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Ben. Strong, Jr., Esq.,

-2-

larch 27,m1915.

Kent called me up and offered these short papers, and after consultation with
Woodward, I bought them.

I enclose copy of the statement of the Guaranty Trust Company pub-

COPIED FOR
'

No.

tOT

lished to-day.

You will note the amount of acceptances.

I have sent copies

of the last statements of the Bankers Trust Company, Guaranty Trust Company,
National City Bank, Bank of New York, and American Exchange National Bank to
each of the Reserve Banks for which we are buying acceptances.
Things are quiet here asfar as transactions go, but as busy as usual
with regard to demands on the time of the officers.




I hope by this time you are feeling the effects of the change.
With best regards, I am,
Faithfully yours,

FEDERAL RESERVE BANK
OF

NEW YORK

NEW YORK,

March 27, 1915,

Benjamin Strong, Jr., Esq.,
The Homestead,
Hot Springs, Va.
Dear Governor:

Do titles follow a vacation?
Two days ago the Secretary received from Mr. Delano a letter, which

I cannot this hour of the day (5 P.M. Saturday) get hold of, suggesting one
or two minor changes in the Circular and Rules, and then disclaiming any responsibility for the whole thing, saying that it is
it out.

11-0

to each bank to work

One or two suggestions have come in from other Federal reserve banks

and it is likely that others will be received next week.
The purpose of my writing you is to ask whether you wish any progress
to be made at our Board meeting next Wednesday.

My own judgment is that the

matter had better lie over until the 7th of April'when'you will be back and
when all the criticism from the various banks should be in.
Mr. Delano, in his letter, indicated that the Reserve Board did not
consider it necessary to arrange the inter-district settlement plan or to give
us full access to the Comptroller's files, before inaugurating the intra-district collection plan.

I have written him fully concerning the latter point.

Warburg is to be at Hartsdale to-day, and I hope to be able to see
him a little while to-morrow afternoon, on his way through town, to see if we
cannot get this matter expedited.

Yesterday we bought 4A,000,000 acceptances of the Bankers Trust Com-

CONEDFOR
FILE NO.

SUBJECT

I

pany, due April 7th to April 29th, at 2%.




The general rate is unchanged, but

BNEJAMIN STRONG

1INSWERED

Estes Perk, Colorado.

OCT 7_

FILINT1 nEPT.

P. J.
September 20th, 1916.

FEDERAL RESERVE BANK




Dear Mr. Jay:

I hove written Sandy Noyes a letter
as per enclosed copy,- which explains itself. It
seems

to

me much better to give them the infor-

mation voluntarily rather than let them discover
it and then possibly take occasion to jump on us
1

for not having elucidated the mystery.
Sincerely

ours,

'

Pierre Jay, Esq.,
Federal Reserve Bank,
Equitable Building,
New York City.
BS/VCY.

1916

Ihrs-e?

,7

Z
,

BENJAMIN STRONG

Estee Park, Colorado.

September 20t1i, 1916.

My dear Noyes:

I have been iEtonding for some time to write you i,bout
the discre:7-arcies which appear each week in the calculcition of

the ne movement of currency to and from the interior, and am

rsminded by nn article in the rvering 'est that it has been overlooked; this article hqvinE beer publiehed a few days ago, calling
atter.tion to the discre7ancy of 1'40,000,000 in the cosh movement.

T think you will fine that this is lrgcly accounted
by the shifting of cash through the Yederal ::esorve Bank of
New York ,,,nd the Gold Settlement Furd.

If one of pur repreeentitives %ill c;iii at the bank
sure it
and ask them for an explanation of tnis operation, I
9:03

will be found pDescole to get a very mucn more accurate forecast
of the bank at-to;lent thin c:!.r; be ile3a otherwise.
The following is wh9.t sootimcs happens:

When New York

exchange is at a dlocunt, say, in Chicago, St. Louie and other
:otern cit:es, the isderal reserve banks at those points auczumu..
1st() considerable a:cif:until:0f hel York exchange, which in shipped

to us for their c:'a3it.

