<--PREV Doc #614  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #616 Document #615; March 20, 1958 To Arthur Frank Burns Series: EM, AWF, Administration Series ; Category: Personal The Papers of Dwight David Eisenhower, Volume XIX - The Presidency: Keeping the Peace Part IV: Recession and Reform; February 1958 to May 1958 Chapter 8: "To engender confidence"   Dear Arthur: Some days ago I became convinced that the March figures were not going to be such as to cause me any great rejoicing. Nevertheless, I continue to believe that the economy is now in a "dragging-the-bottom" condition and could, very soon, show real signs of upward movement.1 I make no claim to gifts of prophesy, but the above is my personal reaction to the various facts and deductions that are, as you know, placed before me constantly. A recent article by Bill Martin, which you undoubtedly saw, makes the observation that one of the primary causes of the recession is that it is a reaction from the prior period of inflation.2 Personally I think this generality can be made more specific by saying that the 1955 inflationary splurge by certain automobile companies had a very great deal to do with subsequent economic movements. Of course you were then one of those who did everything he could by argument and discussion to get the companies to adopt a more moderate policy. George Humphrey and I were also in the same effort. All of us failed.3 This morning there is an important housing bill that will be sent to me. It has some bad features. I shall have to examine it with a jaundiced eye, and I am quite sure that some of my advisers will be as uneasy about it as I am. I hope its virtues outweigh its defects.4 I shall be looking forward to seeing a copy of your talk.5 As ever 1 For background see no. 604. On the recession and subsequent recovery see Saulnier, Constructive Years, pp. 111 - 16. Burns's letter of March 17, 1958, is in AWF/A. 2 Eisenhower was referring to William McChesney Martin, Chairman of the Federal Reserve Board. We have been unable to find the article to which Eisenhower refers. 3 On Eisenhower's concern over the interaction between the automobile industry and the economy see Galambos and van Ee, The Middle Way, nos. 1272 and 1843. 4 On the housing bill see no. 598. The President would sign the bill on April 1 (see Congressional Quarterly Almanac, vol. XIV, 1958, pp. 229 - 30). He would, however, say that "the legislation ignores the responsibility and ability of private enterprise to function without imposing a direct burden on the Federal purse." Eisenhower would also call upon Congress to enact legislation adjusting interest rates for guaranteed government loans "so that in this field our free enterprise system may have the fullest opportunity to work" (Public Papers of the Presidents: Eisenhower, 1958, pp. 257 - 58). 5 Burns had said that he was scheduled to give a talk on the recession on March 22 and would send the President a copy of the speech (for background see no. 577). For developments see no. 620. Bibliographic reference to this document: Eisenhower, Dwight D. Personal To Arthur Frank Burns, 20 March 1958. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 615. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/second-term/documents/615.cfm <--PREV Doc #614  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #616

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