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&USINESS LAFAYETTE RESIDENCE 1358 LAFAYETTE W I L L I A M J. C A R I G N A N PUBLIC INCOME ACCOUNTANT TAX COUNSELLOR 9212 CALIFORNIA SOUTH GATE, AVENUE CALIFORNIA December 15, 1947 Mr. M a r r i n e r S; Eccles Chaiiman, Federal Reserve Board Washington, D. C. Dear Mr# Eccles Your e x p l a n a t i o n t o the s p e c i a l committee, headed bySenator T a r t , about t h e Cause and Cure of I n f l a t i o n was i l l u m i n a t i n g and q u i t e c o r r e c t i n my o p i n i o n . The press quoted you as s a y i n g , among o t h e r t h i n g s , t h a t "we c a n * t have f u l l employment and loir, p r i c e s unless t h e government r e g u l a t e s e v e r y t h i n g . " Under the impact of a f r e e economy w i t h o u t r e g u l a t i o n s u b j e c t t o the laws o f s u p p l y &nd demand, we have the s i t u a t i o n as r e f l e c t e d i n your statement* I f t h e government " r e g u l a t e s e v e r y t h i n g " we have p r i c e c o n t r o l which leads t o more and more c o n t r o l s and we must meet the charge o f " D i c t a t o r s h i p 1 1 ?foich, i n my o p i n i o n , might cane t o pass. Ten years ago I recommended t h a t the s u b j e c t of Economics be made a r e q u i r e d study i n a l l h i g h schools and u n i v e r s i t i e s which i s t h e law of "How a Man Makes h i s l i v i n g " . Less than 10fo o f the p o p u l a t i o n understands t h i s s u b j e c t . I f 90$ d i d understand elementary economics, they would refrain f r o m k i c k i n g up p r i c e s because of the laws of cause and e f f e c t . People would become aware of t h e i r r e s p o n s i b i l i t y t o wards t h e i r workers, t h e i r customers and the p u b l i c i n g e n e r a l . http://fraser.stlouisfed.org/ Federal Reserve Bank of WJC*ED St. Louis 1. I am w i l l i n g t o h e l p t u r n up the v i r g i n s o i l i n t h i s d i r e c t i o n by speeches and w r i t i n g s and would r e s p e c t f u l l y ask i f you would encourage such an e f f o r t on my part? 2. To meet the present s i t u a t i o n , i t may be v e r y necessary t o have many c o n t r o l s t h a t are i r r i t a t i n g and hard t o t a k e , but u n t i l such time as vm can acquire enough knowledge of t h e laws of conomics, how can we a v o i d such a step? 3# What s u b j e c t i s more i m p o r t a n t than economics i n any educational system? Yours r e s p e c t l h l l y , 2822 December kk> 19U7 • Mr. W i l l i a m J . Carignan, 9k±k C a l i f o r n i a ^venue, ^ o u t h Gate, C a l i f o r n i a . Dear Mr, Oarignan: On b e h a l f of"Chairman S c c l e s who i s spending t h e h o l i d a y s i n Utah, 1 wish t o kcknowledge your l e t t e r o f December 15• M r . " ^ c c l e s was i n t e r e s t e d i n seeing i t , p a r t i c u l a r l y because he t i s i n f u l l accord v , i t h -your r e c o g n i t i o n o f : t h e need f o r w i d e r education' i n elementary economics.' He asked me t o thank you f o r your c o u r t e s y i n . w r i t i n g t o him. Sincerely yours, E l l i o t t 1 hurston, a s s i s t a n t t o t h e Chairman. ET:B
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