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February 23, I I I

Chairman Eccles
L. M. Piser

Memorandum from National City Bank of

The memorandum sent to you by Mr. George Buffington in
general deals with very familiar subjects• You might be interested,
however, in a quotation from the study, which seems to indicate a
growing realization that interest rates will not be permitted to
increase substantially in the post-war period. At the end of the
memorandum, the statement is made that llthe Government will undoubtedly continue to have a vital concern in the level of interest
rates for some time to come. There has been no official statement
of policy in this respect but the following quotation of Mr. Bellfs
certainly reflects his own thinking on the subject:

1 think it can be fairly said of the United States, as
the late Chancellor of the Exchequer, Sir Kingsley Wood, recently
said of Great Britain, that n . • • we have revolutionized public
opinion as to what are fair rates for Government war borrowing.11
I believe that this revolution in opinion has a sound basis in
underlying economic realities, and is applicable to the coming
times of peace also. I hope that the policies of the Government
will be directed to this end.flf
Is there anything further that you wish me to do in this