Evening star., 1938-12-26
Eeles in Sharp Reply
To Senator Byrd
Defends Spending
Critieizes Legislator
For Name Calling
In Strong Letter
By the Associated Press.

By the Associated Press.
A strongly-Worded defense of the
Governments spending program
came today from Mariner S. Eccles
Federal Reserve Board chairman.
Mr.. Eccles, replying by letter tc
Senator Byrd, Democrat, of Virginia
who had called for retrenchment
criticized Senator Byrd for name
Calling and "intemperate denun-
ciation."
The chairman said that drastic
curtailment of Federal expenditures
would reverse the current recovery
trend and would "jeopardize the
salvation of our democracy" New
Deal expenditures, instead of being
wasteful. had increased the national
income, he added.
Senator Byrd said at his Berry,
vile (Va) home last night he had
not received the letter, but probably
would reply to Mr.. Eccles on the
floor of the Senate.
The Federal Reserve chairman
vigorously opposed the substitution
of system of relief doles for the
more costly work relief which the
Government now provides for the
unemployed.
Text of Letter.
He wrote Senator Byrd:
You assert that millions of able
bodied citizens rely upon the Gov
ernment for support and have ceased
fn fpnir !, ,a1 IN,
to obtain private employment So
far as I know, there is not the
slightest evidence to support such a
sweeping assertion. Any honest
American citizen must resent the
insult this implies to millions of
self-respecting men and women.
"You stated that you are con-
terned about the character of the
individual citizen and the dignity
and the rights of the individual So
am I. I believe, however, that the
most basic right of all is the right
TO live and next to that, the right to
work. do not think empty stomachs
build character, nor do I think the
substitution of idleness and a dole
for useful work relief will improve
either the dignity or the character
of the people affected.
1--WE cannot expect to preserve our
free institutions in this country If
we condemn substantial proper
ton of our people to prolonged
idleness on a bare subsistence level
OF existence.
tI,o rinl,f tn cot of1H
the right to position, I think the
individual, whether rich or poor,
has a right to decent place to live.
= think he has the right to security
In old age and to protection against
temporary unemployment. I think
he has a right to adequate medical
attention and to equal educational
opportunities with the rest of his
eountrymen.
THE Government expenditures
which you condemn have in large
part been the means of translating
these basic rights into realities. Any
one who is genuinely sincere in his
concern about the rights, the dig
nifty and the character of the indi-
vidual citizen, far from seeking to
tear down what has already been
done, will want to have hand in
expanding and improving this work
;or the future"
Demands of Byrd.
In his recent address before the
Massachusetts Federation of Tax
payers Associations Senator Byrd
demanded an end to nine years of
fiscal insanity" He advocated:
Reorganization of the Government
TO effect economies.
Reduction of a minimum of ac-
tivities new to the Government.
Transfer of part of the relief bur-
den to local communities; purge
Of the 'undeserving' from relief
rolls and reduction of relief costs
by stopping all expenditures "in ex-
cess of providing for those in need"
Reasonable taxation" as "one of
the best assurances of business pros
perity.'
The Senator contended the Ma
tion faced disaster unless it soon
approached a balanced budget.
Mr.. Eccles replied:
IT, for one, am not prepared to
believe that this Nation is doomed
70 stagnation, to low level of ma,
tonal income, to wholly unsatis-
factory standard of living instead of
the high standards, the achieve
ment of which depends only upon
our correct understanding of the
operations of our economic system.
Il am convinced that your pro-
gram Is not only defeatist one,
program of retrogression and not
Of progress, but that it would
3eopardize the salvation of our
democracy which I know you are as