Full text of Papers of Benjamin Strong, Jr. : Correspondence with the Federal Reserve Bank of New York : Chairman and Federal Reserve Agent, Pierre Jay, 1917

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Denver, Colorado,

January 4, 1917.

'ear Pierre:

I am addressing you at the office, a/th A 'h hoping that you
.re still away and getting lots of good from th
suspect you of spending it in hard w ,

olidaj, if it is one.

ea -.el A reports, etc.

AIMMEMOMMEM44414,

lease notethat
tt all bets are off in the formality
.ther formality; I don't care

ddress or any

ether those fel4 gs think we

re too intimate or not, and

few days i have been in that

,ort of a reckless humor wher

be a keen pleasure to debauch

the Whole system.
Both Of your

26th came while I was in

in6 to clean up mail. Both of them

the mountains and
were hugely enjoy
you sa

yo a enclap for the kind things

i
rburg's letter

be d

you receive this. I know little

ded possibly b

you

Witherb

urnad with your remarks; the matter will

s not a

Hoyt,

ong man,

;Amiville,

although

about the men

Truesdale, Nichols add Mallory.

very nice man. Hoyt is a man of

considerable ability

but I doubt if he scald prove of great

he has no experience

in that line. Frank Manville I know very well: he is

an able manufacturer,

quite a bit of a roller now and

fellow and keen as a briar. Truesdale

very able in

of practically no experience

in our lines. Mallory is a very fine

man; one of the

managers in the country; 1 have known

him

then, but a very nice

is -a splendid man;

railroad matters, although a reactionary tnd

value to us;

ablest steamship

for years and respect him highly;

January 4, 1917.

Ir. Jay.

I have assumed that both

his knowledge along our lines is also slight.

Carlton and Outerbridge were ineligible and would not become eligible.
qa it :mild not make

I guess you are right about Curtis, alt o

director without being

me feel badly a bit to have one of our officers
one myself; I have no pride in those matters.
New York City man of first rank I

e to thoroug

I will defer an account of

most unusual and enjoyable. Y
lather reference

books

ading

than

vhile.

I have wri

man a

ut the Ban

w nea

over with it.

t away, i

e fixed up,

t by correspond
hope you are

the oul' .cy matter.

If 1 could only get

but i will make a stab of

co.

offended by my remarks about

your report on

t brought me to use the expressions was the

red in the Minutes of your conference,

comment Mai

England

water has gone over the dam and no

latter that I won

doing

except Jusserand's, which

I know you will enjoy it, although

did make me ash

abroad

They were

lidays until

most of those books I sent you

scholarly and delightful readi

body knave

conclusions to get a

Yi.

it as a document of the first order

and with that I

did not understand from your former letters that it

which marked

heartily agree.

had been practically

unanimously adopted, except for Martin and Ramsey, Whose opinions are
not wortn considering.

I do think it would be well to work it up for use

with Congress.

My general

rather

simple.

theory of

the

present effort to amend the law is

The Board should adopt three essential courses; First

phasize the fact that the possibility of inflation res4ting therefrom is negligible; second, point out that the change in
cinirements is net a reduction and establish thi

third

get the

eserve re-

by definite figures;

support before Congress of the a eat men in the

incliding unanimous recommendations, if possibl

from the management

e a Congress will meet

Without that

of the Reserve Banks.

country,

our views and the attempt would be abortive and dan

s in opening the

door to tinkering.

rrespondence to send you on

I will dig out some
the currency matter.

ose articles for the Times and

I have been disc

besides that thin, ,e piled u
It is a

gr4

It would have bee

do not want to over do.

relief to get

finite word of your own condition.

delight to ha

you out here, and yet with your
id soft climate, Which is far differ-

this where we have snow every third day and sometimes very low

17,

word abodt

Bank of England matter.

as possible, partly

I have been restrain-

because I do not want

to throw

a monkeywrench into the machinery just now and partly because I an sensible

that during my illness those fellows have shom me unusual consideration
and I don't want to seem ungrateful.

I telegraphed you about centering

communications in Mew York because I was getting word here from a number
of different quarters and feared some mdxup, and besides that telegraphic

To -

January 4, 1917,

dtr. Jay.

communication from Hewes-Kirkwood was very uncertain, as my wires

were

telenhoned to and from

either Loveland or Denver.

Possibly you recall my writing Traman, ur lug that these

visits by New York ban4ers to ashington shoul
This whole trouble has

arisen from

attempts by

t be encouraged.
se New Yor,c men to

rd, and would

get some sort of unofficial committme
have been avoided had

This is all I can write

sand you Jav

sane advice to tae care of 7
'Tait

Federal Reserve B
Equita_s le

Zew Yor

BS/C
Doc.

ctionata

Year and, old man, that

greetings, lots of good wish

Pierre Jay, Esq.,

office.

matters been conducted thro

yours,

(e6

Denver, Colorado,
January 10, 1917.

Dear Pierre:
Malay thanks for your New Year's letter and good greetings,
and I don't need to tell you bow hearth l

Please don't wear yourself out over t
else.

I am wondering Whether in case

y ar

iporcated.

Annual Report

r anything

hat cough of you

does not

clear up pretty soon, it would not be feasible for yo

a place called "Castle H

rings,

ry far from

Phoenix, Ariz. on the San r

Fe road, as Dr

if I am expecting to have

y visitors out

for a

little

o come out

rest

.ewall has told me that

re and want to get away
rfectly all right for me

to go down there and 1

s not the only place Where

the climate is soft and

this season; in fact El Tovar I

believe is pretty co

you should contemplate any such

delightful expedition

me at once so that I can see

one Which sometimes are a little crowded there.

about

Should

o Denver, I would expect you to stop with
me.

Again ab
unless the Boa

the annual report - I rather like those charts
has other views.

I have written a rabid letter

Treman about Federal Reserve Bank checks which please read as it
staxests a modification of your plan.
scheme of wiring advice,

jhicia

I do not like the idea of the

would impose a lot of

trouble

and ex-

pense and, if possible, should any plan be adopted, it ought to be
as nearly automatic as can be made.

The

principle underlying

your

January 10, 1917.

To - Mr. Jay.

scheme is absolutely sounO.

I abandoned the

idea of

writing Glass as I feared the Board

might resent it, although Warburg had no object

with Warburg

the Board have been almost entirely corresnonded

Delano about roc

and one or two personally with

their courage and that

based

upon the counsel of timid

I want to dig o

of letters.
refer to.

office.

with

I did hay

correa

largely a repetition of the

th the children.

particular mat

but not

in connection with the Wash-

be advised, or where any of my

cuts has led to difficulties

that o

to volumes

covered in letters to the

a bully holiday

n of

think

door

letters to ;ashington recent-

urg and are

the utmost fr

ale yr'

etc., were

owever, along the line you

somethi

If there is

Ington s

ned the

There is nothing in a

old argument

his associates

these recent state
,

1y that would be of

developments.

I/OrtifaerrAre'l

-;:arburg resented my writing him that

were losing

My letters to

embarrassments, please write

se.

or two mistakes have been made
justify recent occurrences.

the office

Sometimes I

think

that suggestions that I have sent on one or two matters were not very
carefully considered.

I have particularly in mind that suggestion

about the inadvisability of these visitations to Washington, that New
York bankers Should be satisfied to deal with the
All of these matters can be

talked

Board through us.

out better than covered by

pondence, so I hope to see some of your fellows soon.
Warmest regards to you all and again Happy New year.
BS/CC

Sincerely yours,

corres-

Denver, Colorado,
January 10, 1917.

Dear MX. Jay:

Yours of the 6th just reaches me and 1 am glad to once more
e 0

see your familiar signature on a letter f

You
1

iquestion

will find

that some months a

of private bankers statements,

I wrote you ab

the

uggesting that y

discuss the matter with two or three of the important f
with those with Whom we talks

their views about what shou
of my absence.

January let

matters and the impo

the fi

privately
, preferably

nd ascertain

be done about
hould be the pe

ising figures in view
d when we

go over these

share the knowledge.

We are so now in our pos

wishes of the bankers the

we should be guided by the
o a very great extent; this applies

particularly to the
am mortified a

ustifiod

change

say about 2x. Curtis' salary.

The

and the Board must not overlook the fact that we

are getting tbb a1arg,1ank with immense responsibilities anu we must
be able to mak
As to t

sirability, in f

he positions there attractive to good men.

visory councilmen, I am very positive as to the det the necessity, of re-electing the present member.

Any other course would be construed as being related in sok-le -.gni to the

Treasury bill episode, and you urge this strongly upon our directors.

Now about Harding's letter - I am intensely mortified and annoyed
-

at all of the circumstances surrounding this correspondence.

sow

Please

2.
-

.f. Jay.

review

auary 10, 1917.

the circumstances:

The Bank of England arrangement was informally submitted

the Board in April of last

year.

llotwithstanding repeated efforts on

our part to get action, none was taken until the last of December.
h the Board

at only that, but the Whole subject was d'; t:1711

generally before I

sailed for Europe.

a decision is announced on December 26

after a de

f many months

and within a

days Governor

Harding writes Mr. Treman a letter statig that the Boas* Would be much
more interested

in knowing Ala

in our opinion of thei
r development of foreign

tat lug that it seems pro
'

operations.

standing of what these

It shows a co

detail and of the necessity

rrangements involve

n London before others are

of concluding a base ar
elsewhere.

Immediate'

on my

letter nod had arranged, as I had

to get the

Board had act

us up fully six

of liar. Roberts on technical details /*e-

a week to finish this up

garding go

patched to th

from the mountains on January

1st I started the pre
writt

concluded

on January 8th. In

nd was finally dis-

other words, two weeks

after the

ur letter was on the way, notwithstanding that they held
nths.

Generally, in regard to other connections

I am very positive that

it would be unwise for us to enter into any such comprehensive arrangement

as we are contemplating

with

the Bank of England in any other country than

in England, France, Germany and possibly Holland, therefore the only arrangements we could make in such places as Soain, Argentine, Norway, etc.,

January 10, 19171

be in connection with the drawing accounts, custody of gold, etc,

you think the Board realizes that in each one of the countries named
vnere are special situations which will require very careful consideration
and study before Reserve Banks can make alliances.

In Norway, for instance,
in there is a gold

gold is today being received only at a die
premium.

the Argentine there is a ci

in the Argentine there would be no dif

that would be a

good thing to do,

I think we have got to conside

ulty about ear-'. i.ng gold and

but when it comes to p

ear the

atute, etc., and further

hasing bills
gotiations may

order t

et be necessary in

As ti arrangements

currency.

limitations of

the

whether we ought to

d be directly in competition

go down there to co

with our own member b
I certainly want to

ogress

any one and had a feeli

that I

the Board's hand in end

Orir

in these matters as

much as

suffering from a charge of forcing

go ahead more rapidly than they wanted

to.
In

I an convinced that we should take the posi-

WI'

tion that the F

possible to cone
propose to use t

and possibly

re/ Reserve Bank of New York is nroposia; as promptly as

e the arrangement with the Bank of England; that
as the basis of arrangements

into any

that we are

countries

Bank of France

with the Bank of Netherlands and ultimately with

and that outside of those
enter

with the

four institutions

it would

Are then

the Reichbank

net be our policy to

alliance contemplating purchase of bills and mutual guaranties;

prepared at once to conclude

arrangements with banks in other

by Which those banks would open accounts with us and under which we

mt.

January 10, 1917.

Jay.

J, d agree to ear-mark and hold gold for them, but that we would not

.4!111110 844 ard it as prudent to make such relations reciprocal with such institu-

.ons as the Bank

fr 3*.

of Snain, with NorweLjan government bank or even

with

the National Bank of the Argentine, without further study of their laws
hose countries, as
q4k444441k

and a full understanding as to the gold sit
our aodounts with them must be on a gol

as a part of on

Which they would hold for as would co

The most practicable my of handl ng this matter

preliminnny correspondence wit

n those

-.ger

I hope this answers

te be rushed unduly

ur letter.

d if

The

Board feels

visit

if you

will be handled carefully

that I am prepared to meet you any Where out here for a
get away.

Faithfully yours,

BS/CC

Pierre Jay, Esq.,
Federal Reserve Bank,

York

City.

and conservativel:-

wondering all the time about that cough of yours

With wart regards, 1 am,

New

it personally and thor-

to me than any other feature of the

e inte

eystei.Q4 I do hope,tha
and don't for

necessity for more prompt

when these matters are being con-

ing

I deepapregre

Are

ries in the ex-

matters are too important

we can discuss

bank come out to visit me

sidered; they are of

end that some officer of the

action that this, I

oughly.

..IA reserve.

onclude matters personally.

,actatia that later on we

Denver, Colorado,
January 15, 1917.

Dear Ur. Jay:

which answered

Your telegram of the 13th crossed my le
your inquiry about the election of a

r of the

but to make sure that you had my vie

in ease the let

sory Council,

miscarried,

I telegraphed you yesterday as follows
Believe reelection pres
r is most des
le.
to be ass
cent ±... cement rewi
gardind treasury bills.
so his inf/
oe an °operation
in foreign matters is j
now of value
system and three
year term conforms to s gested scheme o

Any change sure

tation.

Elabortting somewhat, let

Morgan's reelection

is quite necessar

ents. To drop him now,
prevented his attending meetings,

even though his absence

4 way with

would seem to be assoc
of the Reserve Board
misfi.

tine.

It might

I can s
view expres
This w

o the row=

sury bills,

the

recent announcement

Alien would be a

so interpreted here,

great

but confidentiall

possibility of this being understood as confirmation of

abroad hat we had a pro-German system.

make a three year service for him 4hich would conform

tions of the Reserve Agents.

Mr. Morgan has

been of the greatest service to us in connection

with our foreign arrangements.

He is broad-minded enough to

continue

to assist as when needed, whether reelected or not, but I think 40
ability to do so is considerably increased

if' he remains connected with

the System.

Another consideration Which 1 would not urge but Which I still

To - Mr. Jay.

January 15, 1917.

feel is the influence which he later may be able and willing to bring
to bear to round up the recalcitrant trust companies.

I know he wants

to help, he is a true believer in their taking membership and we have
got to renew our attack some day soon, so on the whole I recommend his

reelection.
You may be sure I am awaiting wi

transpired in Washington.

Best regards to you all.

Pierre Jay, Esq.,

Federal Reserve B

New York Otty.

BS/CC

Interest some

ort of what

Form 1206
.CE DESIRED
.y Message

Letter
4ight Message

Night Letter
ons should mark an X oppoJ the class of service desired;
ERWISE THE TELEGRAM
MITTED AS A
rDAY MESSAGE.

WESTE
WESTERN UNION

TEL

il&Nttql 1/1

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT

following telegram, subject to the terms
On back hereof, which are hereby agreed to

UNION

Receiver's No.

COPY.

Colorado Springs, January 23, 1917.
111471YRT, Colorado,

Pierre Jay, New York City
Argument was based on hypothesis we could count large gold fund derived
from note issue as assets stop. In that case gold would be released to exporting
member banks in four ways. First they could liquidate stock exchange and other
loans, receiving silver certificates and greenbacks at clearing house which they
would deposit with us and ask gold for excess balance. This makes us in effect
redemption agents for Treasury and converts gold reserve into other money. Second
same members could also concentrate collection out of town checks with us, creating
excess balances for same purpose, but we would get gold through settlement fund
and the conversion process first described would shift to other Reserve banks. Third,
should be
They could present our notes. Fourth, Get gold by rediscountihg.
prepared to meet demands in all these forms instantly and without hesitation and
could do so if our note issue was right.
Benjamin Strong.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE F(
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the or
on,-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED Ti
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNRI
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telei
f or sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of it
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for t
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid
or, Der cent. thereca.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any oth
d2stiaation.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and withi,
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offic.
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing
filed with the Company for transmission.

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UN
NEWCO

FAST DAY MESSAGES
A full-rate expedited service.
NIGHT MESSAGES

CLASSES OF SERVICE
Letter shall be delivered on the
events; but that the Company's
to the condition that there shall

Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS'

A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night
Letter rate for the transmission of 50 words or less and one-fifth of
the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

mission and delivery of such Day
regular office hours, subject to the p
ular telegrams under the conditions n
No employee of the Company is autho

NIGHT LETTERS

imo

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shah be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those

c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a

be deemed to have discharged its obligation ni such ca.:

is not permissible_
lnfn

diellarge of the obligation of the Telegraph Company to

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

enumerated above are hereby agreed to:

A. Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the
-any shall

th i.espect

to delivery by mailing such Night Letters at destination, postag
prepaid.

°ben 1,. ..44-r.,-, in nlein English. Code IL

--ua

Denver, Colorado,
January 25, 1917.
CCSPIDLSTIAL.

Dear Pierre:

visit with

Yours of the 18th reaches me after a few da

tially

Masson at Colorado Springs. I must writ
tantly about the suggestion of John Bassett Moore, con
on.

telegraphed today as per enclosed

d how in

He has no knowl

booxs and

to us, I fail to see

the world it could be

ture on international law,

suczested that a man

teldt

talks with

would be thoroughly imprac-

Warburg convinced me that as a d

write

ng which

sions which he has had with

him an various subjects and re

ticable.

A number

and reluc-

that subject, could be of value
ly violate the provisions of the
be men of banking experience.

Act requiri

he is decidedly a reactionary and superconservative on

Purthe
various

bjects which ar

liberty

write Delano,

f vital interest to us.

1 do not feel at

t hope you will not hesttate to represent my

views stro

The Malburn appointment is, of course, a dandyl nothing could
suit us better.

He will solve the nnny problems in our District to

everybody's satisfaction, or I am very much mistaken.
I will be glad to see Curtis and hear details of that announcenant.

I guess the pressure was pretty strong, judging from suggestions in recent
letters from Washington.

Thank you heartily for your letter.

write separately in reply to your others.

Very sincerely yours,

I will

WM
: DESIRED

Receiver's No.

ssage

Check

irk an X oppoer lee desired;
E TELEGRAM
VIITTED AS A
/IESSAGE.

CII

1206

Time Filed

NEWCOMB CARLTON, PRESIDENT
BELVIOERE BROOKS, VICE-PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT

ag telegram, subject to the terms
r, which are hereby agreed to

Denver, Colorado,
Januar,: 25, 1917.

Pierre Jay, rederal Pottery° law.,
Now York City. N. Y.

iOOro

oazostion imrossos clo most unfavorably particularly

when not referred to you or no stop. Hope you advise Delano I am
decidedly oppooed to ouch anpointment.
Benjamin strong.

Ck:. Benjamin ttron64
4100 Montview fllvd.
7onver.

ALL TELEGRAMS TAKEN BY THIS CO

:T TO THE FOLLOW!

NY AR

To guard against mi.takes or delays, the sender of a telegram should order it REP
ffice for
iegraphed back to the origina'
s-half the unrepeated -Leh grain rate is charged in addition. Unless otherwise indicated on
IS AN UNREPEATED TELL,
- AND
consideration whereof it is agreed between the sender of the telegram and this Company as follo .
The Company s . ill not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPE &TED telegra
,eived for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty
sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for er
;grams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, o
ised by the negligence of its servants or otherwise, beyond the sum of FIFTY DQLLARS, at which amount this telegram is hereby valued, unless a gr
iting hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value
Der cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when fled
3tination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such
ens. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his ex,
itract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is
one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days afu
d with the Company for transmission.

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classt
foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UN ION TELEG RAP
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
AST DAY MESSAGES
A full-rate expedited service.
I G HT MESSAGES

Accepted up to 2.00 A.M. at reduced rates to be sent during the night
id delivered not earlier than the morning of the ensuing business day.
AY LETTERS

A deferred day service at rates lower than the standard day mes?,.e rates as follows: One and one-half times the standard Night
Ater rate for the transmission of 50 words or less and one-fifth of
a. initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
'er" service, the following special terms in addition to those enu-

Letter shall be delivered on the day of its date abso
events; but that the Company's obligation in this re,
to the condition that there shall remain sufficient tim(
mission and delivery of such Day Letter on the day of
regular office hpurs, subject to the priority of the tran
ular telegrams under the conditions named above.
No employee of the Company is authorized to vary tl

NIGHT LETTE RS

Accepted up to midnight for deliveiy on th
ensuing business day, at rates still lower than standar,
rates, as follows: The standard day rate for 10 words
for the transmission of 50 words or less, and one-fifth o
day rate for 10 words shall be charged for each additio
less.

ted above are hereby agreed to:

Day Letters may be forwarded by the Telegraph Company as a
,rred service and the transmission and delivery of such Day Letters
in all
subordinate to the priority of transmission and

livery of respects'
regular telegrams.
B.

Day Caters shall be written in plain English.

not permissible.

Code language

This Day Letter may be delivered by the Telegraph Company
telephoning the same to the addressee and such delivery shall be a

mplete discharge of the obligation of the Telegraph Company to
liver.
D.

This Day Letter is received subject to the express understanddoes not undertake that a Day

; and agreement
that the Company

.41

SPECIAL TERMS APPLYING TO NIGHT LET'

In further consideration of the reduced rate for this
Letter" service, the following special terms in ad.
enumerated above are hereby agreed 10:

Night Letters may at the option of the Teleg
be mailed at destination to the addressees, and the

be deemed to have discharged its obligation in such cal-

to delivery by mailing such Night Letters at destii
prepaid.

Night Letters shall be written in plain English.

is not permissible.

No employee of the Company is authorized to vary the for

Denver, Colorado,
January 2C, 1917.

Dear Pierre:
About the rear door, mentioned in the wee

report, I agree
with Mr. Woodward that the original plan was by 1 the safest and that
it would be much better to provide

sep...

fifth floor, and keep the crowd ou

the force on the

own office.

other elevator, for which framl
have no doubt that later we

a e access

mately the

should be installed and I
f the space now occupied by

the booths in the corridor.
The matter of go

Curtis wires
to Colorado Springs

arrives Sunda

veninf, and we will probably go

or his visit. I annot wait for his arrival,

but of course I want
Res

n another letter.

bmrds to a

wall before he loaves.
rd -worked slaves.

Yours faithfully,

--ierre Jay,

Federal Reserve Bank,
New York City.

Denver, Colorado,
January 26, 1917.

Dear Mr. Jay:

After further considering your letter regardin

matter

or Harding

of gold bars, I have taken the li

ting to Goya

as per enclosed copy simply in

time, as I regard the

matter as of much importance.

desirable for the bank to

make a formal application

Pierre Jay,
Federal Re
New York

BS/CC

ank,

Denver,. Colorado,

January 27, 1917.

Dear Mr. Jay:

Thanks for yours of the 24th and for
the luncheon.

of your talk at

the

Please don't hesitate about publise ng it on account of

any thought of plagiarism. We are all
over in different words, and

thing many times

ying the

it all he pa the good ,,,40444o
along. Besides

that, I haven't any feelings on s

are noted in pencil

The only suggestions tha

and the following comments re

serve Notes really eliminates

The facility for issuing Fed

one element of confus

4 because the Aldrich-

Vreeland machinery

it been prompt,

House loan certifi
the paragraph

es might not ha

thi

mention two re
are ra

;

drawn on

International payments.

ts in

the London discount market

there are re I y three. One is that

of finan

; another is that it
Land

Therefore I think

bject choud relate more specifically to those

confusion re

elements

been needed.

Clearing

when rates

it stops the drawing

leads purchasers of bills

carry them in portfolio instead of

discounting them

the market; and the third is that it attracts new money to London for

investment in bills.

The volume of bills you mention is really not held solely in
London,

but principally in the Bnglish and Scotch

banks, as bill dealers

like the Union Discount Company and more particularly the firms

January 27, 1917.

To - Mr. Jay.

distribute bills to all the provincial and Scotch banks in large
volume.

Mnny of these have no London offices.

I am under the impression that a fair average of the reserve
in the Bank of

England

450,000,000.

It seems to me this para

banking department is nearer 4200,000,000 than

however, Which is that the English mon
ways had so much floating capital inv

is principal point

st years al-

market has in
ad in

foreign c ;"ts which can

be promptly recalled home, that it has a claim for elm

old resources.

upon the gold of other natio

England rate will bring

You will recall the axiom
gold out of the ground.
bank act

is never

a 10 discount

instant payment

t axiom grew on

of the tradition
bank has first

reason

rate,

that the

established

only that a 10% rate was

established in August 19
,,eserve Bank resources representing

The reference t

ne power is a little obscure to the

only one-half of the

nod, also the word "cover" I think would

gene

relate to
particularly
The Sea

ity and the word "reserve" would apply more
the porportion held in gold.

ry of the Treasury has, I believe, full discretion

now as to theaminations of silver certificates and United States

notes and generally the policy has
the smaller denominations.

been to increase the

volume issued in

It is the gold certificates which are con-

trolled by statute.

Reference to

would be generally

the gold cover of Bank of

England notes I believe

misunderstood, as the public ordinarily

does not

Jury 27, 1917.

To - 1W. jay.

understand the difference between the issue and the bank departments.

They will read in the newspaper that the reserve of the bank is 18;4
or 19'7; and will wonder why you make the statement that the ,;old cover

is 66 ; I would elaborate that a little.
I thinc the address is very good

cod and woul

ertainly have

it printed.

The news about Malburn is immense and I know yo
much pleased as I am.

marah, Who is quite

I am

unkno

mention. I would prefer
suggested as some

e all as

the two capacities you
r of those which you

2collent directosa, and

I know so little about

I hope that you
and advise him offici
power

ich can be do

and do

get into communication with 2a1burn

officially, that anything in our
itate his work, is at his disoosal,

positively and unconditionally that the record will be

unmistakable

fellow and I am delighted at the appoint-

ment.

Very sincerely yours,

Pierre Jay, Lag.,.

Federal Reserve bank,
New York City, N. Y.
BS/CC

Denver, Colorado,
February 19, 1917.

Dear Mr. Jay:

Reference is made in a recent let

undors attend-

ing a meeting of our Board and I read in the newspape

his ap-

pointment.

n t know

Would you mind

4ho he is or anything about

particularly as I would like t

about it?

reciate all the news,
and haven't his address.
sincerely,

Pierre Jay, Esq.,

Federal Reserve Ba
New York Ci

BS/CC

Denver, Colorado,
February 21, 1917.

My dear Jay:

I have two interesting letters fram you b

ve been behind in

my correspondence and this is my first chance to a eh up. Mr. Cann has

Eoh4e situation.

sent me some eorreseondence about the Spanish

After

reading it over I am satisfied that the oard in Was
on has gone off
half cocked about that matter and t
e is nothing
ver to be
accomplished by dealing with Spa
their own request and initiative. If the matter comes up
you mind sending me particulars?
ad just what we ought

I hope you and Mr. Treman

the gold bars, because

led right we may get caught

on ame loss, but if

po ition of the Bank will be

mach strengthened.

the character of the arrangements

to be made with,he T

That you want to accomplish is to

tee stan

get United

s, without paying the bar charge of 50e

per 1000

d without bet

it beco

necessary to 0

How the

or gold c.

by negotiation
to one

to do about

to pay remelting
ender the bars and
'ement is

charges in case later

take out gold certificates

to be worked out must be developed

that you delete

Department, and I would suggest

of our officers,

say Mr. Cann, the task of making a thorough in-

vestigation of that subject and a report to the officers, copy of Which I
would like to see.

yourself;
the

office

Please do

it will take

perfectly

not make the mistake of trying

time needed for other things

competent

to work up the

and

detail.

to do this

there are men in

Mr. Jay.

February 21, 1917.

What Mx. Malburn says about greenbacks and silver certificates
is true enough; they were not presented In large quantity in 1914, but
just the same when we were trying to raise 4180

GOO of gold for the

New York City debt payable abroad and to meet othe

obligations due

used. Its use was

abroad, the gold held in the Trust fund could not

had it been used

never suggested and

wonld have caused

serious uneasiness.

I am glad to learn of the

of arrangements with

Malburn.
I hope the detail of the of

rangement will not be allowed

echanical arrangements of

to run along until we

and we can now afford to

office Should keep
spread out a bit, as

be pretty well assured.

Curtis and I

Bishop

Atw.01.1t;

good

n our visits

is 100,

en has written

a little more

cannot get

with

your friend

e and thoughtful and shared many a

Us - at I

deeply iielit,
rebutb ha
see if I

t we with him.
n

of his decision not to core to New York.

written him

once more to try and draw

him out

to his reasons, and to put it up to him again and
him to core out here and talk matters over.

Starek's letter is certainly very decent.
any deep affection for

I do not think he has

you or me, however.

I have read the draft of the report of the committee

Reserve

the

bank drafts which you send, also

they are not quite the same, but I

on Federal

one received from Mx. Treman;

judge yours is the latest vintage.

3.
To - Hr. Jay.

February 21, 1917.

I will write him on that subject as my correspondence has been with
him right along. The deeper you follows get into the subject, the more

will be convinced that the plan which has b. gradually evolved in
connection with foreign exchaage is the only safeliyou

nection with these drafts.

You may come

o it rel

to amploe in con-

antly, but come to

it you will sooner or later - possibly fter some lo -e eh as San
Francisco seems now to face in onnjV
th the Seattle ,.ilures.
Let me suggest that you f
duplicating too much on some o

a letter from one and sometimes an

ing that work overlaps

to continue for it

al matters. Sometimes I get

on the same subject, ineicathope that is not allowed

s a wretched o

Thank you head ,le for keeping'

little more u-

office try and avoid

ter my bull

nization.
so well posted.

sit with Curtis.

regards,

Faithfully yours,
Pierre Jay -sq.,
Federal Res

New York City.

BS/CC

I feel a

Denver,

Colorado,

February 26, 1917.

Dear Mr. Jay;

Thank you for yours of the 23rd in regard to Mr. Saunders.

You

glad to have as I

don't give his full name and address, whi

would like to write him. The appointmis a disappo sment to me, not

entire stranger

because he is

because I know anything against him,

and I have no information as to his qualifications.

ibly ::oodward

knows him well enou6h to hay
argument abou. is being qualified because

I don't cotton to yo

an by that stat.ø nt that he was a "deserving"

he is a Democrat; did you
Democrat?

It is imperative

the bank who are responsible
lly informed

for extending credit sha
banks on the doubtful

ot.

Treman should

su mit a formal request to the rederal

Reserve

make a record to justify what I would then recommend as a

, viz.- that we should announce at once to

policy of the
banks that we

re is any delay or hesitation on the

the expectation that we will get the information,

Board, not

but in order

status of all

lOalburn necessary authorities, it seems

part of the Comptroll

to me

in regard to the

e proposing

to develop an

the member

examination department and make

the regular policy of the bank to examine member banks from time to time,

not necessarily as

to the

frequently as does the

relations now sustained by the

Comptroller, but with due regard

various members with

implying of course that our eTeminations will be for
whenever we believe it desirable

make them.

the

Reserve bank,

OUT awn information

This, of course, should be

To - Mr. Jay.

February 26, 1917.

submitted to our Board as it is an important matter of policy.
you be good anough to take it up with Mr.

Won't

Treman?

In view of the statement contained in your letter about the
National Butchers and Drovers Bank, it is nrillecessarj to introduce a
word of caution as to the kind of paper bha
care with which it is ohecked up.
Very si, ;rely yours,

Pierre Jay, :sq.,

Federal Reserve Bank,
New York City.

BS/CC

from them mid, the

All
Alg

Form 1206

CE DESIRED
age

WESTE

UNION

WESTERN UNION

ffight Mess,
Night Letter
Patrols should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL".;

Receiver's No.

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

'he following telegram, subject to the terms
,,ereof, which are hereby agreed to

Denver, Colorado,

iebruary 26, 1917.

Pierre Jay,

Federal Reserve Bank,
York City.

Wire received. Glad application apnroved stop. Lnewering your query see item

of table of charges of ants and Assa:), offices effective.April fifteenth last

If we deposit foreign coin or bars we would ordinarily receive payment in
certificates thich 1: tnrn are e7,-&-ian,;eable for geld coin that may have been
t abraded and thereby suffer loss. step. If we tate fine or standard bars we

we are
t pay the charge of fifty cents ner thousand dollars of value stop.
umulatin; bars for purpose of export at bullion value in order to avoid abrasiol
as on gold coin we Should likewise if posible avoid paying the fifty cents char
o. If we deposit gold coins o standard values such as English. or Prench refin

ense should be nominal and Treasury possibly will waive the bar charge.
Benjamin Stron;.

Chg. Benj. Strong,

4100 Montview Blvd.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FC
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the ori,
;.one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TE.
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREI
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegt
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its
telegrams.
In any event the Company shall not be liable f or damages for any mistakes or delays in the transmission or delivery, or for
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby v.
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid b:
eec:ler cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any othei
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as hi
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices,
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing v.
filed with the Company for transmission.

Special terms Governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each oj

.he foregoing terms.
S. No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNIC
IN

NEWCOM

CLASSES OF SERVICE
'AST DAY MESSAGES
A full-rate expedited service.
1IGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
ad delivered not earlier than the morning of the ensuing business day.
)AY LETTERS

A deferred day service at rates lower than the standard day mestge rates as follows: One and one-half times the standard Night
etter rate for the transmission of 50 words or less and one-fifth of
le initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
tter" service, the following special terms in addition to those enu-

nuted above are hereby agreed to:
A. Day Letters may be forwarded by the Telegraph Company as a
Ferred service and the transmission and delivery of such Day Letters

in all respects, subordinate to the priority of transmission and
,,ery of regular telegrams.
:. Day Letters shall be written in plain English
Code language

iot permissible.

This Day Letter may be delivered by the Telegraph Company
telephoning the same to the addressee, and such delivery shall be a

gplete discharge of the obligation of the Telegraph Company to
ver.
.

This Day Letter is received subject to the express understandand agreement that the Company does not undertake that a Day

lit

Letter shall be delivered on the day
events; but that the Company's obl
to the condition that there shall rema
mission and delivery of such Day Letter
regular office hours, subject to the prim
ular telegrams under the conditions nam
No employee of the Company is authoriz(

NIGHT LETTERS
Accepted up to midnight for delivery
ensuing business day, at rates still lower
rates, as follows: The standard day rate
for the transmission of 50 words or less,
day rate for 10 words shall be charged fo

less.

SPECIAL TERMS APPLYING TC

'In further consideration of the reduced
wr
Letter" service, the following special terms in
enumerated above are hereby agreed to:

" NZ

to thos,

Night Letters may at the option of the Telegraph Compan
be mailed at destination to the addressees, and the Comps av siial

be deemed to have discharged its obligation ni suet, cases wi Ch 'respec

to delivery by mailing such Night Letters at destination, postag
prepaid.

Night Letters shall be written in plain English. Code lnriguag
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Denver, Colorado,
February 27, 1917.

Dear Mr. Jay:

Federal

Your telegram, advising the consent of the
to the appointment of

concerned, but still feel that 1 shoul

to you or Mr.

ed and of course

the 3aak of France,

I am glad to have this matter settled B.

Treman once before,

Reserve Board

ar as the act

of the Board is

epeat What I t

I have written

that we have

been fo

by the Board's
e horse in these

unfortunate annOuncement into
negotiations and in a way

e us a little embarrassment

if we should fall in closi

I refer particularly to

the possibility that

in our dealings with

e may

f having announced our inten-

Pallain, When we would

ce and then being turned down.

tion of appointing the Ba

behooves us now to get

About your (11108
gold ba

replied by nig

same telegram as to the 500 charge for
letter as per enclosed confirmation.

may net have realized in these matters the

Pose

great importan

of the subject of abrasion on

American geld coin and,

generally, of A

y Office charges then you owe to deal with gold bars

for export.

roblea has two sides: one being presented when we take

gold to the Assay *Office, because what we receive in payment is simply
the

checa- of the Assay Office which may be exchanged at the Sub-Treasury

for gold certificates or for actual gold coin which is within the limit
of abrasion, viz.- one-half of one per cent,

bars, to which I shall refer later.

,nd the other when we get

There is no way that I know of by

February 27, 1917.

Which a depositor of gold at the Assay Office can get the actual full
equivalent

of the gold

contained in 'his deposit in the shape of

American

gold coin that is brand new without any abrasion, except that occasionally
he may have good luck in getting bags of eagles which have been recently
At any rate, it is not a dependabl

minted.

any means and,

the Assay Of-

consequently, when we turn gold in for

own account

fice in order to get out from the Tree

gold that is

table for
Then the

ear-marking or export, the safe thing is to take gold
presents

other side of the question abe
Assay Office makee a charge

f value for bars of mint stand-

per $1000 does not seem to

ard, or greater, fineness.

be very severe when

Id i

n small quantities,
undertake

the Federal Reserve B

the letter

that

d by the Bank of England in the exchange rate.

I thought

you turn it eve

to the Bank of Ehgland

t did on the subject of bar charges which

conta 7the provision

be dealt with

to accnmulate $50,000,000

it would cost double that.

undertake to acormilet

I am s

but if

000, or if the System as a thole should

of gold bars, it would co

It was for

if because the

I have no suggestion to offer as to how this matter can
ept by negotiations with the Department.

I suggest that

o some of our fancy figurers at the office and let them

wor up a suggestion.
Please bear in mind the

and the position of a

bank

distinct difference between our position

Bank wants to export gold, it

the National City.

If the National City

makes up the figures to show what the ex-

change is to cost, based either upon getting gold coin where the abrasion

February 27, 1917.

To - Mr. Jay.

may ran any Where from 1/4 to 3/8 per

Where there is practically MD
the 50V a 4000 premium.

cenV, or upon

abrasion, but where they will have to pay

Bars always produce cheaper exchange than coin,

but Whatever may be the cost it is figured

the exchange rate so as to

absorb the abrasion loss or the 500 charge, so
to the City Bank out of the proceeds of

s quite different

We would be shipping gold, or ear-marki
we owe to a creditor and the do

t it always comes back

lunge sold.

Our position in exporting gold

m that.

account Which

it, to settle

e dealt with

the basis of

uping ourselves for

its intrinsic value, with no

abrasion or bar charges in

therefore, When the Bank of
settlement of balances due

England, for example, as

them,

getting gold bars

rresnective of whether it is

it means so

in the form of coin Which

we have paid a premium.

the form of gold bar
Of course the

England when we

Bank

England i

n at face value, though abraded, or

rs to put the same burden on the

to ship gold to us, but

the :Auk of

position-to protect itself at all times because it is the

market for go

in Lond

A large nart of the gold that it

'cots is pur-

chased on the

s of its bullion value at the rate of 77 s. 9 d., so the

ban': sustains n

oss for abrasion on account of its large purchases of

bullion, and it is also protected against mint charges because the bullion
which it buys at 77 s. 9 d. per ounce is converted by the Mint into gold
coin at a rate which will produce 77 s. 10-1/2 d. per ounce.

Were we in the position which we should be in, of buying gold as

does the

Assay Office, we would be afforded the same protection because

To - Mr. Jay.

February 27, 1917.

our gold would come to us largely upon the basis of intrinsic

bullion value.

the above I make no reference to remelting charges, which I

understand you have already thoroujily invest

en decid

only arise after we have obtained bars
instead of keeping them to meet possib

for bars and the remelting char

to adopt

cause I do

be recovered
weber

or policy shoal

thoroughly stu

which

featurei of

are doing.

Who are compete

in eve
,

adopted.

ossible for me to do more than point

ftok n touch with t

standing of t

for export, be-

e is based upon a very general knowledge

of these matters, and i

vestigate

the bank, if we

be adopted until the Whole

policy

What I have written

Out certain difficult

e charge of 500

and Treasury Department has

the Assay Off

subject of our relations wi
been

lity that both

the policy of

not think the 1

o surrender them

export demand.

Nor have I referred to the possi

were

and Which, of course,

have to be dealt with and leave it to you
Office and the Treasury Department to in,

t thoroughly, so that we may have a full underdetail, and so that we are sure we know What we

I want to suggest that we have lots of men in the office
to make these studies and investigations,

you or Mr. Treman or Mr. Curtis with the

without

burdening

task.

I hope the above proves to be of some value in working out the
)roblem.

Very sincerely yours,
Pierre Jay, seq.,
Federal Reserve Bank,

New York City.

Denver, Colorado,
March 1, 1917.

Dear Mr. Jay:

Your second telegram in regard to the remission of Assay Office
charges has just been received and I am repl
closed.

telegram as calling for an argument as
suaded to waive the 50c! charge.

the standpoint of the Reserve B

how the Trees

might be per-

t it was rather

e argument from

u wanted.

have always been quite

my telegram,

Elaborating somewhat

tend your first

I did not

Possibly it was my stupidity t

clear that the Reserve b

gold bars, provided they

could do so without r sk of

ense, because it seemed

so inevitable that the
'eost war developments.

bars except we succeed
ter contemplated in L

ng cnpletia

now a
bars at an

export would be one of the

not interest us particularly to have the
banking arrangements of the characsibly Paris.

With those arrangements

hink we are justified

accumulating the

to you of February 27th explains this

some

detail.

If you
that the Fedora

1 assume for the purpose of argument with the Department
°serve Bank gets all imported gold and that the Assay Of-

fice is only called upon by the Federal Reserve Bank to take gold coin or
bars and convert it into standard bars and hand them back to you, I think
you will realize that a considerable saving will be effected to the government.

All of the expense of shipping gold for coinage purposes from New

York to Philadelphia

will

be eliminated as to the gold which we retain.

To - Mr. Jay.

Likewise

York

March 1, 1917.

the expense of shipping the coin from Philadelphia back to New

the actual expense of minting

the coin will

avoided and the ex-

pense to the Treasury Department of using large quantities of gold certificates and

constantly

reissuing them, once

t into

circulation,

will also be avoided.
There are other arguments
quite as apparent as this one.
is intended

and

that m

t be

stand our free

that citizens shall

to t

the mints and assay offices

If we undertake

as a matter of

in order

this

out of us in t

charges

patriotism, as for

out of which they make

a profit,

terest, should be conducted at as small a loss

other words, that the government should not make mosey
particular department of our business.

Then again, if we advance

instead

the government

department of our business which is conducted at a

loss and in t.. public
as possible.

The

d think it would justify our asking

note

nt to waive

the L,

inage laws, it

government.

operations to relieve

some heavy expenses and

with our

are not

em these various assay

large sum, no

instance

ofitable; I think last year
f millions net; at any

operation of the mint, how

charges.

d to the mint

have it coined practical

rate a

advanced

money to

make cash payments for gold

of the Treasury making those advances, it frees a certain amount

of money in the Treasury Which may be some advantage to the government.

But after
Which

all our claim should be based

upon the broadest ground

that we are undertaking a buhilesfiunction at considerable expense

March 1. 1917.

To - Mr. Jay.

to us, Which

heretofore the government has conducted a t

a profit;

the government should at least forego the profit in our favor.

transactions in

Now all of the above relates specifically
coin and bars of

known quality, that is suitable

coinage purposes,

There is 450,000,000 of gold produced in this co

every year which

is turned in to assay offices and mints

West;

some extent in New York. Also the a

tions with various

is used commercially

East viho deal in

ucted, as to the quality of

than the coins of

lir

any kind of gold other

ry f

ref nil

can simply suggest that
will be glad

best regards,
Faithfully yours,

Pierre Jay,
Federal Reserve Bank,
New York City.

BS/CC

the present time

standard of coinage and bars

which are at least o
matters al

us at

for

the gold handled and

effect an arrang

gold that

I am entirely in the dark

instead

as to the way these transactions

s transac-

office in New

refineries

it may be to

these

to hear the result.

Denver, Colorado,
March 2, 1917.

PERSONAL.

Dear Mr. Jay:

I suppose it is better when one fee

t it out of his

system right away, rather than to let
note to lodge a complaint on the way t
handled by the bank.

lug this personal
s question about ...ld bars has been

If you will loo k back through the

dressed to the officers at th
made from J. P. Morgan

of gold were being
six months ago, certainly

(

three or four) you will ft

letters from me, urging that

steps be taken to i

acquiring ,old bars right away.

I went so far as to sug
the gold then being deity

e if possible to retain some of
the form of bars.

has been neglected dur
ought

o have all the

being

rrespondence ad-

This matter apparently

Jae and now at the last minute When we
nd

and know how to deal with it, it is

up by telegraph; a most unsatisfactory method of handling such

a complicat
standing and

One which is almost certain to result in misunderor.

Frankly, it is a very bad and slipshod way in which to

run a bank..

ow that it will sound ungrateful and churlish for one who is

away and under

h circumstances as I am, where you fellows are doing my

work and your own, as well, to be complaining about it but my complaint is
simply about lack of method and forethought in organizing this kind of work.
There are half a dozen men in the office that could have made this investigation and had it completed and effective long ago, had they been sot at the
job; that was the way the problems of the Fiscal Agency accounts were handled,

2.
To - Mr. Jay.

March 2, 1917.

and nothing could have been handled more satisfactorily.

think. you overlook,

Another thing that I

is that I am only able

from here to indicate a possible policy to be pursued in

these

matters, the

feasibility of Which must be developed by study, investigation and negotiations, on the

ground, Where data and

To tell you the truth, I am

writ

- this letter f

emphasize what bas been apparent to me

Senior

hat is that the

Bank do not org;, e their work nearly

officers of the Federal Res

me no end of

so well as do the Junior off

apparently been, just for

thought, such as would be

nec-

men as Higgins, Jefferson, Cann,

essary to give into

up an intelligent study and report.

the

I hate theee last minute

d go home and t

telegraphic decisions on important

this arises I feel tempted to pack my

matters, and everytime
trunk

worry out

o slide along, as this has

here to feel that things a

or almost anv one of

y to

nd out What is the matter.

get that longhand letter out that I wrote you About organizing
will understand my writing this letter, which is

the work, and
the frankest I
I know y

ve yet indulged in along these lines.

will take What I say

in good

part.

Faithfully yours,

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.

After reading the above I wanted to assure myself and convince you
have written is justified, so i am sending you copies of letters
on this subject, addressed to Mr. Treman and to you, commencing with jetober
13, 1916, which I think you ouggt to read carefully, and then please return
).S.

that what I

To
Pierre Jay, Esq.,

March 2, 1917.

to me.

Had these letters been regarded as of any importance, and certainly
my language was strong enough, this subject would have been investigated
and the nuestions raised, such as the one covered in your last telegram,
would all have been dealt with by correspondence between us in ample time,
so that we would know that we were about in handling the Banic of England
and Beni: of Prance matters.

BS/CC

Denver, Colorado,
March 5, 1917.

Dear -r. Jay:

Thanks for sending me the analysis of bills owned.

Odly the

following comments occur to me:

Brown Brothers is the largest 1
i should think was well along towards

if the Priva
-imam, but your

nation of their figures affords you bet er opportunity

ecent examijudge of this

line than I can have from her
Bank of United State
refully considered and

Landenburg, T
their figures fully

n about that situation

iscu

recently and have no
Yoknhama Slvacie B

about full, except t

000,000 line would seem to mo as being
-apear as endorsers on bills that I

should judge are oth
one, Timlow
resume y

not acquainted with this namo, but
ctory statement.

I am q ito unable to cheC,c up the lines on Trade Acceptances

and the vario
be nrudent to

foreign endorsers and

nv suggestion is that it would not

vs the determination of this matter entirely to one

in the office who is baying the bills.

This means no reflection

on his

judgment, but some one of the Senior officers should constantly, be review-

ing these lines and checking the judgment of the Junior.

It does not really seem necessary to send these figures out more

To - Ift. Jay.

March 5, 1917.

than once a month, as there is quite
a little wor4 entailed. I
sincerely hope you fellows are not
ovoraorking and that you succeed in

putting the detail where it belongs.
Best reeiards

many thanks for
Very s

r letter.
erely yours,

Pierre Jay, Lsq.,

Federal Reserve Bank,

New York Uity.

S. Nail just received

of bills, which I am r
,E110

s me another copy of the statement

Denver, Colorado,
:March 6, 1917.

Dear Mr. Jay:

I have just received a batch of
2nd, and thank you for all that you

am you of the

to.

None o

he letters

require particular reply so I won' 'inflict you.
Mr. Cann sent me the correspondence, etc.,
exchange.

rota the e

1 gathered the

originated in Washingt

'ut Spanish

r correspondence,

en un uly agitated by

this situation, which was not exactly as

d been represented to

them, leading,

unfortunate letter that

Governor Harding

mod out and I an migh
Unless I am
aratie exchange m

I now seems to be straightd of it,
in now on we are going to see some

situation will

Faithfully yours,

Pierre Jay,
Federal Res
New York City.

BS /00

certainly

need to be

Denver, Colorado,
/Larch 6, 1917.

Dear lir. Jay:
Many thanks for yours of

h 2nd in regard

director. Which I have read with interest. I want
and meantime hope that yo

Pierre Jay, Esq

Pederal Reserve B
New York City.

BS/CG

our now

write him

sable associate.

Denver, Colorado,
March 7, 1917.

oar Mr. Jay:
How about our Annual Report?

sumo it has been rinted and

distributed by now, and l would like right well to see

as well as a copy of the

the

Reserve Board

to Congress.

urs,

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.

copy of it,

Denver, Colorado,
March 7, 1917.

Dear Mr. Jay:

Thanks for sending me copy of yours o

Secretary gcAdoo on the subject of Assay

r66,d,,,. addressed to

Lice relati

which strikes

me as being first rate; I hone it prod s results.
would not hesitate to undertake to store just a muen gold for
that we are willlear to idc
the Assay Office as possible
trig and anxious to strain 0

e utmost in order to be of

service, because, reviewin

half years, i am sure you

will agree that they

and frequently at incon-

venience to themselve

rdial reply to this suggestion

will undoubtedly help.

erely yours,

Pierre Jay,

Federal Rose

New York City

BS/CC

Denver, Colorado,
larch 7, 1917.

Dear Mr. Jay;

I have just been reading the memorandum re
experienced with the Yokohama Specie Bank during p
have stiffened in new York.

In this co

ting difficulties

ode when money rates
ou read the memo-

randum in the Credit file, reporting my conversations
London

about this

institution?

It is very important tha
a course in this matter which wi
trig.

I have always urged

tions to brokers or ot
These explanations a
standings.

the bankers in

It scams

are not in tY

d the other officers pursue
ossibilities of a misunderstandulously avoid making explananot buy specific bills.
statutes; they load to misundericy to pursue is always to say we
that we are not interested at the

ther words, our policy towards the Street should be never to

make exp ,a,tions so that
Bank a "y

ment of a b

y are trained to understand that at the Reserve

or "no" ammo can always be given without implying an indorseor,

Other hand, without an.; reflection upon a bill.

In case the Yokohama Specie Ban4 should make direct inquiry of us on this
subject, we can well afford to tell them that our policy as to the bills of
that bank has been amply disclosed by our acceptance of their figures and
by the considerable purchases that we inake from time to time, but that the

Reserve Bank never makes commitments as to the amount of bills which it buys
and its policy must be to keep free of any understanding or obli,ations of
any character whatever of its transactions under Section 14.

To * Mr. Jay.

March 7, 1917.

