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'Ion. 'ra n k lin D. R o o s e v e lt, The white Bouse, Washington, D. C. **jr d eer * r . Presidents In r s i s l a th© b illio n # required f o r fin a n cin g the war, unavoidable expansion o f money In c ir c u la tio n fa r beyond nor al w i l l ensue. F ix in g p ric e # , r a tlo r .lr onda, high ta x es, s e llin g stamps and bond# to bank d ep o sitor# w i l l be u sefu l to abating th# unavoidable lo w erii ,* o f the d o lla r index, but I wish to su g,eat another step which should go oortemporaneoualy with the steps now contemplated and above r e fe r re d to as fo llo w s * In "Conquest o f Poverty** by ayor m e a r, o f Vancouver, B ritis h Colombia, is an a b stra ct o f Abraham Lin coln *a »on c— tnry p o lic y which was v e r if ie d by the L e g is la t iv e Reference o f t ve C ongressional Library at the Instance o f on. Kent K e lle r , Chairman o f t i e Lib rary C o n rittee o f t v « ' m?##. in Senate loouwent 25, 76th Congress, t i e f u l l c it a t io n ie ;lv#n from which, page 91, 1 submit th e fo llo w in g ab stra ct* "C overm en t possessing t i e power to c re a te and Issue currency end c r e d it as money and en joyin g the r ig h t to withdraw both currency and c r e d it from c ir c u la tio n by taxation and otherw ise need not and should not bor row c a p it a l at in t e r e s t as t i e means o f fin a n e lr^ governmental work and public e n te r p r is e . The govern ment should c r e a te , issue and c ir c u la te a l l the cur rency and c r e d it needed to s a t is f y the spending >owor o f the Oovernment and the buying power o f consumers. T ie p r iv ile g e o f c re a tin g and issu in g money is not on ly the supreme prert s t iv e o f government, but i t is the fo v e r m e n t* s g re a te s t c r e a t iv e op p ortu n ity .* The c o n s t it u t io n a lit y , the tru th and the wisdom o f Abrav:m*t Lin coln *a views has been com pletely v e r if ie d by the experience o f th la government sin ce h is assa ssin a tio n . As Chairman o f tlve Committee on Banking and Currency o f the r n ited ?tsteo Senate, I was resp on sible f o r w ritin g in to th a t Act governmental c o n tro l o f t e reserve bsnkc and goverm w ntal issue o f fe d e r a l reserve n otes, t y demand th at th la money should be le g a l tender was f i n a l l y enactsd In to law in the f i r s t year o f your Adm inistration You have rep e a te d ly demanded the r e s to ra tio n o f a pre depression d o lla r and i t s maintenance as s permanent, debt-paying 21 ■ purchasing monetary u n it and wed last o f exchange. -ihlXe your views on th is Question is in fundamental accord with the Con s t it u t io n , w ith Lincoln* a view s, with reason and w ith ju s t ic e and is f u l l y sustained by s t a t i s t i c a l f a c t , THE TIME HAS 00! K when Congressional actio n should supplement and isake e f f e c t i v e your derand f o r the governmental c o n tro l and re g u la tio n o f the value o f money. On the 25th Anniversary o f the s ign in g by Woodrow ^11aon o f the Federal Reserve A ct, 1 wrote a th esis on Modern Monetary Science in r e la tio n to our n a tion al economy and banking system, published by the United States 3enat© at the Instance o f senator . . Logan, as Senate Document 23, 76th Congress, f u l l y supporting your views on re s to rin g the p re-depression p ric e le v e l s o -c a lle d and I t s maintenance* In that document I c ite d the h igh est a u th o r itie s in the world on monetary scien ce) the evidence that a l l the g r e a t farm organ isation s have urged th is r e fe r s ) that a l l p o l i t i c a l p a rtie s have s u b s ta n tia lly endorsed i t ) th at the most notable men In our n a tion al and fin a n c ia l l i f e as members o f "The Stable oney A s s o c ia tio n ’1 demanded s ta b le money. I en c lo s e , **r. *r e s id e n t, the record o f the d o lla r index, month by month, f o r the la s t f i f t y yearn, re c e n tly compiled by the Department o f Labor, showing that the d o lla r * a purchasing power has varied so that at one time i t would buy n ea rly three o r fou r tin e s as much aa at another time in w holesale commodities. This ta b le shows that the p ric e le v e l has varied o f course In the same Id e n tic a l manner, represen tin g the i n s t a b ilit y In d o lla r o f the t o t a l products o f human la b or moving through the wholesale primary market. I now poin t out that what Lincoln said was true and f u l l y worthy o f your support aa a measure o f lim it in g by h a lf to the taxpayer the unavoidable coat o f th is war. I suggest that the S ecretary o f the Treasury be authorised >y law to d e p o s it w ith the reserve banks c e r t i f i c a t e s o f in debtedness nor.-interesfc bearing and that he re c e iv e th e r e fo r c r e d it . la checks would become the d e p o s its o f member banks end suojft c r e d its would be returned to the res e rve banks from which they cere fo r t h and without p enalty the United States from taxes could liq u id a te the c e r t i f i c a t e o f indebtedness o f the Treasury at convenient times without an in t e r e s t p e n a lty , Xr th is manner, you could save the taxpayers o f tbs coun try probably 50 b i l l i o n d o lla r s which otherw ise they would have to pay. Tru sting th at you may fin d something o f value in th is su ggestion , I remain, as e v e r, F a it h fu lly yours. IUX i TT Robert I,. Owen.
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