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June 27,

Mr* Chester C. Davis, President,
Federal Reserve Bank of St. Louis,
St. Louis 2, Missouri.

Dear Chester:
Ralph Flanders is coining in to see me on Thursday, and while I don't know what he wishes to discuss, I
assume from your letter and from one I had from him enclosing a copy of his speech on postwar taxation that
this is the subject he would like to talk about. I have
been discussing it in a general way with our tax experts,
but my time has been pretty much taken up with preparations for this conference at Bretton Woods. Heedless to
say, I appreciate your kind personal references in your
note of June 20 to B&lph, a copy of which you enclosed.
I note that Bob faft is going to balance the
budget by reducing taxes, i y own conjuring with the
problem has not produced in s y mind as yet a solution as
easy as he makes that one sound. Doubtless it is good
politics, even if impossible economics.
m t h kind regards,
Sincerely yours,



June 20, 1944.

Honorable Marriner Eccles, Chairman,
Board of Governors of the
Federal Reserve System,
Was hington, D. C.
Dear Marriner:
I am enclosing copy of letter I have just
written Ralph Flanders. I wish I had sense and judgement enough to advise him. I really hope you and he can
get together•
It was another boy for the Edmistons; born
on the 15th. All doing well although with Henry off for
your International Monetary Conference today, he will have
to start exercising his authority by remote control.

With personal regards, I am
Sincerely yours,

Chester C. Davis,

June 20, 1944

Mr. Ralph Flanders,
Thirty Pearl Street,
Boston 6, Massachusetts.
Dear Ralphs
X am very grateful to you for sending m» a
copy of the talk you gave at the meeting of the Hew England Council on June 15. The question of balancing the
national budget at #120 billion versus $140 billion is
too difficult for me to attempt to pace judgment on,
particularly since I have been compelled to miss so muoh
of the discussion* I wish that you oould find time to
sit down and talk this over with Jfarriner Eooles. He is
back in Washington now but will probably go to Bretton
Woods before July 1. I have a lot of respect for his
judgment in this field. He is not the "wild eyed spender" many people think him, but he has thought a lot
about the budget in relation to a high natfonal income.
If, after reading your talk and some other
material I have gathered here, I reach any worthwhile
stage in thinking, I will write you my conclusion.

i f t many thanks and personal regards, X am
Sinoerely yours,

Chester C. Davis,