Full text of William McChesney Martin, Jr., Papers : Correspondence. Personal Letters Filed Alphabetically, General Correspondence Copies of Replies from Martin : 1957-1959, Box 24, Folder 10

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HARRY FLOOD BYRD, VA., CHAIRMAN
ROBERT S. KERR, OKLA.
J. ALLEN FREAR, JR., DEL.
RUSSELL B. LONG, LA.
GEORGE A. SMATHERS, FLA.
CLINTON P. ANDERSON, N. MEX.
PAUL H. DOUGLAS, ILL.
ALBERT GORE, TENN.

EDWARD MARTIN, i .
JOHN J. WILLIAMS, DEL.
RALPH E. FLANDERS, VT.
GEORGE W. MALONE, NEV.
FRANK CARLSON, KANS.
WALLACE F. BENNETT, UTAH
WILLIAM E. JENNER, IND.

ELIZABETH E. SPRINGER, CHIEF CLERK

Senate
COMMITTEE ON FINANCE

April 23, 1958

The Honorable Wm. McC. Martin, Jr.
Chairman, Board of Governors
Federal Reserve System
Washington, D. C.
Dear Bill:
Thanks very much for the copy of the Forty-Fourth
Annual Report which reached my desk today. I know I
will find it very useful.
I will be leaving in a minute to hear you and Senator Kerr. I wish the rules of the Committee permitted
me to get in and try to halp you, but I realize that
you can take care of youjself .
Kindest personal regard

Wallace F. Bennett
WFB : J

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April 28, 19SS.
Dear Doctor Pick:
Thank you Cor your nice letter
of April 23 aad I wanted you to kaou
I appreciate your kind comments.
With all good wishes,
Sincerely yours,

Wra. McC. Martin, Jr.

Dr. Franz Pick,
Publisher,
Pick's World Currency Report,
75 west Street,
Mew "fork 6, Hew Tork.

FRANZ PICK
PUBLISHER

A
• I 90
-rXpIlL^O,

1 QRO
IfUO

TELEPHONE WH 4 - 5 9 6 0
CABLES: P1CKREPORT

The Honorable
William McChesney Martin
Chairman of the Board of Governors
Federal Reserve System
Federal Reserve Bank
Washington, D. C.
Dear Mr. Chairman:
Will you permit me to tell you that I admired your
testimony before the Senate Finance Committee on April 22nd.
Your courage and cold analysis of the problem is
a distinguished service to the country.
With kindest personal regards, I remain
Very respectfully yours,

FPigem

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Dr. Franz Pick

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Dear Bill:
Many thanks lor sending me the
Journal of Commerce editorial.

It is

nice to have it.
With ail good wishes,
Sincerely yours,
Bill
Wm. McC. Martin, Jr.

Mr. William Blum,
Blum, 1 indscy It Powell*
1741 K Street, N. W»,
Washington 6, D, C.

This article is protected by copyright and has been removed.
Article Title:

The Price of Stability

Journal Title:

Journal of Commerce and Commercial

Date:

August 16, 1957

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September 10, 1957.

On my return from a short vacation
I find yomr nice letter of August 20 and appreciate very much your kind comments and your
thoughtfulness in taking the trouble to write.
I do indeed remember Abbot MUU1
introducing us last Spring and 1 will hope to
have the pleasure of seeing you again some time.
I will pass along your regards to Abbot.
With all good wishes,
Sincerely yours,
08) 7k.
Was. McC. Martin, Jr.

Mr. C. Rodgers Burgin,
President,
The H ew England Trust Company,
Boston* Massachusetts.

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Mr. C* Eodgers Burgin,
Pleasant Point,
Kaox County,
Maine.
Dear Mr. Burgin:
In Mr. Martin's absence from the office,
1 wish to acknowledge aa4 thank you for your
letter ol August 28 to him.
Ua recess erf the Senate Finance Committee
hearings Mr. Martin left on a short vacation, but
I am sure he wiil remember having met you and
will be pleased to have ycmr letter.

(Miss) Margaret Muehihaus,
Secretary to Mr. Martin.

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Mr. Martin

Mr. Cleckler is a Bank appointed
director at Birmingham.

September 10, 1957.
Pear M*. Cleckler:
On my return from a short vacation
I find your nice letter of August 20 and very much
appreciate your kind comments. Coming from one
who is serving with me in the System they are
especially rewarding. Thank yon for taking the
trouble to write.
With all good wishes.
Sincerely yours.

Win. McC. Martin, Jr.

Mr. Robert M. Cleckler.
President,
First National Bank of Childersfcmrg,
Chiidersburg, Alabama.

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Mr. Robert M. decider,
President,
First National Bank of Childersburg,
Childersburg, Alabama.
Dear Mr. Cleckler:
in Mr. Martin's absence from the
office, I wish to acknowledge receipt of your
letter of August 20. Ca recess of the Senate
Finance Committee hearings Mr. Martin left
for a short vacation hut I know he will he
pleased to see your letter on his re term.

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Sincerely yours,

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

ROBERT M. CLECKLER
PRESIDENT

AUQUSt

20,

1957

Mr. William McChesney Martin, Jr., Chairman
Board of Governors of the Federal Reserve System
Washington , D. C.
Dear Mr, Martin:
Your statement before the U. S. Senate Committee on
Finance on August 13, 1957, was most impressive and I
should like to take this opportunity to congratulate you
on the courageous and forthright stand taken by the System.
Many important decisions have been made by you and the Federal Reserve Board in the past and our Country needs sound and
mature leaders such as you.
I am sure my feelings are also
those of others who serve with you in some capacity in the
Federal Reserve System.
With all good wishes.
Very truly yours,

Robert M. Cleckler
President

RMC:s

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Airmail

August 13, If57.

Dear Kim:
With the thought that you may
be interested in seeing it, I am enclosing a
copy of my statement today before the Finance
Committee of the United States Senate. This
committee is currently holding hearings on
the financial conditions of the United States
and i expect that my testimony will continue
for quite a few more days.

Wen. McC. Martin, Jr.
Enclosure

The Honorable Cameron F. Cobbold,
Governor,
The Bank of England,
London,

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September 10, 1957.

D«ar Phil:
On my return from a short vacation
I was pleased to find your nice letter of August 21.
I always, appreciate your thoughtful comments and
appreciate your taking the trouble to write.
I understand that my secretary
mailed you a copy of our answers to the Byrd
Committee, requested in your note of the third.
With all good wishes,
Sincerely your3,

Mr, Philip Cortney,
Coty,

423 West S5th Street,
*few York 19, Hew York.

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September 4, 1957.
Mr. Philip Cortneyv
Coty,

423 West 55th Street,
fi*w York 19, New York.
Dear Mr. Cortsey:
Mr. Martin will retura to the
office some time next week, but in the meantime
I am sending along the answers to Senator Byrd's
questions requested in your letter of yesterday.

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Sincerely yours.

(Miss) Margaret Muehihaus,
Secretary to Mr. Martin .

E X E C U T I V E A N D SALES

F J F T H A V E N U E SALON

OFFICES
4-23 WEST 55™ STREET

ROCKEFELLER CENTER

JVew

N E W YORK I9.N.Y.
COLUMBUS 5-5IOO

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CIRCLE

f/or/L,
6-5965

Septembers, 1957

Mr. William McChesney Martin, Jr.
Federal Reserve Board
Washington, D.C.
Dear Bill:
I would appreciate it if you will send me a copy
of your written answer to Senator Byrd's questions about
which there is a short report in the "New York Times" of
this morning.
Since

Philip ^-ortney : if

Mr. Philip Corteey,
Coty,
423 West 55th Street,
Hew York 19, Hew Tork.

la Mr. Martin's absence from the
office, 1 wish to acknowledge receipt of your
letter of August 21 to him. On recess of the
Senate Finance Committee hearings, Mr. Mar tin
left for a short vacation but I kuovt he will be
pleased to see your letter on his return.
As you requested, I am sending
along the complete text of his statement before
the Committee.

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(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

E X E C U T I V E A N D SALES

F I F T H A V E N U E SALON

OFFICES

ROCKEFELLER CENTER

423 WEST 55T.H STREET

JVeew

N E W YORK I9,N.Y.
COLUMBUS 5-5100

CIRCLE

6-5965

August 21, 1957

Mr. William McC. Martin, Jr., Chairman
Board of Governors
Federal Reserve System
Washington, D. C.
Dear Bill;
After having read in the " Wall Street Journal" an abridged version of your
statement made before the Finance Committee, I intended to write you to be good
enough and send me the complete statement.
You deserve to be commended because not only is it one of the best pieces
of writing on the battle against inflation, but it is so clearly written that anyone,
educated or not, ought to be able to understand what you are talking about.
You deserve to be commended even more for your great character and courage.
As Maurice Frere told me once, the head of a central bank has sometimes to be a hero
to resist the pressures from the politicians. By the way, this is precisely the reason
why I am against the right of central banks to monetize government debt. However,
if Congress had only twenty men of your calibre and character I might even accept
what is known as management of money. Be it said in passing, I have nothing against
management of money because it has always been managed. What I am against is
the right of the central banks to monetize government debt.
With kindest regards, I am,

Yours sir/cerely,

Philip Cortney : if

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August i9* 1957.
Dear Phil:
Many thanks for your nice letter
of August 8 enclosing your letter to Senator
Byrd. I am very glad to have this and
appreciate your sending it.
I am enclosing a copy of my
statement before the Senate Finance
Committee as it might prove of interest
t© you.

(Signed) Bill
Wm. MeC. Martin. Jr,

14*. Philip Cortoey,
423 West 55th Street,
New York 1$, Hew York.

E X E C U T I V E A N D SALES

F I F T H A V E N U E SALON

OFFICES

ROCKEFELLER CENTER

4-23 WEST 55T.H STREET

f/o

N E W Y O R K I9,N.Y.
CIRCLE

C O l - U M B U S 5-51OO

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B-S96S

August 8, 1957

Mr. William McChesney Martin, Jr.
2861 Woodland Drive
Washington 8, D. C.
Dear Bill:
I thought you might be interested in the enclosed letter
addressed to Senator Byrd.
With kindest regards, I am
Sincerely yours,

Philip Cortneyrmrc
encl.

August 6, 1957

The Honorable Harry Flood Byrd
The Shorehara
Washington, O.C.
Dear Senator
You ore aware, I believe, of my admiration for you which I have expressed
publicly a few times. As I am disturbed by the trend ond confusion of the present
discussions on infiotion I am taking the liberty of writing to you with the hope that
what I hove to soy will interest you.
I wish first to recall a few remarks on inflation which seem to me valid:
1. Inflation is primarily a monetary phenomenon. It can be generated either by the
increase in the quantity of money or by the increase in the velocity of money. The
velocity of money may increase if "idle balances" held by persons or institutions ore
being spent, or if the bonks are liquidating government bonds in order to make loans.
2. We can have monetary and credit inflation without on increase in prices. A
typical example is what happened in the 1920's.
3. Interest casts, just like wages and taxes, may influence the trend of prices in general
or of some prices* increases in wages may increase prices and may at times create
unemployment. A ease in point is what happened in 1937 despite very low monetary
rates. An increase in interest rates, while it may contribute to en increase in the cost
of goods, is primarily a deflationary force for the following reasons:
(a) Mony long term investments become unprofitable. (Building of houses, plants
and equipment.
(b) An increase in interest fates lowers asset values, which mans thot It discourages
speculation (and also consumption) and induces people to hold larger idle balances"

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which means a decrease in the velocity of money. A constant Increase
of security prices and of durable goods fosters inflation because it prompts
people to use their "idle balances" to the utmost.
There is a serious question in my mind whether what appears to be the ineffectiveness
of interest rates to prevent rises in prices is not due to the fact that we seem to have been
trying a policy of high rates with an unlimited supply of money. Before World War I the
expansion of the supply of money was controlled mainly by the limitation of the issuance
of bank notes.
As you know, in Great Britain before 1914 all currency had to be covered 100%
by gold. Some European central banks were permitted to issue currency against a coverage
of 33% in gold and the balance in commercial bills, but not government bills. In our
own country, when the Federal Reserve System was established it provided that the bank
notes ore to be covered by 40% gold and the balance by commercial bills and not
government securities. It seems to me that the main reason why the monetary weapon seems
to have lost its effectiveness lies in the fact that the Federal Reserve Banks are allowed to
monetize government debt, and particularly because we have departed from the provision
that bank notes should be covered by 40% in gold and the balance in commercial bills.
I am not opposed to the Federal Reserve Bank holding a limited amount of government
bonds for so-called open market operations, but our monetary system has developed into
a streamlined sophisticated inflation engine, the more dangerous as most of the people don't
understand how it works.

