View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.


APr 43 Ma
April 10,


dear Mr. Van Zandt:

Permit me to extend to you me:A hearty congratulations opon your .Fpi)ointment to the office of Governor of the Federal Reserve B:Ink of Dallas.

e felt the loss of Governor

ells when he tesignod,

and now that it is our pleasure and privilege to welcome you into
the service, we hope you will find the meetings of the Governors,

which have heretofore been attended by Governor Te11a, as interesting and profitable as we have.
ith cordial regyrds, and wishing you
success, I beg to remain,

Very truly yours,


Hon. R. L. Van

Governor, Federal Reserve Bank,

Dn11e, Texas.


every possible




April 13,1915.


My dear Mr. Strong:

Your very kind letter af the tenth

instant, extending congratulaTs to me upon
having been elected Governor o this bank, is
much appreciated, and is also accepted largely
in the nature of a welcome
the association
of Governors.
I am looking fOrward with a great
deal of pleasure to thinext meeting, in order that I may have ahlopportunity of becoming
personally acquaintecith you, about whom I
have heard so many lomplimentary remarks.
Being y ung in the ranks, I am somewhat impatient
r the date of the next meeting
to came around as, of course, it will be more
profitable to e than to any of you, all of
whom are by
w "Old Timers."


gain thanking you for your words of
Ind with best personal regards, I am

Yours very truly,

Honorable Benj.Strong, Jr.,
Governor, Federal Reserve Bank,
New 7ork, N. Y.



-4,- .../
r> .






NVIA8 3N/Fia2351 JA513C39




- 1 1W
August 51st, 1915.

dear Governor Van Zandt:

You nay be sure that anything we can do for

'rs. Van7.andt, or that I can do personally, will be a
great pleasure.

I was out of tonn when your letter

reached the office, so my secretary end,avored to get
into communication with Mrs. VanZandt to make sure that
she understood that I wou1d be very glad to attend to any

matters in which I could be of service.

I had a delightful visit with r. Tenison when
de was in the city a day or

two ago.

He is much too

good to lose and I hope by no possibility that you will

>emit him to slip away from us.

Very truly yours,

R. L.

.:ral Reserve Bank,

D has, Tex;Is.

BS Jr/Vall





September 9, 1915.

My dear Governor Strong:

The original outline which I submitted
to the Governors of Mr. Talley's plan for a system
of clearings was not entirely clear to me, and, of
course, could not be to one who had not had an opportunity to discuss the plan fully with Mr. Talley.
Having that in mind I have taken his ideas
and rearranged them in a form which will be much
more readily understoodh and a copy of this revised
outline is handed you herein, for your consideration
before the next conference of Governors is held.

In the meantime if you have any suggestions to offer in connection with this plan, I will
appreciate it if you wdll submit them to me, in
order that I may take them up with Mr. Talley and
get his views in that connection.
With personal regards, I am,
Yours very truly,

Mr. Benj. Strong, Jr., Governor,
Federal Reserve Bank of Hew York,
Hew York City, N. Y.



December 6, 1916.

Er. Benj. Strong, Jr.,
"The Hut", Eontview Boulevard,
Denver, Colo.

My dear L. Strong:
As you will probably recall, we were so firmly convinced
of the merits of the clearing principle as applied to collection
of miscellaneous checks by a Federal Reserve 3ank for its member
banks and for other Federal Reserve Banks that, about a year ago,
we inaugurated what we term a RESERVE CITY CLEARING HOUSE.
The operation of this RESERVE OL2Y CLEARING HOUSE was so
satisfactory that it is still continued by us for the reserve city
member banks in this district, and the experience which we gained
in its operation was of imense benefit to us in the development
of our District Clearing House, which is being used in this district instead of the deferred debit and credit collection department being operated by the other Federal Reserve Bunks.
Thinking that you might be interested in the plan and the
opinion of the participating members, I have had prepared the enclosed outline, with extracts from letters from the participating
members, giving their opinion of same.

Enclosed you will also find a list of the participating
banks, which will serve as a key to the letters.
If there is any further information which you desire relative to the operation of our AESERVE OM CLEARING HOUSE, I will
be very glad, indeed, to furnish you with same.
I trust that you are improving in health and that, before
long, you will be back with us to preside at our conferences.
With kindest personal regards, I am,
Yours very truly,


FORM M1SC L. 14




B.0.1T1: OF D6TI,A3

That the RESEINE CITY CLEARING HOUSE of the Federal Reserve
Bank of Dallas has fulfilled the expectations of its author and is
serving the commercial and banking interests of the Eleventh District more expeditiously and economically in the settlement of trade
balances than could have been done under conditions existing before
ts installation is, in the opinion of those most vitally interested,
admittedly a matter of fact, as shown by the appended extracts fro:1

letters received from the ofZicers of the participating banks.
In order that the experience gaindd in the Eleventh District through the operations of this department may be made known,
a review of its development seems appropriate.

During the month of November, 1915, the Cashier of the Federal Reserve Bank of Dallas, who for many years had been in daily

touch with the unscientific and unsatisfactory methods employed in
settling balances between the banks in the reserve cities of this

district, offered to the reserve city member banks a plan for settling

balances .irita

each other daily through the Federal Reserve

Bank which would not entail the float of ler& amounts in transit
between these banks, nor the incidental expense, and which would m4e
unnecessary the waste of time

and energy by the officers of the banks.

Following this proposal, on December 21, 1915, about- twenty


representativepipf the banks met in Dallas ariplafter a4dtscussion of
the merits of

decided that, with slight modifications, it be
given a thirty-day trial. The :trial period was subsequently extended

to Narch 1st, and the department thereafter became one of.thp.perma-

nent facilities of the Federal. Reserve Bank. However, at the time that
general clearing operations were undertaken between all member banks,
on July 5, 1916. the RESERVE CITY CLEARING HOUSE was discontinued, be-

cause it was thoucht that the general clearing plan would have the effect-of making :it Superfluous.

Those banks which had.participated in

the plan speedily made it known, however, by means of a post-card vote
onthe question, that it was their desire that the RESERVE CITY CLEARING

HOUSE be continued, and it was resumed on July lath.

Under its Operations the advantages, are


to twenty-,

banks in the cities -of Dallas, Fort Worth, Galveston, HOUStOrl,

San Antonia ani taco, only five banks in those cities not availing

.themselves of itvbenefits. By mutual consent one other member, though
nat located in a reserve city, has been added.
The members of the RESERVE CITY CLEARING HOUSE continue to

send the actual checks and drafts which they., receive on each other

direct:th.the drawee banks for credit, and against these sendings, in
'round amounts, they draw in favor of the Federal Reserve Bank and forward it to that bank for their credit. in the RESERVE CITY-CLEARING;
HOUSE, ?he aggregate amount of all drafts,Ssavgbled against each bank

-is debit4.41n a.clearing sheet and the ampuntAlf.

their letters, whiah

Igue matieT!iiplatjtems-Oh,optAer-lpembersi_Am orgaite4,

leaving either a


debit or a credit balance to be settled by each bank,

In this way the amount of float is reduced-materially by
offsets, and at times certain banks, through cancellation of debits
against credits, come out exactly even, and frequently banks settle
hundreds of thousands of dollars with the actual transfer of a few

The results of the clearings are telegraphed to the manager

of the local clearing house in each city by Special code each day
at 11:45 a.m., and


separate banks are notified by him.


ments must be made on the same date that the clearings are effected
and the

or, in


Reserve Bank advised in

specie/ code

by telegraph,

instances, by telephone, of the manner of settlement, not

later than 3:00 p.m.

Debit balances may be covered in any of the following ways:
Debited to the reserve account of the debtor bank;
Remittance by mail to any other Federal Reserve
Bank, for the credit of the Federal Reserve
Bank of Dallas, at the prevailing rate of exchange;
Arrangement with any other bank to deposit funds
with the Federal Reserve Bank for that purpose;
Remittance of currency by registered mail insured.
In the event that the latter option is chosen, the cost of ship-

ment is assessed ratably against the banks which forwarded the items
causing the debit balance.

In the absence of advice, debit balances

in the RESERVE CITY CLEARING HOUSE are charged to the reserve account.

Disposition of credit balances is subject to the instructions of the
credit banks, and, in the absence of advice, they are credited to the


reserve accounts.

Quite often the credit balances received by banks

in one of the cities are traded to debtor banks in the same city,

thereby making transfers or currency movements needless, and obviating
the attendant expense.

Participating banks may, if they prefer, send the items
direct to each other, taking a carbon copy of the cash letter, which,

when certified by an authorized officer or employe of the sending
bank, May be sent to us and becomes, in effect, a draft against the
bank to which the items were sent, the amcunt of which is creditee_ to
the sending bank in the RESERVE CITY CLIIALING HOUSE.

Since general clearing operations have become effective, the

members of the RESERVE OWY CLEARING HOUSE have found this department
a distinct benefit to them, in that it makes the drafts which their

country correspondents draw on them eligible for immediate credit
with the Federal Reserve Bank.

Drafts of this character are, by ar-

rangement with the drawee bank, stamped by the issuing bank, "Charge

This method of cover-

tag items handled for deferred credit and sent to members not in reserve cities has been used extensively, as the following figures testify:


July 5th
Month of
Month of
Month of

to August 1st - - August
September - October
1st to 25th, inc. -^


9 855 469.16






Items handled under this arrangement must be listed on a separate letter and sent to the Federal Reserve Bank, and are cleared


against the drawee banks, with a resultant credit of the entire amount
to the Federal Reserve Bank of Dallas, which participates in the clearings to that extent and receives acceptable funds in payment from the
other participating banks.

It may be interesting to note that, on the opening day, December 26, 1915, the total clearings were 0.,175,00O, with ensuing balances of only 484,OOO, showing offsets of .-,691,000, 'while on October

18, 1916, the total clearings were, in round figures,
ensuing balances of only ;1,109,000, showing offsets of 05,691,000.
The aggregate amount cleared through the RESERVE CITY CLEARING HOUSE from the opening day, December

26, 1915, to November 5 11ó,

inclusive, was, roundly, :;466,000,000, which was settled with balances
of only


The settlement of these balances entailed only

the shipment of currency in the aggregate of 06,300,000.
The bookkeeping method employed is simple, and each account
is closed at the end of the day's business.

Drafts cleared against

the banks are stamped, "Cleared through the RESERVE CITY CLEARING

HOUSE (date)", snd become debits to an account with the bank on which
drawn, termed,-"RESERVE CITY CLEARING HOUSE Account", and are credited
to the bank from which received, the difference being settled in one
of the ways indicated above.

Statements are rendered each day and are

accompanied by the drafts which have been cleared.

