Full text of Papers of Benjamin Strong, Jr. : Correspondence with the Federal Reserve Bank of New York : Miscellaneous Memoranda, 1914-1927

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nENJ, STRONG,

.11

PERSONAL,
MWORANDUM.

Some seven or eight years ago there was organized in the City of Washington
a concern

known as the United States Trust Company.

president was a

Its first

Mr. Rixey, of Alexandria, Va., a brother of the late Congressman Rixey of vit.-

ginia, and also of the late Surgeon General of the U.S. Navy.
field which was somewhat already over-banked,

satisfactory.

its progress was slow and unAt one time Mr.

Its management has changed several times.

D. N. Morgan, Treasurer of

to its

the last

the United States under

administration of

About three years ago Mr. Eldridge E.

President Cleveland, was its president.
Jordan eucceeded

Entering a

Mr. Jordan had entered the banking field

presidency.

of Washington as president of thlifferchants and Mechanics Savings Bank,

stitution was absorbed by the United

States Trust Co.

and

kept open as

which inone of its

branches when Mr. Jordan succeeded to the presidency of the United States Trust
Mr. Jordan's

Co.

not

management of the

Merchants and Mechanics Savings Bank had

been eatisfactory to the office of the Comptroller of

official

one time that

called together

to take away from him all

its

board of

making of a loan

involving the

had a personal

On another occasion

and at

directors and required them
This action

powers relating to the making of loans.

gray out of some transaction
interest.

the Currency,

the

in which Mr. Jordan

Gomptrollereer-the-Curreneyi

when Mr. Jordan had purchased 1,000 shares of the capital stock of the Commercial
National Bank

Washington, utilizing the assets of the Merchants and Mechanics

Savings Bank for that purpose, the Comptroller of the Currency required
distribute the stock so

purchased

ants & Mechanics Savings Bank,
large a part

and to take it out

on the ground that

the assets

of the Merch-

it was improper to

of the assets of that bank at a price considerably

him to

invest so

in excess of

book value of the stock purchased.
Mr. Jordan had been in control of the United States Trust Co. only a few

the

months when its board of directors ousted him, largely because he had conducted
its affairs in violation of the orders of the board of directors.
succeeded as president of the United States Trust Co.

by Ex-Senator

Scott, of W. Va., who, however, remained at the head of the
few months, he in turn being succeeded by Mr. Jordan
year, Mr. Jordan

having regained

He was

Pathan B.

institution

only a

the beginning of a new

control of the bank.

He remained president

of the Trust Company until May 1913, when he was succeeded by Hon. Lawrence O.
Murray, who had just retired from the position of Comptroller of the Currency.
Upon retiring from the presidency of the Trust Company in May 1913, Mr. Jordan
became chairman of the board of directors of that institution,
the dominant factor in it.

thus remaining

It is reported that Ur. Murray retired from the

presidency of the Company in August 1913, but no announcement of the fact was
made at that time and the fact has only been ascertained since the affairs of
the Trust Company were taken over by the Munsey Trust Co. of Washington, on
Nov. 21, 1913.
For several years there have been unfavorable rumors as to the condition
of affairs in the United States Trust Co.
lirOwen T. Reeves, made an examinatio

ing correction.

Trust Company.
ington opposed to

About three years ago Bank Examiner

f the Company, reporting conditions requir-

His report was strongly combated by those

in control of the

At the same time there were two or three other banks in Wash-

Bank Examiner Reeves

concerning their affairs.

because of recommendations made by him

Mr. Reeves was

transferred

to the Chicago district
6

and was succeeded by Mr. Samuel M. Hann, a most thorough-going and conscientious
bank examiner.

His findings

sustained those

previously found by Mr. Reeves, and

it is understood he made reports to the office of the Comptroller of the Currency recommending the correction of

certain evils said

to exist

but his recommendations were never pressed by the Comptroller.
policy of those identified with
Comptroller of the Currency,

the United

States Trust Co.

with the result that when he

the Company;

It became the

to cultivate the

retired from that of-

flee in May 1913 it was to become the president of the Company.
Mr. Hann retired from the position of Bank Examiner in midsummer 1913 to

become identified

Prior to his retire-

with a trust company in Baltimore, Md.

ment it is understood that Mr. John Skelton Williams, Assistant Secretary of the

Treasury,

who has largely dominated the office of the

Comptroller of

the Cur-

rency since the incoming of the present administration, instructed Mr. Hann to
make a thorough examination of the

alleged to exist therein.

Company with a

view to

Mr. Hann's reports are

Comptroller of the Currency.

correcting the evils

on file in

the office of the

Upon his retirement from the position of Bank

Examiner for the District of Columbia, he was succeeded by Mr. Richard W. Goodhalt, the present National Bank Examiner, well

ient

known as one

of the most efficFor five

examiners in the service of the Comptroller of the Currency.

years he was bank examiner in the Philippine Islands and for another five years
bank examiner at large in

the United States.