If they display any uneasiness or dissatisfaction, it might be
pointed out to them that American institutions and firms with which we
deal under Section 14 voluntarily furnish us with considerable information about their affairs and,naturally, that 0

when we are in the market to buy must be

titude as to bills

erned some

t by the freedom

by which information is volunteered to

I am led to make these suggestion partly by info
gathered in London as to the pol
ing as sometimes it does wh
Cunliffe introduced me to

a good deal of tact to avo
known policy of the Ban'

are of

ed in are amounts.

on this point

I have

4,ested above, but that it took

ving offense.

He thought that the well-

explanations was their greatest pro-

of value .

ry sincerely yours,

Pierre Jay, Esq
Federal Reserve
New York City.

BS /CC

nk,

Lord

and he said that the policy

tection.

ope the above

d in discriminat-

head of the Bi 1 Department, Mr. Paget,

whom I questioned aarticula
they pursued was subs

Bank of it

tion which I

March 12,

Mr. Pierre Jay,
Federal Reserve Bank,
New York City.
Dear Mr. Jay:-

Thank you for your letter of the 8th which
was here on my arrival yesterday. Aiken was also here and
last evening McDougall joined us for dinner, so we had a
regular Federal Reserve Bank party. I am unable yet to send
you any word in regard to my talk with Aiken as that was
reser/red for this morning.

About the Philippine National Bank arrangement,
Dr. Willis also sent me a copy of his letter to the Federal
Reserve Bank of San Francisco and you probably have by now
read my letter addressed to Yr. Treman, which really states
all I am able to suggest at the preeent time.
Confidentially, I think our officers should take
into consideration some recent developments in Washington,
of which you may or may not be advised. Among recent amendments submitted to congress which failed of passage was one
which proposed that the Federal Reserve Board should have
power to require a Federal Reserve Bank to appoint corI have no doubt that
respondents abroad by their direction.
this change was suggested by some member of the administration
and had particular reference to business to be conducted in
South America and possibly the 2ast. It would be very much
better for us to agreenow upon the terms of arrangements
with such correspondents under the law as it stands and of a
character which would not interfere with the business of our
member banks, rather than run the risk of having unsatisfactory
arrangements imposed upon us as a result of some change in the
law such as the one I refer to.

Mr. Pierre Jay--2.

After my first letter to the bank some month ago,
on this Philippine National Bank arrangement Dr. Willis wrote
me that not having heard from us he assumed that we were not
interested in the matter and was going ahead with some other

plan. In general I have had a feeling that some complaint
had been made in Washington that we had been quite active in
negotiating arrangements in London and Paris, but rather slow
in making progress in South America and the Philippines.

The correspondence above referred to as to the

Philippine matter and the draft of a letter which I sent to
Mr. Treman last week I hope will answer your specific questions
about these arrangements, and as to our general policy I really
think we should show a little more activity than has yet been

evidenced.

I will try and, write you again tonight.

Best regards to all of the office.
MUTE very truly,

2-c-At?' 7 41
C-1 j-ei

Denver, Colorado,
March 15, 1917.

Dear Mr. Jay:

I am sorry to learn from Mr. Tre:an that y.

laid up

and hope that it is not serious.
Referring to yours of the 7th, my letter with

its was sent

for your own detailed examinatio

or Judge Curti

you take the time to study wh

yourself, I will feel that

and unless

all of my efforts have been thr

So far as judicial

erned, I don't mind you re-

taming Judge Curtis

that the judge is
to have a hand in

fidence, but don't forget
here in Denver

paring the jud
Very s

_Pierre

Federa
Eew To

BS/CC

y, Esq.,

esorve Bank,

City.

d he is the fellow that is going
nt of the Court.
ly yours,

Denver, Colorado,
March 17, 1917.

Dear Mr. Jay:

An advance copy of the Annual Report of t

Federal Reserve Board

is just received nn0 it suggests the desirability o
selection of the names of certain foreic

bsr'k

our making a careful
ich we would send

copies of our own Annual Report and of the Annual Re
It is hardly necessary for me to

list out here,

orally suggest sending copies t

the big stock

bankers of London that do an- import

Europe and South Ame
So many of t

mine or some o
might be
attenti

my compl

nt or central banks of

ca.

e institutions
beers are

od plan to gi

by attaching a
ts, but as'to

either old correspondents of

Bohai friends, that I believe it

nailing of these reports a little personal

nted slip, to the effect that it is sent with
at please use your own judgment.
Faithfully yours,

BS/CC

hanks and private

nternationel business, the same

o the v

heir

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.

t I would gen,

al publications of London and

Paris, to the Manchester Guard

in Paris and, of cour

of the Board.

Denver, Colorado,
March 19, 1917.

Dear Mr. Jay:

I have read with much interest your letter

lly so state, I

While the letter do

Secretary McAdoo.
assume that

and

d. The effec ing

coin import

'a approval, will

meets wit

arrangement, if it

make it

bars

bmit suggestions in regard

and even though we are

r Reserve banks, it might

to foreign arrangem

lock and ascertain whether the

plan to

he plan of accumulating bars so

other Reserve banks
e a

that we

of this

ments for aceumulating

increasingly important to affect

this li

of gold

the offer is not intended to anply to dep

other than bars

ee a good

March 14th to

If anything is done along

it might be well to intimate that the proposal is a prepara..

tory m e towards

the de

a occurml t

opment of our foreign business.

e that this Whole subject of the handling of
igated in other districts than ours.

I find on

making inquiry hare In Denver that the local Mint handles gold in considerable quantity,

produced by

a similar situation exists on
Alaska production.

the mines of this district and, of course,

thp Pacific Coast as to the California and

It would not be a difficult matter

for

the -Kansas

City and San Francisco Federal Reserve Banks to get a similar control of

To - Er. Jay.

March 19, 1917.

the local gold production that we would get under this arrangement of
the imported gold.

1 suggest your handing this letter to Seer
may want to put the subject on the program for th
Conference.

Pierre Jay,
Federal Reserve Bank,
New York City.

BS/CC

ry Curtis as he
ext Governors'

:nlver, Colorado,

March 26, 1917.

4
Thank you for copy of your letter of March 21st

Dear Mr. Jay:

Governor Harding, which I endorse

Let me suggest, if not

too

addressed to

without reservation.

late, that 1 think the Federal Re-

serve Bank, in view of the assistance which the government has

us in the Sub-Treasury and
its power to

elsewhere, should offer

tae care of the surplus

to do everything in

of sold now accumulating in New

York, even if it involves building new boxes

our vaults.

Very sincerely yours.

Pierre Jay, Esq.,
Federal aeserve Bank,
New York City.

BS/CC

given

Denver, Colorado,
March 26, 1917.

Dear Mr. Jay:

Thank you for copy of your letter of March 21st addressed to
Governor Harding, which I endorse without reservation.

Let me suggest, if not too late, that i think the Federal Reserve Bank, in view of the assistance which the government has given

us in the Sub-Treasury and elsewhere, should Offer to do everything in
its -,)ower to ta,ce care of the surplus of 6o1d now accumulating in Nes

York, even if it involves building new boxes in our vaults.
Very sincerely yours.

Pierre Jay, Esq.,
Federal :eserve Bank,
New York City.

BS/CC

Denver, Colorado,
March 51, 1917.

Dear 3,1r. Jay:

statement
1 was glad to have yours of the 27th, enclosing the
me
Liabilities. It discloses one thing which surprised

of Acceptance

is holding its
and that is the extent to Which the National City Bank
1 get baoK I

development and when
own bills.' This in an unfortunate
pernicious uractice.
am going to try and talk them out of this 1
naturalls/Aecline after about the first
Acceptance credits would
account of the reduced volume of current bills but I am

of February on

Showing is not larger.
bit disappointed that the total
Very sincerely yours,

Pierre ,Jay, Esq.,
New or City, N. Y.

Vederal Reserve Bank,

Bs/oc

Denver,

Colorado,

April 4, 1917.
Dear Mr. Jay:

It was nice to hear your voice over the

telephone last evening

Prd we were fortunate in having a fairly good connection.

regard to a foreign exchange man, I think I wrote you some

time age, suggesting
with the Bankers

thorough training
and is in

that

Trust Company for sole years
under Mr. Kent.

their foreign

sistant Cashier.

we might look up a man named "Brady" Who was

and I believe received a

He was taken by the National City Bank

department; I believe they have made him an As-

He is a fine lookint,

fellow, very much a gentleman,

has I believe independent means and Kent always thought him an unusually
good man.

We might explain to

Vanderlip that I feel as though I hall

some personal claim on him and it may be that he would develop into a good
enough man to put in

charge of all of

our foreign business, such as it is.

Better asa Mr. Kent about him first.

Pierre Jay, Esq.,
Federal

Reserve Bank,

New York City.

BS/CC

Very sincerely yours,

Denver, Colorado,
April 4, 1917.

rv11,7f.

CafFIDIZTI AL.

vts'kt1

cuk-.1.4

TVO'

Dear Mr. Jay:

The whole subject of Government

iinances

that we were discussing

last night should be dealt with by our Government just now on the very

highest plain of intelligent statesmanship.

Mistakes can

made that

During my exile out here I have been read-

will be well-nigh irreparable.

ing some books on this subject, one by the way recently published by your
friend Francis Hirst, who is a pacifist crank but has written a rather
interesting book called "The Political Economy of 'Var."

The histories of the English wars, as well as our Civil war, bring
out with startling distinctness the following essential principles of war
finance:

V
Borrowings by the

Government can

only be successfull7 affected

when the Nation is able to expand its revenues from
tent that confidence is inspired

the ability of

reduce the war debt at the conclusion of the war.

taxation

to such an ex-

the Government to

promptly

England learned this les-

son by mistakes nade in the Napoleon wars, the Crimean war

and even in

the

Boer war.
2.

The second important principle is the necessity for placing

loans on such a basis that it will advance in market value over the issue
price.
put

In such a situation as the present one the Government should not

out any

long time loans at loss than 3-1/2,; and should give the holders

the right to convert into a higher rate loan, in case subsequent loans are
made at higher rates.

To - Mr.

Jay.

A definite

April 4, 1917.

and well

considered scheme for retirement of the debt

out of taxes should be adopted now as a part of any borrowing program.

There has been much dispute by economists as to the wisdom of a government's establishing a sinking fund which operates at a time when it is

borrowing

money to duplicate its

borrowings for sinking fund purposes.

Objections to such a policy -would not apply in this country On account of

the enormous possibilities of revenues from taxation, consequently I think
our Government should at once adopt legislation looking to the establishment

of sinking funds that will give the public

assurance of the prompt retire-

ment of tne debt.

that we could conduct a

Believing as I do

war

for

years to

come and pay the entire cost out of taxes, 1 think the Government should
place only very moderate amounts of long time bonds, should announce definitely its policy of meeting war expenses by taxation

and then should

borrow

from time to time on short notes, pending the development of a revenue policy
which will permit the retirement of short borrowings.
As revenue.bills

cannot be made productive of income for

a con-

siderable period, the immediate problem facing the Government is one of

temporary financing,

rather than permanent

skill must be applied in order to
A scheme somewhat

avoid

financing, and right

here great

dislocating the money markets.

follows has been in my mind:

range to make all offerings of Government bonds

The Treasury should ar-

and short notes by districts,

the headquarters in each district to be the

Federal

pectus of each loan or issue should provide

that subscriptions may be received

Reserve Bank.

the price fixed through all Nationsl and State banks

and

The

pros-

private bankers

To - Mr. Jay.

April 4, 1917.

and through all post offices. Those subscriptions to be

turned in to the

Federal Reserve Bank of each district and when payments for

made,the payments to

the loans are

be distributed over a period of time and to be paid in

to the Federal Reserve Banks through the Member banks,

3.1 possible.

The

transaction may result in some rediscounting temporarily, if very large loans
are placed.

The ability of

the English Government to handle their enormous

loans without absolutely paralyzing their money

markets has been due

relations between the subscribers to the loans, the joint
Bank of Eagland.

place

To describe what takes

essity for a similar arrangement hero.

stock

to the

banks and the

there will illustrate the nec-

-Aeon a payment for say 100,000,000

sterling on a British war loan is made, investors all over the country draw
checks on

the joint stock banks, which checks

England,

this depletes the reserve balances Which the joint stock banks

are carrying with

of England

the Bank of England,

are paid into the Bank of

transferring the

stock banks to

books from the joint

credits on the

the Government.

Bank

Simultaneously

the Government pays off a great mass of short obligations which are held by

the joint stock banks and, as

a matter of

are passed through the books of

the

fact,

hunured of millions

sterling

joint stock banks. the Bank of England

and the Government, without the slightest

disturbance to the money

market.

As our Government has not made temporary borrowings similar to the English

Government, our function would

that

be to discount

for our member banks, in order

they might make payments to us for account of their customers.

see that the crux of the arrangement really lies in
Secretary of the Treasury to make the fiscal

You will

the willingness of the

agency of the

Reserve Banks an

- Mr. Jay.

April 4, 1917.

active one and to pile up large Treasury balances there which can be used

in making

discounts to members, pending its dispersion by the eoverment.

6. You may be shocod to

hear me advocate the issuing of Govern-

ment bonds Which will not be free of income tax at the source. Germany is
issuing tax exempt bonds.

In doing so Germany is slipping a noose around

her own neck financially, because the is entering into an obligation

the holders

of government bonds Which probably cannot be respected after the

=Brand to tax the
repudiation.

with

interest on bonds of that character is

nothine short of

England has avoided that mistake and the French war bonds are

liable for the surtax.

rate of interest and
country on account of

It would mean issuing bonds at a considerable higher

probably is an excess precaution

in the case of this

its wealth, but I nevertheless would do exactly that

thing had I the power as

an officer of the Government

because the principle

is sound and the principle of a tax exempt bond is not sound.
7.

One of the most important proposals to consider just now is the

character of

financing that we

the allies. My

will undertake for

idea would

he not to make a gift as has been so frequently suggested, but to lend the
money as a business transaction.

This should be

done by our sending com-

missioners to London and Paris to negotiate an arrangement Which will meet
their needs over there.

We are now so close to the conclusion of arrange-

ments with the Bank of England and the Bank of France

arranged should be affected

whatever loan is

cooperation between the Reserve Banks and

those two institutions, the proceeds paid

out by the

that

government banks abroad,

into the Reserve iianks

as required. This would enable us tem-

porarily to buy bills for account of the Bank of England and

to be checked

the Bank of France,

April 4, 1917.

To - Mr. Jay.

thereby keeping our money rates down and facilitating loan transactions.
This is a very important feature of our financial program and it makes me

sick to be out here unable

to have

abroad

a commission is sent

somepart in

and it can

discussing the matter.

be arranged, I

and Dr. Sewall would agree to my doing so.

certainly

want to go

One reason Why I am particularly

anxious to have a hand in that business is because of my relations with

the

people we have to deal with abroad for one thing, but particularly because it

will give the Reserve

banks an opportunity to go right ahead with plans for

cooperation which wore really inaugurated by me a year ago.

I am sure you

will understand just the way I feel about it.
8.

There is one matter, however, in which our Government should at

once extend assistance, certainly in France and

possibly in

is by the donation of a very large sum for war relief work.

Eagland, and that

Those people

have nAde the great sacrifice in loss of life, etc., which we have avoided.
The least we could do would be to mitigate the horrors of the war by making
a great

contribution

been afflicted

to all the various agencies for relief of those who have

by losses.

This is a very hastily dictated
magnitude that I cannot pretend to do
ing on the ground to talk it

over with

larly with the people in Washington.

withstanding

letter

more than Skim the

surface, without be-

the officers of the bank and particuThat is What I ought to do and, not-

what you and the others have said, I am still greatly tempted to

return for at least a few days' meeting.

and the subjoct is of such

6.
To

Mr. Jay.

April 4, 1917.

thanks to you for calling me on the 'phone. If important
Lnatters come up, don't hesitate to do so again, telegrabhing mc if possible
in advance, so that 1 will certainly be on hand.
Yflny

Best regards to you and the other boys.
Very sincerely yours,

Pierre Jay, Esq.,

Federal Reserve Bank,

Now York City.

BS/CC

Denver, Colorado,
April 9, 1917.

Dear Mr. Jay:

The re-print from the Trust Company's magazine which you sent is
excellent and I hope you are going to give it aide distribution.

I have a couple of memoranda prepared by Mx. Kenzel in regard to
Government bond issues,- The one dated April 5th, reporting his inquiries
among various houses; I think if inquiry along this line is to be made, we
could pick out a somewhat better list of houses as judges of the bond market.

Harris, Forbes & Co. would stand at the top and following them

should say

Lee Higgins & Co., White, Weld & Co., Kissel, Kinnicutt & Co., Montgomery,
Clothier & Tyler, Wm. A. Reed Sc Co., with the representative houses.

would not consider the opinion of Sachs or Harrell as based upon thorough
bond experience.

One of the best organized

bond distributing offices in

the City is the Guaranty Trust Company and Franklin would be an excellent

man to consult in those matters; also Kidder, Peabody

Company.

I am sending this suggestion because it does not strike me that a
iinoLuirm

report of an/or this importance is very well founded, if based upon opinions
of those given

the circular, excluding the most important bond distribut-

ing houses in the City.

I do hope that the administration handles the financial program
on broad lines, without suffering the penalties of such inexperience as
was displayed in the early days in England.
Very sincerely yours,
Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.
BS/CO

Denver, Colorado,
April 9, 1917.

Dear Mr. Jay:

Thanks for your of the 5th, with enclosures.

ested in

I am greatly inter-

at you say about the Trust Companies, but they are sly

I would not count too

dogs and

much on their coming in until the Clayton Act is

amended.

About more intimate relations between the Reserve Bank and its Important members.

I sug-

The fault in that naLtter does not lie with us.

gested repeatedly to Yanderlio, Wiggin and others that the Clearing House
committee and the of

or officers and directors, of the Reserve banks

should have some revlsr meeting together, but, naturally, such

meeting

could not very well result from action on our part alone and I thought
should originate with the Clearing House committee.

with Mr. Vanderlipwhen he was in Colorado last Fail.

i also discussed this
iy not have an ar-

rangement for regular meetings at the Federal Reserve Bank not at the
Clearing House)?

The London Clearing Bankers Committee, which consists of

sixteen men, meets at the Bank of Englene on

every week and there is no

reason why the Clearing House Committee should not meet at the Federal Reserve bank once a week or twice a month.
In regard to Mr. t(enzel's memo.

think

but would be unpopular with the member banks.

his views are probable sound
They would be afraid that this

was the first step in doing business directly with their customers and ultimately would lead to the removal of many of the restrictions as to the character of business done by the Reserve Banks, and

would be 'right. Personally, 1

I do not knew but

what they

do not see how we can have a well organized

Denver, Colorado,

April 9, 1917.
Dear Mr. Jay:

Thanks for your of the 5th, with enclosures. 1 am greatly interested in What you say about the Trust Companies, but they are sly dogs and

would not count too much on their coming in until the Clayton Act is
amended.

About more intimate relations between the aeserve Bank and its important members.

The fault in that /setter does not lie with us. I sug-

gested repeatedly to Vanderlin, Wiggin and others that the Clearing' House

committee and the officers, or officers and directors, of the Reserve banks
should have some regular meeting together, but, naturally, such a meeting
could not very well resnit from action on our part alone and I thought
should originate with the Clearing House committee. I also discussed this

with lin Vanderlipwhen he was in Colorado last Fall. Why not have an ar-

rangement for regular meetings at the Federal deserve Bank not at the
Clearing House)? The London Clearing Bankers Committee, which consists of

sixteen men, meets at the Bank of England onesevery week and there is no
reason why the Clearing House Committee should not meet at the Federal Reserve bank once a week or twice a month.

In regard to ijr. .enze1's memo. i think his views are probable sound
but would be unpopular with the member banks.

They would be afraid that this

was the first step in doing business directly with their customers and ultimately would lead tc the removal of many of the restrictions as to the character of business done by the Reserve Banks, and I do not know but what they

would be light. Personally, 1 do not see how we can have a well organized

April 9, 1917.

To - Mr. Jay.

discount market unless the houses that are dealing in bills have better
facilities for carrying them than at present.

Yet, on the

other hand,

if we pattern our market after London's, we must recognize that the bill
houses in London carry their bills with the joint stock banks and not with
the Bank of England.

I hope that you fellows are not working too hard and find time
for a little recreation now and then.
Best regards to you all.
Very sincerely yours,

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.

Bsiec

\F.

Denver, Colorado,

April 10, 1917.

Dear Mx. Jay:

Thank you very much for yours of the 6th, with

enclosures.

About the proposed amendment to the banking law, I should suppose
that it could be attacked on the ground that it would violate our Federal
legal tender laws.

Certainly it

Judge Curtis can tell you about that.

would be a mighty short

sighted piece of business for the New York Legis-

lature to authorize banks of deposit to shift their responsibility for
legal tender payment of their depositors checks upon the correspondent in

National

a distant city and if the

banks were smart in taking advantage

of it, they should be able to give the State banks a pretty uncomfortable
time in holding their business.
sympathy that

I ever had

all remnants of

Personally, I have lost

for these cheese

paring State Bankers, and think

the time has come to get after them with a broad-axe.

Your article in the

Trust Company's magazine was a corker on that very point.
one to write up

the legal

Why not get some

features of the proposed statute and publish it

in one of the banking journals.

Personally, I

think we have got the situa-

tion well in hand all over the country and should take advantage of the war
crises to keep the screws on tight.

have read the advertising material with much interest
only two comments to make.

and have

I see no evidence of arrangements having been

made to protect member banks against a duplication of advertising material
in any given town.

We experienced this same difficulty

the Trust Com-

pany in introducing travlers' checks and had to guard against such dupli-

April 109 1917.

To - Mr. Jay.

cation which caused hard feelings and misunderstanding.
is the one mentioned in your circular Reserve bank more than the member bank.

that the text

The other point

advertises the Federal

That criticism strikes me as being

a just one and would become apparent if member banks generally used this

material and all of the newspapers of the country were

running identical stuff

at the same time.

If any new material is prepared, I would suggest reducing the text
in those cases where an illustration appears.

Experience I think has shown

that very little reading matter is desirable with that type of boiler plate.

am glad you got this thing off the calendar, for I know it has
taken a lot of time and thought.
Very sincerely yours,

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.

Denver, Colorado,
April 10, 1917.

Dear Mr. Jay:

1 have read Mr. Meridith's letter in relation to possible correspondence with the Bank of Montreal and still see little, if any, ad-

PAW
Of course if war commences

vantage to be gained by such a connection.

to develop the need for such relationship, we should probably establish it,

but his letter indicates that he, himself, believes the advantages to be
AO

So far as exchange

largely sentimental, rather than nractical.

there really is little difference between tee

exchange situation

York and Canadian citizens and te exchange situation
other large cities in the United States.

between

is concerned,
between New

New York and

When war first broke out, New York

exchange was at a considerable discount in Canada for a time because Canadian
banks had big balances in New York and a lot of call loans there Which they

were unable to recall on account of our haphazard suspension of gold shipments.

Such a situation is net likely

arise again, but

if it should we

might consider snecial measures to deal with it.
If the Canadian Government should propose
this country, then

we might find it desirable

any large

financing in

consider arrangements for

an account, Which just now I really cannot see the need for.
for sending me his letter.

Very sincerely yours,
Pierre Jay, Len.,
Federal Reserve Bank,
New York City.

BS/CC

Thank you

Form 1217
IF SERVICE DESIRED
Day Message

'V Letter

WESTERN UNION

Letter

_ should mark an X inm-

ate class of service desired;
HERWISE THE TELEGRAM
ILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL

Check

Time Filed

NEWCOMB CARLTON. PRESIDENT

_Alor
Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

UNION

VVESTE

Receiver's No

1-:enver, Colorado*

Anril 16, 1917.

erre Jay,

eral r.osorve
Yori: City.

Answer to your tolograms twelfth and fifteenth delayed by absence stop.
Systems relation 4o financing is most important and cannot be avoided stop.
Have no doubt Chief will shortly realize this and believe we should prepare
for large operation stop. Believe ao Should entertain Cunliffe informally so
azroeable i would
as to avoid embarrassment stop. If on arrival yOu find
if you
important
bankers.
liice to give him dinnor aa, at Sherrys to moot
largo
formal
dinner
feel bruvz shonld entertain It would moceseitato giving
Suggest
ascertaining
:..oxgans
plans
stop.
Whie seems undesirable stop.
Certainly thin.: 1 should return for few days am; way to moot himand would
plan to cover date of entertainment stop. Hope our organization is being
expanded to meet now developments.

Chg. Benj. Strong,
.4100 Uontview.

Benjamin Strong.

1711
ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOL

To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the origin:
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated .on its face, THIS IS AN UNREPEATED TELE
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPE.
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for sending the same, unless specially valued; nor in any case for delays' arising from unavoidable interruption in the working of its lit
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In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the n
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The Company is hereby made the vat of the sender, without liability, to forward this telegram over the lines of any other C
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Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within oni
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his
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No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; a
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
G. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing wit
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Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of s

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N EWCOM B Ci

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In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enumerated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters

is, in all respects, subordinate to the priority of transmission and
delivery of regular telegrams.

Day Letters shall be written in plain English.

is not permissible.

Code language

c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

111111
Letter shall be delivered on the day of
events; but that the Company's obligat
to the condition that there shall remain

mission and delivery of such Day Letter
regular office hours, subject to the priori
ular telegrams under the conditions name

No employee of the Company is authorized

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery o
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follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10
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SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code languag
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Denver, Colorado,

April 16, 1917.

Dear Mr. Jay:

Yours of the 10th, enclosing copy of letter received from Secretary
McAdoo, just reaches me.

With a little study, I have no doubt this can

be worked out in such a way that we can now accumulate a large amount of

bars. No time should be lost in doing so.
Very sincerely yours,

Pierre Jay, Esq.,

Federal Reserve Bank,
New York City.

BS/CC

April 17, 1917.

The committee in Charge of sales of United 3tatee

thirty-year Conversion 3% bonds for

Federal reserve banks

to-day considered replies received to its recent invitations
for proposals to purchase bonds of this issue.
The committee announced that no satisfactory Proposals were reCeived and consequently no award was made.
The chairman of the committee indicated that this

result was more or lass anticipated, because of the changed
conditions which have arisen since the proposals were invited
following the introduction

authorizes the issue of

in Congress of the bill which

n1,000,000,000. of Government securi-

ties bearing a higher rate of interest than the bonds offered by the committee.

Denver, Colorado,
April 18, 1917.

Dear Mx. Jay:

I have no doubt that Cotton's view of the unconstitutionality
of the proposed amendment to the State banking law is sound.

Personally,

I think the bill is unconstitutional, probably violating the Federal
legal tender laws.
As to the advertising program,-. ra:i thought would be to cal/ the

attention of the beakers to whom the forms were sent to the fact that they
were being sent to all banks and that they should make arrangements themselves in each town to avoid duplications.

The other eleven Reserve banks

should also be advised.

You have made a good

He is a bright fellow and

gelection in ar.

Jidney and I hope you get him.

will be a great help to you.
Very sincerely yours,

Pierre Jay, Esq.,
Federal Reserve
New York City.

BS/CC

Bank,

Denver, Colorado,
April 18, 1917.

Dear Mr. Jay:

Thank you for yours of the 14th. I was so impressed with your

article in the Trust Company's magazine that I thought it might pay to

send a reprint to our member banks, although I realize that it might be

construed as an attack and stir up animosities. Possibly your more
conservative course of sending them Where asked for is safer.

On the

other hand, I think the Clearing Houses of the country, of which there

are over 250, Should be furnished with say ten copies apiece; that might
help some..

1 thoroughly

understand about the hurry call

for views as to the

bond issue and you must not think my suggestions are for

other purposes

than to help. Of course the bond game was one of our specialties at the
Trust Company and I know the houses so intimately that I wanted to give

you the benefit of the best views i had on

the subject.

Faithfully yours,

Pierre Jay,

1-0q.,

Federal Reserve Bank,
New York City.

35/CC

Denver, Colorado,

April 19, 1917.
Dear Mr. Jay:
Many thanks for your telegram.

Is progressing in

3ork

expanding our organization for I am sure that preparation

is only wise at this time.

I will be glad to hear details of the

ence with the Clearing House committee.

bring about a

I am glad to be advised that

conferto

Possibly you have been able

better understanding on the subject of our settling for

members.

I am relying on you to-keep me advised of Lord Cunliffe's arrival
and plans, also of any arrangements made for entertaining him.
Best regards to you all.

Faithfully -yours,

Pierre Jay, Esq.,

Federal Reserve Bank,
New York City, N. Y.

ER VICE

copy

age

Night Letter
If no class of service is designated the telegram will be transmitted as a fast day message.

OF
WESTERM MOH TIMEGMAlig

Denver, Colorado,

April 22, 1917.

Pierre Jay,

Federal Boservo Banlz,
New York City.

Thanks for your telegrams. You will not fail to advise me
of what you loarA of Cunliffes plans and when 1 should return to moot
Benjamin Strong.

Chg. Benj. Strong,
4100 Montview Div.

Denver, Colorado,
April 22, 1917.

Dear Mr. Jay:
Thank you for your confidential letter of the 16th, which gives
a fine account of recent developments and is just what I wanted.
The arrangement for stated meetings with the Clearin,: House Com-

mittee is fine: I hope those meetings will be held at our bank and not
at the Clearing House.

Developments begin to indicate a chance of getting the state
banks into the system.

I hope the Board 5111 foster this by recommending

suitable amendments to the Act.

The Clayton Act is the real obstacle in

New York and certainly should be amended.

submitting

recommendations to LicAdoo following your talk with

him, let me suggest that these be put in the form of brief carefully arranged, specific suggestions b;

so concisely

and paragraphs

stated that it will take a very short time for him to grasp them, and in
that way I believe it would be of real assistance to him.

We must, if

)ossible, persuade him to permit the Reserve banks to become the real
i

active and effective fiscal agents for the Government.

If he does that,

our place in the country's banking system will be established for all time.
If he does not, we will roc, along for a good while, leaving people

doubt as to whether we are fish, flesh or good rod herring.

Aleaander's proposal of having the Advisory Council active to
represent the government in financial matters strikes me as ridiculous.

That organization has not demonstrated that it is effective for any

some

To - th. Jay.
purpose.

April 22, 1917.

Undoubtedly the plan was suggested to Alexander, and I doubt

if it originated

in his own

mind at ail.

The most effective instrneent

to represent the government would be the Reserve banks.

They have

offices and a permanent

organization of the character needed.

visory Council has none

of these;

they are just what the

an advisory body and not an administrative body.

officers,

The Ad-

name implies -

I hope the suggestion

is sat upon definitely and permanently.

Undoubtedly the suegestion about deeosits with non-member banks
was made upon the hypothesis that Congress would pass an act permitting
such deposits as they would not of course be Permitted under existing law.
I do not agree with Warburg's view of baying all the funds borrowed by the Government transferred to the Reserve banks.

The matter has

got to be handled according to the character of the transaction in each
instance.

The Englise method of handling these loans would not be ex-

actly applicable here because they have so few banes to deal with and vie
have so many.

If the Secretary of the Treasury has sufficient discretion

to meet siteations as

they arise and then will trust

the Reserve

banks to

handle each situation'in the respective districts, all Shock and disturbance can be avoided I believe, but if some arbitrary rule or some
binding statute leads to control, then we may bump into trouble.
not object to seeing the

Reserve banks carry

I would

the deposits with the member

banks, so that the principle of direct government deposits would be avoided
and this would no doubt meet Warburg's objections.

I do not think that it

is safe for the government to conduct an immense transaction of this char-

acter and

rely for the relief of the banks upon their discecounting to the

April 22, 1917.

To - Mr. Jay.

extent that might become necessary.

Besides that, as you say, trans-

actions of that kind could only be conducted with ease if we had a discount

market and if all the banks had portfolios of bills Which could be lien.dated.

About the pending bond issue, my view is that one billions should
On that basis they should sell at a

be issued at 3-1/2'4 end no more.

premium and facilitate later operations.

the Hayes Bill, it would

be far bettor for the State
,
bank membership amendment to be passed first and the proposed tax held in
In regard to

abovance say for sixty

days, or

for some period of time until the state

banks had shown their disposition.

Meantime, I ace enough evidence of

the possibility of many new members to justify recommending

that you

lay

out a program of an organization for an examining force, so as to meet
that situation when it develops.
-'lease bear in mind that loans to our allies will

extensive financial transactions In the way of exchange.

involve

very

We will need

prenaration to do our part if, as I hope, the Government places this
matter in the hands of the Reserve banks.

that I am most keen to sae

It is on that account somewhat

Lord Cunliffe and get his views as to how

matters should be handled, also to see McAdoo and ascertain his plans, or
individually influence them, so we may be in position to do our part.

With the inevitable increase in discount operations, I hope both
the Credit and Discount departments are all tuned up and ready to handle
It.

Thank you for the memorandum of conversations with Sir Hardman

To - Mr. Jay.

Lever.

April 22, 1917.

These matters should be drawn to the attention of McAdoo or

Governor Harding, as they exhibit so well the dependence in financial
the British Government on the Bank of England.

I am awaiting anxiously telegraph or telephone message from you
as to my return to meet Lord Cunliffe, which I can cio at any time, return-

ing here if necessary for the balance of my lease, but I am planning to
get back home the first of June.

Best regards and many thanks for your letter.
Faithfully yours,

Piero Jay, -sq.,
Federal Reserve Bank,
liew York City.

BS/CC

Denver, Colorado,

April 22, 1917.

Dear Ur. Jay:

Many thanks for your wires of the 21st. 1 hope you will not
fail to make suggestions to Governor Harding along the line of mv recent

letters if possible.
Also please wire me promptly of any occasion for my return, even

though for but a few days, in the expectation that I will return here at
once until June 1st. I am telegraphing you to this effect today, havind
in mind, of course, the possibility of meetings with Lord Cunliffe.
/;,, Very sincerely yours,

Pierre Jay,

sq.,

Federal Reserve Bank,
New York City.

Denver, Colorado,
April 23, 1917.'

Dear Mr. Jay:

I have just read copy of your letter of the 19th, addressed to
Governor Harding, about the 4200,000,000 loan, and it is certainly just
the kind of a letter which shou10. have been sent and I am glad you

wrote it.

Very sincerely yours,

Pierre Jay, rag.,
Federal Reserve Bank,

New York City.

Denver, Colorado,

Aril 24, 1917.

PERSONAL.

Aft
Pear Mr. Jay:

This is to acknowledge wires from you and Mr/ Curtis in regard
to the telephone message which you tried to get thrent;h to me yesterday.
Unfortunately, i had to go out early to keep appointments with the

dentists and doctors, who I am supporting out here just now and inci-

dentally and very confidentially, to meet a comittee that was commissioned to ascertain whether I intended to make Denver my permanent home and,
if so, whether I would accent the Presidency of one of the banks out here.
On this account I did not get your message

Of course do not repeat this.
until late

the afternoon and Mr. Curtis' message, dated at 1:23 P.M.

cane at about the sale time, that is around six o'clock,
me an inexcusable delay.

which seemed to

Meantime, I heard you were trying to get me

by telephone and sent a couple of hours in a fruitless effort to get a
connection through to New York.
night, which was

fine,

Your wire and my talk with you last

explained the situation and by the time this

letter reaches you, you will undoubtedly have gotten in touch with the
whole Washington situation.

I hate like the dickens to miss all that is

going on and am doing so really out of deference to the repeated urging
from the office that I do not cone
sary.

just now and that it is unneces-

Many thanks for your wires and for your telenhone message and for

keeoing me so well posted.

back

April 24, 1917.

To - Mr. Jay.

It has been growing in my mind lately that one way in which the
office work can be relieved for all of us is to get a small suite of
private offices away upstairs in the building where we can get away
from callers and office interruptions to do quiet work.

It will also

give those of us that feel the need of it a little fresher air and less
dust.

Won't you aa: Mr. Higgins to look into this and talk it over

with the other officers and see how it sounds to them?

I had such an

arrangement at the Bankers Trust and found it most convenient at times,
also a great time saver.
What is the sentiment in New York in regard to Goldman. Sachs 4,

Co. and their German affiliations and sympathies?

We hold a pretty big

jag of their paper and, personally, I would not hesitate to Shut down
on it entirely if they are not both in profession and in action good
American citizens.
In connection with the large Government loans now coming along,
we may have some little movement in rates.

A change is likely to be

immediate if the plan is carried out of having temporary borrowings
withdrawn and placed with us and other Reserve banks to the credit of
the Bank of England.

By all means I would keep our rate for bills steady throughout

this period, even if we are obliged to accumulate ten, fifteen or twenty.
millions in doing so.

Our reserve percentage is now about 84 plus and

if the gold amendment is passed, it will bring it up pretty close to 90.
So I think we can demonstrate our strength and ease the market without
materially weakening our reserve position.

April 24, 1917.

To - Mr. Jay.

About the plan of having funds held at the credit of the Bank
of England by the other eleven Reserve banks,- I really think it is a
mistake unless an arrangement is made, which is quite feasible, to have
e

all the drafts drawn on the Federal Reserve Bank of New York and prorate withdrawals arranged through the exchange accounts dhich we now
carry with the other Reserve banks and as rapidly as the Bank of England
draws an the Federal Reserve Bank in New York, we, in turn, could apportion the withdrawals from the other eleven and make a weekly settlement
through the gold settlement fund.

parture from normal

It is really an extraordinary de-

banking procedure to handle such an acdount other-

wise, although I agree with you entirely that the funds raised in the
other Reserve districts should be left on deposit there.

I hope this

matter can be worked out so that there is really only one exchange account, which would be between the Bank of England and ourselves.

1 am not writing Mr. Treman today so hope you will show him this
letter.

Now about my return, of course I must get

back

within the next

few weeks and am oarticularly anxious to go back for a few days so as

not to miss Lord Cunliffe; I will rely upon you to

make the arrangements.

Chicago will do if the Commission goes there, provided of course a definite engagement is made for me to meet him and have sufficient time for
a conference.
Faithfully yours,
Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.
BS/CC

UNION

FCC;

G 0 RGE

r. ATKIN.

NEWCOMB CARLTON.

ViCE-PRESI DENT

TIME FILED

RECEIVER'S No.
1

END the following Night Letter, subject to the terms
on back hereof, which are hereby agreed to

TTER

PRESIDENT
I

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

Denver, UoIorauo,

April 25, 1917,

Pierre Jay,

Care Paul U arburg,
Federal Reserve Board,
Washington, D. C.

Thanks for wire.

Can come on any time .you say.
Benjamin Strong.

Chg. Benj. Strong,
4100 Montview.

Form 2289

ALL NIGHT LETTERS TAKEN BY THIS COMPANY ARE SUBJECT TO -THE FOLLOWING'

..1MS:

The Western Union Telegraph Company will receive not later than midnight NIGHT LETTERS, to he transmitted only for delivery on'the morning
the next ensuing business day, at rates still lower than its standard night telegram rates, as follows: The standard day rates for ten words shall be charged for
transmission of fifty words or less, and one-fifth of such standard day rate for ten words shall be charged for each additional ten words or less.
To guard against mistakes or delays, the sender of a night letter should order it REPEATED, that. is, telegraphed back to the originating office for comparison.
For this, one-half the unrepeated night letter rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED NIGHT
LETTER
ND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the night letter and this Company'as follows:
The Company shall not be liable for mistakes or-delays in the transmission or delivery, or for non-delivery, of any UNREPEATED night letter, beyond
amount received for sending the same: nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED night letter, beyond
times the sum received for sendrng the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines:
or erro,.,, in obscure nfght letters.
In any event the Company shall not be liable for damages for any mistakes or delay in the transmission or delivery, or for thenori-delivery, of this night
, whether caused by the negligence of its 'servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this night letter is hereby valued,
ass a greater value is stated in writing hereon at the time the night letter is offered to the Company for transmission, and an additional sum paid or agreed to be
ased on such value equal to one-tenth of one per cent. thereof.
.
The Company is hereby made the agent of the sender, without liability, to forward this night letter over the lines of any other Company when necessary
its destination. ight letters will be delivered free within one-half mile of the Company's office in towns of 5.000 population or less, and within one mile of such
or towns. ,Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as lilac
pense, endeavor to contract for him for such delivery at a reasonable price.
responsibility attaches to this Company concerning.night letters until the same are accepted at one of its transmitting offices, and if a night letter
ifice by one f the Company's messermers, he acts for that purpose as the agent of the sender.
CI,Inpa.ny will not be
for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the nig
. with
Corapany for t ranami,sion.
co,sideration of the reduee.1 rate for this special " NIGHT LETTER " service, the following special terms are hereby agreed to:
NIGHT LETTERS am, at
r,f the Thlegraph Company be mailed at destinat;on to the addressees, and the Company shall be deemed
have discharged its o',11gation in :mei. case, NV: t r.,spoet .1,.liver.17 by mailing such NIGHT LETTERS at destination, postage prepaid.
NIGHT LETTERS shall 1,, writ t.,r, in plain Eng1ish. Code language is not permissible.
C

No employ"; of thc Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COM PAN
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the
,night and delivered not earlier than the morning of the next ensuing
business day.
DA
ETTERS
ates lower than
andard telegram

Telephonic delivery permissible. Day Letters received subj
express understanding thdt the Company only undert
the same on the day of their date subject to conditions
time remains for such transmission and delivery durin
hours, subject to priority of the transmission of rog

NIGHT LETTERS,
Acepted up to midnight for delivery on the morn
ensuing business day, at rates still lower than stand
gram rates, as follows: The standard day rate for 10
charged for the transmission of 50 words or less, and. o

gular
ge not pe

standard day rate for 10 words shall be charg.
10 words or less. Must be written in plain En!
not permissible Mail delivery, postage prepal

111'11111111111111111111111

Form 1206

WESTE

SS OF SERVICE DESIRED
st Day Messago

UNION

47P/al

Letter

Receiver's No.

YiESTERN UNION.

Night Message

TEL

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colo.,
PArOvIe12,151co917.

Pierre Jay,

Federal Reserve Bank,
New York City.
Approve all definite suggestions for dinner including Peabody and
Lever stop.

You Treman and Curtis of course stop.

order named.

Following additions in

Hepburn, Jim Brawn, Lewis Clarke, Townsend and Aiken stop.

Particularly anxious Morgan attend.
or Lamont stop.

however impossible substitute Davison

Later date will suit me as well if more convenient stop.

About bond plan suggest you submit all suggestions in

writing to Secretary in

brief tabulated form sending copies to Board to avoid criticism stop. Feeling

tin ton and keen to see you all.
Benjamin Strong.

Chg. Benj. Strong,
4100 Montview.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERM:To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison
e-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUCH,
consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
e.ceived for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
or sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by One of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty clays after the telegram is
filed with the Company for transmission.

Special ternis governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UN ION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE

4111111

FAST DAY MESSAGES
A full-rate expedited service.
NIGHT M ESSAGES

Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such stanaard
day rate for 10 words shall be charged for each additional 10 words or
less.

merated above are hereby agreed to:

A. Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters

is,

in all respects, subordinate to the priority of transmission and
Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

delivery of regular telegrams.
n. Day Letters shall be written in plain English.
is not permissible.

c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the'addressee, and such delivery shall be a
complete discharge of the obligation of the Telegraph Company to

deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day
D.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Form 1206
CLASS OF SERVICE DESIRED
Day Message
_oiler

WESTE0/SENA UNION
TEL
AM
ViESTERN UNION

Night Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS. VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colorado,

AprilPV, 1917.

Pierre Jay,

Federal Reserve Bank,
Now York City.

Owing to mistake in transmitting your telegram regarding bond

issue I suggested your writing Secretary. After reading corrected
message think possibly inadvisable.
Benjamin Strong.

Chg. Benj. Strong,
4100 Montview.

Receiver's No.

Check

Time Red

trALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERF"
IP
,

To guard against mistakes or delitys, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparisoc
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID 1'6-_, ,-.,
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
1. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amt.,
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at hisexpense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

II2.

CLASSES OF SERVICE

FAST DAY MESSAGES
A full-rate expedited service.
NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
,etter" service, the following special terms in addition to those enu-

'crated above are hereby agreed to:
t. Day Letters may be forwarded by the Telegraph Company as a
erred service and the transmission and delivery of such Day Letters
in all respects, subordinate to the priority of transmission and
uelivery of regular telegrams.
B. Day Letters shall be written in plain English. Code language
is not permissible.
c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a

nomplete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its dqte during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to midnight for delivery on the morning of the
ensuing business day, at rates still lower than standard night me,
rates, as follows: The standard day rate for 10 words shall be chav^,
for the transmission of 50 words or less, and one-fifth of such ,::t-audard
day rate for 10 words shall be charged for each additional 10 words or

less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

UNION

WESTE,47
WESTERN UNION

NIGH

RECEIVER'S No.

TTER

NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, V10E-PRESIDENT

TIME FILED

SEND the following Night Letter, subject to the terms
on back hereof, which are hereby agreed to

BELVIDERE BROOKS. VICE-PRESIDENT

CHECK

Denver, Colorado,

April 27, 1917.
.

P jaW,
Bascrvo Bank,

-'ow York aty.

T1uan1s for telegram about Tuesday evening. Am just leaving
-

ver, fit.

ly best to you all.
Benjamin Strong.

Chg. Benj. Strong,
4100 llontviev.

ALL NIGHT LETTERS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
The Western Union Telegraph Company will receive not later than midnight NIGHT LETTERS, to be transmitted only for delivery on the mo
the next ensuing business day, at rates still lower than its standard night telegram rates, as follows: The standard day rates for ten words shall be charged
transmission of fifty words or less, and one-fifth of such standard day rate for ten words shall be charged for each additional ten words or less.
To guard against mistakes or delays, the sender of a night letter should order it REPEATED, that is, telegraphed back to the originating office for
For this, one-l1 the unrepeated night letter rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPE,ATED NIG Tcorn
L
AND PAID Full. AS SUCH, in consideration whereof it is agreed between the sender of the night letter and this Company as follows:
The Company shall not be liable for mistakes-or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED nig
the amount received for sending the same: nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED ni
fifty times the sum received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the wo
nor for erro, in obscure night letters.
In any event the Company shall not be liable for damages for any mistakes or delay in the transmission or delivery,- or f
letter. whether caused by the negligence of its servants or otherwiie, beyond the suns of FIFTY DOLLARS, at which amount t
unles, a raster value is stated in writing hereon at the time the night letter is offered to the Company for transmission, and an addi
paid b
ue equal to one-tenth of one per cent. thereof,
y is hereby made the agent of the sender, without liability, to forward this night letter over the lines of any o
an

II be delivered free within one-half mile of the Company's office in towns of 5.000 population or less, and wit
eyond the, limits tho Company des not undertake to make delivery, but will, without liability, at the sea
or to contract for him for such ddivsry at a reasonable priee.
y at taehes to thi:= ecinfrIny e,ncerning night letters until the same are accepted at one of its transmitting dtil
y one cf I he Conninolyis
hr arts fir that purpose as thy aeent ef the sender.
mpany
reit iii hal,
rek, inhere the claim is not presente
h the Company for transnii,i21.
cf
for this iperisl "NIGHT LETTER" s.rvice, the following special
IGHT LETTERS
Ili ..!ii
Ciiiiipmy lie :11.i!,1
destination to the add,.
Tged
,urii
re
1.NIGHT LETTERS at destination
en in 'data Enth6h.
NIGHT LETTERS
language is Out permissiole.
t

No cmplu:yee of Mc Compabh is guiltorted Ic wry its furegcnizg.

THE WESTERN U N
NEWCOMB

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the
night and delivered not earlier than the morning of the next ensuing
business day.

DAY L
.A

ice at rates lower than the standard telegram
d one-half times the standard night letter
of 50 words or less and one-fifth of the
nal 10 words or less. Subordinate
ion and delivery of regular telegrams.
am English. Code language not permissible.

Telephonic delivery permissible. Day Letteis received subject to
express understanding that the Company only undertakes delivery of
the same on the day of their date subject to conditions that sufficient
time remains for such transmission and delivery during regular office
hours, subject to priority of the transmission of regular telegrams.

'NIGHT LETTERS
Acrepted up to midnight for delivery on the morning of the next.
ensuing business day, at rates still lower than standard night telegram rates,.as follows: The standard day rate for 10 words shall be
charged for the transmission of 50 words or less, and one-fifth of

Ho,.1;

standard day rate for 10 words shall be ehargefl for each additi,,,
10 words or less.

not permissible.

Must be written in plain English. Code 1,1)T,
Mail delivery,,posta,ge prepaid, p,

Denver, Colorado,
IA-ay 16, 1917.

Dear 111. Jays

This letter is simply to suronarize some of the various suggestions

ye discussed and in particelar to emphasize the desirability of triakirk; all of
our preoarations narticularly as to organization well in advance of the need

for doing so arising. Throe copies are "'closed so that you can hand one to
Ur. ?roman and one to 2r. Curtis, and I urge that those matters requiring imr.
mediate attention be divided up and it under way at once.
The bars and coin now in our vault should be put through the Aseay

Office and the resulting staniard bare packed away in compartments as soon as

possible.
We should'ascortain from the Sub-Treasury if aMple supply of gold

certificates will be on band for our use as required, if we find it necessary
to surrender the gold bars, and if thekanpply is not there, they should ar-

range to get it.
A memorandum is in Secretary ncadoo's hands, suLzesting dincon-

tinning issues of small denomination gold certificates, and this should be
followed up. If he makes the order, the Federal Reserve Board should be asaed

to notify each Reserve bank that it will be expected to Rawly all demands for

currency in its district by issues of Federal Reserve notes.
111114,;

sualist that temporary shelving to nretty well fill the interior
of thevault and made of fire-,oroof wood, be built at owe, ready to sot up

Lj 16, 1917.

To- Mr. Jay.

as soon as the gold Is out of the way. These can be used for collateral for
government deposits and collateral for discounts, if necessary.
AWL' TRANSPIXS:

For reasons later stated i think we will have heavy demands on us in
this matter and suggest providing larger Tuarters and more men for the work, who

Should be trained in advance in order to avoid delays.
11C112

Possibly two additional desks can be put In here, for use by men

Who will be assigned to assist the present Junior officers.

BOARD Ram,

suggest that this be moved upaatairs und to officers' desks be
provided for the present room for use in case of need. Meetings could be held
in your room or mine, as one or the other of us will always be in attendance
71t Board or il;xecutive meetings.
_AMa'NPAR3d41121:

There Is bound to be more activity in this department and I would
a.rrange for its immediate enlargement by adding:mole men.
FliDeRALBALRATE,11,-)T45:

If emy plan con be started for encouraging larger lesues of notes,

would inaugurate it at owe. Possibly another circular to member banks will

&Deist as, of course, it results in an automatic increase in our gold holdings.
DI:SCOUR? DWARTLIARX:

Preparation will have to be made for a considerable enlargement and

possibly for transferring that work during the period of greatest activity to
the Clearing Reuse. Tentative arrangements for this Should be made now.

The

May 16, 1917.

