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E S T A B LIS H E D 1906



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 .


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,