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Marshfield, Wisconsin.
March 4, 1939.

Mr. Marriaer S. Eccles, Chairman
Federal Reserve Board,
Washington, D.C.
Dear Sir:Recently in a speech before an audience
of Chicago business men, you said that the economic
affairs of the united States had become so confused
that you were not sure that they could be straightened
out under the traditional democratic system of govern­
ment. You said that our form of government was set up
on the basis of a differend world than that in which
we find ourselves to-day - that in those days it was
not a world of which a large proportion was ruled on
the principle of the totalitarian state.
You also
expressed your opinion that the United States could
not return to prosperity by saving, but could only
hope to return to prosperity by spending.
We come to the conclusion that you are
right; the economic ills of the united States cannot
be cured so long as the type ©f-democratic government
that he represents continues in power.
One of the
reasons that you and your kind will be unable to bring
about a return of prosperity in this country is that
you are either unable or unwilling to recognize facts
and either unable or unwilling to recognize the fund­
amental laws of economics.
You would consider brushing aside our whole
form of government for the reason that Europe had no
totalitarian states when our constitution was adopted,
perhaps there was no Fascist party and no Nazi party
at the time, but if we remember our history book
France was then under the last of the Bourbons, absolute
autocrats; Russia, Prussia and Austria were absolute
the rest of Germany was governed by a
disunited group of autocratic kings; practically all
of continental Europe was under the control of tyranni­
cal despotisms, very little different, so far as we
can discover, from the totalitrian and authoritarian
governments of the present time. If we assume that
conditions in Europe have any bearing upon the fitness
of our form of government, then, since those conditions
have today returned to tataere they were in Washington1s
time, our American form of government is just as
necessary for our protection as ever.


Your "spend yourself into prosperity" program,
likewise, is evidence of an absolute refusal to re­
cognize those old tried-and-tested economic laws,
which no form of government has yet been able to
repeal. No business and no government ever lasted
long on the theory of spending more then it made.
National prosperity can never return until
you and I .and all the other individuals, corporations,
municipalities and states in this country, as well
as the Federal government itself, each gets our house
set in order and lives within our income.
That is
the sound common sense economic theory that you
refuse to recognize.
Spending ourselves into pros­
perity is akin to lifting ourselves by our bootstraps,
and until we learn that nothing can be accomplished
in that manner, we cannot progress ou"t of our
We are afraid that both in his history and
in his economics Mr. Eccles fails to recognize the
facts as they are.
Our need Is not for new govern­
mental machinery, but public officers with souAd
eeomonic viewpoints who are determined to make the
American form of government successful.
The writer recently aaw a check (vote buying
money) of $235.00 to a well-to-do farmer, and before
long this money was converted into Travelers Checks,
and his family is now in Florida, at our expense.
However, the country will probably stand it
till the 1940 election, when we will make a start at
replacing incompetent managers in our government.
Two copies of this letter are sent along#
please distribute a copy to the president, and another
to Mr. Morganthau.