-!e collect the checks through the Clear-

ing !louse, which results, of course, in large credit balancon and
a conniderable loss of cash by the Clearing noul;e banks. On
Thuraday of each week, we se'tle the balances owing to the other
reserve banks through the Gold ':ettlement Fund. The' is to say,



/

To

A. D. Noyes, isq.

Sept. 20, 1916.

gold held in the Fund whici: counts as part of our reserve, is

transferred to the credit of the other reserxe banks and then
courts nz pnrt of their reerve. When there balances run ao
heavy as they have recently as to exhaust our balance in the
Gold 5ettlement Fund, the New York bank surrenders gold certif.-

.(2ates to the Subtteneury in Few York which are there cancelled

and reissued ir Washington in the nsmes, of course, of the banks
with which we have settlenents to effect. This operntion koe
the sane effect as a shipment of cui-rency.

an sure that my associates will be glad to give your
reprosentative cucL information every week as will enale you to
take this movement into account in foreonsting the bank statement.
Very truly yours,

toyer, req.,

Care New York Evening Poet,
Few York City.




4100 MONTVIEW BOULEVARD
DENVER, COLO,

MP?.

Denver, Colorado,
March 5, 1917.

Vint. 01
Dear Mr. Trenton:

104411401"111GOVERNEENT BONDS.
My best opinion just now is to await developments before making
any purchases unless indeed the Board's pronouncement in regard to the

purchase of 45,000,000 will make it necessary for us to purchase bonds
in anticipation of tenders by member banks; as to that 1 am not up-todate.

It looks to me as though we would have some large issues

near future.
Very truly yours,

R. H. Treman, Esq.,
Federal Reserve Bank,
New York City.

BS/CC




in

the




Of ice Correspondence

FEDERAL RESERVE

RANK OF NEW YORK

'. Case-

Date
Subject :

February 28/18

.UOSIAN BOLTS

Benj. Strong
The attached lett6rfroM Governor Harding indicates tbe desire of the
Secretary of the Treasury to complete the withdrawal of Russian bonds from
collateral held for Government deposits. igill-you please take this up with
the Government Deposit Department and advise me just

4ee

.0btx_f(a. 444.-

how the

matter stands.

e4r

BS/EL

KAIE44.04.,

141, ,opt-

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/1-e-es1

FEDERAL RESERVE BANK
OF NEW YORK
T2C111.:

'3AUSSII

gm."( WVHole,
Woods

Mass.
July 30, 1918.

.:1,1:1301
Dear Mr. Hendricks:

I don't particularly like the Gold Settlement
seems to be working on the daily settlement basis.

From our statements,

it looks as though we had a great many entries to reverse,
settlement is really

this matter

nOt 0

Fund, as it

and that

settlement, but somethat of a mixup.

the

Is

being studied out so as to eliminate a bad looking item from

our liabilites?

I am going to ask you particularly to watch one matter,
and never relax in following it

up through the auditors:

it is to keep

all unnecessary book items out of our statement and out of the general
Everything in the mature of a suspense account means something

ledger.

to be followed up, consequently, something that may be overlooked,

and,

frequently, means an opportunity for fraud.

It might be a good plan to have a permanent memorandum on
your calendar to go over these items once a week with Mr. Jefferson and
request reports on them..

putting

the responsbility

This is only a suggestion of a method.

on you.
Very truly yours,

Mr. L. H. Hendricks,
Federal Reserve Bank,
New York City. N. Y.

BS:GB



I am

June 16, 1919.

My dear Mr. Locke:

Our newly organized Buffalo branch, having recently taken over
the custody of the securities Fledged to secure Government deposits and

heretofore held by you and your associates as custodians for this bank
in its capacity as fiscel agent of the Treasury Department of the United
States, the time seems' opportune to express to you our hearty apprecia-

tion of your valued services as such custodian.

re

are not unmindful of Use fact that when, at our request, you

sssumed the duties and responsibilities of custodian, you were
fully engaged and burdened

with

lready

the great volume of work and res;onsibil-

ity of your own institution and with your own generous contribution of
personal service towards the solution of the difficult finenciel

roblems

of the Government.

