INFLATION: Morgenthau & Markets

Henry Morgenthau, who always had hoped to balance the budget, last week buried the ideological hatchet with ex-Spender Marriner S. Eccles, Chairman of the Federal Reserve Board, who had long since started preaching deflation.

Last spring Morgenthau fought Eccles' program to harden the money market (which would have raised the Treasury's interest rates). But spring was a long time ago last week. There are greater dangers to the country's economy than increased interest rates.

So in Boston Henry Morgenthau gave his first real anti-inflation speech. It melted commodity prices, like butter in the sun; even drove down the price of Treasury...

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