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HARRY WELLS INDUSTRIAL REFINANCING CORPORATE REORGANIZATIONS C O N SO L I DAT I O N S MERGERS • 154 BROADWAY, S P R I N G F I E L D , MASS. TJec . it sr 28, 1938, Honorable M, 8. Eccles, Chaim Federal Reserve Board, bon D*C. Pleas* •J t rne to express my admiration- for your easterly r 1 to Senator Pyrd, rearing I "tl • . oember 26th, former banker myself, and a victim of the results of "bank loan liquidation, through depc ' r j .';" cancellation, your accurate analysis is indeed refreshi •.,, especially in the present days of muddled thinking. The effect of bank loans to the collective purchasing er of the Nation , unfortunately is rot understood, even by the great majority of th ve control of it. The substitution of Government debt, for our liquidated private debt, in almost exact amount, ^vith its resultant deposit or purchasing power creation, offsetting the 1929/33 cancell^ tinn , has? alone prevented wholesale ruin. In the manufacture of purchasing power through . -te bank debt creation, always uncontrolled, and at a profit, the higher the interest burden , the happier are its creators, entirely oblivious to the inevitable results. This is rugged individualism, and of course sound and proper, but en the same identical thing is done by Government, "but under control and at low cost, for constructive purposes, th? cry of inflation and debt burden is raised; T sincerely wish that your reply could be printed and p.snt to the financial institutions of this country. They are i^ dire need of education as well a? supervision. Respectfully yours, . o January 4, 1939. Mr. Harry i/H 154 Broadway, Springfield, Massachusetts* Dear Mr. *teils: This is to thanK you for your letter* of December k.8th with reference to my recent reply to Senator byrd. Ydur letter and comments were particularly interesting to" me because of your experience as a banker. I wanted you^o know that I appreciated your interest and your tnoughtfumess in writing to me. Sincerely yours, , 5. Eccles, Chairman. ET:b in Ice o
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