***
Most of the people have come to believe that we are witnessing a new kind of
inflation due to some strange new forces or causes. The truth is that we are simply
foolishly repeating - mutatis mutandi - what we did in the 1920's.
t

I am sending you enclosed a small article on inflation in which I quote a few
excerpts from articles written by Arnold G. Dana between December 15th, 1928 and
August 3rd, 1929, and which were published at that time in the "Commercial and
Financial Chronicle". I believe that you will be as startled as 1 was when you read
them because they prove that to a clear-minded analyst and thinker the process of
inflation in the 1920's was no mystery. If you have time you could perhaps not use it
better than to read these articles which were reprinted in a book called "Prosperity
Problems", New Haven, 1931, which you can find at the Congressional Library.
Here is how Arnold G. Dana defined inflation:
"Inflation is not a race between mounting wages and prices, since prices
may for a considerable time have little or nothing to do with it. It is
rather a cancerous business growth marked by speculation and extravagance,
either general or 'specialized* in its workings, and both fed by, and itself

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"cultivating, an ever-widening circle of artificial purchasing power,
such as abnormal amounts of borrowed money, increasing wages and
profits, security issues/ etc. One form begets another, this a third,
and so on around and around, swelling, either slowly or rapidly/ the
volume of business by on overgrowth of healthy or other eel 1$.H

I am sending you also an article which I have written for o British magazine,
the subject of which is Restoration of Monetary Order. Together with It frou will find
also a letter written to a well-known economist in Washington which put an end to on
exchange of letters I had with him regarding this same article*
With kindest regards, I beg to remain,
Yours very sincerely,

Philip Cortney : if
Encls.

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ON INFLATION

The discussions around inflation get more and more confused. Some people oversimplify the issue. Some others speak of "new forces" to explain the most recent rise in prices.
Is anyone den/ing that the col lapse of 1929 was also due to inflation despite the fact that we
did not then have a rise In prices for seven or eight years before the collapse? The written
testimony of an able and intelligent witness of the 1920's will convince anyone, I hope, that
the present situation has many similarities with that In the 1920's. The main causes of the
present inflation are - mutatis mutondi - the same as In the 1920's, namely, abuses of money
and credit expansion, and wages.
My star witness is Arnold G. Dana. Starting December 15th, 1928, and ending August
3rd, 1929, he wrote a series of eight articles which appeared in the "Commercial and Fhoncial
Chronicle". He denounced the then prevailing policies, demonstrated without any "IPs" or
"but's" that what was going on was not prosperity but sham, and that me end of the "wholesale
debauchery" would be a collapse of the economy and of the stock exchange. The kind of Inflation we had then he called "pernicious11 or "progressive" inflation which he defined as
follows:

"Pernicious inflation is a persistent upward rush of popular buying and spending *
the luxury loving child of some unusual flush of business and extravagant
expectations, kept alive and growing rapidly on an increasing diet of what
may be called 'artificial buying power1."
"This artificially-created buying power includes, as might be supposed, in larger
and larger volume such items as the following: (1) Repeated and widespread wage
increases, regardless of any proportionate increase in individual output (as for years
past in our building construction trades and for bakers, barbers, electric railway men,
longshoremen, etc.); (2) exceptionally large additions to bank and other credits;
(3) bank deposits in abnormally rapid turnover (by bank checks)1 (4) a huge outpouring
of such obligations as real estate mortgages, municipal securities, and usually corporation
bonds; (S) dividends and profits swollen by inflationary business; (6) stock issues of
inflationary origin, of late an important source of funds; (7) and often (as now)
huge profits from 'bull1 speculation; and also (8) if conditions of supply and demand
require, rising prices and fiduciary note issues." Dona explains that prices may not
rise because either supplies have been ample or higher prices were not required to
make the inflation effective in other directions*
"This inflation Is a 'runaway* because, the buying and borrowing keep industry
On particular the favored luxury and related Industries) more or less crowded with
orders; while industry and capital In their turn spur on the popular buying and spend*
ing by such means as unusually liberal loans and Instalment sales, the expansion of
wage scales, alluring advertising, spectacular speculation which inflames the popular
mind with the sight of rising market values, and otherwise. Thus labor and capital
egg each other on, perpetuating and quickening the runaway,1*
"Inflation may intoxicate directly either an entire country or a substantial share of
a nation's business and personnel - if the latter, the minority may profit to the disadvantage of the rest of the community and render Its living more difficult, though

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to some extent ameliorating the general position through tending to bring
full-time employment to all. Inflation also tends to overstep the lines in which
It starts, and becomes general •"
i wish i could quote ever/ word In these eight articles, but let me make a few other pertinent quotations relative to the present situation and debates
"For seven years past the Federal Administration at Washington has consistently
endorsed the genuineness of our so-called 'prosperity' and the wisdom of promoting
it by a policy of 'high wages', meaning nothing else, it seems, than indefinitely
higher and higher wages for those in the favored industries, at if this process were
not in itself a Veductio ad absurdum' * most unfair to other workers and certain to
end lamentably."
"The existing boom owes Its life In the first instance in large measure to the buying
power with which labor came out of the war and to the subsequent addition to wages.
As beneficiary in this manner, labor has also assumed with general approval a leading role as borrower In this progressive Inflation,"
"But the most remarkable fact of all is that where the wage earner has been most
conservative - in his saving and his provision for life insurance - there he hat
been providing vast sums for inflationary expansion, for to a large extent have not
hit own premiums and savings bank deposits been handed back and almost forced
upon him by way of building loam?11
Arnold G. Dana restated his understanding of pernicious inflation in the following manner
which I submit explains very well what Is going on under our own eyesi
"Inflation is not a race between mounting wages and prices, since prices may
for a considerable time have little or nothing to do with It* It Is rather a
cancerous business growth marked by speculation and extravagance, either
general or 'specialized' In its workings, and both fed by, and Itself cultivating,
an ever-widening circle of artificial purchasing power, such as abnormal amounts
of borrowed money, Increasing wages and profits, security issues, etc. One form
begets another, this a third, and so on around and around, swelling, either slowly
or rapidly, the volume of business by an overgrowth of healthy or other ceils."
It has always seemed strange to me that while so many inept and prejudiced explanations
of the 1929 depression ore being published to this very day no one in or out of the academic
profession ever mentions the articles written by Dana which are In my opinion the most cogent
document published on the causes of the 1929 depression. It should be noticed that Dona explained the anatomy of the coming crash not after it happened but before its occurrence.

Philip Corrneysmrc
8/1/57

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August 13,
Airmail

Dear Jim:
I am enclosing a copy of a statement
I presented this morning to the Senate Finance
Committee, in which you may be interested. A*
you probably know, this Committee is currently
holding hearings on the financial condition of the
United St&tes and it is expected that my testimony
wilt continue for quite a few more days.

Sincerely yours,

Wnu McC. Martin, Jr.
Enclosure

The Honorable J. E. Coyne,
Governor,
Bank of Canada,

Ottawa, Ontario,
Canada.

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August 19. 1957.

Dear Gordon:
Thank you for your nice letter
of August 14 and it i* indeed a pleasure to
hear from you. 1 appreciate your comments,
your taking the trouble to write, and your
continued friendship.
Witli mil good wishes.
Sincerely yours,
3d) Bill
McC, Martin. Jr.

Mr. Gordon B. Crary,
&23 South Spring Street,
JLos Angeles 14, California,

GORDON B.GRARY
623 SOUTH SPRINO STREET
Los ANGELES 14

August 14, 1957

Mr. Wm. McC. Martin, Jr.
Board of Governors
Federal Reserve System
Washington, D. C.
Dear Bill:
I had the pleasure again of reading in U. S. News
your comments with regard to money matters. I am certainly
for them. I know what you are driving at, and what your
effort is, and hope you are successful.
You will be from the financial end of it, but it
seems to me there are other factors, such as the power of
the labor leaders, granted them by not making them subject to
the anti-trust laws, that puts them in a position to create
situations with the raising of wages and raising of prices, to
start that circle that never ends.
Just thought I would drop you a note to say hello,
and tell you how much I appreciate what you are trying to do
for all of us.
Kindest regards,

GBC/cc

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September 11, 1957.
Dear Chester:
How nice to hear from you and know
that you retain your interest im banking
problems.
I have seen Bob Hill on two or three
occasions and agree with you it is wonder*
ful to see such a Cine fellow become an
ambassador so early.
I do hope I will have a chance to
visit with you one of these days.
With all good wishes.
Sincerely yours,

Wro. McC, Martin, Jr.

. Chester R. Dewey,
Ferris, Hughes, Dor ranee It Qrobea,
First national Bank Building,
Utica 2, New York.

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FERRIS, HUGHES, DORRANCE a

GROBEN

A T T O R N E Y S AT LAW
FIRST NATIONAL BANK BUILDING

T. H A R V E Y FERRIS

U T I C A 2, N. Y.

CHESTER R, DEWEY
GILBERT R. H U G H E S
WILLIAM F. NEWTON
HENRY T. D O R R A N C E
ROBERT GROBEN
J O H N M. L I D D Y
RUSSELL G. DUN MO RE, JR.
DAVID B. LISLE, JR.
JOSEPH J. CARDAMONE, JR.
JAMES H . G I L R O Y . J R .
STANLEY K O W A L . J R .
JOSEPH L. FEY

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Septeinoer 9, 1957
Mr. William McChesney Martin, Jr.
Federal Reserve Board
Washington, D. C.
My dear Mr. Martin:
Although it is more than three years since I
have been retired from the Grace Bank, I still read the
American Banker every day. I have followed with the
greatest of interest your testimony before the Legislative
Committee and am writing merely to let you know that I am
delighted with the firm, uncompromising position which you
have taken. Also, I approve without any reservation the
policy which the Board has been following with reference to
the threat of inflation.
Incidentally, at long last, I am glad to see the
savers of this country get a break. I never could understand
the legislative tenderness toward the borrowers, especially
since statistics show that there are about seven or eight
times as many savers as borrowers.
I am glad to see that our mutual friend, Bob Hill,
is climbing the ladder so steadily.
Sincerely,

CRD/HJR

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September 10, 1957,
Dear Stanley:
On my return from vacation
I was pleased to find your nice letter of
August 26 and am sorry i missed you the
day you were up at the Senate Finance
Committee hearing.
Shel wrote to me recently
and I was pleased to learn of his new
position. He is indeed a fine person.
It is good to hear from you
and perhaps the next time you are ia
Washington I will have an opportunity to
see you.
With all good wishes,
Sincerely yours,

Wm. McC. Martin, Jr.
Mr. Stanley Draper,
Managing Director,
Oklahoma City Chamber of Commerce,
Oklahoma City, Gklahacria.

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Dear Mr. Drapers
As Mr. Martin is oat of the
office on a short vacation I wanted to
acknowledge receipt of your letter of
August 26 to him. I know he will be
pleased to see your letter on his return,
Sincerely yours,

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

Mr. Stanley Draper,
Managing Director,
Oklahoma City Chamber of Commerce,
Oklahoma City, Oklahoma.

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OKLAHOMA CITY CHAMBER or COMMERCE

OFFICE OF THE M A N A G I N G DIRECTOR

August 26, 1957
VIA AIR MAIL

Dear Bill:
While in Washington for a few days recently I had the interesting privilege of attending hearings of the Senate Finance
Committee when you were testifying. I was greatly impressed
with your testimony and enjoyed the hearings very much.
I was hoping that an opportunity would present itself for
me to shake hands with you and extend greetings from your
friends in Oklahoma City, especially our mutual friend,
Shel Stirling, but recognized that you were under too
much pressure.
Shel, as you know, is now City Manager of Oklahoma City,
beginning a few weeks ago. We are very proud of Shel,
and I know you will be pleased to learn of his promotion.
Come to see us sometime.
Lncerely,

SD:jg

Mr. William M. Martin, Jr., President
The Federal Reserve Bank
Washington, D. C.

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Federal Reserve Bank of St. Louis

September 10,1957.

Dear Ben:
On return from a short vacation
I find your very nice letter of August 19,
and it is gratifying to me to have such
generous comments from one whose
views I respect so much. It is good of
you to take the trouble to write.
With ail good wishes,
Sincerely yours.

. McC. Martin, Jr.

Mr. Ben DuBois,
Secretary,
The Independent Bankers Association,
Sauk Centre, Minnesota.

Dear Mr. DuBois:
in Mr. Martin s absence from the office
I wish to acknowledge receipt of your letter of
August 19 to him.
On recess of the Senate i inane e Committee
hearings Mr. Martin left for a short vacation but
i know he will he pleased with your letter on his
return about the second week in September.

(Miss) Margaret Muehihaus,
Secretary to Mr. Martin.

Mr. Ben DuBois,
Secretary*

The Independent Bankers Association,
Sauk Centre, Minnesota.

