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October 2&, 1954.

Mr. D« J*
The Bank of California,
Tacossa, Washington*
Dear Sin
Your l e t t e r addressed to Ur* Karl/ has been referred
to M | smd I #ish to herewith acknowledge it*
I have turned aver your pl«D for ;KOtiet&ry control to
of the treasury staff who are f—111 af viib tia^
involved snd they haTt given i t careful consideration.
If you ftrt goi*5g to be in iaahington in the near tutor*
I » i l l i m f i | i for you to B*«t iOlM ccmyetoat ssember of the
Treasury itaff who will be glad to discuss with ft/a
details of your projKiMilt




Very trulv ]TOBri|

to

October 80, 1954
Mr* Gaston
Mr* Eccles

I have not had tine to mad Ur* Young's plan, but I have referred
it to my assistant, Mr» Edmiston, who h t ^one over it carefully*
fi
Mr* ioungfs plan contains some pertinent observations about the
difficulties which result from the poor functioning of the money system
and he has nade sop;e accurate observations about the volu&e of isoney
and its velocity of circulation*

However, his suggestions for im-

provement are not as carefully worked out as they right be, and there
is considerable doubt that they could be effectively inaugurated into
our banking system.

Considering the low order of the average plan

which is presented to the President, Kr« Koung'l is far above normal
snd therefore I think It wuld be well for somebody in the Treasury to
aee M m when he e i . s to $ashington«
ore
Either myself or iikk.iston »-ili be glad to talk to him about his
proposals*
Attached is a suggested reply to his letter for your signature*