An abstract of-the

whole clearing operation is each day forwarded to all of the members of



the RESERVE CITY CLEARING HOUSE, which shows the results of the clearings by banks, debits, credits and balances.
It is, therefore, apparent from the foregoing that what was
termed, at its inception, an experiment, has proven to be a permanent

In response to inquiries addressed to each of the twentyeight banks which are members of the RESERVE CITY CLEARING HOUSE, replies were received from all except two, and are as follows:

"We have always been in favor of the Reserve City Clearing
House system, as adopted by the Federal Reserve Bank, and the more we
see of its operations the better we like it, as it enables the member
banks to concentrate and dispose of their funds in other reserve
cities with maximum dispatch, minimum expense, and at a uniform rate.
"As our balances with reserve banks in this district are

purely of a reciprocal nature, the system which will accomplish the
above results is, to our mind, of the greatest benefit, and should be

"17e have not made use of the facilities of the Reserve City'

Clearing House, as we do not think our business is of large enough
volume for us to join the Reserve City Clearing Hbuse plan.
"From what I understand of it though, I think it would be an

advantage to banks whose volume of clearings justifies them being a


member of the Reserve City Clearing House plan."

"That function performed by your bank fills a long felt want.
"I have heard it said that this facility which you offer the
Reserve City Banks benefits only the said Reserve City Banks, but, inasmuch as practically all the business between such banks in Texas is
created by drafts of the country banks, it can be readily:observed
that the system redounds to thg benefit, indirectly, of all the banks
in Texas."

"Our clearing arrangements are such that up to the present
time we have had very little occasion to use this system, except in
the handling of items on
"In this instance;--however, the establishment of this system

has been of considerable benefit to us, in that we are enabled to
items without the loss of three or four days


time, as was originally the case, and we are very much gratified now
at the prompt


that we obtain in this manner."

"116 are well pleased and delighted with the services rendered

-by the Federal

Reserve Bank

in conducting the Reserve City Clearing

We favor an .extension of the

service to such

cities in the dis-

trict as Sherman, Texarkana, Beaumont, Austin, Abilene, Brownwood,
Wichita Falls, -Amarillo, provided the member banks in said cities cai?

be induced



Tle far this plan

mainly because it has enabled us, withe::change,

out any inconvenience, to cm.vert into cash or convenient

ecess credit balances
it has enabled us to


with our various correspondents, in othel words;

get what we wanted -when we wanted it, something we

aould not always do before the service was inaugurated.

7e have many .other minor reasons for favoring the plan, and

earnestly hope you will continue it.A

'q an very decidedly in favoi of the Reserve City Clearing

"It enables me to transfer

on the daily sendings

the balances of this bank, based

to the vaiious reserve city banks, in about

thirty minutes time, whereas it formerly took from two hours to two
rIn addition to the

time saved, we

effect a big saving in

telegraph and telephone toll's and in interest on idle balances.

all these considerations, however, I have a

personal 731easure in

-operation of the aeserve City Clearing House, in

go home to my

that it


enables me to

fireside at night with my mental equilibrium fully con-


old rule this was

dealing ,aith one or two tovins w.dich I

utterly im3ossibla on account of

ITIhhgveh..4 a delight in writing one




clinintp.send aim our business and telling 'InLJ

POstiO4,:.for the-


today, de-

we are now ta.A

first time since I graced the banking business with


.My presence, to get our balances out of his town

without bsg2;tag,


lug, cajoling or bribing.

"You can put me down as a friend of the Reserve City Clearing

"We are very much pleased with the service you render through
the Reserve City Clearing House, and would regret to see the serviCe
discontinued, for the folooWing reasons:
"It enables our country correspondents to get immediate

Credit in their reserve account for their drafts on us and without the
necessity of our making 'phone transfers.
"It enables us to convert our


sendings into Northern or Eastern exchange on the following day, and
eliminates the former method of forced settlements by 'phone each day
with individual banks.
"Briefly, these are some of the advantages that accrue to us
from the operation of the Reserve City Clearing House, and, as stated
above, we should regret its discontinuance."

"lie are satisfied with the workings and benefits derived from
the Reserve City Clearing House.

"It appears to us that we get quicker action on our items and
the settlements therefor are more satisfactory than under our old arrange-

ment, whereby we had to have numerous telephone calls and in some cases
accept exchanges not desirable.
"As far as this bank is concerned, a continuation of this Clearing House will be pleasing."


"The services rendered by you through the Reserve° City Clearing House have been perfectly


in every way and have filled

a needed place in the settlement of business between the reserve banks

of the Eleventh


"MY reason for approving of your services in this


is that it makes settlement of all business transactions between the
several reserve banks at one place, either giving us a debit or
credit in the settlement.

Previous to the present arrangement, we

found different views among the reserve banks in Texas regarding the
value of exchanges, and in selling against balances with other reserve
banks in Texas, according to our books, we very often found that the
following day they had made


remittances to cover their

debit, and we, without attempting to be so, became their debtor.
had found it necessary, in order not to



mistreat our re-

serve city correspondents in Texas, to call them over 'phone to make
settlements, which, considering the number of reserve banks in Texas and
the number of our correspondents, was an added expense and also quite a
good deal of trouble.

"For the above reasons, I feel that the Reserve City Clearing
House has been of great benefit to us and that your good office has
given us splendid service in that department."

wt7e are exceedingly pleased with the workings of the Reserve City
Clearing House.


"In the first place, through its workings we are able to
settle our balances with our correspondents
cities as easily as we settle our
is, that it places us on

an equal


other Texas reserve

local clearings;

and another reason

footing with the Dallas banks, in

that our interior correspondents may send you, for immediate credit
in their reserve account, drafts on this bank.
tates business by


Briefly, it facili-

time and expense.

"Notwithstanding the fact that we have been a 'debit, bank
almost daily since the ReServe City Clearing Rouse began operation,
we should dislike to see it discontinued."

"We have found the Reserve City Clearing House gives us a
most excellent service.

Originally I was

doubtful of its value per-

sonally, but after its operation for a few months we are enthusiastic
regarding the facilities it affords us.

Primarily, it gives us the

opportunity to clear up each day all slow balances, and since the District

Clearing House plan was inaugurated,

it also affords

our corre-

spondents the opportunity of replenishing the reserves by sending the
Federal Reserve Bank direct drafts on this bank, which, through the
special arrangement with you, are payable immediately


the Reserve

City Clearings.

"I have observed, also, that it

causes us to carry a some-

what larger balance in our reserve account
otherwise, in order to

anticipate payments,

than would be necessary
and we

have been wonderfeag

if this has not been of some benefit to the Federal Reserve Bank, pre-


vided, of course, that other reserve city banks are likewise incline&
to keep their balances in excess of actual reserve requirements.
believe it



the fairest opportunity that could be offered to re-

serve city 'bank::: outs:de of the city of Dallas to maintain their former
connect ions without


to the interior member banks..

1rUe hLpe that no one is dissatisfied with the arrangement,, and

trust that tie Federal Reserve Bank does not contemplate its discontinuance."

"We are very well pleased with the service rendered by yourselves in the conducting of the Reserve City Clearing House."

No reply.

"We have no hesitancy in saying that we are pleased with the
service and Would regret very much to see it discontinued.

We have

found it a most direct and satisfactory method of clearing :Items drawn
on reserve city banks in this district, and if there are any disadvafttages connected with the plan we have not observed. thou.

"Not only do we approve of the plan, but we take pleasure in

you in connection therewith hi'

saying that the service rendered by
been 11.1 that could be desired.


"We are very much pleosed with the servxces rendered by
bank in conducting that deDartment, and sincere

tlult, that it will

be your desire to continue same.
"Cur maim rcason for being in favor of it is that it helps
-lear at 2ne the plincil'al cities of Texas, thus enabling all reserve
city and larger ba-,aks to get quick action on our daily sendings."

aWe are very much pleased with

It concentrates all

the result3 az obtained:


city balances with onlg

one day's delay, giving us available funds against which De can obtain
immediate action,




It does away with details which

subjected by reason of having to


we have


with some ten or twelve

banks daily.
"In the opinion of the writer, it was indeed a happy thought
that created this facility for the reserve city banks of this


While there might be a slight objection at this time by some, the per
cent, is small, and we believe it is almost negligible.

"We are pleased with

Reserve Bank in conducting


service rendered by tha Federal

the Reserve City Clearing House.

"While the Reserve City Clearing Rouse works a hardship o'L& us,
for the reason stated below, still we believe it is a good thing, as,it
enables the reserve city bonlcs to dispose of their State exchange at a

minimum cost, whereby



it might

otherwise be a burden to thau.

arguments that we could use z:gpinst it
Cost of the telograph expense*



rIe believe it gives Dallas the control of the exchange

rates for the district,


all rates are arbitrarily fixed.

Inasmuch as we are almost invariably a debit bank in

the Reserve City Clearinzs, it sometimes places a burden on us on ac-

count of having to settle the debit in the manner presciAbed by you,"

"We are at the present time pleased with the operation of the
Reserve City Clearing House, some of the advantages -which acc-mie there-

under to the participating members being.

savings of time effected by converting th,eugh this

gedium rather than through the District Clearing House.

The elimination of unnecessary correspondence, telegraphing and telephoning in order to effects the daily settlements with

several correspondents, and the facility of bejng able to concentrate
balances and adjust settlements with the principal cities of the State
in one transaction.
The operation of the Reserve City Clearing 1-1. use places

those member banks in the Texas reserve cities outside


I,alIas on

practically the same basis as the Dallas banks, in so far ae enabling
the interior correspondents to use their balances with us on the sat16


those accumulated with their Dallas correspon'lents.

"About the only criticism of the plan that occurs tc me at

this time is the fact that it practically places the Federal Reserve
Bank in a position to dictate the exchange rates of the State which,
owing to local conditions, differ widely at sJme seasons of the



although in this respect the burden is largely removed by reason of
the nrivilege of shipping the currency at the expense of the other fel.


"The service we are receiving from the Reserve



House represents a facility that eliminates a great deal of unnecessary work and expense through the transfer
tween reserve cities.


of excess

balances be-

It causes a check on any other reserve city to

be as acceptable in this city practically as a local draft.
"Before the operation of the Reserve City Clearing House, at

least an hour a day was required for telephoning and telegraphing and
writing, in order to move balances to available points.

This is en-

tirely done away with, and we know at the close of the business day
here, after receipt of your telegram, just how we stand everywhere.
The offsetting of drafts drawn against our sendings by drafts drawn
against the sendings bf other reserve city banks to Us eliminates a
great amount of work, and the settlement of the difference is cert%/11:y
a very easy process.

I believe that the Reserve City Clearing House

is indispensable, and I believe that the facility indirectly benefi'zs

every bank in the State.

"It has been customary with our best regulated banks to deduct
outstanding time on miscellaneous items received for conversion frym
the time the item was received until payment was made in local exchange.

