View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.






B- A . T O M P K I N S

January IS, 1946

Mr. Marriner S. Eccles,
Federal Reserve System,
Washington, D. C.
My dear Marriner:
Just a note to congratulate you on your statement
issued in connection with the new 100$ margin requirement.
As you point out, the real trouble is, of course, the
amount of the deficit and the large extent of its financing
through the creation of commercial bank credit.
I am still of the opinion that the debt could be
shifted in large measure from the commercial banks to
the bona fide long tern investor if the Treasury would
make a tap issue available to the latter group. In ray
opinion the advantages of low service costs on the public
debt are mote than offset by the disadvantages to the entire
economy, resulting from constant declines in the interest rate.
Take care of yourself and believe me



January ¿8, 1946.

Mr. B. A. Tompkins,
16 Viall Street,
New York City,
Dear Tommyi
Your note of January 18 commenting favorably
on the statement I gave out when we raised margin requirements to 100 per cent is particularly appreciated,
the more so because most of the mail originating from
your neighborhood lacks your statesmanlike vision, so
to speaK.
Of course the E, F. and u Bonds are on tap,
but this is a large and complicated subject which 1
won't attempt to go into in a letter*
With best regards,
Sincerely yours,