The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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- gr7 e" ° 3o e 00 -Itt.Z /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 jVz 01:4,27 e Pd la - a eit& ad' - c a- ,A)77L-70_'/At 7a7"-- leif")-1 Alke 2-4- Ai/car! Afrtatr-r ( 0,41,, 1' /a_tcce/ii, /10Iti c4 4 h., /Pe a-tio *c.% :IV-atee) ovt-s,s f "r J'-t,te wAA.RA.st akn4 49th7 tt-C7ait sr) "Ittitv affeea/nilt-, '4atziberMAtice- 6314--C t;i, taetv ell a AKA"; 7.75-«Ze1 .1' ALe efr/vglido-at,L 4 0 tath /Nit- C 4etteb7 Ce/WiT --- ZA.-rSikkete;:ecs Alu/644121-,- 1/274- e-kahte7 41-9------Ciaja;4(4-ehr zhtAy_ ;14er"792\aeveaAt----- try 41L-ro 11; 7&.7 et-4,4) 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 ti::(-111111101011P. 104.' Airtif: 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. 01 \ W40' \ WW1 10 Nimrk \VIA 1. ir4 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- fsett OIAT C-74 67 , ift 19 ,Q4X, Sq, krnt%'. kC!1 $3"4. 1Pr ^ In a 46. C:34\ 1. N 4040' Oi°*414 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 i4AR , 113 . arA, 774s4 41trA 04,20s9-014- oilt-ft) itisaahi ietAjax<: 44),N h_ r40/ &al( v! ,- RP` -Qz... .-----------''-''''' 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. ht N+,L I 2