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Content from external source:
Letter to Edward M. House
Warm Springs, November 21, 1933
My dear Friend:
Dan showed me your letter, and the next day I sent for the Sprague person. To tell you the honest truth I had had no intention of hurting Sprague's feelings by not sending for him, but equally honestly I did not send for him because of the very simple reason that I had entirely forgotten his existence for at least a month.
On several occasions after his return from London, I had long talks with him and tried to get from him some concrete proposal or suggestion which would help us to lift the price level and therefore the debt burden under which the Country, especially the West and South, was staggering. He gave me me absolutely no constructive thought— only the same old suggestions about open market purchases and stabilization of the dollar with the pound. Everyone who is not blind knows that the open market purchases have practically no immediate effect and only a very doubtful long-range effect; also that every time stabilization on the old level of about $4.50 was mentioned, cotton, wheat, corn and everything else started to go down. A continuation of the fall of the price level which ran from the middle of September to the middle of October would have brought the whole Recovery Program toppling about our ears.
Sprague is a nuisance. He carries no real weight except with the Bank of England crowd and some of our New York City bankers, and I regard his suggestion of a meeting as absolutely disloyal. In any event, I kept him from formally delivering a silly letter to me, had Woodin talk with him and subsequently Morgenthau, Jr. Sprague has said that if he resigned, Government bonds would go down five points! Now let me tell you something cheerful.
This Southland has a smile on its face. Ten cent cotton has stopped foreclosures, saved banks and started people definitely on the upgrade. That means all the way from Virginia to Texas. Sears-Roebuck sales in Georgia are 110 per cent above 1932.
Another angle: Hugh Johnson has just telephoned me to be sure to read the latest Dun & Bradstreet Report. He says every section of the country is showing definite gain.
I had a nice talk with Jack Morgan the other day and he and he seemed more worried about Tugwell's speech than about anything else, especially when Tugwell said, "From now on property rights and financial rights will be subordinated to human rights." J.P.M. did not seem much troubled over the gold purchasing, and confessed that he had been completely misled in regard to the Federal expenditures. The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson— and I am not wholly excepting the Administration of WW — The country is going through a repetition of Jackson's fight with the Bank of the United Stated - only on a far bigger and broader basis. I am having a grand rest and am catching up on much needed sleep. Take care of yourself and do write me soon