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March 10, 1943 Mr. John R. Fleming, Office of War Information, 3-452 Social Security Building, Washington, D. C. Dear John: Attached is the text of the speech 7.?r. Eccles is going to make tomorrow night in Chicago. Its primary purpose is to rally the hankers to an all-out bond selling campaign and to state the picture which will make them realize how urgent it is to do a good job. I would appreciate me know if you see anything in it that as in any way contrary to sound public do not see anything in it of that sort it if you would let strikes you policy. I myself. Sincerely yours, Elliott Thurston, Special Assistant to the Chairmen. Attachment ET:b F o r m F . R . .148 t> TELEGRAM BOARD OF GOVERNORS O F TH E FEDERAL RESERVE SYSTEM le ase d w ir e s e r v ic e WASHINGTON March 11, 19U3 M. S. EocI qs Federal Reserve Bank of Chicago OWI want to omit in mimeographed copy, page 3» second paragraph, the sentence beginning quote the question of determining the sise of the armed foroes unquote down to the end of that paragraph ending quote destroy effectiveness on the fighting front unquote* They report that the Manpower Commission and Office of Economic Stabilisation take exception to these two sentences* On page 5 the same two agencies object to the entire last paragraph beginning quote the problem is one unquote and ending quote difficult issue of the hour unquote* On page 10 they take exception to what we put into Harry Hopkins* mouth, namely, the one sentence reading quote he is for drafting all of us into the best war service we can perform whether on the fighting or the home front unquote* The Budget Bureau, after first clearing, wanted to insert on page 8 a sentence to make clear that funds raised in a given period may carry over into the next period* Hhile I think this is. a trifling refinement possibly some such extraneous observation can be made if they wish* Will you phone me at your earliest convenience* Thurston. ET:b 16— 4J573 « r O TELEGRAM B o a r d of Governors of the Federal Reserve System Leased W ire Service Received at Washington, D. C. ¡943 Um 11 PM 3 WB06G17WASH GX158 CGO 11-215 ELLIOTT THURSTON SPECIAL ASSISTANT TO CHAIRMAN ECCLES BOARD I WILL BE AT FEDERAL RESERVE BANK ALL AFTERNOON AFTER 2:30 CHICAGO TIME PLEASE SEND ALL WIRES IN CARE OF BANK AND GET IN TOUCH WITH ME AS SOON AS POSSIBLE MARRINER S. ECCLES. 25 F o rm F . R . 148 b TELEGRAM BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM U E A S E D W I R E S E R V IC E WASHINGTON March 11, 19ltf* X. S. Eooles Blackstone Hotel Chicago On mimeographed copies, page 8 , suggest striking out all figures on that page and overlapping on to page 9 « that is, strike out all beginning with the paragraph whioh reads quote from July 1 to the end of December, eto*, unquote down to the bottom of the page and to the end of the overlapping paragraph on page 9 # the last few words of whioh are quote must not be continued unquote In place of these paragraphs suggest inserting following whioh Xrost has checked quote Let me outline the 194*2 and 19U3 picture in round numbers t For the calendar year of 19U2, the Government spent about 56 billions* Of this 19 billions, or only about one-third, came from taxes and 57 billions was borrowed, exclusive of an additional 6 billions whioh was borrowed to build up Treasury cash balances« Of the total borrowings of 1*5 billions, about 22 billions, or less than one-half, came from nonbank investors, while 2$ billions, or more than half, came from the sale of Government securities to the banks« As a result, during the year 19U2 demand deposits and currency increased by more than 20 billions. According to estimates for the current calendar year of 19U5# the Government will spend about 100 billions* On the basis of our present tax laws some 33 billions, or only about a third will be raised in taxes, and the rest, 67 billions, will have to come from borrowing« If we do not F o rm F . It. 148 1) TELEGRAM BOARD OF GOVERNORS O F THE FEDERAL RESERVE SYSTEM L E A S E D W I R E S E R V IC E WASHINGTON - 2 - Ecclea - Chicago do a better job in selling more to the public and leas to the banks, that is, if the same trend continues in 19U3 that we followed in 19U2 , we would borrow approximately 33 billions from the publio and 3U billions from the banka* This in turn would result in another largo increase in demand deposits and currency, amounting to more than 30 billions* In other word8, it would mean that our money supply would have increased by more than 50 billions, that it would have doubled, since the war began* This trend must not be peraitted to continue indefinitely* unquote Thurston ET:b
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