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A U G U S T Wfl LTERS
Advocating a Sound Financial Policy for Governments
Eliminating National Taxation
Newark, N. J . , U . S . A .
3 8 E a s t Park
TeL MArket
Street
2-1922
Newark N.J. March 29th, 1941.
Hon. Marriner S. Eccles
Federal Reserve Board
Washington D.C.
Dear Sir:
The controvery between you and Mr. Patman is very interesting. The enclosed paper Illustrates my views of the
matter. There is no question in my mind that you are alarmed
at the reckless spending now in process. One thing is certain.
The present orthodox system will never be able to take care of
this spending without creating choas in the future.
There is no way to finance this program without making
the bankers and money lenders the ultimate lo#sers. What do
the people care how you get the money as long as they do not
have to pay for it. Consequently only those will suffer, who
have funds to invest.
In the past X have corresponded with your assistants
and arrived nowhere. Now I take the liberty to ask you to
investigate my rational finance plan how to finance any nation.
Tou are^highly intelligent man and in spite of the fact that
your training has been orthodox,there is no reason why you should
not grasp the novel idea I have worked out over a period of
about 15 years.
I also assume you are big enou^i to admit the truth
when it is presented to you. Of course I fully understand that
you may be highly insulted if I call the present monetary system's far as financing the government is concerned, a flim
flam game of the highest intelligent order.
You also know that Congress or the Senate knows very
little about money. If they ever had presented a plan that was
rational, you would have acted long ago.
In my opinion, this matter of financing the government
should be worked out between the banks and the Treasury Dep.
without calling upon Congress to solve the problems. They will
approve a rational plan and most of the monetary experts in
Congress consider my proposals as highly interesting.
My correspondence with the orthodox economists has also
be very interesting and again shows a hopeless confusion of
ideas.
Hoping to be favored with an early reply, I am
Yours very respectfully
March 31, 1941*
Mr* august Walters*
38 East Park Street,
Newark, New Jersey,
Dear Mr* Walters:
Chairman Eccles is temporarily absent on
a visit to the West and, accordingly, I wish to acknowledge receipt of your letter to him of March 29
and of the copy of your statement on the subject
matter, dealt with in. his recent letter to Mr* Patman.
It occurs to me that you may be interested
in seeing the full text of this letter and I am,
therefore, enclosing a copy.
Sincerely yours,
(Sighed) Elliott Thurston
Eiliott Thurston,
Special assistant
to the Chairman.
enclosure
ET:b
O/
In regard to the controversy between Congressman
Kr* Wright Patman and Marriner S. Eccles*
Having studied monetary plans and systems for many ye are and
claiming to have produced a rational finance system for governments, I am greatly interested in the dispute between these tW)
gentlemen* They both try to improve a finance system which is
unfair, unjust and based on wrong economic thinking*
The proposal by Mr. Patman is economically unsound and
ae Llr Eccles says* economically disastrous*** }3r* Eccles counter
proposals are equally unsound from a rational point of view*
His idea that the banks should use the peoplefs monies and savings through a middleman, the banks, is based on a fallacious
idea* Why give the banks national bonds as security for the use
of our own money and national credit? Why pay the banks interest
besides on our own money? It shows distinctly the confusion
prevailing among all bankers, monetary reformers and economists*
They are all laboring under the illusion that the harder we work
the more money v/e make and by working 24 hours a day, we can
eventually work ourselves out of debt*
This is a fallacy upon which all reformers have based
their plans for new ways to finance a government*
It is just
the opposite* The entire world is laboring under this illusion*
The present monetary system creates nothing but debts as far as
fincancing the government is concerned*
For that reason, Mr* Eccles answer, that, if Kr* Patmanfs idea had any value, Germany or other countries would have
adopted such a plan long ago is very logical* Kr Eccles is
also correct when he states that the German government is still
maintaining a strictly orthodox monetary standard* This will
be the downfall of his government* Mr* Hitler may have the best
intentions to help his people and other nations, but his ambitions will be frustrated by his own financial advisers who are
just as high hatted as the financial advisers of all other governments on the face of the earth* The international money
brain trusters*
Mr* Hitler's new world order will only lead
to further enslavement, this time not through the international
bankers but through his own government* Mr Hitler's new world
order can not work, will not work, and will prove his own downfall, brought about by hio own financial advisers and tax collectors*
The writer has tried for may years to obtain a hearing
before Treasury officials, the Federal Reserve Board, many
committees in Congress and the Senate, but so far, the orthodox
powers in command of our financial institutions have refused
to listen to a rational monetary proposal which would save the
nation billions in taxation*
The writers plan does not involve the purchase of the
Federal Reserve Banks, raising the national debt, borrowing
from banks or printing a single dollar bill* The writers plan
could even pay off the national debt without disturbing the
economic life of the nation*
The program itself should prove of tremendous interest
to the bankers and a demand for further details as to how all
this can be accomplished, but all, including our leading of fials have declined to grant me an opportunity to present this
plan*
The present banking system might have served in the
days of the oxcart, but certainly is out of joint with present
modern, streamlined conditions*
Respectfully submitted:
August Walters
58 East Park Street, Newark N*ff*
March 28th,1941*
AUGUST
WALTERS
Advocating a Sound Financial Policy f o r Governments
Eliminating National Taxation
Newark, N. J., U.S.A.
3 8 E a s t Park S t r e e t
Tel. MArket
2-1922
Newark N.J* April 2nd,1941*
Mr. Elliott Thurston
Federal R&erve System
Washington D.C.
Dear Mr* Thurston:
I was certainly delighted to receive your
letter with Mr* Eccles text of his letter to Congressman
Patman* I know Mr. Eccles will support my plan immediatley
after I have made known to him the details of my investigation* The concensus of our leading local bankers is that
the plan proposed by me is the most ingenious ever offered
to any nation*
If we maintain this lopsided finance plan
as now in force, the bankers will be the ultimate losers*
In fact the government will practially confiscate all monies
regardless of what the bankers want* The national debt will
have to be cancelled.
My plan provides rational payment of the
present national debt to a penny# My plan prevents further
debts and all those phantoms of fear as to what might happen
if the bankers do not finance the government are simply based
on wrong economic thinking*
The upheavals in this world are all caused
by the misuse of money* My plan will make us the world leaders
in the creation of a new world order based on peaceful penetration in the entire world*
All the isms including communism are based
on orthodox ideas.
They are all failures*
I hope to hear from Mr* Eccles as soon as
he returns to his office*
Yours very respectfully
if
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