To- Mr. Jay.

vault roam there should be examined, a staff of men organized and I believe
it may be desirable to ask for a special cowedttee, sae of throe men - one
well posted on commercial paper,

another on securities and a third on the con-

dition of member hanks, 'otiose function it would be to pass not only on temeorary

government deeosits, but on discounts which we may be required to make.
UNDERSTUDIIS:

I have emphasized in talking with the Junior officers the necessity
that Sailer, Hendrices, eenzel, Higgins, Chapin, Gilbert and Coe all break in
non right away to relieve them in their 'work; this doubtless applies to others.

If that is done, Mr. Gilbert could help Mr. eenzel, Mr. Coe could help Mr.

Hendricks and other good men ought to be assigned to assist the other three,

but of course their places

must be filled at once.

CURTIS:

Mr. Curtis will

I hope the committee work can be so arranged that

not be obliged to be out of the bank most of the time; his assistant, or possibly more than one assistant, should be drilled to relieve him.

INTERIOR COMMUNICATIONS:'
Our 'phone service should be enlarged, should be

spread to

cover the

various committee roams and more pages should be employed and broken in at once.
EXCHANGL CHARGES:

With the Hardeice amendment passed, I do not see how the government
can escape paying the exchange on checks received for the Liberty loan.

This

whole subject should be put in Mr. Hendrick's hands and meantime i should think

the Beard could

be asked to introduce an amendment, if the President signs the pres-

ent bill, either entirely repealing the Hardwick proposal or eliminating its
application to these particular checks.

Hendricks deould get up a circular to

4.
To

111.. Jay.

Lay 16, 1917.

go to the member banks, Allah will set out exactly Jhat we propose to do
about all charges of exchange because, of course, we cannot pay them.

CLaRING mom nos:

have MD report frig itcaarrah of the result 4 their meeting
to consider plans to keep the money maIrket easj and steady.

This should he

followed up, of course, and assurahce made that the cowill%tee's worii. and ours

will be in cooperation. The Clearinghouse Committee, or Whoever is in charge,
should 1 think report to Mr. Kansa.
Also it seems to me the Clearing aoula should act at once in re-

gard to the use of Federal Reserve notes for settling balances, as soon as
the present bill amending the Federal Reserve Act is passed.

This could

Include the plan to have member banks settle their balances by debit and

credit an our books.
DAY T DAY RAU:

The rate of g4 authorized by our committee had not been submitted

to the Reserve Board When I left andi would be glad to learn that action was
taken.

DISCJUNTS4

Per reason stated below, I anticipate large applications for dis-

counts tram the lam nember banks within the next few weeks. It might be well

to ask them in advance to facilitate our work by ,having the .paper to be sent
to us done up in a certain way, say round amounts, with the discount figured
according to the basis which we have adopted and have it ready in advance.

To *Ia. Jay.

May 16, 1917.

42,DV1111111-ZT DW.345;P:

The Liberty Loan prospectus, of Ahich i have a oopy, does not seem

elear as to just what the Treasury proposes to do about the re-Leposit of proceeds. I have suggested that the Secretary bz, a ruling authorize inch deposits Upon ale security of any Obligations of the United States Government, or its
possessions.

The Obligations of all states, counties and municipalities within the United
States.
Zligible cammercial paper, eli611,10 bankers 0004000110.116
Any bond Which the Savings banks of Lassechnsetts or Bow Yozik,state are
allowed by law to purchase.

Any obligatioes of the allied belligerent governments whieb have been pieced
in our usricets in this country, payable in dollars.
This gives a definite Rot and eliminates looking up divident records,
etc. If the plan is adopted., a printed list should be prepared, whiebluculd give
all bonds ia detail Which are acceptable under this plan, and these lists should

be distributed to sal the lieeerve amigo.
SP4I4J, DiSCJATIp

lf the federal-Beeerve Beard le willing to rpla that nkplas given by
meMber banim, or by their elastomers in order to finsakia the placing of this loan,

are eligible for diecount with us. this night Liak4 the conversion of these special
deposits into discounts a simple mutter.

12.13 COUULW:
The responsibility of organizing-the machinery for the loan trans-

action is a van serious and important one.

ought to mae sure that the

)7421ttee appreciates the magnitude of the job and gets adoquato

The

:Irk of handling sabsoriptions mast be greatly sub-divided and I surxest their
and
handling this b7 geogrephleal divisieneAY banks and oianers by who, sub-

scriptions are received, or by alphabetical arranges.** That Co::raitteo 17111

Lay 16, 1917.

Mr. Jay.

need to study the question of shipping facilities very carefully when the
handling of interim certificates comes along.

RATE FOR LOANS TO
There seeme a good deal of urgency in Bew

York,and I found the saes

in Chicago, to have a special rate for rediscount of notes growing out of Liberty
loan sales.

I do not think that rate should be fixed until the amondmentsto the

Reserve Act have passed and than only
member banks and state banks as

case we have en understanding with the

to the rates which they will charge their cus-

tomers: possibly 3-1/Z% would be Justified after we had ascertained the possible
volume, but I would hesitate to recoanamd that until the amendments have passed
and we get a line on the possible demands.
ALLomauT OF BC241j:

There Is strong oressure in Chicago to have the Secretary of the
Treasury a:voxtion say one-half of the loaa,
Reserve banks for immediate firm allotment.

one billion dollers) amont,

the

They say it will hold a good many

subscribers who may get may, alai it will also clover cases of large subscribers

who are really actin for employes whose names might not be disclosed to us in
detail.

Those subscribers should not be cut dawn if the loan is over-subscribed.

I believe the suggestioa is a good one

and will facilitate placing the loan.

SAYIL;GS BAWLS:

As yoe have learned probably from

ter.schencconcern is developing

less the placing of this loan will disturb their affairs.

They want some kind

of membership which rill protect thsm, particularly in meeting demands for currency.

Under proem.' safeguards, 1 believe such

an arrangement should be made,

To - Mr. dal,

laza 16, 1917.

If, after discussion with them, it is found that their securities are of a
character

SATh

that can be made available to

secure borrowinasa

H15,

Mose State Banks that receive large subscriptions to the loan are
going to be embarreesed in handling the matter, unless tAhey maae preliminary

arrangements with member banks for borrowing money.

a discrete circular, exa

plaining the limitations of the law, might avoid a gooa deal of confusion and
of course it should se to both member and mon
lit8U3F4l5 Pr

r bans.

40D5:

Paeilitias must be provided 12 advanee for Splitting up interim
certificates and the aermanant bends when delivered and for affecting trans-

fers of registered bonds and interchange of registered bonds for coupon bonds

and vicerversa. If we are to make these splits and transfers, we should be
advised at once and prepare the necessary books and organize a department;

the task 'ill be immense. If we are not to do that work, the Trespery Department Should instantly provide facilities.
BUDIETt

While I am Chairilb of the Sub-C enittee on the budget, I Will
absent at the time whon the-moat important work is

undertaken, so I suaaest

that the Committee be asaed to Obtain estimates from every suh-committoo for

all probable mmpenditnres for instant sabassion to Washington, in order to
get preliminary appraval.

CCCUITTSX
A printed list, giving out all tle Committees, their officers,

secretaries, etc., ahould be prepared and the type held so that changes can
be made, each edition to be dated and nutbered. This miaht be accompliahed

Zdb

To- r.Jay.

Ilay 14, 1317.

bg a chart, or diractiOna aa to where reportin; Ahould be mane, according to

the olassificatioc of tha cork.
CLIWIgas

Min still loo As up

tile toot important aad difficult problem.

la view of the torws of the prospectus,

think the following is What will

heopen:

Int3rior eanics will prepare for thoir sdhacrisarat drawings

and their Cocr payments by withdrawing br:denees from Naw
York. 7.1.1s less Of the interior may be sufficient to force

all member banks to redisdount heavily with us cad for
that we shoula be prepared.
2. If these re-diaconate are so hear: as to weaken us, Nle

dtould not hesitate in turn t rediscount with the other

7.esorve b.rXe, who will be correspondingly atrongthenad
b7 these withdrawals from rev Tort.

ifter the first paymont in made, the 42evernmont will be withdvmeing balances throughout the other districts to New York.
This will caluse the withdraws' of government deposits in

detail throughout the other Jintricts 6nd sill put the burden
of rediscounting on the interio7: Reserve banks. is we grow

stroujer as a result, ce will pay off the rodf.scount oxtodod
to us by other Reserre Banks.

If the strain la pretty heavy, as they are weakened Orley
ma7! need to*rediancent with us, we le turn growiai; corms..
Immdingly stronger as the funds are assembled in Vew York.

noting the above four stages differently,It seems to me that the
problem heoomes one of avoiding a groat shift of ree2rves botwee,, the'resserve

tanes themselves and that can be done by redisoounting arranswents which will

affect the ebift in the form of mas-:Aarizin.). discounts, rather than actually
mellin4 gold.

As the procedure may be ao above described, I urge that the matter
be taken Art

the l'oderal Reserve Board, so that the other Reserve beaks

9.
To - air. Jay.

}Lay 16, 1917.

iill be 'lull prepared In advance to do rediscountinz for us as well as to
rediscount with us, and that the rate for inch transactions should be fixer'
in advance v'tel everything be ready to move automatically. Iwant to repeat,
however, what I stated in New York - that I have little fear of Am serious

situation arisin.i; if no very great body of subscribers anticipate and pay in
full. If, however, as much as six or seven hundred million, or more of the

loan is anticipated, it may he a serious strain on um. Iiiisanot urge too
strongly that these matters be all laid oat sell ahead of the smergeney.
I will write in a day or two so mq su6gootioas about the meehanioal
labor of landling the loan.
Very sincerely yours,

Jay, IAsq.,

Federal Reserve Ban;
New

or Cit,y,

Denver, Colorado,
May 17, 1917.

Dear Mr. Jay:
Spending Monday in Chicago gave me opportunity to meet with the
-

Liberty loan committee at the Federal Reserve Bank and get a little idea
of their plans.

They have not organized as completely as we have, but

still are making pretty good progress.

The members of the committee have

unanimously expressed the View that each Federal Reserve bank should have
a definite allotment of bonds to sell firm at the present time, the total
of the twelve

allotments equaling

saw one-half the present issue.

This

suggestion is to enable them to make sales firm at the present time to

large employers of labor who will make subscriptions for round amounts in
behalf of their employes who are being solicited to subscribe and make payments in small installments.

I enclose a sample card and leaflet explaining

the plan advocated by the committee.

The suggestion impresses me favorably

because of the necessity for making these allotments firm so that employes
may at once start their savings program and so that there may be no reductions
in case of over subscription.

It also enables large subscribere who do not

wish to wait until the middle of Juno for allotments to have their subscriptions accepted at once.

Possibly the enclosures should be referred to the

anpropriate committee.
I am leaving it to you to appoint the committee to deal with the

Savings bank situation, suggested by Mr. Vanderlip at the Committee meeting
I attended.

I made no anpointment because the terms of the prospectus and

the matter of the denomination of the bonds had not yet been determined when

To - Mr. Jay.

Lay 17, 1917.

I was in New York.
I had a fine trip west and am satisfied after seeing Dr. Sewall
yesterday that no ill effects resulted from my visit.

added 6 lbs, to my

Strange to sr, I

weight and now weigh 162.

Best success to your efforts.

I realize with that devotion you

are tackling the big job we have on hand and will be there to help sooner
than you think.

Very sincerely yours,

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.

Eric a .

Form 1206
IRED

Receiver's No.

, uiessago
'

Letter
Check

Ni,t Message
Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS. VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

lorre Jay,

Denver, Uolorado,
17, 1917.

Federal Reserve, Banic,

Now York City, N. Y.

Telegram reoeived. You must appreciate as fully as I do the possible
danger of our affording too groat encouragement for rediecount of loans on
Goverrnont bonds so lon ac thc: n,-,ane for protecting our told reserves are as
inadeouato as at present ston. -ere the amendmente pLseed i would have MD
hesitation in advocating three and ono half peroont rate snocifically applying
to sued transactions only stop. Aght not a general announoement of our policy
serve the purpose ../ithout eormiArkmt IS to rate stop. if the clearing house
banks would agree to settle balances on our books i would fool that our roeerve
position would be almost as well fortified as though the loan amendment had
inclined to recommend puttiLlg the Whole matter up
paseed And at this stagt I
to the clearing howe cocuictoo for joint disclIssion with oar directors and
with the Liberty local oar/tattoo stop. 1moortant they should realize our position
Just as rall;,, as we do tile. if they all agreed to join in an7 monaures necessary
to protect our reserves we mi6ftt then agree to establishing throe and one half
norcont rate stop. -rie shoule, on no account go below that and I =did favor an
'standing jttL principal banics that theirrate will 'co four percent without
scr':aination to bond subscribers Will appreciate telegrams keening me posted.
Postscript telegram just received. This ruling makes two hundred millions
gold available for us and I think justifies three and one half percent rate.
ter:

Benjamin Strong.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING I L..
Co guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison
the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID For
,i'UC/a,
ideration whereof it is agreed between the sender of the telegram and this Company as follows:
1. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
d for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
ling the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
;. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
; hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
ra cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
ition.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
at for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
,h the Company for transmission.

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
egoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
r DAY MESSAGES
ull-rate expedited service.
HT MESSAGES
ceptod up to 2.00 A.M. at reduced rates to be sent during the night
lelivered not earlier than the morning of the ensuing business day.
_LETTERS

deferred day service at rates lower than the standard day mesrates as follows: One and one-half times the standard Night
r rate for the transmission of 50 words or less and one-fifth of
utial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

further consideration of the reduced rate for this special "Day
1.1' service, the following special terms in addition to those enu-

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

ted above are hereby agreed to:

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

Day Letters may be forwarded by the Telegraph Company as a
ed service and the transmission and delivery of such Day Letters
all respects, subordinate to the priority of transmission and

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those

Day Letters shall be written in plain English. Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

y of regular telegrams.

permissible.

This Day Letter may be delivered by the Telegraph Company
tephoning the same to the addressee, and such delivery shall be a

fete discharge of the obligation of the Telegraph Company to
r.

This Day Letter is received subject to the express understandad agreement that the Company does not undertake that a Day

enumerated above are hereby agreed to:

be deemed to have discharged its obligationi n such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Form 1206
CLASS OF SERVICE DESIRED
Day Messago

Letter
_at Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

WESTE

TEL INTA AM

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS. VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Pierre Jay,

UNION

VLESTERNUNION

Receivers N.

Deliver, Colorado,

Mae 17, 1917.

Pederal 2oserve sank,

New York: City, N. Y.

Telegram received. You muet appreciate as fully as i do the possible
danger of our affording too great encouragement for rediscount of loans on
government bonds so long as the moans for protecting our gold reserves are as
inadoeuato as at present stop. Were the amendments passed I would have no
hesitation in advocating three and one half percent rate specifically applying
to such transactions only stop. Aght not a geueral announcement of our policy
serve the purpooe without cormittment as to rate stop. If the cleariag house
banks would agree to settle balances on our books i would feel that our reserve
position would be almost RS well fortified as though the loan amendment had
passed and at this stage I an inclined to recommend putting the whole matter up
to the clearing house committee for joint discussion with our directors and
Important they should realize our position
with the Liberty loan committee stop.
just as fully as we do ancl if the:! all agree to join in. any measures necessary
to protect our reserves we might then agree to establishing three and one liplf
oercent rate stop. We should orpne account go below that and I would favor an
understanding with erincipal banks that our rate will be four eercent without
discrimination to bond subscribers. Will appreciate telegrams keeping ne posted.
Postscript telegram just received. This ruling makes two hundred millions
Later.
justifies three and
(Sg. Benj. Strong.
gold available for us and , think
one half percent rate.
)

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERM'
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison
r this,
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR
,UCH.
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum rec ,ived
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or ob,,eure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whet. I,"
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby-made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities oir
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at hisexpense, endeavor tc,
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company -will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.
NIGHT MESSAGE.S
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a
complete discharge of the obligation of the Telegraph Company to

igr

deliver.

This Day Letter is received subject to the express understandng and agreement that the Company does not undertake that a Day

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such cases with respect
to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

NNW LETTER,

Denver, Colo., May 17, 1917.

Pierre Joy,
f#Pderal Reserve Bank, Now York.

You muot appreciate ao fully as I do the
ooeniblo danger of our affording too great encouragement for
rediocount of looms on government bonds so long es the meens
Telegrnm received-

for protecting our golo reeervee are at inadequate ao at preet. eere tho amendmects peed I would hevo no heeitetion in
advocating three and one holf percent rote epecificelly applying
to such treneactione only. Iiight not a general announcement of
our oolicy serve the pur "'so without committment os to rite. If
the Clenring House benks would agree to settle belancee on our

books I would feel that our reserve position would bo almost an
well 6rtified as though the loan emendmenthnd paseed and at thie
stage I an inclined to recommend put4.ing the whole metier up to
the Cleering house Committee for joint discussion with our directors and with the Liberty Loon Committee. Important they should
realize our position juit ao fully as we do ond if they ell 'ogre+ d
to juin in any meaeureo necessary to protect our reeoreee we might
then egree to estobliehing three nd one half percent rete. We
ehoule on no account go below thet and I would fovor on underrtmod-

ing with principal banks that their rate will be four percent without diecrimination to bond eubsoribers. Will appreciate telegrams keeeing me posted later. Postscript. Telegrnm juot received.

Thin ruling mekeo two hundred millions gold available for

oe and I think juetifies throe an,! one half 'e3rcent rate.

Penjamin 5tron.

Form 1206
CLASS OF SERVICE DESIRED
Fast Day Message

Letter

Ni,...

WESTEOialak\ UNION
TEL :4 IS F- AM
Ere E

YiESTERN UNION

Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Receiver's No.

Check

t61)

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS. VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colorado,
ilay 18, 1917.

Pierre Jay, Federal Reserve Bank, New York City.

:1.fter further considering your wires believe three and one half percent

rate will be justified in view of Boards ruling about note issue but suggest it
should be rredicated upon definite understanding with Clearing House that their

membere will charge say not over four percent for loans to their customers and

if possible will settle Clearing House balances on our books stop.

Announcement

of rate should carefully avoid imnlying an invitation for members to make excessive

use of our facilities during period of clearing new loan and we should not foreclose
ourselves from increasing rate later if excessive demands make that course necessar, .
Benjamin -Strong.

Chg. Benj. Strang,
4100 Montvlew.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison.
this.
e-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOJCH.
consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
ceived for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
r sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
egrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
used by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
riting hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
le per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
!stination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
,wns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
intract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
Om of the Company's messengers, he acts for that purpose as the agent- of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
.ed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
e foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORA TED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
'AST DAY MESSAGES
A full-rate expedited service.
dIGHT MESSAGES

Accepted up to 2.00 A.M. at reduced rates to be sent during the night
nd delivered not earlier than the morning of the ensuing business day.
)AY LETTERS

A deferred day service at rates lower than the standard day mesage rates as follows: One and one-half times the standard Night
,etter rate for the transmission of 50 words or less and one-fifth of
he initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

-In further consideration of the reduced rate for this special "Day
'tter" service, the following special terms in addition to those enu-

rated above are hereby agreed to:
-A. Day Letters may be forwarded by the Telegraph Company as a
ferred service and the transmission and delivery of such Day Letters
transmission and
3, in all respects, subordinate to the priority of
elivery of regular telegrams.
B. Day Letters shall be written in plain English. Code language
; not permissible.

c. This Day Letter may be delivered by the Telegraph Company
y telephoning the same to the addressee, and such delivery shall be a
amplete discharge of the obligation of the Telegraph Company to

eliver.

This Day Letter is received subject to the express understandIA and agreement that the Company does not undertake that a Day
D.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

be deemed to have discharged its obligationi n such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Form 1201

UNION

CLASS OF SERVICE SYMBOL

D. Message
Z.

Letter

Blue

Night Message

N ite

Nig!

N I.

otter

If none ur these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character is indicated bythe

EL.

NEWCOMB CARLTON, PRESIDENT

symbol appearing after the check.

GEORGE W. E. ATKINS, FIRST VICE-PRE5IDEN1

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
If none of these three symbols
Night Letter

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing atter the check.

RECEIVED AT

96DVF 103

CX DENVER COO 956AM MAY 18 1917
PIERRE JAY

1914
FEDERAL RESERVE BANK NEWYORK NY

AFTER FURTHER CONSIDERATION YOUR WIRE BELIEVE THREE AND ONE HALF

PERCENT RATE WILL BE JUSTIFIED IN VIEW OF BOARDS RULING ABOUT NOTE
ISSUE BUT SUGGEST IT SHOULD BE PREDICTATED UPON DEFINITE UNDERSTANDING
WITH CLEARING HOUSE THAT THEIR MEMBERS WILL CHARGE SAY NOT OV

FouR

PERCENT FOR LOANS TO THEIR CUSTOMERS AND IF POSSIBLE WILL Salk CLEARING
HOUSE BALANCES ON OUR BOOKS STOP ANNOUNCEMENT OF RATE
FULLY /AVOID

SHOULD CARE-

IMPLYING AN INVITATION FOR MEMBERS TO MAKE EXCESSIVE

USE OF OUR FACILITIES DURING PERIOD OF CLEARING NEW LOAN AND

CLP

N,
It 110118 05 5,5,5

Si pears after the check (number of
o ords)th is is a day message. Otherse its character is indicated by the

nbol appearing after the check.

REINIVED AT

al Ike
NEWCOMB CARLTON. PRESIDENT

GEORGE W. E. ATKINS, FIRST VICEPRESIDENT

symbol appearing after me me,,

96DVF 103 SHEET TWO

WE SHOULD NOT FORECLOSE OURSELVES FROM INCREASING RATE LATER IF
EXCESSIVE DEMANDS MAKE THAT COURSE NECESSARY

BENJ STRONG
1259P

Denver, Colorado,
May 18, 1917.

Dear Lir. Jay:

Your two telegrams of yesterday reached me just as 1 was leaving
for dinner with some friends and I was obliged to send you a very hasty
answer.

I am not afraid of making a 3-1/2% rate, provided it is done in
such a way that we will not invite the banking community to shift the

whole load of carrying Liberty bond loans on to the Federal Reserve Bank
of New York.

You anpreciate, as I do, that loans of that character can

only reduce our gold reserve to the minimum required by the statute for
the member banks to carry with us, or such amount less they are willing
to permit their reserve to be impaired, but on the other hand it would be

a shock to the banking community and to the country to have the impression
get abroad that the thole burden of financing government loans has been
forced upon the Reserve banks.

Your second telegram, adviein

that we may

use notes so discounted as security for note issues, which was quite now
to me, puts quite a different aspect on this matter and I think justifies
our making the rate, but we must, if possible, have some understanding
with the Clearing House as to the method of settling balances as that will
prevent their hoarding reserves and avoid the danger of sudden depletions
in our reserve, even overnight, when these great transfers are being made.

Very sincerely yours,

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.
BS/CC
ENC.

Denver, Colorado,
May 19, 1917.

Dear Mr. Jay:
i would not

Replying to yours of the 15th about French coin.
hesitate to ta,:e over that which is contained in

the present

and hold it as French coin, provided we can do so without
later expense

in converting it.

Shipment

liability

for

In other words, we should take it at the

net value after deducting all costs for conversion into standard bars.

The objection I

intimated for doing so had relation to possible legis-

lation which would

demonetize all existing

been told that there is little

French gold coin, but I have

prospect of such

tried and proved to be a failure

legislation, which was

in Germany.

Personally, I would not hesitate to accumulate as much as

4100,000,000 all told in the form of bars i,nd would not hesitate to
hold sovereigns nnmelted if
gested

we can acquire them on the basis

for French coin.
You can understand

how keen I am for news and how

ciate your telegrams, which are most

thoughtful.

work.

Faithfully

Pierre Jay, Esq.,
Federal Reserve Bank,
New York City.

BS/CC

above sug-

yours,

much I appre-

Please do not

over-

Form 1206
CLASS OF SERVICE DESIRED
."
I

4 Messago

WESTELibSk UNION
TEL
AM
YLESTERN UNION

Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Receiver's No.

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colorado,
18, 1317.

Pierre 3a7, 7edernl Foserve Bank, Now or Oitu.

Aftor Pirthor considering gour wires believe three and one half percent

rate will be justified In view of Boards ruling about note ilmun but saLzest it
should be nredicated upon definite underatanding with Clearing House that their

1K-,rs will ctarge sa7 not over four percent for loans to their customers and
If possible will settle ClocrIng House balances on our boo 4s stop.

Annonnew:lont

of rate should carefully avoid implying an invitation for members to make excessive

of our facilities Aurinc; period of clearin new loan nn4 we should not foreclose
'selves from increasing rate later if c2zeusivu aemaals rake that couree coo oar

1141,

Benjamin Strong.

Stron6,
-)110

:_!.)ntvierer.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERr'''''
r this,
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for compai
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID 1,
3 SUCH.
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond toe amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery!, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach it
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities o
towns. Beyond these limits the Company does not undertake to makc delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor',
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
.

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.
NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters
is, in all respects, subordinate to the priority of transmission and
delivery of regular telegrams.
Day Letters shall be written in plain English. Code language
is not permissible.
c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a
complete discharge of the obligation of the Telegraph Company to

deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day
D.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Coinpany
be mailed at destination to the addressees, and the Company Shall
be deemed to have discharged its obligationi n such cases with respect
to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Denver, Colorado,
May 22, 1917.

Dear Mr. Jay:
Thanks for yours of the 17th.

a,c1

glad to get details of the

work.
About that resolution, I have no doubt it is all right and judge
that the action we discussed by telegram has been taken.

another suggestion in that connection - I
effect if We

Let me make

think it would have a wholesome

applied from New York at once to the Federal Reserve Board

for the establishment of

the rate of discount to apply

one Federal Reserve Bank with another; the rate should of

The early announcement for such a

as occasion night

rate and

rediscounts

course be uniform.

arrangements for rediscounting

require, should convince the public and particularly the

bankers of the country
is /reproved a carefully

that we are alive

to the situation.

Alen the rate

worded announcement should be made, explaining that

it is simply another stsp in preparation for financing the big loan and
one designed to insure no disturbance to the money market, etc., etc.

About state legislation in New York, do you know if the move is
on to have Federal Reserve notes count as reserves for state levelh.6 and
trust companies?

The legislation

should accomplish that,

either directly

or indirectly, as proposed in the amendments to the Federal Reserve
Can't you start something along this line?
I will see you in New York a wee

from Wednesday.

Very sincerely yours,
Pierre Jay, Esq.,
Federal Reserve Bank,

New York City.
BS/CC

Act.

ERVICE DESIRED
Messago

WESTE

4AMIFNA

tiak

UNION

YL/STERNUNION

usage

X
Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL SE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL

11&

Receivers No.

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colorado,
Lay 24, 1917.

Pierre Jay,
Fejsial Reserve Bank,
New York City,

Suggest recommending to Secretary Baker
Sorry was out and reply delayed stop.
that soldiers and others be paid in Bank of France notes to the extent they desire
pay remitted abroad, each soldier privileged to retain any part of pay in American
imoney at home stop. To extent paid in France Bank of France notes should be used
and followin_ proeedure followed stop. Rates of exchange to be established by Secretary
regular intervals we purchasing for department sufficient fronts for their requirements
lob we would remit to Bank of France to credit of paymasters as directed for such sums
quired to ma.,;.-o paym.onts at rates established stop. hatos should not be ahaned
fluctuations make necessary and rate established should leave slight margin in
enta favor stop. Only other plan Which occurs to me is for government to
t Bank of France as fiscal agent thich strikes me as unsatisfactory stop. Our
emont with Ban.: oi Franco could be perfacted by cablo 11:1 short notice stop.
mires money closed above throe. Recommend using our funds to koep rate down.

Benjamin Strong.
Strang,
ontview.
.

ALL TELEGRAMS TAKEN BY THIS COMP
To guard against mistakes or delays, the sender of a telegram should ordo
one-half the unrepeated telegram rate is charged in addition. Unless otherwise in
in consideration whereof it is agreed between the sender of the telegram and this I
The Company shall not be liable for mistakes or delays in the transm,
received for sending the same; nor for mistakes or delays in the transmission or d
for sending the same, unless specially valued; nor in any case for delays arisinl
telegrams.

In any event the Company shall not be liable for damages for any mistl
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY
writing hereon at the time the telegram is offered to the Company for transmissi
one per cent. thereof.
The Company is hereby made the agent of the sender, without liabilit
destination.
Telegrams will be delivered free within one-half mile of the Company,
towns. Beyond these limits the Company does not undertake to make delivery,
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until
by One of the Company's messengers, he acts for that purpose as the agent of ti
The Company will not be liable for damages or statutory penalties in
Sled with the Company for transmission.

Special terms governing the transmission of messages under the classes of me
the foregoing terms.
8. No employee of the Company is authorized to vary the foregoing.

CLAIM
FAST DAY MESSAGES
A full-rate expedited service.
NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the ni
and delivered not earlier than the morning of the ensuing business d
DAY LE-CTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

further consideration of the reduced rate for this special "Day
cti,er service, the following special terms in addition to those enu-

by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understandand agreement that the Company does not undertake that a Day

NIGHT LETTERS
Accepted up to midnight for delivery on the mor
ensuing business day, at rates still lower than standard ni
rates, as follows: The standard day rate for 10 words sita
for the transmission of 50 words or less, and one-fifth
day rate for 10 words shall be charged for each addif

ssage;-1

arged

standx.4
words'

less.

SPECIAL TERMS APPLYING TO NIGHT L

In ftirther consideration of the reduced rate for t
Letter" service, the following special terms in

ii "N`

Night Letters may at the option of the T
be mailed at destination to the addressees, and t
be deemed to have discharged its obligationi n such
to delivery by mailing such Night Letters at d

ph Comp

enumerated above are hereby agreed to:

prepaid.

Night Letters shall be written in plain Eng

is not permissible.
No employee of the Company is authorized to vary th

to t

s s pany shall
h respect
postage

STADWIRMICK-WPBALB

June 14

Beforring

441,

.9Vl

the anneuncehent made yesterday by the ComptrolleN

of the Currency Governor Strong of the Federal Beflern Bank of New YOE% aado
the following statements

The directors of this bank have established a rate of 3

1/4 which

will apply to disoounts made for it meMbers 'here the prooeeds are employed

for the purchase

of Liberty bondso and a circular to that effect has recently

been mailed to our nomborse
Comptroller has been

We understand that the statement isousa

oonstrued by some as a suggestion to member and state banks that this rate

was established in order to enable the banks

to purchase

Liberty bonds for

their own account to the extent Of 6% of their resources, even
must borrow from us to do goo

mined by its directors, has

though they

But tbo policy of this bank ehich.is deter-

been to urgp upon all banks the importance of

placing the bonds as widely as possible among individuals and corporations
in their oommunities, believing that the interests of the Government, as

Well as the business of the country, will

be beet

served by a wide distribu,

tion of these long time bonds, thus leaving the resources

of the banks

free

to take care of the requirements of business and industry and the temporary
financing of the Government,

'del

that each bank Should use its own judgment, governed by

its obligations to its

depositors, as

well as to the Government, as to the

amount of Liberty Loan bonds to be subscribed for its own account,
The response of the bulks, individuals and corporations throughout
the "Mole of this

district has

been so extremely gratifying that it is clear

the banks have all used their best efforts, each according to its own cireum-

stance*. end local conditionals, to insure the 811000118 of the Isamu

In this matter of accommodation to Its membr banks this bank slat

wishes to malwits position clear, as follows:
All prow requirements of its mombore sill be taken care of but
the bank°8 policy in making loans and rates vill be determlusd by its dirooto:
subject only to the approval of the Fedora Ileservo Board.

Form 62.

100m-2-17.

THE COLORADO & WYOMING
TELEGRAPH CO.

Number

ime Filed

CLASS OF SERVICE DESIRED

Day Message,'

Night Mes4age
Day Let3i3r

Night Letter'

ELEGR M

Number of Words

SEE BACK OF THIS BLANK.

Send the following message, subject to the terms
on back hereof, which are hereby agreed to 5

July 12, 1917

Pierre Jay,
Federal Reserve Bank,

New York City
My suggestion to Gregory and Vanderlip contemplated meeting Gregory's wish to
develop a skeleton permanent organization so that Gregory could be released as
soon as possible.

lons.

h9-a3),

Stop.

Pairons should mark an X opposite
the class of service desired; otherwise FULL RATES will be charged.

Neither he nor I discussed his continuing for future

It would, of course, be a mistake to put Anderson in charge of

Inc present work, which should be finished by Gregory, and when his report com,leted, a new chief clerk should be appointed to work undet Anderson.

Stop.

clerson should not be expected to do the kind of work Gregory has done.

clerical work should be under our own salaried man.
Benj. Strong

Stop.

ALL MESSAGES TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a message should order it REPEATED, that is, telegraphed back to the
originating office for comparison. For this, one-half the unrepeated message rate is charged in addition. Unless otherwise licated on its face, THIS IS AN UNREPEATED MESSAGE AND PAID FOR AS SUCH, in consideration whereof it is agree,,
tween the sender of the message and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of ani UNREPEATED message, beyond the amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery of any REPEATED message, beyond fifty times the sum received for sending the same, unless specially
valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or
obscure messages.
In any event the Company shall not be liable for damages for any mistakes or delay in the transmission or delivery, or
for the non-delivery of this message, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY
DOLLARS, at which amount this message is hereby valued, unless a greater value is stated in writing hereon at the time the
message is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal
to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this message over the lines of any
other Company when necessary to reach its destination.
Messages will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and
within one mile of such office in other cities or towns. Beyond these limits the Company does not undertake to make delivery,
but will, without liability, at the sender's request, as his agent and at his expense, endeavor to contract for him for such delivery
at a reasonable price.
No responsibility attaches to this Company concerning messages until the same are accepted at one of its transmitting
offices; and if a message is sent to such.office by one of the 'Company's messengers, he acts for that purpose as the agent of the
sender.

The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in

writing within sixty days after the message is filed with the Company for transmission.
No employee of the Company is authorized to vary the foregoing,

THE COLORADO &, WYOMING TELEGRAPH CO.
D OE

CLASSES OF SERVICE
DAY MESSAGES

A full-rate, expedited service.
NIGHT MESSAGES

Accepted up to 2:00 a. m. at reduced rates to be sent during the night and delivered not earlier than the morning of
the next ensuing business day.
DAY LETTERS

A deferred day service at rates lower than the standard
day message rates as follows: One and one-half times the
standard day message rate for 10 words for the transmission
of 50 words or less and one-fifth of the initial rate for each
additional 10 words or less. Subordinate to the priority of
transmission and delivery of regular day messages. Must be
written in plain English. Code language not permissible.

Telephonic delivery permissible. Day Letters received subject to express understanding that the Company °ply- undertakes delivery of the same on the day of their date subject to
condition that sufficient time remains for such transmission
and delivery during regular office hours, subject to priority of
f
the tranmission of regular day messages.
NIGHT LETTERS

Accepted up to midnight for delivery on the morning of
the next ensuing business day, at rates still lower than standard night message rates, as follows; The standard. day rate
for 10 words shall be charged for the transmission of 50 words
or less, and one-fifth of such standard day rate for 10 words
shall be charged for each additional 10 words or less. Must
be written in plain English. Code language not permitted.
Mail delivery, postage prepaid, permissible.

Denver, Colorado,

128 Gilpin St.,
July 13, 1917.

Ly dear Jay:
/our telegram of the 11th reached me day before yes-

teraay, just as I was headed for the country to visit sone
friends, and on that account the reply was somewhat delayed.
I am not surprised that you did not understand the situation
about Gregory. Coniidentially, let me now ex]11ain in more

detail than was possible in n, telegram.'..lreizory was rather
urgent that he be relieved, as you know, or if he was to eontinao until this job was Zinisllied up that I should make arrancements with Mr. Vanderli-o, as some work was nressing at
the City Beni:. In considering what 1 should do about it,

it struck me that it would be necessary for 1r. Grep;ory to
finish up the )oresent job completely anti prepare the necessary
final report to Washington. It would bn a n5 take to introduce a

-11; map during the llendeney oT

woTT:.

At the same

Um; I have beer equally ei.eitpth
r. Ctrer-ory shot7.7. not be
ased to undextake this job again, bvt that we Shauld develop
an organization. of fror own cP-palle of handlirr: the clerical
work under the direction e& puell. a men as

:nderson might

select.
In vim of this, I asked I . (1:regory to go right ahead,
finish up the job so that we would not be swappinc horses in

July 13, 1917.

Er. Jay,

the middle of the stream, and begin the selection of :len
whom we mirtt retain permanently for that sort of work. He
has never reported to me in regard to a permanent organization,
/ nor ao I believe he die anything at all before I left, knowing how busy ho was.

LIy opeegestior is that errnrgemonts be no to retain
k-ogory for the conplotion of the presort 7orh, which ho
told no be fe)t certain ho corraJI JArdsb up well before the
first of Aveunt, or even dispone of it so far as his personal
presence was involved by tbe m100.3e of OrIF, loving such
pooe men in ohArgc as we mi,-711t select with his assietence.

I Po not think GrePory bed the slightest expectation of eein7
anything more than finishin7 up hie lereeent werk, but I tole_
him that lf ho thought it r.Ps nOcoo:lary for him to be attaehee
to our staff in some ray, L mould take that up at the nmet
Direotere' meeting.
Persona/17, I have never had anv difficulty in handling
Grecor7. but I realize that he is a rather com.plicated proposition snc needs to be dealt with moot tactfully.
hope you saeceed in keeping everybody happy.

Tly

letter to Varderlip related ertdrely to the present job which
Gregory shaala finish an. no one else. I hope the above clears
the matter up in your mina.
Very sincerely yours,

Pierre Jay, Esq.,

vederal Reserve Bank,
New York City.
BS/CC

Denver, Colorado,

128 Gilpin St.,
July 13, 1917.
Dear Mr. Jay:

I war, asked to attend a meeting today at the Colorado
Eatierial :ala:L to disoLos tLe cImaneht ..,ibert:1, Loan organizavion in tIlic state,.
hei uind ;e/e turnim distinctly in
the d!..rectio, of Looking up in soLe way with the American
n.kerILseciation. I went MOT t'!le gromid with theN, just
we Lave discussed it, all of ;ditch they .6horoug11;7 under,
f2Ley tell ma they ax(: ab5olutelz, in -uhe dark here about
1,1ans
6.ontt %taw ho a .0 or.!ALALe, p-ot no irstrretions fiom I.Cansak City, have 44-) mAaps of xnowthf'. how ozponses

J. be provide& and, in fc.ct, foe oula up irt the air.

The

B. A. development and their own feeling that the :Federal
1Zeservo Bank of,Xansas City cannot or will not help them get
stinted promptly, emphasize the importance of some plan bein7
sketched out for the benefit of the whole country just as
promptly as possible.
em dictre.ised at beinc,: away but feel sure that the
worz mast be quieting down by now and that you will feel flee

give all of your time to this matter.
Some man like riklin au-ht to be on the job in
.lashington, to cooperate with us, and threugl him the result
of our work as modified by the Department when submitted
should be distributed to the other Aloral 7esorve RfrnIrs just

as soon as Dossibio.

-2-

Mr. Jay. -

July 13, 1017.

The above I know is unneoessary to you, but Denver
is-a Shinin3. example of lack of prepareemoss.
Very sincerely yours,

Ja7, 311.,

Federal Reserve Bank,
Yor71: Cit7.

Form 1205
OF SERVICE DESIRED

ICLASS
Fast Day Message
Day Letter

Alf ESTE4/.:4FNI UNION
trr

WESTERN UNION

Night Message

X
Night Letter
atrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Receivers No.

za err, TELwvu2740/

Cheik

Time Filed

NEWCOMB CARLTON, PRESIDENT

Send the followiag telegram, subject to the terms

on back hereof, which are hereby agreed to

Denver, Oolorode July 1G, 1917.

Pierre Ja79 Federal Ronerve Bark, New Yon

N. Y.

Telegram received stop. Hight be well for you to prosido unless

for SOLD political roaoon but think. you boot judge stop. Blacketts present°

night help on war oavings discusoion stop. Plan might dovolon bettor cooperation
from bai%s if thq7 wore employed as savings organizations for war purposes stop.

keu-I,ested Prod or Albert Strauss to Secretary as financisl advisor. Either

mull be amollent stop. Suggoot earlr conference with D:moroon regarding
manont publicity hoadrivartors at ban% acting Umder your oupervision stop.
7700 your views rcuarling Aniorson but thin% clhoevor handles boni department

Iioigct be satisfactory to him. Ehoy arc so intimately related stop. Agroo to

viodom appointing assistant cashiers but fool otr,:mgly advioibility of retaining
Davison for his department ani Anieroon for general selling maiagament stop.

Ina

ALL ":"ELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:

To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison.
alf the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FO'
onsideration whereof it is agreed between the sender of the telegram and this Company as follows:
ise
1. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, bey
iived for sending the same; nor formistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty time -10
sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors i

,rams.
In any event the Corqpany shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this
wed by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value
ling hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one,

;n- th

a per cent. thereof.

The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to re ch it.

atination.

Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cit.
Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at hisexpense, endeav`)er. ;,t
utract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
o'ne of the Company's messengers. he acts for that purpose as the agent of the sendr,
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
ed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to
e foregoing terms.
S. No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANN(
wns.

INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
'AST DAY MESSAGES
A full-rate expedited service.
IIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
tad delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

A deferred day service at rates lower than the standard day mes>age rates as follows: One and one-half times the standard Night
Letter rate for the transmission of 50 words or less and one-fifth of
the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters
is,

ular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.m, for delivery on the mc rning of the ensuing
business day, at rates still lower than standard night message rates, as
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10.,
words shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

in all respects, subordinate to the priority of transmission and

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those

Day Letters shall be written in plain English. Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

delivbry of regular telegrams.
is not permissible.

c. This Day Letter may be delivered by the Telegraph Company
oy telephoning the same to the addressee, and such delivery shall b'e a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regulat office hours, subject to the priority of the transmission of reg-

enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Form 1206
SERVICE DESIRED
Day Message

y Letter
ight Message

4ight Letter
s should mark an X oppoe class of service desired;

iRWISE THE TELEGRAM
BE TRANSMITTED AS A
FAST DAY MESSAGE.

WESTE02,s4NA UNION
TEL
AM
E

Receiver's No.

WESTERN UNION

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT

nd the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Pierre Jay.

Page 77o.

July 34, 1917.

Your suggestion of mitinguntil adjournment is the best stop. Suggest
proceeding Ilth organisation of spools:1 corritteos in addition to district
committees sam as last time stop. Your telegram ver7 ancotraging.

Hope

conference 17111 be able to oUbmit definite recomrendationn for program to

Secretary at or

date and Pranhlin trmonits oar° to other Reserve Bart to
avoid confusion stop. Delighted at progress in Guaranty natter.
Denjorlin Strong.
Chg. 'Benjamin Strong,

120 Gilpin St.

ALL "1"ELEGPAMS TAKEN BY THIS COMF
To guard against mistakes or delays, the sender of a telegram should ord
half the unrepeated telegram rate is charged in addition. Unless otherwise i
,onsideration whereof it is agreed between the sender of the telegram and thi
The Company shall not be liable for mistakes or delays in the trans:
lived for sending the same; nor for mistakes or delays in the transmission or
sending the same, unless specially valued; nor in any case for delays axial:

grams.

In any event the Company shall not be liable for damages for any mu:
teed by the negligence of its servants or otherwise, beyond the sum of FIFTY
iting hereon at the time the telegram is offered to the Company far transmiss
e per cent. thereof.
The Company is hereby made the agent of the sender, without liabili
stination.
Telegrams will be delivered free within one-half mile of the Company'
wns. Beyond these limits the Company does not undertake to make delivery
ntract for him for such delivery at a reasonable price.
No responsibility attaches to this Cothpany concerning telegrams until
r one of the Company's messengers, he acts for that purpose as the agent of t
The Company will not be liable for damages or statutory penalties in
ed with the Company for transmission.

Special terms governing the transmission of messages under the classes
of
,e foregoing terms.
No employee of thc Company is authorized to vary the foregoing.

CLASSP
FAST DAY MESSAGES
A full-rate expedited service.

NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the nig
and delivered not earlier than the morning of the ensuing business de
DAY LETTERS

A deferred day service at rates lower than the standard day m(
sage rates as follows: One and one-half times the standard Nig
Letter rate for the transmission of 50 words or less and one-fifth
the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters
is,

.....

uten

enbniag,

ousiness day, at rates still lower than standard night message rates, as

follows: The standard day rate for 10 words shall be charged for th transmission of 50 words or less, and one-fifth of such standard day rate for 10
words shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

in all respects, subordinate to the priority of transmission and

In further consideration of the reduced rate for this special "Night
Letter" service, 'the following special terms in addition to those

Day Letters shall be written in plain English. Code language

Night Letters may at the option of the Telegrap a Company
be mailed at destination to the addressees, and the Co pany shall

delivery of regular telegrams.

is not permissible.
c. This Day Letter may be delivered by the Telegraph Company
the same to the addressee, and such delivery shall be a
by telephol
large of the obligation of the Telegraph Company to
complete
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day
D.

enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destine tion, postage
prepaid.

Night Letters shall be written in plain English. l ode language

is not permissible.
No employee of the Company is authorized to vary the fore going.

Form 1206
, SERVICE DESIRED
Day Message

ay Letter

WESTEBrxsxA UNION
=0' AM
TELVXWA!"Fer

Receiver's No.

WESTERN UNION

Night Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Check

°1

Time Filed

NEWCOM R CARLTON, pREsinFNT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Golorado, July 17, 1917.

Pie3:ro Jay,
.rodoral Rosary° Bank,
Lew York City, :. Y.

Wire delivered too late to reply last night.

Hope you

can arra:47°171th LeGarrahs cooperation to revent ouch an

irregular money market which will have bad effect stop.. Plan
for retaining Gregory would not al?peal to .me unless
. 1'.satisfactory to Andorson.-stoD. Believe Gregory beat man for
inside work so long as he door not deal with member and other
banks stop. If "%ndersen agrees I have no objection.
Strong.

Chg. Benj. Strong,
128 Gilpin St.

1""irr
L TELEGRAMS TAKEF 3Y THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERP
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparish
half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOL
msideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the
at
ived for sending the same; nor tor mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum rc
sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or
..re
rams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
ed by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
,Mg hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based en such value equal to one-tenth of
per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
ms. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
tract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at One of its transmitting offices; and if a telegram is sent to such office
one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
d with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in eac". of such respective classes in addition to all
foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
4ST DAY MESSAGES
A full-rate expedited service.

GHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
d delivered not earlier than the morning of the ensuing business day.
AV LETTERS

A deferred day service at rates lower than the standard day mesre rates as follows: One and one-half times the standard Night
tter rate for the transmission of 50 words or less and one-fifth of

e initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
tter" service, the following special terms in addition to those enu-

Letter shall be delivered on the day o. its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
_
Accepted up to 2.00 A.M. for delivery on the morning of tho ensuity,
business day, at rates still lower than standard night message rates,.2t,

follows: The standard day rate for 10 words shall be charged for the trail,- CT.
mission of 50 words or less, and one-fifth of such standard day rate for 10
words shall be charged for each additional 10 words or less.

rated above are hereby agreed to:

t. Day Letters may be forwarded by the Telegraph Company as a
erred service and the tran3mission and delivery of such Day Letters
in all
subordinate to the priority of transmission and

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In fuither consideration of the reduced rate for this special "Night
Letter" service, the following special term... in aciaition to those

Day Letters shall be written in plain English. Code language

enumerated above are hereby agreed to:
a. Night Letters may at the option of the Telegraph Company

telephoning the same to the addressee, and such delivery shall be a

be deemed to have discharged its obligation m such eases with respect
to delivery by mailing such Night Letters ac, destiaation, postage

ivery ofrespects'
regular telegrams.

not permissible.
c. This Day Letter may be delivered by the Telegraph Company

nplete discharge of the obligation of the Telegraph Company to
liver.

This Day Letter is received subject to the express understand, and agreement that the Company does not undertake that a Day

be mailed at destination to the addressees,. and the Company shall

prepaid.
B.

Night Letters shall be written in plain English. Code language

is not permissible.
No employee of the Company is iuthorized to

iit6 foregoing.

Donver, Colorado,

July 17, 1917.
Dear :Jr. Jay:

Thank you for your wire of the 16th.

The telegraph

)mpany was stu 6a about tha delivery and I did not got it
until too 1a- vo relay last evening. An answer sent this
ahieh oenfirmatiou is enclosed, fear will not
reae

you

.foro tho Committoo meetin7,..

It r A. be unfortunate ;f our money rates got ia disorder and

to get a. Mt.;
daoosits and soo
Reserve Janks i3 no
to lieu York eo as to keep

lor it m11i.t not be a ,7ood 71an
uation as to Covernment
ed with the ot7lor

need to enution you and 11)2

be transferred
oaz,iar. I do not
neoassi
fokill-

ful managenent of this Lultter ;Ins

'Jo-up of funds in the eserve Bank.
borro-7, large sums on "liort eertifio
they rim-u17; will in it impossible
'

Pxy

need

befor 7'

rlong
), hvve =oh

avor call money rates in liew York.
t Atuation justitios,
.eapreeentation should be Linde 10 Secretary reAdoo iP the near
futuro as to the impertane,) of getting additional legislation
givin!- him wider authority ii fi7tinp.; -..-ates on Government loans.
1bout l';r. Gregory's de-rtmont, - telographed you As
I aid beeanoe, while 1 fully ap:nrocin.te r. Grogoryi'; s'rw

value end ability, he is altogether too arbitrary and higUr

-2..

- Lir. Jay.

July 17, 1917.

handed to bo again put in charge of a big piece of work
whio't will bring hira in too close contact with our own member
banks and our bankinu friends. He antagonized all of the men
in the Publict apartment and quite enrecessarily, according
to my view,

selling
contact

ram arbitrary directions without first

making

get together with them. 2ho management of the
of the business must necessarily have such close
o tb
-6 depart
that unless Anderson feels

satisfied
certainly sacr
other hand, if tn

or
f

Aaderson.

OR the

Gregory *an o brought together

to work in harmony, 'hat auld suit ne v, y well, so long as

Gregory was net in poti

to deal witto

tters in such
an arbitrary high-handed far
did on the
t loan.
I like Cfregory and can get alo , with him all 4.at,
but i find that 6.ost people have 1f..
in dollar,. u Fold
certainly don't want to sec a repetiti if such
idiculoua
situation as we had on the last loan.
It makes me fool Very guilty to be loafin out here
.

when you are struggling w1t7.7. these problems, and I will do any-

thing in my power to help.
I wrote 1:717.

I-I:organ about the report thnt the Interborough
vins paying its employes in 7old ana enclosed is his re-47.

Best ref-7,rds to all of you at the office.
PaithfUlly yours,
2ierro Jay, Esq.,
Dm, York 01t17.

Denver, Colorado,

July 23, 1917.

