December 14, 1956 Mr. William McChesney Martin Chairman Federal Reserve Board Washington 25, D. C. Dear Mr. Martin: Under date of December 7, 1956, Murray Shields of Management Economics Incorporated wrote a memorandum entitled "It Is Time For The Federal Reserve To Ease Up. " A friend of mine showed me the letter and I have replied to him as per the attached letter. with my compliments, I am sending to you herewith a copy of Discourse IV* with the title Of Interest, photographed from a book in the New York public library. I realize how busy you are, but I think the first few pages are exceptionally interesting; and if you do not have the time to read this, I think someone on your staff probably will. No acknowledgement expected I hope the independence of the Federal Reserve Board can be maintained and increased, and that the people of this country will change the situation so that labor rates cannot be forced higher than the natural market by union pressure, with the result that the money supply must be increased in a compen- satory manner or else there will be chronic unemployment. I am afraid that the fight cannot be fought on the money front only, but must also be solved on the union front. Respectfully yours, Frederick Nymeyer FN:br b/c Dr. Ludwig von Mises * by David Home