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June 15, 1956,
Mr. Herbert E. Gaston,
Treasury Department,
Washington, D. C.
Dear Herbert:
liay I suggest that instead of the last sentence on
page 5 of your memorandum the following be substituted*
m

A reversion to deflationary methods of
balancing the budget which were tried with disastrous
results by the last Republican Adaiinistration would
imperil the recovery now in progress throughout the
nation. By restoring the incomes of the people, th®
Democratic Administration has restored the only sound
means of balancing the budget and of reducing the
Federal debt as the incoia® of the nation continues to
increase.*1
I would also suggest that to page 8 be added th©
followijogs
"By the Banking Act of 1935 the Federal Heserve System was strengthened. Public instead of private control over the use of bank credit was definitely
established* Not only is management of credit policies
in the public interest thus assured, but an essential
step has been taken to promote the orderly economic de~
velopaient of the nation, free from the destructive excesses of deflation and inflation»•
I think this will round out your very excellent
draft*
Sincerely yours,

If* S, Eccles,
Chairman*

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