View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BOARD
WASHINGTON
OFFICE OF THE GOVERNOR

March 11, 1955.

MEMORANDUM:
TOFROM-

The President
Governor Eccles

Supplementing the memorandum which I discussed and left
with you Saturday, March 9th, relative to using the #4,000,000,000
relief fund, I respectfully submit the following:
I suggest that that be increased by $675,000,000, the amount
of bonds — #600,000,000 of Consols and about #75,000,000 of Panama
bonds — which the Treasury on March 11th, 1935, is calling for
redemption on July 1st, 1935, use^ the gold profit in the Treasury to
pay for these bonds. This will reduce the National debt by that
amount, hence the justification for the increase of the authorization
from #4,000,000,000 to #4,675,000,000j the $675,000,000, to be added
to the $900,000,000 proposed for public works in my memorandum, would
thus increase the public works fund to #1,575,000,000. If this
amount is adequate for public works requirements the billion dollars
could then be used for the housicg subsidy.

If it is not adequate,

such portion of the #1,000,000,000 allocated to the relief administration as may be required could supplement the public works funds.
With the revival of employment created by the use of ftinds as outlined
in my memorandum there would,no doubt, be sufficient of the #1,000,000,000
relief funds remaining to take care of the relief load until Congress




Memorandum to the President,

meets next year,