"If a bank at the payment point enclosed in payment, as many
of them did, a draft on some other reserve city which presented diffi-


clilties in its ability to cover in convenient exchange, a further

period of three to four days was necessarily added to the transit time.
This is done away with7by the method which you have perfected, and the
bonefits to all arc apparent at once.

"The operation of the Reserve City Clearng House independently
from the District Clearing House permits the drafts of correspondents

of any reserve city bank in the district being immediately available upon
receiot at Dallas either for transactions with the Federal R:se:'ve Bank,

such as the Covering of District Clearing House debits, the shipment of

currency, transfera:xe of balances, or similar conveniences, and is another actual benefit both from a labor saving standpoint, mobility of
funds, and resulting in greater economy.

"The feature inaugurated by you


prorating the expense of

.currency shipments among the banks whose drafts necessitated shipping

to cover is wise and proper, and prevents objections being raised by
banks which run consistently debit in the Clearing House.
"The balance sheet which you send every day gives concise,

understandable figures of the position of each bank and each town after
the day's clearing, and they have provell of marked usefulness to u,.
"Vie are heartily-in favor of the continuance of the system
as at present conducted, and believe that every Federal Re7,er,re 7an7,-. in

the country would better serve their districts by the inauguration of
a similar method."


"The service which we are getting out of the Reserve Cit,).

Clearings at the present time is benefici;,1 to this bank, as we are
able to concentrate our Te::as reserves with you and make one settlement
3overing all the balances.

"It is true that we have at times, through circumstances, aar-

ried considerably larger balances with you than required by law, in
order to offset debits from day to day.
"We have, further, not been favored with the discount on our

purchases of eastern m.change that we were able to receive in former

"As a whole, however, we are pleased with the service of the

Reserve City Clearings, and would not like to see this service discontinued."

No reply.

"The service rendered under the Reserve City Clearing House

plan has been quite satisfactory to us, and we have no special criticisms to make."

"Vie have no suggestion to make relative to service rendered by
your brlik in conducting the Reserve city Clearing House.

"Will say, however, that we really do not see the necessity of
it, as the Federal Reserve District Clearing House seems to answer the


"We are very well pleased with the operation and benefits
derive& from the Reserve City Clearing House, excepting that our

mail from Dallas is almost invariably not received until the second
day after clearing, and that by reason of this delay our reserve
city accounts are showing excess debits and credits, as the case
may be.

"I am of the opinion that the Reserve City Clearing House
is entirely practicable for the benefit of reserve city banks in the
matter of their drawings as against each other for credits of their
reserve account with the Federal Reserve Bank, and its continuation
will be entirely agreeable to us."

"This bank is strongly in favor of continuing same, as we
find it a very acceptable means of converting our exchange on other
Texas reserve cities into available

cash or New York

funds, which, of

course, are much more acceptable to us than to have our money lying
around in other Texas cities."

"We are very well pleased with the services rendered, but we

are not in for of the system.

In fact, we only went into it rather

than appear contrary."

"I have no objection nor criticism to raise as to the manner
in which it is being handled by the Federal Reserve Bank of Dallas.


Ly objection is that the

does not operate to c--.11. 7.',Ivont?4;e here,

the objection that I raise waa3.1 probalOy hay', no Tbearing LI_ other

reserve cities.

into the arrangement in orler to give

T7e have gone

the plan a thorough test and to show our disposition nDt to be contrary.
but as it has been in operation some

time and

there appears to be no

decided advantage in our favor, it occurs to we that it would be U961635
-Dr us to remain in

the system.

"The service rendered by your bank in conducting this department is all that could be desired, and in fact before joining vie saw

the advantages that were to


gained by being a member, ari:1 while we

were riot a reserve city, through the kindness of the majority of the

reserve city banks, they permitted us to become a member of the

Reserve City Clearing House, and we find that it works to a very great
advantage to us and we feel satisfied to every other member.

One of

the greatest benefits to be derived is that it places us in position
where we can compete with the Tianks at Dallas by having drafts of our
interior correspondents paid -iit.hout any deduction being made for the

outstanding, and these
or other Dallas banks.

We do

tion Of the Clearing House,

available the same as if drawn on you

funds aie


know of anything against the opera-

V.-ust that same will be continued."-









467, 310 .53






5,25d, 885 .02

2,t4s..17.5 .31


Novalbor ti




2,4* 422.4G

Abefriber 4 .


4, 743, 134 .34


4353 36/.03




Sagardier 4


f)o teber


361.2 113, /3 13,104,41r4.:4



iNaisaiesita.35 au,iabows.a4

mom 7Z, 33, ULM

3 OS

AA) 34



111#4 $404,940,01/in




isatcy,4 of a drrot


INMin tea :n

tc. And dillairrel


wv-ant Azepolvill6


W7,613 1136,A1


41116,11/11,63n.45 $11111,11111,41444

amitouttos of th* oloarind

debit smjoreat pita We
realistic* of the mount of Aso
vr 47,2%'







American Exchange National Bank

Da:Llas, Texas


Central State Bank

Da7las, Texas


City National Bank

Da.das, Texas


First State Bank

DaJlas, Texas


National an of Commerce

Dalas, Texas


Security National Bank

Dallas, Texas

National Bank



Farmers & Mechanics National Bank

Fort Worth, Texas


First National Bank

Fort Worth. Texas



Fort Worth

National Bank

Fort Worth, Texas



National Bank

Fort Worth, Teac


City National Bank

Galveston, Texas


First National Bank



First National Bank

Houston, Texas


Houston National Exchange Bank

Houston, Texas


Lumbermans National Bank

Houston, Texas


National Bank of Commerce

Houston, Texas


South Texas Commercial National Bank

Houston, Texas


Union National



Alamo National Bank

San Antonio, Texas


City National Bank

San Antonio, Texas


Frost National Bank

san Antonio. Texas


National Bank of Commerce

San Antonio, TeXas



National Bank

San Antonio, Texas,


Central Texas Exchange National Bank

Waco, Texas


Citizens National Bank

waco, Texas


First National Bank

Waco, Texas

Commercial National Bank

Shreveport, La.



Fort V:Orth, Texas



December 9th, 1916.

My dear Governor Van Zandt:

It was very good of you to writ

e and send

me the description of the reserve city clea

g system,

which I want to take time to stud


to you send it on to the bank.

ur way to Washing

By this time yo'

ton to attend the Govern°

and I am grievously

disappointed to miss another.
The res

airily doing me a lot

of good and I h

eet again before

they get tired

ndest reagrd

nd thanking you for your


Sincerely yours,

R. L. Va
Dallas, Texas.

erve Bank,

Denver, Colorado,
January 26, 1917.

Dear Governor Van Zandt:

That bani< building certainly look,/fine, b

fear you may

shortly outgrow it and certainly hope so.

This is, as you say, a dang
a transient and coming from

are trifling.

Richard L. Van Z
Governor, F8deral

Dallas, Texa


hborhood, but


dangers of this District



January 30, 1917.

Hon. VI. P. G. Harding,
Governor, Federal Reserve Board,
Washington, D. C.
Dear Sir:

At the meeting in Washington l&st month the Governors
adopted the following ',rota,

"That it is the sense of the Conference
that when conditions in a Federal Reserve
District appear to necessitate the establishment of additional facilities in cities other
than that in which the Federal Reserve Bank
is located, such facilities should be provided
through the means of Agencies, rather than
through Branches, as contemplated by the Federal Reserve Act."

The Committee appointed to submit this reconmendation

to the Federal Reserve Board begs to report that the dimussion
of the topic by the Governors brought out the following reasons
on which the vote was based:

The establishment of branches would involve
large expense which, in the event several were necesnot quite prohibitive.
sary, would be almost


The establishment of agencies would be much
less expensive, the difference being sufficient to be
of vital importance.
The establishment of agencies would permit
of more uniformity of operation, all being under the
direction of the Federal Reserve Bank.
The establishment of branches with their
semi-independent operation would undoubtedly tend to
arouse conflict in policy and rivalry between sections.


The estab)ishment of eD'encies would permit of the
discontinuance of any agency or office which experience
proved to be unnecessary or unprofitable, while there is no
provision in the Federal eserve Act for the discontinuance
of a branch once established, regardless of how unprofitable or unnecessary that branch may prove to be..

The establishment of agencies would permit of
the expansion of any one or all of them into te.17,organized branches whenever experience demonstrated the expediency of such a course.

Respectfully submitted,





--COPY-February 9, 1917.

Dear Mr. Traman:
I beg to aci-mowledge receipt of your letter of the 3rd
instant with enclosures as stated, and I am also in receipt of a
copy of McKay's memorandum on the Seay plan.


reply prevents me from givYour request for a
ing this abject the careful thought and study which I would like
to give it before writing you, but a few suggestions have occurred
to me as being appropriate at this time.

There is much merit in the McKay memorandum, and
with most of it I am in full accord. We can not avoid the physical
settlement of some part of the net trade balances of the different
sections of the country at some time, and the Federal Reserve Banks
should find some way of reimbursing themselves far the cost of
necessary shipments. As a solution of this question I believe the
Federal Reserve Banks should make a nominal charge, of say five
cents per thousand dollars, against the member bank's issuance of
so-called Federal Reserve :axchange.
This charge, which could be figured up and assessed
monthly against each member bank, would create a fund probably sufficient to pay the transportation cost of the net balance which
might have to be shipped.
Second. The Gidney plan should be installed at the time
of, or immediately after, the inauguration of the immediate availability plan, in order to obviate the necessity of shipping funds
from one district to another or to Washington when it will be only
a short time until a reversed shipment will be called for.

The uniform drafts referred to should be obtainThird.
able only from a Federal Reserve Bank, w:aich could obtain them in
large quantities at a minimum cost, and whenever a member bank ap-

plied for a supply, the Federal Reserve Bank would be put on notice
that such bank intended to avail itself of the privilege of using
them, and the necessary credit investigation of the member bank
could be made.
Fourth. The uniform draft should be in such form that
an advice to the Federal Reserve Bank drawn upon, an advice to the
Federal Reserve Bank at which payable, a retadned stub, and the
original draft, could all be made at one writing on the typewriter.
This would insure legibility and would also avoid the liability
of any discrepancy between the draft and the advices and stubs.

The advice sent to the bank at which payable should be
signed by the officer signing the original draft (and the advice
should so state), and this vould obviate the necessity of filing
signatures with other Federal Reserve Banks.

The reasons for all of the above suggestions are very
obvious to me, and I regret that my time is so limited that I am
not able to elaborate on same for the information of the Committee.
At any rate, I believe the matters to be of sufficient importance
to be considered by all of the Governors, even if it is necessary
to have a conference with nothing on the program except "Federal
Reserve Exchange" and collateral subjects.
Yours very truly,

R. L.


Mr. R. H. Treman, Deputy Governor,
Federal Reserve Bank of New York,
New York City, N. Y.