His specialty while employed in

this country has been the mending of broken banks and the
banking situations.

the United States

handling

of difficult

Mr. Goodhalp concluded his examination of the affairs of

Trust Co. about

Nov. 17th,

On Tuesdat, Nov. 18th, late in the afternoon, the Acting Comptroller of

the

Currency, Mr. Kane, called a number of the leading bankers of Washington on the
telephone, requesting that they meet him and the national bank examiner at the
latter's office, 1422 F

Street,

At this meeting were pres-

at 8 o'clock P.M.

ent the Actiing Comptroller, Mr. Kane, the Bank Examiner, Mr. Goodharet, the legal

advisor to the Comptroller of the Currency,

Mr. Elliott, and the presidents of

the leading trust companies in Washington and of several national banks.

condition of affairs in

the United States

men by the Acting Comptroller,
Comptroller.

the Bank Examiner

and

It was represented to the bankers

stock of the United States Trust Co.,

Trust Co. was laid before
the

these

The

gentle-

legal advisor to the

assembled

that the capital

amounting to 4,200,000, was impaired to

This impairment resulted from an artificial

the extent of about 4,140,000.

Inflation of certain real estate carried by the Company, which on appraisement
by competent judges was held to be of less value than that at which it was
There was also, according to the report

carried on the books of the Company.

of the bank examiner, above $600,000 in doubtful bills receivable, and $400,000

in second mortgage

The bank examiner stated that he believed, however,

notes.

that on slaw liquidation perhaps as much as $300,000 of the doubtful paper might
be paid, and he figured that with slow liquidation all the depositors of the Com-

pany could be paid.

The deposits were in excess of $6,000,000 and the number
The Acting Comptroller of the Currency took

of depositors was given at 55,000.

the position that the Trust Company must either at once make good its impairment
of capital or go into

voluntary

liquidation, otherwise he would feel justified

The bankers present

in closing its doors.

were of

nothing

the opinion that

could be done to save the Trust Company as a company, because it sloe well under-

stood that the ownership of the

stock

rested in bank loans, and on an

the stock it was exceedingly doubtful if the stockholders could make
pairment.

good the im-

It was the disposition of a number of the bankers present to do

what they could to save the depositors from embarrassment, and there was some
discussion as to what might be done by the associated banks of Washington to pay
off one-half of the deposits at once and the remainder as soon as the affairs of
the Company could be

The attorneys

liquidated.

for the United States Trust Co.

were called into consultation with the Acting Comptroller of the Currency, who comp
municated his views to them.

They refused to close the institution and declared

it to be their intention to combat the findings of the examiner, whereupon the
meeting adjourned.

The next

morning, Nov.

19th, the Assistant Secretary of

the Treasury, Mr. John Skelton Williams, assembled in his office certain of the

directors of

the United States Trust Co. and others, including the Acting Comp-

troller of the Currency, the bank examiner,
to the Comptroller, Mr.

Elliott.

Mr. Goodhardt,

and the legal advisor

He sustained the position taken

by the

author-

) ities in control of the United States Trust
of the bank examiner.

Co. and discredited the findings

In reviewing the criticisms of the examiner, he justified

the inflation of the real estate values in the accounts of the Company and also
questioned the accuracy of the examiner's reports as to certain bills receivable
which had been characterized by the examiner as "doubtful".

It appeared at

this time that the Assistant Secretary of the Treasury had thrown the Acting
Comptroller of the Currency and the National Bank Examiner out of court, and so
it was understood during

Wednesday, Thursday and Friday, Nov.

19th, 20th and

21st.

At the meeting of the Acting Comptroller with the local bankers on the
night of

Nov. 18th,

it was agreed among the bankers that the authorities of

the Stock Exchange should been seen and that brokers should be pressed not to
deal in the stock of the United States Trust Co., so that no alarm might be spread
by sales of the stock on a falling market.

Notwithstanding great pressure

to sell on the days mentioned, there were no transactions on the Exchange, although it is well understood that certain of those identified with the United
States Trust Co. attempted to make sales.

It is quite certain too that

maid-.

ere acquainted with its affairs availed themselVes of the opportunity to withdraw their deposits, and the news gradually spread to others having accounts
with the Company.

By lo'clock Friday, Nov.21, visible runs began at the of-

fice of the United States Trust Co. and at its several branches.

Long lines

of people were gathered in front of its offices, where they remained even after
the close of banking hours.

Many persons stood in line all night in order to

be in position to withdraw their deposits at the opening of business Saturday
morning.

