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BOARD DF GOVERNORS
DFTHE

FEDERAL RESERVE SYSTEM
WASHINGTON
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD

March 23, 1937.

Honorable Marriner S. Eccles,
266 West 35th Street,
Miami Beach, Florida.
Dear Governor:
I am writing to report on progress and to make a suggestion
in connection with the development of non-monetary controls* I
would not bother you at this time except that I know you are
anxious to get speedy action*
Professor Burns came down last Tuesday and we spent the entire
day and night in conferences with staff members and with interested
people outside the Division. I cannot speak for the others but,
from my point of view, his visit was extremely worthwhile and I
hope that it will be possible to bring him to Washington from time
to time for consultation. There was general agreement that business
cycle theory had paid insufficient attention to the effect of monopolies and trade unions, and that their influence through price
and wage policy on the shape of the cycle needed much more study.
That night I attended a meeting with Cohen, Corcoran, Gourrich,
Henderson, White, Means and Burns, and we went over the same ground
but nothing of a very specific nature emerged.




Friday I attended a meeting of the Industrial Cornoittee of
the National Resources Committee, composed mainly of representatives
of the Agriculture, Commerce, and Labor Departments. They are
planning to recommend to the President that a national conference
on productivity be called. This, by the way, is confidential. Most
of the emphasis was placed on the removal of restrictions on output
of various kinds and I suggested that some emphasis be placed on




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the problem of securing full and continuous employment, since
our greatest waste of resources in the past has been attributable
to depressions. This suggestion was accepted.
Afterwards I had a long talk with Gardner Means, and he
stated that he thought the National Resources Committee would give
favorable consideration to a proposal to set up an Economic Balance
Committee, which would study the problem of coordinating the
activities of the Government affecting the course of business
and would make recommendations to the President, through the
National Resources Conmittee, to that end. In view of the fact
that the National Resources Connittee has shown so mach initiative
in the past and is destined, if the reorganization plan goes through,
to be directly under the President, I feel that this may be our best
avenue of approach.
If you agree I should like to have your permission to send an
informal letter to Means making the proposal, and he would then take
it up with his Committee.
I am collaborating with the Tariff Commission in getting
together some information on the copper situation* We decided to
hold our steel study in abeyance when we found that a first-class
row was developing between Commerce and Labor on the subject. It
seemed better to wait until we got their final estimates and then
check carefully their different methods and assumptions.
You have doubtless been told that the Treasury badly overestimated
tax yields for this year. Bob LaFollettefs secretary tells me that
LaFollette is preparing to renew his demand for higher income taxes,
which is all to the good.
I trust that you are enjoying your vacation. I notice that
it is hot in Miami — but it is hotter in New York.
Sincerely,