. Jackson suggested considering assigning to the Texas Real Estate Commission the emergency task of acting as the Governor's staff agency in the field of economic stabilization. Following a brief break, Dr. Redford commented on the philosophy of a wartime economic stabilization program, chiefly in the fields of rent, price control and rationing. Key elements in each are the dissemina- tion of information and enforcement of the program. Voluntary com- pliance is essential. The most complex operating job of the three is rationing. Enforcement is more difficult and, further, there are counterfeiting problems with which to cope. Population registration and issue of basic evidence is a problem of magnitude. The printing and safeguarding of exchange matter is complicated. Dr. Redford named Mr. Frossard as Chairman of the Rationing Project Group; Dr. Owen as Chairman of the Rent Project Group; and Mr. Womack as Chairman of the Price Project Group. 6. CONCLUSION: a. Enclosure No. 2 is recommended to the Emergency Re- sources Planning Committee for inclusion in Part A, basic plan. b. Project groups are organized as shown in Enclosure No. 4 c. The next conference is scheduled for Thursday, May 20. The first portion of the next conference will be conducted by the three project group chairmen for their groups and the task group chairman (Dr. Redford) will terminate the conference with a full task group session. Enclosures: 1. Emergency Planning, Federal Reserve Bank 2. Item for Part A, basic plan 3. Concept for Section II, Part B 1.. Project group assignment -3- • • ORGANIZATION EMERGENCY PLANNING FEDERAL RESERVE SYSTEM PRESIDENT OF THE UNITED STATES OFFICE OF CIVIL DEFENSE OFFICE OF EMERGENCY SURVIVAL PROGRAM PLANNING LIFE - PROPERTY EMERGENCY PREPAREDNESS I I - -- - --+ BOARD OF GOVERNORS OF THE DEPARTMENT FEDERAL RESERVE SYSTEM OF THE TREASURY r ' CONFERENCE OF PRESIDENTS OF THE FEDERAL RESERVE BANKS COMMITTEE ON EMERGENCY OPERATIONS Watrous H. Irons, Chairman EMERGENCY OPERATIONS W. Braddock Hickman PROGRAM COMMITTEE Charles J. Scanlon F.R.B. DALLAS H. B. Zachry, Chairman • D. A. Hulcy Ralph A. Porter 1 1 s ' 1 ( 1 1 FEDERAL RESERVE BANK OF DALLAS (One of 12 Federal Reserve Banks) (Enclosure No, 1) D EMERGENCY PLANNING RESPONSIBILITIES OF FEDERAL RESERVE BANK OF DALLAS DIRECT RESPONSIBILITIES: I. Provide for the continued operation of the Dallas Reserve Bank II. Supply credit for essential purposes III. Supply currency IV. Provide for the collection of cash and noncash items V. Act as Fiscal Agent of the United States VI. Promote commercial bank emergency planning CONTINGENT RESPONSIBILITIES: I. Operate Federal Open Market Committee II. Act on behalf of incapacitated Federal Reserve banks III. In absence of communications, assume functions of Board of Governors of the Federal Reserve System EMERGENCY PLAN OF FEDERAL RESERVE BANK OF DALLAS I. Provisions made for the continued operation of this bank A. Relocation sites and records storage centers established 1. Primary - San Antonio Branch, San Antonio, Texas 2. Secondary - Federal Center, Denton, Texas B. Duplication and storage of essential records 1. Records of daily transactions forwarded to storage centers daily 2. Other records updated periodically 3. All records tested and audited periodically C. Succession lists 1. Directors 2. Chief Executive Officer 3. Assistant Federal Reserve Agent D. Operating instructions 1. Emergency Manual for Chief Executive Officer 2. Detailed departmental procedures covering emergency operations at either San Antonio or Denton E. Personnel preparedness planning 1. Training a. Open Market operations - policy, technical, and foreign b.' Board's liaison office c. Damage assessment d. Radiological detection equipment 2. Assignment a. Cadres of officers and employees designated for relocation on DEFCON 2 and 1 - 2 - 3. Protection a. Building evacuation b. Fallout shelter area designated c. Assembly points designated II. Supplying credit for essential purposes A. Objective - to provide liquidity for financing essential activities and to provide confidence in the continued operation of the monetary and banking system B. Emergency Bulletin No. 12A covering emergency lending operations furnished all commercial banks III. Provisions to supply currency A. Currency will be made available to meet essential needs, subject to allocation and control B. District divided into 12 areas