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FEDERAL RESERVE BANK OF CLEVELA-16
OFFICEOFTHEGOVERNOR

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Februar2', 1915.

3.1y, dear Governor Strong:-

//

I acknowledge with thanks receipt of

your letter of January 30,h together with the set
of circular letters and forms issued by the Gold
i/

We are glad to be advised

Fund Committee.
//

of the method in which the Gold Fund is to be

distributed./
/ Very tru

urs,

Governor.

EB:D

To- Mi. Benjamin Strong, Jr.
Governor, Federal Reserve Bark of New York,
New York City.




January 31st, 1916.

of:

Dear

rir. Fancher:
I have to thank you for your favor of

the 28th, and particularly for your good wiahes

in rerd to my trip.

I am looking forwrd to it

with keen anticipation and only wish that some of
the other members of our Governors' Conference
were in the party.

I

will

try and write you from

the other side at le:st once.
Very truly yours,

E. B. rancher, 77sq.,
Governor, FederP1 Reserve Bank,
Cleveland, Ohio.
BS Jr/VOM

PERSONAL AND CONFIDENTIAL:

My dear

March 6, 1919.

Governor Fancher:
For some time I have been interested with some friends in a

study of some

of the problems of our national financial system anu particularly to the possibili-ties of a reform movement which might result in the establishment of a scientific

plan for a Federal budget. The need for this has been made apparent to me during the
past two years and as a result of

contact with the financial machinery in Washington,

Some of my friends bel ieve the time is now opportune for a general

est the people of the

attempt to inter-

country in national financial reform.

The campaign for savings, thrift and

sensible spending, inciLent to the flo-

tation of Government loans has put many of our people in a receptive mood for fur-

ther

suggestions in these matters.

The national debt must be reduced and can only

be reduced if both individuals and the Government practice

sensible spending.

It

until scienti-

is particularly true with the Government but cannot be made possible

fic machinery is installed to accomplish it

Students of this subject seem

to be in general

agreement that a scientific

budget system is the only solution. To persuade our people

be installed,

a nonpartisan

that such a system should

organization should be built up and a wise and sane cam-

paign of publicity inaugurated.

It is

a plan of that sort

in which some of my friends

are interested with a view to activity after the next loan is placed.

taken to prepare

steps must be

must be developed in

It

the publicity, and the personnel of the organization

advance.

is, of course, out of

the

question

as such for an enterprise of this character.

me to ask you if in your experience with
organizations in connection
your

district who




In the meantime,

It does not,

the Liberty Loan,

with the war, you

would be likely

to utilize the Liberty Loan organizations
however,

War

seem improper for

Savings, or other

hflvecome in contact with individuals In

to be interested in

this movement and who mould

March 6, 1919.

32

be qualifiedfOr service in such an organization and who would do so as a matter of
public duty. Nhat is first needed is a representative in every State, competent to

take charge of the movement and direct it in the State. He should have qualifications
to enable him to become a leader of the State movement, some ability as an organizer,

should be public spirited, able to grasip the sublect and willing to study it, and
should be regarded locally as without

political prejudice or purpose, and have the

confidence in general of the people of the State.

In addition to state directors, signer organizers must be appointed in

the various counties and erincipal cities.
T shall be greatly indebted to you if you can let me have suggestions and

names of men in your district for
to them.

You may

because you

this work without, however,

mentioning the

matter

know them Tell enough to meke definite recommendations not only

came In contact with

them in Liberty Loan

matters, but other public

spirited activities with which you are aceeainted or connected.

This is a matter in which I have a strong personal interest and will be
grateful for your assistance.
have an opportunity

t our meeting

to refer to this

in eashington on the 20th I hope to

matter more specifically.
sincerely yours,

Governor.

B. R. Faucher, Lsq.,

Governor, Federal Reserve Bank of Cleveland,
Cleveland, Ohio.

BS/NB




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4

September 14, 1921.
Dear Governor Faucher:

You will recall that about two yeare ago we had eieee oorrespondence in
regard to the %ore of the national Budget Committee.

In part, at let, pesease

of the budget legieletion by the Congress wes due to the work conducted by that
oomeittee.

i404 that the basis of the budget system has been edoptec by Congrees,

our orgenization is eedeavorine to crystal/Jae public sentiment for the eupieert
of the pregram of guverneent economy .e.14 thereby to inaure permanent success for

the new national budget eyetem.

e are eeekint, to 'extend this work by eelecting, so far as possible,
bankers to accept ecteve chairmanehiie in varioue of the r,ore importent cities,

simply to carry en work which will be laid out for thee by the national committee.
The scope of tLe work is described in the encloeed merearandum.