May b, 1917.

Mr. R. H. Treman, Deputy Governor,
Federal Reserve Bank of New York,
New York City, N. Y.
Dear Mr. Treman:

At our directors' meeting on Tuesday, after I had read to
the Board such data as was in my possession relative to "Foreign Arrangements," the following motion was made, duly seconded and carried:

"It was moved by Director Sansom and seconded by Yr.
Smith, that the bank express its appreciation of the offer
ofthe Federal Reserve Bank of New York inviting us to join
in the arrangements effected with the Bank of England and
the Bank of France and such other arrangements as have been
or may hereafter be effected with other foreign banks, that
we appreciate the advantage and pri)fit to be derived from
such arrangements, and that the Governor of this bank be instructed and authorized to prosecute further negotiations
with the Federal Reserve Bank of New York, and as soon as
reasonably practicable to report to the Directors, in as
much detail as possible, what eentribution of capital will
be expected to be made by this ban, and also the facts in
respect to possible liability of the banks, and generally to
report in detail all such information as will enable this
bank to intelligently consider this matter."

In this connection I will appreciate it if you will furnish
me with such details as are available, in order that I may communicate
same to our directors. They are especially anxious to know the amount
of funds to be set aside as operating capital for the foreign department, what proportion of same the Federal Reserve Bank of Dallas will
be expected to furnish, whether that proportion is to be based upon
the amount of, our capital stock or the amount of our total resources,
and what character of business will probably be engaged in under present conditions.
As the officers of this bank, as well as its directors, are
not very well schooled along foreign banking lines, what may seem
you to be unnecessary details will probably be of great importance to
us, and I hope, therefore, you will make the information furnished us
as full as possible.


Thanking you in advance, I am, with kind personal regards,
Yours very truly,
(Signedf R. L. Van Zandt,





May 16, 1917.

MAY 2 2 1917
Dear Governor Strong:
I don't know of anything that has given me
greater pleasure recently than to have received a let-

ter from New York with your signature attached showing
that you have recovered sufficiently to be back on the

Replying to your letter of the loth instant,
I beg to state that I have received three bulletins

and two telegrams from Mr. Page, and have written him
thanking him for same and asking him to continue for-

warding such data as he thought might prove interesting or instructive to us.

Thanking you, and with best wishes for your
continued improvement, I am, with kind personal regards,
Yours very truly,

M. Benjamin Strong,
c/o Federal Reserve Bank of New York,
New York City.

Denver, Colorado,
Ma:i 22, 1917.

Dear Governor Van Zandt:

I have just returned from a short trip east and bring with me
copy of your letter of May 5th, addressed to


It can hardly

be answered satisfactorily by letter for the proposed arrangements with
the Bank of England really involve the whole fundamental
position between this country and England.

of the exchange

I shall try, however, to ex-

press the principles of the arrangement and What it may involve in financial commitments, just as we understand the matter in New York.
The Vederal Reserve Act in brief authorizes Reserve Banks to

appoint correspondents or agents Or open branches in foreign countries,
and through these branches or agencies they are authorized to do a very
limited banking


confined simply to opening deposit accounts,

buying bills of commercial origin, bearing two obligations and having
not more than 90 days and grace to run, to open similar accounts on their

awn books for

their foreign correspondents and to deal in gold in foreign


The object of this provision in the Act was not and cannot be
construed to give Federal Reserve banks tho right to do a general commercial foreign exchange business, such as opening commercial and travlers

credits, receiving deposits in foreign countries, buying and selling
securities, drawing long bills and handling Shipments of goods and securities.

Those functions have always been and should be exorcised by comer-*

cial banks and private bankerpt The object of the provisions of the Act


To - Mr. Van Zandt.

May 18, 1917.

is really to enable the Reserve Banks, in cooperation

with similar benies

in foreign countries such as the Bank of England, to stabilize rates of
exchange between this country and those countries

with which we


these relations, and to avoid excessive and uncontrolled shipments of

To illustrate the way this matter works, I will describe transac-

normal times when exchange rates are

tions such as would be undertaken in

normal and international transactions

are net subject to the

influence of

war trade and war borrowings.

Let us sae that there are large offerings of cotton bills in New
York in the Fall

which drives exchange on Great

Britain as low as 4.84

and that the cost of shipping eold from London to Vew York is 2i on the
pound sterling.

The difference between 'rant parity,

which is 4.8665, and

the rate for demand as above amounting to as much as 2.65 on the pound,

It is possible for American exchange buyers to import gold Cram London

when exchange is welling at 4.84, pay all the expense of freight, packing,
insurance, abrasion, incidentals, melting charges at the assay office and
loss of interest, and still have a profit of .65

on each puund starling.

Therefore, whenever sterling declined in our market saj beloa 4.8465, the
Reserve banks Could buy sterling exchange and be insured against any lees,
because the cost of withdrawing gold from London and laying it down in New
York would be no gneater than the cost of the sterling which it purchased.

The funds so accumulated in London would be invested in bills at the market
discount rate and some part of the funds doubtless left in balance with thb
Bank of ;;;Iagland.

So long as sterling remained at or below the level at

To - Mr. Van Zandt.

May 18, 1917.

Which gold could be imported, the

Reserve Banks,

within limits to be

fixed, would be buyers of exchange, and they could do so with assurance on

account of the guarantee of liquidation in gold at rates fixed in advance.
The normal courseo/xcbange in time would be above the gold importing point

wheregold might leave this country, say 4.89.

The Reserve Banks would

then liquidate their accounts in Landon and sell exchange in order to avoid
gold shipments.

You will observe by the arrangement outlined that it is contemnlated
that if the cost of exchange continued long in one direction or the other.
so that the Reserve banks had made purchases up to their limit,

instead of

allowing gold to move as it otherwise might we could still continue to buy
exchange, or to sell it as the case might be, and against our purchases the
Bank of England would actually ear-mark gold and hold it in safekeeping for
us instead of shipping it to this side; and in

the other case of continued

high rates, we would actually ear-mark gold on this side and hold it for
the Bank of England.

It goes without saying that the enormous

trade of our country at

the present time, together with the enormous loan transactions now being
embarked upon by the allied


and by our government, over-shadows

every other influence in the foreign exchange market and makes it impossible
for us to conduct anything more than nominal transactions with the Bank of
England, except possibly that we may agree to take the ownership of gold

to be ear-marked by the Bank of England for account of the British government
and held without shipment to this country until shipping conditions improve.
We see no prospect of large purchases of exchange at the present moment,


To - Mr. Van

may 18, 1917.


nor opportunity or occasion to purchase bills in large quantity in London.
The foreign exchange market is really in the hands of the respective governments, more than the bankers, and we must wait until peace and
of normal conditions

make it desirable

a restoration

to develop these new functions.

As to the probable amount of money to be employed, it seemed desir-


to affect authorizations in New York sufficient to meet unexpected

emergencies and our directors have placed a limit of 425,000,000 upon our
transactions of

that character for the


I, see no immediate ores-

nect of any such limit being employed.,
The above read in connection with the paers ia your hands I hope
will throw some light on the contemplated arrangement.

You will, I am

sure, make clear to the officers and directors of your bank the necessity
for treating this

rangement as of a most confidential character, that

being the obligation which we have entered into with the Bank of England.
Very sincerely yours,

R. L. Van Zandt, Esq.,
Federal Reserve Bank,
Dallas, Texas.


Denver, Colorado,
May 22, 1917.

Dear Mr. Van Zandt:

Yanrs of the 16th has been forwarded to me here and 1 hasten

to thank you for your nice letter.
I came back to Denver for a couple of weeks only and expect to

leave aain on Sunday or Monday to return to New York for an indefinite

Tlany thanks for your good wishes.

Very sincerely yours,

Ik L. 7a4,..iiandt,
Federal Reserve 3ank,

Dallas, 2exas.





Sent by




Vala ,andt, ;Nog.,
1616 ...ard4.44fifttilteet

November 29


sort mrth

learti with the cieelieet recret of the, terrible loos that ;mu have Juet sufi'ereci.
1181tell t,E) pond you °very Avssible expeire*ion teympathy.

rfS9 eeds R03. 34. of N. 'I,

March 6, 1919.


My dear Governor Van Zandtt
Per some time I have been interested with some friends in a study of some

of the problems of our national financial system and particularly to the possibilities 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 nest two years and as a result of contact with the financial machinery in ',Vashington.

Some of my friends believe the time is now opportune for a general attempt

to interest the people of the country in national financial reform.

The campaign for saving, thrift and sensible spending, incident to the flotation of Government loans has put many of our people in a receptive mood for further suggestions in these matters.

The national debt must be reduced and can only

be reduced if both individuals and the Government practice sensible spending.


is particularly true with the Government but cannot be made possible until scientific 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 t

be installed, a nonpartisan organization should be built up and a wise and sane campaign of publicity inaugurated.

It is a plan of that sort

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

In the meantime,

steps must be taken to prepare the publicity, and the personnel of the organization
must be developed in advance.
It is, of course, out of the question to utilize the Liberty Loan organizations as such for an enterprise of this character.

It does not, however, seem im-

proper for me to ask you if in your experience with the Liberty Loan, War Savings, or
other organizations in connection with the war, you have come in contact with individuals

March 6, 1919.


in your district who would be likely to be interested in this movement and who would

be qualified for service in such an organization and who would do so as a matter of



What 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 qualifica-

tions to enable him to become a leader of the State movement, some ability as an
organizer, should be public

spirited, able to

it, and should be rega-ded locally as without

the people of

the confidence in general of

grasp the subject and willing to study


prejudice or purpose, and have

the State.

In addition to state directors, similar organizers must be appointed in the
various counties and principal cities.

indebtedeto you

I shall be greatly

if you can let me have suggestions and

names of men in your district for this work without, however, mentioning the matter
You may know them well enough to make definite recommendations not only

to them.

because you came in contact with them in Liberty Loan matters, but other public
spirited activities


which you are acquainted or connected.

This is a matter in
greteful for your assistance.

which I have a

strong personal interest and will be

At our meeting in Washington on the 20th, I hope to

have an opportunity to refer to this matter more specifically.
Sincerely yours,



R. L. Van Zandt,
Governor, Federal Reserve Bank of Dallas,
Dallas, Texas.


April 3, 1919.

Dear Mr. Van Zandt:

I am anxious to get suggestions from you as to some one to do some work

in New .1exico in connection with a proposal now being shaped for Federal legislation
designed to establish a finaneial budget for our Government.
The work

required will not be very onerous, but it will need the services

of a man who can develop an organization for the purpose of some little education-

al and publicity work to bring about a better

understanding of this subject.


will be necessary to raise a small amount of money, and, generally, to carry out
the program which will be laid out by the organization at the New York headquarters.

