While the United states Armed Forces (private mercenaries) are in Korea, “champion[ing] liberty wherever the tyranny of communism is the aggressor,” Democratic (socialist/fascist) President Truman writes to John W. Snyder, secretary of the treasury; Thomas B. McCabe, Chairman of the Federal Reserve Board of Governors (a Federal agency) that oversees the privately owned Federal Reserve System of (central) Banks; Charles E. Wilson Director of the Office of Defense Mobilization; and Leon Hirsch Keyserling Chairman of Council of Economic Advisers, over his concerns about “reconciling … the need to maintain stability in the Government security market and full confidence in the public credit of the United States, and … the need to restrain private credit expansion at this time.

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       Cutbacks of civilian supplies and allocations of essential materials have been successfully undertaken. Important expansion programs for basic materials and productive capacity needed in the defense effort have been gotten underway. Price and wage controls have been initiated. Restraints on consumer and real estate credit have been applied. Large tax increases have been enacted and additional tax proposals are now pending. In all these fields further action is being planned and will be taken as needed.

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       [W]e must curb the expansion of private loans, not only by the banking system but also by financial institutions of all types, which would add to inflationary pressures.

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       Furthermore, I should like you to consider the necessity and feasibility of using the powers provided in the Emergency Banking Act of 1933 to curtail lending by member banks of the Federal Reserve System. … The program could be extended to institutions other than member banks, if desired, by using the powers provided by the Trading with the Enemy Act. (emphasis added)

       [restored 9/6/2022] Thanks to Chuck McGlawn for this entry.