Dear L. Jay:
an replying to yours of tho 19th and Curtis" letter
of the 20th to her, as I just loan that Curtis is in Wash-

ington. Co,tion of my telegram is enclosed.
t our bond issue division, of course Sir. Gregory's
advice an assistance will be of very great value. D.() one
n I do. On the other hand, if
rocognizo his a 'My-Mere
Gregory i to ave
crv on of that departmont, he must bo
cruise, confusion is sure
relieved of a
and we have too
; therefore my vote for
this plan uould be c.nd.it onod upon son.. o taking over ,Tr.
ci try Mr
Hendrick's work instantl
dri
on Jr. Sailor's
of his tin o organizjob, so that °.r. Sailor can\çoto
ut this
ing the bond issue division. I am ab
an an determined that we shall not
the past
in having certain non so heavily burdo
lave to work
-2. Gregory connight and day. In fact, I would prefer to
tinue his present work and put some one man in charge of tho
bond issue division, - say a man like the Bankers Trust Cols
clerk that we sent to Washinton, as the present plan moans
breaking in two non to new duties, whereas putting a now man in
the bond issue division would involve breaking in only one Ian
to now duties.
I have no doubt Lr. Line can handle the Government do

-2-

2o - Lt. Jay.

July 23, 1917.

posit end, provided he is supported by competent clerks
working with him on one hand and supervised by competent com-

Davison and his associates on the other.
I am a ttle disappointod about the decision regardg
Sailer, ich doubtless was very carefUlity considgred
fore being adopt°
there is no doubt whatever in my
Abo t
mind of his flporto2ico in ti.. organization, but possibly we can
erence to having Gregory delet that aw
I would have preforred
tatched from
charge of the whole
to lot Gregory r
t t work. That would
bond issue job, if he we will
involve making him an a ting deputy govern of the bank. However, it is hardly fair to impose my views pon you fellows
with you.
whom I am so far away and not able to di
We should Vo very careful in so ting one man like
and not pay others who
.Gregory to be paid special compensat
are doing similar supervisory work. If we pay one, we should
pay all and on that point I think Gregory in making a mistake

mit

and possibl# we are too.

In regard to the report sent by Curtin - there are only
two or three points which need special reference, for 1 think
it is oxceliont in evory way.

-3To - Lir. Jay.

July 23, 1917.

It should recommend that a larger issue of Treasury
certificates of indebtedness be authorized by Congress at once.
If that is not done, you are bound to zoo the Secretary of the
Treasury advathe date for placing the next loan, for I am
sure the f-r
nment will need the money, This will furnish ex-

tting wider discretion in fixing rates of interest.
Ilitch confusion and difficulty resulted from the de-

lays in

e recent of liter -are by each of the Reserve Banks

during t 1
partment tha
of the loan aro

so that we all get f
other matelial, includin

trong reoommendation to the de-

rod at once that the terms
fidentially, if necessary,
otart. This ?Plies to buttons and all

3rd, The Secretary
ry should,
my opinion,
send preliminary communications to th .:Zeserve Bank in such
detail as is now possible, which viii advise them t
the Eeservo banks are to be employed on the
t loan,
outline
some procedure for the appointment of loc.
ni-toos throughout the respective distriots. Here in Denver they are absolutely in the dark as to what daould be done; they Irnow nothing
about the provision Tor -expense and can get no infor,Aation from
-

itimeas City.

If preliminary circulars can be sent out by Secreary McAdoo to all the Reserve banks, relating merely to matters
of organization, etc.,' it will get a lot of that work by us before the actual loan campaign conmences.

This should likewise

To - Mr. Jay.

July 23, 1917.

include provision for publicity, which is of much greater value
in advance than it is at any other time.
did not include it in mow telegram, but I think that
er
hould be given to Mr. Dams' A.an of having a part

the issue al .tted to each district sold firm, without chance
reduction on llotmont when the loan is offered, and having
bonds actual
d up to the maxinnn, in the order in
vod.

If two billion. bonds are

lion subjoct to allottment, I bo-

sold. firm th,
hove it won]
the whole three

subscription than by placing
tment.

I think also there

rate.

My personal ViOY

ubt about the 41;

that a

overwhelming subscription, would put the wn

e jive billion issue

at a premium, and, while it would reduce b
omowhat,
in which case we would all suffer on our
invostments, yet
I think it would conform to the ox-pc
co of Eng1an0 and in the
long run produce bettor rosults. I #1 thinking of course of a
possiblo long uar and very much heavier financial burdens than
contemplated by most people.

I am a little concerned by the failure of cooperation,
or possibly I should say by refusal of cooperation in the money
market last week. We should not see 10., money. With that in
mind, I am going to suggost that you arrange for a meeting of
the Liberty Loan committee and the Cloaring House committee for

-5-

To - Mt. Jay.

July 23 1917.

a day or two after my return, so that we can have a little
discussion with them before I go to Washington for the mooting
on the 15th, and I have asked Mr. Treman to get up some data
as to the eligible balance and loans held by the banks in New

York, so that we can deal with the matter intelligently. Pose asked him also to get a report from hr.
sibly I shoul
LIcGarrah ac

o the action of the Clearing House committee in

eect t requiring members of the Clearing House to carry a
reserve a just stock exchance loans made by Dew York banks
That is one of the most fruitespondo
towfor out
money market in time of strain.
lotto bout our additional acank tI I think th should be very concommodations at t
siderably enlarged and a doubtful if tl 5000 ft. taken on
ohould have
the 4t- floor will give u ll we need
1V1 causes o:
You say

ample accommodations, meetink

tell Mr. Sailer, if ho handles the cl rical work, t1

you would

I was

very much dissatisfied with the diso trly aipoarans of the
ore we should
room on the 5th floor in the bond issue viola

have had better filing facilities and better provision for supplies of circulars, etc; also more waste-baskets, places to hang
coats and hats and, generally, keep the litter and confusion out
of the place whore work is being done.

I am awaiting with interest the report on the savings
nrogram. That little article I wrote for Emerson is bringing
letters and inquiries to no from various sources, indicating
considerable interest in the subject, and I think the government

To - Er. Jay.

July 23, 19327.

aught to take action to appoint directors or a committee or
government officer to take charge of that matter and put it under
way forthwith.

given to possible legislation to
make the G. rnment a first preferred creditor of all depositary
o z to avoid Twadling.collateral entirely? This would
be a tron rJ10u3 relief and I ao not see why it should not be
Vas an.

done.

but also that
of the meeting,

the results.
Best regards

Pierre Jay, :leg.,

Federal Reserve Bank,
Ilew York City.
B3/CC

,oration of these various suggestions
appreciation of the work
ndid ..ziad will produce

Form 1206
s, OF SERVICE DESIRED
nay Message

otter
r_._

.vlessage

Night Letter
Pathns should mark an X oppoSlir the class of service desired;
O-HERWISE THE TELEGRAM
NILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

NVESTEL1A

UNION

TEL' AM

Receiver's No.

WESTERN ONION

Check

;PIC7e17

Time Filed

NEWCOMP CARLTON. PRESO,NT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colorado, ally 23, 1917.
.,.

orre Jay, Poteml Reserve Bank,
row York City.

Yours ninetconth and Cuztis twentioh witi7.!eport Liberty Loan
onferenco just Yoceived stop. Think: report c::collent and chances
unlcsa o::ceedincly lpportant step. ZhinT meetinc
lhould have reeemnended legislation for larga_e issue indobtednes
cortiTioates at once as dates of payment provided probably not
early onouh to covor requirements oven includinc present authorized
tloues stel). Dcortmont shoulJ be Leuosted to got literature in
of Reserve 'airacs of all note-lois wall in advance. Lich
ooL11.4Aion oa.med before by delay stop: ';;ould also rer3orlidon1
oliminary lottor from 2oorotary to 13o:servo Banks, oating piano
dotail boin,6 formulatod and romosting banks to notify all
oomnittoof; in respootivo Cistriots, to devolov rroliminary organi-

zations itop. AL!. writing fv.11y.

t r oni'.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
r this
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparis,..,
UCH
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FO
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, bey
..mount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times;
Dceived
o.5scure
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whither
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is s atei... ;writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tnith
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to rech its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavir to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any ease where the claim is not presented in writing within Sixt y days after the telegram is
filed with the Company for transmission.
-

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.

NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

I A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night
Letter rate for the transmission of 50 words or less and one-fifth of

the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:
..

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

Letter shall be delivered on the day o. its date absolutely and at all
events; but that the Company's obligation in this respect is subject,
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morni
day, at rates still lower than standard night message rates,
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 13
words shall be charged for each additional 10 words or less.
ensbusiness

merated above are hereby agreed to:

A. Day Letters may be forwarded by the Telegraph Company as a
deferred service and the trammission and delivery of such Day Letters

is,
:

in all respects, subordinate to the priority of transmission and
Code language
B. Day Letters shall be written in plain English

delivery of regular telegrams.

is not permissible.
c. This Day Letter may be delivered by the Telegraph Company

by telephoning the same to the addressee, and such delivery shall be a
complete discharge of the obligation of the Telegraph .Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

SPECIAL TERMS APPLYING TO NIGHT LETTERS;

In further consideration of the reduced rate for this special "Night
Letter", service, the following special term., in aci:Ation to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such eases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language

is not permissible.

No employee of the Company is luthorized to :;.:.,r2s at foregoing.

Form 1206

UHF

'IS OF SERVICE DESIRED
st Day Message

Letter

WESTERN UNION

Night Message

WV.WW,V!
..7)T

Night Letter
Patrons should mark an X opposite the class of service desired:
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

NEWCOMR CARLTON, PRESMFNT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Donvor, Colo., July 25, 1917.

Piorro Jay, Podoral lionorvo Dank,
1Tori-Yrrk701t7, IT

Tologram recei7ed stop. Chances sujcestod by Swoozy in
organization undoubtedly wico but doubt if Andorson uould a000pt position
suggested and I boliavo he is too important and 0:77.porionood a man to do
Socrotcrial work unless ho io expectoCt to mourn() airootion of aotail work
of distribution otop. Think matter should bo frankly diocu.ssoa with him
stop. I 'ogard his work as Important because of hin firun influence thich
must not bo ovorlooked stop lb occasion to appoint him an officer on

plan of organization auggested stop I am still 7,oluotant to shift
pon whom we must depend to build- up barlr organization ana fear our plant
will suffer if now man ii uabstitutoC. in his pl000.
Benjamin :7.;tronc.
Chg. Benj. Strong - 120 Gilpin St.

AiL

Form 1206
CLASS OF SERVICE DESIRED

'rast Day Message

-tay Letter
Message
-

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

WESTE

WESTERN UNION

TEL

wv-vx

Check

Time Filed

NEWCOMR CARLTON. PREsInRNT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

UNION

cis E

Receiver's No.

COPY OF TELEGRAM SENT.
Denver, Colo., July 26, 1917.

Pierre jay,
Federal Reserve Bank,
New York City.

After careful consideration am convinced it will not be
advisable to submit proposed changes in the committee either at a
meeting or privately. The committee is appointed by the Bank and
I would prefer to follow precedent and make changes if needed
without consulting anyone outside our board stop.
Suggest you tell
Vanderlip matter is in my hands stop. Prefer to retain alternates
as prompting prompt action stop. Don't forget that in the last
analysis we must boss the job,
Benj. Strong.'

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison.
this
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN IUNREPEATED TELEGRAM AND PAID FOR 2,
'at
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyont;
amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the
eeived
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cip.'ter
2,scure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth ol
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any ease where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to alt
the foregoing terms.
No employee of the Company is auchothed to vary the foregoing.

THE WEST:RN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.

NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

Letter shall be delivered on the day o. its date absolutely and at all
events; but that the Company's obligation in this respect is subject.
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary, the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the mcrning of the-ensui
business day, at rates still lower than standard night message rates,

follows: The standard day rate for 10 words shall be charged for the trans,mission of 50 words or less, and one-fifth of such standard day rate for 10
words shall be charged for each additional 10 words or less.

merated above are hereby agreed to:

Day Letters may be forwarded by the Telegraph Company as a
deferred service and the tran3mission and delivery of such Day Letters
is,

in all respects, subordinate to the priority of transmission and
Day Letters shall be written in plain English. Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, arid the Company shall

delivery of regular telegrams.
is not permissible.

c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter", service, the following special term.: in aciaition to those

enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destiDation, postage
prepaid.

Night Letters shall be written in plain English.

is not permissible.
No employee of the Company is luthorized to

Code language

foregoing.

Form 1206

WESTE

CLASS OF SE:WICE DESIRED

47;63stsm.E
,z..:,4

Fast Day Message

Day Letter

k --

2:.

tr,

UNION

Receivers No.

WESTERNUNION

...
Ilk-10!

ight Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL..4......,

,..._

Check

Time Filed

NEWCOMB CARLTON. PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Donvor, Colo., July 26, 1917.

Morro Jay, Foloral licsorvo
Nov oric

It soma to ro vary iaoortont that step° bo tzton nrompt17 to
lino up Arnoricom Bar s Ac000iation national An000lation of Alvortioltr.3
lkeur :limit° ?Ion and otiaor

orcanizations for offootivo

000peration with no. AD thoso orcaninationo not roprosentocl at last

oonformoo thoy ray cot discrantlal If not rnozintlu consaltol.
73aajarain Strorz,

Bor.j 13tronc,
123 Cri11In.

ALL :"ELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison.
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID F011 1,
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same. unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the send,.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UN ION TELEG RAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

SPECIAL TERMS APPLYING TO DAY LETTERS:

ular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00A.M. for delivery on the mc rning of the ensuing
business day, at rates still lower than standard night message rates, as
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10
words shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

in all respects, subordinate to the priority of transmission and

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those

Day Letters shall be written in plain English. Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

delivery of regular telegrams.
is not permissible.

c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to

deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day
D.

Letter shall 136 delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regulai office hours, subject to the priority of the transmission of reg-

enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Form 1206

VVESTEOANT UNION

CLASS OF SERVICE DESIRED
it Day Message

iv Letter

_..

Receiver's No.

WESTERKINION

Ylessage

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

;:crew

Check

Time Filed

NEWCOMR CARLTON. PRESIPFNT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Donvor, Colorailo,

Ju17 27, 1017.

ork Oity.
11131t lottor from ITory London r000ivoa,

Dolittod with

,progroon in arrangin7 organiEntion otop. .oforring my lnot '1o1ogram
-,urrso that no chnngoo in gonoral oommittoo hodisousod until my
atcp. Va:OTI-11,21 1.171.::7golltion of t!:7(, nlololy nffiliatod

1-ititutiono ini2tc:

OUO111iity of unploaLlantnws arloing from
2opponing of that subjoct for diaouoriion otor. An7 chances thought
0.o.-Ar1)1,1 3bou.1
mndc
a7)-lointpont of ohairnan.
Donjanin Ptro1TLc3.

Benj. Strong,
lnc Gilpin t.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison,
this
the unrepeatsd telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR ...
,H
Pone-half
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyon...
amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times di.
.. receiver)
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor forerrors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the slim of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty daysafter the telegram is
filed with the Company for transmission.

Special terms governing the transmission of messages under the classes of message, enumerated below shall apply to messages in each of such respective classes in addition to all

die foregoing terms.

No employee of the Company is authorized to vary the foregoing.

IVESTCRN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
deferred service and the tran3mission and delivery of such Day Letters

is, in all respects, subordinate to the priority of transmission and
delivery of regular telegrams.
Day Letters shall be written in plain English. Code language

is not permissible.
c. This Day Letter may be delivered by the Telegraph Company

by telephoning the same to the addressee, und such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the mcrning of the ensuirt
business clay, at rates still lower than standard night message rates.

follows: The standard day rate for 10 words shall be charged for the trans'mission of 50 words or less, and one-fifth of such standazd day rate for 10
words shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In furtlier consideration of the reduced rate for this special "Night
Letter': service, the following special term., in aci.Ation to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shal

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at desifriation, postage
prepaid.

Night Letters shall be written in plain English.

is not permissible.

No employee of the Company is luthorized to

Code language

die foregoing.

CLASS

SERWCE DESIRED
lay Message

alter

WESTE4,4;1 4 UNION
sxris
TEL
AM

Receiver's No.

WESTERN UNION

Message

Night Letter
Patrons should mark an X opposite the class et service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Colo., July 00, 1917.

Li:Lorre Ja, ,ederal Rooervo
Lev York City, E. Y.
.What you report in your to/ecram ju;:t recolved in:prossar:
very ftvoralply. Dlank you for keerinfT ma pectod.

Time Filed

NEWCOMR CARLTON. PRESMFNIT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Benjamin Stron,:,
.

Check

Benj. 6',,;ron,

C111.-nln,

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TER
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for compari
this
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID I,
- CH
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
1.-- The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram. beyont
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the
received
n
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory p6nalties in any ease where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enamerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.

NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS
A deferred day service at rates lower than the standard day mes-

sage rates as follows: One and one-half times the standard Night
Letter rate for the transmission of 50 words or less and one-fifth of
the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

is, in all respects, subordinate to the priority of transmission and
delivery of regular telegrams.

Day Letters shall be written in plain English. Code language
is not permissible.
c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day
D,

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of theensuint;
business day, at rates still lower than standard night message rates,
follows: The standard day rate for 10 words shall be charged for the tr
mission of 50 words or less, and one-fifth of such standaal day rate for
words shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate t'r this special `q7.41,14.
Letter" service, the following special term: in ad:ition to :those
enumerated above are hereby agreed to:

Night Letters 'may at the option of the 'I eicgraph,ComP
be mailed at destination to the addressees, and the Company shit

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destbaatiorr, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is iuthorized to v.;^-, ihe foregoing.

Denvor, Colorado,

July 31, 1917.

Dear Br. jay:
--TR; onclosed letter from 1,1r. Pinlaw, which I have
acknowledged, oxp ains itoolf.
Many ti
s. to you for your telegrams, advising no
of progreo-dberty Loan matters. I will be back so soon

now hat I

t burden you with a long letter, except to repeat my augg tion about ix. SaS cr. I doubt if it is s good
plan to div
17
ility, as suggested in your
telegrams. Er.
himself any

the routine work to do
sub-a_

ded his work among

other officers, i goulf be bettor. A,

he will ho

able to cover will be the g leral ounervi,,
of the cashiers,
such as he would give to any 1-artmeht. or.ona
I would
like to see watt of the Bpi1cer
o. on the job u tairs,
for I think he is comnotent to handle
Er. Modward owe
about his work, We can talk over any no 'Isar:: changc, in the
Committee on my return.

Best recards to you and all the others.
Paithfully yours,

Pierre Jay, Esq.,

Pederal Reserve Bank,
Bow York City.

Form 1206

SERVICE DESIRED
Day Message

_etter

WESTE

UNION

WESTERN UNION

Night Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TELNEWCOMB CARLTON. PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

IINVW17

Receiver's No.

Check

Time Filed

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

Denvo, Colorado,
Auguot 2, 1917.
2000rvo Bai k,

ow.

Have ono article on mot° ana ocononu about comDlotod
anä w1.1.1 start anothor at onco otop. Hope to brixv: onothing
back wit71 mo.

Bonjamin Strans.

Benj. Strong,
128 Gilpin Si.
(312,7

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TE

/ID

'or this,
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for cornpariso
SUCH.
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FO;
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated, in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth at
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by orfe of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
'deferred service and the transmission and delivery of such Day Letters
li

is,

ular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the ensuing
business clay, at rates still lower than standard night message rates, as

follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10
words shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO "NIGHT LETTERS:

in all respects, subordinate to the priority of transmission and

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those

Day Letters shall be written in plain English. Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

delivery of regular telegrams.

is not permissible.
c. This Day Letter may be delivered by the Telegraph Company

by telephoning the same to the addressee, and such delivery shall be a
complete -discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understandg and agreement that the Company does not undertake that a Day
lkinD.

Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the trarsmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of reg-

enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language

is not permissible

No employee of the Company is authorized to vary the foregoing:

PERSONAL

Auguet 21st, 1917.

t b4.

;Jeer Mr. Jay:

ekx:( PI

Thank you for yours of the: 15th enclosing Mr. C;regory's

rePort, which I am glad to have.
The situatean has changed since you left. The Secretary
of the Treasury and the Federal Reserve Board has called for a meet-

ing of auditors and men in charge of the Liberty Loan detail work to

be held in Chicago next Friday, at which all of these matters are to

be taken up in detail.

We are sending Sailer, Gregory and Reasch

and I am hopeful that something will be aecompliched but regret that
one of the Governors of the reeerve banks ev'member of the Federal

Reserve Board could not be there to captain the job.
The situation seems to be rather complicated in regard to
quarters owing to the question of permanency of the bond delivery
department, but hope to have a decision from V'ashingtor soon and can
then conclude arrangements.

McGarrah offers his building for three

months for a0,000, we to furnish service.

Three months will not be

sufficient and if we take it it should be for three months with an
option of an additional three months.
Thanks for the various suggestions, all of which aepeal
to me, but some of which vie certainly cannot put over.

One possible

Mr. Jay.

8/21/17.

exception is the method of dietributing deposits which we are now work-

Will follow this up but won't bother you with re-

ing on with Crosby.

sults for this is your time to rest and loaf.
Am interested in what your friend in 3ante 4 said about
government deposits.

Have a letter from 'McAdoo asking if we will put Martin Ifsgel
on our committee.

This worries me a bit and I am going to talk with

Crosby about it.

Our Committee might consider it as evidence of lack

of confidence and an arrangement for private reports, which they would

resent.
I am very glad to get a good word about your location

and

wish very much you would write me how you feel it would de for little
As you know, her health has not been of the
the
best and I want to keep her out of'New York elimate. I would send her

Katherine this Winter.

there with a competent governess and am wondering whether she would en-

joy it and get the right things for a little girl of twelve to eat.
We will have a Board meeting on Wednesday as there are a

number of matters to deal with, including the question of another bonus

to the clerks.
Had e delightful Sunday at Teods Hole and next Sunday an

going to do the god-father business for Curtis' baby, end incidentally
visit Colonel House.

The following Sunday and over Labor )ay, I will

non't eorry about us here. We are getting

probably spend at Woods Hole.

along and I think you will be satisfied with the progress when you return.
Sincerely yours,

Pierre Jay, Esq.,

Care Ashley Pond,

Los Alamos Ranch,,

Buckman, Sante Fe County, N. M.

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

Frn"--0AL RESERVE BANK
OF NEW YORK

Sent by

W. U.

(FOR BINDER)

JITA717"

COPY OF TE.L,EGRAM

York. Await 29. 1917.

Pierre Jay',
Los Amos tench,
1,:eu ]:exico.

Telem.anrecoived

nuch distressed at your nous stop Directors today toted

that in their judtpont and in the beet interests of the bark ye' nust mot
consider returning before October fifteenth and it take as much reit beyond
that time as may be neeessary stop

They also voted that no far as they had

jurisdiction and in so far as the bank is concerned you be granted necessary
leave ofAbente on full pay

http://fraser.stlouisfed.org/
B -4
Mom._
Federal Reserve Bank
of St. Louis

oft._ Mr

BMTAIIIN STRONG.

RESERVE BANK
OF NEW YORK

??.

Sent by

(SEND TO FILES)

aricr-

COPY OF TELEGRAM

71en

Mori1, 191,.

Pierre jwit

ton Almon PerrA4

rev axtoo.

Teleqram Medved

Mneh distressed at your sews nton Directors tod.

Votci:

that in their /ndnment :td in the best Interests of the blink yon soot not
coonIder returnlar batten October fifteenth and soot take nn moch rent Wend
that time an sey be nencosnry stop

May also voted that no far nn thsg. had

Imalndintion and In no far an the bonit Is concerted yon be greeted neoenaa17
leave ofibsenno on 1%11 pm
B-5

lbre. Pod. Pen. nk.,

BMTIMITI FtTRIIWO.

(3(

August PA, 1917.

Dear Lir. Jay:

I am terribly distressed iddeed to learn of your illness, and
yet, in some ways, feel that it may be a good thing. 7au are just as
determined and persistent with regard to your own health as I have been

in the past, and you mast not smile at hearing this from me, because at
the present time I am in better condition than

ever before

with satisfaction that I have added forty pounds

Now, about yourself, you

and report

net to my weight.

must absolutely settle down to

de-

termined course of recuperation, abandoning all thought of coming back
here until the doctors say it is absolutely sate and wise.

as to urge that you stay
vigor a minute that

.Pest all winter if necessary.

Do not thiat

it won't embarrass us and cramp us a lot.

you every day, but I am going to see

I go so far

we miss

this organization shaped up tie that

you can do that and than, when you come back, may be I will take another

dose of meckeino myself.

I am not going to

bother you with business in this dotter, but

simply say that all the various matters regarding both the office arrangements Ina

Liberty Loan developments are progressing favorably. 1.,_rrance7

ments about the quarters, the organization and all the other details are
taking shape without unnecessary delays, and the bond issue department

and is cleaning up on the report.
upstairs ha3 new completed deliveries
at neon occaThings are so quiet here that I have been leaving

Pierre Jay, Esq.,
sionally.

-2-

I am doing so to-day in order to go up to Manchester and

spend Sunday with the Curtis's, play some golf, and take part in the
christening of their youngest boy.

I will also visit Colonel House.

Mrs. Jay is on her way to join you, and I am glad of it.
Take care of yourself and have a good tins.
Very truly yours,

Pierre Jay, Esq.,

do Mr. i,shley Pond,
Buckman, Sante Fe County,

New nOxiCO.
BS/RAI

Iliminmemonimimmillellim
.

RESERVE BANK
NEW YORK

Sent by

(SEND TO FILES)
B

union

COPY °Fa...TELEGRAM

.6(

toast a6

/*Jeff, Esq.,
40 AalIo7ond
AtoAsta4 Santo Po (;oun.4.0 now

if.

MAU,

kaop as poatad dboat poor provweso and on 1 Lnt.:; a do Lige
oars Of
(Jur dIrootoil aro ,:ory damply 60000fted about varbmalth and proporie

to dal with the vaaUr with a blea hand so pioaao Any whorl 'on axe. °thorn
Join tn aonding loofa.
Boniawnlia
B-5

F. non. bark
INNMOr" anAvaNr

August 30th, 1917.

Dear Mr. Jay:

I have not written you pertly becauee I have been busy and
partly because I have been away week-ends, etc.

Your telegrams, while reassuring L. a tray, nevertheless have
caused me a good enel of uneasiness Gnd I au hesitating as to the

riedee of sending you any word of the office at all for fear

you

may be induced to rut your mind on it too much insteaa of sticking

to the job of getting well.

I rely on :ere. Jay, however, to pro-

tect youend em delighted ehe is there eith you.
The enclosed letter from 'ereckinridge Jonas explains itself.

If you do not feel like answering it, send it buck to me and I will
answer it for you.
Neva is not particularly imp° !tent. We have concluded a
lease of 50 Wall Street for three months with option for three months
renewal.

Have decided to put the Transit Department in the u;per

floors of thrt building and put the whole Liberty Loan organization

on the fourth and fifth floors of the Equitable. Ibis will meke it
ourior to keep in touch end direct the camneign.

The new bond issue campaign will not start until October 1st

at the earliest - possibly u little later.

I was in Washirgten yes-

terday and talked quite fully with reAdoo about his plans, finding

-2To

Mr. Jay.

Aug. 30, 1917.

as I exoected, that the amount of money required is staggering and
thot $3,000,000,000 of bonds is the smallest amount which they can

possibly afford to offer.
are gradually working up the loen organization through-

out the entire district.

Anderson is away just now but Sweezy is

here on the job and we will hold

a meeting of the

General Committee

next week to push along organization matters only.

While money rates continue about as they have been, de-

mends from the 'est are beginnin to be felt and yesterday our discounts (principally for one day paper of flew York banks), went up
16,000,000.

I don't want to advance rates unless it is necessary

until after the bond bill passes as the Treasury will need about
A300,000,000 every two weeks from now on. We got '4250,000,000 on

the 28th.
Treman mad Kenzel are now the only ones away on vacations
so we are not ae hard pressed

ut the office. Treman will be back in

a fel days.

My beet ragards to you.

sincerely yours,

Pierre Jay, "sq.,
Care Ashley Pond, Esq.,
Buckman, New :exico.

tispcm

September 4, 1917.

Dear Mrs. JAyA,w_m,

This typewritten reply to your note of August 29th is the
best I can do at the moment without delay.
I am delighted to have direct word from you of Pierre's

progress and plans.

We have been very much concerned in regard to

his condition, and particularly that be might be led to doing something foolish in returning to Nev York too soon. Your letter is
very reassuring.
Won't you please tell him that we are getting along fine
in our various-_,iberty Loan plans, for I know that is
mind.

much on his

VS have taken all of 50 Wall Street for three months with

an option for three months renewal, and have moved all of the bank

departments from the fifth floor into that building, giving all of
our space on the fourth and fifth floor to Liberty Loan matters.
This simplifies

our problem very much, and from now on we will build

up the organization right under our own roof where we can watch it
and direct it with the least inconvenience to the bank.

Please tell him that while we have

big undertaking ahead

feel confident of success and am in very fit condition to
do my share. But I would be deceiving you and him if I did not adof

us,

quite frankly that we miss him very minch and are very keen to
see him back again, out not until he is perfectly well.

mit

-2-

Mrs. Pierre Jay

Please give him my love.

With warmest regards to yourself, I am,

Very truly yours,

Mrs. Pierre Jay,
00 Ashley Pond, Esq.,
Los Alamos Iiandh,

3ackman, Santo Pe County, N. Y.

September 4, 1917.

September 7, 1917.

was delighted to have Mrs. Jay's letter and to-day
your telegram advising of your progress.
am not going to send you a long letter this morning

as I am upto

cleaning up a lot of important work and must await

a little more leisure.

Things are moving along all right.
progress in the loan organization.

We are making fine

'_hat pleases me still more,

it looks as though we would get 8i organization of all the banks
in the city of

character to ovoid money troubles this fall.

Treman is here, and after a weekend visit to his family
to-morrow will be regularly on duty.
Sincerely yours,

Pierre Jay, -Esq.,
Los Anomor otanch,

Buekwan, New Mexico
BS/MATT

Seetember 11th, 1917.

Dear Pierre:

It was a tremendous relief to us all to have your letter
You exhibit an humble spirit f'r beyond anything

of f'ieptember 3rd.

that I approached during my exile, and it is a itery good sign.

Pneu-

monia is one thing - TB is quite another, and now that you know absol-

utely

at the difficulty is there will be no doubt of your complete

recovery if you maintain that humble spirit, but don't forget that a

dose of pneumonia is an invitation to later trouble if you don't let
things heel up comeletely.

It is the same as eleurisy in that re-

enect.
/ hed a call from a man from the ranch whose name I do not

recall.

He told me a good deal about your being taken ill and how

ill you were.

We are all mighty glad -rs. Jay took matters in her

own hands and went out to join you and it is aleo rood news to know
that Learned Hand is i4lere.

Good company will be no small pert of

your corvalescence. .

any theeks for your advice about Katherine. I am writing
Palmetto Inn to get particulars about rooms, etc. and looking up the
school matter.

This year, I want Katherine to avoid the eew Yoee

7inter but she is p(rfectly well aside from an old lesion which is
completely healed.

However, 1 want to be or the safe side.

I withdraw my suggestion about thinking too much of

business.

Of course that cannot well be helped but don't let

it stimulate you too much.

I know that Western climate and

those high altitudes have a tendency to stir up one's ambition

and I hope you will restrain it.

rrs. Jay is our reliance in

this matter.
Tarburg was in the office when your letter came so

he, Treman and Curtis are advised as to how you are doing.

that
They

are all delighted.
I will write Breckinridge Jones about state bank member-

ship.

Please do not bother, hover, to answer my letters.

"ihey

will be more gossip than business.

I will see that Treman gets on the job about the A. B. A.
Convention.

My own talk must be confined to the Federal

reserve

banks and war financing and I fear the subject of check collections
will not look well in that dignified company.
had about 400 replies to

Now about news:

Treman's

gold letter - not one of them dissenting and all very satisfactory.
Gold is coming in now faster than ever and the other reserve barks
have been instructed by the

letter similar to ours.

Federal Reserve

Board to send out a

The note iS&Ue of the Whole system last

werk expanded nearly vlop000,000 which shows What can be done.

do not exnect to see this rate maintained.
Davis, (Acting United States Attorney (eneral), hhs rendered an opinion which will be published this week to the effect

-3To

Sept. 11, 1917.

Mr. Jay.

that the Clayton Act cermet be applied to state banks which
apply for membesship in the Federal Reserve Syetem or, stat-

ing it differently, he eoes so far as to say that the Federel Reserve Act affirmatively settles this question when it

states that the powers of state banks derived from the state

of their incorporation cannot be repealed or restricted.
it is reported to me by Uarding.

Sabin and Wallace will be informed

and I will be much mistaken if they do not apply for membership in

the near future.
Curtis is busy on Fold export licenses and I am going

to Washington this afternoon to take up that vole subject with
a number of others who are called to '-ashington for that purpose.
The Trading with the Enemy ct has been favorably re-

ported out of Committee in the Senete.
We have added Wallace and Frew to the Tdberty Loan Com-

mittee but Vogel is out of teen and I have not yet seen him about
his appointment.

'PS hove organized a Committee of Six of which

1 am going to serve as Chairman tc deal with the whole New York

money situation and the enclosed letters and papers outline the

first subject.

This plan was enthusiastically accented by our

Loan Committee but r:oodward is not in agreemert with us and for

a time his views influenced Peabody and Palmer, but the Executive

Committee yesterde finally formally anproved the plan and the

letter.

(I omitted to sey above that the gold wetter is being

-4e
To

Sept. 11, 1917.

Ur. Jay.

energetically followed up and Gidney is watching it closely.

Ile are also following up the matter of Clearing House settlement

and next week I hope to start another discussion in re-

gard to using Federal reserve notes at the Clearing

tiouse and

have e thorough canvass made of Stephen baker's plan for a
clearing house for stock exchange call loans.)

I have good news prom Ben.

llen the

!morictan for-

ces reached Frames, he got very restless - as he described it,
he eas simply a miserable poilu and at the 9me tire was parading
around in an English officers' uniform.
that he is one of six boys selected

He has just written me

from his unit of 5.0 men to

go to a French officers' training school for five weeks' training
before getting a lieutenant's commission and then be put in charge
of either a transport or ambulance unit.

Nevertheless, I expect

hir to be transferred to the Americmd Army as that is to be the
policy if plans in Tashington are carried out.
It looked ae though this week's sale of Certificates

of Indebtedness weuld fail.
was

Yesterday morning the New York total

28,000,000, the rest of the country, A36,000,000.

erty Loan

At the Lib-

Committee meeting the difficulty was disposed of by mem-

bers underwriting $200,000,000.

I have told then in Tashington

that the rest of the country need not expect us to carry

their

load and I think $200,000,000 a generous allowance for New York.

Yr. Baker, as usual, took the lead agreeing to underwrite A200,000,000.

Sept. 11, 1917.

Vre jay.
So much for now.

I will try and keen you posted so

long as you do not write me long letters.

are.

Just tell me how you

And don't be too pleased about that salary business. It

struck me as being absolutely inadequate.

Your share of the

work at the bank is hardly exhibited by the relation of 40 - 60.
Please give my best regards to VI's. Jay and my love

to yourself.
Faithfully yours,

Care Ashley Pond, roe.,
Los Alamos Ranch, Sante 74 County,
Buckman, New rexico.
BS/VCV

rr. Strong was obliged to catch a train
for Weshingtcn before the above wac

finished.

October 9, 1917.

Dear Pierre:

Just a line to say that I am busy as the dickens
and unable to write you as I should like to, but that everything is going all right and we don't exkect you back,
certainly,before the first of November.

Please take your

time and come back ready for the fray and not half ready.
We are delighted to lier such good reports of you
from Mrs. Jay.

Sincerely yours,

Pierre Jay, 1:15(14,

Care of 7r. Robert14 1;erguson,

Tyrone, New Mexico.
B3/RAH

11111r

NEW YORK BOOKING OFFICE

THE RITZ-CARLTON HOTEL

BATH HOUSE IS UNDER THE DIRECTION OF
OR. FRANK HOPKINS, MEDICALDIRECTOR

6, STREET b, MADISON AVENUE

OPEN ALL THE YEAR

CHRISTIAN S. AN DERSEN, RESIDENT MANAGER

ROOMS FOR THE HOMESTEAD HOTEL
MAY ALSO SE RESERVED AT

THE RITZ-CARLTON, PHILADELPHIA

HOT S PR I NG S ,VA.

November 13, 1917

IILING DEPT.
Mr. Pierre Jaw,.

uLc 2 6 1917
Ao#0100#

iile-MErgOlfre Bank

FEDERAL RISVIVR BANK

New York City.
Dear Pierre:

Many thanks for your letters.
attempt long answers.

I won't

The money arrangement strikes me as admirable and I hope Mr. Treman keeps on top of that job
and that you won't burden yourself with all the detail.

About the Goodrich financial plan, confidentially, the spirit of my talk with Wiggins was absolutely
ignored by thOmgentlemen and resulted in a situation
which I particularly cautioned them against.
I will
give you details when I see you and later I hope to induce you to come down here for a bit and take another rest.
I am loafing here mornings and playing golf afMr. and Mrs. Anderson have stayed for another
ternoons.
week, which was a Godsend, and Friday Mr. and Mrs. Pratt,
Miss Dixon, Mrs. Willard Straight and possibly some others
are coming down, so I will get company,
Best regards to all at the bank.
Sincerely yours

lle_);j74

/Op

P.S.

Enclosed is a letter forwarded to me from Mr. Hoover '7
with the padphlets therein mentioned.
Possibly you
will take this up with him advising him that I am away.
Mail of
I think we should comply with his request.

MY. Pierre Jay

-2-

this character should not be forwarded to
and possibly
you will ask Mr. Hendricks to turn it over me
to you or Mt.
Curtis for attention.

Form 1220

CLAS, OF SERVICE SYMBOL
ismge

Day ._etter

Blue

Night Message ; 1

WESTE,am UNION
E

Day Mf ssage

jINION-

, r Njte

Night Letter

CLASS OF SERVICE SYMBOL

If none of these throe symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

PEWCOMB CARLTON, PRESIDENT

Day Le ter

Blue

Night Message

Rite

NL
Night Letter
If none of these three symbols
appears after the check number of

GEORGE W. E. ATKINS, FIRAic,,k7IDENT

words) this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

RECEIVED AT

NOV 26 1917

HL 133 COLLECT

P. J.
HOTSPRINGS VA 1030M pov 24 1917

PIERRE JAY

FEDERAL RESERVE BANK NEWYORK

ITEMAN AND CURTI'S HAVE FULL
OP IT AS A NECE&S,ARY
LOAN FREELY

PARTICULARS REGARDING PRM-. STATEMENT

PART OF THE PROGRAM TO

AT-FOUR PERCENT STOP

UNDERSTAND AND SYMPATHTZE WITH

ESERVE BOARDS FEELING ABOUT CENTRALIZED

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COPY OF LONGHAND LETTER

PALMETO INN
AIKEN, SOUTH CAROLINA

January

, 1917

Dear Ben:

Happy New Year. 1916 is a good one to have over.
will see you back with us.

1917

You did a grand job on the annual report for which I haven't
half thanked you. I am inclined to shorten it up very much and leave
out some or all charts. What would you say to that?
Thanks also for your views on the letter I wrote Treman
about parring Federal Reserve Bank checks. One point there, which you
may not have noticed, and I think is is fundamental) is that the home
F. R. Bank on which the check is drawn should in every case advise the
F. R. Bank which is to buy the check by letter or wire as the case may
require. This puts it back to the principle of the transfer system,
viz, a direct transactions between F. R. Banks and does away any need of
a guarantee or understanding.
You speak of your stenographer being full up with letters to the
Board and Glass and others. If we could have a carbon of some of these,
it would help very much to keep us all au courant with your views and
activities and promote harmony of action between us in relations with the
I'm leaving here today for home feeling very fit, and cough much
Board.
reduced. May stop over Tuesday in Washington to see how the land lies.
Yrs.,
P. J.

Hope you had a fine time with the boys, and sorry the Board matter interrupted so rudely.

FEDERAL RESERVE BANK
OF NEW YORK

PERSONAL

January 6, 1917.

JAN1 0 1917
Dear Governor Strong:

I enclose a memorandum from Mr. Treman which brings up an
subject in which I know you are interested, and I should

itiportant

like before discussing it with Mr. Treman to get your views if possible.

I suppose there will be no difficulty with those firms from
which we have obtained written statements, but what do you think our
attitude should be with regard to Messrs. Brown, Morgan & Seligman?
In talking over the telephone with Mr. Warburg yesterday I
gathered that there might be some difficulty with the proposed change

Mr. Curtis's salary, and suggested that the Board might like to

discuss the matter with our committee which is going to be in Washington next Wednesday.

I am enclosing copy of a letter received from the

Board as well as of my reply, and should like very much to have your
views on the subject before I submit the matter to our board at its next
meeting.
At

our board meeting on Wednesday we postponed until the next

meeting consideration of our member of the advisory council.

The mat-

ter was discussed informally and the desirability of having a member who
could attend meetings seemed to appeal to some of the directors.

jhe others felt rather inclined to proceed promptly to a reelection.

own mind is open on the subject and I should naturally be influenced by
your views.
'Faithfully yours,

Benjamin Strong, Esq.,
Boulevard,

4100 Montview

http://fraser.stlouisfed.org/ Denver, Col.
Federal Reserve Bank of St. Louis

Office Correspondence
To

Mr. Jay

FEDERAL RESERVE
BANK OF NEW YORK

Date
Subject:

Jnr. 2, 1917.

Confidential Reports.

Mr. Treman

From

I would like to discuss with you and arrange some plan
for securing confidential reports of December 30, 1916 from the
various acceptors whose confidential statement we now have.

RHT/VCM

FEDERAL RESERVE BANK
OF NEW YORK

January 16, 1917.

JAN2 5 1111
Dear Governor Strong:

Governor Harding came down yesterday about ten o'clock and
Mr. Delano a little later.

Before Mr. Delano arrived Governor Harding,

Mr. Treman and I had a chat in which Governor Harding explained quite
fully the conditions surrounding the announcement of the Bank of England
matter with the evident intention, as it seemed to me, of setting things
entirely right between himself and Mr. Treman, all of which was accepted
in good part and the desired result, I think, fully accomplished as far
as was practicable.

We are being pushed quite hard by some olive oil importers to
open up negotiations with the Bank of Spain for the earmarking of gold
here, but we have taken the position that the Bank of Spain should initiate the negotiations and have explained this to Yr. Warburg who, however,
seems quite anxious to have something done.

We explained our position

to Mr. Harding and he seemed to approve of it.
We showed our visitors through the bank from top to bottom, ineluding the new vault, and they seemed very well satisfied.

Then we went

into the directors' room and got Mr. Hendricks in and discussed with them

the question of collecting nomember bank checks through express companies,
showing them that we were making all our plans to do so and were onlyawaitirg
their absolute backing before starting it.

They said that they thought

it woqld be advisable on the whole to postpone it until the present Congress adjourned on March 4th so as to see what was done along the lines of
the amendnent permitting nonmember banks to avail themselves of the clearing

FEDERAL RESERVE BANK OF NEW YORK

...

Benjamin Strong,

Esq.,

1/18/17.

facilities of the System, and to see what was done along the line of the

Kitchin bill to permit member banks to charge exchange.

They felt it

would be best not to add any irritant to the present situation until Congress had dealt with these questions.

They said, however, that after the

fourth of March they expected to have the post office order reinstated and
that we would then have the facilities of the post office for our collec-

tions and after that time, assuming no change is made by Congress in the
situation, we would have the full and complete backing of the Board in pushing the matter forward to a completion.

We suggested the desirability of

the Board's taking the matter up with other nearby reserve banks to get
them to make preparations to do likewise so that we would not be the only
ones in this country to bear the inevitable opprobrium, and they said they
would do so.

We then asked Mr. Jefferson to come in and tell them briefly how
he audited the work of the bank.

After that I had some little discussion

regarding Clayton matters with them, and then we went up to lunch.
party consisted of Messrs. Alexander,

The

Woodward, Hepburn, L. L. Clarke,

Thorne, Frew, Martindale, Peabody, Towne, Curtis, Treman and myself.

After

lunch Yr. Delano spoke briefly, stating his belief in the necessity for
close touch between the members of the Reserve Board and the important member bank officers in order that each should understand one another.

Yr.

Harding then began to read the amendments, starting at the beginning of the
bill1 which relates to the abolition of the deputy Federal reserve agent.

Unfortunately they had to go on the Congressional and had to leave a little
before three in order to take it from the Pennsylvania Station.

The con-

sequence was that Governor Harding did not get ta the important amendments
in time to have any satisfactory discussion of them.

In fact, there was

FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

1/18/17.

hardly any time for the expression of views on the part of the bankers.

On the whole therefore, while the conference was good in a personal way it did not accomplish much in the way of an exchange of opinions.

We are all convinced that similar conferences which we should have every
month or six weeks,should always be held in the evening when no one has a
train to catch.

Mr. Morgan in telephoning me later in the afternoon, as

I have written you on the yellow sheet, said that he had had quite a talk

with Mr. Delano a few weeks ago on the train as to the desirability of arranging such conferences.

He felt that unless it could be done the bank-

ers and the Board would get so far out of touch as to lead to an undesirable
situation.

When Mr. Treman and I were talking with our visitors in the morn-

ing

Governor Harding asked us our views as to the question of having lower

rates for short time maturities than for long time maturities.

He said

that Mr. Warburg had a feeling that among the European banks the longer
maturities went at the lower rates.

I said that my understanding was that

the rates at which the different maturities went depended on people's judgment as to whether money was going to be cheap or dear.

If they thought

money was going to be dear they would take the short maturities at the lower

rate.

I said that I felt that in our rediscount rates, just at present at

last, we should not attempt to vary them to meet these fine points, but
that where we would have to exercise our judgment as to rates would be in
the open market purchases of bankers' acceptances.

This expression seemed

to agree with his view of normal-banking practice, and I wish you would give
us your views on the subject.

Thus far, with the idea of keeping as near

the shore as possible,we have not attempted to discount the future of the

money market, but have in a rather rigid way bought acceptances of shorter

FEDERAL RESERVE BANK OF NEW YORK

maturities at the lower rates.

Benjamin Strong, Esq.,

1/18/17.

I gathered that Mr. Harding's question

arises out of the suggestion of Er. Warburg that we should consider reversing the practice.

While the conference did not accomplish as much as we had hoped
in the way of a discussion of the anendments, we all feel that it was a

step in the right direction and are firmly convinced that we should continue such conferences although under more favorable conditions.
Very truly yours,

Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Colorado.
PJ/ BAH

FEDERAL RERE

JAN2519'.:

OF NEVOAPieJ,FtSii

&ie
41/teu-e4.-t.< 4.

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1L14

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44e,

COPY OF LONGHAND LETTER
Received B.S. Jr.
Jan. 25, 1917
FEDERAL RESERVE BANK OF NEW YORK

January 18,

1917

Dear Ben,

Just a line of gossip. We learn from Harding that Starek is to be
replaced as Chief Examiner by Malburn, and that it will probably happen
very soon. Starek will then be removed as Director. Isn't that a wonDelano said Warburg was discussing John Bassett
derful piece of news?
Moore as Starek's successor in the Board. Somehow it doesn't ring just
right to me. How does it strike you? Warburg has never suggested him to
me.

As to the Bank of England matter, we gather that it was really international pressure that led to the announcement. Curtis will tell you all
the details we have heard when he sees you, which will be better than my
writing you. I wieh I could cone out too, as you have suggested, but fear
that is out of the question as I've been away almost as much as you since
July.

George Roberts' report on you, and your letters with talk of going
abroad this summer are all to the good. Keep it up.
Everything here is running along nicely as far as I can see. I
agree with you about visits of N. Y. bankers to the Board, but we here
had nothing to do with the Kent-Hemphill visit. I suggested it but on
your adverse suggestion dropped it, and Hemphill later called up Harding
who invited him to come.

With very best regards,
Yrs.
P. J..

FEDERAL RESERVE BANK
OF NEW YORK
January 19, 1917.
Dear Governor Strong:

Very many thanks for your letter of January 15th and the telegram relating to the election of the member of the

Advisory Council.

believe Mr. Treman has advised you of what transpired at the committee
conference in Washington.

In fact, Mr. Treman has been writing you so

regularly of late that I have not written much, feeling there was no
point in duplicating information.

There is one matter I do think of, and that is the expense of
all the telegrams you have been sending from time to time, to me while I
was in the South and to Washington which you have not sent "collect."
You must have quite a bill stacked up against us, and I trust you are
keeping careful track of this and billing us at intervals.

Won't you

report on your practice in this respect the next time you write'?

This morning at our meeting we discussed the advisability of
preparing a plan in the near future for acting as custodian for the securities of country member banks, the general sentiment being that we
should perform this service for them without charge in view of the fact
that it has always gone with their reserve balances and without specific
charge.

If you have any views, favorable or unfavorable to the plan,

a suggestion as to how or when we should advise the member banks, won't

-ou dictate them some day and send them along.

We hope to have a plan

ready for consideration by the end of next week.
Faithfully yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Dolorado.
FJ/111,11

LwA)

Form 1204
SERVICE SYMBOL

Message

y Letter
Message

Blue

Nita

NL
Night Letter
If none of those three symbols
aPpears atter the check number of
words) this is a day message. Otherwise its character is indicated by the

WESTE

ere,

UNION

WESTERN UNION

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11.14,1
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N EWCOM B CARLTON. PRIZSIDENT

symbol appearing after the check.

CLASS OF SERVICE

SYMBOL

Day Message

Day Letter

Blue

Night Message

Nita

Night Letter
NL
If none of these three symbols
appears after the check number of
words) this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

RECEIVED AT 17 E. PIKES PEAK AVE., COLORADO SPRINGS, COLO.

A91D BW 70 BLUE 3 EXTRA

W NEWYORK NY VIA DENVER COLO JAN 23 1917
BENJ STRONG
..11.

4. k..0

ANTLERS HOTEL COLOTRINGS COLO
IN YOUR LETTER DEC FOURTH TO DELANO YOU SAY THE SYSTEM IF PROPERLY
FORTIFIED WITH GOLD COULliRELEASE FIVE HUNDRED MILLIONS TO EUROPE

STOP AGAINST WHAT WOULD THIS BE RELEASED STOP WOULD IT BE REDISCOUNTS
BILLS PURCHASED NOTE REDEMPTIONS OR GENERAL CREDIT SHRINKAGE OR
ALL OF THESE STOP SHOULD APPRECIATE NIGHTLETTER AS TRUST CO
LUNCHEON ADDRESS COMES TOMORROW AND 'SHOULD LIKE TO BE SURE OF MY
GROUND
PIERRE JAY
12 56PM

Misc.

PJ/R4R

FEDERAL RESERVE BANK
OF NEW YORK

7estern Union
10:15 a.m.

