December 29, 1958. Mr. Otto T. Mallery, · 2018. 11. 6. · December 29, 1958. Mr. Otto T. Mallery, 14&7 Spruce Street, Philadelphia, Pennsylvania, Dear t&r. Uallery: This is to thank

December 29, 1958.

Mr. Otto T. Mallery,14&7 Spruce Street,Philadelphia, Pennsylvania,

Dear t&r. Uallery:

This is to thank you for your letter of December 27thand its very heartening references to sy recent letter toSenator Byrd.

I had an opportunity to see the volume, *Toward FullEmployment*, in manuscript form and while it was in preparationand I am, of course, very glad that it has been published be-cause it is, to H y Mind, an exposition that should help to clearthe thinking of a great raany others in the business and bankingworld,

I am glad you reminded me of the I.L.GU bulletin withregard to the Swedish tax policy towards corporation profitsdevoted to capital improvement in depressed periods. That gen-eral idea, accords with one which I tried unsuccessfully to getacross before Congress put through the tax bill last spring.In testifying before the Senate Special Coaaittee to InvestigateUnemployment and Relief on January 4th. I very strongly urgedthat instead of repealing the undistributed profits tax con-sideration should be given to exempting such funds as were de-voted to plant improvement or expansion for a period of possiblyfrom two to three years or until we had reached a reasonablyfull degree of recovery.

I am pleased to know that Mr. Delano has appointed youto the subcommittee on public works planning, and if I c&npossibly arrange it, I should be happy to see you, as you sug-gest, either at four o*clock on the afternoon of January 18thor the following morning. Will you please coasunicat© with ayoffice at your convenience after you arrive and at that timeay secretary can let you know definitely. In the

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Mr. Otto T. Siallery - (2) December 29, 19S8

I will put it down tentatively for four p.ra. on January 16th inaccordance with your suggestion.

Sincerely yours,

M. S. Eccles,Chairman.

:b

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COMMONWEALTH OF PENNSYLVANIASTATE PLANNING BOARD

HARRISBURG

1427 Spruce StreetPhiladelphia, Pa.

December 27, 1958

Mariner C. Eccles, ChairmenBoard of GovernorsFederal Reserve BankWashington, D. C.

My dear Mr. Eccles:

Congratulations on your open letter to SenatorGlass. It is a fine piece of exposition and a valuable publicdocument.

Since I met you at your house several years ago with thegroup whom I think Lubin had suggested to you, much progress hasbeen make in the conception of public works planning we discussed.

Have you seen "Toward Full Employment" by Dennison, Leeds, andFlanders, published by Whittlesey House? This covers the fiscalaspect of public works planning and is a sound book.

The International Labor Organization's bulletin recentlydescribed the Swedish plan of making tax free the profits ofcorporations to the extent that they were laid aside for expenditurefor capital improvement during periods chosen by the governmentas periods nearest the trough of the business cycle.

Mr. Delano has just appointed me on a subcommittee of the UtionalResources Committee composed of representatives from a number ofgovernment departments including the budget. The purpose of thiscommittee is public works planning in its largest aspect. The firstmeeting of this committee is in Washington on Monday, January 16th,at 9:50 a. m. Would you be good enough to make an appointment withme around four o'clock that afternoon or early the following morning,January 17th?

Sincerely yours

Otto T. Mallery:V

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