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Show uii n o i t o nygpp t Sy Q Is It a fair question to ask why there hi to much unemployment when production la at an all-time hlfhT A One reason Is that employment never keeps pace with production. As an example In 1046 General Motor produced 1.1 million can and trucks with about 203,000 workers. Today General Motors is turning out cars and trucks at an annual rate of 4.6 million with about 400,000 workers. So G.M. is producing four times as many units as it did In 1946 with only twice the number of workers. Q Can you tell me what the Federal Open Market Commute Is and Its function? A The Federal Open Market Committee Is composed of twelve men. Seven are the public members of the Board of Governors of the Federal Reserve system and are chosen by the President and ap-proved ap-proved by the Senate. The other five are presidents of the Federal Reserve Banks elected by the directors, a majority of whom in turn are selected by private commercial bankers. The Committee meets quarterly In Washington and its function is to initiate broad policy to coordinate Investments of the individual Federal Reserve banks In government securities. They control, without answering directly to anyone, the expansion and contraction of the $25 billion security portfolio owned by the 12 Federal Reserve banks. Business between quarterly meetings is left to an executive committee of five mem-bers. mem-bers. Day to day operations are left to a manager of the so-called Open Market Account. He is Robert Rouse, who also Is vice president presi-dent of the New York Federal Reserve Bank. Q When was the Department of Treasury created? A-The first Congress on Sept. 2, 1789 established the Department of Treasury and Alexander Hamilton was appointed the first Secretary assuming office Sept. 11. 1789. |