An influential group of 10 senators, including four committee chairmen and Republican Leader Howard H. to reappoint Federal Reserve Board Chairman Arthur F. Burns, it was learned yesterday.
In a letter to Carter, the senators said that "cosidering the present state of the national and world economy it would be the highest national interest" to reappoint Burns to a third term as chairman of the nation's central bank.
The senators said they believed it would be "most reassuring" to central bank officials throughout the world and the American business community if Burns was to be reappointed.
The 10 senators who signed the letter to Carter supporting Burns were Democrats John J. Sparkman of Alabama, Jennings Randolph of West Vitginia, Russell B. Long of Louisana and Abraham A. Ribicoff of Connecticut - all committee chairmen.
Baker and five other Republicans signed the letter. They were Clifford P. Case of New Jersey, John G. Tower of Texas, Edward W. Brooke of Massachusetts, Jacob K. Javits of New York and Charles McC. Mathias Jr. of Maryland.
The letter was made public after two Democrats suggested that Burns not be reappointed because of his insistence on keeping interest rates high.
William Proxmire (D Wis), chairman of the Senate Banking Committee, called on Carter yesterday not to reappoint Burns when his term as chairman expires early next year.
And Hubert H. Humphrey (D-Minn.) said in a Senate speech Thursday Burns' policies are "seriously defective."
Proximate compared Burns' stewardship of the Federal Reserve to Coach John McKay's record as head of the Tampa Bay professional football team, which has a 0.21 record since entering the National Football League last yvable gentleman," Proxmire said, "if the owner should replace McKay, I doubt if there would be any question as to why it was done."
"Well, the Fed under Arthur Burns has been the Tampa Bay of the federal government. If President Carter decides to replace this lovable gentleman all he has to do is refer to the record. I think the country will understand."
Proxmire said Burns' seven-year performance as chairman of the Federal Reserve "has been the most inflationary of any Fed chairman in our history."
Burns, 73, may continued on the board until he is 75, but hie end of January. He has been under attack from those who favor lower interest rates and a larger money supply as a means of expanding the economy.
In a speech last week, Burns said the business community is uncertain of Carter administration policies.