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March 9> 1951 Mr. Ralph P. Graeber, 543 South La Salle Street, Aurora, Illinois. Dear Mr. Graeber: Thank you for your letter of February 21. I want you to know that I appreciate your thoughtfulness in writing me. I am not at all surprised that the average citizens with whom you have discussed our present monetary problem understand the implications of the problem and the importance of preventing further depreciation in the purchasing power of the dollar. A large number of everyday citizens—housewives, wage earners, retired people, small town bankers and doctors—have written to me recently and their letters consistently indicate a clear realization that there is a direct connection between recent monetary policy and the inflation which has made most of them its helpless victims. While many of the writers may not understand such technical matters as the way in which our fractional reserve system intensifies the problem, they do understand that rigid support of the Government securities market has resulted in unhealthy credit expansion, that this expansion of the money supply has seriously reduced the value of the dollar and, especially, that preserving our way of life includes defending the dollar. Needless to say, we at the Board find these expressions of public understanding very gratifying. The most effective reply we can make to them is to continue to do all that we can to assure the adoption of fiscal, monetaiy and credit measures necessary to prevent further inflation. Very truly yours, M. S* Eccles.
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