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Federal Reserve Bank of St. Louis

R. L. M U L L I N S . PRESIDENT
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OFFICE

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SAUK CENTRE, M I N N E S O T A

August 19th, 1957

Mr. William McC. Martin, Jr., Chairman
Board of Governors
Federal Reserve Building
Washington, D. C.
Dear Mr. Chairman:
While appearing as a witness before a number of Congressional
Committees has been grueling, it has presented you with a forum for
the expression of your views. You have been a great witness. You have
shown real courage with diplomacy.
It is evident that the Chairman of the Board of Governors has a
terrific understanding of all the intricacies of our monetary system.
You are "Horatius at the bridge" and while I was dubious at the
start in your heroic efforts to stop inflation, I am now more optimistic
The singlehanded effort of the Board needs, as you have said, support of the Administration and the Congress. Your efforts may bring
forth this support.
With deep respect, I am
YouraOvery truly,

BD:f

Telephone EL 2-2270
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Federal Reserve Bank of St. Louis

Ben DuBois

Bear Clif:
Thanks for sending along a copy
of Professor Slichter's reply lo your letter to
him.

I am very glad to see his comments.
We will continue to do oar best

here.
With all good wishes.
Sincerely yours,

(Signed) Biljf
Wm. McC. Martin, Jr.

Mr. Charles C. Fichtaer,
Buffalo Chamber of Commerce.
Buffalo, Mew York.

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a memorandum

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from:

C H A R L E S

F I C H T N E R

f./4-S")

HARVARD UNIVERSITY
SUMNER H. SLIGHTER
Lamont University

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Federal Reserve Bank of St. Louis

Profff'or

229 LITTACF.R CENTER
CAMBRIDGE v-« MASSACHUSETTS

September 12, 195?

Mr. Charles C. Fichtner, Executive Vice President
Buffalo Chamber of Commerce
Buffalo, New York
Dear Mr. Fichtner:
Thank you very nra.cn for your interesting comments on
my piece on inflation in the "Thin.":ing Ahead" section of the
Harvard Business Review. T appreciate your taking tne trouble
to comment, particularly in view of the fact that I am especially
interested in the views of t r c s e who disagree w i t h me.
I read Mr. Martin's statement in the Federal Reserve
Bulletin for August and also his testimony in response to
various questions by the Senate Finance Committee. His presen
tat ion was clear and carefully thought out. Unfortunately for
Mr. Martin, the facts do not support his theory. Mr. Martin
stressed his theory that the expectation of a slow rise in prices
causes inflation to feed on i t s e l f . Mr. Martin distinguished
present inflation from earlier inflations on the ground that
earlier inflations did not have tne spiral effect of expectation.
In response to questions from the Committee, Mr. Martin said that
this expectation of continued inflation became more or less general about the turn of the year* But business men and consumers
have not been behaving since the f i r s t of the year as Mr. M a r t i n ' s
theory would require them to behave. Indeed, it was just about
the beginning of the year, when Mr. Martin said the expectation
of slowly r i t i n g prices became g e n e r a l , t r a t business shifted
from increasing inventories to reducing them. Furthermore, in
five out of the last seven /norths, new orders of manufacturers
have f a l l e n , and in June they f e l l to the lowest level since
last September. Likewise, the unfilled orders of manufacturers
have been droning ever since December, 1956. If they continue
to "?rop at the present rate for another six months, unfilled
orders will be less than they were two years ago. How does Mr.
Martin reconcile his view that the expectation of a creeping
Drice increase causes Decple to rush into goods with the rapid
drop in unfilled orders that is now going on?

Mr. Charles C. Fichtner

?ag-e 2

Mr. Martin and others have argued that tne expectation of a slow rise in prices will destroy the market for fixed
income securities, Nevertheless, the f i r s t half of 195? saw
the marketing of a record-creaking volume of corporate bonds.

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Thank you for the interesting statement of the
Buffalo Chamber of Commerce on Monopoly Power of Labor T , T r.ions".
Unfortunately, the statement does not get down to particulars
as to what should be done to check the power of trade unions.
One of the steps that Is needed, in my judgment, is r e s t r i c t i o n s
en organizational -ticketing. The legislature of the State of
New York at its last session refused to pass legislation on this
point. Another step that is needed is limiting the legal right
of unions to conscript neutrals in labor disputes. The loophole
in the Taft-Hartley Act on this point is oretty large. The most
important single step, however, is to give employers an incentive
to resist more strongly the demands of trade unions because it in
at the bargaining table that the unions exert their power. At
the present time, the government gives the employers a very strong
incentive to concede what the unions ask because the cort>crpte
income tax means that the government finances 52 per cent of any
concession that employers make. If the monopoly power of trade
Tin ions is to be substantially checked, this large subsidy which
the government now gives employers for y i e l d i n g to the demands of
unions ought to be substantially reduced. I point out the need
for reducing thie subsidy in say piece in the Harvard Business
Review.
Incidentally, you are in error when you s t a t e that my
major thesis is M that the advantages of creeping i n f l a t i o n outweigh its disadvantages". My thesis is not that creeoing i n f l a tion is an advantage. On the contrary, my tnesis is that
creeping inflation is a disadvantage, bnt that it is ? smaller
disadvantage than some of the proposals for dealing w i t h it.
In other words, it is not a state of health; it is a disease.
It is a disease, however, that is less serious than some of the
proposed remedies for it, such as direct urice and wa/re controls
or unemployment.
Sincerely yours,

On my return from a short vacation
I was pleased to find the copy of your letter
to Professor Slichter with your aice aote penned
to me. It is good to Know of your interest and
your approval of our policies and I very much
appreciate your taking the trouble to write to
Slichter and to me.

With all good wishes.
Sincerely yours*

Wm. McC. Martin, Jr.

Mr. Charles C. Fichtner,
Executive Vice President,
Buffalo Chamber of Commerce,
Buffalo. New Tork.

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Federal Reserve Bank of St. Louis

af
O f f i c e o'
EXECUTIVE VICE P R E S I D E N T

September 3, 1957

Professor Somner II. Slichter
Harvard University
Cambridge, Massachusetts
Dear Profassor Slichter:
I have read your article, "Thinking Ahead," in the
September-October 19^7 issue of the Harvard Business Review,
lour major thesis, that the advantages of creeping inflation
outweigh its disadvantages, is contrary, in my judgment, to
all lessons of historical financial experience.
Although one could point out fallacies in reasoning
throughout your article, it seems to me that William
McChesney Martin's statement to the Senate Committee, published
in the August 1957 issue of the Federal Reserve Bulletin, is
a rather complete refutation of your line of argument.
I agree with you that labor union domination of public
policy is likely to result in creeping inflation and its
concomitants of capital shortages and rising interest rates.
In that collection I append a statement of the Buffalo Chamber
of Commerce made more than five years ago which forecast the
situation now developing.

Sincerely

Charles C. Fichtner
Executive Vice President
CCF;jw
enclosure

STATEMEQL

.•' THE BUFFALO CHAMBER OF COMMEb
ON
MONOPOLY POWER OF LABOR UNIONS

We regard it as self-evident that the public interest must prevail
over every special interest, including industry and labor. The controlling
interest in every instance is that of the people of whom they both are a part.
There was a time when public interest required protection against
monopoly practices by some branches of industry. Congress provided such
protection in the form of the Sherman Anti-Trust Act later supplemented by the
Clayton Act. The Sherman Act prohibited restraint of trade and monopoly among
business and industrial enterprises. It became and remains the guardian of
competitive free enterprise, curbing the excessive concentration of economic
power.
When the Clayton Act was passed, trade unionism in the United States
was in its infancy. Congress at that time could not foresee that the same
dangers lurked behind monopoly in unions as in industry. Consequently the
Clayton Act exempted unions from the ban against monopolies.
Today we are confronted by unionism grown monopolistic. Labor
unions exercise more oppressive monopoly powers than those ever held by any
business monopoly. Labor monopoly is potentially the more dangerous because
of its legislatively and judicially created immunities. Labor leadership has
accepted greater and greater powers without comprehending its obligation to use
them for the welfare of the public which created them. With the backing of
central government, grown strong beyond the dreams and fears of the founding
fathers, Big Labor in its industry-wide bargaining practices has in recent years
repeatedly jeopardized the public safety and welfare.
If monopoly unionismT is allowed to continue its excessive demands
without regard to the economy s capacity to meet such demands, the American
economic system will have to change. That change would likely take some form of
a collectively controlled system. This is true because private saving, discouraged Jjy^ tfre Jlofia of purchasing, power under uqloP-i3OQQpoJj^ pressure for everhlgbBF^^s^will fall short of the^ynount a^pj'ogressivejeconomy needs for"~
c&pttaT~exBaAaijgn^ The s~oIe"lU^rnativT^then would be to have the government,
as in Russia, supply the necessary plant, machinery, etc. by taxation or other
means of preemption from its productive citizens. When enough of the means of
production is supplied and controlled by the government, socialization of the
economy will have approached culmination. Such investment by government will
inevitably be attended by the fixing of wages and prices and, thus, the fundamental freedoms of American society will have been lost.
It is too much to expect the heads of unions to impose restraint upon
their own monopolistic power. These leaders retain their control in direct
proportion to the short-run gains they win for their members. Under such motivation union monopoly must inevitably end in public bondage.
Our Constitution reposed in Congress the power to protect us against
the abuse of power by any special interest. It has not hesitated to protect
us against industrial monopoly. No more should Congress hold back before the
evil of union monopoly.

sd
5/16/52

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Federal Reserve Bank of St. Louis

TREASURY DEPARTMENT
WASHINGTON
June 21,

Dear Mr. Martin:
In connection with the hearings of the Senate Finance Committee,
we may want to have several witnesses testily.
Except for yourself, most of the first few will probably be
Administration officials, but we may nave a few men who specialize
in particular fields of importance, such as housing, agriculture,
municipal finance, etc. We may, at the end, have one or two witnesses
of more general experience and interests.
In a recent letter from Wilson Hardy, President of the Hardy
Trust Company, Home, Georgia, to the Secretary of the Treasury, Mr.
Hardy volunteered the name of Malcomb Bryan, President of the Atlanta
Federal Reserve Bank, as a possible witness.
Would you consider that Mr. Bryan would make a good witness?
If so, would you think he would be particularly fitted to speak
primarily on Federal Reserve matters? Would you suggest him as a
witness on the general subject of fiscal and monetary policy?
I would appreciate it if, when available, you could send me
a copy of your proposed testimony. I hope that the hearings will
give me an opportunity to see some more of you as time goes by.
With best regards.
Sincere

aylord A. Freeman, Jr.
onsultant to the Secretary
Honorable William McChesney Martin, Jr.
Chairman, Board of Governors of the
Federal Reserve System
Washington 25, D. C.

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September 12,1957.

I wanted you to know how much I
appreciate your nice letter with respect to
ray Senate Finance Committee statement.
It is thoughtful of you to write me about it.
With all good wishes.

Sincerely yours,

Wm. McC. Martin, Jr.

Mr. Frederick N. Goodrich,

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Federal Reserve Bank of St. Louis

United £totes Crust (tapng ofsleto {fork
45 W A U L S T R E E T
NEW YORK 5 , N Y .

FREDERICK

N. GOODRICH

BROAD S T R E E T

VICE PRESIDENT

LOCATION UNTIL

COMPLETION

OF NEW BUILDING AT 45

WALL STREET

September 11, 1957

Mr. William McC. Martin, Jr.,Chairman
Board of Governors of the
Federal Reserve System
Washington, D. C.
Dear Bill:
I am writing to add my word of
congratulations for your marvelously clear
statement "Winning the Battle Against
Inflation". To explain such an important
but complex subject so clearly is more
than just a notable achievement. It is
a work of art.
With my best wishes for your
continued success,
Cordially,

FNG/emc

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September id, 1957.
Bear Jim:
How nice to find your letter of
August 20 on my return from a short vacation.
i was interested to read the Ben
Davis report and appreciate your sending it
along.
it is nice to hear from you and
I hope things are going well wit& you.
With all good wishes,
Sincerely yours,

Win. McC. Martin, Jr.

Mr. James A, Healy.
Chebeague Island*

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Federal Reserve Bank of St. Louis

August 2Z, 1957.
Mr. James A. Healy,
Chebcague island,
Maine.
Dear Mr. Healy:
In Mr. Martin's absence from the office,
1 wish to acknowledge receipt of your letter
to him of August 20. On recess of the Senate
Finance Committee hearings Mr. Martin left
on a short vacation but ! know he will be
pleased to see your letter OB his return.
Sincerely yours,

J A M EB A .

H EALY

NEW Y O R K STOCK E;

11 WAbL

STREET

NEW YDRK\5. N. Y.

Chebeague Island
Maine
August 20, 1957

Hon. William McChesney Martin, Jr.
Chairman
Federal Reserve Board
Washington, D. C.
Dear Bill:Thought the first couple of paragraphs herein
might give you a smile.
I've heard a lot of expressions re the stock
market, but this is the first time I've heard of it getting
a bit of a "what-ho".
If the radio is as good as I think it is in
giving its audience a speaker's "number" I'd get real enjoyment out of seeing that fellow Kerr from Oklahoma get not a
what-ho, but a heave-ho back into private life - at least.
I trust you are keeping well in that world of
politics , so much of it the kind-that fits Dr. Gogarty's
definition, and with kind personal regards, I am

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Federal Reserve Bank of St. Louis

Sincerely
h^
•'"
James .A. Healy

This article is protected by copyright and has been removed.
Author:

Davis, Benton W.

