THE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE. (UNIVERSITY OF LONDON) RERUM. HOUGHTON STREET, COGNOSCERE ALDWYCH, Telephone: Holborn 7686 (7 lines). LONDON, W.C.2. Telegrams : "Poleconics, Estrand," London. 27th November, 1947. Dear Professor Mises, Your letter of November 12 has caused me some surprise and not a little pain. I make no complaint of the tone which is restrained and friendly; indeed, had I been in any way guilty of that of which you accuse me, I should say that you were insufficiently severe. But the utter misconception, as it seems to me, which has been the occasion of your writing is one which gives me almost as much distress as anything I can easily imagine. There are many points which you raise on which I am sure I am easily open to correction. The vast range of ques- tions relating to the policy of the exchanges in the transition period, our precise obligations in respect of debts contracted in war-time, and many other cognate matters, involve the weigh- ing of such complicated issues that I have no confidence whatever that the views I hold are necessarily right. There are indeed few intellectual questions on which I am so sure of myself that I should not expect to be capable of being swayed by reason and persuasion, especially if the argument came from one from whom I have learnt so much and for whom I have such feelings of friendship and respect as yourself. But the main weight of your strictures apparently rests on a belief that in some way or other my article was intended to be a reproach to America and Americans and a criticism of the Anglo-American Loan Agreement. You reproach me with declaring that the Americans have "grossly violated, if not the letter, then certainly the spirit of current account convertibil- ity", and raising this issue to the plane of moral judgement. I confess that this surprises me greatly. Certainly nothing was further from my intentions. One of the main purposes of my article indeed was to provide an explanation of our diffi- culties which should provide some offset to the undignified and unjustified complaints of those Englishmen who have felt moved to blame America for what has happened. I tried to show that