and 22 cash agents designated C. Operating instructions furnished cash agents and Emergency Bulletin No. 5A furnished all commercial banks IV. Provisions for the collection of cash and noncash items A. Checks will be cleared, including those drawn on damaged or destroyed banks. Checks issued postattack will be subject to the usual controls. B. District divided into 17 areas with a check agent designated for each area. The agent is either a single bank or a group of banks acting together. C. Detailed operating instructions have been furnished all agents and emergency Bulletins Nos. 8B and 9A, covering the collection of cash and noncash items, have been furnished all commercial banks. -3- V. Act as Fiscal Agent of the United States A. The Treasury has provided us with emergency operating instructions covering the various Fiscal Agency activities. VI. Promotion of commercial bank emergency planning A. In addition to the Emergency Bulletins referred to, commercial banks have been furnished: 1. General Emergency Circular of this bank summarizing all emergency operations between commercial banks and this bank 2. Treasury Department Emergency Banking Regulation No. 1 3. Treasury Department Delegation to Board of Governors of Federal. Reserve System of Emergency Authority 4. Board of Governors' Emergency Regulations Nos. 1 and 2 5. Form for commercial bank's use in reporting operating status after attack 6. Other information relating to emergency planning EXTRACT FROM DRAFT OF EXECUTIVE ORDER PROVIDING FOR THE ADMINISTRATION OF RESOURCE MANAGEMENT AND ECONOMIC STABILIZATION PROGRAM By virtue of the authority vested in me in a nuclear attack emergency by the laws of the State of Texas in order to provide for the administration of the emergency resource management and economic stabilization activities for which the State is responsible during a nuclear attack emergency, it is hereby ordered: Section 1. Establishment of a Resource Assistant to the Governor: Section 2. Functions Section 3. Resource Management Responsibilities: Section 4+. Resource Agencies a. The organizations designated in this Section 1 -, hereafter referred to as Resource Organizations, are hereby assigned emergency resource management func- tions with respect to resources' under the jurisdic- tion of the State. These resource organizations shall provide policy and guidance and assure neces- sary resource support for carrying on designated resource functions in the State. (10) The Economic Stabilization organization: Advise on and prepare guidance relative to price stabilization, rent stabilization and consumer rationing; conduct price stabilization, rent stabilization and consumer rationing functions during an emergency. The Director of Economic Stabilization shall provide for the operation of the State Economic Stabilization organiza- tion. b. There shall be at the head of each of the fore- going organizations a Director who shall.be appointed by and report to the Governor through the Resource Assistant to the Governor. These Directors, with rer spect to those resources for which they are assigned responsibility, and subject to the coordination and guidance of the official responsible for resource management, shall perform the following functions: Section 5. Establishment of the Resource Priorities Board: • (Enclosure No. 2) TO BE INCLUDED IN PART B - RESOURCE SECTION The State Economic Stabilization organization is headed by a Director, appointed by the Governor, serving without pay at the pleasure of the Governor on an as needed" basis and supported by not less than twelve (12) additional.State Executive Reservists who compose: (1) the Emer- gency Staff of the Economic Stabilization organization, and (2) the Planning Committee, State of Texas Economic Stabilization Task Group. The permanent staff of the Economic Stabilization organization shall be headed by an Executive Director and shall be of sufficient size to accomplish prescribed tasks. It shall be assigned to and work with the staff of the Resource Assistant to the Governor except during an emergency when the Economic Stabilization organization is mobilized to full operating strength. The State Economic Stabilization organization is as shown below: DIRECTOR 1 US DEPARTMENT DEPUTY FEDERAL FINANCIAL OF LABOR DIRECTOR AGENCIES PRICE CONSUMER RATIONING RENT OPERATIONS OPERATIONS OPERATIONS DIVISION DIVISION DIVISION (Enclosure No. 3)