(TO BE MAILED)

CONFIRMATION OF TELEGRAM

c:g(

We have today telegraphed you as follows :

January 23, 1917.
3enjamin Strong Esq
4100 Ilontview Boulevard
Denver Colorado

In your letter December fourth to Delano you say the system if properly fortified
with gold could release five hundred millions to Europe Stop Against what would
this be released Stop 7ould it be rediscounts bills purchased note redemttiens
or general credit shrinkage
these Stop Should appreciate night letter
as trust company luncheon address ..-ones tomorrow and should like to be sure of my
ground

or all of

Pierre Jay
Chge. Fed. Res. Bank
B-2

120 Broadway

FEDERAL RESERVE BANK
AaNEW YORK

JAN27131/

January 24, 1917.

Dear Governor
I am extremely obliged for your telegram received this morning about methods of releasing gold, which entirely confirms the view
that I had held.

I am enclosing a copy of the talk in the shape I presented it
If you get time to look it over I should appreciate it.

to-day.

The

point of view from which I should particularly like you to look it over

would be to see whether or not it is worth publishing, either in its
present or in some changed form which you might suggest.

Several peo-

ple after the meeting asked if they could have copies of it when published.

I said that I did not know whether it would be published or not.

Personally, I feel as though it were an important enough subject to publish, but it is so largely a plagiarism from your works that I think you
ought to be the one to say.

The news slips to-day give word of the removal of Mr. Starek
as Chief Examiner and the appointment of Mr. Malburn in his place.

One

of the names Mr. Warburg is considering is T. F. Whitmarsh, director of
the Irving Bank and director and the active member of Francis H. Leggett
& Company.

Woodward, I believe, thinks very highly of him.

know anything about him?

If so, drop me a line.
Faithfully yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

PJ/RAH
http://fraser.stlouisfed.org/
enc.
Federal Reserve Bank of St. Louis

Do you

FEDERAL RESERVE BANK

OF NE6 ORK

February 2, 1917.

FEB2 1 1917
Dear Governor Strong:

Replying briefly to your telegram of January 25th, I understand
from Yr. Warburg that some suggestions have been sent to Spain through the
State Department and our minister there.

1(1

I think that they mny have origin-

ated in the Reserve Board, but I was assured by Mr. Warburg that the repre-

senttions were merely informal and intended to interest people in Spain,
and did not in any way commit us.
I have just talked with Mr. Malburn, with Whom Mr. Treman and I

were lunclig, about the practice of the Assay Office in regard to re-melt
charges, and he suggests that we should take the matter up with Mr. Bovee
here, and thinks there should be no difficulty in arranging it.

He is under

the impression that this is frequently done where the bars have only been
out a short time.

I hope to go over to Yr. Bovee's this afternoon.

Mr. Ealburn tells me that as far as he knows there was no large
11(1/

volume of greenbacks presented during 1914; consequently, there was no nec-

essity for drawing on the enetrssarre fund.

Nor does he think there was

any large volume of silver certificates presented for redemption.

Warburg

has suggested some revision of my paper in this respect, and in view of

what Mr. Malburn says it seems as though, as a matter of tact if not of
fact, we should probably speak a little more cautiously on the position of
the Treasury.

We talked with Mr. Malbarn about cooperation between this bank
and his department, and he assures us that we shall have it.

He also agreed

to bring in his country examiners from time to time to spend an hour or two

FEDERAL RESERVE BANK OF NEW YORK #2

Benjamin Strong, Esq.,

2/2/17.

with us in talking over the system and generally putting them in a position
to discuss it in an intelligent and friendly manner with country bankers.

At the next favorable opportunity we will,bring up with him the
question of getting more definite credit information and impressions concerning country banks.

I did not think it was advisable to bring this up with

him in our first conversation.

We have written the Bank of Montreal Along the lines suggested in
your letter of January 18th to Yr. Treman.
I notice what you say in your letter of January 26th about the rear
door and the fifth floor exit.

I be.lieve that the one we will come to even-

tually is the fifth floor exit and that we might as well get prepared for it
soon and develop the proper organization there.

Mr. Sailer is urging that

we should take the space back of our teller's space.

Our board is reluctant

to do so on account of the expense of 42,500. for a very dark piece of space.

We are negotiating with the building to make a special agreement in connection with the lease of it at a lower rental.
I was mighty glad to learn that you had finally arranged to go down
to Ihenix.

I have a very old friend living there, the Right Reverend J. W.

Atwood, Bishop of Arizona, and know that he will be glad to do anything in
his power for you by the way of putting you in the way of people or things
in Arizona, and I am going to telegraph him to-day to be sure to get into
communication with you when you arrive.

He is a most friendly person, some-

what talkative and with rather a peculiar way of talking at that, but a mighty
good hearted fellow, and ready, I am sure, to do anything for you.

Hoping you will have a bully trip and a respite from the more northerly climate, I am,

Faithfully your

FEDERAL RESERVE BANK OF NEW YORK

P. S.

Benjamin Strong, Esq.,

2/2/17.

By the way, Aiken is to be in town next Tuesday, and I

understand is going to have a chat with Mr. Woodward and Mr. Peabody.

Benjamin Strong, Esq.,
C/o Adams Hotel,
Phenix, Arizona.

PJ/RAH

CLA',. OF SER

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STEuti, UNION
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NEWCP.R CARLTON. PRESIDENT

wise its character is indicated by the

symbol appearing after the check.

Mir 11
Form 1264

CLASS OF SERVICE SYMBOL
-

Day Message

Day Letter

Blue

Night Message

Nile

NL
Night Letter
If none of these three symbols
appears after the check number of
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symbol appearing after the check.

RECEIVED AT

NL
Q

STRONG

NEWYORK FEB 3 1917
ESQ

CARE ADAMS HOTEL PHOENIX ARIZONA
C RELATIONS SEVERED STOCKS STRONG ACCEPTANCES QUIET AT THREE

UP OFFICERS WELL SATISFIED WITH SITUATION IN BANK ALL URGE
0 THINK OF RETURNING WILL SUMMON CURTIS ONLY IF NECESSARY SEE
IEND BISHOP ATWOOD IN 'PHOENIX WHO WILL GLADY ;i1VE YOU ANY

E NEEDED IN ARIZONA
PIERRE JAY

FEB 4 54uAM

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If none of these three symbols
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RECEIVED AT

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NEWCOMB CARLTON, PRESIDENT

symbol appearing after the check.

CLASS OF SERVICE SYMBOL
Day Message

NL
Night Letter
If none of these three symbols
appears after the check number of
words)this isa day mcsmge. Otherwise its character is indicated by the

symbol appearing after the check.

Q NEW YORK 138P FEB 5 1917
:14!

'BEN%) STRONG

CARE ADAMS HOTEL PHOENIX AZ
MONEY THREE
ONE THIRTY STOP PURCHASED BILLS MODERATELY AT THREE CALL
TIME AND COMMERCIAL PAPER FOUR EVERYTHING VERY QUIET

PIERRE JAY
1PM

Form 1204
CLASS OF SERVICE SYMBOL

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NEWCOMB CA RLTON, PRESIDEN:

symbol appearing after the check.

appears after the check number of
words)this isaday message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT

64 24
Q NEWYORK 544PM FEB 5 1917

BENJAMIN STRONG

d's

, CARE ADAMS HOTEL PHOENIX AZ

HIVE THIRTY STOP MARKET CLOSET

STRONG BOUGHT SIX MILLIONS BILLS

ISSUED THREE MILLION NOTES EVERYTHING

QUIET EXCEPT SLIGHT UNEASINESS

,MONG FOREIGNERS HAVING INTEREST ACCOUNTS

PIERRE JAY
527PM

Form 1204
9F SERVICE SYMBOL

Message

Letter

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Night Message

Nile

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If none of these three symbols
appears after the check number of
words) th is is a day message. Otherwise its character is indicated by the

WESTE
WESTERN UNION

TEL

A34 Q

NEWCOMB CARLTON, PRESIDENT

symbol appearing after the check.

RECEIVED AT

UNION

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
If none of these three symbols
Night Letter

appears after the check number of
words) this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

16
CO NE WYORK

1120A FEB 6 191 7

BEN J STRONG

CARE ADAMS HOTEL PHOENIX AZ

ELEVEN THIRTY STOCKS STEADY AND DULL PRIME BILLS SETTING THREE
AND ONE QUARTER EVERYTHING GENERALLY QUIET

PIERRE JAY
101 5AM

Form 1204
CLASS OF SERVICE SYMBOL

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words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

CA RLTot4, PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
Night Letter
If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

RECEIVED AT

B51GSZ

36 NL

NEWYORK FEB 7 1917

BENJAMIN STRONG

49_
HOTEL ADMMS PHOENIX AZ

,
.

STOCKS CLOSED OFF ONE TO TWO POINTS STOP MARK AND KRONEN EXCHANGE

STRONG PROBABLY DUE TO SWITCHING FUNDS TO GERMANY BOUGHT FIVE
MILLION BILLS THREE TO ONE QUARTER SAVINGS BANK WITHDRAWALS DECREASING
MATTERS GENERALLY CONTINUE QUIET
PIERRE JAY:
FEB

55OAM.

15
CLASS OF SERVICE SYMBOL
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WESTEION
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AM,

NEWCOM B CARLTON. PRESIDENT

Form 1204
CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

Night Letter
NL
If none of these three symbols
appears after the check number of
words)this is a day message.Otherwise its character is indicated by the

symbol appearing after the check.

RECEIVED AT

A16 GSMO 14

Q NEWYORK NY 1047AM FEB 9 1917
BENJAMIN SRONG

CARE ADAMS HOTEL PHOENIX AZ

YESTERDAY BOUGHT FIVE MILLION BILLS
RATES UNCHANGED EVERYTHING QUIET

PIERRE JAY

953AM

SAME RATES STOCKS STEADY MONEY

Form 1204
SERVICE

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N EV/COME; CARLTON. PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

Night Letter

If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT

Al 3bS

38 BLUE

Q NEW YORK 225P FEB 10 1917
3EN,.1 STRONG

24
ADAMS HOTEL

PHOEN IX AZ

QUIET AGAIN TODAY STOCKS Fl RM BANK STATEMENT SHOWS FOLLOWING

DECREASES IN MILLIONS DEPOSITS ONE HUNDRED LOANS EIGHTY EXCESS
SERVE ONE HAVE NO FURTHER TELEGRAPHIC ADDRESS HAVE BEEN SENDING

'AIL TO DENVER MONDAY HOLIDAY BEST REGARDS TO YOU BOTH
P JAY
136PM

FEDERAL RESERVE BANK
OF NEW YORK
February 15, 1917.

?Lk
FEB21 1,;,1
Dear Governor Strong:

I do not seem to have any acknowledgment stamp on your letter
of January 27th making a number of most valuable suggestions in connection
with my talk at the Trust Companies lunch.

I have been spending tht6morn.0--

ing, the first opportunity I have had, in going over it and putting it in
shape for the printer to whom it will go to-morrow.

At the end of the latter you speak about Malburn and cooperation
Yr. Treman and I lunched with him promptly after he came over

with him.

here and the next day asked him to give us confidential advice about those
of our members who needed special looking after.

He suggested we write him

a letter to that effect, which we did, and which I presume he forwarded to
Washington.

Yesterday he telephoned that he was ready to give us informally

such information as we desire.

It really looks like the beginning of a new

era.

I send you a copy of a letter Mr. Starek wrote me which was read
at the directors' meeting yesterday.
ter.

We all thought it was a ver:, nice let-

kr. Locke made a great point of his view that Er. Starek should have

resigned to us and not to the Federal Reserve Board.

The consequence was

that our board took Mr. Starek's letter as a resignation and voted to accept
it, with Messrs. Peabody and Jay refraining from voting.
I believe Mr. Treman has sent you a copy of the final report of the
committee on Federal reserve bank drafts.

Woodward has been corresponding

with Harding about it and I think Harding is coming around to the point of
view expressed in it.

Woodward also had Delano at his place in Maryland on

FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, ESq.,

2/15/17.

Sunday afternoon and feels that he made considerable headway with him also.

Mr. Forgan was in the office this afternoon and I gave him a copy
of the report which he is going to read over and discuss with us to-morrow.

He and Woodward have been corresponding on the matter and I think Mr. Forgan
agrees with our point of view.

He is thinking of getting the Advisory Coun-

cil to take the matter up with the Board.
We are coming on nicely with the private bankers' statements.

All

of them are coming across except J. P. Morgan & Company, to whom we have not
yet suggested the matter, but Yr. Treman or I will do so informally the next
time either of us see Mr. Morgan.

I am not writing you much these days because Yr. Treman, I believe,
is getting off a daily letter to you, and in his careful way is probably covering all the news.

I understand that we are to have Curtis back here next Monday, which
will be pleasant.

I was mighty glad to hear from him last week that he found

you in such good shape.
Faithfully yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

PJ/BAH

FEDERAL RESERVE BANK
OF NEW YORK

New York City,
February 12, 1917.
Hotel Collingwood

Yr. Pierre Jay,
Chairman, Federal Reserve Bank,
New York City.
My dear Mr. Jay;

As a matter of formality permit me to record the fact that on
January 31st I sent my resignation as a director of the Reserve Bank of
New York to the Federal Reserve Board at Washington.

In so doing I

conformed to a rule of the Reserve Board applying to chief national bank
examiners serving as Class C directors of Reserve banks;

this rule re-

gards such examiners practically as ex-officio directors whose service
as directors expires automatically with their service as examiners.

tenure of office as chief examiner having ended by reason of action taken
by the Comptroller of the Currency, I felt it incumbent upon me therefore
to

resign as a director, and my resignation has been accepted.
In thus concluding my service as a director of the New York re-

serve bank I take pleasure in saying that my association with you and other
fellow directors has been most agreeable and gratifying.

My esteem for the

gentlemen constituting the board is enhanced by my knowledge that they are
doing a great and useful.work in a publics spirited and unselfish way. 71hile

we have not always been in entire accord in matters involving the development of the new bancing system, I consider it a tribute to the capacity and
breadth of view of the directors that our occasional divergent views did not
affect the progress or interests of the bank.

With personal regards to you and other members of the Board, I am,
Sincerely yours,
(S igned)

Charles Starek.

49 EAST SIXTY-FOURTH STREET

dTh(A.A.k

1,r-e

atAt-

Vtet,u

/uk-i)

ir-et

tiar

ar.4
A

C 0 P Y (handwritten letter)

49 East Sixty-Fourth Street

Feb 22nd.

Dear Governor -

We had a light attendance at the office yesterday, Curtis, Kenzel +
Hendricks holidaying + Cann called to Montreal where his wife has been having an
operation which he wires was successful. Woodward + I lunched with Malburn + he says
they will probably make definite provision for the 3's in a week or 10 days. Boston
is following Richmond's example in buying bonds from members + Warburg + Woodward
think we'd better follow suit. Otherwise our members will get the worst of it.
The Chronicle on Saturday returned to the dlaim[?] again, on the basis of my report,
as I felt sure when writing it they would. But they have gotten vicious + they end
the first paragraph by saying that after reading the report it is easy to see where
the policies of the Board come from + which F.R.bank dominates the system: Warburg
is trying to stir up interest in trade acceptances + has gotten Boston + Phila. to
reduce their rates to 3% for trade acceptances + wants us to do likewise. I told
him I'd take it up with the board but only after talking the matter over with various
merchants + seeing if we can get any movement started.
I am going to try to be in
Washington on Feb. 28 so as to see what is going on + talk things over with Warburg
before he goes.
From the interior of the bank there's nothing to report. The bids
on the vault will be in tomorrow. Best regards

(signed)

t.J.

FEDERAL RESERVE BANK
OF NEW YORK
February 23, 1917.

FEB2 6 1917
Dear Governor Strong:
I have just received your letter of February 19th and only learned
the day before yesterday from Curtis that you did not know who had been appointed in Mr. Starek's place.

I had supposed that Mr. Warburg had written

you of this arpointnent from Washington.
I was advised of the election by telephone the day it was made but
as Mr. Saunders was traveling in the South, the Board did not receive any

word from him for ten or fifteen days later.

In fact, I think it was just

before our last board meeting that they received his acceptance.

He is a

man about fifty years of age and his affiliations in the Directory of Directors are as follows:

A. S. Cameron Steam Pump Works, Dir.
American Institute of Mining Engineers, Pre. and Dir.
Edison-Saunders Compressed Air Company, Dir.
Ingersoll-Rand Company, Chairman of the Board of Dirs.
Ingersoll-Sergeant Drill Company, Pres. and Dir.
International Harvester Company of New Jersey, Dir.
International Harvester Corporation, Dir.
International Pneumatic Tube Company, Dir.
Peoples Motional Bank of Westfield, The, Dir.
Rand Drill Company, Pres. and Dir.
I understood from Mr. Warburg when I was in Washington on Tuesday
that he has been quite a friend of the administration.

Secretary McAdoo

met him at the time of the Pan-American conference, when Mr. Saunders was
chairman of one of the Central American groups.

Mr. Woodward meets him as

a fellow director of the American International Corporation and says that he
is an interested and rather talkative director.

At our directors' meeting

which he attended last week we naturally heard little or nothing from him

FEDERAL RESERVE BANK
OF NEW YORK
February 23, 1917.

FEB2 6 1917
Dear governor Strong:
I have just received your letter of February 19th and only learned
the day before yesterday from Curtis that
pointed in Mr. Starek's place.

you did not know who had been ap-

I had supposed that Mr. Warburg had written

you of this appointment from Washington.
I was advised of the election by telephone the day it was made but

as Mr. Saunders was traveling in the South, the Board did not receive any

word from him for ten or fifteen days later.

In fact, I think it was just

before our last board meeting that they received his acceptance.

He is a

man about fifty years of age and his affiliations in the Directory of Directors are as follows:

A. S. Cameron Steam Pump Works, Dir.
American Institute of Tlining Engineers, Pre. and Dir.
Edison-Saunders Compressed Air Company, Dir.
Ingersoll-Rand Company, Chairman of the Board of Dirs.
Ingersoll-Sergeant Drill Company, Pres. and Dir.
International Harvester Company of New Jersey, Dir.
International Harvester Corporation, Dir.
International Pneumatic Tube Company, Dir.
Peoples National Bank of Westfield, The, Dir.
Rand Drill Company, Pres. and Dir.
I understood from Mr. Warburg when I was in Washington on Tuesday
that he has been quite a friend of the administration.

Secretary McAdoo

met him at the time of the Pan-American conference, when Mr. Saunders was
chairman of one of the Central American groups.

Mr. Woodward meets him as

a fellow director of the American International Corporation and says that he
is an interested and rather talkative director.

At our directors' meeting

which he attended last week we naturally heard little or nothing from him

FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.

2/23/17.

and. he was obliged to leave before we adjourned on account of another meeting.

He lives out in New Jersey and it is my impression that the IngersollRand Works are out there also.

We had rather recommended R. H. Williams of Williams & Peters as
our first choice and from what Warburg tells me it seemed to lie between him
and Saunders, but T7illiams being a Republican and Saunders, a friend of the

administration and, I presume therefore, a Democrat, the selection was a
natural one.

I had not heard before it was announced that Saunders was be-

ing considered.

On the 21st I had quite a long conference with Mr. Malburn, who
has received authority from the Comptroller to give me information concerning any bank in the district which Mr. Treman or I ask about.

He is inclined

to be in every way cooperative but wishes to be rather conservative about progress until he finds out how the land lies.

He also thinks that he will make

better progress with the Washington end if he advances cautiously.
this is good judgment on his part.

I guess

The reason for the conference was with

regard to the National Butchers & Drovers Bank of this city, which is discounting quite heavily with us and with respect to which the Department feels some
concern.

7r. Malburn nromised to consult with his associates and let me

know shortly what other banks there were in the district with which they felt
we should proceed with caution.
Faithfully yours,

/1)
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

PJ/CEP

Form 1201
"CERV /GE SYMBOL

Blue
-

tv,

Nite
NL

If none uf these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character 's indicated by the

symbol appnarinc after the check.

WESTEkti5LP. UNION
WIT1
TEL
AM
WESTERN UNION

114

NEWCOMB CARLTON. PRESIDENT

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

MEWED AN 915-919 SEVENTEENTH ST., DENVER, COL
O

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Rite

NL
Night Letter
If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

ALWAYS
OPEN

OF TELEPHONED TiL
21 DUPLICATE

'to

FY NEWYORK NY 659P FEB 26 1917

.1,wirr

410aofIcs
1404*.tVIEW BLVD DENVER COLO

CE APPLICATION APPROVED TODAY PUBLICATION THURSL.,Y PLEASE NIGHTLET1%

STING GROUNDS FOR REQUESTING TIORIITO WAIVE FIFTY CENT GOLD
.

CHARGE

MARI

PIERRE JAY
522PM

1917

4-647

23 NY. N. 118 N. L.

8:19pm.

CB., NEW YORK, Feb. 28, 1917

Banjamin Strong, Esq.,
4100 Montview Blvd. Denver, Col.
Thanks your telegram

antioipate no

difficulty with

Remelt charge

are discussing fifty cent charge with Assay office and Roberts

making much progress stop. Can you

furnish

No mention of it

not

any reason based on Broad

policy to advance for Remission. of this charge other

to escape it. stop.

but

and

than naturardesire

yours to Harding dated January

trenty sixth stop. Have made formal application for two matters

mentioned

therein stop. Secretary inquires whether if assay office would reestablish
old rule advancing

only

ninety per cent on gold deposited for assay we

would agree to advance the percentages assay office now advances so that
public would not be affectedstop.

What do you suggest we reply.

.Pierre Jay.

MARI

1917

POSTAL TELEGRAPHCOMMERCIAL CABLES

OPERATOR'S NOTATIONS,

TIME SENT, ETC.

A6L:BKA

11314'..JAPAN

w ;Tows_st

VANcouvER-

PACIFIC

OCEAN

EWFOONDLANO

SAN FRAN ilSCO

YOKOHAMA

'ORti

MIDWAY

BERmunA

ATLANTIC

OCEAN

BT. VINCENT

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED)

TRANSMITS AND DELIVERS THE WITHIN NIGHT LETTERGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
The Company will receive, not later than midnight, NIGHT LETTERGRAMS, written in plain English, to be transmitted only for delivery on the morning
of the next enraing business day, at rates still lower than its standard night message rate, as follows:
The standard day rate for a ten-word day Message shall be charged for the transmission of a NIGHT LETTERGRAM, containing fifty words or less, and
one-fifth of the standard day rate fer a ten-word day message shall be charged for each additional ten words or less in sucIfINIGHT-LETTERGRA M.
To guard against mistakes or delays, the sender of a menage should order it REPEATED; that is, telegraphed back to the originating office for
comparison. For this, one-half the unrepeated message rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED
MESSAGE AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the message and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED message, beyond the
ammint received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED message, beyond
fifty times the sum received for sending the same. UNLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the
working of its lines; NOR FOR ERRORS IN CIPHER OR OBSCURE MESSAGES.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this
SiEATED message rate, at which amount this nieseage, if
message, whether caused by the negligence of its servants or otherwise, beyyn d
' r II
On at the time the message is offered to the Company for
sent as a REPEATED message is hereby valued, unless a greater valik
'Such va u
transmission, and an additional' sum paid or agreed. to be paid based
one-tenth of one per. cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this message over the lines of any other Company when necessary
to reach its destination.
Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge willbe
made to cover the cost of such delivery.
ACCVALdia. atspits_truxnitting, es; _sad it,any,
resen
es4gOittachaWo Illie_Qprunany until HA&
I. No
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AlaTeriegtEktanosUati oisotizeN
message is Sent to rim ,h
Dr-M. EromPffffra ffiEslieflWeWhfflats tffffellirthe seiWilre
instructions regarding it to the Company's agent in its said office.
S. This Company shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within thirty days after the
message is filed with the Company for transmission.
In further consideration of the reduced rate for this special "NIGHT LETTERGRAM" service, the following special terms are hereby agreed to:
(a) NIGHT LETTERGRAMS may at the option of the 'Telegraph Company be mailed at -destination to the addressees and the Company shall be deemed to
have discharged its obligation in such cases with respect to delivery by mailing such NIGHT LETTERGRAMS at destination, postage prepaid.
-70-o01 MS shall be written in plain English. Code language is not permitted.
all b9. binding upony
07irEe jeTce.ivverAans,Nr. veT11,TaEs bth,c.e.sbenGdoerINofGthis NIGHT LETTERGRAM.

meta

PO S TAL

rno1-4cPDs
2, No
,CIFIt
,

VICE-PR.EST.: AND GENERAL,.MANAGER.

VANCOUVER

filii;PAN"

.110-1; 8YOKOHAMA

1:1
TA4,0 dir
CiQA N5

fr''.4) 040

4.11,..,P*4tiico

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1JI7AT.
atottr

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,0 ecTAI/11011 T,01

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE ViORLD.

CHARLES P. BRUCH,

VICE-PRESIDENT.

RVICE IN THE WOR

°icT 1W
OCEAN

HONOLULU

MANILA
CUAM

ETC.

ql..A.RENCE H. MACKAY.,,stcstosim

AT. VINCENT

013 04,A.i.

501/TH 11114)
AMERICA

0 0.1)

EkTIIRS OVE TWO-TAIRDS1 ff,THE WAY AROUND THE,EARTH.

THE POSTAL TELEGRAPH-CABLE COMPANY

(INCORPORATED)

TRANSMITS ANpioRgegns. THE WITtlIN
,
,, NIGHT LETTERGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: M.4111
.

32... 007

'$7 4'

The Colo,uity will receive, not later I has midnight, NIGHT 1.11.1"1.1,121iRAMS, written in plain English, to be transmitted only for delivery . the morning
of the next einl.ling business (lay, at rates still lower than its standard night message rate, as follows:
The standard day(sitfiititetto da ni e sl*,1W,
tiittimisama.41,NIGHtLraf.,FOCAMtning
Itgaiolre.simizito
one-rift/1K ,ffiteffilittar
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To guard against ma ates or e a .., The [ten er oF777,1r8 ff -1.= on Fr it IHIPEA 1.1)7 i at is, 'le egraphed ite TtoLET,,
the originatilg office frr
compar ison. For this, one-half the unrepeated in easage rate is charged in a ddition.
otherwise indicated on its face, THIS 18 AN UNREPEATED
MESSAGE AND pm!, FOR As Stull, in ,,insideration whereof it is agreed between dieUnless
sender of the message and this Company as follows:
1.
The
Company
shaLkariabW
tontnistakett
mudelayAlis
the
tilltlisrnitisleopfot
arty*,
ofsfortdk-delivery,
of any UNREPEATED message, beyond the
amount received for effIF , fkilb seleftlf*.e0gRIIItes jil.adfftifi in ti,..gotilthritill5rt.or deliVery, or for non-delivery,
any-REPEATED message, beyond
fifty times the sum received or sending the same. UNLESS SPECIALLY VALUED; nor in any case for delays arisingoffrom
unavoidable interruption in the
working of its lines; NOR FOR ERRORS IN CIPHER OR OBSCURE MESSAGES.
2. III any ewnt
es for any mistakes or delays in the transmiasibn or delivery, or for the non-delivery of this
message, Wlittheff at
b $
.7oo f i
.
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otherwise,
se, beyond fifty times the REPEATED message rate, at which amount this message, if
sent as a ntrEA,m
esdak , s icreby val . , unless a greater
eater value is stated in writing hereon at the time the message is offered to the Company for
transmission, and aim additional sin it

thekryanitlIT*Viab

naid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
The COInpany is Imreby made the agent of the sender without liability, to forward this message over the lines of any other Company when necessary

to reach its ilesAniatilm,
4.
Medbages will, be

_:et '. I I' f
.. Wissiehed 0*.-ee deLityiled$
within..
As of the terminal office, For delivery at a greater distance a special charge will be
made to cover the cost of such delivery.
I. No responsibility regarding messages attaches to this Company until the
same are presented and accepted at one of its transmitting offices; and if any
message is sent to sAch qlJi bynprof thinalompAnW8 messengers, he aptsasthelgentipf
instructions re.garclfWg it
e Co rialay's,a fftn t is II% saidoffice.
oce.
11
i 1,./...r. the sender for the purpose of delivering the message and any notice or
e. Thie-Company shit l not he
able
for damages or statutory penalties in any case where the claim is not presented in writing within thirty days after the
message is tiled with the Company for
transmission.
In further consideration of the reduced rate for this special "NIGHT LETTERGRAM" service, the following special terms are hereby agreed to:
NIGHT LETTERGRAMS may at the option of the Telegraph Company be mailed at destination to the addressees and the Company shall be deemed, ta
have discharged its obligation in such cases with respect to delivery by mailing such NIGHT LETTERGRAMS at destination, postage prepaid.
NIGHT LETTERGRAMS shall be written in plain English. Code language is not permitted.
The above terms and conditions shall be binding upon the receiver as well as the sender of this NIGHT LETTERGRAM.
NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.
t.'1'
CLARENCE 'H. mi(velkAr; PREMDENT.
CHAR LES..,413.91WAENT.
WARDREYNOLD-S, VICE-PSETT., ATI D. GENERAL MANAGER.
CHARLES P. BRUCH,
VICE-PRESIDENT.

THT-DFASTEST TELEGRAPH SERVICE IN THE WORLD

110$

gug
.

Min.

FEDERAL RESERVE BANK
NEW YORK

PJ/Re..H

(TO BE MAILED)

Postal night letter
5:45 p.m.

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:
1

Benjamin Strong

Esq

4100 Montview Boulevard
Denver

Colorado

Anticipate no difficulty with remelt charge and are
Thanks your telegram
discussing fifty cent charge with Assay Office and Roberts but not making much
progress Stop Can you furnish any reason based on broad policy to advance for
Stop No mention
remission of this charge other than natural desire to escape
of it in yours to Harding dated Jamary twenty sixth Stop Have made formal
application for two matters mentioned therein Stop Secretary inquires whether
if Assay Of.ice would reestablish old rule advancing only ninety per cent on
gold deposited for assay we would agree to advance the percentages Assay Office
now advances so that public would not be affected Stop What do you suggest we
reply

Pierre Jay.

0-2
Charge Fed. Res, Bank

FEDERAL RESERVE BANK
OF NEW YORK
March 2, 1917.

Dear Governor Strong:

With regard to the Spanish exchange matter r
your letter of February 21st, the people who went o

erred to in

half-cocked were

the Pompeian Company who made themselves a regular nuisance and have
gotten up a printed propaganda on the subject.

They kept pestering

the Board and the Board asked me for a report on the subject, which I
think Mr. Cann made, and I think the Boar

then felt ready to drop it.

Mr. Kent, Yr. Rovensky, Yr. Gardin and ethers kindly assisted us in
getting up the data.

I do not know whether Mr./bann sent you a copy of our report
to the Board but I should be glad/to send it to

The main gist

of it was that with sterling and/ francs at a discount all over the

world and the London market clised as a settling center, settlements
with neutral nations naturall,7 turned to the United States and depressed
our currency with respect t9( theirs.

I presume that the situation

existing between this country and Scandinavia is closely related to the
depreciation of sterling/imd francs.

Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Col.

PJ/RAH

Very truly yours,

FEDERAL RESERVE BANK
OF NEW YORK
March 2, 1917.

CONFIDTTTIAL

MAR5

Fr..!Nci cpspt.
1911

Dear Governor Strong:

Referring to your letter of Februar
W. L. Saunders of 11 Broadway.
I knew about him at the time.
-

list of his offices will show.

I think I told you the other day all
He is an active businessman, as the
-,7oodward does not know him well and

only expressed the opinion of him which I have passed on to you in my
last letter.

He is chairman of the Naval Advisory Board, which was gotten
up about a year or more ago, consisting of members appointed by the

different engineering societies of the country.

They have been mak-

ing a survey of the industries of the country.

He lives in New York

but votes from Plainfield, N. J, and I have heard it said that he had
political ambitions in New Jersey.

He was a member of the Democratic

Campaign Committee last summer and very active in the campaign.

As to

his business or other qualifications to be a valuable director with us,
I think that on paper at least we are much to be congratulated, but we
cannot tell for some months how he will work out as a director.
I think it would be a mighty good plan if you would write
him.

Treman, Curtis and I had him to lunch on Tuesday and endeavored

to give him a little idea of our work, in which he seemed interested.
I must confess that it was a disappointment to me to have him

named without consulting us after all the work we had done in looking
up good men, but I have an entirely open mind on the subject and shall

RESERVE BANK OF NEW YORK

4i-

Benjamin Strong, Esq.,

3/2/17.

c,FEDERAL
14.

be only too happy if he proves to be a good director.
I agree with you as to Starek's affection for you and me,
Very truly yours,

Chairman.

Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Col.
PJ/ RAH

P. S.

Yr. James Brown has been in on another matter and

spoke of knowing Yr. Saunders as a member of the permanent committee
of the Fan limerican Conference on Nicaraugua.

He said that he was a

most active and energetic man, and that he had made his money himself.
He thought that

he had a great deal of influence with the administra-

tion, and while he did Snot know much about banking would make an excellent director for us.

He said he was especially good in organiz-

ing anything which had to be put before the public.

Oeletee---

referred the report of the
efel-Le-e#

recommending a plan whereby a

reserve bank could be made rereserve bank, has given the mat-

ter much consideration, has consulted with several leading bankers in regard
thereto and reseectfUlly presents

the following report:

At present the great majority of the member banks keep accounts with

of the largo centers, drafts on which they and
their depositors use in settlement Of accounts due in various parts of the
correspondents in one

country.

or more

Inasmuch as balances with such correspondents willeoon

cease to

count as reserve it is desired to provide the country banks and their cus-

tomers with a method of transferrieg funds to points where layments are to be
made which will be as satisfactory as the drafts they have hitherto used.

This would doubtless tend to

eliminate accounts of many country banks now kept

in the large centers and might, therefore, prove detrimental to the

interests

of the member banks in such centers, but the comedttee, as well as the bancers
consulted, have endeavored to

consider the plan with the sole objects of

Making it a practieal and effective method of transferring funds for the country banes, which it is
desired primarily to assist, and
Assuring thorough protection to all eoncerned in its
use.

TB 3 PRISENTXTROD QF §ETTAg0 ANQUEITO.
The method of settling accounts throughout the country may be illustrated by the following case!

The merchant at Bronwxville, Texas, who buys a bill of goods from
Marshall iield

'Company in Chicago on credit, unless it is expressly otherwise

To the Board of Directors:.

Your specie/ committee, to ',blob was referred the report of the come
mitten of governors of Federal reserve banks reoommending a plan whereby a
draft drawn by a member bank upon its Federal reserve bank could be made receivable at par at another specified Federal reserve bale, has given the mat-

ter much

consideration, has consulted with several leading bankers

in regard

thereto and reetectfally presents the following report:
At present the great

majority of the member banks keep accounts with

correspondents in one or more of the large centers, drafts on which they and

their depositors use in settlement Of accounts due in various parts of the
country.

Inasmuch as balances with such

count as reserve it Is desired to

correspondents willsoon

cease to

provide the country banks and their cus-

tomers with a method of transferring funds to points where
made which will be as satisfactory

as the drafts they have

eayments are to be
hitherto used.

This would doubtless tend to eliminate accounts of many coaetry banks now kept
in the large center* and might, therefore, prove detrimental to the interests

of the member banes in such centers, but the ocet-ittee, as well as the
oonsulted, have endeavored to consider the plan with

banters

the sole objects of

Making it a practical and effective method of transferring funds for the country banks, which it is
desired primarily to assist, and

Assuring thorough protection to all conoerned in its
use.

PB.31

OF §ETTLING ACCOUNTO.

The method of settling accounts throughout the country may be illus-

trated by the following case:
The merchant at Bronwxville, TOXBS, Who buys a bill of goods from

Marshall Fieldt Company in Chicago on credit, unless

it is expressly otherwise

stipulated, undertakes to pay Marshall Field & Company in currency, or in a

sight draft whieh they can at once convert into currency on presentation in
Delivery of the merchant's check upon his local bank Is not such

Chicago.

At east, it is a postponement of the payment until the cheek can

a payment.

be sent to Brownsville and collected and the proceeds transmitted to Chicago.
To avoid the delay consequent upon the collection of a Brownsville oheek, the
merdhant is accustomed to procure from his local an a draft upon its correspondent in Chicago whida, when remitted to Marshall Field a Company can be

converted into cash at once by them.
Usi.FIWelltkL 1LS$1iHYs;

51'e

Some eighteen months ago the Federal reserve banks undertook to

transfer funds for its mashers from one district to another, either by mail
or telegraeh.

Bat the member banks and their customers are so much more ac-

customed to drawing cheeks than to ordering transfers in settlement of accounts

that the present facilities of the transfer system have not been generally
availed of.

Tour committee understands that the plan under discussion is

designed to complete the transfer system by enabling a member bane to transfer

money to distant points by drawing a draft on its own Federal reserve bank

which will effect eayment through the Federal reserve bane of the district in
which such point is situated.

It is in the interest of ;ood business that

payments should be made promptly, effectively, and in a method which will be

generally acceptable, anA with all efforts in that direction, of which the
proposed plan is a very important one, the eamnittee wishes to give every as-

sistance.
Tg-;;; rIan Oi TI4OU'ITIOBS' 00MLITTSB.

The plan of the governors,' committee is to make the draft of a mane-

ber bank upon its awn Federal reserve bank receivable at ear when presented

at any other designated Fedora/ reserve bank, allowing such receiving Federal

reserve bank to charge the draft to the home Federal reserve bank and collect
the amount through the gold settlement fund.

The member batik issuine the draft protects itself by oharging the
amount to its customer.

The reserve bank upon which the draft is drawn pro-

tects itself by charging the amount, when advised, against the reserve deposit
of the member bank.

The reserve bank at which the draft is receivable at

par, although required to all

immediate credit for the amount, protects it-

self, as far as it can, by making this credit 7entative until the draft has
been collected and actually paid at the home Federal reserve bear.
committee suggests the following criticisms of the plan:

The proposed draft would not be an instrument effecting prompt payment, but an instrument postponing payment until its amount had been coliected
at a distant point. In the opinion of your committee, therefore, the proposed plan will prove
ineffective and cannot be made satisfactory to

the country bank and its easterners unless it is
made an instrument of actual rather than tentative payment at the Federal reserve beak of the
district in which the payment is to be made.

What has elven drafts on New York, Chioaeo and other

large centers their acceptability has been the
fact that thee would be finally 1aid at those
points. It has been urged that wirier the eovernors' plan the tentative ciellit would in almost
every case become an actual credit, eat in the

opinion of your committee this uncertainty would
make the plan, as a substitute for New York or
Chicago draft, ineffective. Some of the large
banks in Chicago and elsewhere have made arrangements In European and other countries whereby
their 'banking customers may draw drafts payable

at certain designated foreign places. These
drafts are generally used and eive satisfaction
because they effect actual payment.

It is cer-

tain that they would not eive satisfaction if they

were made only tentatively payable at these foreign
places eut had to be returned to Chicago for final
payment.

Your

(0)

The eommittee's plan provides for LW advice between
Federal reserve banks. The receiving Federal

reserve bank, therefore, finds itself in the po-

sition of having to decide in each. ease hoe mudh
credit it will extend te the member beadle depositing such drafts. If it curtails this credit the
eemediate availability of the draft disappears;

if it is compelled by regulations of the Board to
extend such credit regardless of the strength of

the member bank, an undesirability element of
weakness would be introduced into the eystem.
(d)

Under Section 16 of the Act each Federal reserve Lane
has undertaken to perform two services for its
members:

To assist them in collecting

funds (represented by checks)

Jae from distant points;

To assist them in transferring
funds due to distant points.

The eureose of the plan is essentially a transfer
of money ender ed. 2. Yet the operation efSlee
Plan brings it under No. 1, since the draft has
to be sent for collection and final eayment to
the distant paint
(e)

The proeosal to limit a member bane to not exceeding e10,000. of each drafts in any one day is a

difficult limit for the home Federal reserve
bank to enCorce and an impracticable limit for
the paying Federal reserve bank to observe.
Should there be any limit upon the amount of
drafts a member bank may draw upon funds actu-

ally available for the purpose at its Federal
reserve beek?

such drafts payable on advice at any designated Federal reserve bank.
This modification weuld entail two changes in the plan:
11)

That the home Federal reserve bank should advise
the paying Federal reserve bank, usually by

mail, but by telegraph if neoeesary, to pay the

draft.
(2)

That the paying Federal reserve bank should be ready
to assume the responsibility of actually paying
the draft on advice.

With this modification, every _party to the transaction would be protected, the member bank by dhareing its castemees account, the home Federal
reserve bank by charring the member bank's account, and the paying Federal

-5reserve bat, upon advice from the home Federal reserve bank, by charging the

amount to the account of the latter; whereas the merchant in the distkict of
the paying Federal reserve bank would receive an instrument whioh would effect
for him

prOMpt

and actual payment of his account.
JeeTIONO TO THE SUZ43TeD =)IVICZION.

The possible objections to the modification suggested by your commit-

tee seem to be -

That the draft might reach its destination before
the advice;

That it adds to the responsibility and Labor of the
paying Federal reserve bank.

With respect to (a) your committee believes that in ractice the advise would proceed promptly by the most direct route to the paying Federal reserve

bank, whereas probably the great majority of the drafts would go first to parties
in places other than the location of such bank; would be by them deposited in
local banks, and in turn be forwarded to the iaying Federal reserve bank. This
usual procedure would give ample time for such bank to receive this advice.

teren

were the drafts to be used in the payng Federal reserve banes oit a day would
usually be reqeired for the deposit of the draft by the creditor add its passage
through the clearing house. Thus in nearly all eases there would be a margin for

the receipt of the advice. But should a draft arrive before the advice, either
it could be held awaiting the arrival of advice or Lnstructione could be requested
by wire.

In practice a member bank drawing for a substantial amount and fearing

lest it should arrive before the advice would stamp the advice to its home Federal reserve 11..nk "Please wire."

This might often be necessary in the case of

direct remittances between member banks where the payee is in a Federal reserve

bank city.

In cases where the member bank is situated geographically between
the two reserve banes in question and desires to draw frecuently special ar ange(

ments could be made between the reserve banks, signature cards filed and limits

-6agreed upon.

In the opinion of your committee advice between Federal reserve

banks would not erove cumbersome.

The member beak would advise in duplicate,

and one of these advioes the hone Federal reserve benk would sign and forward
to the eaying Federal reserve bank.

'aith respect to (b) it is the belief of your committee that the responsibility is a reasonable banking risk which should be assumed by Federal reserve banks. Irobably more drafts would be drawn on the Federal reserve bank
of New York than on any other Federal reserve bank, and its officers believe

that the necessary machinery to pay sueh drafts upon advice would be entirely
practicable.
RECMaNDAZIOTJ OF OCIMITTeig.

Your committee recommends that the directors of the Federal Reserve
Beak of New York, desiring to cooperate in every way with the Federal Reserve

Board in their effort to provide country banks with a practical and effective
method of transferring funds through the medium of their own checks, urge that

the plan presented to the Federal Reserve Board be modified so as to make drafts

"payable upon adviee instead of "receivable for immediate availability at
the Federal reserve bank of the district in which the payment Is IAD be made.

Under such modification protection is etven to all concerned; the evils of
postponing the day of payment are avoided; exchange is eliminated; the drafts
of the member bank, however, remote, are as good as if it were located in the

city of the paying Federal reserve bank, and become the equivalent of cash at
the time and place where they are to be finally, used.

FEDERAL RESERVE BANK
OF NEW YORK

March 2, 1917.

Dear Governor Strong:

With regard to the gold bar situation, we are now going
at it, and I am ever so much obliged for the two t 1 grams you sent
me.

Yr. Cann started to make a report as you suggested, but then

the Butchers & Drovers matter came up and we havee had him up there

all the week with two assistants, making a ths ough study of their
paper so that we may in future deal with th

with some confidence

on the basis of the actual paper they offe

At the present time we

have some 60% margin on iyilec4T loarsip gg egating something over

400,000, which they have with us.

s a difficult situation to

deal with because the officers do not .eem to be able to say "No" to
customers.

Going back to the gold ba

matter, I am trying to get some

light from Jr. Roberts this mornin , he having been away for a couple
of days, and the Superintendent
see me later in the morning.

the Assay Office is coming over to
nfortunately Tr. Cann's departure next

week will prevent him from ca rying this matter on.

The matter was rather brought to a head by Mr. Bovee's having asked us two days ago whether we would store a considerable volume
of gold bars for him in our vault, and we consider this to be an exceptional opportunity to try to .jet him to make concessions to us on the
bar charge, etc.

We have not yet determined whether we can lend him

space, but think that at least we could help him out in a small way by

-EDERAL RESERVE BANK OF NEW YORK

buying, say,

Benjamin Strong, Esq.,

50,000,000. of bars.
Very truly yours,

hairman.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/ RAE

3/ 2/17.

FEDERAL RESERVE BANK
OF NEW YORK

March 2, 1917.

Dear Governor Strong:

As to duplication on the part of TremAn and me,
//

referred to in your letter of February 23rd/I should say
Y1

that this was at a minimuqt, because I amihssuming that

Ir. Treman is keeping you fully posteras to everything.
My impression of the reason I sent

au a copy of the re-

port on Federal reserve bank drays was because Yr. Treman
was away on the day the last v ntage was produced, although

/ii/

I am not absolutely positivq/of this.

Very/truly yours,

/
/
/

i9
Chairman.

Benjamin Strong,
4100 Montview Boulevard,
Denver, Col.

P.VRAH

FEDERAL RESERVE BANK
OF NEW YORK

March 2, 1917.

Dear Governor Strong:

Referring to your letter of February 26th, we
received from Mr. Malburn a list of all banks under special
examination, and a statement from him that after inquiring

in the office he did not know of any *er banks towards
which we should act with caution in Ifiaking rediscounts.
.

There are a dozen barks on the

list

and we are starting to

look into them.

I think we shall

get

along all right with Mr.

Malburn, but being entirely/new at the business he naturally
1

wants to go a little slowly, and after having jogged along
for two years I think we can afford to be patient for another
/

month or two, during livhich time we hope to develop the plan

of getting the examiners to come in and see us when they are
in town and discuss the banks under their particular supervision.

Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/BAH

FEDERAL RESERVE BANK
OF NEW YORK

March 2, 1917.

Dear Governor Strong:

///

I have just been advised by t e Comptroller
that he is sending over ,-,;25,000,000./of Federal reserve
'

notes to the Subtreasury here to
custody and released to us in

e held under his own

feL.se of

emergency.

This

will be an additional supply(to that which we hold in our
own vaults.

Xery truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.

FJ/RAH

FEDERAL RESERVE BANK
OF NEW YORK

March 2, 19177/

Dear Governor Strong:

Yr. Treman has handed me your

etter of Febru-

e undertaken to

ary 19th with regard to gold, as I h

look after the adjustments with thV Assay Office and the
There do s not seem to be anything

accumulation of gold.

in it to answer just at the mo ent.

whether any arrangement can

I will inouire from him as
be made about the French b

When I see Mr. Boyce

Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/ RA.H

FEDERAL RESERVE BANK
OF NEW YORK

March 3, 1917.

aLk
MAR?

12,/

Dear Governor Strong:

I enclose copy of a letter I am writing to the
Secretary of the Treasury to-day upon the matter of the
readjustment of relations with the Assay Office, which I
think will explain itself.

Very truly yours,

Chairman.

Benjamin Strong, Esq.,
4100 liontview Boulevard,
Denver, Colorado.

PJ/RAH
Enc.

FEDERAL RESERVE BANK
OF NEW YORK
March El,

Dear Governor Strong:

1917.

MARI 5 1917

The letter to the Bank of France went off to-day with the
correction in the memorandum authorized by your telegram of to-day
and the following postscript added to the letter:
"We are advised that the French limit of tolerance
upon abraded French coins is 1/10 of 1% for one
hundred franc pieces and fifty franc pieces, 2/10
of 1% for twenty franc pieces and ten franc pieces,
and 3/10 of 1% for five franc pieces.
If our advices are incorrect, paragraph 12 (e) should be
changed in order to include a correct statement of
what the limit of tolerance is"
We have sent it by registered mail to the Ambassador, to whom Mr. Curtis

wrote a letter asking him to put it in the Embassy pouch,if possible. to
go on the Steamship "Rochambeau" which arrived at this port yesterday
and will not sail before Saturday, Sunday or Monday.

A duplicate will

go forward by registered mail from here direct on the next French mail
steamer.

Dr. Willis is going to be over here to-morrow at a conference
held by the Credit Men's Association on trade acceptances, at-which Mr.
Treman and others are going to speak.

We shall take advantage of the

opportunity to discuss the relationship with the Philippine National Bank
with Dr. Willis.

Te have been having some correspondence with him of

late and have received from him a copy of his letter to the Federal Reserve Bank of San Francisco.

Yr. Warburg is going to be over here some time next week, and
in vier of the vote of our executive committee that under present conditionstheydo not think it wise just now to enter into relalions with

DERAL RESERVg BANK OF NEW YORK

Benjamin Strong,

Esq.,

3/8/17.

any other foreign banks except the Bank of the Philippines, I should
like very much to get your views as to whether this is a wise course
for us to take at the present time, especially in the case of the Ar-

gentine Bank with which Mr. Warburg began conversations many months
ago, and I trust you will find time to drop us a line from Chicago.
I have just heard from Governor Harding that the Board is

preparing some kind of a statement about foreign credits which he said
we would see in the papers to-morrow morning, and with which he said,
"I think you will be pleased."

He also advised me that the Board had

suggested to him that he should spend the 19th with us in Yew York.
I am sorry to think of you being so near to up and yet we
are not seeing you.

If MT. Treman were not going to be away on Mon-

day and Tuesday I should be inclined to run out and spend an hour or
two with you.

Faithfully yours,

Benjamin Strong; Esq.,
Blackstone Hotel,
Chicago, Ill.
PJ/ RAH

FEDERAL RESERVE BANK
OF NEW YORK

March 12, 1917.

Dear Governor Strong:

I have your note of March 7th about our annual
report.

I expect that it will be out

n a few days and

will see that you get One as soon -s it comes from the
press.

I am writing to-day to th

Federal Reserve Board

asking for an advance copy of i s annual report which I
will send to you as soon as

is received.

Wills of Clevela d and Curtiss of Boston were
ay and we had quite a little dis-

here on Friday and

Satu/

cussion about the slaw ess of the Board in setting out
our annual reports,

done this year we

nd while, of course, nothing can be

hall certainly take it up at our May

meeting and ende vor to have a more prompt emission next
year.

Faithfully yours,

Benjamin Strong, Esq.,
4100 Lontview Boulevard,
Denver, Col.

PJ/RAH

FEDERAL RESERVE BANK
OF NEW YORK

MAR19 1917

March 14, 1917

Dear Governor Strong:

I am sending you herewith copy of a
letter I have written to-day to Secretary McAdoo.
Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/RAU
Enc.

FEDERAL RESERVE BANK
OF NEW YORK

Zilch 21, 1917.

Dear Governor

Jng:

I have received yaur
sending our annual report to
,,ublications, and I am tu

with the request that he

etter of Larch 17th about

ertain forein bankers and

this over to Mr. Higgins

arry out your sugestion as soon

as our annual report co es in, which should be in the course
of a few days.
(e shall

so act on your excellent au:estion to

have a little perskal slip attached.
Very truly yours,

Benjamib Strong, Esq.,
4100 Lontview Boulevard,
Denver, Col.

