The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Sears,Roebuck and Co.
Executive Offices
Chicago
R.E.Wood
President
October ?9, 1936
Personal
Honorable M. S. Fccles, Chairman,
Board of Governors of the Federal
Reserve System,
Washington, D. C.
My dear Mr. Fccles:
I thought you might be interested
in a memorandum I have given Marvin Mclntyre for
the President. I do not know whether or not the
President has read it, at any rate I hope he has.
I tried to put down on the credit
and debit side what I thought of the Administration's
policies and results.
Very truly yours,
Att.
for the President*
I*ike & great mny other Qiii&etiB who try to tek« their
ltiee seriously, I have etver been »ora coafua^d in my own miati « a to which
stncl which CMwtldate to support in th® coming {^residential election* Thar©
great m&8& things and a gftttt m y fifETe* ia each of the Sfpeslng camps which I
do not like* Xt i s equally repugnant to a@ to be cm the <sid® of igd«B Ktt&i sad ieejp
&s an toe side of Tugwell and ^abineky* NwreylhiilHWf I have decided to vote for the
Adaial&tr&tloa* X« the mmt I had not, X (NwU «iot hare oppoa^d the
ooealgr in vi*w of the eaurt#&t©#> I have r e c e i v e and the
liking I bwe fe*
F r t
I thmight p^rhape i t might be useful to the Fi eel i l l I to have me net
dona the points few and afeimi HM l ^ n i i t l ' a t l e a M rt®w®& bf mn honmit appr&ift«r*
Chi the e-^«dit stele we have tfce followitigt
t Gold an4 th© Monetary Policy
Fresidsnt, by hie courageous- sad unorthodox ft arid, did awch
"b thi» oae aa&sure to stop the deprm-»ion ttiid to st&.^t the timrtiy upward•
strengthening of the Banks and tb« Fsde^aX Deposit Inearanee Lesr.
• a. put the banks as their feet, gave the pmsple etmtlAme*
their a^Tinis would not be lo*t wad, together with the HeJaetiij policy followedy put an
mid to UM proce^ee of deflation*
act fcai given to the satall &^ wall a® to the larfe investor
of protection* I r^g^t*d i t ss on& of the Best coaetrnctive act
bhe
This act was dea«&d®d by aodsra industrial oivlliauttioa &nd
boen pat into effect lamg ago# While necessarily defective 1ft tss&y respects,
I t serves as a eiejrter fo:r a lotig-rang© p-rogreiai«
Treaties of th« Seer#tery of State*
are a splendid and aoia-p&rtie*** beginniug of &a attempt which
prove successful to opim up the channels of tf«*de and proaete international
beaeftt to a l l natlozw
Civilian Conservation C«rfJ*«
This, aa I wrote the Fre»i4ent before 9 I regard as on© i f tl»e fin»
est ants of the AdKtaistretlon* Mow th&t eaploymant i s coaiug b&ek* i t algfe-l be r e duced, hut there sh-HildfelMSfSh« available a place far 150,000 to 200,000 of our
youth in this Corps*
7j
MA and Soil Conaerratloa Act.
Both of HMMMI were of p t f t t benefit to the agricultural po
ulation* With the aonetary policy, i t helped to restores fans purchasing
whieft# l a tarns* worked back to the industrial population In the c i t i e s &ad s t i l l
farther helped the tread upward* The AM Mi nsoaOsrtlgr defective and faulty fa
itAaifilatretioaj but m as easrgency ae&sur© i t w&g oipailoart $m& served i t s purpose* the Soil Conservation Act i s a sound nea^ure* aod i f pffperljr
e of |»e»t
8<,
Strengthening of the National
This i s l i t t i © known or understood by the public, but %® one