Article Title:

A New Approach to the Stock Market

Journal Title:

Ben Davis says…

Date:

August 16, 1957

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Federal Reserve Bank of St. Louis

September 10, 1957.

Dear Walter:
On »ay return to the office from
a short vacation I was pleased to find your
letter of August 28 and appreciate your kind
remarks and your thoufhtfulness in taking
the trouble to write.

It was good to hear

from you.
With all good wishes,
Sincerely yours,

Wm. McC. Martin, Jr.

Mr. Walter B. Jacobs,
President,
The First National Bank of Shreveport,
Shreveport, Louisiana.

's o i D t s i tin

August 28, 1957
WALTER B. JACOBS
PRESIDENT

Mr. William McChesney Martin, Jr. , Chairman
Board of Governors of the Federal Reserve System
Washington, D. C.
My dear Bill:
Watrous Irons, of Dallas, sent me the statement
made by you before the Committee on Finance in the Senate
on August 13 and I think it a remarkably clear presentation
of one of the most pressing questions of today.
I have been deeply impressed with not only the
clear-cut statements that you have made to these various
committees, but your ability to discuss a question that is
usually so misunderstood in a frank and good humor manner,
and, as one of your questioners told me recently "he never
talks down to anyone".
This ability to discuss a subject that one knows
so well, but that others in many instances are not well
acquainted with at all, and make them feel that they really
know more than they do is a God-given gift. I wish I had a
little of it.
Sincert

Walter B. Jacobs

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September 10,1957.

Dear Bill:
On return from a short vacation
1 was pleased to find your nice letter of
August 20.

I appreciate your kind remarks

and your tacmghtfulness in taking the trouble
to iwrite.
With all good wishes,
Sincerely yours,

Wm, McC. Martin, Jr.

Mr. William 3. Korsvik,
Assistant Vice President,
The First National Bank of Chicago,
Chicago, Illinois.

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August 21, 1957.
. William J. Korsvik,
Assistant Vice President,
The First National Bank of Chicago*
Chicago, Illinois.
Dear Mr. Korsvik:
In Mr. Martin's absence from the office,
I wish to acknowledge receipt of your letter of
August Z® to him. OB recess of the Senate Finance
Committee hearings he left for a short vacation.
Nit I know he will he pleased to see your letter
on his return.

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Sincerely yours*

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

THE FIRST NATIONAL BANK OF CHICAGO
C l I I C A G O, IL LI N OIS

August 20, 1957

Mr. William McC. Martin, Jr.
Chairman, Board of Governors
of the Federal Reserve System
Washington 25, D. C.
Dear Mr. Martin:
Your testimony before the Congressional
Committees has been excellent. As usual, your
sincere, candid and disarmingly frank manner have
been successful.
While I am certain that most of the
public, especially those in the financial
community, share this view, too few let you know
about it. I assure you, however, that there are
many of us out here in the hinterland who have
applauded your performance.
Sincere-^ yours

x William J. Korsvik
Assistant Vice President
WJK:nl

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September 10, 1957.

OB my return from a short vacation
I was very pleased to find your nice letter of
August 19.
it is very thoughtful of you to write
and your kind comments are gratifying to me.

Mr. J. W. Marriott,
5161 River Road, H.W.,
Washington, D.C.

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August 21. 1957.
Dear Mr.Marriott:
In Mr. Martin's absence from the office,
I wish to acknowledge receipt of your letter to
him of August 19. On recesss of the Senate Finance
Committee hearings Mr. Martin left for a short
vacation* but I know he will be pleased to have
your letter on his return.
Sincerely yours,

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

Mr. William Marriott,
c/o The Anchorage,
Mirror Lake, Hew Hampshire.

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THE ANCHORAGE
MIRROR LAKE, NEW HAMPSHIRE

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September 12, 1957,

The Honorable Edward Martin,
United States Senate,
Washington 25, D.C.
Dear Senator Martin:
On my return to the office from a brief
vacation I received your nice letter of August 21
and appreciate very much your taking the trouble
to write.
You were most helpful and constructive
during the time I was before the Senate Finance
Committee and I was glad if I could be of some
assistance.
With all good wishes,
Cordially,

(Signed) Bill 7*
Wm. McC. Martin, Jr.

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August 22,
Dear Senator Martin:
to Mr. Martin's absence from the office,
I wish to acknowledge receipt of your letter
to him of August 21. Mr. Martin is away
OB a short vacation but I know he will be
pleased to see your letter and appreciative
of your thoughtful ness in writing.
Sincerely yours,

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

The Honorable Edward Martin,
United States Senate,
Washington 25, B.C.

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GEORGE I. BLOOM
ADMINISTRATIVE ASSISTANT

MRS. LUELLA M. BOESCHEN
SECRETARY

WASHINGTON, D. C.

August 21, 1957

My dear Chairman:
I want you to know how greatly I
appreciate your testifying before the Finance
Committee. You gave us a fund of information
that will be very helpful in forming our conclusions.
You were a wonderful witness and
have made a real contribution. I hope what you
have said may be studied by a great many
Americans.
We were very sorry that you were
held so long on Monday afternoon.
With kind, personal regards and
again thanking you, believe me
Very sincerely,

EDWARD MARTIN
Mr. William McC. Martin, Jr.
Chairman, Federal Reserve System
Board of Governors
Federal Reserve Building
Washington, D. C.

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Dear Vince:
On my return from a short vacation
it was good to find your nice letter of
.
August 23 and enclosed editorial. I very
much appreciate your kind comments
aad it was thoughtful of you to take the
trouble to write.
With all good wishes,
Sincerely yours,

Wm. McC. Martin, Jr.

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Dear Mr. O*NeiU:
As Mr. Martin is out of the office
on a short vacation, I wish to acknowledge
receipt of your letter of August 23 to him.
I know he will be pleased to see it on his
return.
Sincerely yours,

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

H I LTO N

FIFTH

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HOTEL

AVENUE

AT F I F T Y - N I N T H

S T R E E T - NEW

YORK 19, N. Y.

INFLATION AND APPEASEMENT
The Senate Finance Committee, j
which has been conducting hearings
for several weeks on the subject of
inflation, has recessed. The inquiry
is to be resumed, but not in the near
future. Thus far it has confined its
questioning to Administration officials.
It is too early to appraise intelligently the over-all results achieved
by the committee to date. „ Generally
speaking, the only testimony generally available in full is in the prepared statements of the principal
witnesses. The last of those was the
introductory statement of William
McChesney Martin Jr., Chairman of
the Board of Governors of the Federal Reserve System.
Mr. Martin's opening statement, a
twenty-six-page paper, is not a "defense" of Federal Reserve policies.
Essentially it is an essay on the
basic nature of inflation, and why
inflation resembles our most unscrupulous enemies in that a policy
of appeasement is, for practical
purposes, as ineffective as a policy
of nonresistance.
There is not room here to present
all the highlights of Mr. Martin's
essay, but one key is to be found in
his observation—all too widely neglected or underestimated—that "one
of the most harmful effects of inflation stems from the expectation of
inflation."
While a price rise in itself, notes
Mr. Martin, "may cause serious dislocations and inequalities, other and
more serious effects occur if the
price rise brings with it an expectation of still other increases. Expectations clearly have a. great influence
in economic and financial decisions.
In fact, decisions to spend or invest
too much in a year's time are both
a result and a direct cause of inflation."
It is this element of "expected
inflation," Mr. Martin points out,
that renders completely invalid proposals to "appease" inflation by
holding it down t£ a walk. This is
the theory usually referred to as the
acceptance of "creeping inflation."

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Federal Reserve Bank of St. Louis

Addressing himself specifically to
the arguments of the "creeping inflationists," Mr.-Martin concludes:
"Once the assumption is made that
a gradual increase in prices is to be
expected, and this assumption becomes a part of everybody's expectations, keeping a rising price level
under control becomes incomparably
more difficult than the problem of
maintaining stability when that is
the clearly expressed goal of public
policy. Creeping inflation is neither a
rational nor a realistic alternative to
stability of the general price level."
If we could believe that this essay
of Mr. Martin's would be read by
even a small percentage of the
people of this country we would feel
for this reason alone, that the Senate
Finance* Committee's inquiry had
been worth while.

August 19,
Dear Colonel:
Thank you for your kind comments in
your note of August 16. I very much appreciate
them and your taking the trouble to write me.
With all good wishes,
Sincerely yours*

Wm. McC. Martin, Jr.

Mr. Edward J. W. FroCfite,
Dee Wall Street,
Hew York S, New York.

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Federal Reserve Bank of St. Louis

This article is protected by copyright and has been removed.
Article Title:

Outlook is ‘Good’ Reserve Head Says

Journal Title:

unknown

Date:

1957

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ONE WALL STREET
N EW

YORK 5

16 August '57

My dear Mr. Chairman:
As I_ expected - very
timely, quite reassuring, - and
most courageous.
Best -wishes.

EP:lW

Hon. William M. Martin, Chairman,
Federal Reserve Board,
Washington, D.c.

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Federal Reserve Bank of St. Louis

Mr. Martin
Doctor Reitz is Chairman of the Jacksonville
Branch.
mnm

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Federal Reserve Bank of St. Louis

Dear Doctor Eeits:
1 was very pleased on my return to
the office to find your nice letter of
August 26 and appreciate your comments
with respect to my statement before the
Senate Finance Committee.
All of us here are very appreciative
of your fine service im the System and
always welcome your comments and
suggestions.
With all good wishes*
Sincerely yours,

'•

Win. McC. Martin, Jr.

Dr. 1. Wayne Kelts,
President,

University of Florida,
Gainesville, Florida.

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Federal Reserve Bank of St. Louis

0r. J. Wayne Reita.
President,
University of Florida,
Gains* Yille, Florida.
Dear Doctor Reitz:
In Mr. Martin's absence from the
office en a short vacation, I wish to
acknowledge and thank you for your
letter to him of August 26. I know that
Mr. Martia will be pleased to see your
letter on his return.
Sincerely yours,

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin.

UNIVERSITY OF FLORIDA
GAINESVILLE

OFFICE OF THE PRESIDENT

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Federal Reserve Bank of St. Louis

August 26 .

1957

Dear Mr. Martin:
I have just read your statement of August 13 before the
Committee on Finance of the United States Senate. You are to
be congratulated on the clarity of your statement and the excellent manner in which you covered the Federal Reserve structure and how the Federal Reserve System operates. More particularly I want to commend you on your analysis of the problem
of inflation, not only in this statement but in others you have
made from time to time. You occupy a position of almost overwhelming responsibility. On the basis of your actions in the
past and your current analyses, it is comforting to have you
where you are.
Keep up the good work.
Cordially yours,

lent
and Member of the Jacksonville
Branch, Federal Reserve Bank
Mr. William McChesney Martin, Jr
Chairman
Board of Governors
Federal Reserve System
Washington, D. C.

September 10, 1957.

Dear Oscar:

Qa my return from a short vacation
I am pleased to find yoar nice letter ol August 19.
I vcry muca appreciate your kind comments and
your thought fulness ia taking the trouble to
write.

Wai. McC. Martin, Jr.

Mr. O. W. ftexford,
Vice Presideat*
St. Louis Public Service Company,
St. LouU iO t Missouri.

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Federal Reserve Bank of St. Louis

August Z l , 1957.

Mr, O, W. Rexford,
Vice President and Operating Manager*
St, Louis Public Service Company,
St. Louis 10, Missouri.
Dear Mr. Rexford:
In Mr. Mania's absence from the office
! wish to acknowledge receipt of your letter to
hinri oC A«gv*t 19. On recess of the Seaate Finance
Committee hearing* Mr. Martin left for a short
vacation but I know he will he pleased to
your letter cm his return.

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Federal Reserve Bank of St. Louis

Sincerely yours,

(Miss) Margaret Muehlhausf
Secretary to Mr. Martin,

38fo
O. W. REXFORD

9 PARK A V E N U E

V I C E PRESIDENT
AND OPERATING MANAGER
ST. LOUIS

IO, M I S S O U R I

August 19, 1957

Dear Bill:
Having followed in detail every newspaper article I could find on
your recent testimony before the Senate Finance Committee, I just want
you to know that I think you have done and are doing one of the most outstanding jobs. You not only are completely sound in your basic monetary
and economic policies, but have the ability to express yourself in a
clear and concise manner. Furthermore, being able to remain calm and
effective as you do under harassing cross-examination is a most important
asset on which you are to be congratulated.
I have written you in the past as to how much I respect the policies
of the Federal Reserve System and the job which it is doing, but did not
feel that I had succeeded in letting you know how greatly I admire you
personally.
Keep up the good work which at times must be exceedingly trying but,
nevertheless, is right.
With all best wishes and kindest regards,
Sincerely,

OWR:jsh

Mr. William McChesney Martin, Ji
Chairman of the Board
Federal Reserve Bank
Washington, D. C.

