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This article is protected by copyright and has been removed. The citation for the original is: Giordano, Mary S. “Eccles Arguments Disputed: Proposals, It Is Held, Would Discourage Flow of Venture Capital.” New York Times, March 27, 1945, p. 18. H April 7th,1945 Bear Sirs Is there inflation in today's stock prices ? The "Financial World" writes as follows? "The average investor fails to realize how very little inflation there has been in the stock market so far - until he recalls that, generally speaking, stock prices are not much higher than they were when the war broke out in the Pall of 1939, though since that time wholesale commodity prices have risen over 4-0 per cent and hourly wage rates 50 per cent. It would seem, therefore, that since the Pall of 1939 inflation has taken place everywhere else more than it has in the stock market. Nor should it be overlooked that the greatest cause of inflation - the increase in our Government debt - has been accentuated by a 400 per cent enlargement since 1939» with a much further increase ahead." * If industry is to function it must be able to get new capital when it needs i t . Shareholders should be convinced that they own very desirable properties and that they are playing an important part in advancing our economy in making their savings available to industry. The United States never could have grown as it has in . the past if a very large part of our people had not been willing to take chances. If it does not continue to grow it may not be able to provide jobs for a growing population. Peace should bring productive enterprise to sustain the real values of wealth reflected in the market place. There is practically no war boom to liquidate in the stock market. 1 I have confidence in A m e r i c a s future. The future is in u s . In God I trust. "Very truly yours, A.patriotic Investor. II April 7th,1945 Y©u diould not ©verl©©k the facts I,)that from average level of 5 pre-war years, 1935-1939»industrial stocks have risen only lift II.)that in 1937 United States Steel were, highest « « Standard Oil of New Jersey w it H H American Can Company t» It H American Tobacco Company » M II Consolidated Edison tt tt 11 General Motors H tt tt Johns Manville tt It tt General Electric 126 today 76 » tt 121 « tt 139 49 122 155 64 tt tl « tt M tt M II It tt 64 59 93 72 27 65 110 42 and that in the meantime the purchasing pewer declined 40ft . After 3 years #f w a r , when the war is in its last stage and victory is in sight y®u prop®se excess pr®fit-taxes (90$) #n stocks which were "bought after January 1st 1945. What about l©sses ? Please keep in mind that uncertainties and sudden changes are creating widespread confusion. Very truly yours, A patriotic Investor.
@FedFRASER