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F O U N D E D The 1812 Pennsylvania Company FOR BANKING AND TRUSTS MEMBER FEDERAL RESERVE SYSTEM PHILADELPHIA WM. FULTON KURTZ PRESIDENT 1 August 19, 1948 Dear M a r r i n e r , Speaking * o f f t h e c u f f , " t h a t was a darned good s t a t e m e n t y o u made b e f o r e t h e Houss Banking and Currency Committee and an e x c e l l e n t , t e r s e e x p l a n a t i o n o f t h e f o r c e s t h a t have l a r g e l y caused o u r p r e s e n t u n c o m f o r t a b l e p r i c e l e v e l • W h i l e y o u may n o t a g r e e , I a n i n c l i n e d t o t h i n k we a r e bumping a l o n g t h e c e i l i n g a t t h e moment, and t h a t t h e r e i s some s i g n i f i c a n c e t o t h e many s o f t s p o t s t h a t a r e b e g i n n i n g t o a p p e a r , I hope we can hava o u r c o r r e c t i v e r e c e s s i o n soon and w i t h o u t t o o much diatresa. A g a i n I want t o say I v e r y much miss our o l d Washington m e e t i n g s and my chance t o argue w i t h y o u . W i t h a l l good w i s h e s , I am Sine yours, Hon* M a r r i n e r S. E c c l e s c / o Board o f Governors o f t h e F e d e r a l Reserve System Washington, D« C. August 2 3 , 1948. Dear B i l l : Our e r s t w h i l e Chairman meant t o w r i t e t o you p e r s o n a l l y i n response t o y o u r l e t t e r o f August 1 9 , but i n s t e a d he r e q u e s t e d me t o send you t h i s n o t e o f acknowledgment and a p p r e c i a t i o n . you know, t h e s e have been crowded h o u r s , w i t h R e g u l a t i o n to and o t h e r u r g e n t m a t t e r s , so t h a t i t was l a t e F r i d a y e v e n i n g b e f o r e he had an o p p o r t u n i t y t o d i c t a t e a r e p l y and as nobody around h e r e can f o r g e h i s s i g n a t u r e i t seemed most a p p r o p r i a t e t o have me t e l l y o u t h a t he t h i n k s you may be r i g h t about bumping a l o n g t h e c e i l i n g , p r o v i d e d we do n o t get a f u r t h e r b u l g e i n bank c r e d i t and a b u d g e t a r y d e f i c i t , n o t t o m e n t i o n i n s u r a n c e company dumping o f s e c u r i t i e s i n t o t h e l a p o f t h e Open Market Committee. H i s b e s t guess i s t h a t we w i l l c o n t i n u e t o bump a l o n g t h e c e i l i n g u n t i l a f t e r t h e t u r n o f t h e y e a r . He i s i n complete a c c o r d w i t h you t h a t t h e sooner we have t h e " c o r r e c t i v e r e c e s s i o n " t h e l e s s p a i n f u l i t w i l l be. meetings. L e t me add t h a t you a r e g e n u i n e l y missed a t t h e A d v i s o r y C o u n c i l Sincerely yours, (Signed) E l i o t t Mr. im. Fulton K u r t z , President, The P e n n s y l v a n i a Cosap&ny, Philadelphia 1 , Pennsylvania. ET:b Thurston
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