Dillon Defends Fed, Declines Its Control
By Frank C. Porler much other business and said would require interest pay-staff Reporter	it would involve a conflict of menls on Federal funds de-</br></br>S Treasury Secretary C. Doug- interest. The Secretary s Joli posited in commercial banks i las Dillon in effect said ÛÏthanks å¡f borrowing money as cheap- ancj ..g^ a -j'rpasury study of but no thanks" yesterday to as possible to finance the js jssue will be completed the proposal of Rep. Wright Government might clash with jn ju|y</br></br>Patman (D-Tex.) that he be- *bå¡ primary FRB task of main- j-je 0pp0se[i measures which come boss of the Federal Re- taining a proper supply of wou[(} iet banks resume interserve Board.	money and credit, he said. csl payments on demand de-</br></br>Dillon testified before Pat- DillonÛªs testimony reflected posits and require the Fed to manÛªs Subcommittee on Do- a. cleavage in Administration mestic Finance, which has be- views toward the Fed. ^ estei - securities at levels under 4 Vi fore it a number of measures ^al*Ûª *lc praised the Board s per cent.</br></br>to revamp ihe 50-year-old mon- judgment and its "long tradi- He supported a plan to per-etary agency.	tion of regional participation ,nit the FRB to loan banks