Arthur F. Burns

Burns was an economist, Economic adviser and regulatr, US ambassador and propagandist.

Early life

Arthur Frank Burns was born in Stanislau, Austria, on April 27, 1904, the son of Nathan and Sarah Juran Burns. His parents brought him to this country when he was 10 and settled in Bayonne, N.J., where his father operated a small paint-contracting business.

Young Arthur worked his way through school as a postal clerk, waiter, theater usher, dishwasher, oil tanker mess boy and salesman. He graduated with Phi Beta Kappa honors from Columbia University in 1925 and received a master's degree the same year.

In 1930, while working for his Ph.D. at Columbia and teaching economics at Rutgers, Mr. Burns came to the attention of Wesley Clair Mitchell, perhaps the most eminent American economist of his day and the founder and principal luminary of the National Bureau of Economic Research.

While still pursuing his career in teaching, Mr. Burns began his lifelong study of business cycles at the bureau and became Mr. Mitchell's protege.

Mr. Burns, who remained a professor at Rutgers until 1944, succeeded Mr. Mitchell as director of research of the National Bureau and served from 1945 to 1953. In 1945, he also became a professor at Columbia University.

In Washington

Then, President Eisenhower, who while president of Columbia had met Mr. Burns, brought him to Washington. The political activity of members of the President's Council of Economic Advisers during the Administration of Harry S. Truman had turned Congress against the agency.

As chairman, Mr. Burns took the council out of politics and reconverted it into a general economics staff. It concentrated on giving technical advice and information to the President and on planning.

At the outset of his tenure he was faced with the minor economic contraction of 1953-54. In mid-1953, Mr. Burns urged President Eisenhower to spend more and tax less, with the result that the recession was relatively brief and mild. Restored Council's Prestige

After four years, Mr. Burns had restored the prestige of the council and won an established place for it in the Government. A nominal Democrat who had voted for Mr. Eisenhower, he achieved high respect from both parties in Congress.

By the end of 1956, Mr. Burns wanted to go back to research and teaching, and he returned to his professorship at Columbia. The National Bureau of Economic Research elected him its president.

When Mr. Nixon was elected President in 1968, he persuaded Mr. Burns to become his White House counselor as part of an understanding that Mr. Burns would be appointed chairman of the Federal Reserve when William McChesney Martin's term ended in early 1970.

At The Fed

During his brief tenure in the White House, Mr. Burns worked on a variety of projects, some unrelated to his economics background. He became Fed chairman on Feb. 1, 1970. In 1971, President Nixon, confronted by a mounting economic crisis, chose to impose full-scale wage and price controls while abandoning fixed exchange-rate values and ending the convertibility of dollars to gold. Mr. Burns, who had previously spoken out on the need to restrain wages, supported the wage and price controls but expressed doubt about ending the dollar-gold link.

Mr. Burns's most difficult time at the Federal Reserve came in 1974 and 1975. For the first time, his integrity was subjected to scrutiny, following a charge that he had made the money supply grow faster than was prudent, particularly in 1972, to aid President Nixon's re-election effort. In the elecpercent, compared with 6 percent durcreases were widely considered excessive.

Think tanks land

After his departure from the Federal Reserve in 1978, when President Carter declined to reappoint him as chairman, Mr. Burns established a base in the American Enterprise Institute from which he continued to influence public policy, particularly as an adviser to Ronald Reagan.

In 1980, he served as founding chairman of the Committee to Fight Inflation, a gathering of a dozen prominent former economic policy makers united in their conviction that restrained policies were central to reducing inflation.

He was 'the Ambassador to West Germany from 1981 to 1985... Since returning from Bonn, he had resumed his place as distinguished scholar in residence at the American Enterprise Institute.