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W A L T E R K U T Z L E B NEW YORK, N. Y. 92, Liberty Street, Room 612, December 6, 1940. Hon. Marriner S. Eccles, Federal Reserve Board, Washington, D. C. My dear Mr. Eccles:Yesterday’s New York Times printed a despatch from Washington reporting an interview with you. I was mighty glad to read your 13 points for monetary poli cies. They are sound and practical, and should be given all possible prominence forthwith so as to provide for urgently needed improve ment in our economic set-up to carry through the Defense program. Loans or credits to Great Britain, I am sure, we shall have to grant. The matter of collateral ought to be a detail only; the main thing should be that advances in any form are on long term, and through private channels rather than through inter-governmental agencies. It has never worked out satisfactorily when inter-govern mental obligations had to be contended with. It also seems to me a great fallacy to permit the borrowing of money for a period of 10 years at 2%fo p.a. by a Finance Corpo ration which in turn loans it to the public at i¥° per month, or thereabouts. It is a frightful burden on our industry and economy in general. On that basis American industry has a great handicap to overcome in its endeavors for foreign markets as well as more steady employment when obliged to provide for competition with low living standard countries. It is bound to affect Labor as well as all social advantages for which the country has been fighting. Please accept my compliments on your far-sighted and con structive program, and be assured of my high esteem. Very^incerely you^p, This is an announcement and is not to b* construed at an offer to sett or as a solicitation of an offer to buy the securities herein mentioned. The offering is made only by the Prospectus, J $10,000,000 B e n e f ic ia l I n d u s t r ia l L oan C o r p o r a t io n Ten Year 2V4% Debentures Dated December 1,1940 Due December 1,1950 Interest payable June 1and December 1 Price 1 00% % and accrued interest Copies oj the Prospectus are obtainablejrom the undersigned. E astman , D illon & Co. S m it h , B arnet & Co. j E. H . R ollins & S ons Deo«m Her 5, 1940 Incorporated B lair & Co., I n c L adenburg , T h a l m a n n & Co. R iter & Co. WALTER KUTZLEB NEW YORK, N. Y. ft* Room 6 1 2 , 92, D ecem ber 3 1 , L ib e r ty S tre e t, 1940. H on , M a r r in e r S . E c c le s , F e d e r a l R e s e rv e B oard , W a s h in g t o n , D . C , My d e a r M r . E c c l e s : When I w a s I n W a s h in g t o n t h e o t h e r d a y , I s h o u ld h a v e l i k e d t o t h a n k y o u i n p e r s o n f o r y o u r l e t t e r o f D ecem ber 13, and f o r th e e n c lo s u r e s . ded c a le n d a r , and I Y o u r s e c r e t a r y i n f o r m e d me o f y o u r aban doned th e th o u g h t. cro w H o w e v e r , I s h o u ld l i k e t o r e n e w my a c q u a i h ~ ta n c e w it h yo u on e o f t h e s e d a y s i n th e n e a r f u t u r e , and p e rh a p s f i n d o c c a s i o n t o d i s c u s s som e o f t h e i t e m s o f y o u r r e c e n t a d d r e s s , e s p e c i a l l y th o s e o f p a r t i c u l a r im p o r t a n c e i n th e p re s e n t s itu a t io n . P o s s ib ly your I e x p e c t t o b e i n W a s h in g t o n n e x t w e e k . c a l e n d a r w i l l p e r m i t a f e w m in u t e s f o r m e» W it h c o m p lim e n t s V ery of th e s in c e r e ly Season, you rs^ December 13, 1940. Mr. » a l t e r K u tzleD , hoom 6l k , 9k. L ib e r t y b t r e e t , New York C it y . Dear U r. K u tzle b : T h is i s t o th«JiK you f o r your l e t t e r o f December 6 -w ith re g a rd t o my re c e n t t a lk b e fo r e th e N a tio n a l I n d u s t r ia l C onferen ce b oard . your v e ry Kind comments. 1 a p p re c ia te 1 «a s in t e r e s t e d in th e a d vertisem en t you e n closed and in your remarks w ith reg a rd t o th e low rat'd at which t h i s fin a n c e c o r p o r a tio n i s bor row in g in c o n tra s t w ith wnat i t p ro b ab ly g e t s on th e lo a n s i t makes. 1 do not tuiow & more e f f e c t i v e remedy f o r such a s it u a t io n than th e t a x mechanism w fiich, i f p r o p e r ly a p p lie d , would p re v e n t th e r e te n t io n o f excess p r o f i t s made by t h is g r e a t spread and m ight tend in th e d ir e c t io n o f n arrow in g i t . a s th e newspaper accounts o f my t a lk were n e c e s s a r ily v e r y b r i e f , I am e n c lo s in g a copy o f th e a c tu a l t e x t in case you m ight be in t e r e s t e d in h a vin g i t . S in c e r e ly y o u rs , M. b. Eceles. Chairman. enclosure ET:b
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