PJ/aH

FEDERAL RESERVE BANK
OF NEW YORK

March 27, 1917.

Dear Mr. Strong:

I enclose a tabulation of the acceptances for which liability is stated of national banks, state banks and trust companies
in this district at the last calls, with comparative figures of former calls.

Since these figures might be misleading in view of March
5, 1917, figures being under those of December 27, 1916, I am also
enclosing a list of the institutions whose statements show they are

holding certain of their own acceptances on which they report no liability as acceptors.

These amounts added to the liability figures

shown give a more accurate indication of the volume of this business
done.

Very truly yours,

Benj. Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

HPA/IWB
Encs. (2).

AMOUNT OF BANES' 017 ACCEPTANCES HELD AS INVESTMLTTS
FOR WHICH NO LIABILITY IS STATED

NATIONAL BANKS

March 5, 1917

merican Exchange National Bank
Atlantic National Bank
Battery Park National Bank
Chase National Bank
Chatham & Phenix National Bank
East River National Bank
Hanover National Bank
Importers & Traders National Bank
Irving National Bank
Liberty National Bank
Mechanics & Metals National Bank
Merchants National Bank
National Park Bank
National City Bank

512,571
51,420
67,500
3,354,868
100,000
15,295
3,083,333
750,000
1,947,923
300,600
960,564
50,000
2,365,192
17,460,793

Z1,020,059

TRUST COMPANIES

Bankers Trust Company
Broadway Trust Company
New York Trust Company

February 28, 1917
,

5,003,948
540,039
1,700,000
7,243,987

STATE BANKS

Corn Exchange Bank

March 27, 1917.

February 28, 1917
473,333

LIABILITY FOR
ACCEPTANCES - DISTRICT f2.

Date

March 4, 1915
1, 1915
May
June 23, 1915
Sept. 2, 1915
Nov. 10, 1915
Dec. 31, 1915
7, 1916
Mar.
May
1, 1916
June 30, 1916
Sept.12, 1916
Nov. 17, 1916
Dec. 27, 1916
Mar. 5, 1917

National Bank

Date

$ 18,706,078
16,121,305
16,721,068
6,903,001
16,181,805
17,614,257
21,361,952
33,080,292
39,774,590
43,300,877
54,445,056
56,038,115
49,675,853

Dec. 24,
Mar. 19,
June 23,
Sept.25,
Dec. 31,
Mar. 17,
June 30,
Sept.20,
Nov. 29,
Dec. 30,
Feb. 28,

National Bank
New York City
American Exchange Nat'l Bank,
tt
ft
tt
Atlantic National Bank,
ft
tt
Bank of New York, N. B. A.
tt
Battery Park National Bank,
ft
tt
tt
Bronx National Bank,
tt
Chase National Bank,
tt
Chemical National Bank,
Vt
ft
tt
Citizens National Bank,
ft
tt
ft
Coal & Iron National Bank,
It
ft,
ft
East River National Bank,
tt
Garfield National Bank,
tt
Hanover National Bank,
It
It
II
Importers & Traders Nat'l Bank,
Irving National Bank,
ft
11
Liberty National Bank,
I
II
It
Market & Fulton National Bank,
It
ft
Mechanics & Metals National Bank,
II
If
Merchants National Bank,
tt
National Bank of Commerce,
National City Bank,
VI
VI
1,
National Park Bank,
Seaboard National Bank,
Bridgeport, Conn.
First Bridgeport Nat'l Bank,
ConneCticut National Bank,
Manufacturers & Traders Nat'l Bank,Buffalo, N. Y.
ft
tt
Marine National Bank,
Perth Amboy, N. J.
First National Bank,
Syracuse, N. Y.
First National Bank,
New York City
First National Bank,
11

UIt

Trust Companies
Astor Trust Company,
Bankers Trust Company,
Broadway Trust Company,
Central Trust Company,
Columbia Trust Company,
Equitable Trust Company,
Farmers Loan & Trust Company,
Fidelity Trust Company,
Franklin Trust Company,
Guaranty Trust Company,
Lawyers Title & Trust Company,
New York Trust Company,

New York City
Vt

It
n

H
Vt

Brooklyn, N. Y.
Net York City
tV

State Banks &
Trust Companies

1914

44.

.4) 24,196,776

69,343,356
48,407,305
37,543,932
52,021,004
69,021,670
57,876,873
71,400,273

1915
1915
1915
1915
1916
1916
1916
1916
1916
1917

92988,612
81,495,391
99,896,450

Dec. 27,1916
$ 5,293,891
33,618
4,290,739
174,774
5,312
3,776,495
100,500
641,274
268,474
224,767
5,250
3,750,000
450,190
2,782,606
250,000
16,786
4,751,801
1,025,199
8,260,815
16,284,541
2,995,861
50,553
595,169
9,500

Mar. 5,1917
3 5,666,068
132,748
4,457,136
142,470
14,857
6,228,135
121,500
683,836
145,140
108,292
761

300,000
2,697,641
349,000
5,626
4,243,365
1,114,845
10,989,022
8,443,300
2,980,816
108,270
392,548
16,500
7,000
100,000
50,000
150,000
26,777

*56,038,115

*49,675,853

Dec.30,1916
4
200,000
11,324,017
753,497
1,649,999
1,096,445
17,101,299
8,170,794
50,000
703,881
38,250,107
100,000

Feb.28,1917
666,666
13,164,409
771,985
1,483,333
1,071,690
22,559,166
8,807,052
49,999
932,150
45,146,063
500,000
217,000

$79,400,039

p5,369,513

-2-

ACCEITANCES

Dec. 30,1916

State Banks
Bank of America,
Bank of Manhattan Company,
Bank of the United States,
Corn Exchange Bank,
National Bank of Cuba,
State Bank,

New York City
ft

ft
ft

It
It

Feb .28.1917

750,000',; 900,000
671,242
95,589
559,999
18,522

791,782
239,545
2,476,396
19,214
100,000

$2,095,352

4,526,937

FEDERAL RESERVE BANK
OF NEW YORK

April 5, 1917.

Dear Governor Strong:

Thanks for your letter of the 31st instant
about accer.tance liabilities.

I will talk a little

with Yr. Vanderlip about this at dinner next week.
Faithfully yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/ RAH

ariDtiRAL RESERVE BANK
199F NEW YORK

ApA 9

il 5, 1917.
Dear Governor Strong:

Mr. Treman and Mr. Curtis have been in Washington both yesterday and to-day.

I enclose a line from the latter received to-day.

Here in the office we have been extremely quiet during these two days.

To-day we have an application for 175,000. from the National Butchers
& Drovers Bank on ten day and fifteen day notes.

On the question of the state bank amendment we had a very
satisfactory meeting of about a dozen of the leading trust company men
yesterday morning.

Most of them expressed themselves as being inclined

to keep a deposit with us if the law so permitted, and we are now taking ste,s to get the New York State banking law amended so as to let
such deposits count as part of their reserve, which is not the case now
unless they are actually member banks.

They seemed a little bit doubt-

ful about making suggestions as to changes in the proposed amendment,
fearing that it would commit them to coming in.

However, Lr. Platten,

chairman of the executive'committee of the Trust Company Section of the
A. B. A. has called a meeting of his committee next Tuesday to discuss
the amendment.

He and I hope to do a little work on it in the meantime

and I am hopeful that we can get it in such shape that it will be acceptable to them., Whether the Board will accept such changes or not, I do
not know.

The Board has made two important concessions in this amendment:
(1)

State institutions are no lAlger under the Comptroller, but only under the Federal Reserve
Board.

FEDERAL RESERVE BANK OF NEW YORK

(2)

Benjamin Strong, Esq.,

4/5/17.

The 1 0 liability limit does not apply to state
bank members, but they are, however, not permitted to offer for rediscount the notes of
any party to whom they have lent more than
10% of their capital and surplus.

I have written George Allen, Secretary of the State Bank Sec-

tion of the A. B. A., who is in the Chicago, suggesting that his committee
might like also to consider the subject.

I understand that Mr. Fuelicher,

president of that section, of the MarshanwIlsley Bank, is very much interested in the subject.
To-day I had lunch with Mr.. Murphy of the Guaranty.

He tells me

that Sabin is now on the water, and that as soon as he comes he will give
the matter careful consideration from every angle.

In the meantime he

wanted to post himself on various matters in connection with the System.
King holds the radical view that it is better for New York that

all of its banking resources should not be subject to the control of Congress and therefore it would be a mistake for the trust companies to come
in.

Of course, this is a pleasant and taking view for others to accept

and adopt.

I think, however, that we are making some headway.

Curiously enough the Clayton Act was not mentioned by any at our
meeting yesterday.

I think Mr. Treman has written you that as a result of a lunch
we had a fortnight ago with Yr. Warburg, :r. Vanderlip, Mr. Alexander, Mr.
Wiggin and Yr. Woodward, Mr. Vanderlip expressed the view that there was
too little contact between the Reserve bank and important members, and has
invited our directors to dine with him on the 11th to meet the members of
the Clearing House Committee.

If you have any suggestions as to any views

you think ought to be brought out there, I wish you would drop me a line.

I enclose a recent dfusion of mine, also a memorandum which I

FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

asked Yr. Kenzel to prepare.

4/5/17.

I thought I would not send it to -;Iashing-

ton until after our meeting with the. clearing house committee as I should

like to take time to consider it,in the meantime.

What are your views on

it?

The Argentine letter went forward yesterday.
Curtis has sent you a copy of it.
views.

I assume that Yr.

I trust that it will meet with your

We felt here that it was a satisfactory harmonization of yours

and Warburg's views which entirely protected us in the matter of buying
bills.

Very truly yours.

Benjamin Strong, Esq.,
4100 T2:iontview Boulevard,

Denver, Col.

FEDERAL RESERVE BANK
OF NEW YORK

April

6, 1917.

Dear Sir:

We want our member banks to get every possible advantage from the goodwill and esteem which business mon and the public generally have for the Federal
Reserve

System,

Our ortrance into

especially while it is fresh 1.h people's minds.

the war and the changes it is likely to bring to our commercial ard fjnancial life
o direct this geod.wi:I.1 and esteem

seem to make the present an appropriate time

toward those banks which are

members of the

avt,teL,

With this in view, we have had prepared some adver-

ADVERTISING COPY.

tising copy designed to create the belief that it is desirable to do business with

the

member bank using the copy on account of the facilitiee and protection the

System affords, and in order that it should be effective as a business getter, it

embodies.the sugestions of expert bank publicity men in every part of the country
to whom it was submitted before being printed.

Sbme of them regarded it as adver-

tising the Federal Reserve System more than the member banks, and asked

the

Such suggestions miss the point, which is

System would pay for the advertising.

that

whether

considerable publicity is necessary to develop the idea in the public mind

that it is advanta-eous to do business with members.

The System has no interest

in being advertised except as it will assist member banks to profit from their connection with it.
PAL.PHLET.

plain to business men,

We have also had prepared a brief pamphlet desi2:ned to exfarmers

and wage

earners in simple language soz,ething about

This may be used, if desired, either in connection

the System.

ments or separately.

5.25;

printing your

the advertise-

Copies of the pamphlets may be obtained from A. Colish,
_

West 37th Street, New York, at the following prices:
1,000 for

with

5,000 for

25.45;

100 for

1.30;

500 for

10,000 for 348.30; which include coot of

nAirle end address on the cover.

2.90,

_ RESERVE BANK OF NEW YORK

STANDARD DESIGN.

The George Ethri.dge Coll.pany. well-knorn advertJ.siur

experts, has prepared for us a dcsin, now cupyAghted, conl.aiainz the
ber Federal Reserve Syster.."

design

77ords ni-

If member banks all over the coutri would use this

in their advertising, as well as perhaps on tneir stationary, we 1,elieve

would develop considerable publicity value for them.

On reouest we will send you

and will furnish additiona3

without charge an electrotype of it,

electrotypes for

10 cents each.

ILLUSTRATEE ADVERTISELENTS.

The Etnidge Company, Tielleving that il-

lustrated advertising is the most eff,o4ve, and desiring to make the use of the
advertisement as successful as possible, has very kindly, without cost to us, illustrated 22 of the texts.

i:.ember banks wishing to use the illustrations, with

or without the texts, can obtain plates of any one or more of ten fro.: the George

Ethridge CozTany, 23

East 26th Street,

York, for 5C cents apiece.

WE SEND YOU HEREWITF:

41 advertisina texts, suitable for ne-rspaperv, street
22 illustrated texts, v-it'n suggestions for use,

cars, etc.,

A copy of the pamphlet.

If you find these of service, we shall probably be

to send you ad-

We ask you to suggest to us topics you would

ditional matter from time to time.
like used;

e-Je

also to renort any experiences you may have with the copy noT furnished.

Until April 12th please consider the advertising copy sent you nererith
as confidential and not to be used.

We trust you understand that there is no ob-

ligation whatever upon you to use any of this advertisin7 matter.

We suest

that should you use it and find it arouses any interest among your depositors, it
:_light prove to be a favorable tile to approach some of them with a view to placing

unprofitable accounts on a nayin

basis.

Very truly yours,

M.ir.'t.

FEDERAL RESERVE BANK
OF NEW YORK
APR 1 0 191/

April 6, 1917.

Dear Governor Strong:

To-day is Good Friday and with the

Stock Exchange closed there

is naturally very little doing here.

Mr. J. Herzog just telephoned Mr. Hendricks that the follo:Ang

amendment to the banking law had been introduced in Albany and advanced
to the third reading:

New subdivision H, section 106 of the banking
law, authorizing banks to pay in cash or by a draft
on a bank in New York City, in which such bank has
deposits Sufficient for the payment thereof, any
check presented for collection by any express company
or messenger.
Yr. Hendricks is now calling up Senator Marshall to find out about it.
Of course, this is the answer of the small state bankers to our express
company activities.

That we shall have to go to the mat on this subject

I can readily see.

I have just had a call from the president of the Manufacturers
Trust Company of Brooklyn who is now sitting in the other room with Mr.

Jefferson figuring out what readjustments he would have to make in order
to join the System, should he consider it advisable to make a recommendation to that end to his board of directors.
I am sending you under separate cover copy of a letter and documents which we are sending to every member bank to-day.

In the case of

the city institutions I am writing that we are merely sending it to them
as a matter of record, not because we think it would be appropriate for
them to use.

Each of the other eleven districts have ordered a set of

FEDERAL RESERVE BANK OF NEW YORK

Benjamin strong,

4/6/17.

these documents for each of their member banks and will presumably send
them out to them during the next few days.

This has been a kind of last

straw for the last fortnight and I have often wished that we had your
clear mind and pen to work on it, but I thought I would not bother you
about it in any way.

I have no idea whether the banks will take to it kindly or not,
but I hope very much that they will.
Faithfully yours,

.Junjamin strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/

FEDERAL RESERVE BANK
OF NEW YORK

April 10, 1917.

1014.
150161911
Jear Governor Strong:

I am sending you herewith coy of a letter I
received from the Secretary of the Treasury a few days

Very truly yours,

Chairman. /

Benjamin Strong, Esq.,
4190 Montview Boulevard,
Denver, Col.

FJ/RAH
Enc.

LASS OF SIP

SYMBOL

Day Message

Day Letter

Blue

shoht Message

Letter

WESTEL/'-nNA UNION
114,-74,
AM
TEL
WESTERN UNION

If none of these three symbols
appears after the check number of
wordsithis is a day message. Otherwise Its character is indicated by the

NEWCOMB CARLTON. PRESIDENT

symbol appearing after the check.

---

Form 1204

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nile

Night Letter

If none of these three symbols
appears after the check number of
words)this isa day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT

A70DJu.

BLUE

127

PHILADELPHIA PENNA

5 EXTRA

u 191-7

VIA DENVER COLO APR 13 1917
BENU STRONG

CADENAS HOTEL.

TRINIDAD COLORADO.

FIND OUR ASSOCIATES COMPLETELY IN
WITH FINANCING

DISCUSSED MATTER

DARK ABOUT CONNECTION OF SYSTEM

WITH THE SECRETARY AND SUGGESTED

OUR ACTIVE CO-OPERATION AND ASSUMPTION

OF RESPONSIBILITY FOR GETTING UP

THE ORGANIZATION FOR OUT DISTRICT .STOP SUGGESTION CORDIALLY RECD BUT
WITHOUT COMMITTMENT STOP GATHER THAT
NOT BE DETERMINED TILL AFTER
HE HAS -CONSULTED WITH BONDMEN

RELATION OF SYSTEM MATTER WILL

BILL HAS BEEN SIGNED AND
PERHAPS TEN DAYS HENCE STOP

III
.

Form 1204
SYMBOL

Blue

lessage

Nite

Letter

WESTE 7%4

UNION

WESTERN UNION

TELliv-vvr

done of these three symbols
nears after the check number of
words, this is a day message. Otherwise its character is indicated by the

Day Message

Day Letter

Blue

Night Message

NEWCOMB CARLTON PRESIDENT

I symbol appearing after the check.

CLASS OF SERVICE SYMBOL

words)this is a day pfessag e. Otherwise its charactepfs indicated by the

symbol-appearing after the check.

APRI u 1917
E

ILL BE

ALLOED FOR ORGANIZATION AMOUNT OF

FIRST OFFERING PROBABLY TWENTY TO
VANDERLIP DINNER TO OUR BOARD

FORTY PERCENT OF AGGREGATE STOP

AND CLEARING HOUSE COMMITTEE LAST

NIGHT GREAT SUCCESS WILL RESULT
PROBABLY FOR TONIGHT STOP PAPERS

Nile

NL
Night Letter
If none of these three symbols
appears after the check number of

RECEIVED AT

PLL:TY OF T

IN STATED MEETINGS WITH COMITTEE
SAY CUNLIFFE PROBABLY COMING WITH

BRITISH COMMISSION.
PIERRE JAY

325PM

FEDERAL RESERVE BANK
OF NEW YORK
APR1 8 1917
ril

14,

1917.

Dear Governor Strong:

Thanks for your letter of April 9th.

I am glad you liked

the Trust Companies Magazine article and note your desire that it
should be given wide distribution.

would suggest in this respect.

I should like to know what you

The magazine sent me a number of re-

prints and I am sending them to people who ask for them.
day or two I jet a request for one.

Every other

I have sent e few copies Of

to each of the Federal reserve banks and Mr. Fernley of the National

Hardware Association has asked for 3,000 of them to send out through
his membership, although, as a matter of fact, it is written for
bankers rather than laymen.

I feel some little hesitation in send-

ing it out to our member banks,

and

would value any suggestions you

may have to make.

7ith regard to Yr. Kenzel's memorandum this was very much
of a hurry call.

Yr. Treman called up about eleven one morning and

asked us to jive him some views before one.

Ie had previously con-

suited some Of the other people that you refer to and theseweremerely

some additional ones which it seemed convenient to consult.
took

letters

Yr. Treman

with him to ,iashington from the ',.i-uaranty Trust Company,

the National City Company and Harris, Forbes & Company.
Mr. Curtis has written you about the conference we had here
on April 9th and sent you a copy of the letter we wrote to Secretary
Adoo as a result thereof.
Faithfully yours,

Benjamin ..cong, Esq.,
Boulevard,

4100 Montview
http://fraser.stlouisfed.org/ Denver
ol.
Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK
OF NEW YORK
April 14, 1917.

APR1 81917
Dear Governor Strong:
We have your letter of April 10th.

About the proposed amendment we have taken vigorous measures
to stop the progress of this, and with help from some of our member
Janks I really have very little fear as to its passage.

Cotton vol-

unteered an interesting opinion as to its unconstitutionalit:', which

we have forwarded indirectly to the banking committee.
With regard to your comments on the advertising material, I
do not see any way of protecting against duplication of the use of the

material in a given town except to suggest to the banks that they should
confer with one another on the subject.

As to the other comment,that

the text advertises the Federal reserve bank nore than the member bank,
that, of course, is true, but I do not see how you are going to get ad-

vantage out of a thing unless you advertise, and that is the whole purpose of this campaign;

namely, to get advantage out of the Federal Re-

serve System by making pbople believe that your connection with it makes
their money deposited with you safer.

So far, we have had what I feel is a gratifying response.
About forty banks have said that they were going to use the matter and
I should think that two thirds of these were ordering the illustrated
plates.

They are using the electrotype of the standard design quite

freely, and about 40,000 booklets have been ordered.

Thus far the matter

has not been sent out in any of the other districts, although I believe
that all of them except Philadelphia intend to do so and the necessary

AL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

samples have been shipped to each Federal reserve bank.

4/14/17.

While, of

course, most of the banks will put it in the waste basket we have had
some extremely appreciative letters and I think that it is having the
effect with a number of them of making them feel that we. want to help
them, which after all is an important element.
I am hoping on Monday or Tuesday to have an assistant. After

looking around considerably I have determined upon offering
the position to Mr. Gidney, formerly Mr. Miller's secretary at Washin_cton
and
now one of the Federal Reserve
opinions of him.

Board examiners.

I get very high

Broderick is a very strong believer in him.

Jefferson

has an excellent impression of him from seeing him work here
in the last
few weeks.

I hope that if he accepts it, it will work well.

it will be a great relief to me.
Faithfully yours,

Benjamin Strong, Esq.,
4100 Lontview Boulevard,
Denver, Col.

NJ RAH

Certainly

Form 1201
7 SERVICE SYMBOL
es sage

etter
F

Message

iti-Otter

Blue

WESTE

UNION

Nite

WESTERN UNION

11144UN

If none of these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

NEWCOMB CARLTON, PRESID

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

Night Letter

NL
If none of these three symbols
appears after the check number of
words)this is a day message. Other-

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

wise its character is indicated by the

symbol appearing after the check.

RECEIVED AT 915-919 SEVENTEENTH STREET, DENVER, COLO. AS

R75NY BN 1,10 N L

Fl NEWYORK NY APR 15 1917
BENJAMIN STRONG

4(0

4100 MONTVIEW BLVD DENVER SOLO

RR11 DE.

CUNLIFFE COMING PROBABLY THIS WEEK DELANO SAYS SUGGESTION HAS BEEf

MADE To BOARD TO ENTERTAIN HIM STOP WHAT DO YOU SUGGEST WE DO TO
ENTERTAIN HIM STOP REALIZE HIS PRESENCE WILL MAKE IT MORE DIFFICULT
THAN EVER FOR YOU TO STAY AWAY BUT HOPE MOST SINCERELY YOU WILL STAY
PUT TILL WE CAN ADVISE YOU HIS PLANS AND LENGTH OF STAY ETC STOP ADVISORY
COUNCIL MEETS TUESDAY HAS SOME GOOD IDEAS BOND ISSUE STOP SPENT TWO

HOURS WITH THEIR EXECUTIVE COMMITTEE FRIDAY STOP OUR EXECUTIVE COMMITTEE
MEETS WITH CLEARING HOUSE COMMITTEE WEDNESDAY STOP DOING ALL WE CAN IN
BOND VATTER BUT BIG CHIEF NOT CONSULTING RESERVE CIRCLES TO ANY EXTENT
PIERRE JAY

1056PM

CUT6-4.1)

14,-1.AL

Prall-CLA-4-44

6t)t-17',"-' ("C-c-e-7-

FEDERAL RESERVE BANK
OF NEW YORK

CONFIDENTIAL4irg/
t,

,April 16, 1917.

ApR2 2 191
r,NO
VA

Dear Governor Strong;

I have not had an opportunity until now to write you of
the trip I made to -Washington on Thursday.

Before doing so let me refer briefly to hr. Treman's letter
describing Mr. Vanderlip's dinner.

The suggestion I made was that

there should be stated meetings, not oCcasional meetings, between the
Clearing House Committee and our bank.

The desirabilitu of stated

meetings was brought out by several who spoke afterwards and I hoie
that this can be carried into effect.

No matter how brief they are,

provided they are stated, will rob them of any emergency aspect and
make the intercourse Much more normal than if they were convened on
call.

At least, this is the way it strikes me.

I also suggested

that from time to time it might be well tO have one or more members
of the Federal Reserve Board present and this was also favorably received.

I spoke of the whole plan to Warburg in Washington on Thurs-

day and he seemed very mu.ch pleased with it.

I went over to Washington for two things;

one, to talk with

hr. Warburg aout one or two small changes in the state bank membership amendment, which I think he agreed to; and two, to have a little
chat with the Secretary, if possible, about the relation of the Reserve
System to bond issues.
On arrival I met with Mr. Warburg and Governor Harding.

They

said that they knew nothing about the matter except what
appeared in
the newspapers.

Governor Harding in particular seemed very dispirited

FEDERAL RESERVE BANK OF NEW YORK

and discouraged.

4/16/17.

Benjamin Strong, Esq.,

I told him that I would like to see the Secretary

for a few minutes as the Secretary had asked me a fortnight before to

suggest any plans whereby the Reserve System could be of assistante
in bond issue matters, and asked him if he would like to arrange an
.appointment.

He said he thought that I had better arrange it

very good luck and saw the Secretary for about fifteen minutes.

I had

was very busy but. feeling very good about having just gotten a unani-

mous report from the Senate Committee on the bond bill.

my suggestion

was that the Federal reserve bank in each district should be appointed
the active fiscal agent of the government and held responsible for the
organization of such committees as were necessary to arrange for the
distribution of bonds within the district.

Such committees would nat-

urally cooperate with respect to the national aspects of the situation,
especially the publicity and educational features.

I asked him if he

would be good enough to indicate to the Reserve banks as soon as practicable what part they were to play in the matter so that they could lose

no time in preparing themselves intelligently for the exercise of their
functions.

He made no comment on the suggestion beyond saying that he

wished to have the actite cooperation of the banks.

He said, however,

that he would not make up his mind as to the methods to be employed until

the bill had actually become a law and until he had had an opportunity of
consulting the bond men throughout the country in whose judgment he had
confidence.

He said that he had already received various suggestions with

regard to the amount of bonds which should be placed in the first issue,
running all the way from one billion to two and a half billiors.

He said

.A the best estimate he could get of tte time necessary to prepare the
ground for the offering of bonds was about 60 days.

He felt that the actual

,enjamin Strong, Esq.,

FEDERAL RESERVE BANK OF NEW YORK

4/16/17.

campaign itself should be very short and sharp, perhaps a fortnight.
I got at least this result from the conference, - that there

was no use of our worrying about our connection with the matter for the
next week or ten days and that he had no idea of offering the whole
five billionsat once.
while.

Those two things made the trip at least worth

I did not like to keep him longer than necessary as he was ex-

tremely busy and said so.

I rather got the impression that there would

not be over much consultation with Federal reserve circles, that he would

make up his mind and then tell us what he was going to do and what we were
to do.

Of course, you can readily recognize what a satisfactory position

this is for those connected with the System!

On Fridw morning-Mr, Alexander came in and Mr. Treman and I had
quite a len; talk with him, during the course of which he outlined the
plan which he had proposed some little time ago very confidentially, looking towards the establishment of a national committee to take charge of
the distribution of the bonds with the Federal Advisory Council as its
nucleus.

The reason for the selection of the latter was because it was an

efficient body already in existence with a very representative personnel,
which, with additions here and there, would be an effective body.

He felt

that the creation of a national committee would be more effective than local district committees.

I fully agree that there should be national con-

ferences, but I rather feel that if the matter is organized outside of the

Federal Reserve System we shall be likely to sink into the position of a
mere depositary, which is not the part I.should like to see us play in this
important matter.

I an going to try to have a little talk during the next

day or two with some bond men in the city with whom I think the Secretary
is apt to consult in order to get their views on the subject.

d.DERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

4/16/17.

mentioned to Er. Alexander the question of the depositing

of the proceeds only with member banks or with the member and nonmember
banks where the funds originated.

He said that he thought we would gain

much more by acting in a big broad way and recognizing all kinds of banks
than by. merely depositing with member banks.

Iregory, of Rochester, had

expressed a similar view the day before in our office.

He said the non-

member banks would be pretty cool towards the matter if they were ignored
in deposits.

At 1:30 Friday I went up to lunch with the executive committee of
the Advisory Council.
:low;

There were present Messrs. Rue, Morgan, Wing and

2organ being ill.

They expressed the same view in regard to deposit-

ing with nonmember banks.

I find, however, that the Federal Reserve Act is very specific
and does not permit the Treasurer to deposit with any but member banks. Mr.
Warburg, I think, is rather keen to have the funds all actually transferred
to us and let us lend them back by rediscounts to our member banks.

gather from your bully letter of April 4th, for which I have not thanked
you, that you have somewhat the same idea, based on the experience and practice of the Bank of England.

I think, however, that considering the size

of our country and the size of the transaction, that we ought to handle the

matter with the least possible dislocation of funds and credit and that
therefore, as far as possible,

the funds should be left where they origi-

nated until actually needed, at which time they should be drawn into the
Federal reserve banks and checked upon there by the aovernment.

Whether

this should be done in the fort of deposits in member banks (or in
member
and nonmember banks) or by way of payments in instalments, is largely a
detail, except that the former method introduces the principal of direct

.JERAL RESERVE BANK OF NEW YORK

Benjamin Jtrong, Esq.,

4/16/17.

Government deposits in member banks, which Warburg objects to.

7ith

regard to the member banks getting back the money by rediscounting I do,

not feel as though rediscounting had become normal enough in this
country
to Make this a method which would be availed of sufficiently freely to
prevent much dislocation.

Certainly there is no discount market by which

we could return the funds promptly to the use of commerce and industry.
This ]has been a good deal of a digression.

To return to the

meeting of the Advisory Council's committee, the main thing discussed
was
the transfer of the funds without disturbing conditions, the principles
which should obtain in the taxation, the amount of bonds which
should be

placed on the first issue, the opinion there being not
more than one billion with a fixed limit of amount, so as to produce substantial.over-subscription and enthusiasm, the idea being that the first issue
would be

merely a feeler which would enable more intensive plowing later in
fields
that seemed promising.

I also discussed with than the Hayes bill which,

as I think you know, proposes to put a tax of 1/10 of one per cent
on the

checks of all nonmember banks which do not keep a balance with
their Federal reserve bank under an amendment now proposed by the Federal
Reserve
Board.

There was some talk of bringing out this bill in connection
with

the proposed amendment.

I have been urging that it should at least be

postponed until after the amendment was passed and we had given the state
institutions an opportunity to keep deposits with us voluntarily.

also find that in many of the states, New York for instance,
the laws would
not permit nonmember institutions to keep such deposits,
thing of a snag to say the least.

which

seems some-

The more 1 think of this bill the more

I believe it would be inadvisable to bring it along at the
present time or
in the near future.

We aught first to get our state

amendments through

ERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

and then go at them and get a lot of voluntary members and depositors.
Later on this might be introduced as a lash to bring in the laggards,

but just at present it would serve to stir up and solidify intense opposition to the System at a time when the System is just about to have its
first test an

'.ants the good will of all as far as possible rather than

ill will of nearly three quarters of the banks of the country.

the

it extretely doubtful whether it 17ould pass, and if it should be

thin

brought up, fought out and defeated we would be in a much worse position
than if it had never been broached.

Incidentally it would be impossible

for the Federal Reserve System to avoid taking a position on one side or
the other of such a fandamental fight as this would be.
A.t the bottom of page 3 in your letter of April 4th you say, "The

crux of the arrangement really lies in the willingness of the Secretary
of the Treasury to make the fiscal agency of the Reserve banks an active

one'

I fully agree with this.

I fear, however, that we are not to be

put in a very responsible position.

I rather think the Secretary is apt

to want to have a pretty active hand in dealing with the matter himself.
Your telegram just received regarding Cunliffe, etc., emphasizes
the desire that we should have an important position in the financing. I
think I will try to see one or two peoi.le to-morrow on this subject who

ay have some influence in presenting this view.

I will talk over with Ir. Treman to-morrow your suggestions with
rd to Lord Cunliffe, who by the way, the papers say has arrived in
Canada,and will find out from Mr. Morgan on his return from Washington,
probably Wednesday, what his plans are and advise you.
I have just been advised that the Senate

put

amendment to

the bond bill permitting the Secretary to delosit the funds with nonmember

,ERAL RESERVE SANK OF NEW YORK

Benjamin Strong, Esq.,

4/16/17.

21;
banks.

I have not, however, seen the text of this.

We have discussed your suggestion that we should expand our
force in view of the new developments.

We are doing this as far as

but
the clerical staff is concerned as fast as we can find the people,

this is extremely difficult as you may imagine.

We have felt that we

had better wait a few days longer before expanding our staff among the
higher salaried men to see what our connection with the situation will
be.

In the meantime we are making inquiries as to men we could possi-

blzT obtain temporarily from banks or bond houses to help us.

Yesterday, I engaged R. M. Gidney as my assistant.

You will

remember that he was with Miller in Washington for two years and of
late has been on the examining staff of the Federal Reserve Baard.

think that he is promising material and at any rate was the most available person in sight.

We had a very interesting talk on Saturday morning with Sir

Hardman Lever whom James Brown brought in.

I enclose copy of memoran-

dum of our conversation which I dictated afterwards.
Sincerely yours,

Chairman.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.

PJ/RAH
Enc.

'2T

---5qVIDAPPF17Misc.

FEDERAL RESERVE BANK
OF NEW YORK

PJ/RAII

(TO BE MAILED)

500 p.m.

roltpi

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:

April 18, 1917.

Benjamin Strong ELI
4100 Mentview 2ou1evard
Denver Col.

Unable yet to get news of arrival of commission
expanded Stop

Pierre Jpy.
Wage. Federal Reserve Bt.

Our orTanization being

Very satisfactory conference with clearing house committee this

afternoon

120 Broadway.

Stop

POSTAL. TELEGRAPH

COMMERCIAL CABLES

CLARENCE N. MACKAY, PRESIDENT.

RECEIVED AT MAIN OFFICE
,ET 4 CRAMMER LIIILDINCI

^.0 17TH STREET

IVER. COLO.

TELLPHONE : MAIN 4000

The Rostal Telegraph-Cable Company(Incorporated)trarismits and delivers this message subject to the terms and conditions printed on the back of this blank.
100--10606

83 CB K 24

DESIGN PATENT II. 40529

TEL

CB NEW YORK APRIL

1817

lrio

YdF

APR1 9 1917

BENJAMIN STRONG

4100 MONTVIEW BLVD
UNABLE YET TO GET NEWS

DENVER COLO.

OF ARRIVAL OF COMMISSION STOP

OUR ORGANIZATION BEING EXPANDED STOP VERY
WITH CLEARING. HOUSE

SATISFACTORY CONFERENCE

COMMITTEE THIS AFTERNOON.
PIERRE

JAY

POSTAL TELEGRAPH-COMMERCIAL CABLES

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

OPERATOR'S NOTATIONS,
TIME SENT, ETC.

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE POSTAL TELEGRAPH-CABLE

COMPANY (INCORPORATED)

TERMS AND CONDITIONS:
TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING
back to the originating office for
telegram should order it REPEATED;
that
is,
telegraphed
UNRE,PEATED
To
guard
against
mistakes
or
delays,
the
sender
of
a
.
rate is charged in addition. Euless otherwise indicated on its face, THIS IS AN
comparison. For this, one-half the unrepeated telegram whereof it is agreed between the,sender of the telegram and this Company as follows:
TELEGRAM AND PAID FOR AS SUCH, in consideration

in the transmission or delivery, or for non-delivery, of any UNREPEA TED telegram, beyond the

I. The Company shall not be liable for mistakes or delays delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond
amount received for sending the same, nor for mistakes or SPECIALLY
VALUED; now-imany.ease--for delays arising from unavoidable interruption in the

fifty times the sum received for sending the same, UNLESS
working of its lines ; NOR FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS.
delays in the transmission or delivery or for the non-delivery of this
In any event the Company shall not be liable for damages for any mistakes or
fifty times the REPEATED telegram rate, at which amount this telegram, if
telegram, whether caused by the negligence of its servants or otherwise, beyond
stated in 'writing hereon at the time the telegram is offered to the Company for

sent as a REPEATED telegram, in hereby valued, unless a greater value is
equal to one-tenth of one per rent. thereof.
transmission, and an additional So, paid or agreed to be paid based on suchtovalue
necessary
The Company' is hereby made the agent of the sender, witnout liability, forward this telegram over the lines of any other Company when

,
to reiich its destination.
special charge 'will be
Messages will be delivered free within the established. free delivery limits of the terminal office. For delivery at a greater distance a
made to cover the cost of such delivery
and if any
No responsibility regarding messages, attaches to this Company nntil the same are presented and accepted at one of its transmitting offices; notice or
message is sent to such office.by one of this Company's messengers, he acts as the agent of the sender for the purpose of deliveringthe message and any
instructions regarding it to the Company's agent in its said office.
where the claim M not presented in writing within sirty days after the
a The Company shall not be liable for damages or statutory penalties in any
tetegram is filed with theCompany for transmission.
The above terms and conditions shah be binding neon the receiver as well as the senderOf this telegram.
1.
NO EMPLOYEE OF THIS COMPANY IS A t"THORIZED To VARY ME FOREGOING.
8.

CLARENCE H MACKAY p.R.stoENT.

C ADAMS.

EDWARD REYNOLDS, V/CE-PREST AND GENERAL MANAGER.

RUCH,
VICE,RES4DENT.

CHARLES P.

VICE-PRESIDENT

THE FASTEST TELEGRAPH SERVICE IN THE WORLD

can MF

LASS OF SERVICE
I Day Message
alter
Mesmoe

_.
,asa,
rice Is desig,ated the telegram w1.1 be
as a fast day message.
trans.rAtted

WIESITIE
4,0
,-11q4

TDMOM TELEGAAM
sj4;
York

City, April 21, 191Y..

Benjamin Strong,
Denver.

New York bank and the bankers subscribed over 4400,000,000 at
2-1/2-,. stop.

Change in rate has completely changed attitude stop.

Bank*s now enthusiastic about issue and additional subscriptions
coming in stop.

Other cities subscribing heavily also stop.

issue will be increased to net demands.
Pierre Jay.

Probably

1111111111111r
'SERVICE SYMBOL
sage

Blue

leap

111141 IrE

47b2SENA
WESTERN UNION

Nita

TEL

Night L
one at,
ors afte'rs,

wee symbols
.,eck number of

s)thls is aday message. OtherIts character is indicated by the

bol appearing after the check.
_

UNION

IEWCOMB CARLTON, PRESIDENT

AM
GEORGE W. E. ATKINS, FIRST VICEFRKSIRSIIT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

NIte

Night Letter
NL
If none of these thrse symbols
appears after the check number of
words)this Is aday message. Otherwise Its character is Indicated bythe

symbol appearing after the check.

CEIVED AT

Fial

32.p8C1-i 50 bLU E

Q NEW YORK NY 1201P 21
BENJAMIN STRONG

1_1_632
410P MONTV I EW BOULEVARD DENVER COLO'

NEW YORK BANKS AND BANKERS SUBSCRIBED OVER ONE HUNDRED MILLION

DOLLARS AT TWO AND A HALF PERCENT Tref) CHANGE IN RATE HAS
COMPLETELY CHANGED ATTITUDE STOP BANKERS NOW ENTHUSIASTIC ABOUT

ISSUE AND ADD I TIQNAL SUBSCRIPTIONS COMING IN ,STOP OTHER C T I ES

SUBSCRIBING HEAVILY ALSO STOP PROBABLY ISSUE WILL BE INCREASED
'TO MEET DEMAND

PIERRE JAY.

4 22

POSTAL TELEGRAPH

RECEIVED AT MAIN OFFICE 7
}PTI CRAMMER UILDIN
11TH STREET

;.NVER. COLO.
IAIONV

COMMERCIAL CABLES

MAIN 4100

The Postal Telegraph-Cable Company(IncOrporated)ttansmits and delivers this message ri,')Jer..

435CH 0

I 39P

CB NEWYOk

APE% 21

B ENJ S RONG

ERRE.

JAY

DELIVERY NO.

21(?2--

ne terms and conditions printed on the heck of this blank.

POSTAL TELEGRAPH-COMMERCIAL CABLES
PACIFIC

VANCOUV

OCEAN

JAPAN

SAN FRAN

YOkOHAMA
M iDWAV

BERMUDA

ATLANTIC
OCEAN
IST. VINCENT

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE

amem.AmA

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED)
TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED ; that is, telegraphed back to the originating office for
comparison. For this, one-bait the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED

TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEA TED telegram, beyond the
amount received for sending the same, nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond
fifty Om. the 8Gm received for sending the same, UNLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the
working of its lin.; NOR FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS.
In any event the Company shall not be liable for damages for any mistakes or delays ie the transmission or delivery, or for the non-delivery of this
telegram, whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if
sent as a REPEATED telegram, Is hereby valued, unless a greater value is stated in writing hereon at the time the telegram is offered to the Company for
transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary
to reach its destination.
Messages will be delivered free withm the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be
made to cover the cost of such delivery.
I. No responsibility regarding messages attaches to this Company until the same are presented and accepted at one of its transmitting offices; and if any
message is sent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of deliveringthe message and any notice or
instructions regarding it to the Company's agent in its said office.
G The Computry shall not be liable for damages or statutory penalties in any ease where the claim is not presented In writing within sixty days after the
teiegram is filed with the Company for transmission.
The ...hove terms and conditions shall be binding upon the receiver as well as the sender of this telegram.
1.
.11PLOFT.E OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.
8. NI
CLARENCE H MACKAY PRESIDENT,

CHAR'LES.0 ADAMS,
VICE-PRESIDENT

EDWARD REYNOLDS, VICE-PREGT AND GENERAL MANAGER.

CHARLES P. BRUCH,
VICE-PRESIDENT.

THE FASTEST TELEGRAPH SERVICE IN THE WORLD

OPERATOR'S NOTATKOA
TIME SENT, Ere,

Misc.

FEDERAL RESERVE BANK
OF NEW YORK

Pi/ RAN

(TO BE MAILED)

Postal
114FA

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:
Benjamin 6troruo

jail 21, 1917.

on evard
.)env r 001

4100 LiontvieVi

:o news get from eunliffe althouch tapers indicate Commission has arrived

Pierr Jay
Chge. Pod. Res. Bank
120 Broads.ay

8-2

Misc. 34

FEDERAL RESERVE BANK
OF NEW YORK

FJOAH
7,est

ru Union

(TO BE MAILED)

114b a.m.

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:

Bsq
4100 :7ontview

Benjamin Strong

Boulevard

Denver

Col.

Yew York banks and bankers subscribed over one hundred million ,dollars at two and
Stop
Change in rate has completely chanced attitude
Stop
a half percent
Stop
Bankers now enthusiastic about issue and additional subscriptions comi ng in
increased
Probably
issue
will,
be
Stop
Other cilles subscribing heavily also
to meet demand
Pierre Jay

B-2

Chce. Fed. Reserve Bank
120 Broadway

POSTAL TELEGRAPH - COMMERCIAL CABLES
CLARENCE H. MACKAY, PRESIDENT

RE'EIVEO AT MAIN OFFICE
,ST4 CRAMMER UILDIN
%;420 17TH **MEET

r'ENVER. COLO.
NIONir

MAIN 4100

DELIVERY NO.

The Postal Telegraph-Cable Company(Incorparated)transmits and delivers this message subject to the terms and conditions printed on the back of this blank.
11111-3W96

DZS1GN PATENT Ea 40529

134Go.6V.

542pm 19
'1,11-(ONCD

liewyork pril1917
-------------

Benj.strong,

By--4-2==

4100 Montview Bldg. Deaver Colo
afternoon
Will see Counliffe washington tomorrow/ and wire you plans understand
it is uncertain whether commission

2ierre Jay.

g es to chicago

POSTAL TELEGRAPH-COMMERCIAL CABLES
YORK

ATLANTIC
OCEAN
DT. VINCENT

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE POSTAL TELEGRAPH-CABLE COMPANY (

.INCORPORATED)

TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED; that is, telegraphed back to the originating office for
comparison. For this, one-half the nnrepeated telegram rate is.charged in addition. Unless otherwise indicated on its face, THIS 18 AN UNREPEATED

TELEGRA Iii AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shah not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEA TED telegram, beyond the
amount received for sending the same, nor for mistakes or delays m the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond
fifty times the sum received for sending the earns, UNLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the
corking of its anee ; NOR FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this
telegram, whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if
sent as a REPEATED telegram, Is hereby valued, unless a greater value is stated in writing hereon at the time the telegram is offered tothe Company for

transmission, and an additional Burn paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
8. The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary

to reach its destination.
4. Messages will be delivered tree within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be
made to cover the cost of such delivery
I. No responsibility regarding messages attaches to this Company until the same are presented and accepted at one of its transmitting offices; and If any
message is sent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of deliveeng the message and any notice or
,inetructions regarding it to the Company's agent in its said office.
6. The Company shall not be liable for damages or statutory penalties in any ease where the claim is not presented in writing within sixty daysafter the
telegram is ffied with the Company for transmission.
r. The above terms and conditions shall be binding upon the receiver as well as the sender of this telegram.
8. h
IMPLOrPIE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.
.

cHAfk,

Ab ADAMS,
VICE-PRESIDENT

CLARENCE H. MACKAY. PRESIDENT.
EDWARD REYNOLDS, VICE-PREST ANO GENERAL MANAGER.

CHARLES P. BRUCH.
VICE-PRESIDENT.

THE FASTEST TELEGRAPH SERVICE IN THE WORLD

OPERATOR'S NOTATION*,

TIME SENT, Eve

FEDERAL RESERVE BANK
OF NEW YORK

April 23, 1917.

Dear Governor Strong:

I have your letter of April 19th relating to the
conference with the Clearing House Committee.

I presume

that Mr. Treman has written you about this as he is a most
faithful correspondent of yours.
We

did

not take up the question of settling for

members, feeling that it was better to let that go along of
its own accord.

If the amendments to the Federal Reserve

Act pass,the banks will all have to settle with us.

If not,

I think that the larger ones will come along one by one. Already one half of the banks are settling.
Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/ RAH

FEDERAL RESERVE BANK
OF NEW YORK

April 23, 1917.

Dear Governor Strong:

We have just had the enclosed telegram from
Washington regarding the note issue.

These notes are

going to be made payable at the Treasury of the United
States or at any Federal reserve bank.

I believe that

our subscriptions to them amount to about $140,000,000.
The probability is that the Secretary will increase the
issue if he finds it has been over-subscribed as it certainly has been.

I will have a talk with the Board to-morrow
about methods of putting out future issues of these certificates and will wire you the views which seem to prevail there.

Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.

PJ/RAH

COPY OF TELEGRAM RECEIVED FROM WASHINGTON

April 23, 1917.

Reveking all

revious instructions, you are now rquested to close

your subscription list for Treasury certificates Tuesday morning at ten
o'clock, your time, telegraphing me at once total amount subscribed.

Upon

receipt of all telegrams Sectetary of Treasury will make allotments and will

wire you amount of celLficates bearing date April 25th placed at your disposal which will either be forwarded to you or held here for your acepunt

pending your detailed instructions.

You can issue your interim receipts

against which you should receive laynint on ednesday placing proceeds to

the credit of the United States Treasurer, wiring him during business hours
Tuesday amount which will be placed to his credit on Wednesday.

SubscrWtions

received by you after ten o'clock Tuesday morning will be dealt with in a few
days by additional allotments.

FEDERAL RESERVE BANK
OF NEW YORK

April 23, 1917.

Dear Governor Strong:

We have been having a meeting to-day of all the updistrict examiners, including Mr. Malburn and his chief assistant, Mr. Richmond.

We all feel that it has been a most satis-

factory day for us and I think the examiners are pleased with it
on the whole.

A suggestion was made an hour or two ago that it

should be a quarterly affair and Mr. Malburn expressed himself
as thoroughly in sympathy with this idea.

What a change:

Mr. Sailer had the meeting well organized under topics,
etc., and has been managing most of it as I have had to be hopping about in regard to the sale of the Treasury notes and other
matters which, by the way, have been greatly facilitated by our
private wire to Washington installed yesterday.

The examiners

expressed the view that during the past year there has been a distinct charge in opinion among the banks for the better towards
the Federal Reserve System.

I will take up the question of the Trust Companies article and see whether it seems feasible to distribute it to the various clearing houses.

Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
RI/ RAH

Misc.

FEDERAL RESERVE BANK
OF NEW YORK

;stern Union
1:)!7')

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:
April 23, 1917.

Benjamin

trong, Esq.,
4100 Mentview Boulevard

Sewer, Col.
Have arranged with Board to advise me regarding Gunliffes plans as soon as
possible and will then wire you Stop Commission probably going Ihicago
You might see Ounliffe there stop Have installed private ,;ashington wire
Treman Aiken
Stop Secretary Mol,doo giving dinner for Cunliffe Tuesday
Ash you were going to be there
Rhoads Seay and I are invited
kierre Jay
Chge. Federal Reserve Bank
120 Broadway, N. Y.
-2

Misc. 34

FROERAL RESERVE BANK
OF NEW YORK

TJ/RAR

(TO BE MAILED)

Postal
5:1b

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:

ril

1917

Benj,min Strong, Esq.,
4100 Yontview Boulev'ird

Denver, Col.

.111 see Cunliffe Washington tomorrow afternoon and wire you plans Understand

It is uncertain whether commis ,,ion goes to Chicago

pierre Jay
Chge. Federal Reserve Bank
120 Broadway.

Digitized
B-2 for FRASER

S OF SERVICE

SYMBOL

Day Message

Day Letter

Blue

Night Message

Nite

Night Letter
NL
If none of these three symbols
appears after the check number of
words ) this is a day message. Otherwise its character is indicated by the

WESTE
WESTERN U

TEL

uti

UNION

CLASS OF SERVICE SYMBO
Day Message

Day Letter

Blue

Night Message

Nite

Night Letter
NL
If none of these three symbol)
appears after the check number oi
wards this is aday message. Otherwise its character is indicated by thi

NEWCOMB CARLTON, PRESIDENT

symbol appearing after the check.

symbol appearing after the check

RECEIVED AT

'917 APR

?41.06A 58 BLUE

pm 8

Q NEWYORK NY '1 031A -23

BENJAMIN STRONG 1508
:4100 MONTVIEW BLVD DENVER COLO

HAVE ARRANGED WITH BOARD TO ADVISE ME REGARDING CUNUFFES PLANS

AS SOON AS POSSIBLE AND WILL THEN WIRE YOU STOP COMMISSION
PROBABLY GOING CHICAGO YOU MIGHT SEE CUNL1FFE THERE STOP HAIM

INSTALf:ED PRIVATE WASHINGTON WIRE STOP SECRETARY mcApoo GIVING'DI.NW7
FOR CUNLI FFE 'TUESDAY TREMAN AI KENS RHOADS SEAY AND

WISH YOU 'WERE GOING TO BE 'THERE

PIERRE JAY.

ARE ' I NOTED

ASS OF SERVICE

COPT OF

Fast Day Message

Day Letter
Night Messacie

WESTEAN EIHROM TELEGRAM

Night Letter

If no class of service is designated the telegram will be transmitted as a fast day message.

New York City,
April 23, 1917.
Benj. Strong,
Denver.