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Federal Reserve Bank of St. Louis

September 19,195?.

Dear
It is nice to hear from you and I, too,
enjoyed our dinaer. Cynthia and I will look
.

forward to a visit with you and Dottie as in
the old days.
With all good wishes,
Smcerely yours,

Vm, McC. Martin, Jr.

Mr. James J. Saxon,
The First National Bank of Chicago,
Chicago,
Illinois.

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Federal Reserve Bank of St. Louis

TELEPHONE
FRANKLIN 2 - 6 8 O O

September 1?, 1957

Mr. William McChesney Martin, Jr.
Chairman, Board of Governors
Federal Reserve System
Constitution Avenue
Washington, D. C.
Dear Bill:
I have been reading your answers to Senator Byrd
as they have appeared in the Report for Executives.
The thirteen which I have seen constitute a remarkable
and well presented analysis. Some of the statements
contained in these answers may very likely become classics
I am writing Charley Molony to ask him to send me a complete set.
The prestige of the Fed and the general confidence
in it under your Chairmanship continue to grow. Even if
grudgingly in some cases, the courage and balance of the
Fed's performance is increasingly conceded. The wide
circulation of the answers to Byrd is going to have a
useful, even if temporary, balancing Influence.
I greatly enjoyed getting together with you at
your house for dinner recently, and I regret that I did
not have a chance to see Cynthia.
Cordially,

J. Saxon
JJS:ft

October 11,

thanks for jour encouraging
letter of October 7 and I appreciate **iy
much the help jou and the Life Insurance
Association has been giving vs is dealing
with the problems which arise *feeii inflation
gets a little bit ahead of u»,
I am keeping in touch nith
and the help ^011 are giving in connection with the survey of bxisiaess loans raade bylife insorance co^aoies is very helpful*
Witli all good wishes,
Sincerely

Urn. HcC. Martin, Jr.

Mr* Carrol M«
Life Insurartee Association
of America,
Sev Tosk 22, iew York.

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Federal Reserve Bank of St. Louis

23O

488

MICHIGAN

AV E N U E , C H ICA G O

MADISON AVENUE, NEW YORK

I, I L L .

22,N.Y.

October 1, 1957

Mr. William McC. Martin, Jr.
Chairman, Board of Governors
of the Federal Beserve System
Washington, D. C.
Dear Bill:
A few days ago, at the meeting of the Joint Committee on Economic
Policy of the American Life Convention and the Life Insurance
Association of America, the members spoke in highest terms about
the excellent statement you made recently before the Byrd Committee. Realizing that you probably hear often from your
opponents, and seldom from your friends, our Committee suggested
that I, as Chairman, write you to express our commendation of
your statement. Although it has wide circulation, we are
planning to have your statement reproduced and to send it widely
throughout the life insurance business because we believe you
have set forth clearly and concisely the basic causes of
inflation, the hardship it works, and the need to redouble our
efforts to combat it.
Our Committee agrees wholeheartedly with you that much of the
current discussion of whether inflation arises as the result of
"cost-push" or "demand-pull" involves oversimplification, and
that no matter how much "cost-push" there is, demand must exist
to keep the spiral going. In view of this, there is no question
in our minds of the vital importance of monetary policy. We also
know from our own business experience how correct you are in
stressing the fact that the demand for capital funds has been outrunning the supply of savings, and that under these circumstances
the Federal Reserve cannot permit an undue increase in the money
supply to fill the gap without bringing on ruinous inflation.
As you may know, this was the crux of several statements representatives of the life insurance business made this year before
Congressional Committees in the housing field. I was particularly
interested in the emphasis you placed upon the psychological
aspects of inflation - "expectations of continuing inflation."

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mr. William McC. Martin, Jr.
Chairman, Board of Governors
of the Federal Reserve System

October 7, 1957

- 2-

Our Committee greatly admires the courage and intellectual
integrity displayed by the Board in matters of such vital concern to the nation. If there are ways in which we can be of
help to you, we would like to have you tell us. I believe
Jim O'Leary has told you of the survey we have conducted of
business loans made by life insurance companies during the
period 1953-1956. We intend to give you the results as soon as
they are available because we think they have a bearing on questions of interest to the Board.
With best regards,

Sincerely yours,

Carrol M. Shanks, Chairman of the
Joint Committee on Economic Policy
of the American Life Convention and
the Life Insurance Association of America

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Federal Reserve Bank of St. Louis

Dear John:
It was certainly nice to see your
letter of August 19 on my return from
vacation.

I am pleased to hear you

think our policies are accepted, it has
been a difficult summer but we will continue
to do the best we cam.
With all good wishes*
Sincerely yours*

Wm. MeC. Martin, Jr.

Mr. John A. Sibley,
Chairman of the Board,
Trust Company of Georgia,
Atlanta 2, Georgia.

August 21. 1957.

Mr. John A. Sibley,
Chairman of the Board,
Trust Co-mp&ny off Georgia,
Atlanta 2, Georgia.
Dear Mr. Sibley:
On recess of the Senate Finance Committee
hearings Mr. Martin left Cor a short vacation. He
will retmrn about the «eeond week in September
an4 I know he will appreciate your letter o£

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Federal Reserve Bank of St. Louis

If.

(Miss) Margaret Muehlhaus,
Secretary to Mr.Martin.

TRUST COMPANY OF GEORGIA
M E M B E R F E D E R A L R E S E R V E SYSTEM

ATLANTA 3, GA.
J O H N A. SIBLEY
CHAIRMAN OF THE BOARD

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Federal Reserve Bank of St. Louis

August 19, 1957

Dear Bill:
You have certainly had a siege of hearings.
I believe they are all tending to establish in the public
mind the soundness and strength of your position.
I was out on the West Coast for a couple of
weeks at a meeting in the Bohemian Grove. Afterwards I
visited Los Angeles. I am both delighted and surprised
at the unanimity with which your policy is accepted.
With best regards.
Cordially yours,

Mr. Wm. McC. Martin, Jr,
Board of Governors
Federal Reserve System
Washington, D. C.

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Federal Reserve Bank of St. Louis

September 10, if 57.
Dear
How nice to fiad your letter
ol August 27 on my retura from a short
vacation. I appreciate your kind comments
and will hope to see you soon*
With all good wishes,
Sincerely yours*

Wm. McC. Martin, Jr.

Mr* Rudolf Smutny,

48 Wall Street,
Hew York 5, Hew York.

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Federal Reserve Bank of St. Louis

Mr. Rudolf Smtttny,

48 Wall Street,
Hew Tork 5, Hew York*
Pear Mr. Snautay:
In Mr. Martin's absence on a
short vacation, I wish to acknowledge receipt
of your letter of August 27 to him ,
1 am sending along a copy of his
prepared statement before the Senate Finance
Committee aad I know he will be pleased to
see your letter on his return*

(Miss) Margaret Muehlhaus,
Secretary to Mr. Martin .
Enclosure

RUDOLF SMUTISTY
48 WALL STREET
NEW YORK 5, N. Y.

August 2 7 , 1957

Dear Bill:
It certainly was heart-warming to see how well
you acquitted yourself before the Senate Finance Committee
I certainly hope you will accept my most sincere congratulations .
Would you please be kind enough to send me a
copy of your prepared statement which you presented at
the time of the Senate hearings.
Looking forward to seeing you in the near
future and again my heartiest congratulations. With
warmest personal regards.

Rudolf Smutny
Mr. William McChesney Martin
Chairman of the Board of Governors
Federal Reserve System
Constitution Avenue and 20th Street
Northwest
Washington, D. C.

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Federal Reserve Bank of St. Louis

September 30, 1957,

Dear Dud:
Tour September £6 letter is very
flattering and very much appreciated.
With all good wishes,
Sincerely yours,

WTO, McC. Martin, Jr.

Mr. Dudley Swim,

Box 1590,
Monterey, California.

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Federal Reserve Bank of St. Louis

Box 1590
Monterey, California
26 September 1957

Dear Bill:
Last month I got up one morning at 5:00
o'clock and read your statement before the
Congressional Committee0 It was a masterpiece. Until the union monopoly is broken
and wages are related to productivity on the
one hand, and on the other, colossal waste
in Government is stopped or reasonably
arrested, how can there be any hope for
stopping inflation. Of course a depression
would bring about a temporary halt»
Very forceful measures to eliminate
either of the two causes are not conspicuous
in the current highly political program of the
Eisenhower Administration.
Just hope that the present squeeze on
money rates will not prove to have been
°nly an accelerator to a general break in
business.
You are tremendously able and most
courageous —• and every success to you,
despite all the political stumbling blocks which
are bound to be thrown your way.
Best always,

Mr. William McC. Martin, Jr.
Chairman, Federal Reserve System
Washington 25, D. C.
DS:bp

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Federal Reserve Bank of St. Louis

September 10, i957.
Dear Mr. Thomas:
On ray return from a short
vacation I find your nice letter of August 28
and wanted you to know that I very much
appreciate your thoughtfulness in writing
me. It is especially gratifying coming from
one who is working with me in the System.
With all good wishes,
Sincerely yours,

M ~* •
Win. McC. Martin, Jr.

Mr. Alex R. Thomas,
Chairman,

San Antonio Branch of the Federal
Reserve Bank of Dallas,
San Antonio, Texas.

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Federal Reserve Bank of St. Louis

August 28, 1957

Mr. Wm. McC. Martin, Jr., Chairman
Board of Governors of the
Federal Reserve System
Washington, D. C.
Dear Mr. Martin:
I would like to compliment you on the very fine
statement made before the Senate Finance Committee. It is
not only very clear but presents extremely sound principles,
Sincerest regards*
Yours very truly,

Alex R. Thomas
Chairman of the Board

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Federal Reserve Bank of St. Louis

Mr. Molony

Mr. Martin wanted you to see his reply
before we send it. If it is all right with
you Mr. Martin said he would sign it.
mnm

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Federal Reserve Bank of St. Louis

August 19, 1957.
S

Dear Mr. Thompson:
I appreciate very much your
.
sending me your nice column of August 14
with respect to curbing inflation.
It is certainly thoughtful of
you to do this aad I appreciate your taking
the trouble,
With all good wishes,
Sincerely yours,

Wm. McC. Martin. Jr.
Mr. Hal Thompson,
Financial Columnist,
The Chicago American,
3Z6 W. Madison Street,
Chicago S, Illinois.

326

W. MADISON

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Federal Reserve Bank of St. Louis

ST.,

CHICAGO

1 Ht

\jH l(jAuU

A M t K1LA N

T E L E P H O N E

A N D O V E R

August I1*, 1957

Mr. William MacChesny Martin, Jr.
Chairman, Federal Reserve Board
2861 Woodland Drive
Washington, D*C,
Dear Mr. Martin:
Attached is a column of mine of today on a subject
which I know you are very much interested in now.
In my opinion it would be the height of stupidity
to cut interest rates at this time as the Senator
from Oklahoma suggested recently during a television
panel show0 I rather suspect you share this viewpoint?
Sincerely yours,

J////

Financial Colu
HT:cg

E V E N I N G

A N D

S U N D A Y

3-1234

This article is protected by copyright and has been removed.
Author:

Thompson, Hal

Article Title:

Kerr's Suggestion for Inflation Curb Challenged

Journal Title:

Chicago American

Date:

August 14, 195

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Federal Reserve Bank of St. Louis

August 20, 1957
Dear A . K . :
Thank you for sending me the
Wail Street Journal editorial which i
am glad to see. It is nice of you to
write me about it.
With all good wishes,
Sincerely yours,
(Signed) "Bill
Wm. McC. Martin, Jr.

Mr. A. K. Tigrett,
711 Fourteenth Street, N. W . .
Suite 805,

Washington 5t D.C.

August 19, 1957

Personal
Mr. William McChesney Martin
Federal Reserve Board
Washington, D.^ C.
Dear Mr. Jarfen^--I know you have seen the attached comment and I
congratulate you on being the basis for it.

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Federal Reserve Bank of St. Louis

As eyer,

A. K. Tigrett

This article is protected by copyright and has been removed.
Article Title:

The Price of Stability

Journal Title:

Journal of Commerce and Commercial

Date:

August 16, 1957

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Federal Reserve Bank of St. Louis

Bear Pollard:
t received your nice letter of
September 3 on my return from a brief vacation
and appreciate your taking the trouble to write.
It is indeed discouraging to see the
public ignorance in high and low places we are
constantly dealing with in an effort to preserve
a sound dollar. It is part of the same problem
we are tackling in the Berry Schools from a
different angle and so it is doubly pleasant to
have your assistance.

Wm, McC. Martin, Jr.
Mr. Pollard Turman,
Ju M. Tuil Metal It Supply Company»Inc.,
2SS Marietta Street, H. W . t
J», O. Box 4628,
Atlanta, Georgia.