It needs the serviaes of a man who is

interested in the economic aspects

of the Government's finance, and who is sugficiently
be willing to devote some time and energy

would be preferable



in the subject to

bringing about an improvement.


to have some one who would be capable of making an occasional

address on this subject, and who would be

willing himself to study and understand it

by an examination of literature which will later be furnished.
I will greatly appreciate any help you can give me in this connection,

by suggesting anyone you think could undertake this work
iaithfully yours,

R. L. Van Zandt, 3sq..
Governor, Federal Reserve 3ank of Dallas,
Dallas, Texas.



APR 2 2 1919

April 13, 1919,

Dear ar. Van ;:;andt:

Thank you for your further le er of the fourteenth

in regard to.laaa.t.zuusentation

in hew ;dextoo.

It is very

good Of both you and hr. Lawder to make these helpful sug-

61ncerely 'yours,

)4 R. L. Van'.;andt, Esq.,

i;overnor, Eederal Reserve Bank of Dallas,
Dallas, Texas.




April 29, 1921




Dear Governor Strong:

I am very anxious to have, for the walls of
my office in tills splendid new building, a photograph
of each of tne 4overnors of the Federal Beserve Banks.
Therefore, if you do not consider my request
too presumptious, I will greatly appreciate your sending
me one of your most recent photographs, Woich i would
especially like to have autographed across the front
where it will show in the frame.
If you do not consider that any immediately
available photograph does you justice, you can
know and I will explain to my Visitors that toe wartime and "deflation" problems have wrought the change.


Jeriously, I am exceedingly anxious for the
picture, and also want you to avail yourself of the
first opportunity to cone down and see our quarters
before the new wears off.

With warm personal regards, I am,
tours very sincerely,

Mr. Benj. Strong, Liovernor,
Federal Reserve Bank of iNew York,
New lork, N. Y.



Dear Governor Van Zandt:

I am sending you


picture as re^ueeted in

yours of April 29, and feel very much honored that you

should wish it.

it Inv not be a very good picture,

but it will certainly be improved when it is hanging
with the pictures of the other Governors.

glad indeed to vend it.
Sincerely yours,

L. Van _4n41, Esq.,
Governbi.;-Federal Reserve Bank of Dallas,
Dallas, Texas.

I am very



May 7th,1921.


Dear Governor atrongl

I am just in receipt of your letter of

the 3rd instant, together with copy of your photograph,
and I want to thank you for your courtesy in forwarding
the same to me.

With kind personal regards, and again
thArking you, I am,
'Sincerely yours,

Hon.Benj.Strong, Govurnor,
Federal Reserve bank of ',haw York,
New York, N. Y.

May 24, 1921,

rear Governor Van Zandt:
This will serve to introduce to you Mr. K. ahshima,
-Assistant Agent of the Sumitomo Bank, Ltd. of Nev, York, who

is visiting the South and will give some thought and study to
the financing of cotton.

Such courtesies that may be extended to Mr. Ohshima
will be greatly appreciated by,
Yours very truly,


R. L. Van Zandt, Esq.,
Governor, Federal Reserve dank of Dallas,
Iallas, Texas.


May 24, 1921.

Dear Governor Van Zandt:

The enclosed is a copy of a letter of introduction, which will be presented to you by Mr. K.

Ohshima, Assistant Adent of the Sumitomo Bank, Ltd., 3f
New rork, who contemplates visiting the South in the
near future.

I shall appreciate it if you
courtesies as may be consistent with


extend such

the object of ir.

Ohshimass visit.
With many thanks, and kindest regards,
Yours very truly,

Benj. Strong,


R. L. Van_Zsadt, Eec.,
Governor, Federal Reserve Bank of Dallas,
Dallas, Texas.
En c.

GW%. The Sumitomo Bank, as you doubtless know, is one of the most

responsible banks in Japan.

September 14, 1921.
Dear Governor Van Zaddt:

You will recall that about two years ago we had some correspondence in
regard to the work of the National Budget Committee.

In part, at least, passage

of the budget legislation by the Congress was due to the work conducted by that
Now that the basis of the budget system has been adopted by Congress,


our organization is endeavoring to cryetallize public sentiment for the support
of the program of governoent economy and thereby to insure ;srmaneot success for
the now national budoet system.

are seeking to extend this work by selecting, so far at oossible,
bankers to accept active chairmanships in various of the more important cities,
simply to carry on work which will be laid out flor them by the national committee.
The scope of the work is described in the enclosed memorandum.

Can you suggest representative men, preferably bankers, who might be

willing to accept such appointments in the cities of Dallas and Fort Worth.

At the present time I shall only ask you to suggest names, but later on
possibly you would be willing to oomunictte with them directly and further our
object of having thew accept these appointments.

If for any reason you think it unwise to make these suggestions, will you

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

R. L. Van Zandt, Eto.,
Governor, Federal Reserve Bank of Dallas,
Dallas, Texas.
BS: Mg

en c.





2417 MdKinney Avenue.





JAN! 3 0 1922



January 21, 1922.

Dear Governor Strong:

Ever since January 7th, on which date I was
ousted from the position of Governor of the Federal Reserve
Bank of Dallas, I've wanted to write and tell you of its
cause but was reluctant to burden any of my friends with
my troubles. Having heard that the affair is being misrepresented by others I have concluded to write you.
As you have doubtless heard, considerable friction
has long existed between the Chairman and myself, brought
about through his mistaken opinion that he was the chief
executive officer of the Bank as well as the representative of the Board. He had an exalted idea of his power
because he was an intimate personal friend of E.EHouse,
T.W.Gregory, Albert Burleson, John Skelton Williams and
Thomas B. Love, and through the last tyro, of McAdoo.

This friction was the cause of much concern with
the Federal Reserve Board and
certain of our dire
were called to Washington about it as well as the Board
having sent various representatives here at different
times to investigate the matter.
The result of all
these investigations was practically the same and last
July Ramsey was called to Washington and told, in MD
uncertain terms, just where his authority began and ended. The Republican party was then in power and, with
all of his Washington "pull" gone, he was much disturbed
over his tenure of office. Consequently after his return to Dallas everything worked, apparently, as smoothly
as it does in the Federal Reserve Bank of New York.
About that time the leading Republicans in Texas
began to lay plans to get rid of Ramsey and I was approached by several of them and urged to accept his
place when they succeeded in getting him out. To each
and every one of these I gave the same answer, which
was to the effect that I considered my position a higher
one and that, further, I did not like to see politics
play any part in the operation of the Federal Reserve
When Ramsey's re-appointment was being conSystem.
sidered by the Federal Reserve Board I wrote to Governor
Harding and told him that there was absolutely no existing friction between Ramsey and myself, and that we


could work harmoniously together.

Shortly after this Ramsey was re-designated Chairman
and Federal Reserve Agent for the year 1922. Upon receipt
of advice to this effect, early in December, Ransey's
entire demeanor abruptly charged.
He no longer cam
my office and whenever he had any operating matters to
discuss he went to Emerson with them.
Our Directors met on Saturday, January 7th, and at
the morning session my report was read and disposed of,
all of my recommendations were acted upon and then the
Board adjourned for lunch.
After lunch they went into
executive session for the purpose of electing officers,
and at half past two Directors Scott and Sansom came to
my office to inform me that B.A.McKinney had been elected Governor over me by a vote of four to three.
The three directors who voted for me, (Scott,
Sansom and Newsome), were as much surprised as I was over
the result, and then noted that,for the first time since
the Bank was organized, Ramsey had required a secaet ballot. It appears that the whole thing had been worked out
in secret by Ramsey and the directors that he controls.
Mr. Kell, who took the leading part in the meeting, has
evidently been given misleading information as , after
the vote, he stated that I had spent an hour and a half
begging Mralitchell to prevent the re-appointment of
Ramsey, which statement was absolutely false.

A few days ago one of my most intimate friends
called on UcKinney, the new Governor, and asked him
what the directors had against me.
the effect that there was absolutely nothing except
that "Judge Ramsey heard that Dick was after his
scalp so he went after Dick and got him". As a matter of fact there was no truth in the statement that
I was "after his scalp", the real reason beingbecause
he could not influence me to concur in granting special
favors to banks awned or controlled by his personal or
political friends and that, with due consideration for
his opinions, I insisted on thinking for myself and on
acting according to my best judgement.
Ramsey has always been a politician, his only
banking experience having been as president of the
National Bank of Cleburne, Texas, which failed a few
months ago when his successor, who was his personal
friend and whom he had selected, absconded, short
over a million dollars and with all of the Liberty
Bonds which had been left with the bank for safe-

His reply was



Ramsey had stated to me many times that he had
rather see any bank in the United States fail than the
National Bank of Cleburne, and my reluctance to extend
to it unwarranted lines of credit was one of the principal causes for friction between us.
Just a few
nights before President Norwood skipped out, while we
were having a conference in my office to see whether
anything further could be done toward saving the bank,
I made the statement that the matter could be easily
handled if we were certain that we were dealing with an
honest man, whereupon Ramsey started at me with an open
knife, with the remark that I could not call his friend
dishonest, and that Norwood was just as honest as I was.
McKinney, Emerson and others were present when the
above incident occurred.
ed that the files of the Comptroller's Office inlWashington will show that Ramsey blocked criminal prosecution of Norwood over a year before the bank failed, and
if that had been allowed to proceed the creditors of
the National Bank of Cleburne would have been saved hundreds of thousands of dollars afterward stolen by Norwood.
I did not mind losing the position, for at any time
during the last three years I would gladly have resigned
had I had any intimation that such action mould not have
been looked upon as the shirking of duty and responsibility in time of unusual stress.
over the dirty underhanded manner in which my retirement
was brought about.

I have made no plans for the future, and am really
not in a big hurry to make any, but as I have saved very
littletand have mat with some recent reverses, and must
live, it is imperative that I find something to do which
does not require a substantial investment, and if there
comes to your attention any opportunity of which you
think I maght be able to take advantage, I will greatly
appreciate it if you will call it to my notice and will
speak a word in my behalf.
No doubt my friends, the other Governors, will be
at a loss to understand why or how I was not re-elected
to the position which I have held for seven years, and
therefore, I will appreciate it if you will tell any of
them you chance to see, a little of my side of the case.

