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October 29, 1940. Dear Lauch; At the Chairsan's suggestion, I am sending along a couple of p&jes with ideas that he thinks should be worked I l somewhere: f 1. To make a better case on employment. I do not have the exact figures and they would have to be checked, but I am using the approximate ones to convey the idea. Zm On this particularly vicious propaganda about inflation, predicting that owners of savings deposits and insurance policies will be paid only fifty cents on the dollar. sincerely yours, Dr. L. B. Currie, The White House. enclosures ET:b Employment According to estimates of the Industrial Conference Jioard, there were 15,000,000 unemployed at the bottom of the depression. This does not take account millions who war* working only part tiiae, a few hours, or a day or two a week. Before the defense program got underway, it was estimated that about 9,000,000 were unemployed--or sone 6 millions fawer than in 1933* Since that tine, i M W W I , owing to the increase in population, about 5,000,000 new porkers have come on, the labor market. This is a net figure. In other words, jobs in private industry have been provided for about 11,000,000 workers—and this does not take account of those who were working part time in 19?2f but are now working full time or overtime. Nor does it take account of the million and a half who are employed on WPA. If they were to be counted, 12-1/2 millions more are at work today than in 19:2, This is a tremendous gain—though it still falls short of the goal—and it is fer removed from the picture drawn by Republican orators. fOW years the spectre of inflation is resurrected in an effort to frighten those of YOU. -ho have put money into a savings bank or into an insurance policy. One group, composed chiefly of insurance and banking executives who bftVt money to lead and who call themselves the t?Peppla8 Committee to Defend Life Insurance and Savings", are flooding the mails with pamphlets headed by the scare question, "Will you take 50 cents for your dollar?". Those who rig up this spectre and drag it out at the appropriate season &onft believe in it themselves* If they did believe in it, they would not be buying United States Government bonds. If there were a vestige of truth in their predictions. Government bonds would be declining in price. Yet, throughout the history of this Administration-" notwithstanding these recurrent attempts to undermine public confidence in the Government*© credit—market prices of Government securities have steadily advanced—exactly the opposite of what would be the case if we • r r on the road to inflation. For exaraple, one issue of Governsee ment securities which M M selling do^yn as lor as 82^ in 1932, is selling today for over 111-l/S. Recently an ietjue of #700,000,000 of 15-year bonds was sold at an interest rate of Z per cent—the lojest rate for an issue of comparable maturity in history. Among the purchasers of Government securities are some of the lenders of money who are trying to make you believe that your savings and your insurance policies are in danger. Don't you believe it! They donft believe it themselves, or their actions WfO&d not belie their words. The fact is that insurance companies and savings banks have bought securities during the past o years. Why? ^ of Government Because they have con- fidenee in them, because there is no safer place to invest savings. We can understand the natural desire to have our savings earn as Boofc as the economy will justify. The all important thing is to protect both the borrower and the lender. For unless the borrower can pay, the lender cannot collect. That M M the condition existing in 193£« That is what jeopardizes your savings and insurance policies. Countless faraers and home owners could not meet the excessively iiigh interest charges* The foreclosures and evictions that resulted have not so soon been forgotten. The investors, the owners of savings, did not profit by tfct disaster, A H Of us went clown together, borrower and lender alike. Not only were homer, and farms lost in the wreckage, but the interest and in M S ? cases the principal were lost on our saYings* What the perennial prophets of inflation mean, is that the purchasing power of the dollar woold be so reduced th&t it would buy only fifty cents worth of goods. But the truth of the matter is that the purchasing power of the dollar today is greater than it was in th© £0fs. That is in the opposite direction from inflation. We have achieved today, in greater measure than ever before, the objective which I hare repeatedly stated—a dollar of reasonably stable purchasing power, which is fair alike to lender and to borrower. The restoration of values—a restoration that has been brought about without the inflation that has been so often and so falsely predicted—has assured us today that interest will be paid on our savings and that both our savings and our insurance policies w U I be paid one hundred cents on the dollar—in dollars that represent neither a deflated nor an Inflated value. The record, year after year, has proved the falsity of these inflation alarms. Our currency, the Government's credit, our savings and insurance policies, are safer and sounder than ever before* We T S I H keep them ao. October 30, 19U0 Mr. Thuraton C M * Counts Following is a table which shows the amount held and ohanf.es each year since 193& i» holdings of United States Ocyvermsent rities by life insurance companies aad mutual savings banks* r« 6* Qommmm SECUBXTIBS mu> at LIFE IRSURAKCE AHD MmOAL SAVINS BAHQI (In ailliona of dollars) EDI E&paaurtm* banks 37 i e s panics D - . 3 1 . 1936 3, 321 3. 691 Dee* 31* 1937 3, 9W 4. 363 +672 2,482 •125 Bee. 3 1 , 1938 4. 195 ki <^6 •263 2,909 +427 Dee* 3 1 , 1939 4#611 *5. 100 •454 3,130 •221 Awg. 3 1 , 1*0 4, 929 • 5 , 500 4iOO *3.250 •120 pan Change • CMC/fso • • • • Chaise held Change 2.357 •1,809 •693