n&&& years of his l i f e la Hie aillt&ry gervice* i t l i re^iurtfed aa oae of
the ftehierements t f the Adudnletrfition* ^©w r e a l i s e how mefa hum the pel"itlMey of
Coalidge and tbe paclfisss of HooTer did to the arm#<i forces of th#
%+. Cbanges In Ufee Federal Bankisg Aot Hei the I&prore&eat in
the Pereouitel of %h® -Fedarol Il^serre Bo^rd «od of the t
the f i r s t %lMet the fi'jifcmy H^epearlMSt iMd the Federal
Board do not take their orders I M i the lower #nd of lev Xork*
1 sight mention as a fey-product ox* thie" Adainletr&iion tkat the
«a dona a (pfjet d@Rl to arouse the s-ocisl eonsclence of evfUajtim* Thir* i s
cuftotig his Mtttere^t opponaats, though they iMHtld toe th« l a s t to adsnit that
ha M& infltteneed then la a ^ way*. fbere l i today a timmor* tmligbten^ m i humane
atti1aid# oa tha eart of th^aployer toward the es^loyee than th@rs kM ©ver b^^n at
nay tlm® in Uli bj<teuj> of ; thls oonat-ry, sad for t h i s i.h© 'President 1# largely
i
low, as to the debits*
Xfr This eosjpaa of the opposition to the President iii&t the speatiiag
stop sjal the budget ba balanced ha« | t f t i f i o a t l o a » fhs esy to baleaa* the
get in i f & * Xt34 • * ! tfjf was • foolish cry, but in 1936 i t i© m% f o o l i s h . The
wiawHrtt tiiii ss have served their aaj'fofif the feKUitJ? i s ea a spiral ttawax4# aai i t
siiould be osjafNurfttlvely eeey for the Administration, i f i t hat the eoamtfO| to
&aee the budgat beginairig July 1, 1937* There Is going to be ma @?K)rs*ou#
la reaetfftei how auch 1 beXlare no aan eea predict &t th® pmHNHtt t i a e f though I
tttve to prophaaj tbat the i e t a i s e fro® iorpojratloa ta.K0# aad imcos© taxes will
aa even the nost optoaistic beBe#« S w t taaaji t!v;t if fron July # 19??, the
eve rMucad ejr a modere-te aeroeaiaa>ft| the timliet can b® balanced begirsfilnf
4*uly 1, 193?• %•& CCC oea b© cut 25^* wAMrf should be cut a&tarially, SOSjettilm can
ba i^resd. off the Ar^r and H&vy apptro^riat.io.ng, antf pejhUe works aaaaa^taeaa cas toe
Altogatht-r, i t should ma% b® a gre^t ta#k« I believe tb*«t i t s s j be
by 193^ to i1 stlaos teasM soaevh^t and yc^t aaiataiia a l i b e t s l avegrwi of
turea* I <ao twt think tMs balaiacl
tha ettifet should be held up until !$£§*
taialy saot in visw of th« business racov^.r^r that h#t$ begun, that i s MM in progress
and that in ay belief w i l l
I*
2» The charges of the opposition to the Main! st r a t ion about relief
hare great juatific&tioa. Relief ta $m® states Is undoubtedly ruled If p o l i t i c s ,
and in other stiites i t has been wasteful* While having «m adiair&t.ion and liking for
8ar3?y- Hopkinsf the s&n, I -feel that his viewpoint, that of the t f l a l worfcer, should
and saiat b« a0t£i"ied» ^'h® ttoontiy does not owo A standard of living to s*e*p loafer
aasi eveory ineovgwtent wfen ha?$Hms to b© ia the eefltttrjr or to any siistii ftalief fo*
the really n^adl" G&n b@ adainistered aad on a proper seal« with f*r lass than the
present expenditures*
5* The ahatrge against th« Administration of &mr fidninistration
true in aangr places* *h»f «r® poae aotable axeftptlon* in KttOh tyilimtid tnHfif^
tor» «s J©ss© Jaj^tss, SMNHOHV Meyers, ir« faheyf O'hestar Iliftj &nd Oovernor
#
but tbmto Art «tlfto soa© aotabla ©%&-pies of poor Wlhiini itritti g^ suteh a^ l#®#rsi# M|N>
?
