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April 1, 1943

Dear Marriner:
I take pleasure in sending you, under separate cover, a
copy of the Report submitted to me by the Committee on Intergovernmental Fiscal Relations.
Some time ago the President suggested that this Department
investigate the problem of Federal-State-local fiscal relations
in the United States. The growing conflict and duplication in
our tax system called for a vigorous and comprehensive inquiry,
preferably by a staff freed from all other responsibilities
within the Department, Accordingly, I designated a committee;,
consisting of Dr. Lather U» Gulick, Director of the Institute
of Public Administration, Dr. Harold M. Groves, Professor of
Economics at the University of Wisconsin and a former member
of the Wisconsin Tax Commission, and Dr. Llabel Newcomer,
Professor of Economics at Vassar College, to examine and report
on this problem.


The study was made with the full cooperation of the
responsible officers of the Treasury Department, but the findings and recommendations of the Report are those of the Committee
and do not necessarily reflect the views of the Department.
The Report of the Committee makes an important contribution to the movement for the coordination of Federal-State-local
fiscal relations and brings together a body of current information which will be especially helpful to Federal, State, and
local officials concerned with this problem.

Sincerely yours,



Honorable Larriner S. Eccles
Chairman, Board of Governors of the
Federal Reserve System
V/ashington, D. C.


Dear Henrys
This i s t o thank you for sending mm the copy
of the volisaisous report aubiaitted lay the Coranitto© on
Intergovernmental Fiscal Halations.
I t i s a fornidable and inpreasive doomaent,
and; I have asked our economists to study aad digest I t
with the open-rainded ooneideration that th«se eaqpert&
and t h i s hard work so eminently deserro. I realise
that the views do not necessarily r e f l e c t tliose of the
Treasury* As you know, I a» deeply interested in t h i s
whole subject, «HioH i s of great ii^Kirtajtee for the
Siino«roly yours,

Honorable Henry Morgenthnu, J r . ,
Secretary of the Treasury,
Washington, 0. C.