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Sears,Roebuck and CoExecutive Offices

November 23, 1957i

Hon. M* S. Eccles, Chairman,
Board of Governors of the
Federal Reserve System,
Washington, D. C*
Dear Gov. Eccles:
Since writing you Saturday, I have
been reading a speech delivered by S. Parker Gilbert
at the Academy of Political Science Annual Dinner on
November 10th. Probably you have seen it, but in
case you have not, I am quoting the following extract
from the speech:
"For the same reasons, and to avoid deflation, it
seems to me time that the Federal Reserve System,
and the Treasury itself, should take note of the
cessation of deficit financing and relax the series
of deliberately deflationary measures irhich were
put into effect in 1936 and early 1937, and which are
still operating (though the reason for them has ceased)
to deflate not merely the country1 s banks and business
activity but also agricultural prices and general employment* In other words, we want neither inflation
nor deflation, both of which are harmful to the welfare of the country and to be avoided•"

Sincerely yours,