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Federal Reserve Bank of St. Louis

'
ATLANTA

JACk JNVILLE

285 M A R I E T T A S T R E E T , N. W.

MIAMI

TAMPA

P. O. BOX 4628

ATLANTA, GEORGIA
TELEPHONE JACKSON 5-3871

September 3, 1957

Mr. William M. Martin, Jr., Chairman
Board of Governors
Federal Reserve System
Washington, D. C«
Dear Bill:
I received from the Federal Reserve Bank of Atlanta the statement
you made -August 13 before the Committee on Finance of the United States
Senate* I read it with much interest and thought it was an excellent
presentation. The August 19 issue of THE WALL STREET JOURNAL carried
an editorial adjacent to an abridged version of your statement, which
I thought was complimentary. That was gratifying to me. I hope you
saw the editorial under the heading, "Review and Outlook" August 19•
Recently I have had the feeling that people generally have had
a greater appreciation of the necessity of holding inflation in check,
and that has made me feel much better. I got that impression from several
trips I made to other cities in the South where I talked with bankers and
businessmen. However, much of my good feeling disappeared yesterday when the
young senator from Washington, whose name at the moment escapes me, was on
the program entitled "Face the Nation." He was talking about the difference
between the accomplishments of the United States and the Soviet Union in the
field of guided missiles. At the conclusion of the program one of the newspaper reporters asked him how he felt about the political situation as regards
the successful party in I960. He replied that the present administration
was not doing a good job and the people were going to elect a Democratic
president, and he cited several reasons—the first two of which were the
tight-money policy of the present administration and inflation. Others
were farm problems and foreign affairs. However, in commenting on tight
money, he said something to the effect that it was working a hardship on
everyone. Immediately after that statement he said also that something
has to be done about inflation. This showed me he did not have the first
understanding of what the so-called tight-money policy was trying to do.
The best I can do for him in my own mind is to say that his comments
were motivated by politics rather than ignorance. That's not much of a

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Federal Reserve Bank of St. Louis

Mr. William M. Martin

-2-

compliment to him.
With highest persons! regards and best wishes, I am

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Federal Reserve Bank of St. Louis

Sincerely yours,

ollard Tnrman

September 3, 1957

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Federal Reserve Bank of St. Louis

Dear Norfleet:

OB my return from a short vacation
I was pleased to find the copy of your letter to
9 Francis with your nice penned note to
Darryi

me. I wanted you to know 1 appreciate your
kind comments.
With ail good wishes,
Sincerely yours,

Wm. McC. Martin, Jr.

Mr. Norfleet Turner,
President,
The First National Bank of Memphis,
Memphis, Tennessee.

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Federal Reserve Bank of St. Louis

THE FIRST NATIONAL BANK
OF MEMPHIS

MEMPHIS, TENN.

Mr. Darryl R. Francis, Manager
Memphis Branch
Federal Reserve Bank of St. Louis
Memphis 1, Tennessee
Dear Darryl:
Your kindness la sending me a copy of Chairman Martin's
statement before the Committee OB Finance of the United
State* Senate August 13 Is very much appreciated.
It Is not only Interesting and Informative* but also clearly
reflects his sound thinking and great wisdom. I wish more
American citizens, particularly the politicians knew how
fortunate we are to have BUI Martin at the helm of the Fed*
eral Reserve.
Thanks again, Darryl, for your thoughtfulness.
Sincerely,

President

ec: Mr. William Martin, Jr.

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Federal Reserve Bank of St. Louis

August 20, 1957.
Dear Ed:
Thank you for sending me Friday*s
editorial and your and Doctor Luedicke's
regards are gratifying to me.
With ail food wishes,
Sincerely yours.

WHI, McC. Martin, Jr.

Mr. Ed Tyng.
Associate Editor,
The Journal oi Commerce,
SO Varick Street,
H«w York 13, New York,

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Federal Reserve Bank of St. Louis

WORTH 6-3OOO

xrf

t-DIYNG

SO V A R I C K S T R E E T

ASSOCIATE EDITOR

N EW Y O R K I 3 7 N . Y.

This article is protected by copyright and has been removed.
Article Title:

The Price of Stability

Journal Title:

Journal of Commerce and Commercial

Date:

August 16, 1957

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

August 14, 19§t.

Dear Eddie;
Hearty comgratulations. I think
the show went over line and both Bob Featress
and George McK limey did ft good job ol
backs topping. It seems to me it west over
very well and you couldn't have handled it

With all good wishes,
Sincerely yours,
Wra, McC. Martin, Jr.
Mr. Edw. A. Wayne,
First Vice President,
Federal Reserve Bask of Richirmad,
Richmond 13, Virginia.

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Federal Reserve Bank of St. Louis

Augo«t If, 1957,

Dear JLee:
How alee of you to wire me with respect
to nay statement before the Senate Finance
Committee, it is good to havs your commendation and I appreciate your taking the trouble
to give me your viewa.
With all good wishes,
Siacerely yours,

Wna. MeC. Martin, Jr.

Mr. A. L. M. Wiggins,
Chairman,
Atlantic Coast Line Railroad Company,

Hartsville, South Carolina.

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Federal Reserve Bank of St. Louis

'** HVA013 CAK=HARTSVILLE SOCAR

b l L L I A M MCC M A R T I N , C H A I R M A N =
BOARD OF GOVERNORS FEDERAL R?SERVE SYSTEM WASHEC
IT IS AN I N S P I R A T I O N TO ALL SOUND T H I N K I N G AMERICANS TO
HAVE YOU PRESENT TlTH SUCH C L A R I T Y , FORCEFULNESS, LOGIC,
COURAGE AND STATESMANSHIP THE F I N A N C lALJIND ECONOMIC
E nTTHIS COUNTRY AS WAS G I V E N IN YOUR PRESENTATION
TO THE SENATE COMMITTEE LAST WEEK, AT THE MOMENT IT MAY
IN THE WILDERNESS

IBUT YOU m so ETERNALLY RIGHT IN YOUR ANALYSIS THAT
•

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ONLY TIME IS.NEEDED TO CONFIRM THE jCORRECT NESS OF YOUR
VlEWS. MY.COtiCAATIItATiONS AND GOOD WISHES FOLLOW YOU=
A L M WIGGINS*

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Federal Reserve Bank of St. Louis

JOHN T. DALY

36-15 Wast Drio»
Dottgloaton 63, N. Y.

(THIS SIDE OF CARD IS FOR ADDRESS

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Federal Reserve Bank of St. Louis

Mr. John T. Daly,
36-15 W««t Drive,
Donglaston 63, New Tork.
Dear Mr. Daly:

Thank you for the copy of yotir
letter to Senator Kerr and I appreciate
yoar taking the trouble to forward it.
With all good wishes,
Sincerely yours,

Wai. UcC. Martin, Jr.

. Abraham

Mr, tfotnen
A* Chftiraan Hart in i
to aekaGfHlttii;* and think /^i* «i hi* b*l»lf for y«w letter
of September 5 *a<l the «nolc*ed B«l%iiac3r« tan clipping and
Jamnfaor report* 1 ^new -:tr. •-yurtin will be inten?8t*»a to
se® thiflt cm his r«t^m« tferhapa yoa M^r >Miwt son* interest
In the •neloead text of

?. lartin* a r«c«nt fttfttewnt to

ISigned) Chas. Molony
Char 1«*
Special Aa«i«fcA«fc to the Board.
Kraslosure
CHrcd
cc: Mis s Huehlkaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FOR FILES
N. B. Kelly

September

Hr« Haiary H* Travis,
121 Sh«ra*n Plama,
901 Sherman street,
Denver 3» Colorado.
D««r Mr. f ravist
4* Chftlrnfta Martin is teaporarll^ away, I ulsh
to acknonl«d£-e and thank yog cm his bshalf for your letter
of September 6 and the enelossd regaroduotion or pag«s from
Wr. Oarrett's book. IfcaovKr. H«r%ia will be Interested
to ee« them on his return.
Siaeerely yours,

(Signed) Chas.
Oharles
Special Assistant to the Board*

CMtcd
cc: Miss Muehlhaus

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Federal Reserve Bank of St. Louis

FOR F!LES
N. B. Kelly

, 1957*

Kr». Hofc*rt earnings,
1060 iaoral Way§
Bewly Hills, California.
Cunning**
4» Ohairnaii llartiB i» t«npor«rily ai«y, I should
to aokaowledfe;* and thank you on his behalf for your
letter of September 5. I know be will be ia&«rest«d to
eo*maents on his re torn.

JSigned^Chas. Mofony

Charles
Special Assi«tm?tfc t® the Board.

€/M?cd
ccs Hiss l^

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Sept«3fc*r 9,

fcr. Thoeas M. Orr,
orr Sera** £«ehin» Products, iae.
ureensburg,

Mr. Orr;
4s Ghalrtutn Martin i« temporarily away, I should
Ilk* to acknowlea^e and thank you on his Uthalix for your
letter of S«pt«^«r 6, I knoit h» will b« lnt«r«st«4 to
yoar corn «nta on his return.

[Signed Chas. Molony
Charles
Special Assistant %o tha Beard.
CMjod

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Federal Reserve Bank of St. Louis

FOR FILES
N. B.

Deer Mr.
4a Chairisuui Martin Is tes^orarily away, 1 should
like to acknowledge and thank you en Ms behalf for your
letter of September 3 end the enclosed copy of your booklet
*Colorfial Oaliforaia Heineef* I tamr Mr. Martin will be
interested to gee them on hie return*
Ineloeed ie the eopy you requested of the text of
Mr. Martin* e recent etelement to the Senate Fioenee Ooflsadttee.
I am also eneloeing a copy of the booklet **fhe Federal Reserve
Syetems Purposes and Functions^, and a oupy of a talk Mr.
Martin toad* in 19$6 «hie!i deole with the Federal Reserve
operations la which you expressed an interest.

{Signed) Chas. Molony

Charles
Special Assleteat to the Board.

CMscd
cc: Miss Huehlhaus

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Federal Reserve Bank of St. Louis

FOR FILES
N. B. Ke!!y

Septeafcer 5,

Mr. Herbert D. Seiberi, Editor,
Co»s«relal ami /taaneial C'-ir0niclef
25 Pwflc Place,
Hew tork, Mew iosrlc.
Sear K^. Seibwrtt
A* Chairwaa Martin is ttHiaoiwrily
closing, in aocorclano* «Lth yo^jir telegraphed rcquMt of
k9 a co^jgr of tho answers he sialaRiit^d to the
Finance G<KMit&€« in respoasa to questl-joa pro*
answers ner» gi^»a to tte Coawittee, for
its hearings record, and r leased by it rather than the
Federal Jt*»«nr*, as is cu»ta»fcr>' in hearings
Sinc«r«ly

(Signed! Chas. Molon*
Gharlt*
Special Assistant to the

CHscd

eet Mlas Huehlhaus

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Federal Reserve Bank of St. Louis

FOR FILES
N. B. Keliv

!&9* Helen Slad*,
Managing Editor,
the Analysts Journal,
1^3 East 57th Street,
Mew iorlt 25, lf«M Jtork.
Dear HIM Sl&^t
As Chairman Hurtle i» t<^^or«ril^ away, I m
er«5lofling m copy of his r«e*tfc statesaetit to the S«nate
Fiatace So^itte«, la response to yoxar letter requesting
it* 3fou ere wilcoas to use It *s /o« desire*

Eneloeyre
CMscd
cc: Miss Muehlhaus

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Federal Reserve Bank of St. Louis

FOR FILES
N. B. Kelly

Mr. f * E*
Little Hock,
Bear Hr* At <luaon:
As Chairman Hartia is temporarily a«a/f I should
to ac.>-<3tcMledg9 and 1*b*ak you -m his Mialf for your
of Aufo*t 29*
We 40 have raprlnts of tut rensrks /ou
since %lngr were, its £«ro, * e%4KNNM»nt by Kr, i-«artia
did not. specif^ th« miaber of oopi«» /ou
11 :«, but, AS you 414 «p**k ef wi»hiiig to ttput & copy
tfie ii«nd« of aar coanty ataf f members la all equities'* in
Arkansas, I &m ataglng uiadear separfi^e cover 80 copies la the
hope that ihi» mill iaee&

ir* Martin will be interested to a** jrwir
u** hia return.
SiDGwr*V youra,
(Signed); Chas.

Cimri*ga

CHtcd

cc: Miss Muehlhaua

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FOR HIES
N. B. K£;:y

Of. Donald
Wtptoa,
Gaili'ornia.

A* (Pialnsaa Martin 1« t«aporarily away, I should
like to aekaswle&g* and thank yoa on hi* b«hali* for your
l*t%«r a^td tv« sprightly item oa Hiptoii /ou **at vitli it*
I knew Mr. -tartin id.ll toa iat«r»at«<i to aee th*a on hi*

Sincwrely yours,

(Signed) Chas. Molony
•
Oharl«e Holoi^y,
Special Assi«uai:t to the Board.

