The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
RECONSTRUCTION FINANCE CORPORATION WASHINGTON H E N R Y T. BODMAN MEMBER O F T H E BOARD October 19, 194S Dear M a r r i n e r : Apropos o f our conversation t h i s noon, the August issue o f The N a t i o n a l C i t y Bank L e t t e r i n discussing the P r e s i d e n t s a n t i i n f l a t i o n program, states as f o l l o w s : "Given these conditions of t i g h t n e s s i n the b u i l d i n g f i e l d , i t seems probable t h a t passage o f the Taft-Ellender-Wagner b i l l , o r s i m i l a r l e g i s l a t i o n , would r e s u l t , as suggested i n these columns a month ago, n o t i n more housing but only i n more e x pensive housing f o r most people, w i t h i n f l a t i o n a r y e f f e c t s spreading throughout the e n t i r e economy. On the l a t t e r p o i n t , no one has been more emphatic than Mr. Marriner Eccles, o f the Federal Reserve System and formerly i t s chairman. T e s t i f y i n g before Congress l a s t F a l l , M r . Eccles described the expansion i n 'excessively easy mortgage c r e d i t f o r housing 1 as * perhaps the most i n f l a t i o n a r y s i n g l e f a c t o r i n t h e present s i t u a t i o n . 1 "Again, t e s t i f y i n g before Congress l a s t month on t h e P r e s i d e n t s recent proposals, Mr. Eccles vigorously opposed as ' i n f l a t i o n a r y 1 t h e long-range housing program." This may n o t be q u i t e as much o f a plug as I had r e c o l l e c t e d b u t , considering t h e source, i t ' s q u i t e a concession. With k i n d e s t regards Sincerely yours, Honorable Marriner S. Eccles Board o f Governors Federal Reserve System Washington, D. C October 22, 1948* Dear Harry: Thanks f o r your l e t t e r of October 19 g i v i n g me t h e q u o t a t i o n , i n which reference i s made t o cie, from the August issue of t h e N a t i o n a l C i t y Bank L e t t e r d i s cussing the President*s a n t i - i n f l a t i o n program* I agree w i t h you t h a t t h e reference i s a favorable one, and cons i d e r i n g t h e source i t i s a l l , i f not more than, X could expect* I was g l a d you came over t o lunch the other day. We a l l en,joyed v i s i t i n g vdth you* Be sure t o do i t again* S i t h k i n d personal regards* Sincerely yours, Honorable Henry T , Bodman, Member of the Board, Reconstruction Finance Corporation, Washington, C. SLB:ra
@FedFRASER