Will see Cunliffe Washington tomorrow afternoon and wire you
plans.

Understand it is uncertain whether commission goes to Chicago.
Pierre Jay.

FEDERAL RESERVE BANK
OF NEW YORK
April 23, 1917.

Dear Governor Strong:

I have your letter of April 19th in which you ask me to
keep you advised of Lord Cunliffe's arrival, etc.

This was an-

nounced in the papers yesterday and you no doubt saw it in the Denver papers this morning.

I have been trying to get you on the telephone this afternoon to tell you that the Federal Reserve Board has arranged to have
the Bank of England open special accounts relating only to the proceeds of no;e and bond issues in each of the Federal reserve banks,
to which the proceeds of certain portions of the note and bond issues

will be transferred by the Treasurer of the United States and from
which they will be paid out on order on the Bank of England to Morgan
or in any other way they may direct.

Such accounts with the Bank of

England will be entirely outside of any arrangements or relations
which may exist by reason of the agreement you have been negotiating.

In case I do not get you on the telephone I want to say that
I have talked this over with Mr. Curtis and I do not see that this will
be inharmonious with your plan of having one account with the Bank of
England in connection with the transactions the agreement contemplates.
Curtis, I think, rather feels it would be better to have even this account as a single account with participations, but I believe that on the
whole in view of its magnitude and its special purpose the single account method might not be applicable to this special form of transaction.

..4K OF NEW YORK

Benjamin Strong, Esq.,

4/23/17.

I am going over to Washington and shall be there part of tomorrow morning and all to-morrow afternoon.

I have asked Mr. Warburg

to try to arrange for me to meet Lord Cunliffe and establish relations.
Treman and Aiken are going over on the twelve o'clock train and will
not reach there till just before the dinner hour.
I have seen him,

Faithfully yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/111Cri

I will wire you after

OF SERVICE srnsoL

5- rEkASNA

Message

Lotter

Blue

t Message

Nile

Letter

ft L

UNION

WESTERN UNION

wu.

of these three symbols
fter the check inPober of
..is isadaymessaue. Other-

wis

Cs characters indicated Dy the

symbol appearing after the check.

TEL

wv,

Day Message

Day Letter

Blue

Night Message

N ite

Night Letter
NL
If none of these three symbols
appears after the check number of
wordslthis is aday message. Otherwise its character is indicated bythe

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

NEWCOMB CARLTON, PRESIDENT

CLASS OF SERVICE SYMBOL

symbol appearing after the check.

RECEIVED AT

1917APR25 PM 6 31
A480SX 30
US VASHINGTOk SC 71
STRONG

1372

410: N'LVI SN
U

.2.

L.VD DENv'ER COLL

JFFE 1VILL TELERHONE YOU THURSDAY OR FRIDAY

HIS PLANS V:

TAIN SUGuEST YOU DELAY DECISION FILL AF4ER- ILLLPHONI,NG STOP
:ITH6ARBURGH FELEc;,RAM REGARDING YOUR vARTICIPAFION BOND
AT .PRESLNT

:7,0E3 DLL:7Eli)

RVICE

WESTELigN1 UNION
AM

SYMBOL

ty Message

Day Letter

Letter

If none of these three symbote
appears after the chock number of
words >this is a day 'vassal/. Otherwise its character Is Indicated by the
symbol appearing after the check.

Day Message

WESTERN UNION

Nfte

Night Message
Nig.

Blue

CLASS OF SERVICE SYMBOL

NEWCOMB CARLTON, PRESIDENT

Day Letter

Blue

Night Message

Nite

NL
If none of these three symbols
Night Letter

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

appears after the check number of
words)this is a day message. Otherwise its character is indicated bythe
symbol appearing after the check.

RECEIVED AT

jUPLIOATIE OF TILVEOMED rarxIo
3C I-1

N L.

WASHINGTON DC 24
BENJAMINE STRONG
,410

62i
NONTVIEW

1917 APR 25

Nil

713 t
.6<1

BLVD DENVER COLO

CUNLIFrES PLANS VERY UNCERTAIN HE MAY NOT CONEJO

11,-17

NEW YORK HAVE BEEN UNABLE To SIT DOWN AND DISCUSSMATTERS
'TODAY BUT SHALL DO SO TOMOR ,0W AND ADVISE FURTHER STOP

SECRETARY DECIDED

TO INCREASE ISSUE CERTIF1CATEF.TO TWO

HUNDRED FIFTH MILLIONS EQUALLING AMOUNT SUBSCRIBED
STOP OF THIS NEW YORK.T0uK uNE HUNDRED ,THIRTY FIVE
STOP

:WO HUNDRED WILL BE DISBURSED TOMuRhoW BY OUR BANK -THROUGH ACCOUNT

..MS OF SERVICE SYMBOL
Day Message

ay Letter

Blue

WESTE

TEL

words )this is a day message. Ot.
wise its character is indicated by the

symbol appearing after the check.

UNION

CLASS OF SERVICE SYMBOL
Day Message

WESTERN UNION

Nibs
Mint Message
NL
Nipht Letter
V none of these three symbols
appears attsr the check number of

:Pk MP I"

Blue

Nite

Night Letter
NL
If none of these three symbe's

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

NEWCOMB CARLTON, PRESIDENT

Day Letter
Night Message

appears after the cheek numt,c, of
words)this is aday message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT

627
B1

SHELT TWO

AiptiOAlt,

TILISPEOrta

¶TiLX-7,0

AME OF UNITED K INGDON ETCETERA STOP OURS

1917 APR 25

WILL BE ONLY BANK TO

-His AC OUNT STOP HAVE MADE ALL ARhANGEMENT FOR

AM 6

HAVE

\WASHOUT

OF .TRANSACTION SO AS TO REDUCE DISTURBANCE TO MINIMUM

STOP PRESLNT INDICATIONS ARE THAT RESPONSIBILITY FOR COMING BOND
SUE WULL BE GI VEpi LARGELY TO OUR SYSTEM

PIERRE'

fcnel
t ittO
isy14.1

.i/Or

WESTE
TEL

CLASS OF SERVICE SYMBOL
)ay Message

Day Letter

7b2TENT

Blue

UNION

WESTERN UNION

Nits
NL
ayat Letter
If none of these three symbols
appears after the check numb, of
'ght Message

WV.

words this is aday message. Otherwise its character is indicated by the

eymbol appearing after the check.

m,.

NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

CLASS OF SERVICE SYNICOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
Ii none of these three symbols
Night Letter

appears after the check number of
wordsithis is aday message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT
APR

D178CH 72 BLUELtii,

.liO11DrilLMGRAII

Q NEWYORK NY 515P 26
BENJ STRONG

1336

410- MONTVIEW BLVD DENVER COLD

ENDEAVORING TO SECURE CUNLIFFE FOR TUESDAY OR WEDNESDAY EVENING HE
IS DISCUSSING INVITATION WITH ASSOCIATES WE HOPE TO HEAR TOMORROW

MORNING SUGGEST FOL OWING NAMES FOR DINNERVANDERLIP ALEXANDER
WIGGIN HINE SABIN PROSSER MORGAN THORNE FREW ,OODWARD MCGARRAH
SCHIEF LIST INCLUDES ALL MtMBERS CLEARING HOUSE COMMITIEE EXCEPT-

OWNSEND AND MARTINDALE LATTER IS ILL'SUGGEST ALSO PEABODY AND SIR
HARDMAN LEVER BRITISH TREASURY REPESENTATIVE SUGGEST CONSIDERING
LEWIS CLARKE PLEASE WIRE YOUR SUGGESTIONS IN MORNING
PIEGRE JAY.

Form 1206
CLASS OF SERVICE DESIRED
Fast Day Messago

Day Letter
Night Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

WESTE7S-SNA UNION
SVp411
TEL
AM
x

Receiver's No.

11ESTERN UNION

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

New York, Apr. 26, live o'clock P. Li'

Benj. Strong,
Denver.

Endeavoring to secure Cunliffe for Tuesday or Wednesday evening.
He is discussing invitation with associates. We hope to hear tomorrow
.morning. Suggest following names for dinner: Vanderlip, Alexander,
Wiggin Hine, Sabin, Prosser, Morgan, Thorne, Frew, Woodward, McGarrah,
Schiff. List includes all members of Clearing House committee except
Townsend and Martindale, latter is ill. Suggest also Peabody, Sir
Hardman Lever, British Treasury representative. Suggest considering
Lewis Clarke. Please wire your suggestion in morning.
Sg. Pierre Jay.

1/07-c: firoarA3
I

0/6.0tuzio
:76itoxitati

muu.vo

gxiguelt-

)rzot4.,

aniu)

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. F
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon' at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thfcreof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts .for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.
N I G HT MESSAGES

Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters
is,

ular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

in all respects, subordinate to the priority of transmission and

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those

Day Letters shall be written in plain English. Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

delivery of regular telegrams.

is not permissible.
c. This Day Letter may be delivered by the Telegraph Company

by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Mi.. 34
FEDERAL RESERVE BANK

P.T/ RAH

oF NEW YORK

(TO BE MAILED)

Western "nion Day Letter
5:45
.

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:

ri126, 1J1 .
Benjamin 6trong Ssq
4100 Montview bouievard
Denver Colorado

He is discussing
-ndeavoring to aeola14-2=44fe for Tuesday or Wednesday evening
invitation with associates 771017e7 to hear tomorrow morning Sw:gest following
names for dinner Vanderlip ;dexander Wiggin Hines Sabin Prosser Morgan
List includes all members clearing
Frew Woodward McGarrah Schiff
11orne
house committee except Townsend and Martindale Latter is ill Suggest also
,eabody and ir Hardman Lever british Treasury repesentative Suggest considering
Lewis Uarke Pleas- wire your suggestions in morning

Pierre Jay
8-2

Chae. Fed. Res. Bank
120 Broadway
If

J. P. Morgan,

J. P. Morgan 8, Company.

Seward Prosser,

President, Bankers Trust Company.

Charles H. Sabin,

President, Guaranty Trust Company.

Jacob H. Schiff,

_Mahn, Loeb 8, Company.

Thorne_

VinP PrPQ4Ann+

Rum cauolrc
MAY

"NWM

If none

191/

rata %WIVE Imtar

appear
words
wise

CiAA.4.14i:

Lord Cunliffe

Sir S. Hardman Lever

H. e

Accepted

J. S. Alexander,

President, National Bank of Commerce.

James Brawn,

Brown Brothers & Company.

L. L. Clarke,

President, American Exchange Natipnal

W. E. Frew,

President, Corn

A. B. Hepburn,

Chairman, Chase National Bank.

{)1411,41/4`---- F. L. Hine,
Pt

h,
11

President, First National Bank.

G. W. McGarrah,

President, Mechanics & Metals National

J. B. Martindale,

President, Chemical National Bank.

J. P. Morgan,

J. P. Morgan & Company.

Seward Prosser,

President, Bankers Trust Company.

Charles H. Sabin,

President, Guaranty Trust Company.

Jacob H. Schiff,

Taihn, Loeb & Company.

G. J. Thorne,

Vice President, National Park Bank.

4At

Accepted

7-3xchange Bank.

Townsend,

dxala

President, Importers & Traders National

F. A. Vanderltp,

President, National City Bank.

A. H. Wiggin,

President, Chase National Bank.

William Woodward,

President, Hanover National Bank.

Benj. Strong,

Governor, Federal Reserve Bank.

R. H. Treman,

Deputy Governor, Federal Reserve Bank.

J. F. Curtis,

Secretary, Federal Reserve Bank.

Pierre Jay,

Chairman, Federal Reserve Bank.

.Geo. Foster Peabody, Deputy Chairman, Federal Reserve Bank
e.),

-heaLt

/-vvl

-2
/Y2 YyLl

SYMBOL

Blue

ESTE
WESTERN UNMN

Nita

NL
ie1111 three symbols
the check number of
a day message. Othergharacter is Indicated by the

appearing after tho check.

TEL
NEWCOMB CARLTON, PRESIDENT

Li ION
AM

GEORGE W. E. ATKINS, FIRST VICE-RESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nits

NL
Night Lotter
If none of these three symbols
appears after the check ,number of
words) thls Is aday message. Other
wise its character In Indicated bythe

symbol appearing after the thick.

;,CEIVED AT

1917 A,oR

i354CH 88 NL
'

DENVER COLO 26

PIERRE JAY

9098

FEDERAL RESERVE BANK NEW YORK NY
APPROVE ALL DEFINITE SUGGESTIONS FOR DINNER INCLUDING PEABODY AND
LEVER STOP YOU TREMAN AND CURTIS OF COURSE STOP FOLLOWING

ADDITIONS IN ORDER NAMED HEPBURN JIM BROWN LEWIS CLARKE TOWNSEND AND

AIKENkTOP PARTICULARLY ANXIOUS MORGAN ATTEND IF HOWEVER IMPOSSIBLE
IMSTITUTE DAVISON OR LAMON

STOP LATER DATE WILL SUIT ME AS WFT:ri

IF MORE CONVENIENT STOP ABOUT BOND PLAN SUGGEST YOU SUBMIT ALL SUGGESTIONS
E WRITING TO SECRETARY IN BRIEF TABULATED FORM SENDING COPIES
ill

urn
IRMA, turtle bytriULIIN
after the check (number of
,)this Isaday message. OtherIts charr,,ter Is indicated ey the
Del appearing after the check.

If nom of tbiiithèdyiiióls

Li go Le CPsiegierE Auk IV!
NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

AECEIVED AT

B54CH SHEET TWO

TO BOARD TO AVOID CRITICISM STOP FEELING

vnu ALL
BENJAMIN STRONG.

i917 APR

TIP

appears after ths check (number of
words,this isaday message. Otherwise its character is Indicated by the
symbol appearing after the check.

kJ!:

TOP AND KEEN TO SEE

4 30

CLASS OF SERVICE

WESTE0/SNA UNION
TEL
AM

SYMBOL

Day Message

Day Letter

Blue

Night Message

Nite

NL
If none of these three symbols
Night Letter

appears after the check number of
words)this Is a day message. Otherwise Its character is Indicated by th e

NEWCOMB CARLTON, PRESIDENT

symbol appearing after the check.

CLASS OF SERVICE
Day Letter

Blue

Night Message

Nits

NL
If none of these three symbols
Night Letter

appears after the check number of
words ithis Is aday message. Otherwise its character Is Indicated by the
symbol appearing after the cheek.

;-.'17

RECEIVED AT

APR 26 FA 5

Pltr.2-7Tn
B528A 41BLUE
O. NEWYORK NY 130P 26

BENJAMIN STRONG

Vla

'Lob

4100 MONTVIEW BLVD DENVER COLO

REPLYING YOURS TWENTY SECOND HARDING AND DELANO ARE URGING SECRETARY
TO MAKE SYSTEM RESPONSIBLE FOR BOND ISSUE ACCORDING TO MY PLAN STOP
THEY THINK IT INADVISABLE FOR

TO WRITE SECRETARY BILL PERMITS AND

CONTEMPLATES DEPOSITS WITH MEMBER AND NONMEMBER BANKS
PEIRRE JAY.

SYMBOL

Day Message

POSTAL TELEGRAPH
rict.....MLI Al MAIN OFTFICIL
1NCT I. CRAMMER UILDING

920 17TH STREET

DENVER,COLO.

TELIEPHONt: MAIN 41E00

COMMER(CIAL CABLES

CLARENCE' H. MACkAY. PRE 5,DENT

DELIVERY M.

he Postal Teiegraph-Cable forivr'; Ir-].or-otEd )transruts and aelivers this message, subject: to VIE tvni4 anc :,,rait ion s
110-49696

75 CB. N. 21

OLSIoN PATENT Its. Sea

329pm.

TEL

NEL,

OB., NEW YORK, Apl. 27, 191C
7 ___ 7 _ "'"
Benjamin Strong,Esq.,
Time
4100 Montview Blvd., Denver, Golo.
Lord Ounliffe accepts for Tuesday evening unless called home sooner

stop. Starting dinner arrangements immediately stop. A comfirtable trip
to you.
Pierre Jay,

POSTAL TELEGRAPH-COMMERCIAL CABLES
ENGLAND
NEVV MUMMA.

PACIFIC

vANcCOVE
A.

OCEAN

JAPAN

"7..1

SAN FRAN

YOKOHAMA

C'Pe5

MICKNAY

ER MVO".

ATLANTIC
OCEAN

THE GREATEST TELEGRAPH AND CABLE SYSTEM IV THE WORLD.

AFRICA
VI4CENIT

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTIi.

THE POSTAL TELEGRAPH-CABLE COMPANY

(INCORPORATED)

TRANSMITS AND DELIVERS THE WilltHIN TELEGRAM"SUBJECT TO' THE FOLLOWING TERMS AND CONDITIONS':
To guard against mistakes or delays, the sender of a telegram should order it REPEATED; that is, telegraphed back to the originating office for
comparison. For this, one-half the unrepeated telegram rateistcharged i addltiov. Unless otherwise indicated on its face, THIS IS AN ITN-REPEATED
TELEGRAM AND PAID FOR AS SVCH, ngonsiderttion wfrereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for Mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the
amount received for sending the sante; nor for mistakes or delays In the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond
tifty times the sum received far sending he sanag,..LTLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the
working of ita lines NO .10FISERROP,A IN :cfp'HgR OR OBSCURE TELEGRAMS.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this
telegram, whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if
sent asp, itEPEATED telegram, le hereby, vained, unless, agreater. value is stated in writing hereon at the time the telegram is offered to the Company for

transmission, and: in additional sum paid or agreed Se be paid bilged on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary

to reach its destination.
4. M4Fsages will be delivered free within the estabrIshel free dtaivery limits of the terminal office. For delivery at a greater distance a special charge Will be
made to cover the cost of such delivery.
6. No responsibility regarding messages attaches to this Company until the smile are presented and accepted at one of its transmitting offices; and if any
message is sent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of delivering the message and any notice or
instructions regarding it to the Company's agent in its said office.

The Company shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty daysafter the
telegram is filed with the Company for transmiasion.
The above terms and conditions shall be binding upon the receiver as well as the sender of this telegram.
NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.

_ES C. ADAMS,
VICE-PRESIDENT.

CLARENCE H. MACKAY, PRESIDENT.
EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER.

CHARLES P. BRLICH,
VICE-PRESIDENT.

THE FASTEST TELEGRAPH SERVICE IN THE WORLD

OPERATOR'S NOTATIONN

TIME SENT, Li-c.

Form 1206
CLASS OF SERVICE DESIRED
ere-

WESTE111SAN

st Day Message

...ly Letter

UNION

STERN UNION

Night Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Check

TEL V-31 AM
II::

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

New York City, Apr. 27,

Mr. Benj. Strong;
Denver.

Lord Cunliffe accepts for Tuesday evening unless called home sooner
stop.

Starting dinner arrangements immediately stop.

you

Pierre Jay.

Receivers No.

Comfortable trip to

Time Filed

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS'.
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison.
--half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS b Cll.
,onsideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
,ived for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
;rams.

In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
,iqed by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
ting hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
lestination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
owns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender',.n request, as his agent and at hisexpense, endeavor to
,ontract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
)3, one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
lied with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
he foregoing terms.
No employee of the Company is authorized to vary the foregoing.

THE WESTERN UN ION TE LEG RAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
'AST DAY MESSAGES
A full-rate expedited service.
I GHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
ad delivered not earlier than the morning of the ensuing business day.
)AY LETTERS

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
etter" service, the following special terms in addition to those enu-

kerated above are hereby agreed to:

Day Letters may be forwarded by the Telegraph Company as a

. ferred service and the transmission and delivery of such Day Letters
,

in all respects, subordinate to the priority of transmission and
in plain English. Code language

Digitized
liveryfor
of FRASER
regular telegrams.
http://fraser.stlouisfed.org/
Day Letters shall be written
ermissible
not Reserve
Federal
Bank of St. Louis

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
A.
be mailed at destination to, the addressees, and the Company shall

POSTAL TELEGRAPH

COMMERCIAL CABLES

CLARENCE H. MACKAY. PRESIDENT

DELIVERY NO.

The Postal Telegraph-Cable Company(Incoroorated)transmits and delivers this message subject to the terms and conditions printed an the naL1( 31thr, hl,nk.
Q1313b1-619

DESIGN

49Chrj

Govt

PATENT Ns. 4C43

1026A

rew York NY May 14-17
T'enj Strong Fsq
17,

d 'es Rank r'hicago Ills

Telegram received our committee in Washington worked

steadily

till Sunday afternoon think prospectus now extremely satisfactory

application blank requires applicant to state bank on which check
will probably be drawn have examined additional office space
which can be hired when organization is determined stop organization
can progress rapidly now that details are completed shall now
take up with committee question of security for government deposits

Pierre Jay.

OSTAL TELEGRAPH-COMMERCIAL CABLES

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE' POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED)
TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
To guard against mistakes Or delays, the sender of a telegram Should order it REPEATED: that is, telegraphed back to the originating office for
sosaparison. For this, one-half the mirepeated telegram rate is charged in addition. Unless Otherwise indicated on its face, THIS IS AN UNREPEATED

TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed,between the sender of the telegram and this Company as follows:
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, Cr for non-delivery, of any UNREPEATED telegram, beyondthe
amount received for sending the same; nor for mistakes'or ,delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond
any times the BEM received for sending the same, UNLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the
working of its lines ;.NDII FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS.
2. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission
or delivery, or for the non-delivery of this
olegram, whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if
sent as a REPEATED telegram, is hereby valued, unless a greater value is stated in writing hereon at the time thetelegram is offered to the Company for
transmission, and an additiOnal .sumpaid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
IL
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary
to reach its destination.
4. Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at
a greater distance a special charge will be
elade-to cover the cost of sudh delivery.
6. No responsibility regarding messages attaches to this company until the same are presented and accepted at
one of its transmitting offices; and if any
message ts, sent to such office by one of this Company's messengers, he acts as the agent of the tender for the purpose of deliveringthe message and any notice or
Instractlein4 regarding it to the Company's agent in its said office.
The Company shall not be liable for damages or statutory penalties in any case where the claim Ts not presented in writing within sixty days after the
celegram is filed with the Company for transmission.

Tlie above terms and conditions shall be binding upon the receiver as well as the sender of this telegram.
I. Np EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.

AIA3,LES C. ADAMS,
vICE-PRESSOENT.

CLARENCE H. MACKAY,, PRESIDENT.
EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER.

CHARLES P. BAUCH,
VICE-pRESIDENT.

HE FASTEST TELEGRAPH SERVICE IN THE WORLD

etNiNATOR'S myr-Arekvik
TIME SENT, am

Misc. 34

FEDERAL RESERVE BANK
OF NEW YORK

PJ/R_H
10:45 a.m.
rostal

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :

May 14, 1911.

Benjamin Strung Ea
Care Yederai ieserve hank

UhiCaa0

Telegram received Our committee in Washington worked steadily till Sunday

afternoon
Think prOspeotUB now extremely satisfactory Application blank
requires applicant to state bank on which check will probably be drawn Have
examined additional office space which can be hired when organization is
deturmined Stop Organization can progress rapidly now that details axe completed
Shall now take up with Committee question of security for Government deposits

Official business
Government rate
Charge Treasury Department

B-2

Pierre Jay

FEDERAL RESERVE BANK
OF NEW YORK

May 15, 1917.

Dear Governor Strong:

I understand there is a substantial volume of irench
coin in the present gold we purchased from Morgan.

What would

you recommend with regard to keeping this coin if we can arrange

to purchase it from Morgan & Company on a satisfactory basis.
Some time ago I believe you felt that there was some doubt as
to the advisability of our keeping French coin.-

I understand that there are no sovereigns in the shipment.

The question has also arisen as to whether we should
purchase any more gold if more should come in from abroad.

have at present about .;70,000,000. which will give us quite a
round amount of bars.
Very truly yours,

Chai

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Cal.

PJ/BH

FEDERAL RESERVE BANK
OF NEW YORK

ir.

May 17, 1917.

MAY 2 2 1911
Dear Governor _Lrong:

At our LibertY Loan meeting yesterday the resolution
enclosed herewith was brought up, and after some discussion was
passed, the last paragraph of the resolution being omitted and
Mr..WoodViard and I refraining from voting.

I think that there

was rather a feeling among the bankers present that the matter
should be taken as an expression of their desire that the Federal reserve bank should help than as an expression of their opinion as to the exact course to be followed.

The publicity committee is getting on a splendid head
of steam, and the distribution committee is also doing mighty
good work.

Mr. Woodward's committee has gotten to work and Mr.

Gregory is at the head of that department.with Brady as his chief

assistant and I believe Ashmead of Morgan looking after the subscription end of it
'

There is a meeting in Washington to-day of

VNO

represen-

tatives from each of the Federal reserve districts to unify the
accounting and general methods of handling the loan.

Mr. Anderson

has been in Washington quite a little of late and is there again
to-day, our representatives being Messrs. Anderson, Gregory and
Forbes.

Mr. Emerson is also over there to meet the publicity men

of some of the nearby district committees.

.ZDERAL RESERVE BANK OF NEW YORK

5/17/17.

Benjamin Strong, Esq.,

hope this is the last time we shall have to have recourse
to Washington by our important people.

The Hardwick amendment has been attached firmly to the
Federal Reserve Board's amendment bill in both Houses.

The bill

is now in conference and it is hoped that it will come out to-day.
I will try to write you later from time to time;

this is

just a few jottings that occur to me at the' moment.

Very truly yours,

P. S.

I understand that the bill permitting the state

institutions to keep their cash reserves with us even though they
are not members of the System is now before Governor Whitman, having passed both houses.
its being adopted.

(9--4&

Benjamin St ong, Esq.,
4100 Montview Boulevard,
Denver, Col.

PJ/RAH
Enc.

I assume that there is no question about

WHEREAS it is of the greatest importance, in
order to avoid money market disturbance, that as large an amount
as possible of Government short term certificates of indebtedness be placed, preparatory to the issuance of long term loans,

RESOLVED that this committee urge that the
Federal Reserve Bank recommend a special rate for rediscount to

member banks of commercial paper running for not longer than
ninety days, equal to the rate of interest at which the Government certificates of indebtedness are issued, on condition that
banks availing themselves of such special rediscount rate purchase through the Federal reserve bank Government certificates
of indebtedness to an amount equal to such rediscounts, and farther

RESOLVED that.\ this committeeNzrge upon banks
in this district to avail themsel e

tent of such facilities for converti

oomme cial jper held by

them into Government certificates of in ebtedn

t possible ex-

to t e fall

!Tr

AM!. limmEl
,ERVICE DESIRED

)

Message

NV ESTE

VIESTERNUNION

;Vlessage

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

UNIUN

TEL

//..,
%%Tr

M.eivees No.

Check

Time Filed

NEWCOMB CARLTON. PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Dew York City, May 17, 1917.
6:40 P. M.

Benjamin Strong,
Denver.

Insistent demand every day from Liberty Loan Committee of our distributing
committee that reserve bank shall establish rate for rediscount of loans and
government bonds stop. Warburg reports same demand from other Reserve districts
and thinks we Should act soon. Treman, Curtis and I feel 3-1/2X, is proper rate.
Some members Loan committee favor 3-4; stop. Warburg thinks 3-1/2 proper rate.
Please wire your views stop. Amendments in conference but report delayed owing
to tremendous opposition to Hardwick amendment by commercial interest. Amendment
may not be passed for several days stop. Vanderlip touring larger cities of state.
Reports insistent from private bankers to know what Federal Reserve bank will do
Have we not got to make a special rate whether or not the amendments pass.
stop.
I am satisfied it would clarify situation tremendously if we could act promptly
stop. Next issue Short term certificates will be announced tomorrow probably at
3-1/4%.
(Sg.)

Pierre Jay.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERN'
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. i'or
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR A SUCH.
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond Hi, amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants Or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
S. No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
IN

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
AST DAY MESSAGES
A full-rate expedited service.
NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night
Letter rate for the transmission of 50 words or less and one-fifth of

the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
,Letter" service, the following special terms in addition to those enu-

inerated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
"deferred service and the transmission and delivery of such Day Letters
is,

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In' further consideration of the reduced rate for this special "Night

Letter" service, the following special terms in addition to those

Day Letters shall be written in plain English. , Code language

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

of regular telegrams.
-

complete discharge of the obligation of the Telegraph Company to

deliver.

ular telegrams under the conditions named above.

in all respects, subordinate to the priority of transmission and

is not permissible
c. This Day Letter may be delivered by the Telegraph Company
tdelivery
t by telephoning the same to the addressee, and such delivery shall be a

This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

If.

enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Misc. 34

FEDERAL RESERVE BANK
OF NEW YORK

Sent by

st,,,,rx-

Jon

(SEND TO FILEb)

5!,

COPY OF TELEGRAM

'NU DWI_
teity I 91917
, 17, 1917.
nenjamin

Bog

4110 Mentviev

Ilerodo

Deny

tnoistent dematd e oh

from Liberty Aan .3ommittee and ail dietributind

-T:= shall ost-alisn rate for rediscount of loans on
Irom other Reserve districts
:urg reiortb
I feel three and one half
we shoTtld sot soon Troman .,urtin
t is ireer rate on membcrs loan commItto, f.vor throe ,rolont to
thinks thrtw and one hal: rcent iroer rate
:Tour views

lommittees that reserv,_bands

.3tsp

.:mendments in conference but re;ort dt14.,:.ed avina to tremendous oiliosition
to
not be pa3:4),i for
k 4.,m4ment by cenmv,roll interests ..:end,.nt
oities
of
state
rorte insintence
several days .A.op Vana rill tourint;
on i.art of bankers to know what Federal reserve bank will do .;:top Have e not
to make a seol..,1 rate whether or not the att-Ite-rents kass ;la satisfied it
Digitized
e-sfor FRASER
could act 2romit1y _top Next issue
_ad cLzrify situation tromendously if
http://fraser.stlouisfed.org/
ahnyt tnym m.ytifinntog will ho LItnAtinnell taller/Pram nvehnhlss nt thyon nngi nnn

Federal Reserve Bank of St. Louis

(

Misc. 34

FEDERAL RESERVE BANK
OF NEW YORK

Sent by

(SEND TO FILES)

:n Union
:'er
COPY OF TELEGRAM

41'4

MING ilk

MAY 1

I- 1917.

miaggekoc

Erati

Zr1.1 ro-HWitrw Ikstiovs.rd
.4,nvo,r

'eau:mixt; eaarnittoe authorized s uo1.1 rate for
Thanirs for your telegralas
011o rolf ,:433..cent for ninety day
Irovornment bond discoants of throe
subject to ohzince at any time :API: No announocinent made ye t _top 1.)onsaine.
matter informally with .'..oard and letidirc Now York banters .top robably
root ie.-lb/Jo to
e thout.,tit it
definite') OGno lust= hiontiv '-)tap
rack
fro.ra clottring holAse members su seztod in your telegram out
ner toj lodward
9 :Nis* ril4t ters informally with le;.clin

ill

dinner at Iiia 1-413%1641 next INC,*

tO y lar
to month

hinic NAter on be

jutd niQmsalig

utifction Rented vonies :.nd listala old buildina tally from r.onth

Digitized
B - 5 for FRASER

.F. ;les. Bank

7 !ere jay

ERAL RESERVE BANK
OF NEW YORK

FJ/RAH
Western Union
6:30 p.m.

Day Letter

Can
/
r.771

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

Insistent demand each day from Liberty Loan Committee and all
distributing committees that reserve banks shall establish rate
for rediscount of loans on Government bonds Stop Warburg reports
PamP demand from other Reserve districts and thinks we should act
soon Treman Curtis and I feel three and one half per cent is proper rate Some members loan committee favor,..thrce precent Stop
Warbtrg thinks thrce and one half percent proper rate Please wire
your views Stop Amendments in conference but report delayed owing
to tremendous opposition to Fardwick amendment by commercial .interests
Amendment may not be passed for several days Stop Vanderlip touring larger cities of state reports insistence on part of bankers to know what
Federal reserve bank will do Stop Rave we not put to make a special
rate whether or not the amendments pass .Am satisfied it would clarify
situation tremendously -if we could act promptly Stop Next issue short
term certificates will be announced tomorrow probably at three and one
quarter.P er cent.
P. J.

Form

Letter
Message

Night Letter

UNION

Blue

Nite

If none of these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character is indicited by the

NEWCOMB CARLTON. PRESIDENT

symbol appearing after he check.

127-110

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

1,1 ght Letter

If none of these three symbok

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO. ALWAYS

aPTioZ01.21
N11NY SQ 22

FY NEWYORK NY 756P MAY 17 1917
BENJAMIN STRONG.

Mb.

17//be

1330
4100 MONTV I EW BLVD

DENVER COLO

FORGOT TO SAY THAT NOTES SECURED BY GOVERNMENT BONDS ARE
AVAILABLE AS SECURITIES FOR FEDERAL RESERVE NOTES STOP BOARD HAS
SO RULED
PIERRE JAY

611 PM

Form 1206
CLASS OF SERVICE DESIRED
Day Messago

WESTE

47,2a1A1

Letter

UNION

VOSTERNUNION

Receiver's No.

Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL

Check

NEWCOMB CARLTON, PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT
GEORGE W. E. ATKINS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Bow York City,
May 17, 1917.

Benj. Strong,
Denver,

Forgot to say that notes secured by government bonds are available
as securities for Federal Reserve notes.

Board has so ruled.

(Sg4ierre Jay.

Time Filed

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERN'

To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparisol
or Mil
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOF
SUC1
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amour
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum receive
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or dose's,
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, wheth,
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated i
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach il
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor t
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such offic
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram i
filed with the Company for transmission.

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPAN'
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.
NIGHT MESSAGES
up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night
Letter rate for the transmission of 50 words or less and one-fifth of
IAccepted
the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

Letter shall be delivered on the day of its date absolutely and at a
events; but that the Company's obligation in this respect is subjee
to the condition that there shall remain sufficient time for the trati.
mission and delivery of such Day Letter on the day of its date durin
regular office hours, subject to the priority of the transmission of re
ular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the no.
ensuing business day, at rates still lower than standard night messa
rates, as follows: The standard day rate for 10 words shall be charge
for the transmission of 50 words or less, and one-fifth of such standar
.day rate for 10 words shall be charged for each additional 10 words
less.

lIrnerated above are hereby agreed to:

Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters
is, in all resnects, subordinate to the priority of transmission and
of regular telegrams.

Day Letters shall be written in plain English. Code language
I'delivery
is not permissible.
c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a
complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understand- g and agreement that the Company does not undertake that a Day
D.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

' In further consideration of the reduced rate for this special "Nigl
Letter" service, the following special terms in addition to ill°
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Compan
be mailed at destination to the addressees, and the Company slut

be deemed to have discharged its obligation in such cases with respe,

to delivery by mailing such Night Letters at destination, post a
prepaid.

Night Letters shall be written in plain English. Code langua
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Form 1201
CLASS ^F SERVICE
11L

SYMBOL

ssage

Lett1r

Blue

Night Message

Nite

Night Letter

'E
WESTE: ezr
X7

WESTERN UNION

owtrir

symbol appearing after the check.

TELWV"-":"

If sane of these three symbols
appears after the check
mber of
..vords)this is a day tir . go. Otherwise its character is ...,.icated by the

UNION

NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
If none of these three symbols
I)Fght Letter

appears after the check number of
words) this is a day message. Other.

wise its character is indicated by.,
symbol appearing after the 6 el,.

RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO. A'ags

7.21.-zrE.

222NY AZ 104 BLUE

IQ NEWYORK NY 248 PM MAY 18 1917

BENJAMIN STRONG

.1118
4100

MONTV I EN BLVD DENVER COLO

THANKS FOR YOUR TELEGRAMS EXECUt I VE COMMITTEE AUTHORIZED SPECIAL

RATE FOR GOVERNMENT BOND DI SCOUNTS OF THREE AND ONE HALF PERCENT
FOR NINETY DAY PAPER SUBJECT TO CHANGE AT ANY TI ME STOP

NO ANNOUNCEMENT MADE YET STOP DISCUSSING MATTER INFORMALLY WITH
BOARD AND LEADING NEWYORK BANKERS STOP PROBABLY REACH DEFINITE

CONCLUSION MONDAY STOP WE THOUGHT IT IMPRACTICABLE TO OBTAIN
GUARANTEES FROM CLEARING HOUSE MEMBERS SUGGESTED IN YOUR TELEGRAMS
BUT WI LL DISCUSS MATTERS INFORMALLY WITH LEADING BAKERS STOP

Form 1201

4,PM UNION

Blue

Nit Letter

.1 none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

TEL; AM
WESTERN UNION

Rite

NEWCOMB CARLTON, PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Rite

NL
Night Letter
If none of these three symbols
appears after the check number of

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

words) this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

RECEIVED AT 91 5-91 9 SEVENTEENTH ST., DENVER, COLO. TX,'

222 NY AZ SHEET 2
,

WOODWARD SUGGESTING DINNER AT HIS HOUSE

NEXT WEEK STOP

THINK MATTER CAN BE ADJUSTED INFORMALLY TO YOUR SATISFACTION
RENTED MECHAN I CS AND METALS OLD BU I LDI NG TODAY FROM MONTH TO
MONTH

PIERRE JAY
358 PM

tic)/

(*()

Form 1206
CLASS OF SERVICE DESIRED

"ay Messago

otter

.grit Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

WESTEOISNI UNION
cr. E

ItESTERN UNION

TEL

Receiver's No.

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

New York, May 18, 1917.

Benjamin Strong,
Denver, Colorado.
Thanks for your telegram. Executive Comndttee authorized special rate
for government bond discount of 3-1/2% for 90 days, paper subject to change
at any time stop. No announcement made yet stop. Discussing matter informally
with Board and leading New York bankers stop. Probably reach definite conclusion Monday stop. We thought it impractioable to obtain guarantees from
'Clearing House members suggested in your telegram but will discuss matters
informally with leading bankers stop. Woodward suggesting dinner at his house
can be adjusted informally to your satisfaction.
nk ma
next week stop.
Think
Rented Mechanics & Metals old building today from month to month.

(Sg.)
;

Pierre Jay.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING
TER!To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for compariso
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOI
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:

For this,
SUCH,
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure"
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether'
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated i
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth o
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office'
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
the foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

D.
This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day

Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during-4r
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

A. Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage

prepaid.
n. Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

Min.

FEDERAL RESERVE BANK
NEW YORK

"J/11411

(TO BE MAILED)

stnrn Union
,Jay Letter

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:
ZJJf

169 ].ii.'.

Lsq
4100 Lontview Boulevard
Denver 00.

Bon, 'amin Jtrong

xecutive committee authorized special rate for
Thanks for your telegrams
Government bond discounts of three anA one half percent for ninety day paper
subject to change at any time Stop No announcement made yet Stop Aucussing
matter riformally with Board and leading New York bankers Stop Probably
.:e thought it impracticable to
definite conclusion Monday Stop
reaoh
obtain guarantees from clearing house members suggested in your telegrams but
will discuss matters informally with leading bankers Stop .eodward suggesting
dinner at his house next week Stop Think matter can be adjusted informally
Rented Meok:anics and Metals old building today from month
to yeur satisfaction

to month
B - 2 for FRASER
Digitized
hge. FA. Res.

Bank

Pierre Jay

Misc. 34

FEDERAL RESERVE BANK

^7 NEW YORK

stern Union

(TO BE MAILED)

,J,y. Letter

CONFIRMATION OF *TELEGRAM
We have today telegraphed you as follows:
LayL.'2, 1917.

Benjamin

eng

.Ssq

41A) -ontview Boulevard
Jonver Col

Board today approved three and one half percent rate for discounts secured by
stop Board still
We are circularizina member banks tonight
Government bonds
matters
.;oin._;
well and intense
LoLn
discussing two percent miiiimum rate Stop
three and one
ooks
close
on
issue
of
apath -oeino L;radually overcome Stop
ill
proba'oly
be somewhat
suarter percent certificates of indebtedness tomorrow
Stop Amendments still in conference while commercial organizations
oversubscribed
telegraPhing Congress against Hardwick amendment ;,ction expected this acik on
amendments
'lige. Federal

B-2

120 Broadway

Rose ve Bank

Pierre Jay

CLASS OF SERVICE SYMBOL

,ssage

Blue

ettcr
essage

Night Letter

Nite

If none of these three symbols
appears after the cheek number of
words)this is a day message. Otherwise its character Is indicated by the

symbol appearing after the check.

WESTEolsm UNION
crif
TEL
AM
WESTERN UNION

!kV

NEWCOMB CARLTON. PRESIDENT

GEORGE W. E. ATKINS, FIRST VICEPRESIOENT

CLASS OF SERV'

My Message
Day Letter
Night Nlessane

Nite

NL
WohtLetWr
If none of these three symbols
I

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT 915419 SEVENTEENTH ST., DENVER, COLO. %TVA S

N2NY LC 79 BLUE

Q NEWYORK NY 645P MAY 22 1917
BANJAMIN STRONG

1410
4100 MONTVIEW BLVD DENVER COLO

BOARD TODAY APPROVED THREE AND

EZ Tit"

WE ARE CIRCULARIZING MEMBER

BANKS TONIGHT STOP BOARD STILL DISCUSSING

TOP 4poKs CLOSE ON rSSUE

ONE HALF PERCENT RATE FOR

:TS SECURED BY GOVERNMENT BONDS

TOP LOAN MATTERS GOING WELL AND

178.11

TM) PERCENT MINIMUM RATE

INTENSE APATHY BEING GRADUALLY OVERCOME

OF THREE AND ONE QUARTER

CE4T CERTIFICATES OF INDEBTEDNESS TOMORROW

WILL PROBABLY BE SOMEWHAT

OVERSUBSCRIBED STOP AMENDMENTS STILL IN CONFERENCE

WHILE COMMERCIAL

ORG,NIZATIONS TELEGRAPHING CONGRESS AGAINST HARDWICK AMENDMENT ACTION
EXPECTED THIS WEEK ON AMENDMENTS
PIERRE JAY 553pm

Form 1206
'VICE DESIRED
essago

UNION

VVESTE
tESTERN UNION

tht Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL,-

Receiver's No.

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

New York City,
May 24, 1917.
Benjamin Strong,
Denver.

Governor Whitman has signed bill permitting State institutions to keep
vault reserves with us.

Senator Owen says he feels confident of passage of

Reserve Act amendments reported by conference committee.
returning so soon.

Delighted you are

Liberty Loan matters here getting up excellent momentum:
(Sg.) Pierre Jay.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TER

the foregoing terms.
8. No employee of the Company is authorized to vary the foregoing.
or

To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed hack to the originating office for comparison. r-or ihis,
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR A ' SUCH,
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond ti.. amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to, the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all

THE WESTERN UN ION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT
1.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In fUrther consideration of the reduced rate for this special "Day
Letter". service, the following special terms in addition to those enu-

o. This Day Letter may be delivered by the Telegraph Company
'by telephoning the same to the addressee, and such delivery shall be a
complete discharge of the obligation of the Telegraph Company to

deliver:

This Day 'Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day
D.

Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subjert
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standaid
day rate for 10 words shall be charged for each additional 10 words or
less.

SPECIAL TERMS APPLYING TO NIGHT T.ETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English.

Code language

is not permissible

No employee of the Company is authorized to vary the foregoing.

4
ICE SYM
CLIV

Blue
. Message
fi"

Nita

NL
ght Lett,/
ogle Of these three symbols

Ars after the check number of

wails)th is is a day message. Othervise its character is indicated by the

symbol appearing after the check.

4111111P

Form 1201

WESTELiaLM UNION
TEL
AM
02,,

WESTERN, LINO

NEWCOMB CARL-TON. PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE.PRESIDENT

RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO.

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Flue

Nit Message

Rite

i,.ght Letter
NL
If none of these three symbols
apuears after the check number of
words)this isa day message. Otherwise its character is indicated by the
symbol apnearing after the cheek.

AL0ZY,s

N11NY LC 44 NL

.....11Yr

Q NEWYORK NY MAY 24 1917
BENJAMIN STRONG

499 c*:.7iw
4100 MONTVIEW BLVD DENVER COLO

GOVERNOR WHITMAN HAS SIGNED BILL
VAULT RESERVES WITH US SENATOR
1F PASSAGE OF RESERVE ACT

PERMITTING STATE INSTITUTIONS TO KEEP

OWEN SAYS HE FEELS CONFIDENT

AMENDMENTS REPORTED BY CONFERENCE COMMITTEE

DELIGHTED YOU ARE RETURNING SO

SOON LIBERTY LOAN MATTERS HERE

GETTING UP EXCELLENT MOMENTUM

PIERRE JAY
605PM

Misc. 34

RESERVE BANK
'W YORK

P.T/ RAH

(TO BE MAILED)

Postal
1:10 p.m.

CONFIRMATION OF TELEGRAM
We have today telegraphed you ap,followi:
May 4, 1917.
,

Benjamin Strong 1;sq
4100 Lontvieli Barevard
Denver Colorado

Warburg telephones that Secretary Baker has inquired how War Department Call best
'ice payment to our soldiers and others in France

details today Stop

Warburg will ask for further

We swsgest you consider matter and wire us your suggestions

for rely to Warburg tomorrow
Pierre Ja
Ch:;e. Fed. Ree. Bank

120 Broadway

POSTAL TELEGRAPH
AT MAIN OFFICE
CRAMMER BUILDING

17TH STREET

VER, COLO.

irIELteNONE: MAIN 4000

COMMERCIAL CABLES

CLARENCE H. MACKAY, PRESIDENT

DELIVERY No.

44)7

T 'e Postal Telegraph-Cable Company(Incorporated)transmits and delivers this message subject to the terms and conditions rioted on the hack of this blank.
DESIGN PATENT N

it3--32352

40529

etA"V

89 CB JA 44 d
CB #ewyork may 24 17

Benjamin strong

MAY 2 4 1917

4100 iiontview Blvd tenver
rarburg telephones that secretary Baker
can best make payment to

our soldiers and others in

france warburg will ask for

further details

suggest you consider matter and

today

stop we

wire us your suggestions for

reply to rarburg tomorrow

has inquired how war

vierre Jay

departmet

LEGRAF

POSTAL

W.
1,5

OPERATOR'S NOTATIONS,
TIME SENT, ETC.

ENGLAND
NEWrouNDLANo

VANCOUVER

tolf

UMMERCIAL CABLES

PACIFIC

OCEAN

APAN

160 4 (,..AYOK0HANiA

Fit

SAN FRAN SCO
BERMUDA

ATLANTIC
OCEAN

MI DWAV

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

ST. V iNCEpr

EXTENDS OVER TWO.THIRDS OF THE WAY AROUND THE EARTH.

COMPANY (INCORPORATED)
THE POSTAL TELEGRAPH-CABLE
THE FOLLOWING TERMS AND CONDITIONS:

TO
TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECTREPEATED;
that is, telegraphed back to the originating office for

of a telegram should order it
face, THIS IS AN UNREPEATED
To guard against mistakes or delays, the sender
telegram rate is charged in. addttiort Unless otherwise indicated on ha
follows:
comparison. For this, one-half the unrepeated
consideration whereotit is agreed between the Bend of thetelegrain and this Company as
TELEGRAM AND PAID FOR AS SUCH, in
non-delivery,
of
any
FNREPEATED
telegram, beyond the
delays
in
the
transmission
or
delivery,
or
for
telegram, beyond
The Company shall not be liable for mistakes or
delivery, or for non-delivery, of any REPEATED interruption
in the
arising from unavoidable
amount received for sending the same; nor for mistakes or delays in the transmisdion or

SPECIALLY VALUED; nor in any case for delays
fifty times the sum received for sending the same, UNLESS
OR OBSCURE TELEGRAMS. .
working of its lines; NOR FOR ERRORS IN CIPHERdamages
for the non-delivery of this
for any mistakes or delays in the transmission or delivery, orwhich
amount this telegram, if
In any event the Company shall not be liable for
at
otherwise,
beyond
fifty
times
the
REPEATED
telesraln
rate,
telegram, whether caused by the negligence of its servants or greater value is Stated in writing hereon at the time the telegram is offered to the Company for
sent as a REPEATED telegram, is hereby ;rained, unless apaid based on such value equal. to one-tenth of one per cent. thereof.
transmission, and an additional sum' paid or agreed to be without liability, to forward this telegram over the lines of any other Company when necessary
8. The Company is hereby made the agent of the sender,
will be
to reach its destination.
limits of the terminal office. For delivery at a greater distance a special charge
Messages will be delivered free within the established free delivery
4.
of its transmitting offices; and if any
made to cover the cost of such delivery.
one
notice or
Company until the Smile are presented and accepted atof
S. No respoftbility regarding messages attaches to this
he acts as the agent of the sender for the purpose delivering tile message and any
,,stiage is sent to such office by one of this Company's mffsengers,
office.
In writing within sixty days after the
structions regarding it to the Company's agent in its said
in any case where the claim is not presented
I;. The Company shall not be liable for damages or statutory penalties
iegram Is tiled with the Company for transmission.
7.)The above terms and conditions shall he binding upon the receiver as well as the sender of this telegram.
NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FoREGoING.
It

CHANF

ADAMS,
ICE-PRESIDENT.

CLARENCE H. MACKAY. PRESIDENT.
EDWARD REYNOLDS, VicE-PREST. AND GENERAL MANAGER.

CHARLES P. BRUCH,
VICE-PRESIDENT.

THE FASTEST TELEGRAPH SERVICF IN THE WORLD

P 0 0 -I- A L.
411

11 11

'TELEGRAPH CABLE COMPANY

NIGHT LETTERGRAM

THE POSTAL TELEGRAPH.CABLE COMPANY (INCORPORATED) TRANSMITS AND DELIVERS THIS NIGHT LETTERGRAM SUBJECT TO THE
CLARENCE H. MACKAY, PRESIDENT.
TERMS AND CONDITIONS PRINTED ON THE BACK OF THIS BLANK.

RECEIVED AT

DELIVERY NO.

trc tat

INDEPENDENT

COMPETITIVE

PROGRESSIVE

4--669

29 NY. No 66 N. L. GoVt.o.p.a2510M.

CB New York, July 11, 1917
Benjamin Strong, Esq.,
Care Denver Country Club4, Denver, Col.

Just read yours July sixth to Mr. Vanderlip Suggesting that
Gregory should take responsibility of developing a skeleton organization
stop. Gregory this morning suggested to me his willingness both to
develop and operate such an organization. In view of foregoing
I feel simewhat embarrassed about proceeding with Anderson as they
cannot work together. Please wire suggestions.

Jay.

POSTAL TELEGRAPH-COMMERCIAL CABLES
s'oRs
BERMV.