CHied
oc: Miss Muehlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FOR FILES
N. B. Kelly

17,
SSJHP Sr«

11 hi te a0*3t"wl«cJEge and thank you. on Ills behalf for ^«ur
letter of Aug-.t«t 28. I kaftn IHB mil ba inmajmstad to
It em his

(Signed) Chas. Molorty
Charles

CW:cd

cct Hiss

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Federal Reserve Bank of St. Louis

FOR FILES
N. B. Kelly

Krs. ?r»da Seberg,
31*31 If. S. Sa^r Boulevard,
Portland, Or*goa.
Dear Mrs. Sebergt
As Chairman Hartin 10 on -/acation I wi^i to acknowledge
and thank you. for your letter of Aagust tS« I e«cl<»« a e^jr
of th» prepared «tateme«t which Mr. Martin presented recently
before tfte Senate Finance Co^^.tte« alnce it discusses a
ny^ber of th« points whieh you list in yoir letter.
?ery trul/ youra,
(Signed) Elliott Thurstoa

Elliott Tnuraton
Assistant to the Board.
Enclosure
ETicd
cc: Hiss itaehlhaus

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Federal Reserve Bank of St. Louis

FOR FILES
N. B.

30, 1957.

Mr. 3. ?.
Sncutivt Tl<?« J*r»*icl«nt,
Pi rat F*cteral Safingo and
Loan Association of Miami,
100 H. £.
32,

Dear Hr»
Oft to»h*J£ of Ohaia»ian Martin, i^td i* on vacation
I want to thank you for youa» letter o£ August 29* 1 kuon
that on his return !i« iiill b* gratified ay ysur

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Federal Reserve Bank of St. Louis

yours,
(S^ned) Elliott Thar
Baii^t f htarstati
Assist, Ant to the 3osro.

29,

Dr. 1. 0*
Assistant Director,
Econoati.cs ana Statistics Division,
Continental Oil Company,
F. 0. Box 2197,
Houston 1, Texas*

Dear Dr. Jaaesa

The FsesBoramtum to which you refer was an
formal one that Mr. Martin had with Ma and read into the
record, but unfortunately we do not have any copies
available* It will, however, appear of course in the
printed hearings in due course.
feaqr tru3y yours,

Elliott fhurston
Assistant to the Board.

ET:cd

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Federal Reserve Bank of St. Louis

FOR FILES
N. B.

August 29, 1957.

Mr. Lawreme L. Oellerstedt,
P. 0. Box i|8^f
Atlanta 2, Georgia.
Dear Mr. Qellerstedtt
49 Chaiman Martin is on vacation I wish to
acknowledge and thaak /on on his behalf for your letter
of August 27.

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Federal Reserve Bank of St. Louis

I know that he will very m&fa appreciate your
and encourageasat.
fery traly ,/ours,
(Signed) Elliott .Thurjston

Elliott thurston
Assistant to the Board.

August 29, 1957.

Kr. Robert ?. Skinner,
2 Congress Street,
Belfast, Maine.
Dear Mr. Skinner;
As Chairman Martin is away on vacation I should like to
acknowledge and thank /cm on his behalf for your letter of
Aogust 22.
Although Mr. Margin had left before your letter arrived,
he had, as it happened, been asked cm August 19 , at a hearing before
the Setmte
Finance Causal ttee, substantially the s@@ie question as you
poses wfehy not return to the convertible gold dollar?11
Mr» fiartin's answer to the question,
asked by Senator
w
George Malone of ^evada> was that >ie ^>ald
favor ultiinately the
1
redMoability of the
currency
in
gold,
*
but
does "not see it in the
foreseeable future11 because of "the unsettled international situation.11
Mr. Hart in farther said? "I think you have to have more
stable world conditions than you have today , and we have to be certain
that we are managing mar Monetary affairs in a way which will warrant
confidence, and I think we are making progress in that direction.91
there was, of course » a good bit mere discussion of the
subject than that, ami as it should appear in full in the transcript
of the Senate Finance Committee's "Investigation of Financial Condition
of the United States,* it might be that you would Utas to cosssunieate
with the Committee tr obtain a copy of the transcript when it is
printed.
In view of your reference to seeing an extract Iron Kr.
Martin** opening statement to the Committee on August 13, I am enclosing
a copgr ®£ && coaplete) text of the statement in the thought that it, too,
possibl y be of SOHB interest to you*

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Federal Reserve Bank of St. Louis

Sincerely yours,
^Signed) Chas. Molony
Charles
Special Assistant to the Board.

fir. Jmwn in Beebe,
State and l^cal Gowrcmtnfb Ce8Pdtte*t
Los iinge .as Chamber of
k)ii South
Lo«

>.s Chmlrtnan :^artift it absent on vacation I \dttJi
to thank you Tor /our letter of August ?7.
pleased to send, under aenar&te corer,

I am -/«ry

> copies of hie

(Signed) Elliott Thur*u>..

Elliott
Aselistant to the Board*

cot Miss Kuchlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Kr, Freci De Oolyer,
106 u»at 76th StarJet,
Sew fork 2k, 1?«w £ork.
Mr. Be 'lolyert
43 Ofialr^m 3lartia la abawnt on vacation, t wish
te ^knonl«?dgi* a^nd t^mrdr yec for jrotar l©tt«r of Auguct 26.
Althmsgjt jow a»Jr fsr n© aoknowledpiiatt, because
of yt«a» Interest I an ancle*ing a eop§r of tha prepared
•tatttaent which ftp. Martin r»res«Tit©<l before th« Senate
Finance Co«^.tt«9 htarlags. fh« spirit in ^hich yw> write
much a ;^r@ciat«d.
f*ry tiuty yours,
(Signed) E!i
Thurston
to tha

ETicd
cc: Miss Muehlhaus

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Federal Reserve Bank of St. Louis

Mr. PericUs J. Polybia*,
4 £*** 28th Street,
New York 16, Hew Tork.
Dear Mr. Polybius:
A* Mr, Mar tin is oat of the office on
a &hort vacation, I mxr* pleased to comply
with your request for a copy of his statement
before tU* Senate Finance Committee.
i know Mr. Martin will be pleased
to see your kind comments.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(Miss) Margaret Muehihaus,
Secretary to Mr. Martin.

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Federal Reserve Bank of St. Louis

August 27, 1957.

Hr. Waldo Steiner,
Paxiora,
Ohio*

49 Chaiman Martin is on vacation I wish to
acknowledge and thank ym* an his behalf for your latter
oi August 2w.
the prakleai or restraining excessive credit
expansion without precipitating a serious decline is» as
you say, terribly ooiqusz and it is true that credit and
awnetary policy alorw cannot assure a stable dollar. Mr,
Martin did r*?fer to the highly cisitroveraial subject of
t'>« vag* prise spiral in the orepared stateosnt which he
presented to tiie Senate Finance Cnan it tea as i*ell as in
answer to various questions.
Beeanse of your interest I am enclosing a copy
of Mr. rartin's prepared

(Signed) Elliott Thurston

Elliott fhurston
Assistant to ths Board*

ETtcd
cc: Hiss ^luehlhaua

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FOR FILES
N. B. Kelly

August 27,

HP. Henry 8
?k$ *M* 21
**w fork 13, $«« fork.

As Chalr:-mn Martin iv cm /acaticm I wiaft to
ami thank you oa his b«half for y&ar letter
of

23.

I knew that h« *111 T»ry wach a?Tpn*clat« yotir

Elliott Thurston
Aaaiata.it to the Board*

ITted
ccs Miss Muehlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2? ,

Mr. Cimrlaa C.
1.3S ttaatford

Mr.
As Oimlriiaa Kartia la aoss^ oa vacmtioa 1 wish
and thank joa oa Ms uelialT for /our latter

to
of

22*

M^Lle joa leuIcL aot agres with the viawa 3^7«aa
oX /our intareat 1 a*i aijalasi'r^ a copjr of tha pr»pared 9taia*3az& wKleb «ir* i.art in pr«aaatea
Senat* /inanea Co«i-.iltta« at the racant
f ary feruCly

Uliott
Aaaistant to

cc? Miss Ifuahlhaua

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Board

August, 27,

Mr. Irving E<
7to» ^aicitnfc a**i Actuary,
I'm Guardian Jult>
of
Bin lork 3, ^evi lark,
DMT Mr. &e**atluat
As Cii*irstt*a H«r%ia is

vacation 1 wiah

to Ac^oyleO^ ami thauk jou on his

far /our

of August 26*

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Federal Reserve Bank of St. Louis

In acoardaoe^ with ^o^r r«qua»t I «» •nol^slag a
of ;-ir. .^irtia*^ stattiMKiU

(Signed) EHiott

Hiss Muehlhaus

stiMvV'

»S£y
Vu

, lie*

Cviatr»«ati KarVin 10 o n vaca^Ioa I id»h to
andi thanV jrou ew his behalf for ym,r letter
of

IH» will i^iy much •pnraciafc* your

(Signed) Elliott
Slliott thurston
nt to the Board.
ETjcd
cot Miss iluehlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

August 26,

18,
Cnmiraaa
mad thank

la ^i ¥&«^ioa 1 wi«h to
lii» l^haUT fcr yowr

I know that he wiU TCTJ MI^J appreoiafc*

f «ry

/oars,

(Signed) Elliott 'fhursiou
Elliott

te the

ET:cd
cc? Hiss Muehlhaus

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Federal Reserve Bank of St. Louis

FILES
N. B. Kciiy

•
Kr* I. L. tir
W, E. Bumet 4 Co.,

11 Wall Street,
fork >, &W lark.
Hear Mr.
As Chairman Martin Is on vacation I niah to
acknowledge and tihank you cm his behalf for your latter
of August 23.
I k? on that he ulll /ery math appreciate your
and encoyragea^nt.
Very truly yours,
(Signed) Elliott Thursroa
Elliott Thur»ton

to the Board.

ETtod
cc: Hiss Muehlhaus

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Federal Reserve Bank of St. Louis

FOR FILES
. B. Kelly

ttr. C. i* Ool*naa,
Morgan 4 Coleaan,
Chattanooga 2,

As Ctiair^ftii KnrtiB ts oa VEeaiion I wlA to
«ckn0iiledig<s and thank yoa OKI his behalf for /our letter
of August 23.
X know that b» will wry auah appreciate your
combats and «i-iCOi-ra^eiaBiis.

?«ry trul/ yours,

Uliott fhurstoit
fl taat to the Board.

ET:cd
ec; Miss Muehlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

August 26, 195?.

Br. Robert 0.

Assistant iHreetor,
Scanas&es and Statistics Division,
Cootineintal oil
P. 0. Bar 2Wt
I, T«CaS.

Dear Or* Janw»s:
As Chairman Martin i« on vaem&ion 1 wiah to
acknowl«dg« your letter of Joignst tl* In aeeordane« with
your request I enclose a copy of his reeeat stateiasnt before the Senate Finaiice Committee. I rep^et that the
transcript of oral testiaony is not yet available*
?eary truly
Elliott Thurston

Enelosure
Ef«cd

eet Hiss Huehlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

August 26,

Mr. John ?*
511 Esther Street,
Vancouver, Washington.
Dear Mr.
As Ghsiraiaa Martda i* oa vacation X wish to
acknowledge and thank you for ymir letter of August 20*
I «t wart h* id.ll be intereafted to read yoar eomwatfl
when tee returns.
fbt Itell Street Journal* 9 a'crld^meat was v«ry
good but you aa^r be interest^i is seeing the entire text
of that stateaient to whieh ymi refer and accordingly I
am enclosing a eopy.

(Signed) Elliott
f hurst on
Assistajit to the Board.

gftcd
ccs Kiss Muehlaaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

F/LES :/

Mr. Harry
1 >5 last l¥ari*, Street,
Monroe, Michigan.
Dear Mr. Sesselt
Ac Chairman Martin is on vacation I itlah to
acknowledge and thank you on his belialf for jour letter
of August 23. X am stir* that Mr. Martin on hi* return
iiill be int*rast@d to raad /our coiwient*. Ion itajr ba
interested to sea the text of hia reeeftt atate^ant bafore the Senate Hxwnee QooHtittee and aeeontlngl^ I a»
enclosing a eooy.
Vary truly youra,
*

^O'

nec

^ Elliott Thyraton
Assistant to the

Bnoloaura
F,T:cd
oos Miss Huehlhaua

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Federal Reserve Bank of St. Louis

»-r. Hauris* C.
R. ?. D. #2,
Iforth S

Mr. Petamt
A* Chaifiitan M«rtla i» on Yaeation. 1 wlah
and th»fiic you cja ui« o^imii' for /our
af Autaat 23.

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Federal Reserve Bank of St. Louis

X kncar that h»- wt'.u very

truly
(Si?ned) pl!iott thurstnn
Xlliott

to th« Board*

N. B. Kelly

Augaat t6, 1957.

Mr. Stanlay X. Platt,
2002 W. Lak* Of the I»l«» 3lYd«,

*. Flatt?
As Chairman Martin is on vacation I wi^i to
and thank ym* for your l*tt*r of Augtiat 2
I a* sun* h* will be intor»»tf?d to read your coamants
nh«n h« r^t'^rnt.
fh* Hall Straat Journal •• abridg€r?wiit was
good out you may b* interested in steing th« antlra taxt
of that stater^nt to whieh yom ref«r and accordingly I
aa aneloatng a copy.
yours,

ETsGD

ec: Miss Muehlhaus

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Federal Reserve Bank of St. Louis

FOR FILES
N. B. K«!'v

August 26, 15?$?.

