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FIRST NATIONAL BANK IN ROCKWOOD R O C K W O O D , T E W . W H E R E YOU F E E L AT H O M E " December 1 8 , 1947 Mr. liarriner S. l o d e s , Ohairaian Boar! o f Gove mors Fedeml Ite serve Bank Washington, D. 0* Dear S i r : I regard you as the f i n a n c i a l wizard of Washington* and of course you can not place much w i g h t on the opinions of onehorse banters throughout the countiy, bub i t occurs t o me the only way i n f l a t i o n w i l l ever be stopped successfully i s by deflation. I think our Government and the Federal Beserve Bank should start the ball rolling. Witti the compliments of the Season, B/G am December 24, 24* M r . Vnm. E n s m i n g e r , P r e s i d e n t , F i r s t N a t i o n a l b&nk i n hockwood, fiockwood, Tennessee. Dear M r . E n s m i n g e r : On b e h a l f o f Chairman E c c l e s who i s i n U t a h f o r t h e h o l i d a y s , I w i s h t o acknowledge and t h a n k you f o r y o u r l e t t e r o f December 1 8 , w h i c h I know M r . E c c l e s w i l l a p p r e c i a t e r e a d i n g on h i s return. May I r e c i p r o c a t e on h i s b e h a l f y o u r c o m p l i m e n t s , of^jbhe. Season^. Sincerely yours, E l l i o t t Thurston, A s s i s t a n t t o t h e Chairman. ET:b FIRST NATIONAL BANK IN ROCKWOOD R O C K W O O D , Tj&jsn. W H E R E YOU F E E L AT H O M E 1 1 January 19, 1948 M r * M* S* B e e l e s f Chairman Board o f Governors F e d e r a l Reserve Bank Washington, D* C* D e a r Mr* S o c l e s : I have y o u r l a t t e r o f t h e f i f t e e n t h * W h i l e I am n o t e g o t i s t i c a l enough t o t h i n k t h a t X could o f f e r a s p e c i f i c , or a k i n g c u r e - a l l f o r a l l our N a t i o n a l a i l ments, y e t we have d r i f t e d so f a r t o w a r d Communism, o r i n o t h e r w o r d s , t h e F e d e r a l Government i s p l a y i n g Santa Glaus t o everybody, t h a t X sympathize w i t h you gentlemen i n Washington who a r e t r y i n g t o p i c k up t h e fragments* T o u r o u t l i n e o f c o n t r o l X agree w i t h one hundred p e r c e n t * Two hundred and s i x t y - f i v e b i l l i o n d o l l a r s must be p a i d , and t o tamper w i t h t h e t a x s t r u c t u r e , a t t h i s t i m e , I do n o t see t h a t i t would have any e f f e c t on t h e i n f l a t e d c o n d i t i o n o f t h e count ay* I f X were competent t o r u n a s b i g a n i n s t i t u t i o n a s t h e H o t t e d S t a t e s Government, I would f i r s t s t a r t a t Washington, D* C * , t a k i n g o u t a l l s u p e r f l u o u s , o v e r l a p p i n g bureaus, and c o n s o l i d a t i n g o t h e r s * I w o u l d cut h a l f i n two m i l i t a r y expenses and a l l o t h e r p r o j e c t s , and w i t h d r a w f r o m t h e market and a l l o w o u r Government bonds t o seek t h e i r own l e v e l , g i v i n g Europe n o t h i n g o n l y some machinery t o enable them t o w o r k o u t t h e i r own problems* You boys have a tremendous j o b on y o u r hands, and a s s t a t e d i n t h e f o r e g o i n g , o u r Government has d o l e d i t s f i n a n c e s t o t h e c i v i l i a n p o p u l a t i o n i n a way t h a t i t l o o k s l i k e CoEBiunism w i l l t a k e ehaige o f us i n t h e n e x t few y e a r s u n l e s s i t can be f o r e s t a l l e d a t a n e a r l y date* I f a t any t i m e y o u should happen t o be o n y o u r way t o A t l a n t a , o r any o f t h e o t h e r branches and come t o o u r s e c t i o n , d r o p o f f t o see u s * I oan f t promise y o u a n y t h i n g b u t a s l i c e o f good c o u n t r y hem and a hunk o f c o r n bread* 3S/0 Yourj / January 15, 19!$* M r . fern. E n s m i n g e r , P r e s i d e n t , F i r s t N a t i o n a l bank i n ^ockwood, Rockwood, Tennessee. Dear M r . I n s m i n g e ^ : On r e t u r n i n g f r o m s p e n d i n g t h e h o l i d a y s i n U t a h , I was g r a t i f i e d t o f i n d on my desk y o u r l e t t e r o f December 1 8 , w h i c h prompts me t o ask how y o u ^ t h i n k t h e Government and t h e F e d e r a l Reserve s h o u l d s t a r t the b a l l r o l l i n g toward d e f l a t i o n . I t seems t o me— and I am no w i z a r d — t h a t i t can be done by n o t r e d u c i n g t a x e s , b y p u t t i n g an end t o s u b s i d i z i n g f a r m p r o d u c t s , by d r a s t i c a l l y c u t t i n g m i l i t a r y e x p e n d i t u r e s , b y : s h a r p l y , r e s t r i c t i n g c r e d i t f o r v e t e r a n s and o t h e r s , p a r t i c u l a r l y on h o u s i n g , , b y w i t h d r a w i n g s u p p o r t f r o m t h e Government bond market so t h a t Government s e c u r i t i e s w i l l be l e f t t o seek t h e i r own l e v e l s , a& w e l l ; a s b y g r e a t l y r e d u c i n g o r d i s c a r d i n g t h e European r e c o v e r y p r o g r a m . Quite seriously, I wbhdering-::itfr§ttiiir you f a v o r any o r a l l of th^se steps. I n any c a s e , I want t o r e c i p r o c a t e most y o u r compliments o f t h e Season. Sincerely your < M. S. E c c l e s , Chairman. ET;b heartily
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