Your assumption of the additional responsibility of custodien at
ich a time was a real service to the Governient and to this bank as fiscal

agent of the Government, its value being enhanced by the circumstances under
which it was tendered and so splendidly performed; and on behalf of the
directors and officers of this bank it is my privilege and pleasure to convey to you our deep sense of appreciation.-

Very truly yours,

rovernor.

ranklin D. Locke, Esq.,
Chairman of the Board, FidAlkty Trust Company,
Buffelo, N. Y.

http://fraser.stlouisfed.org/
JMe/HAB
Federal Reserve Bank of St. Louis

411/`

June 16, 1919.

My dear Mr. Hubbell:

Our newly organized Buffalo branch, having recently taken over
the custody of the securities fledged to secure (7overnment deposits and

heretofore held by you and your associates as cueto41enc for this bank
in its capacity as fiscal agent of the Treasury nepartment of the United
States, the time seems opportune to express to you our hearty aprreciation of your valued 'services as such custodian.

We are not unmindful of the fact that when, at our request, you

assumed the duties end responsibilities ef custodian, you were already
fully engager', and burdened with the great volume or work and reseonsibil-

ity of your own institution and with your own generous contribution of
;
ersonal service towards the solution of the difficult financial problems
of the Government.

Your assumption of the addition-1 responsibility of custodian at
such a time was s real service to the Government and to this bank as fiscal
agent of the GoveTnment, its value being enhanced by the circumstances under
which it was tendered and so splendidly performed; and on behalf

or the

directors and officers of this bank it is my privilege and pleasure to convey to you our deep sense of appreciation.
Very truly yours,

Governor.

--

Clifford Hubbell, Esq.,
President, Fidelity Trust

Buffalo, N. Y.

eee--




Company,




MISC. 4.1-120 M-1-20

FEDERAL RESERVE SANK

OF NEW YORK

e FICE CORRESPONDENCE
To

Governor strong

DATE June 15,4921.

192

SUBJECT.

,Aeorge L. Harrison

FROM

(,

Case have both gone over the attached letter with
reference to the metropolitan clearing situation.
Mr. Jay has approved it as it stands, but suggests that it be brought
to the attention of the Managing Committee or the Executive Comatee for approval.
Mr. Case questions the advisability of expressly stating that it is to
be "at our expense," although he agrees that that is the basis upon which we
should now take it over.
Will you please let me have your suggestions or criticisms.

GLti.MSb

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itIti0044'

une 22, 192
or Stron
George L. Harrison

In reference to the attached, it occurs to me, even if there are tW

three of the banks in the system which still favor asking for reimbursement
at there is no reason why we should not make a perfectly frank statement of
e whole situation to Mr. Gilbert, naming those banks that do not care to ask
reimbursement and those that still wish to do sc.

It is unlikely

t he will want to adopt a different policy as to the different banks and
is altogether probable that if the majority in favor of absorption of
enses is sufficiently great he will decline to reimburse any of the banks.
wever, this is a matter which we can discuss after we have received all
f the replies.

Incidentally you may be interested to know that some of the letters
Arich we have received from the ,'ederal Reserve Board, transmitting Mr.

---,Lbertts communications on this subject, have rather assumed that the question

reimbursement has been definAely settled.

As a-matter qf fact, however,

t is only an assumption on their part, since the records, including the
on taken at the Governor's' Conference, together with all of Mr. Gilbert's
ications, indicate quite clearly that so far as the Treasury is concerne
.bursement will not be made unless and until a specific re4uest is received

by the Treasury froM the interested reserve bank, and, as I have already report
Gilbert told, me over the telephone last week that at that time he had rece:v

.

formal request from any reserve bank.

411



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FEDERAL RESERVE BAN7K

OF NEW YORK

-E CORRESPONDENCE
Governor Strong
FROM

DATE

June 29, .1922. 192

SUBJECT:

George L. Harrison

You may be interested in reading the attached letter to Governor
Harding in view of our conversation of yesterday.

If you have any suggestions

to make, please do not hesitate to use your hue pencil.




Xri)

FEDERAL RESERVE BANK
m..

OF NEW YORK

sE C,../FIRESIAMANCE
To_

FROM

Governor Strong '"L

?LIU

DATE
SUBJECT:

August 14,

Reimbursement from Treasury De-

partment for Fiscal Agency Expenses.

