Inflation Fighter: Martin Was Resolute As Hard-Money Man
When William McChesney Martin appeared before the Senate Banking Committee to be confirmed as Chairman of the Federal Reserve Board in 1951, Sen. Paul Douglas fixed him with a solemn look and said:</br></br>Like many others in Washington, Douglas was fooled by the soft answers with which Martin habitually turned aside hard congressional questions.</br></br>In his 18 years as the nationÛªs top money manager, Martin has proved himself to be a man of steel, albeit of a finely tempered kind. He has been tough enough to stand up to three Presidents but resilient enough to bend with strong political and economic forces.</br></br>In season and out, during boom and slump, he publicly identified himself as a hard-money man, a slayer of the inflation dragon, leaning against the political winds blowing for relief.</br></br>As early as 1956, he was quietly resisting pressures from President EisenhowerÛªs Cabinet for a relaxation. When John F. Kennedy was elected four years later, in part on a promise of more abundant credit, some in Washington thought MartinÛªs days were numbered. But like two Presidents before him, Mr. Kennedy kept Martin on as a symbol of his own devotion to sound money. The chairman indeed opened up the credit tap, although not nearly fast enough for the Kennedy advisers.