I h

I do fee


As an evidence of the fact that I still stand
pretty well with some of the people down here in this
Democratic stronghold, the Fort Worth Clearing House,
(my old home town), gave me a complimentary dinner on
the same night the Dallas Clearing House gave McKinney
a dinner, and to that dinner several of our most prominent Republicans were invited. It was a private affair
and speech was somewhat unbridled, and all present were
vehement in their denunciation of the manner of my deposal. At the conclusion of the dinner they presented
me with a very handsome match and chain as a memento of
the occasion.
When you next see "Jimmy"Wadsworth please tell him
of my removal and request him to write to our mutual
friends, C.C.Littleton of Fort Worth and W.H.Patrick of
Clarendon,Texas, for particulars.
Governor Strong, if you had not written me such
an inspiring and friendly letter during my troubles, some
three years ago, I would not have presumed to burden you
with my affairs now, so you have only yourself to blame
for this rather lengthy effusion.
I am attempting to do my own type-writing, therefore, you must not lay the blame for incorrect spelling,
grammar or punctuation, on any secretary or stenographer.

When you have the opportunity I shall appreciate
your writing to me, and in the meantime I hope you will
not forget to keep your 'weather eye peeled" for any
opening which, in your opinion, I might be able to acceptably fill, it makes no difference in what part of
the world.
With sincere regret at the occurrence which has
brought about a termination of my work with you in the
upbuilding of the Federal Reserve System, (for I am,
still deeply interested in its development), and with
the warmest personal regards, I am
Sincerely your friend,

Benjamin Strong, Esq.,
O Federal Reserve Bank,
New York.






January 30, 191?,.

My dear Van Zandt:

It was good of you to write me about that happened at the lest electim
in your bank.

As you may not have heard, I have been laid up in the hoepital

for a couple of months, had heard none of the news, and had not the slightest
intimation, no more apparently that you ha, that any Oen 4a3 contemplated to
put in some one to take your place.

Co long as I an a meobor of the Eyeter, I must not of course be guilty

of passing judgment in a matter of this kind, especially when, as you realize,
the only statement of the situation which I have is that received from you.


the otter band, I want you to know that the or:intents of your letter filled me
with amazement.

During our years of association, which have been cc agreeable

to me, I can think of nothing in your attitude toward the System, or toward your
associates, and especially toward me, which would give me ground for feeling

that you had either incautiously, ignorantly, or deliberately been guilty of any
act which would justify such a cavalier and summary dismissal from the service
as you seem to have received.

If you have been guilty of anything of that sort,

which I cannot conceive to be the case, I have very much misjudged you indeed.

The reason why I write this so explicitly is because while I had once or twice
beard that some friction did exist between you and one of your aseeciates, which

all of us that heard regretted, so far as I can recall I am not conscious of
hearing one word from you on that subject.

At least so far as our relations

are concerned, I cannot help but feel that you have been discreet, and if in
another direction you have been less discreet, I am indeed very sorry.

B. L. Van Zandt, Esq.

Jan. 30, 1922.

That now occurs to me especially is to answer in some fty the last part

of your letter, in a Nay which mill be satisfactory to you.

I cannot see an

old pal go down as the result of this unfortunate occurrence without making an

effort to the extent of my ability to see him comfortably fixed.

To-day is my

first day at the office, where I could only spend the morning, and I am still

unable to put out any feelers in your behalf.

in this district for an experienced banker.

There are always opportunities

The thing is to find him, and the

right one.

On recaITt of this letter, won't you be good enough to *rite me as

explicitly as

you can, juot iht you have in mind as to position, work, etc.

Also whether if an attractive opening arose, would you feel like going out to

I am not sure what the situation is now, but some months ago General

Nod ranted a good man very badly.
Once more, let

me repeat my very earnest regret

that this unfortunate

development took place, that it has affected you BO adversely, and my sincere
hope that you sill

soon rind a satisfactory and profitable berth, where you will

be happy and make good progress.

You may count upon my having an eye and an

ear wide open for something for you right along.

associates at the bank about it.
Tours sincerely,

Richard L. Van Zandt, Esq.,
2417 McKinney Ave.,

Dallas, Texas.

I have already spoken to my


AC:KNOW% nEtfsee-P

[11713 c9 1922

2417 MOKinney Avenue.

February 6, 1922.

Dear Governor Strong:
Your letter of the 30th ultimo was a great
comfort to me, and I want to thank you for it and for the
kindly interest expressed therein.
I was much surprised and very sorry to hear
that you have been laid up, and sincerely hope that you
are now rapidly regaining your health and strength.
seems to me that you always try to get back to your full
capacity in too big a hurry, without taking up your work
gradually, and along this line you should attempt to follow the good advice which you would give to others whpb
might be in your own position.
Big financial minds,
such as yours and Paul Warburg's, are too rare and too
valuable to this Country for us to permit the owners of
them to overtax their physical capacities without, in
some manner voicing our protests.
In other words, we
want them held in reserve for use in cases of emergency,
just as banks should lookup= the rediscount facilities
of the Federal Reserve Banks.

In reply to that part of your letter which
has reference to a position for me, it might be well for
me to give you a brief outline of my past experience.
Am fifty years old, and at present single,
although have planned to take unto myself an helpmeet
sometime in April, and this is the principal reason
why I am so anxious to get into something out of which
.1 can make a comfortable living for two.

Graduated in civil engineering in 1890, and
after one post graduate year at Rensselaer in Troy, began
work as a messenger in the Fort Worth National Bank of
Fort Worth, Texas, of which bank my father was, and still
is, the active president.
After ten years in that bank
I spent two and a half years in the Treasury Department
of the Philippines, under Mr.Taft, returning to the States
in 1903 on account of the health of my wife.
Was appointed by Comptroller Ridgely as Receiver of the Farmers
National Bank of Henrietta, Texas, and later as Receiver
of the American National Bank of Abilene, Texas, and in
May 1905, without solicitation or application, was given



commission as National Bank Examiner, which position I
held, working in Arkansas, Louisiana, Texas, Tennessee,
and Oklahoma, until I was elected Deputy Governor of the
Federal Reserve Bank of Dallas on October 29, 1914.
Appointed Acting Governor in February 1915, and elected Governer on

Having lived for two and a half years in
Manila, that is not an unknown country to me, and on the
attractiveness of the position, the character of the
work, and the possibility of taking a vacation in the
United States occasionally, would depend my decision
with reference to the matter mentioned by you.
I have nothing definite in mind, but so
many New York banks and other financial institutions
have large interests throughout the South and West that
it occurred to me that some of them might want a man
who had practically first-hand information concerning
While I
conditions in thoseparts of the country.
have had a lot of banking experience it is what the
New York banker would term "country banking", as I
am practically ignorant on such matters as Foreign
Banking and Foreign Exchange and international matters.

Again, the thought has come to me that in
the re-organization and resumption of business of some
of the large Copper or other mining companies, there
might be positions to fill where a technical knowledge
of the game was not necessary, but where my general
experience might enable me to fill the requirements.
In other words, I am rather in the dark
It would probably be a comas to anything specific.
paratively easy matter for me to get lined up with some
bank in Dallas, but I could never be happy here and am
anxious to get away from the place.
While, as stated, I am anxious to get my
definite arrangements made as soon as possible, it
would best suit me not to have to assume mg regular
duties until about the first of May or later, because
the lady who has promised to become my wife has never
been East and I had promised her that we would see
New York and Washington on our honeymoon. However,
she is a very sensible woman and has my interests at
heart, and would be willing to release me from that
promise and post-pone a visit to those places if it
were in any way necessary or desirable.



I forgot to state, when talking about Manila,
that as it was not necessary at the time, I did not learn
the Spanish language. I tell you this because it might
be inferred that a person who lived in Manila for nearly
three years would know the tongue.

Again I thank you, Governor Strong, for your
very kindly interest in my behalf, and for the expressions of confidence contained in your comforting letter.
With sincere good wishes for a rapid and
permanent improvement in your health, and with warm personal regards, I am
Sincerely yours,

Benjamin Strong, Esq.,
cio Federal Reserve Bank of New York,
New York City.

February 9, 1922.

My dear Van 7andt:

Thank you for your nice letter of February 6.

I am

really taking care of myself, and it is good of you to be interested
In my doing so.

I shall put out some feelers right away, with a view of
a possible position, and I an inquiring also in regard to the
Philippine matter, advising you of anything I learn.

In the mean-

time, good luck to you.
I am greatly interested in 'that you firite about the other

venture which you plan for April, and send my sarmert congratulations
and good :Ashes for your happiness.
Sincerely yours,

L. Van Zandt, Esq.,
2417 McKinney Ave.,
Lallas, Texas.

February 18, 19

dear Van Ze.rdt:

The Prerident of rne

cur banks i.n Neer York, vho ecrae

time er.c advirsd fre that he -ight, need

mar. familiar mith country

banking, bar just ,fritten me that his staff is full. Cir the (.-.-ther
hand, I learned that ineuirier being made as to "bather there
may nr.,t be atme imperta.nt

I 'rill advips ycu

cr in th Philipeinee '.1Thich you could

the result.

my c.esuciates have the' situation in mind as yell.
as 1, and i-P -,nythin,g devel; ps y:s.0 may count upon hearing from me.

Yrs,urs P ne r

R. L. Va.n Zandt, Esq.,
41.7 kicKinney Ave.,
Da.11a.s, Texas.




2417 McKinney Avenue


['JAR 4


February 27, 1922.

My dear Governor Strong:
I have just returned from a little
trip to Kansas City and find your letter of the 18th, and
want to assure you of my appreciation of the interest you
are taking in my behalf.

A group meeting was held in Kansas City on
the 23rd and Governor Harding advised me that he would
like to see me there at that time, so of course I went.
Had a very satisfactory and gratifying talk with him
during which he informed me, confidgntially. that all
of the members of the Board, and especially the Comptroller, were "sore" at Judge Ramsey and that with anything tangible on which to base it, they mould request
his resignation and immediately appoint me Federal
Reserve Agent to succeed him.
Please consider this
as being strictly confidential, but the next time you
see Governor Harding ask him about the Dallas situation
and I feel sure that he will give you some interesting
information with reference to it.
He also told me that the Comptroller was
trying to work out some plan to appoint a "resident
chief national bank examiner", who would be located in
Washington and whose duties would include the close
supervision of the examinations of all banks on the
so-called "sick list", and that he hoped to be able to
make the position one which might prove attractive to me.
If you have any thoughts or suggestions along this line
I hope you will talk them over with L. Crissinger the
next time you are in Washington.
Governor Harding also spoke about the
probability of a man being wanted to head the Philipine
National Bank, but I wouldn't want to go there unless,
as previously stated, the position was made very attractive to me.

The four directors who voted for McKinney
for Governor of the Dallas bank, signed a statement and
had it spread on the minutes and furnished me with a
cony. Its wording is, in my opinion, very weak and only



states that, so far as they kno-74 I am not a crook.
I am enclosing a copy; what do you think of it?

