The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
276 Old Array Road Scarsdale, N . Y . December 11th, 1947 Mr. Marriner S . Eccles, Chairman, Federal Reserve Board, Washington, D . C . Dear Mr. Eccles: It seems to me that we are overlooking one move than can be a major factor in relieving our inflationary pressure - and that is to make the interest on long term Government bonds tax free - in whole or in part - to all holders except commercial banks. Such action would, I believe, result in a broad acquisition by private investors and thereby remove the menace of further monep^^^rfrP*** tization and the consequent rise in our credit base. The annual cost to ^ the Government in lost taxes might be a billion dollars - which would be jLtfr* a cheap price to pay for the results obtained. We would save the cost of an expensive campaign, which is now planned, to promote investor buying in redeemable issues^- and the success of this plan is problematical without the patriotic urge. / / / I trust you will give this suggestion your earnest considy? Very truly yours, C . E . Fay CEF/ilLD C . C . Hon. Jesse P . Wolcott, Chairman, House Banking and Currency Commission, Washington, D . C . December 23, 19U7* Hr» C« E . Fay, 276 Old Axwy Head, Scarsdale, Hew York. Dear Kr* Pays On behalf of Chairman Eocles who Is spending the holidays in Utah, permit m e to acknowledge your letter of December 11 suggesting a return to making the interest on long-term Government bond tax free, in whole or in part, to all holders except commercial banks. Mr* Ecoles has passed your suggestion along to our Research Division and particularly those who specialise in fiscal matters for their information and asked me to thank you for writing him* Sincerely yours. Elliott Thurston, Assistant to the Chainnan* ET:b
@FedFRASER