Annals of a Crusade: Wright Patman and the Federal Reserve System

A bstract . As a Congressman from Texas from 1929 to 1976, Wright Patman supported Populist-type legislation which aided farmers, small businessmen and consumers. His perennial target in the postwar era was the Federal Reserve System. He resented the central bank's political independence and believed that "high" interest rates brought about by monetary policy actions benefited banks and harmed ordinary citizens. Rather than attacking the Fed's control of monetary policy directly, Patman tried to improve Fed accountability to Congress by subjecting the Fed's budgetary process and expenditures to government audit and/or the Congressional appropriations process. Despite numerous investigations, reports, and pieces of legislation, Patman's crusade failed to achieve its objectives. Nevertheless, his persistent criticism over 25 years undoubtedly created an atmosphere for change. Eschewing the indirect approach, Patman's political heirs in Congress demanded and received more accountability (and less secrecy) from the Fed regarding monetary policy objectives. Ironically Patman's abortive crusade may have paved the way for their later success.