With the present unsettled financial conditions, lack of earnings of the rail-roads, etc., it
occurs to me that some well paying receivership might
develop such as the one now held by Delano. Do you
think there would be any chance for MB in that direction?
I hope you will be certain to talk over the
Dallas situation with Governor Harding as he told me
many things which I do not feel at liberty to write you
about, and yet I am anxious for you to know them.
It was a disappointment to me to be in the
same town with Fancier and Wills and not be able to see
them, but as they were in a conference and as my visit
was a secret, it was not possible.

Again thanking you for your efforts in my
behalf, and with warm personal regards, I am
Sincerely yours,

Benjamin Strong, Esq.,
cio Federal Reserve Bank,
New York.


JX0...R2T iW4 =Ma
1.Z.IlialLid.21,4 WOK OF WW1. PJOIWY 12. 292C.

tho pevormao of tho veL:tiona of forno..
GOVUIMOr ,-;.) L. Tatiana

tha $2odora1 ii0DOM DOW.

of Dallas, tho dirOOtorp victim for ,z0


IS tho ououassor to r. Van ::andt, rh000 tom of offioo
1104 ozA.roti,o

iootocir.f.e 04 193, horobj doolaro

thog iISSo1o3.y t4)

OA that 16111 latorocto

of oar Institution zicht bo Wet sorvDd nnd stah notion
vmm not intondo& amurroflootion on r. irun ndt or
M p Intocrity, honooty or Want/0

Tho Dowd hao for that cotlaomn tho Unaopt folincs,
on4 riphop for lam tho lama mommaro of momomp that

ablittp warestan,"
brolv ourtify that tho abovo 1p m truo amit

J. J.

mare$ otstnnt aced by lbws. Rpm* Roll,

' ILlIburlionon, M. 0e

ootan mna Lovoll


appoorinG in tho 2intttos o tho ::.lootinc of tho Nord
of Dirootoro,-,2otiorm4 Sitoorvo "

of Dallas, hula

robraar7 It, taaL.

00 Hail



March 4, 1922.

My dear Van Zandt:

YoLr note of the 27th ultimo as on my desk this
morning on my return from dashington.

Governor Harding

mentioned having seen you in Kansas City, but 'le were
exceedingly busy on some Federal reserve bank matters and

the conversation vent no further than that.

I de hope you

sill get a good position and one ISich will enable you to
employ your experience and ability which is a great asset.
I shall have it in mind and have a weather-eye open for anything that turns up; so keep me informed if you make any
arrangements yourself.

7ith beet regards,
Yours sincerely,

Richard L. Van Zandt, Esq.,
2417 McKinney Ave.';

Dallas, Texas.



2417 McKinney Ave.

JUL 1 2 1922

June 28, 1922.

Dear Governor Strong:
I am just in receipt of a letter from my brother
in the City of Mexico, from which I quote the following
"The Morgans and Speyers of New York, in
conjunction with financiers of England and
France, all of whom are holders of Mexican Bonds
and State securities, are working on a scheme to
have Mexico institute a Banking System similar
to the Federal Reserve System of the United
States, and the idea is well received. My
opinion is that such arrangement will be
amicably concluded during the present visit
of the Secretary of Treasury of Mexico, in
New York. Naturally the organization as well
as the initial financing of such an organization, will be under the control of the financiers mentioned, and will so continue until
Mexico is in position to assume all control
and responsibility of the Institution.
I will appreciate it if you will let me know whether
or not you have any definite information with regard to the
foregoing, and if so, whether the plans being considered provide for a representative, or representatives, with knowledge
of our own Federal Reserve System.

Also, if such be the case,

whether in your opinion I could obtain a position with the



My brother, who is now connected with the Sinclair
Oil Corporation, has lived in Mexico for nearly thirty years
and is thoroughly familiar with banking and business practices,
as well as with the laws of that country, and could render me

valuable assistance in my efforts to discharge any duties which


be assigned to me.

Assuring you of my appreciation of your many courtesies, and trusting that I am not


too much of a burden

upon you in asking you to look into this matter for me, I am,
with warm personal regards,
Sincerely yours,

Benj. Strong, 2sq.
care Federal Reserve Bank,
New York City.


July 12, 1922-

Dear Van Zandt:

I am only now able to reply to your note of June 2, because
it took some time to make the inquiries
you something of the facts.

necessary in order to advise

lithout going into a long story, I am

told that there is nothing in the suggestion of which you have had an
account from your

brother; that the people in Neil York who have been

quoted as interested in the

System in Mexico

that they sill



scheme to

establish a

really not interested:
One of

mation direct; and the



and that it ie not likely

the firms ycd mulled gives me Vas


other firm, I am advised, is already interested

in the Sank of Mexico, which is largely controlled abroad.

I doubt very much whether
but if you get more definite

there is arrithing, tc

fo rd and want further assistance here,

please do not hesitate to write me.
Yours sinc-rely,

Richard L. van ,Landt, Esq.,
2417 McKinney- lye.,

Dallas. Texas.

come of this matter,




1301 Penn. Avenue,
Fort Worth, Texas.





October 31, 1922.

Dear Governor Strong:

The death of Judge Ramsey on last Friday
creates a vacancy in the position of Federal Reserve
Agent at Dallas and I would like very much to have
that appointment.
I realize the fact that you do
not want to take any part in the affairs of other
Federal Reserve Banks, but I'm hoping that you will
not consider it unseeming or out of place for you
to incidentally say a personal word in my behalf
to Secretary Mellon at your earliest opportunity.
The Secretary does not know me, having
only met me once or twice at conferences, and then
in connection with meeting a lot of the other Federal
Reserve officials. I can get the endorsement of most
of the prominent Republicans in this State, but was
led to believe, while on my last visit to Washington,
that such endorsements would not have much weight
with the Board.
I have been told, that now that
Governor Harding was not on the Board, a suggestion
from Secretary Mellon would swing the votes of the
members, but unless you will consent to speak to him
for me, I have no means of getting my name before him.
It should be borne in mind that the death
of Judge Ramsey removes the so-ealled "friction" which
was used as a basis for my removal when McKinney was
elected Governor last January.
I will certainly consider it a very great
favor if you can see your way clear to do this for

Mr. Platt has publicly announced that the
vacancy will be filled as soon as Congress convenes';
thezefore, anything that is done must be done quickly.
Can you offer me any suggestions which
'might prove helpful to me under the circumstances?


With warm personal regards, I am

y our s

/731C dr(
lion. Benjamin Strong,
c/o Federal Reserve Bank,
New York City.



November 3, 1922.

My dear Van Zandt:

Your note of October 31 is just received.

to write directly to Governor Platt.

My advice would be

i do not think I should write a

letter in regard to an appointment in anyjederal Reserve Bank.


know how scrupulously-carefUl I have always tried to he in such matters,

and 1 do not want to be guilty of any infringement of this rule.
I may, however, have opportunity for a word with Mr. Mellon

the next time I am in Washington, and if so I will be glad to speak to
him about it.

In the meantiwe take my advice and get right at it by

writing directly to Mr. Platt.

Of course, if Governor McKinney desires

such an appointment made that would be most helpful!

With best regards, believe me,
Yours very truly,

Richard L. Vm_Zandt, Esq.,
1301 Penn Ave.,

Fort Worth, Texas.


'4 ,:jaNit

1301 Iennati

Ft.Worth, Texa


February lb


Dear Governor Strong:

On yesterday I heard that Grace & Company
of New York were contemplating increasing the export
financing part of their business, paying some attention to the cotton and grain exports of the West,
.South and Southwest, and that they were quietly looking for a man from this section of the country to add
I'm wondering if you are acquainted
to their force.
with any of the members of that firm, and if so
whether or not you could ascertain the correctness
of the report.
I do not know very much about the character
or standing of Grace & Company, but if, in your
opinion, these people are all right, I would like to
have a chance at the place.
If they are after such a man, could you
suggest my name to them in such a way that would not
make it appear that I was making an application for
Of course, I would not want you to even suggest
me for a position in which you did not feel sure
that I could make good, bearing in mind that my
knowledge of the details and modus operandi of handling foreign bills is very limited.
However, I am pretty well, acquainted with
the banks, bankers, and business of this entire
section of the country, and that knowledge might
offset the other and qualify me for the position
they are contemplating filling.

I have not yet succeeded in obtaining a
position, as every opportunity presenting itself has
required a substantial investment which I am not in
position to make.
If you can do anything for me along the
above lines, it will be greatly appreciated, and I
trust that I am not imposing too much on friendship., .


By the way, on the suggestion of friends
I withdrew my application for the position with the
Dallas bank made vacant by the death of Judge Ramsey,
C) and joined the Republican leaders in Texas in recommending W. W. Collier, former State Bank Commissioner,
The Federal Reserve Board has not yet'
for the place.
appointed him and may not do so. I believe Mr.klatt
and Governor Criesinger, (both friends of mine) could
get me appointed if they were properly apiroached.
Could you do anything for me there? The objection
offered to my name was that I could not get along
with the directors who voted against me for governor,
but one of them is now dead, and two others are no
longer directors. Ir. Kell is the only one of the
present board with whom I am "non persona grata", and
that is.because he handled Ramsey's frame-up in putting
me out.
Under the circumstances I do not feel that
my work there would be in any way handicapped, but I
am not in position to personally bring the situation
to the attention of the Reserve Board.
I trust that your health has greatly improved since I last saw you.
Mrs. Ian Zandt joins me in kindest regards
and beet wishes,
Sincerely yours,

Benjamin Strong, Esq.,
c/o Federal Reserve Bank,
New York City.




February 20, 1923.

5r. R. L. Van7audt,

1101 Penna. Av.,

Fort Xorth2 laxas.
Dear Cir:

Mr. Strong has asked me to let you


thnt he

has received your letter of February 15 and is only sorry that
he is not, at the present time, able to do anything in connection with the matter


mention, such as te would like to.

Unfortunately, he has not been feeling very well recently
and has been away from the bank for several weeks, having
just returned to the city.

He is still, however, unable to

be at the office, and he wonders if there is not someone else
who might undertake the matter in his absence.
Very truly yours,

Secretary to the Governor.



Mft n,r5,1"E/CMS

1301 Penna. avenue,

Fort Worth, Texas.

February 26, 1923.
Mr. George Beyer,

Secretary to the C-overnor,
Federal Reserve Bank,
New York city.
My dear Mr. Beyer:

est regretPlease convey to Gover,rfOr Strong my best
at learning of his tilnese, and my sincer-

wishes for a speedy and complite recovery.
I would certainly never
a moment of bothering him with anyhave thought for
of my affairs
I known that he was not in good health. Will youhad
kindly inform him of that fact?
Thanking you for your letter, I am

Yours very truly,



Sept. 13, 1924



Benjamin Strong, Esq.
Federal Reserve Bank,
New York City,

Dear Governor Strong :

This will introduce to you

M Vn Zn t, Jr., who is making a
ort visit to your city and I am anxious to have

my broth

him meet you.

