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Hunoington Park, J
December 6, 19k7*
Marriner S* Eccles,
Chairman of Federal Reserve Board,
Washington, D, C.
Dear Sirs
I wish t o congratulate and thank you f o r your f e a r l e s s p r o t e c t i o n o f
American P r i n c i p l e s regardless of p o l i t i c a l consequence* The greatest
t h r e a t to froedom i s the snobbish l i p service t o s o c i a l i s t i c p r i n c i p l e s
w h i l e f o r c i n g the n a t i o n i n t o Fascism as the New Dealers have been doing*
Such hypocrisy w i l l wreck t h i s n a t i o n j u s t ^s was England whose l a b o r Government was elected so t h e a r i s t o c r a t s could s e l l t h e i r worthless r a i l r o a d s s
and depleted obsolete coal mines t o the Government a t t e n times i t s r e a l
v a l u e , l e t t i n g the working man and middle class pay f o r them v i a taxation*
and making England a f o u r t h class nation* Therefore, may X thank you again
f o r your f e a r l e s s p r o t e c t i o n of American freedom o f a Gdverament o f laws
Instead of a Government of biased meni.
But I would l i k e t o v o i c e alarm a t the s e l f i s h business i n t e r e s t , a s
pointed out by B a r r o n ^ E d i t o r November 2lith, t h a t as long as some groups
can buy a l l of c e r t a i n m a t e r i a l or goods and create an apparent shortage,
they reap huge p r o f i t s and push the i n f l a t i o n s p i r a l higher and higher? t h a t
bank c r e d i t s and bank funds are being used t o h o l d goods o f f the market aa
commercial loans rose from $9*000,000,000 a t the wars end t o $35*000,000,000
a t present* Barron says t h i s bank c r e d i t i s jeopardising f r e e enterprise*
This i s s u r e l y a case where the banks are double crossing the p u b l i c dep o s i t o r s by l o a n i n g p u b l i c money t o speculate i n i n v e n t o r i e s * I t i s i n t e r e s t i n g t o note t h a t i n v e n t o r i e s which stood a t about 01?,000,000,000 a t the
wars end are about $UQ,000,000,000 now* Banks do not loan t h e i r own money
b u t they loan the mcney o f t h e i r depositors* The banks are custodians of
the depositors money, and they cannot r e f r a i n from t r y i n g t o make temporary
p r o f i t s by l o a n i n g t h a t money t o speculators, who i n e f f e c t are gambling on
commodity markets against p u b l i c i n t e r e s t and against p o l i t i c a l and economic
s a f e t y o f d e p o s i t o r s . I f said banks cannot c o n t r o l t h e i r greed* then the
Government must a t l e a s t t r y to regulate bank c r e d i t s *
There should be no shortage of any k i n d or d e s c r i p t i o n * The Government i s f o r c i n g wheat up and g i v i n g i t t o buyers who cannot pay f o r i t ;
buying potatoes and dunging them i n the bay} buying eggs and dehydrating
them* Lumber, b u i l d i n g materials* f u r n i t u r e , clothes and groceries which
were almost n o n e x i s t e n t a t the end of the war are now on display f o r sale
every where* M i l l i o n s o f groceiy stores, lumber yards and other businesses
have opened and are f u l l y stocked since the wars end* Inventories have i n creased by @28,000,000*000, and exports r d t h the f u l l Marshall Plan w i l l be
f o u r t o f i v e b i l l i o n d o l l a r s l e s s per year from here on* S t i l l * r a d i o and
press are h e l p i n g speculators by saying t h a t wo cannot produce enough goods
t o go around, and causing the p u b l i c t o hoard every thing* Mr* A< A* K o l
i n Commercial and F i n a n c i a l Chronicle of November 20th answers t h i s f l a g r a n t
l i e e f f e c t i v e l y . I quotet "The existence o f g i g a n t i c business i n f l a t i o n of
absolutely unprecedented proportions i s a f a c t f o r reasons explained above*
I t i s my conclusion t h a t the Nation i n the aggregate now i s not sane and soun d
b u t s i c k and s i l l y * Vfe arc i n a s t a t e o f mass madness j we are out on a limb
f a r t h e r than ever b e f o r e , and i f and when our boom collapses* i t w i l l do i t
v i o l e n t l y * Our domestic i n f l a t i o n a r y bocra has been kept going by a sequence
o f f a c t o r s j by reckless consumer buying* i n f l a t i o n a r y consumption W
producing s t r i k e s * spending o f p r e v i o u s l y accumulated savings o f consumers
f o r renovation i n the home, spending f o r business expansion and inventory
replenishment, by great export surplus* These f a c t o r s s t i l l c a r r y business
along b u t t o each there wag or i s a n a t u r a l end."
With best wishes f o r you and the Nation, I am




Frank J* Gardner,
61*19 S a l t Lake Ave*




December16*17•

Mr* Prank J . Gardner,
61*19 S a l t Lake Avenue,
Huntington Park, C a l i f o r n i a *
Dear Mr* Gardner*
6*

f h i s i s t o acknowledge your l e t t e r o f December
I was i n t e r e s t e d i n having your comments.

Because o f your i n t e r e s t , i t occurred t o me
t h a t you might l i k e t o aee the f u l l t e x t o f t h e s t a t e ment I presented before the J o i n t Committee on t h e Economic Eaport on Hovember 25 and, accordingly, I enclose
a copy.
X appreciate and want t o reoiprooate your good
wishes.
Sincerely y o u r s .

I I . 3 . Eoelea,
Chairman*
Enclosure