Can you euggeet representative men, preferably bankers, who might

be

willing to accept euch appointments in the cities of Akron, Columbus, Dayton, Toledo
and Youngetown.

At the present time I shell only ask you to suggest names, but later on
poesibly you would be willing to coeeunicate with them directly ad further our
object of having them accept these appointments.

If for soy reason you think it unwise to make those suggestione,will you

not write me quite frankly and, if you are willing to do eo, give e your reasons.
With beet regards, and thanking you very cordially, I
Youre very truly,

E. R. Fsocner, Esq.,
Governer, Federal Reeerve Beak of Cleveland,
Cleveland, Chio.
B6:Wel


6.130.


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FEDERAL RESERVE BAN K
OF-CLEVELAND

Rti:CEIVE0
JUN
June 24,

jaZL9-;

Mr. Benj. Strong, Governor,
Federal Reserve Bank of New York,

New

York,

N. Y.

Dear Governor Strong:

Your letter of June 21 is received, concerning the matter of asking the Treasury for reimbursement

for fiscal agency expenses growing Qut of discussion of
certain topics at the recent conference of Governors.
I want to refer this matter to our Executive
Comrittee the forepart of the meek, and will endeavor to

mire you the position that this bank

will

take in the

matter at a very early date.
Very t

F.B

r

yours,

or.




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FEDERAL RESERVE BANK
OF CLEVELAND
August 12, 1922.

Dr. Carl Snyder, Statistician,
Federal Reserve Bank of New York,
New York.
My dear Doctor:

At the instance of your letter, Mr. Anderson has made a survey of the
tire situation. When I was in New York, our information was to the effect that
the tire companies were afraid to give out their figures because of an overproduction.
A number of the companies had not made the reduction in the number
of tires usual at this time of the year, and it was thought that they were on
the road to a repetitidn of their former spree.
Referring to the clipping from the Journal of Commerce, Mr. Anderson
reports as follows, which gives the situation as it appears to be at this writing:

The statement that 2,500,000 tires were turned out in Akron in July
does not appear to be overstating the facts. Tire production, so far as we have
been able to learn, for that month was approximately as follows for the four
leading companies:

Goodyear
22,000 )
25,000 (
Firestone
Daily
average.
Goodrich
18,000 )
7,500 (
Miller
On a basis of twenty-five working days per month, this would bring the production
cf these four companies alone to approximately 1,800,000. The multitude of other
small companies in the Akron district would easily make up the 700,000 difference.
The direct statement that Miller is making 7,500 tires is confirmed by
that company. Goodyear reduced their production slightly during the month of
July but increased it about 2,000 tires per day in August. The increase is
largely in Ford sizes. Firestone contemplates reducing their output during the
month of August, although sales and shipments are approximately equal to production at this time.
Stocks, in the judgment of
of the Goodyear Company stating that
they would consider safe to carry in
reported by the Firestone Company as

producers, are not excessive, Mr. Rockhill
their present stocks are lower than what
what we choose to call normal times.
Stocks
being usual for this season.

With tire production for the year at approximately 35,000,000, which t
the majority of the larger producers state will be about the number prOduced, I
do not believe that production is in excess of the demand.
In the year 1919,




FEDERAL RESERVE BANK OF CLEVELAND
-2-

Dr. Carl Snyder,
Federal Reserve Bank of New York,
New York.

33,000,000 tires were made; in 1920, 32,400,000; 1921, 27,275,000. Car
registrations for 1919 were 7,558,848; 1920, 9,211,295* 1921, 10,448,632.
This will give an average of tires produced per car registered of:
1919
1920

1921i

4.4
3.5
3.8

/ 7221t)
Motor car registration July 1 of this year has been given as 10,863,000.
Assuming the production of 35,000,000 tires, this would make the average per
car 3.2, which is below that of any of the three preceding years.
-1--

Another point which would seem to indicate that there is no overproduction is that almdst without exception producers report shipments for the
past month in excess of production.
After the bitter experience of
during the past two years, it is difficult to conceive of them accumulating
stocks of tires. For this reason it is also difficult for me to see how
production is in excess of current demand when tire makers are selling all that
they are producing.
Sorry we have been so long in getting the information to reply to
your letter.
With best wishes.
Very truly yours,

JCN-L.




Ast.

Federal Reserve Agent.




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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102