Mr. Harold Quintan,
Southern California Edison Company,
Edison Buildlag,
P. 0, Box 3$1,
Lea Angolan 53, California*
Dear Mr. Quintoni
As Chairman Martin is on vacation I wish to
acknowledge and thank you 00 hia behalf for your letter
of Aug-aat 21* I am aura lie will ba interested, to
your oon aanta and the «ncloa«d c<^y of the
at your annual ineetlng «h«n you diacuasad
clevelopnaiits. fha abridgamant to uhieh you rcf«r in the
Vail Street Journal waa ver/ good. 1'au laay be int«rest«d
la aaeing th« entire text of that statement and accordingly I am enclosing a copy.
/ery truly youra,
(Signed) Elliott Thurston

ETtcd
oc: Miss Huehlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mr. Hieer C. Fay,

Uj0 lorth Pleasant Avenue,

Dear Mr. Fay*
A« Ohaiarswrn Martin is on vacation I wiab tio
ac Bowled « yoyr letter of Aoga«t 23* la aeeor&tae*
with your request I am fomaraing a eoisgr ©f map Sy*t4M
booklet "Thi* F«««pal Rcaerv* S/«t«fi»*»PurpCMwa and functions11
and I alto enclose a copy of Mr* Martin's prepared
which he orea*tft*4 b«for« the Senate finance Conwittee.
has not publiehecl material on this eubjeot.

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Federal Reserve Bank of St. Louis

Very

Elliott T jurston
Aaaietant to th« Board*

£T:cd
cc: Miss Muehlhaus

FOR FILES
- B. {(ally

August 23, 1957

Dear Mr. Wegner:
As Chairman Martin has finally gotten away on
a short vacation, I wish to acknowledge and thank you
on his behalf for your letter of August 20.
While you say it needs no reply, it is encouraging to have comments like yours, and I am sure Mr.
Martin will appreciate them.
Very truly yours,
(Signed) Elliott Thurstou
Elliott Thurston
Assistant to the Board.

ET"nbk
cc: Miss Muehlhaus

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

August 23, 1957

Mr. Anthony G. Masucci
185 Towns end Avenue
Pelham Manor, New fork.
Dear Mr. Masucci:
As Chairman Martin is away on a vacation,
I wish to acknowledge and thank you on his behalf
for your letter of August 21.
You Kiay be interested in the enclosed copy
of a prepared statement which Mr. Martin presented
before the Senate Finance Committee at the recent
hearings.
Very truly yours,
(Signed) Eiliott Thurston

Enclosure
ET:nbk
cc: Miss Muehlhaus

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Federal Reserve Bank of St. Louis

Augutet 23, 1957

Mr. Charles A. Beasley
Fort Smith
Arkansas.
Dear Mr. Beasley:
As Chairman Martin has at last gotten
away on vacation, I wish on his behalf to acknowledge
and thank you for your post card of August 20.
I know he will very much appreciate
your generous comment.
Very truly yours,
(Signed) Elliott Thurston
Elliott Thurston
Assistant to the Board, '

EX:nbk
cc: Miss Muehlhaus

Mr. Clarence Axman
President and Editor
The Eastern Underwriter
93-99 Nassau Street
New York 38, New York.
Dear Mr. Axmam
As Chairman Martin has been under especially
heavy pressure, he did not have an opportunity to acknowledge
and thank you for your letter ol August if before leaving
yesterday on a belated vacation.
Heedless ta say, he is heartily in favor of
what you are doing to help in this battle against inflation
and regrets that he is a® pressed Cor time that he must
forego the opportunity to prepare a statement such as you
suggest. There have been so many requests for statements
that he ha a had to make a rule to decline because, as you
can understand* you can't accept in one instance and decline
in another.

(Signed) Elliott Thurston
Elliott Thurston
Assistant to the Board.

ET:nbk
cc: Miss Muehlhaus

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Federal Reserve Bank of St. Louis

August 21, 1957

Mr. J. A. Sorensen
1223 North 6th Street
Springfield, Illinois*.
Dear Mr. Sorensen:
Before leaving on a belated vacation, Chairman
Martin asked me to acknowledge and thank you for your
letter of August 19. He was interested to see your
comment*, and suggested that I send to you the enclosed
prepared statement which he presented before the

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Federal Reserve Bank of St. Louis

Senate Finance Committee on August 13.
Very truly yours,
jtt Thurston
Elliott Thuraton
Assistant to the Board.

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Dear Mr. Roth:
Before leaving on a belated vacation, Chairman
Martin asked me to acknowledge and thank you for your
letter of August 19, which he was especially interested to
read because of that amusing conversation which you re*
counted.

He very much appreciated your generous

comments and encouragement.
Sincerely yours,
(Signed) Elliott Thurston

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Federal Reserve Bank of St. Louis

Mr. Orrin S. Good
316 N. Fair view Street
Lock Haven, Pennsylvania.
Dear Mr. Good:
Before leaving on a belated vacation, Chairman
Martin asked me to acknowledge and thank you for your
letter of August 16.
He suggested that you might be interested
in the enclosed copy of the statement he presented
before the Senate Finance Committee during the
recent gearings.
Very truly yours,

Elliott Yhurston
Assistant to the Board.

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Federal Reserve Bank of St. Louis

.
I

Mr. C. E. kinduff
Vice President and Secretary
First National Bank and Trust Company
Steubenville, Ohio.
Dear Mi-. L.i&du££:
Before leaving on a belated vacation, Chairman
Martin asked me to acknowledge and thank you for your
letter of August 19. He was interested to see your comments
and suggested that I send to you the enclosed copy of the
prepared statement which he presented before the Senate
Finance Committee.
Your encouragement is very much appreciated.
Sincerely yours.

Elliott Thurston
Assistant to the Board.
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Federal Reserve Bank of St. Louis

August 21,

Mr. H. M. Arthur
President
Arthur State Bank
union. South Car§lina.
Dear Mr. Arthur:
Before leaving on a belated vacation,
Chairman Martin asked me to acknowledge and thank
you for your letter of August 19 with regard to
U, V. Wiieox's weekly letter.
Mr, Martin very much appreciates
your kindness and encouragement.
Sincerely yours,
(Signed) Eiiiott Thurston

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Federal Reserve Bank of St. Louis

Mr. Louie W. Rabe
42S Third Street
£a*t Greenville, Pa.
Dear Mr. Rabe:
Before leaving on a belated vacation, Chairman
Martin asked me to acknowledge and thank you for your
interesting letter of August 15.
He appreciated having your comments, and
suggested that you might be interested in the enclosed
copy of the prepared statement he presented before the
Senate Finance Committee.
Very truly your*,
(Signed) Elliott Thurston

•
Elliott Ihurston
Assistant to the Board.
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Mr. Karry W. Levy
Teakettle Spout Road
Mahopac, New York.
Dear Mr. Levy,
Before leaving on a belated vacation, Chairman
Martin asked me to acknowledge your letter of August 15
and suggested that you might be interested in the en*
closed copy of the prepared statement he presented
before the Senate Finance Committee since the subjects
which you mentioned are referred to in the course of
the statement.
V«ry truly yours,
(Signed) Elliott Thurston

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Federal Reserve Bank of St. Louis

Mr. J. S. Mitchell
Nobbe and Mitchell
231 South Fifth Street
Louisville, Kentucky.
Dear Mr. Mitchell:
Thank you for your letter of August 15.
Mr. Martin was interested to have your observations.
He thought you might want to read the enclosed copy
01 a statement he presented before the Senate Finance
Committee during the recent hearings,
Very truly ycmrs,
(Signed) Elliott Thursto«

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Federal Reserve Bank of St. Louis

FOR FILES
M. Muehlhau*

Mr. A. £. Grassby
Winnipeg Piano Co. J-td.
383 Portage Avenue
Winnipeg, Manitoba, Canada. '
Dear Mr. Grassby:
Before leaving on a belated vacation, Chairman
Martin asked me to say that he was interested to see the
material yon enclosed in yomr letter of August 16.
Because of your interest, he suggested that
2 send you the enclosed copy of his statement which was
presented before the Senate Finance Committee during
its recent hearings, since it touches on a number of points
to which you referred.
Very truly yours,
(Signed) Elliott Thurston

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Federal Reserve Bank of St. Louis

August ZO, 1957

Mr. Joha Bet&latti
51 liberty Avenue
, Connecticut.
Bear Mr. Betoiatti:
lhaak you ior y&ui postcard oi August IS.
I appreciate your words oi eacouragemeat.
because oi yaur interest, I am
a copy oi the statement 1 presented before the
Senate Finance Committee.
Very truly yours,
^SIGNED) WM. McC.

Wm. MeC. Martia. Jr.

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Ihaus

Mr. William B. Joyce
115 BSoadway
New York 6, Hew York.
Dear Mr. Joyce:
This is to thank you for your interesting
letter ol August 15.
S appreciate having your suggestions and
words ol encouragement. Because of your interest,
I ana enclosing a copy of the statement I presented
before the Senate Finance Committee*
Sincerely yours,
C^TflA'

Wm. McC, Martin, Jr.

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Federal Reserve Bank of St. Louis

Mr. Albert W. Karri*
Itl W««t Monroe Street
Chicago, Illinois.

Dear Mr. Harris:
This is to thank you lor your letter of August 15,
and the enclosures which I was interested to read*

had in mind some of the points you make when preparing
the statement for the Senate Finance Committee.
Because of yomr interest in the subject, X am enclosing
a copy.
Sincerely yours,
*

Wat. McC. Martin, Jr.

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Federal Reserve Bank of St. Louis

August 20, 195?

Mr. James W. Helming
Lei and,
Michigan.
Dear Mr. Kenning:
This is to thank yon for your letter of
August 15. Because of your interest, I am enclos
ing a copy of the statement I presented before the
Senate Finance Committee on August 13.
Your encouragement is very much appreciated.

Very truly yours,
WM. McC.

Wnu McC. Martin, ST.

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Federal Reserve Bank of St. Louis

- •

August 20, 1957

Mr. William Warren
7 North Seventh Strefet
St. Louis. Missouri.
Dear Mr. Warren:
Ttxis is to thank you for your letter of August 16.
Because of your interest, 1 am eacloaing a copy of the
statement 1 presented before the Senate Finance
Committee August 13.
Your encouragement is very much appreciated.
Very truly yours,

.ApT1
W«s. McC. Martin, Jr.

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Federal Reserve Bank of St. Louis

FOE FttJBB

Mr. David M. Figart
Box 239, R. I
BriarciiH Moaor, N. Y.
Dear Mr. Figart:
This is to thank you for your letter 0f
August 14.
I was interested in your comments and
greatly appreciate your encouragement.
Very truly yours,

Win. McC. Martin, Jr.

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Federal Reserve Bank of St. Louis

Mr. Curt F. W. Jui«b*
45*04 156th Street
Flashing 55, New York.
Dear Mr. Liebe:
This is to thank yon for your letter uf
August 15.
I was interested to read your comments
and appreciate your encouragement.
Very truly yours,
fBIGNF

\vm. McC. Martin, Jr.

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FOE FILES
M. Muehlhaus

August ZO, 1957

Mr. David H. Goeppinger
Boone,
Iowa.
Dear Mr. Goeppinger:
This is to thank you for your letter of
August 15. Because of your interest, I am enclos
ing a copy of the statement X presented before the
Senate Finance Committee.
Your encouragement is v«*y much
appreciated.
Very truly yours,

*,,^
Wm. McC. Martin, Jr.

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Federal Reserve Bank of St. Louis

August 19, 1957

Mr. L. M. Ganier
612 West Franklin Street*
Richmond* Virginia
Dear Mr. Ganier:
This is to thank yen for your letter of August 15.
Because of your interest, 1 ana enclosing a copy of the statement I ^reseated !>e£ere the Senate Finance Committee as
press accounts were necessarily very brief.
Your encouragement is greatly appreciated.
ry truly yours,
,

Wm. McC. Martin, Jr.

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Federal Reserve Bank of St. Louis

August 19, 195?

Dr. Bruno i*. Griesmaa
33 East 66th Street
New York 21, New York.
Dear Doctor Grieaman:
Your letter of August 14, addressed to the
Editor of the New York Times , has been forwarded
to me auntd I appreciate having your comments.
Because of your interest, I air? enclosing a copy of
the statement I presented before the Senate Finance
Committee, inasmuch as the newspaper accounts
were necessarily brief.
Very truly yours,

Wna. McC. Martin, Jr.

Enclosure
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Full text of William McChesney Martin, Jr., Papers : Correspondence. Personal Letters Filed Alphabetically, General Correspondence Copies of Replies from Martin : 1957-1959, Box 24, Folder 10

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