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M ^ . WILLIAM JEWELL 37 DANA STREET CAMBRIDGE, MASSACHUSETTS tyk UcJU^ o ' \ da ^ y ^ ** f / • . stl/JLU ^ ^ ^U^a. ^ / ^ / 4 rr (S^uJL ^ jz ^ ^ ^ ^ ^ j ^O^/tt _ Q^ O . /rst . WAut. ^Z ~gr JLi/JL /w jfc. itl GftjCc, ^^Mr ^ aU^^J/ Of / /fzf u JflfJ ^ a&x+^L liU ifUfil ^ . /ial&tiJg^d^' ^^ ^ It+yO QJUo**?" ^^ OAtAs Z&T r-x— Yyblfi. WILLIAM JEWELL 37 DANA STREET CAMBRIDGE, MASSACHUSETTS Vol— / , dy — ^cZe^i^ tot 1&Z ^ % A-aZi ^ ^^- J f V V ^ / ^ 'Jt W ^ ^ rtoiic/'s ^ ( Jf - —— Idiso ^-vjl^JL ttx j a3 a d^J. aU ^ / W tti W U * - W11X1AM JEWELL $7 DANA STREET CAMBWDGE, MASSACHUSETTS ^O^tUeiyfJt. &L0JL&- UsuSZutizSL, Ta&O** ^ Ufa UHMZ UxJ&^JP J) -if^z&z hfifJoe , March 9, 1951 Mrs. William Jewel, 37 Dana Street, Cambridge, Massachusetts. Dear Mrs, Jewel: It is a pleasure to hear from informed people like yourself who have given much thought to the complex monetary problems with which we are presently faced. I agree entirely with you that if the public could be informed about the real facts with respect ot inflation and its control, we would be taking a big step in the right direction. The favorable and enlightening publicity given to the System's problems in its fight against inflation by such men as Lippman, Belair, Livingston, and Alsop is encouraging because it may perhaps offset, in, part, the confused writings of other men in the public eye which you mention. You might also recommend to some of your friends that they read the booklet, The Federal Reserve System—Its Purposes and Functions (Washington, 194-7, second edition), which we think explains rather clearly the origin, growth, and basic functions of the System. It may be obtained without charge- from our Publications Division. In addition, you will find enclosed a copy of the address which I recently gave in Chicago, Illinois, before the Executives' Club of Chicago and a copy of my article "The Defense of the Dollar" reprinted from the November, 1950, Fortune magazine. As I have said many times recently, inflation is the most serious internal problem now facing this country. The dollar has already been permitted to fall too much in value. A continued depreciation of its purchasing power would imperil the very existence of the system that all our defense efforts are designed to protect. My views may differ from yours slightly to the extent that I do not feel that artifically low money rates are alone the roots of inflation, but that excessive money demand relative to the supply, of goods, instead, is the basic cause. The Federal Reserve System is not interested in higher rates as such, but only in higher rates as they may help to discourage the sale of Government securities to the Reserve System. Thank you again for your kind letter, and for the support which you are giving to our efforts here to fight the difficult battle against inflation Enclosures
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