a.«d soo« of the cablnat officer*•
tfoa Administratitm Mri th® J W t n j of Wbor
too far to the dafans© fend promotion of labor ualmis* falfartftl tf^de
.ism is not osaential to attaia better working couditi-Dns &mi Imtiwr ^^gea. I t i s J
Uwt th«v unions h&v« dan« auch in same af th« axplsltad Iujllttiltf L The t»ctlos of
MMW of th« old PennsylTmtis. steel sud coal ea|jloyi5i*s abouXd not b*j VfgNMriM* Btsploye^s should te# left ahjointaly fr©@ to join a Xdbor union Ss* tlsstf own accord, (hi
th® othior haad# ©aploja#5s shffalrt a l t o b# fraa to not join*
l.f %M®f At Mil so
thty iff|Hi%i not b© Intiaildfttsd* 1m$Hj9f*r4 itwmlift not be foretd to ttign close
6^r«@«onts If they do not wish to do so* Such t&ctlca M th« D«p-a.rtm«nt of Labor d
played on thS) F&cific Oo&st in their protection and support of the forsl.gn tg^tatisr
Bridges
will create m labor tyT&nr$r o<at ther© that Mill do M such dft^ctge end will bt
ja.-,t !:s b&d as any capitalistic tjraariy* If labor unions sari to have pow@r, they
accept responsibility* Publicity SSist be giv^n to Ihi expenditures of the unions sad
to the s&larl^e of their officials. They cannot have their mkm tmtl ©at i t too*
%* There te.v@ been soae utterances of afflclala vhile la the service of
the Administration which have tended to arvtgr class against •£*•§« ^o wor® Tlcioaa
fipaeoh ^as ar«r iollvare4 tkpa th© MS KP« fy.g*#ll delivered ISJ 1&& Angeles whr*re- b#
Silled on the AHMVI *3S*J the workers of the country to ttnlto^ practically Wfilf HMM
to revolution* Th.-.t ej?*?ech did aore to pui doubts in the minds of liberal m^n who
haf» b.#©n friendly to the Administration them asgr other one thing that hes bapp#fi^i
t throe i a i ona»half years*
At the beginning of thu MlmlniBtratton> X felt that tfee Fr«6id«nt and
his pn*incip*l officials mti & total •l»oonneJititrun of tht aapit&li^tie sy^t#a» Mo&f
those Offlel«Xs I might santion Xeasrs* ^all^es and ^ut-prell* I believe thst Mr. Vat-*
lae# f witii hi^ kMMS| olaar miad is —re ©jilightened. at- the: pr©3sut- tllsft I M fully
la aecord with the idea that as our Industrial syatem b«O'»ftes mor& ana store compllthsvnt ^111 hme to be snam and aore regulatloa of txisl||SHl, but between WKH
ai eabodisd in th® Seouritloa sad itiroboTigs iMit and the taagwittf wlt'ri the
of busin©©©, there In a vast d
eaartala that v,e have begun tbs s p i r a l t^svajpd'i $tt$t as
m were spiralling downward bet«een 1929 &**<$ 1933» I feel certain ttatft @i£e©pt for (
possible contingency of a war In Saropef this eountry i s going te have W9*f gr»at
prosper!ty duriitg the next tm* years. I do not se© how enythlng ©an ajfofesit i t . Of
course, if we have el&Bn warfare and fsmarsl strikes, we a&y h?iv©
On ths othar hand, I bwliave that every employable aa& can and pfoWbly will be
employed within t i e Mst two yttvt ut good MHIM «t Mk§ejM I'or tMs re*Mtt| I
think I t a l l the ao^e important that the whole problem of relief be ovtrbftSlettj
tkat tile MUNuH^li MHl dhNMi b© foreed t© work I f WHHIK i s grrsdliaMt a t
:-,JLXe Itev^glv#n i b f n tfai points of erltiotss ai I • # • tbon9 it
to »e t1is..t the ®nl? thing that the President might to refer to wore #p©oifl
y In M s speeches between now and election t l M la the question of th* fiscal
policy of t.he i«r»xWM»t, bsginalag July 1, 1937* She otieri are all ones
nrhle-fa. eeji he t&feen up after the election*
OcU U# 1936*
Form F. R. 131
BDARD DF GOVERNORS
OF THE
I
FEDERAL RESERVE SYSTEM
Office Correspondence
To .
GoveriiQi.JDaYis
From.
.Chairman Eccles
Date lov—tr st 1936.
Subject: I»tter dated October 29, 1956,
from
General B. E. Wood,
This is the correspondence from General Wood about
which I spoke to you. I will appreciate your returning it as
soon as you have had an opportunity to look it over as I have
not yet /edited.
Attachment.
Hoveaber 9, 1356,
dear General Woodi
This is to acknowledge ycrnr note of
October 29th enclosing a copy of th© aeoor&ndua which
you inm&»llt<a<2 to th* President* I have read It with
care and regard it && constructive criticism with all
of vhich X aa sympathetic tmd much of which t aa in accord* While X do not know vfeether the President had
rood it, I hope he h&u Mid aa i&elinod to think h»
would wolcoae this frank expression, which is hcVk O O O K
and constructive in contrast with so mieh of
the criticiss which aeeae to »e, as X know it doee to
you, to be sore eaotiorutl than rational*
you for your thoughtfulness la
letting ae see this
Slacerely ymir@t
« S, Secies,
Chairman*
General E* E* Wood,
President, Sears, Roebuck and Coapaay,
Chicago, Illinois.
@FedFRASER