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C O P Y May 6, 1966 Dear Alt This is to say goodbye for this trip, and to thank you again for all of your courtesies as well as to give you a final report on lay conversations. In Heir York, since I saw you last Monday, I have seen \ Doug Dillon, David Rockefeller, Bob Roosa and Walter Heller. \ la contrast with people I had previously seen around the town, 1 all of these men are for an increase in taxes, now. Dillon, I Rockefeller and Eoosa had;:all been to Washington t© see Secretary Fowler as members of his blue ribbon committee on the balance of ‘ payments. They strongly recommended an increase, with particular reference to the contribution It could make to the improvement of our international financial position. Walter Heller, as you nay have read* has finally Joined the ranks of those not under of fie lit! wraps : come to the same conclusion with respect to t#; the needs of the domestic sitution. In Washington the Treasury is repeating its performance with respect to monetary policy in its attitude toward a tax increase. I did get;an intimation, however, that the Secretary : nay f e sore Bourbon than the "king" on this score'. Ackley is e reported to be sort of neutral against a tax increase. The President and Wilbur Mills are said to be the keys to the situation« and both just sight be moved to embrace the idea. There is some support in the X*abor-Management adfcsory committee Thieh has been reactivated to advise the President on how to combat inflation. If this is not Just another delaying action something might eoae out of the next meeting of the committee on Hay 13* 1111 Martin, of course, is on the side of the angels, publicly now as well as privately and within the councils of the administration. Unfortunately, the temporary cutback in production at General Motors and the .flop in the stock m a r k e t will be seized on by those opposed to « tax increase as signs that the economy is levelling off. I place little stock in such opinions in the light of the broat base of oar economic activity and the increasing demands of the war in Vietnam. In fact, I am more firmly of the view than I was when I came east that this is one of those economic situations which can make or break intelligent economic management and that, unless a tan increase is brought forward soon# it will be '"break". With all the best* /#/ Allan Allan Sproul