ATLANTIC
OCEAN
VINCRNT

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE POSTAL TELEGRAPH-CABLE COMPANY

(,INCORPORATED)

TRANSMITS'AND ,DELIVEFIS:THS .WITH1N NIGHT LETTERGRAM suq"cr To., THE FOLLOWINS TERMS AND CONDITIONS:.
The Company will receive, not later than midnight, NIGHT LETTERc,RAMS, written in plain English, to be transmitted only for delivery on the morning
of the next ensuing business day, at rates still lower than its standard night message rate, as follows:
Theofstandarot day rate for a ten-word day message.shall beeharged for the transmission of a.NIGHT LETTERGRAM, containing fifty words or less, and
one-fifth
tbe standard-day rate fore. ten-Word day meSsagg.shall be eharKied or ek(A,WditlopalArn,or de or less in such NIGHT LETTERGRAM.
To Iguard against mistakes or delays, the sender of a message should order it Er:MATED; that is, telegraphed back to the originating office for
comparison. For this, one-half the unrePeated message rate is charged in addition. Unless otherwise indicated on its face,
THIS IS AN 17NREPEATED
MESSAGE AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the message and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmiasion ordeliverY: or'for nen-dellierr of any UNREPFA TED messgge, beyond the
amount received for sending the same: nor for miatakes of delays in the transmissionror 'delivery, or for non-delivery, of any-REPEATED message, beyond
fifty times the sum received for sending the same, UNLESS SPECIALLY VALUED; normn any case for delays arising from unavoidable interruption in the
working of its lines; NOR FOR ERRORS IN CIPHER OR OBSCURE MESSAGES.
In any event the Company shall not be lbible for ,dainages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this
message, whether caused by the negligence of its servamn or otherwise, beyond fifty times the I3EPEATED message rate, at which amount this message, if
sent as a; REPEATED "message, is hereby valued, unless a greater -value is-stated in writing hereon at the time the message is offered to the Company for
transmission,
and an additional sum paid or agreed to be paid based on such value enlist, to one-tenth of
per cent. thereof.
a. The Company is hereby made the agent of the sender, without liability, to forward this message over theone
lines of any other Company when necessary
to reach
its dos Wan...
4. Messages will be delivered free within the established free delivery limits of the terminal office. For
delivery at a greater distance a special charge will be
made to cover the cost of such delivery.
S.
No responsibility regarding messages attaches to this Company until the seine are Prescitted and accepted at one of its transmitting offices; and if any
message
is sent
to Kishit offic.aby
one of thisCompa,py's
nicasenggialis actag.tbe agent of.t4te snider for the purpose of delivering the message and any notice or
instructions
regardirt
to Me Company's
agent in its said
S. This -Conipany shall not be liable for damages or statutory penalties in any case where the claim Is not presented in writingwithin
thirty days after ties
message
is tiled with the Company for transmission.
In further consideration of the reduced rate for this special "NIGHT LETTERGRAM" service, the following special terms are hereby agreed to:
(a) NIGHT LETTERGRAMS may at the option of the Telegraph Company
be mailed at deblination to the addressees and the Company shall be deemed to
have discharged its obligation in such cases with respect to delivery by mailing such NIGHT LETTERGRAMS at destination, postage PrePaid(S) NIGHT LETTERGRAMS shall be written in plain English. Code language is not Permitted.
7. The above terms and conditions Abell be binding upon the receiver as well as the sender of this NIGHT LETTERGRAM.
S. NO EMPLOYER or TtlfS COMPANY IS' AUTHORIZED TO VARY THE
FOREGOING.

CHARI1VC. ADAMS,
INCE-PRESIDENT.

CLARENCE H. MACKAY, PRESIDENT.
EDWARD REYNOLDS, VICE-PREST. AND GENERAL msgasiER.

CHARLES P. BRUCH,

VICE-PRESIDENT.

THL FASTEST TELEGRAPH SERVICE IN THE WORLD

OPERATOR'S NOTATKIRB,

TIME SENT, Eta.

Form 1201

ESTE04LNA UNION

CLASS OF SERVICE SYM
Day Message

Day Letter

WESTERN UNION

TEL

.ht Letter
NL
If none of these three symbols
,

appears after the check (number of
words)th is is a day message. Otherwise its character Is indicated by the

symbol appearing after the chock.

Niallt Messa ,

wPt

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

NEWCOMB CARLTON, PRESIDENT

RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO.

/ MIL
Nita

N'ght Letter
If none of these
tee symbols
appears after the check number of
words)this isa day message. Otherwise its character is Indicated by the
symbol appearing after the check.

A'S

M27NY AM 216 NL
UD NEWYORK JUL 15 1917
BENJAMIN STRONG

2576
DENVER COLO

SORRY BEN TOO BUSY TO
LIBERTY

WRITE STOP CONFERENCE TUESDAY ON

LOAN STOP FRANKLIN COMING

AITKEN SHOULD PRESIDE DONT YOU

THINK

STOP SAW SECY IN WASHINGTON

TUESDAY HE HAS ASKED CONFERENCE
SAVINGS PLAN AND HOPE TO

WITH EXCELLENT SUGGESTIONS

TO MAKE RECOMMENDATIONS ON WAR

MAKE PROGRESS STOP HAVE ASKED

EACH GOVERNOR TO BRING SPECIAL

DELEGATES FOR SEPARATE CONFERENCE

ON THIS SUBJECT THURSDAY STOP

BLACHETT IS HERE STOP SECY HAS

ASKED BOARD FOR RECOMMENDATIONS REGARDING
FICATES STOP SECY ASKED ME TO

DISCONTINUING SMALL GOLD CERTI-

SUGGEST FINANCIAL ADVISER WHAT

Form 1201

liVESTEkii5LM UNION
WESTERN UNION

.74

TELwv.

If none of these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character Is indicated by the

symbol appearing after the check.

NEWCOMB CARLTON. PRESIDENT

vslf

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
N'ght Letter
If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT 91 5-91 9 SEVENTEENTH ST., DENVER, COLO. AL6Z'r

M27NY AM SHEET TWO

WOULD YOU THINK OF FRED STRAUSS STOP ACCEPTANCE MATTER SETTLED SATISFACTORILY TO GUARANTY AND THEIR EXCUTIVE COMMITTEE CONSIDERS MAIN QUESTION
TOMORROW STOP REGARDING ANDERSON MATTER AM INCLINED TO THINK GREGORYS
AND DAVISONS DEPARTMENTS ESSENTIALLY BANK ROUTINE WORK WHILE SELLING
IS ENTIRELY OUTSIDE OF BANK ROUTINE AND THEREFORE QUESTION SOMEWHAT
TRYING TO COMBINE ALL UNDER ONE MAN STOP FIRST CLASS ASSISTANT CASHIERS
COULD RUN TWO DEPARTMENTS ABOVE MENTIONED WITH SPECIAL TEMPORARY
COMMITTEES TO PASS

ON SECURITIES OFFERED STOP SUGGEST WAITING

TILL AFTER CONFERENCE ADJOURNS BEFORE ATTEMPTING PROGRESS IN THIS 0
ORGANIZATION .STOP HAVE TAKEN FIVE THOUSAND FEET FOURTH FLOOR FOR

PUBLICITY DEPARTMENT AND GIVEN UP FIFTY WALL STOP 6ECURITIES ALL

MOVED TO OUR VAULT STOP COMMITTEES ON FIVE SUBDIVISIONS OF DISTRICT

Form 1201
SYMBOL

Blue
Message

Nite

Letter

E-

4I2ESaN

UNION

WESTERN UNION

e of these three symbols
1 after the check number of
is is a day message. Other'iarecter is indicated by the

pear ing after the check.

TEL

NEWCOMB CARLTON, PRESIDENT

t"'"

GEORGE W. E, ATKINS. FIRST VICE-PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
If none of these three symbols
N 'g ht Letter

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

al AT 91 5-91 9 SEVENTEENTH ST., DENVER, COLO. Alggs

A27NY AM SHEET THREE

MAKING INTENSIVE STUDY OF ORGANIZATION IN EVERY PLACE IN DISTRICT
PIERRE JAY

JUL 16 430AM

Form 1201

UNION

EL, AM
WESTERN UNION

these three symbols
er the check (number of
his is a day message. Other6 character is indicated by the

[err

Jol appearing after the check.

NEWCOM B CARLTON, PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue _____,

Night Message

Nite

Night Letter

If none of these three symbols

GEORGE W. E. ATKINs. FIRST VICE-PRESIDENT

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT 915-919 SEVENTEENTH STREET, DENVER, COLO. AS

N 19 NY BC

152 BLUE

10.4. t , TR ,

Q NEW YORK NY 625P JULY 16 1917
BENJ STRONG

;:r7
laeqtrrtfST DENVER COLO

CALL MONEY RENEWED SIX RAN

i;
-

0
...

UP TO TEN CLOSED SIX

MILLIONS TOMORROW ON CERTIFICATES OF
WOULD EASE SITUATION STOP LARGE

WILL BE LARGELY TRANSFERRED FROM

INDEBTEDNESS DUE TOMORROW WHICH

PAYMENTS TO MAKE FRIDAY FOR

WHICH FUNDS

OTHER DISTRICTS STOP REDISCOUNTS
NEW STOP

TODAY FIFTY FOUR MILLIONS OF

WHICH THIRTY ONE MILLIONS ARE

BOUGHT SIX MILLION BILLS BUT

FIFTEEN MILLIONS MATURED STOP WOODWARD

SAYS GREGORY HAS PREPARED FORM

OF ORGANIZATION FOR HIS DEPARTMENT

AND SUGGESTS ENGAGING COMPETENT MAN
'

STOP WE PAY OUT FORTY

MENT UNDER SAILER STOP GREGORY
DEPARii

SUBJECT TO OUR APPROVAL TO

TO REMAIN DURING NEXT ISSUE

OPERATE
IN

Form 1201

Blue

VVESTE47:114NA UNION

Nita

WESTERN UNION

g,
tter
_

TEL! AM

these three symbols

after the check number of
this is a day message. Merwise its character is indicated by the
1

symbol appearing after the check.

NEWCOMB CARLTON. PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

Nite

NL
Night Letter
If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

RECEIVED AT 915-919 SEVENTEENTH STREET, DENVER, COLO. AS

"tart

N 19 NY BC SHEET TWO
IN EARLY MORNING ANM LATE AFTERNOON

ADVISORY CAPACITY FOR PAY COMING
STOP WOODWARD STRONGLY IN FAVOR

OF SUCH PLAN WHICH HE

PRESENT TO EXECUTIVE COMMITTEE FOR
'E'NERAL PLAN

WIRED YOU

ACTION TOMORROW STOP THiS FOLLOWS

ABOUT LAST NIGHT BUT DIFFERS

DISCUSSION FORTNIGHT AGO THEREFORE KINDLY

1111

WISHES TO

FROM OUR

WIRE YOUR VIEWS

PIERRE JAY

615PM

\AA
cm

GeerAffA

1it-eat,2 -

FEDERAL RESERVE BANK
OF NEW YORK
July 19, 1917.

Dear Governor Strong:

I am ever so much obliged for the telegram you sent me early in the
week.

I am sorry to have had to telegraph you about the bond issue division

matter, but it cane up quite suddenly and I felt it necessary to know your
views by wire.

I think Mr. Treman has probably written you (I understand that

he writes every day) that it has been settled on the basis of having the department organized under our cashier, with Mr. Gregory as a paid expert advisor, if he can be secured in this capacity.

This procedure, which conforms to the practice of all the other Federal reserve banks, we all feel sure is the correct one for us to adopt; namely,
to have these departments as an integral part of our bank and under its regular
organization.

It is understood that Mr. Gregory will assist Mr. Sailer in the organization of a permanent staff which will necessitate our getting an additional
assistant cashier to take charge of it, or possibly two, although Mr. Sailer feels
that Er. Lins can handle the Government deposit end, subject to a temporary committee to pass on securities, etc., when the time comes.

I trust that this pro-

cedure will commend itself to you.

In view of my telegram of Sunday night to you, in which I suggested my
change of view with regard to the arrangement in those departments, I have not

had any further talk with or about Mr. Anderson; and in view of the fact that the
activities of the Liberty Loan Committee next time will be confined almost entirely to selling and publicity, I have some little question as to our trying to
annex him permanently to our staff.

I am going to get a meeting, the early part

FEDERAL RESERVE BANK OF NEW YORK

7/19/17.

Benj. Strong, Esq.

of next week, with Sweezy, Mitchell and Jay, to discuss with them the immediate and
intensive organization for the campaign, and should like to postpone my views on
the Anderson situation until after I have talked with these men.
Our Liberty Loan conference lasted two days, closing yesterday at seven
We had about thirty present, a very live lot, and I believe that the

o'clock.

conference did a great deal of good.

We made a considerable report, of which I

shall send you a copy shortly, in regard to the terms of the bonds, terms of certificates, expenses, time schedule of campaign, selling department, publicity department, but did not get a very satisfactory report on the details of the departments
which, in this bank, were handled by Gregory and Davison.

Our understanding was

that a supplementary report would be prepared on these two departments, which I

want to get busy on next week and see if we pan't line out all the details in good
shape:

it seemed impossible to get this done at the conference as there were too

many people who had their eyes on their watches and some of the technical men did
not turn up on the first day.

Warburg was here for the first day and Franklin

for both days, and their presence added very much.
It is the feeling of the governors that there should be a governors'
conference on Liberty Loan matters, in Washington, as soon as possible after you
return.

To-day we had abott twenty present at the War Savings conference, including Mr. Blackett and the chief of the Postal Savings Division in Washington.
I think we had a very satisfactory conference, and a report was prepared which
was adopted this afternoon, dealing with the principles but not attempting the
details.

Mr. Tremr has just shown me your letter of the 15th, and I am mighty
glad to learn that you are reducing your correspondence and propose to be on
duty at the office only intermittently and not continuously.

We all feel that

that is the only way in which you can pull around into good shape permanently.

-7EOERAL RESERVE BANK OF NEW YORK

Benj. Strong, Esq.

7/19/17.

However, we are mighty glad to hear of the doctor's good report.

These conferences have put me out of business as far as any talking
with any of the State banks about keeping gold with us and talking with the
banks generally about sorting their bills, goes.
further
make some/progress in these matters.

With best regards, I am
Sincerely yours,

Benj. Strong, Esq.,
128 Gilpin Street,
Denver, Colorado.

EJ/HAB

Nextweek I shall hope to

Form 1201
CLASS OF SERVICE

SYMBOL

Message

Ay Letter
1F

Blue

WESTEa2SM
cr 3

Nil._ arter

Day Message

Day Letter

WESTERN UNION

Nite

Message

CLASS OF SERVICE SYMBOL

TEL

If none at these three symbols
appears after the check number of
words)th Is is a day message. Other.
wise its character is indicated by the

symbol appearing after the check.

NEWCOMB CARLTON. PRESIDENT

Blue

Night MessaiN

Nita

NL
If none of these three symbols
Night Letter

appears after the check ,(number of
words)this Is a day met-sage. Otherwise its character is indicalagtby the

GEORGE W. E. ATKINS, FIRST VICE.PRESIDENT

symbol appearing ageintie 'check.

ALWAYS

RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO.

OPEN

;.;

-44 i_Wai

324NY 0 C 37 BLUE

NEWYORK NY 456P JULY 20 1917
BENJ STRONG

128 GILPIN ST DENVER COLO
1,TREMN
A

AWAY

TODAY;'h.111
CALL MONEY RENEWED FOUR ONE HALF PERCENT

: CLOSED TWO PERCENT ON LARGE PAYMENTS MADE BY US PLAN

OF ORGANIZATION SUBSCRIPTION DEPARTMENT SETTLED ON BASIS OF

10tGANIZATION UNDER SAILER WITH GREGORY ACTING IN ADVISORY CAPACITY
PIERRE JA Y
503PM

III

Form 1206
CLASS OF SERVit.r. DESIRED

"-it Day Message
Letter

UNION

TI
WESTERNUNION

=11essage

Night Letter
Patrons should mark an X opposite th3 class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL :Pre*

Receiver's No

Check

Time Filed

NEWCOMR CARLTON, PRESInFNT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

-onvor, Colorado, July 20, 1917.
Azrzo Jay, FeJoral Rosorvo Dank,
Now Yorlf City.
flra writing Tally in roply to tologram and 1-oports of rosults
of Liborty Loan uooting. Have) oomo doubt o± ::12a0M of dotaohing

Sailor unions ho is oomplotoly roliovoa of all rogular offioo
lutias otop. in tht oaso jo muot u,9oint,additionc4 Aooistant
Oashiors with ono t1io.eouL31-i2y oolapotont transit man to tako
flontrioki placto. WoulC profor promotions ratho2, than outsido
ram if
io loasiblo.
BonpniA Stron3's

ri dog hereon at the time the telegram is offered to the Company for transmission, and an additional sum pa
e per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of
0,acr Coi
iicy to le.tet
stination.
Telegrams will be delivered free within one.,half mile of the Company's office in townsag 5,000 population or less, and within one mile of such office in other cities or
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all

the foregoing terms.
No employee of the Company is authorized to vary the foregoing.

THE WEST:RN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOM3 CARLTON. PRESIDENT

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:.
A. Day Letters may be forwarded by the Telegraph Company as a
deferred service and the tran3mission and delivery of such Day Letters
is,

in all respects, subordinate to the priority of transmission and

delivery of regular telegrams.
to

Code language
B. Day Letters shall be written in plain English
is not permissible.
c. This Day Letter may be delivered by the Telegraph Company

by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understanding a,nd agreement that the Company does not undertake that a Day
D.

Letter shall be delivered on the day o. its date absolutely and at
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the trans
mission and delivery of such Day Letter on the day of its date durmg
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the forcoing:

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the
ensuingbusiness
day, at rates still lower than standard night message rates,

follows: The standard day rate for 10 words shall be chatged for the tranFmission of 50 words or less, and one-fifth of such standaA day rate for 13
words shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate .frP. this specia179/Nigh
Letter" service, the following special term,:. in ad..dtion to thos
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Compan
be mailed at destination to the addressees, and the Company sha

be deemed to have discharged its obligation in such eases with respee

to delivery by mailing such Night Letters at destiaation, postag
prepaid.

Night Letters shall be written in plain English. Code languag

is not permissible.

No employee of the Company is luthoFized to ;;;;;;(.!hs foregoing.

Form 1201
CIFATi OF SERVICE syNBoL

CLASS OF SERVICE SYMBOL
Day Message

Me..:sage

Letter
. Message

Blue

Day Letter

Blue

Nite

Night Message

Nite

If none of these three symbols

Night Letter
If none of thye

appears after the check number of

appears after

ff ight Letter

words, th is is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

RECEIVED AT 915-919 SEVENTEENTH STREET, DENVER, COLO.

three symbols

e check (number of

words)this a d measete. Otherwise its chai4ggr is indicated bythe
symbol appearing after the check.

lePi trr

N9NY 4±H 157BLUE

Q NEWYORK NY 715P JULY 24 1917

.4
,

BE NJ STRONG

nii-dig1556
LO

THANKS YESTERDAYS TWO MESSAGES STOP

CONFERRED TODAY WITH SWEEZY ABOUi-

ORGANIZATION DISTRIBUTION AND PUBLICITY DEPARTMENTS

DROPPING ONE OR TJO MEMBERS

REAPPOINTAENT DISTRIBUTION COMMITTEE

DISOLVING THEIR EXECUTIVE COMMITTEE
PPOINTING A VICE CHAIRMAN AND
3ERS OF THE COMMITTEE

EPSON AS SECRETARY

OLUTION OF

HE RECOMMENDS

SWEEZY

MITCHELL AND JAY

A SECRETARY BOTH OF \JHOM

HE SUGGESTED HIMSELF AS VICE

STOP CURTIS AND

THINK

ANDERSON MATTER SINCE. HE WOULD

WOULD BE

CHAIRMAN AND

THIS h EXCELLENT

BE IN CHARGE OF PE7m!4N7T

Form 1201
SERVICF SYMBOL
ssage

,tter

Blue

Messtice

Nite

Night Letter.

WESTE

0;--51A

UNION

CLASS OF SERVICE SYMBOL
Day Message

WESTERN UNION

TEL

If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

IIVF1 1.1ft

NEWCOMB CARLTON, PRESIDENT

Day Letter

Blue

Night Message

Nite

Night Lett9r

If none of

three symbols
appears aN6r, the check number of
words)thtV6a daYmessage. Otherwise its character is indicated by the

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

symbol appearing after the check.

RECEIVED AT 915-919 SEVENTEENTH STREET, DENVER, COLO. %Pr

40.11-

1556
::

111 tO.

-)NY LH 1575LUL SHEET TWO

DISTRIBUTING ORGANIZATION COMMA FAMILIAR
COMMITTEES ACTIVITIES
NEEDED STOP
NOT WORK

AND ABLE TO BRING PRESSURE

HIS APPOINTMENT AS SUPERIOR TO

LAST TIME AND WOULD PROBABLY

RATHER INCLINE AGAINST HIS BEING
BANK STOP PLEASE WIRE YOUR

FOR ACTION WHENEVER

DISTRIBUTION COMMITTEE DID

NOT WORK AGAIN STOP WE

APPOINTED AN OFFICER OF THIS

VIEWS ON SUGGESTIONS STOP SUGGESTIONS

;EGARDING REARRANGEMENT OF OFFICERS CONTAINED
SUBSTANTIALLY IN

rrt--41

ITHL"

ACCORDANCE wITH PLAN WE HAD

558PM

YOUR TELEGRAM YESTERDAY
'WORKED OUT

SYIV.BOL

Blue
1

Message

Nignt Letter

WESTE

UNION

WESTERN UNION

Nit°
N L.

TEL:OAP%

If none of these three symbols
appears after the check number of
wards)this is a day message. Otherwise its character Is Indicated by the

symbol appearing after the check.

N CWCO m CI CARLTON. PRESIDENT

CLASS OF SERVICE SYVBCL
Day Message

Day Letter

Blue

Night Message

Nile

NL
It none of these three symbols
Night Letter

GEORGE W. E. ATKINS. FIRST vICE-PRESIDENT

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT

A9D KG 57 NL
NEWLONDON

CONN J ULY 26 -17

BENJ STRONG

128 GILPIN ST DER COLO,
EMERSON

HAS

AGREED TO BECOME MEMBER OF DISTRIBUTtON COMMITTEE

IN ORDER TO COORDINATE

PUBLICITY

COMPLETE THE ORGINATION

PROBLEM SUBJECT TO APPROVAL OF LIBERTY

LOAN COMMITTEE STOP 8AILLki FLAWS
WILL MATURE NEXT WEEK
TAXING

FOR ORGANIZATING

BOND DIVISION

THINK YOU NEED HAVE NO APPREHENSIAABOUT OVER

SAILER UNDER PLANS

WITH SELLING WORK STOP THIS

HE HAS IN MIND

PIERRE JAY JULY 27
932 AM

Form 1201
CLASS OF SERVICE SYMBOL
iesmge
_otter

Night Message

Blue

WESTE:,.
LIaM UNION
E

TEL

NL
Night Lettet
If none of C.a.._ three symbols
appears after th3 check number of
symbol appearing after the check.

Day Message

WESTERN UNION

words)th is is a day message. Otherwise its character is indicated by the

CLASS OF SERVICE SYMBOL

NEWCOMB CARLTON. PRESIDENT

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

RECEIVED AT 915-91 9 SEVENTEENTH ST., DENVER, COLO.

Day Letter

Blue

Night Message

Nite

Night Letter

fuL

If none of these three symbol.§.
appears after the check (hurnher of
words) this is a dayrnessage. Otherwise its characteris indicated by the

symbol appearing after the check.

At,T.TZS

N23NY DU 134 BLUE

Q NEWYORK NY JULY 26 1917 219P
:(

BENJ STRONG

1_67

128 GILPIN ST DENVE

COLO

444j44144.644.T

TELEGRAM RECEIVED STOP CURTIS SWEEZY MITCHELL JAY AND

WENT

TO VANDERLIPS LAST NIGHT AND DISCUSSED PLAN OF ORGANIZATION WHICH

HE SEEMED TO APPROVE BUT THOUGHT LIBERTY LOAN COMMITTEE SHOULD
BE CALLED TOGETHER PROMPTLY AND PLAN SUBMITTED IN TACTFUL WAY
TO THEM STOP

SUGGESTED ADDING TWO MEMBERS TO LIBERTY

LOAN COMMITTEE HE THOUGHT TACTFUL WAY WAS TO CONSULT COMMITTEE
ABOUT IT AND SUGGESTED FARMERS AND UNITEDSTATES AS WORTHY OF
REPRESENTATION STOP CURTIS AND

THINK IT JUSTIFIABLE TO BRING

MATTER BEFORE COMMITTEE THOUGH ADVISABLE TO CONSULT WITH INDIVIDUAL

;..etter

Blue

win w
WESTEat8Sk\I UNION

Night Messoge

Nite

WESTERN UNION

Night Letter

T 11111111111111.11111
MAC ' OF SERVICE SYMBOL

_ ...a,

Message

or. E

If none of tiase three symbols
appears after the check number of
words)th is is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

TEL

NEWCOMB CARLTON, PRESIDENT

viivz*vl

Form 1201
CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

N ite

NL
Night Letter
If none of these three symbols
appears af/eY the check nurriber of

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

words)tIOS is a day message. Otherwise itpcharacter is irulicated by the

symbol appearing after the check.

RECEIVED AT 91 5-91 9 SEVENTEENTH ST., DENVER, COLO. %.".Ter

N23NY DU SHEET TWO

>k)Ulk)

MEMBERS STOP WHAT WOULD YOU THINK OF APPOINTING WHOLE COMMITTEE ANEW
FOR COMING LOAN AS GOOD PRECEDENT ALLOWING

READJUSTMENTS FROM LOAN

TO LOAN STOP ALEXANDER SUGGESTS OMITTING ALTERNATES THIS TIME STOP
HAVE JUST SEEN ANDERSON WHO IS ENTIRELY SATISFIED TO BECOME
EXECUTIVE SECRETARY DISTRIBUTION COMMITTEE

PIERRE JAY
633PM

SS OF SERVICE
Message

.,y Letter
iioht Message

Night Letter

SYMBOL
Blue

Nite

If none of these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character is indiceted by the

symbol appearing after the check.

Form 1201

WES+
TEL

NEWCOMB CARLTON. PRESIDENT'

UNION

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Nioht Message

Nita

' NL
igight Letter
If none of these three symbols
appears after the check number of

words) this is a day message. Otherwise its character is indicated by the

symbol annearing after the cheek.

RECEIVED AT 915-919 SEVITEENTH ST., DENVER, COLO. ATs
p

149NY OC 113 BLUE

-r-VPRoxim

`77 °

Q NEWYORK NY 115P JULY 30 1917
BENJAMIN STRONG

1000
128 GILPIN ST DENVER COLO

TELEGRAMS TWENTY SIXTH TWENTY SEVENTH AND LETTER TWENTY THIRD RECEIVED
EMERSON HAS VARIOUS ADVERTISING

ASSOCIATIONS HAPPILY LINED UP STOP WE

ARE WORKING SATISFACTORY WITH AMERICAN BANKERS ASSOCIATION STOP WILL LET

MATTER OF CHANGES IN COMMITTEE AWAIT YOUR RETURN BUT UNLESS

YOU

DISAPPROVE PROPOSE CALLING MEETING OF LIBERTY LOAN COMMITTEE TUESDAY OR
WEDNESDAY TO APPROVE PLAN OF ORGANIZATION AND AU1HORIZE DISTRIBUTION

COMMITTEE TO PROCEED STOP OUR PLAN CONTEMPLATES SAILER CONTIWING PRESENT
WORK LARGELY RELIEVED BY HENDRICKS SO SAILER MAY DEVOTE HALF

TIME TO BOND

ISSUE DEPARTMENT WHICH WOULD BE UNDER DIRECT

11111111.1111.=
"SS OF SERVICE SYMBOL
, Message

iay Letter
ht Message

Night Letter

Blue

W STEj UNION
WESTERN UNION

Rite

If none of these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

1111111111111:m

TEL

NEWCOMB CARLTON, PRESIDENT

efl

7.1771.!'

Day Message

Day Letter

Blue

Nioht Message

Nite

NL
If none of these three symbols
iNrght Letter

GEORGE W. E. ATKINS, FiRST VICE-PRESIDENT

RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO.

149NY SHEET TWO

CLASS OF SERVICE SYMBOL

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the cheek.

ALWAYS

tip
Art

741.4,2,40,)

MANAGEMENT OF ONE OR TWO NEW AND EXPERIENCED MEN STOP/id(

WRITING SECRETARY OTHER VIEWS CONTAINED YOUR LETTER CURTIS

b777t4
,LEAVES TEN

DAYS VACATION WEDNESDAY

PIERRE JAY
1230PM

fi)

Mc. 34

F,-ERAL RESERVE BANK

(TOBEIVIAILED)

F NEW YORK

PJ/ RAH

Western Union

CONFIRMATIONisOfrri.TELEGRAM
We have today telegraphed you as follows:

ILING DEPT.
M1 p1917
REMVE Bahr

August 2, 1917.

Benjamin Strong, Esq.,
128 Gilpin Street
Denver, 001.

,Inerson reports that forty magazines agree+ to publish articles in Septunber or
October issue rec;arling next inLtalment of Liberty Loan.
North American review
urgently requests two thousand word article from you on next instalmett of Liberty
Loan
September issue goes to press August tenth
If not practicable to prepare
something for September article could be used in October Stop
Have made no
commitment for you
Pierre Jay,

age.

Fed. Res. Bank

120 Broadway
http://fraser.stlouisfed.org/
B-2
Federal
Reserve Bank of St. Louis

-T A L

71-E LE. :or RA P H

G 0 NI A N V

-C A-13 L

NIGHT LETTERGRAM
.

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATEft- ANS ITS AND DELIVERS THIS NIGHT LETTERCRAM SUBJECT T
TERMS AND CONDITIONS PRINTED ON THE BACK OF THIS B
CLARENCE H. MACKAY. PRE

.1141.%77.7 ;71.

PETI TIVC

4-623

Al2D

48 N.L. 2AN

V.4

PROGR

VIA SANlpfE_."WIAYMEn

LOSANAMOS RANCH

1LX

NE'

AUG 27 1917

-:NJ STRONG

GOVERNOR FEDERAL RESERVE BANK
THAT
APPRECIATE YOUR SOLITUDE AND

YOU THAT WHEN

GET

AS HIGH AS MY OWN

BACK NOT HAND
IN DEALING W

OF 0

N-,YORK.

DIRECTORS

ASSURE

L BE

A UERTAIN

RADUALLY DECLINING

REFRACTORY PERSON.TEMPERATUR-ARRIVED LAST EVENING.
NINE LAST FEW DAYS MRS JAY

PIERRE JAY

HAVE BEEN AROUND NINETY

OPERATOR'S NOTATIONS,

POSTAL TELEGRAPH-COMME CIAL CABLES
L°)S'A

1111V

VANCOLIvk

PACIFIC

OCEAN

APAN

SAN FRANCISCO

TIME SENT Fre.

ENGLAND

CANA a

WFOUNDLANO

UNITED

tikYOKOHAMA
IIIEFInnucA

ATLANTIC
OCEAN
ST. VINCENT

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE WAY AROLNO THE EARTH.

THE POSTAL TELEGRAPHCABLE COMPANY oNcoRpoRATE.
TRANSMITS AND DELIVERS THE WITHIN NIGHT LETTERGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONF
The Company will receive, not later than midnight, NIGHT LErrERGRAMS, written in plain Ertglish, to be transnaitted only for delivery on the morning
of the next ensuing business day, at rates still lower than its staadard night message rate, as follows:
The standard day rate for a tell-word day message shall-be charged for the transinissioa s.,f a NIGISIIT LETTERGRAM. containing flPy words or less. arm
one-fifth of the standard day rate for a ten-word day :message shall be chat ged for each additional ten ords or lees in such NIGIIT LETTERGRA M.

To guard againta mistakes or delays, the sena& of a message should °nig,- it VI:PEA-MD: that is, telegraphed hues te Ow originating &bee tor
comliarison. For ties, one-half the nrepeated Ineessuse. tate is ,DArgRc1.1, ;Mulder'. ; Ueless miler se iteheated on Its etee, THIS IS AN 1."NREFEATED

MESSAGE AND PAID FOR AS SUCli, In consider,tfon whereof it Is agreed between the si !Mgr of the message and this Company an follows:
The Company shall not be liable for mistikes or delays in the transmission or delivery, or for noTi.delivery, of any UNREPEATED inessag.e. beYOnd the
1.
amount received for sending the sane; nor for mistakes or delays in the transruiss..on or gh,hvery, or for non-delivery, of any REPEATED Message. beyond
fifty thnes the sum reecived for sending the same. UNLESS FFECIA MS' VALUED; nor in any caffe" for delays arising from unavoidable interruptior in the
working of its lines; NOR FOR ERRORS IN CIPHER OR 013SCURE ME.SAGES.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery or this
a.
message, whether caused by the negligence of its servants or otherwise, beyond fiPy times the REPEATED message ra,e, at which amount this message If
sent as a REPEATED messa,ae, is hereby valued, unless a greater value is stated in wrPing hereon at the time the message is offered' to the Company for
transmission, and an add tional sum paid or agreed to be paid based on stich Value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this measag over the. lines of any other Company when necessary
Sdestination, to reac
r delivery at a greater distance a special charge wilt De
Messages will be delivered free within the established free delivery limits of the terminal office.
made to cover the cost of stitch delivery.
of its transmPting offl-es; and if any
No restionsibilit,y regarding ineasaues .attaches to this Company until thetairenlicresulted ark aceepted at one
delivering the message and any notice or
forst
he
message is sent to *men DFACS by one of 11110 Coinpany's messengers, be acts_as th age
me
instructions regarding it to the Company's agent in Its said (thee.
g within thirty days after the
presenter
This (7o.psnY shall not be liable for dem,es or statutory penalties in any ease where the c!ilnhlS fibf
S.
message is filed _with the Company for tran,nossion.
serv,ce, the following special terms are hereby agreed to
In further consideration of the redneed rate for this special "NIGHT TT:WEI:GP A
i
its;i to the a ddre.ves andlit Company ny shall be
GHT LET TERGRAMS may at the option of-the T elegraeli Company be mailed attmmil
(a)
- NI haveseharged its obllgaticm.imstreit easeawittrreenver-totieteeptylry mailing Muth Mop RIM-JR g A NI artiWniifftiff;-piTstagrimePaidr
t1lIItT
LETTERGRA
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be
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Cods
language
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(F
The above terms and conditions shall be binding upon the receiver as well as the sender of this-Nil:HT I.ETTERCIRAM.

the put

Flen!ed

240 EMPLOYEE OF THIS COMPANY IS AuTiloRIZED TO VARY

CLARENCE H. MACKAttaaEptoFig-T4 4 f
ADAMS,

CHAS
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VICE-pR Es I DENT.

EDWARD REYNOLDS, VICE-PRES, AND GENERAL MANAGE ....

cHARLES P, BRUCH.
VICE-PRESIDENT.

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LOS ALAMOS RANCH

LOS ALAMOS RANCH
September 3, 1917.

Dear Ben:

This is my first letter and it will tell you the tale of M.
Get-well-quick.
coming out here.

I was an idiot not to see a doctor in Sante Fe before
The idea came into my mind but it seemed rather a

bore and unnecessary, so I didn't.

And once here I started in to ride

as I have always done - not very far or hard - but apparently too much,
for I ought to haYe kept perfectly still for a week or two with the bit
of bronchitis I had already when I left New York.

Or it may have been

a rather rough motor drive I took which stirred up the animals.

At any

rate they got into a terrible state in the night of the 16th and I woke
up on the 17th feeling sure it was pneumonia this time.

Pond immediately

started to feed me on a quart of hot water an hour all day and by evening
my temperature was better and we guessed I didn't have pneumonia but Just
another flare up of bronchitis.

When the doctor arrived from Sante Fe

he found a congested area about as big as your fist in the lower lobe of
my right lung - the same place I'd had it when I came out, and I think the
same place I had it last November, but I'm not quite sure.

He said it was

bronchitis or light pneumonia, but seemed to be convinced that there was
some underlying tubercular cause.

I assured him of seeing everything through

T. B. classes and bet him he was wrong on that end of it.

But he was very

insistent and ordered me to lie flat and not raise my head, and sent for a
trained nurse who a-rived in a day or two from i",lbuquereue.

Meantime, Poni

and his chief of staff, Miss Behrens, who had nursed in France, did the needful for me.

The doctor came out every other night for a week.

The second

-2-

time he took away a sample of my sputum and sent it to the albuqutbrque
laboratory for examination.

The next time he came he waved a telegram

from the laboratory saying the results were negative.

By this time he

had turned squarely around and was convinced there wasn't any T. B. to it,
but still he wanted to send another specimen to Hilkowitz (or some such
name) in Denver, who he said was the best tester in the country.

It took

5 or 6 days to get a report, Sunday intervening, but finally H. wrote that
through he had searched long and diligently he could demonstrate no T. Bls.
in it.

So then we felt we could breathe easier.

the intervening days were somewhat anxious;

B ut I can assure you that

tho' I was surprised how easily

apparently, I would have been reconciled to having the T. B's. for a year
or so, as you had them.

Well, I had fourteen days of straight bed and the last four days
have been sitting up in a chair longer and longer each day, much of
it in
this wonderful sun.

on this

By the end of the week I hope to be able to walk about

floor trooly nrd the folloring reek

mildly anywhere.

dernttairs avuli Yinlk abent

Temperature has been normal for past six days.

Two things are surc, one, that this was a good deal worse crack
than I had last November

'and', two, taht I haven't had any idea how to take

care of myself in New York.

To remedy the latter I am going to hire an un-

comprotising physician to act as my keeper when I get back and am going to
become a hypochondriac.

If I can't behave myself with this as the third and

last warning, why I'm of no use to any body or myself.
Won't you please tell the directors how very much I appreciated

their kind and generous action as to leave of absence, as well
as their sympathetic attitude;

the latter being absoliktely unjustified as I am entitled

to no sympathy whatever.

It was a plain case of stupidity and failure to

realize I was sick when I came out.

However, it would be equally stupid to

go back now till the congested area is entirely cleared up;
had this crack I might have done just that.

and if I hadn't

So, if it all ends well, it may

be a case of an ill wind, etc.

Mrs. Jay has been here a week, and that has been a great comfort,
and three days ago Learned Hand turned up also, for the last month of his vacation, and besides that there are very pleasant people here and we have
every comfort, except that the distance (35 miles) from Sante Fe makes it very
difficult for the doctor to come out.
to

He hasn't been for a week but we intend

;et him out after a fortnight has elapsed since his last visit, to see what

progress has been made, so that we may know how to make plans for the futare.
This is a most lovely spot; we are on a high mesa (about 7500 feet).
In front of the house are several hundred acres of corn and beans and beyond
lies the Rio Grande Valley and beyond the Sangre de Cristo range.

Behind the

house is a pine farest stretching right back to the Jemez range.
You asked me whether this would be a good place for Katharine.

Mrs.

Jay and I think not, on account of its remotness from a doctor, also the internal
conditions of the ranch life are rather uncertain, owing to enlistments, the
draft, and other reasons.

I have no idea why you think of sending her away

this winter, but if altitude is not essential the place I went to in Aiken would
be hard to beat.,

The climate there is splendid and bracing.

cellent cbctor; the riding and driving are delightful.

There is an ex-

There is a good private

school, run by Taber, head of St. Bernards, New York, from whom you could get
information

and the Palmetto Inn where I stayed is most comfortable and

food and cooking the nearest

has

have ever found to what one would get at home.

It is kept by a very agreeable northern woman, Miss Este:, and her guests (about
40-45) are a very nice class of people, mostly women.

Through the school your

-4-

daughter would have some companions, which I presume you would want.

The alti-

tude is 500 and the place is so sandy that it is never damp.

Of course,it

would be too hot before November 1st and after April 15-30.

A lso it is only
I should feel

22-24 hours away from New York by comfortable through train.

entirely happy in sending one of my girls to Miss Estey's if that were the
suitable climate.
cable nature.

She takes no T. B. cases except one or two of a non-communi-

In fact, though Aiken originally started as a T. B. place, very

few go there now.

They prefer Asheville and that neighborhood.
In the latter you

Now, answering your letter of August 24th and 30th.
intimate I am thinking too much of business.

When you lie in bed by the hour

and day, how can you help having a few stray thoughts about what you are so
vitally interetted in?

And what harm is it?

I'm not doing anything about it

and shall write no business letlers except one to T urner about directors'
elections.

Surely you had a few thoughts and wrote a few (sic) let7ers on

business when you had a worse job ahead of you than I have.
letters and shall write him at least one.

I owe Treman several

Meantime please thank him and tell

him I'm sorry to be the cause of his vacation being shortened.

Also letters

from 7arburg and Harding to be answered in time.

Would you kind sending P. L. 7. copy of the part of this about my
illness so I won't repeat it when I write.

I can't tell you how astounded and delighted I was at the action of
the Board in increasing my salary.

It was so utterly unexpected and P. M. W's.

letter was no nicely phrased, and arriving simultaneously with the Denver report
of no T. B., it seemed as if my luck was running pretty strong.

Shall be obliged if you will answer Breckenridge Jones's letter enclosed.

Have mislaid another of your letters about the transit discussion at

-5.-

A. B. A. cAlvention. I

laying that ghost.

hope you will go

I have

and make the speech of

your life in

grave doubts about sending Hendricks.

some

it over with Treman first. Get Tickner of

Syracuse

to go and talk.

Talk

See

E. H. T. about this also. Possibly Orange Natl. Bank would toll of A. Young's
report. Let's drum up a lot of people from various districts on our side.
Joe. Chapman is with us.

Get hi: to come and talk and get some people Wfto

have successfully readjusted relations with depositors to talk.
The only argument the-r now make is that they are performing a

for the bank to which they remit.

service

T his is bunk. Bust it conclusively and

their case is gone.
Gidney writes that Treman's gold letter is producing results. I wish
copies could be sent to every other F. R. A

or Governor in a tactful way so

they might get the same thing started before the next Liberty Loan is on.
Richmond has already sent a circular. Also I wish Gidney or some one could
have this matter turned over to him to follow up and get the maximum

h best

regards to all,

Yours,

P. J.

results.

BURRO MOUNTAIN HOMESTEAD
TYRONE

NEW MEXICO.

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COPY OF LONGHAND LETTEE
BURRO MOUNTAIN HOMESTEAD
Tyrone, New Mexico

October 3d

[1917]

Dear Ben:

This is a kind of a night letter-speed reply to yours of Sept. 11th
full of interesting news, also your telegram of a week ago telling of Vanderlip's appointment as chairman of the Wax Savings Committee. What a
corker!
The very best in the country, and if you got him to do it, you
did a bully job.
That Attorney General's opinion was simplicity itself! I judge
from a letter just received from P. M. W. [Warburg] that the Board
were as surprised as anyone. Gidney writes that the Guaranty application is expected any day, and there should be two or three others. I
wish you'd send me a copy of the Atlantic City speech.I saw in local
papers that you went for state banks. Fine!

Your money committee is bully, and Wallace and Frew are coming in
strong at the finish!
As to your remarks about my salary, and yours, as expressed by the
ratio 4o-6o, I agree with you and think that's a wrong ratio, and I am
going to see why it is that your isn't raised when I come back. Did you
know that Aiken had been raised to $25 thousand?
I'm mighty glad the news is good from Ben. It seems to me good from
every point of view, not omitting safety of the person.
Mts. Jay left me a week ago tomorrow. You are right that it was well
she came out, for it helped a whole lot in every way, and she wouldn't have
left me had I not been coming down here to visit Bob Ferguson, an old friend.
He has a most attractive place and house, filled with all his Scotch furniture, and books and everything comfortable and homelike; and without, everything a farm with water on it can produce. I don't know just how long I shall
stay here but am getting on so famously that I'm inclined to come East soon
and go to some place like Groton for a week or more to get acclimated after
nearly 2 months of this altitude. Your reference to Woodward's delpurring
at the money committee seemed very characteristic.

Well, the local papers are full of the Liberty Loan, and I'm delighted to
see a plan has been worked out for issuance of fully paid definitive bonds
up to $1,000. That will cut the labor for everyone down to a minimum.
I hate like thunder to be out of it, but Treman suggests that I can help out
by letting you and others go on a vacation afterwards and that seems a mild
suggestion suitable to the invalid you all picture me. Let me tell you that
I'm going pretty strong and hope to do a man's work but that I expect to set
you some good examples of early closing hours, and weekends and the like.
Don't think of answering in your present busy-ness.
With love to you and our lunching companions.

Yrs.
P. J.

MOAN
op

HOM ESTEAD

TYRO)TYRO

MEXICO.

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COPY OF LONGHAND NOTE
BURRO MOUNTAIN HOMESTEAD
Tyrone, New Mexico
October 15 [1917]
on train

Dear Ben:

You will appreciate how good it is to be on the train sound home.
Even Kansas, now being polished off, looks good, after a region of desert
and century plants, though at the Homestead there were some bully trees,
The scheme is to harden off for a fortnight somewhere near
I'll admit.
home, and be on the job November 1st, so you can get away for a long
rest.
I hope you won't find it necessary to wait till after November
15th;
with the experience of June before us and your banks and money
committee so organized, it ought to go along without you, unless the
pressure is far greater than in June. I was mighty glad to get and read
Ben's letters and will return them from N. Y. What a disappointment not
to get sent to the officers' school after all.

Many thanks for yours of September 29th telling the news to
The movement of the Trust Co.
is great. I am longing to hear all the
details of which I have no doubt there are some interesting ones.
date.

Your scheme for the U.S. and English Chief Justices to plead
for constitutional government sounds grand. I'm glad you sympathize with
me about missing the present doings. It makes me sick but is meant to
make me well. Treman has written urging me to stay till November 1st
and judging that he represented the general view I have adopted his
recommendation, thinking it would be rather foolish to try to get into
things just as the Liberty Loan campaign reached its climax. I appreciate
very much your giving me so much time and hope I've made good use of it.
I'm
heartily sick of "resting" and the Doc tells me that's a sign I've had enough.
With best regards and expecting to see or telephone you about as
soon as this reaches you.

Yrs.,
P. J.

FEDERAL RESERVE BANK
OF NEW YORK

Fn.
j,
hevember 5, 1917.
PrDPRAr, p

Dear Governor Strong:

I am enclosing herewith minttoB

the money

committee held to-day, which speak for:'themselves.

We have been busy this aftOrnoon getting up
the pool and find everyone very cogioerative.
only selected about twenty-'five

Mr. idcGarrah

the larger banks to

participate, and their allotmenys came to about 440,000,000.
Time money was a little easier to-day.

lour discounts drop ed off, net, about 0,000,000
and we bought about 42,500,00. acceptances.
I have been atte ding meetings all day

long,

calling up banks on the r tter of the new time money fund,

so I have not had a cha

e to do much else.

' Vtry sincerely yours,

C-02,Z4-901"17-Chairman.

Benjamin Strong, Esq.,
The Homestead,
Het Springs, Va.
FJ/ RAH
Enc.

November 5, 1917.

A meeting of the Money Committee of the Liberty Loan Committee
was held at the Federal Reserve Bank of New York at 11:35 o'clock a. m.
this day.
PRESENT:

Mr. Baker, Vice Chairman,
Messrs. Alexander, Frew, Jay, McGarrah,
and Wiggin.

Mr. EcGarrah reported that he thought some action should be taken
by the committee, especially with respect to time money, he having been
advised that 6 was being bid and very little time money offered.
After
a very full discussion and on motion duly made and seconded, it was
That the committee request the bani;s belonging to the
VOr721)
fund arrangement, excluding the smaller bans, to make
an additional
fund of50,1)00,000. to be loaned by the banks on secured time loans to
run for not less than ninety dn778 at rates not less than -5 1/2 % per annum,
and that each ban.: be requested to rediscount with the Federal reserve
Bank of New York an amount e.lual to the amounts loaned by it from time to
time under the proposed arrangement, such fund to be available for thirty
days.

Mr. Frew desired to be recorded as voting in the negative.
On motion, the Meeting duly adjourned at 12:30 o'clock p. m.

Assistant Secretary.
JFC/BAR

FEDERAL RESERVE BANK

OF NEW YORK
November 4, 1917.

Dear Governor:

At the meeting of the Board yesterday the cildstion of the

,00drichandAmerican Tobacco financing,with which yqd are familiar,

was brought up and the enclosed letter expresses/the views of the
Board and the Executive Committee.

Mr. Trem

tells me that he hqs

discussed the matter informally with a numbg'r of the governors who are

assembling in Washington this morning, aid finds that their views are
in accord with those of our 7,oard.

Hq'tells me that the meeting in

WashingtOn is coraplete except for 11,i4ler of Kansas City who had not

arrived at the time he spoke.

Mri Case did not go over as our Board

felt that we should not be too dinuded of officers.

Mr. Woodward is

away for the rest of the week./
The time money pool has been completed With subscriptions of
about

45,000,000., but Mr. LoGarrah reports that the feeling in both

the cull and time money qiirket yesterday was greatly improved and the

new pool will not be usel unless necessary.
Butfalo has ;been designated as a reserve city.

I have a let-

ter from Mr. Locke in which he makes no adverse comLent on the subject.

At the directors' meeting yesterday I presented your memoran-

dum with regard tO officers of the bank.

I was authorized toalToint a

special committee of three, of which I should be one, and have in mind
appointing Er. Treman and Mr. doodward as the other tvo, members.

The

usual consideration of the salaries of clerks was referred to Mx. Peabody,
Mr. Treman and Mr. Woodward with the understanding that their duty would

Benjamin Strong, Esq.,

FEDERAL RESERVE BANK OF NEW YORK

11/8/17.

be to review recommendations made by the Governor or Deputy Governor
upon the subject.

In your absence I was substituted for you on the

committee on real estate.

Every one expressed the hope that you would take the best of
care of yourself and not get drawn into too many activities, physical
or mental, during your absence.
Sincerely yo

Benjamin Strong, Esq.,
The Homestead,
Hot Springs, Virginia.

PJ/BkH
Enc.

P. S.

From the figures of the Liberty Loan aubscrilAions

in this morning's pai,ors, Richmond and New York were the only districts

which exceeded their maximum quota.

q/
FEDERAL RESERVE BANK
OF NEW YORK

November 10, 1917.

Dear Governor:

After my conversation with the Board yesterday afternoon
they put out the enclosed statement late yesterday afternoon, and

as it did not get in the early edition of the papers I am enclosing
it to you.

You will note that they have not stated that these notes

are ineligible.

The Guaranty Trust Company came in this morning and asked
my intrepretation of the statement in respect to the American Tobacco
notes, and I pointed out that the Board had not declared them to be
I suggested that they make an

ineligible but merely undesirable.

appointment and discuss the matter directly with the

Board, in which

case they would le in full possession of the Board 's views and not
liable to

any misunderstanding which might possibly arise if we here

attempted to interpret the Board's views for them.
We were very quiet in-day.
Gidney were taking the day off.

Curtis, Sailer, Kenzel and

Our loans and discnunts ran down

about 04,000,000. through failure of one or two of thelarer institutions to renew -their notes.

There seems to be nothing else of special interest to write
you about to-day.
Sincerely yours,

Benjamin Strong, Esq.,
The Homestead,
Hot Springs, Va.

http://fraser.stlouisfed.org/
PaiT7
Federal Reserve Bank of St. Louis