C. Douglas Dillon, secretary of the treasury, writes to William McChesney Martin, Jr., Chairman of the Federal Reserve Board of Governors (a Federal agency) that oversees the privately owned Federal Reserve System of (central) Banks, offering the recommendation of his department’s legal staff:

       I realize that the [Federal Open Market] Committee might be hesitant to embark on operations in which it has not engaged since the establishment of the [Exchange] Stabilization Fund under the Gold Reserve Act of 1934.  If the Committee should be interested in the opinion of the Treasury’s General Counsel … the Treasury’s legal staff will be ready to cooperate with yours.

       NOTE: Apparently Dillon knew that the FOMC was already planning on engaging in foreign currency speculation, in direct competition with the department of the treasury.

       [restored 10/1/2022] Thanks to Jim Lorenz for this entry.