He has lived in the City of
Mexico for some twenty five or thirty years and
is possibly unacquainted with the manners and
customs of our great American metropolis, so don't
let him get deported.
Any courtesies you may be

able to extend to him will be greatly appreciated

by me.

With all good wishes for your
health and happiness, I am
Sincerely yo urs




Vt- 0+

4, A, Cse










Forth Werth, Tex.
Na: eh 31, 1927.

Hon. Benjamin Strong,
care Federal eserve Bank of No7
New York City.


Dear Governor Strong:

Upon returning to Texas I am greatly impressed
with the rapid and substail6tial development that is taking
place throughout this entire state, and I find that out-ofstate Trust -Companies, Mortgage Companies and Insurance
Companies are being called upon to furnish a large proThe field for this class
portion of the building capital.
of sound, conservative loans is great and, as you perhaps
know, most of the large life insurance companies are prohibited by law from writing insurance in this state and
they are therefore without the convenient machinery for
soliciting these most desirable loans.
A ibw of them have loan agencies in the state but
most of them have not, and included in the latter class is
that big, middle-western comoany,.the Northwestern Mutual
In talking °vet the matter with a very
Life of Milwaukee.
prominent lawyer who has had many years of experience in
examining and passing on titles in this state for both
local and foreign clients, he has expressed the thought
that possibly the Northwestern MUtual management could be
shown the desirability of having a loan agency in Texas
and, if so, that with proper recommendations and credentials I might obtain the position of state representative
of the company for loan purposes. Be has further offered
to accompany me to Milwaukee to discuss the matter with the
officials of the company, to explain to them the legal
features in connection therewith, and to do what he can
to assist me in obtaining the position bought.

I have decided to accept his kind offer of
assistance, but before making the trip I want to get,
if possible some strong letters of recommendation to take
with me. With that in view I'm writing to ask you the
great favor of sending me such a letter as you can consistently write in my behalf, addressed to Er. W.D. an
Dyke, President of the Northwestern Mutual Life Insurance
Company of Milwaukee.
I assure you that your kindness in this connecWith warm personal
tion will be greatly appreciated.
regards, I am
Sincerely yours,

P.. Please address me


aare of the





Hotel Jrighton,
itlantic City, N. J.
April 13, 1927.
My dear Van Zandt:

Your letter of March 31 has reached me after some
delay because of my absence.
When you see Mr. Van Dyke you might tell him of

our long association, and if he wishes comething from me
about you to please write me. I shall be deli4hted to write

I hdpe things are going well with you. Unfortunately,
illness has kept me away from the bank for a good while, and I

am still taking it a bit easy.
Sincerely yours,

Mr. R. L. Van Zandt,
0/0 Fort worth National Bank,
Port Worth, Texas.




Fort Worth, Texas.
April 25, 1927.
Mr. Benjamin Strong,
c/o Federal Reserve Bank,
New York City.
My dear Governor:

Mrs. Van Zandt and I were both exceedingly
sorry to learn that illness hadteen your lot and we hope
that springtime and rest will bring you renewed health
and vigor.
On account of the business erIggements of the
lawyer who is to accompany me to Milwaukee, I have not
yet called on Mt. Van Dyke nor arranged for a conference
with him, but when I do so will ask him to write you
about me.

Some years agoi on the enactment of the socalled "Robertson Law", about sixteen of the largest life
insurance companies in the United States withdrew from
Texas with the avowed intention of not returning until
the repeal of that law, the objectional feature of which
being that it required the investment in Texas securities
of seventy-five percent of the legal reserve on Texas
One or two of them have unostentatiously
returned and with the marvelous growth and development
of the State, are finding it no hardship to comply with
the requirements of the law, though most of them, including the New York Life, Equitable, Prudential, Mutual
Life, Northwestern Mutual, etc., have let Texas severely
Meanwhile some local companies have grown to
sizeable proportions with highly remunerative business.
It was my idea that if I could get one of these
big companies to come into the State on a strictly investment basis, which has no bearing on the Robertsbn Law,
that it wouldn't be long before that Company would find
that it could enter the underwriting business with no
further requirement than to apply for anlobtain its permit.

Good, sound, conservative building loans can
with adequate sinking fund requirements to promade/
vide for and maintain a substantial margin of safety
even in the event of deterioration or possible slump




in values, at rates which would prove attractive to the
large insurance companies as well as to the borrowers.

A loan agency such as I have in mind would
certainly prove a big money maker for the Company and
give it a desirable outlet for some of its investment

If you, or some of your friends, are interested
in any one of the companies not now operating in Texas,
and that company would care to enter this field on an
investment basis as outlined, I would be pleased to cone
up and go over the situation with them and would bring
with me Judge Leroy A. Smith, who is a very prominent
lawyer here, an acknowledged authority on Texas land
loans and titles, and he could explain the legal aspects
to them.

I have assurances of cooperation and assistance
from prominent bankers and business men from all parts of
Texas and know that I can build up for the Company which
1 do take on a splendid investment business.
Please advise me if you know of such a company.
Thanking you for your letter and with my best
wishes and warmest personal regards, I am
Sincerely your friend,

My dof,r Van 7?,..mdt!

Your letter of the 25th 11.-..;3 just rched am, Pa d T quite see

the poi nt that you voring on.

for tne to trk3 up


u1d be very di ffi cult

f th.! s sort *irk. nono" leth Priy of the big



118111' anoe

Of ours, t

T have never slap-oared

voIunt eer in giving

advice. of the sort you have in mind to irly of these big compesti-...,e,


J.:opt th,A during the tar we did prm then pr.etey herd to eubsoribe to
Govorniac;nt loans.

17! you fino .1..ny of than intorested, you sight

refer them to rem for info

-ton !rid on rem/sot frort them of enured

could vary pro.aerly teil thewn what I know.

/ shall be away for about two weeks attending meetings

Barring that, I expect to be in Now York right along.

With best reg,ards, I


Sincerely yours.

Vr. Ri chard L. Van 7andt,
Fbrt 1.11 rth,





45 Av
February 2, 1 9 1 5.

0 i915


Mr. Benj. Strong, Jr.,
Governor, Federal Reserve Bank,
New York, N. Y.
My 'dear Mr. Strong:

I beg to acknouled-:e receipt of
your communication of January thirtieth,
as well as the set of circular letters and
forms issued by the "Gold Fund Committee"
advising contributors of the distribution
of the funds left in their hands from the

I presume it became necessar7 to
abandon the idea which I thought would be
followed when we were in Washington, of
asking member banks of the various districts
to accept credit in their own Federal Reserve j3ank.
This might have resulted in a
reduction of the balances of western and
southern banks on your books.
I am rather
of the opinion, however, that the member
banks of this section, because of existing
conditions, would elect to have the money
placed to their credit in New York and have
it handled through the correspondent already
designated in connection with the raising of
the fund.

With best personal regards, I am

17P 6


,C5Sai g


9th, 1915.

de ,ar Governor Wells:

Thank you for yours of the 2nd in regard to tha gold. -And Com-

mittee matter. ,.Tho Committee decided that it would be most unwise to

doprivo the contributors of the onportunity of oonverting their contributions Into New York (=change hould they profer tat form of distribu-

tion, honco, tho arranGement az disclosed in the paper sent you.
Notice of your possiblo dofeCtion reached no through the nftsprae

papers and wasvaxtically confirmod in lashington last welt.

i am lin'y

:Sorry Indeed to learn of this occurrence and realize that your docision
:was doubtless based u0n sound considerations of your on fixture, and of
that we cannot possibly complain.

We will certainly slice you at the meetings in Washington or

elsewhere and I talcs thie first opportunity to extend to you every possibla felloitation for your prosperity and happiness in airmingham.
With best regards, believe me,
Very truly yours,


Oscar Voids, 3sq..
Governor, Federal Reserve Rank,
Dallas, Texoz.

top 0

(Sent to all Federal reserve
wJents except Richmond.)

November 1, 1916.

William F. Ramsey, Esq.,
Federal Reserve Agent,
Federal Reserve Bank of Dallas,
Jallas, Texas.
Dear Ur. Ramsey:

the meeting of our board

had quite a little discussion

of directors this morning we

on the subject

of rates for bankers'

The question came up in the natural course of busi-

ness as to whether we Should buy domestic acceptances and acceptances made for the purpose of furnishing dollar exchange at any
different rate from that at which we are buying the import and export acceptances of the same institutions.

cussion it was the

sense of our

After thorough dis-

board that as the purchases were

made largely on the strength of the credit of the parties to the
transaction and primarily

that of the acceptors no

rates should be made, at least

difference in

for the present, in purchasing the

various classes of acceptances of the same institution.

Our directors also considered the letter from the Federal
Reserve Board dated October 31st, a letter similar to which I presume
you have also received, suggesting that Federal reserve banks had the
power by differentiation of rates of regulating transactiens in acceptances of the kind which we have been


during the past'year.

William-F. Ramsey, Bilq.

drawn under spacial credits arranged between banks in
and banks

or other drawers in European countries.

of our board that tor


s country

It was the sense

the present and while such purchases are being

Offered in moderate volume we should expect to continue to buy them
at the 94M0 rates as we would buy other acceptances or the same institutions.

I am writing you arter consultation with our other officers
as I thought you might be interested in knowing the views of our board.

Very truly yours,









MAY 2 3 1922



May 18th, 1922.

Dear Governor Strong:

The Chief Examiner of this
district today presented me with a bill covering
copies of reports of examination furnished this
bank during the month of April.
As you will recall, the report of our special committee which waited upon
Comptroller Crissinger made its report just as we
were adjourning, and although the Governors, when
they met at different tines after the Conference
adjourned, had infotmal discussions, I do not have
clear idea in my mind as to what course the several banks intend to pursue in connection with paying the Comptroller for these reports on the basis
heretofore charged.
I assume that since your return hone you have had opportunity to discuss the
matter with the other officers of your bank, and
Perhaps with your Board, and if you have arrived
at a definite determination in this connection I
should be greatly pleased if you would advise me
in regard to it.
ce ely yours,


Mr. Benjamin Strong, GOvernor,
Federal Reserve Bank,
New York City, IT. Y.



00 0

WAY z2





July 29, 1922

Dear Governor Strong:

I have your letter of the 26th instant, in which
you advise me of the talk which you had with the Comptroller
of the Currency regarding the expense of reports of examination of National banks now being furnished by the Chief Exami-

ners, as well as to the method of custody and safeguarding of
these reports.

It is noted that the Comptroller is contemplating
arranging for a personal conference at which he would ask the
Governors of some of the nearby reserve banks to be present.

Assuring you that I should be glad to give consideration to


conclusions reached by this conference, and

with kind personal regards, I am
cerely yours,

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

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