D_ H. Barrows

The question as to whether this bank should claim reimbursement from the
Treasury for fiscal agency expenses was discussed at the meeting of the board of
directors on June 21 and you reported the present status of the correspondence and
It was undernegotiations which had then recently taken place on this subject.
stood that you would take action along the lines indicated during the discussion
and reportback at a subsequent meeting of the directors.
To complete the record, do you wish to make a brief report to the board 247-4L
on Wednesday of the decision which has now been reached, namely to limit the clO'ia
for reimbursement for expensed incident to new issues of Government securities to the
three employees in the Government Securities Sales Division, as was done in the last
fiscal year.

401:c

7L1,

v

ia0-t---etPid16hol-0

FEDERAL RESERVE BANK

OF NEW YORK
4,

December 4, 1925.

My dear Mr. Barrows:

Through the resignation of Mr. Morris, Manager of the
Credit and Discount Department, it has been necessary for me to
rearrange the duties of several of our managers, so that the work

and responsibility of the several departments affected may proceed
in the most efficient manner.

I take pleasure, therefore, in

advising you that you have been designated as Manager of the Administration Department, to take effect Monday, December 7.

Your work in your present assignment has been most
satisfactory, both to the officers and directors of the bank and
your new designation is made with every assurance that you will
handle its responsibilities with the same degree of merit and
efficiency as in your former work.
Faithfully yours,

BENJ. ST NG
Governor.

Mr. D. H. Barrows,
Federal Reserve Bank of New York,
New York.






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FEDERAL RESERVE BANK

MISC. 3. 1-50M-1-25

OF NEW YORK

.OFFICE CORRESPONDENCE
To

1.

1926

C'

SUBJECT:

Governor _S t o_ng_

FROM

DATE March 16,

R.

During your absence in-February, a plan which had been worked out
between this bank and the Stock Clearing Corporation for effecting this bank's
receipts and deliveries of securities at the office of the Stock Clearing Corporation, thereby taking our messengers off the streets, was submitted at a meeting
of our directors, with the result that Mr. Young expressed the view that no matter
how desirable such an arrangement might be, he thought it would be inexpedient
politically for this bank to be the first to operate under an arrangement with the
Stock Clearing Corporation which would probably be regarded in the public mind as
some sort of an alliance between tills bank and the Stock Exchange.

Mr. Reynolds

also had some reservations about it, whereas Mr. Treman expressed himself as much
in favor of it.

None of the other directors expressed any view and the matter was.

shelved, pending further consideration upon your return.
Mr. Streit, the President of the Stock Clearing Corporation, is, of course,
anxious to make orderly progress in reforming the methods of delivery of securities

in the financial part of New York and has suggested to me that he would be glad of
an opportunity to discuss the matter with you at any time at your convenience this
week.

If you care to do that and will advise me, I shall make an appointment for

Mr. Streit to come over at any time you say.

Og-




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WT. 15 60M-7-22

FEDERAL RESERVE BANK
= NEW YORK

WIRE TRANSFER

,a0TELEGRAM

DIVISION

PRIVATE WIREINCOMING

B 26 BD A Washn Dc 105p Jan 8
Govr FRB

NY

Because of Ilanuary 15th offering fiscal dgency conference is postponed from Jan 17

to Jan 24
Gilbert

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FEDERAL RESERVE

BANK'

5, .,727

4,, tiva

OF NEW YORK

March 16, 1927.

Dear Mr. Case:

I enclose paL 3 of the daily letter to the Federal
Reserve Board of March 12.
the first paragraph.

I would call your attention to

My recollection is that the Treasury

long ago raised a serious objection to our reporting
Board the amounts of subscriptions

to

the

to the Government secur-

ities until the.Treasury itself was ready to make the announaE-

ment, and placed certain restrictions upon the character of
the reports that we made from time to time.
I personally think it is inadvisable

to make such

reports anyway, and certainly we should not do so without
authority from the Treasury Department.

Would you mind looking this up?

With

the new Under-

Secretary in charge, I am most anxious that we should not
contribute to any slip or misfortune which w..Juld embarrass
him.

nincerely yours,

I. Herbert Case,
Federal Reserve Bank,
33 Liberty Street, New York.




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