George A. Eddy (June 15, 1907 – April 13, 1998) was an American economist who served in the

Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...

and

U.S. Treasury Department The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and ...

between 1934 and 1954. He was in

Harry Dexter White Harry Dexter White (October 29, 1892 – August 16, 1948) was a senior U.S. Treasury department official. Working closely with the Secretary of the Treasury Henry Morgenthau Jr., he helped set American financial policy toward the Allies of World ...

's Division of Monetary Research. Between 1948 and 1954 he was Chief of Division for the Treasury's Gold and Silver Exchange Stabilization Fund.

Background

George A. Eddy was born in New Jersey on June 15, 1907. From 1921 to 1924 he attended Phillips Academy in

Andover, MA Andover is a town in Essex County, Massachusetts, United States. It was settled in 1642 and incorporated in 1646."Andover" in ''The New Encyclopædia Britannica''. Chicago: Encyclopædia Britannica Inc., 15th ed., 1992, Vol. 1, p. 387. As of the ...

, and he received his BA from

Yale University Yale University is a Private university, private research university in New Haven, Connecticut. Established in 1701 as the Collegiate School, it is the List of Colonial Colleges, third-oldest institution of higher education in the United Sta ...

in 1928. (He was elected to

Phi Beta Kappa The Phi Beta Kappa Society () is the oldest academic honor society in the United States, and the most prestigious, due in part to its long history and academic selectivity. Phi Beta Kappa aims to promote and advocate excellence in the liberal ...

there). He studied at

Harvard University Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of high ...

from 1930 to 1933, when he received an MBA. At Harvard, his interest lay

macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, and ...

policies, specifically U.S. deficit and prosperity via stable prices.

Career

Government service

In December 1933, Eddy became assistant to the Economist and Vice President at the Federal Reserve Bank of New York. He worked as a research analyst for the Division of Research and Statistics at the

U.S. Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...

(1934–1936). He returned to the Federal Reserve Bank of New York in 1936, where he worked in its Research Department until 1939, first Far Eastern affairs, later on domestic finance and business issues. After a brief time as a columnist and reporter for the

Journal of Commerce ''The Journal of Commerce'' is a biweekly magazine published in the United States that focuses on global trade topics. First published in 1827 in New York, it has a circulation of approximately 15,000. It provides editorial content to manage da ...

in New York City, he returned to the Treasury (still in 1939) as a senior economic analyst in the Division of Monetary Research. During

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...

, Eddy served as a lieutenant in the

U.S. Navy The United States Navy (USN) is the maritime service branch of the United States Armed Forces and one of the eight uniformed services of the United States. It is the largest and most powerful navy in the world, with the estimated tonnage o ...

. He remained in the Navy as a reservist. Upon his return from the war, Eddy resumed work for the U.S. Treasury under (to be) accused communist

, who was then director of the Division of Monetary Research. From 1948 to 1954 Eddy was Chief of Division for the Treasury's Gold and Silver Exchange Stabilization Fund. In 1948, Eddy traveled to

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...

, possibly to help establish the

Saudi Arabian Monetary Agency The Saudi Central Bank ( ar, البنك المركزي السعودي), previously known as the Saudi Arabian Monetary Authority (SAMA; ar, link=no, مؤسسة النقد العربي السعودي), established in 1952, is the central bank of ...

Accusation and clearance

In 1954, Eddy was suspended from the U.S. Treasury as a security risk. At the time, many Treasury employees came under suspicion of communist sympathies. The suspension arose from his associations with and open support of alleged communists, including Lauchlin Currie,

, V. Frank Coe, Robert C. Barnard, Emile Despres, William Ludwig Ullman,

Harold Glasser Harold Glasser (November 24, 1905 – November 16, 1992) was an economist in the United States Department of the Treasury and spokesman on the affairs of the United Nations Relief and Rehabilitation Administration (UNRRA) 'throughout its whole ...

, Solomon Adler, and William Henry Taylor. Elizabeth Bentley, a former communist who became a government informer, was a main source of information on the communist activities of Treasury employees. During Eddy's hearing, his lawyer ( Byron N. Scott) attacked Bentley's credibility and evidence against many of those he defended. Eddy mentioned to the Security Board that he also doubted the guilt of Alger Hiss (convicted in 1950 of perjury).

Retirement

In late 1955, following his hearing, Eddy received full clearance and back pay. Soon after receiving full clearance, Eddy resigned from the U.S. Treasury. He began a book about the accusations of Bentley and

Whittaker Chambers Whittaker Chambers (born Jay Vivian Chambers; April 1, 1901 – July 9, 1961) was an American writer-editor, who, after early years as a Communist Party member (1925) and Soviet spy (1932–1938), defected from the Soviet underground (1938) ...

against Hiss and White.

Personal life

In 1941, Eddy married wife Eileen. George A. Eddy died on April 13, 1998.

Legacy

In September 1998, Bruce Craig gave the Harvard University Law School materials accumulated by Eddy: research papers of Elinor Ferry (from Ferry's son James), files related to the William Henry Taylor case (from Bryan Scott), and Eddy's own papers (each processed and inventoried separately by Harvard). Eddy's papers formed a major source for ''Treasonable Doubt'' by R. Bruce Craig.

Writings

Articles; * "Security Issues and Real Investment in 1929," '' The Review of Economic Statistics'' (1937) * "The Present Status of New Security Issues," '' The Review of Economic Statistics'' (1939) * "A Modest Inquiry into the Nature and Necessity of Deficits," '' The Review of Economic Statistics'' (1939) * "A Program to Improve the Monetary System of Saudi Arabia" with Raymond F. Mikesell (1948)

References

External sources

Harvard Law School Library
Eddy, George A. Papers, 1925-1997 {{DEFAULTSORT:Eddy, George A. 1907 births 1998 deaths Harvard Business School alumni Yale University alumni 20th-century American economists Economists from New Jersey