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E S T A B LIS H E D 1906 KEYSTONE HIDE COMPANY HIDES.SKINS,WOOL, FURS, TALLOW 804-816 So. P R I N C E ST. C o r . F U R N A C E ST. L a n c a s t e r ,P a . Hon* December 16,1937 Marriner Eccles Federal Reserve Board, Washington, D* C* Dear Sirj I have "been reading your speeches how it was necessary to stop the "boom. Mr* Roosevelt stopped it with the result that more millions are out of work,and as usual,the gamblers of the nation get rich on panio3,and strong organizations working with the public's money gather together physical goods that distressed owners have to sell* It would be well for the* President and his close associates to pt|t under his glass on his desk the prices that prevailed in 1908*12 where he could see wheat at #1*07,hides at 150 lb,,copper at 13£ plus,cotton 120teggs 240 etc. etc. Hides,5 0^ of the nation's product ion going begging at 5 to 80 lb*,in 1937**to-day* Of course,if he will look at the monopolies their prices on finished goods are 50$ higher as in the case of steel,but what they buy-scrap iron is around 4Cji under 1903-1*2 prices,and were it not for the Japanese buying the scrap iron dealers could have thrown their goods into the Atlantic Ocean even in 1937* , Mr* Roosevelt,it seems to please Mr. Green and Mr* Lewis,made a good talk out of monopoly,how he was going to slay these giants,etc*,but instead of hitting the giahts he hit men like me who cannot'pass any interests' and he hit the fellow who had a job who to-day is working 2 days a week or out of a job entirely* The Giants closed down and the men most of them will, maybe/be eating snowballs* The Giants' prices didn't change..gas is higher than in 1936,,steel is #5*00 a ton higher than in 1936 and $13*00 per ton more than in 1903-12* Some fellow over in Hew York University wrote to the Times the other day and said that the farmers should stop belly aching as the price of wheat went from 320 to $1*00,but he forgot that in 1908-12 when we had 25 millions less people wheat was $1*07* And so with the Administration,it points with pride how they raised bankruptcy prices in 1932 to 19 08-12 prices before the famous Presidential talk in the Spring—and now back to bankruptcy prices^ again* If Mr* Roosevelt's shooting is so bad, i* e* his aim he'd better stop slaying the Trusts,because when he aims he slays us,not the Trusts If the Administration does not subscribe to Babson'I suggest it get his 19 08-12 prices* Of course,agriculture's labor and taxes and mine didn't go up,so to-day we should be selling products under the 19 0812 prices to please Union Labor,less than 5 of the nation's population^ I supported Roosevelt thinking he knew where he was going***^ 1926 price level but he went to the 1932 level* Sincerely % December 18, 1937* Mr. S. H. Livingston, Keystone Hide Company, 80A South Prince Street, Lancaster, Pennsylvania. Dear Mr. Livingston: Your letter of December l6th makes some practical ob servations which particularly interest me with regard to the un balanced level of prices as between various agricultural products and the incomes of the great mass of consumers on the one hand, as contrasted with numerous material and labor costs on the industrial side. Accordingly, 1 am venturing to enclose a copy of a talk I gave last Tuesday before the American Farm Bureau Federation in Chicago, in which I tried to bring out that these factors of disequilibrium had to be corrected if we were going to have continued and reasonably stable economic progress in this country. I am also enclosing a copy of a statement I gave out last spring when the dangers of the unbalanced condition which subsequently developed were becoming apparent. I hope that if you find- time to glance through the ad dress delivered in whicago you may note that 1 do not wish to stop any healthy progress, but I do not want to<see unsound price inflation develop as it did last winter and spring because the inevitable con sequence is the very kind of reaction we are going through now. You might note also that I emphasized the necessity of readjusting downward prices which are out of line with general purchasing power and readjusting upward some of the other prices, particularly as regards agriculture, which are too low. Once this readjustment is carried to the point where buying- power will again be effective, I see no reason why we should notmove ahead to a satisfactory general price level, cut as you point out and I thoroughly agree, the important thing is the proper interrelation or balance between prices rather than the general price level itself. I appreciate your writing and I am glad to have your views because they- are realistic, particularly in regard to various rigid in dustrial prices, such as steel, as well as in regard -to a minority of organized workers. Sincerely yours, M. S. &ccles, Chairman. ET:b