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Governor Marriner Eecles,
Federal Reserve Board,
Washington, D.C.
Dear sirWith regard to your lejrfcer to Senator Byrdt you are, apparently,
one of the crackpot theorists with whom the country i s afflicted*
It makes a very big difference whe/bher the State is the one and
only borrower + The obligations of the government are held in quantity by
every bank and insurance company* Tesf the government is wasting a lot of
money on employing: people usho do no useful work. Capital is being destroyed by the government on a lot of s i l l y ventures* H w do you explain
the terrible loss o our purchases of useless silver far above the world
price; the loss on the Passamofuoddy •e&ture, aid other idiotic ideas*
The N w Deal has put business in a s t r a i t jacket* Overhead has
gone way up; our companies cannot compete with concerns abroad because
of this - yet, the N w Deal makes conditions worse by lowering the tariff*
You and your associates have been responsible for the loss of the country's
export markets in wheat and cotton; you have used the people's money for
T A projects; have kept no comparable record of costs; and have prevented
the u t i l i t y industry from apwnding money on improvements* By a political
decision interested solely in votes, you have kept railroad wages sa high
that many roads are broke. Nothing can be spent on new equipment* In fact,
because of government policies, the heavy industries are practically getting
nowhere* No one sees sufficient daylijght ahead to make improvements to plant
and equipment - which is the sort of business that would provide work for
thousands for many months ahead.
Yes, when a man invests money in private industry, in stocks
or bonds, he knows some of them will turn out bad; but he hopes to make wire
;fchan he loses. That is our profit and loss system - not merely a profit
system* But when one buys a g vernment bond, he does not expect to lose.
Government credit, e t c . , is the basis for confidence in our currency*
Destroy that, and you will have wild disastrous inflation*
The country knows you had banking experience - of the bush league
type* You are not a major league player, or thinkpr* And remember, you were
not elected to any public office. Try running for the Senate; see how many
votes you can get*
Your l e t t e r to Senator Byrd i s just typical of the snarling done
by N w Dealers. No use your crying jfaVfair play - you don't ccme into the
court with clean hands*

Yours truly,