Part 1 - The Institute Libraries - Institute for Advanced Study

ecause of his liberal policies, a d Mr. Dwight W. Morrow, Horgan partner
and influential trustee, tried to persuade Stewart to take the off ice,
wfth the concession that his friend Heikeljohn could remain as head of
the Department of Philosophy. Stewart declined, and resigned wfth sev-
eral of his collezgues in Heither episode seed to preju-
dice hirr, in subsequent relations with the Howe of &=an which appear
ta have been quite close over the next decade.
During his sabbatical leeve 11922-1923) tfie economist had re-
organized and directed the technical economic studies conducted by the
Federal Reserve Board's Division of Research and Statistics; he returned
to itasDirector until 1926, when he beceme chief economist of the Usll
Street investrent securities firm of Case, Poneray & Company, &awhile
he had become the chief economic advises to Gwernor Benjamin Strong 05
the h'ew York Federal Reserve Bank who, supported by the Cityas great
banking houses, had asserted and exercised control over the monetasp
policies of the nev central banking system of the United States from fta
18
incept ion.
The twenties vftnessed the partnership of Strong and Govetnor
Hontagu Romn of the Bank of England in efforts to stabilize the cur-
rencies of Europe and re-establish gold as their foundation. Walter
Stewart served constantly as Strong's advfsex during these Fkreulean
labors until he went to the Bank of England as its ffrst Economic"Adviser
at the end of 1927, There he imtalled a system of statistical and econ-
omic studies like those of the Federal Resenre Board, and also acted as
the liaison between the two central banks, rainfng until April, 1930,
though Strong died in October, 1928. The policies and practices of the