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4, 1939*

Hon. Marriner S# Eccles, Chairman,
Board of Governors, Federal Reserve System,
Washington, D«G#,
Dear sir:
In your broadcast of the 25rd ultimo you spoke of
"fundamental changes that have come over our economy", which
you expained you would not have the time to explain over the
air, might I respectfully inquire just what you meant?
Is it not a fact, that no matter how complex or intricate our industrial system may appear, it all still resolves
itself in the end, into the application of labor, with or
without the aid of capital, in transforming the natural
resources(in land) into the things that man desires?
I do agree that our people, including many of those
in higji places usually fall, refuse or neglect to realize
or recognize this fundamental fact, which is, I submit, just
as important to our economy and existence as it ever was*
You say the day has passed when people canffgo west11*
Surely you do not believe the west is overpopulated? The
opportunities to establish homes, farms and industries in
the west is surely not inferior to that in the east? The
era of railroad expansion may have come to*an end,but did
you mean to imply that the west has room for no more people,
and that those who are now jobless, homeless and landless
in our cities who have little or no hope of ever getting
their old jobs back, must be "given" a job,or failing that,
must be given money, so they can buy things and pay rent?
In England, the leaders do not give their people the idea
the "government" can afford to support all who need aid*
You say"the right to work must also be preserved", but I
submit "the right to work must be RESTORED"* We have many
millions of acres of good land, now idle & being hoarded
by busted or frightened holders* The slump has left much
of this on the doorstep of the states for unpaid taxes*
As long as the states can get money from Congress, they
are not as diligent in collecting the taxes past due from
these lands,or in selling them for unpaid taxess Thus,the
land has largely quit circulating, andfehedeeper in debt
our National Government gets, the less incentive there will
be among the land holders to improve or sell their land*
We have not fairly begun to utilize the resources in land,
nor are we ever going to"recaawrliyuntil we utilize them?
Very respectfully, (y>

February 11, 1939

Mr. J. Rupert Mason
1920 Lake Street
San Francisco, California
Dear Mr. Mason:
Mr. Eccles has asked me to acknowledge and
thank you for your letter of February U in which you
consent on his recent radio address. You question his
statement that the day has passed when millions can
follow Horace Greeleyfs advice and go West when they
f*dl to find employment or opportunity in the populous
Eastern centers. You have perhaps misunderstood his
meaning in using this expression. It may well be that
there is still irore opportunity for young men in the
West than in the East. In the earlier times however,
whenever there was a depression large numbers of the
population in the Eastern cities *ent Vvest and took up
free land of which there was, of course, a great abundance. That was a part of our frontier economy. The
free land offered a means of absorbing people thrown
out of jobs in industrial centers. Today, of course,
the Western States do not want the unemployed from the
East unless they arrive with sufficient means to support
themselves for some reasonable period.
I think Mr. Eccles and yourself are in substantial agreement that our economic system mu&t find
a way to keep our natural resoUI^^s^ our man power and
our capital accumulations occupied in production if it
is to survive.
Yours very truly,

Lawrence Clayton
Assistant to the Chairman