Late Friday afternoon there were rumors that negotiations were being

conducted on behalf of the Munsey Trust Co. to take over the affairs of the
United States Trust Co., and at 10 o'clock Friday night announcement was made
by Mr. Olivier, acting for Mr. Frank A.

Munsey, to

the effect that the Munsey

Trust Co. had bought control of the United States Trust Co.

At 2 or 3 o'clock

-.6-

A.M. on Saturday, the 20th instant, bankers representing the Clearing House of
Washington and trust company presidents were called to a room in the Shoreham
Hotel by representatives of

ika Mr. Munsey.

These representatives included

Mr. Olivier and Mr. R. Lancaster Williams, of Baltimoee, who is a director of

the Munsey

The latter had been a leading factor in the negotia-

Trust Company.

tions looking to the absorbtion of the United States Trust Co. by the Munsey
He is a brother of Assistant Secretary of the Treasury, Mr. John

Trust Co.

Skelton Williams, and has spent much of his time in Washington and at the office

of his

brother in the Treasury since

the Treasury in the spring of

the

latter

became Assistant

Secretary of

present year.

The Wunsey Trust Co. was organized about six months ago, and Mr. R. Lancaster Williams, of Baltimore, acted as financial agent in placing the stock
that company.

Ever since he has been closely identified with its management

and in soliciting accounts for that company and in up-building its business.
Through his brother, Mr. John Skelton Williams, he has been given many opportunities to meet bankers of the country as they have come to the Treasury at

Washington

on official business with the Assistant Secretary, Mr. John Skelton

Williams.
It was represented to the bankers called at this early morning meeting

that

the condition of affairs was such that the Munsey Trust Co. had agreed to

take over the business of the United States Trust Co., pay its depositors and
liquidate its assets.

If anything should be left after the claims of deposi-

tors were satisfied there would be a distribution to the stockholders of the
United States Trust Co. either in cash or in stock of the Munsey Trust Co.
In order to meet the demands of depositors the United States Treasury had agreed
to deposit #1,000,000 in the 11 national banks of Washington at the

opening of

business, Saturday morning, Nov. 22, the national banks in turn to deposit the
money at once in the Munsey Trust Co. and the Munsey Trust Co. to secure the
same by depositing collateral satisfactory to the Secretary of the Treasury with

-7

the Treasurer of the United States.

It was also represented to the

bankers

assembled that if the Clearing House banks of Washington were to agree thus to
become the conduit through which this #1,000,000 fund should be placed in the
Munsey Trust Co. that Mr. Munsey himself would deposit #500,000 in cash in the
Munsey Trust Co. at the opening of business Saturday morning.

Mr. Munsey

being in the city, the bankers present requested that he sign a statement to
the effect that he would make this deposit on his own account, but his represta-

tives

present refused to have Mr. Munsey awakened, on the ground that he was

ill, and gave positive assurance that what they represented in this particular

would be

faithfully carried out by him.

Upon these representations being

made, the local bankers agreed to receive the Government fund above mentioned
and

stand good for the same to the Treasury, they being the only concerns in

Washington which cold under
deposits.

the law receive money from the Treasury as public

When the vaults of the Treasury were opened at 9 o'clock Saturday

morning, Nov. 22, the #1,000,000 in cash above mentioned, was withdrawn therefrom
and transferred directly to the office of the United States Trust Co., which immediately began the payment of deposits to those withdrawing their accounts.
Al]. day Saturday the runs

continued,

and at 4 o'clock Saturday afternoon represen-

tatives of the Clearing House banks met, there

being

A. Munsey, President of the.Munsey Trust Co.

present

with

them Mr. Frank

It had become known that Mr.

Munsey had not deposited #500,000 in cash in the United States Trust Co., as
promised by his representatives.

Mr. Munsey was interrogated as to why he

had not made good the assurances made the local bankers.

He replied that he

did not choose to do so-- that he regarded the proposition as silly-- that he
was a judge of human nature-- that the difficulty was

over and

reason why the local bankers should hold him on a technicality.

that he saw no
Besides he had

had no time to prepare himself to deposit #500,000, and besides his representativa
had no authority to make such assurances for him.
prOmises was complete.

His repudiation of their

Since the events above

described, it

has become known that the Munsey Trust

Co. did not deposit its own collateral at the

Treasury

to secure the *1,000,000

fund advanced through the 11 Clearing House banks of Washington, but that it
did deposit *1,610,000 of the assets of the United States Trust Co., whose affairs
it had taken over under the circumstances above described.

The Assistant
found occasion

Secretary of the

to take to task

Treasury,

the local

Mr. John Skelton Williams, has

bankers who questioned Mr. Munsey re-

garding his failure to make good the promises of his representatives, and has
even suggested that an apology be made to Mr. Munsey,

and has

attempted to put

a construction upon the promises of the representatives of Mr. Munsey at variance with the understanding which the local bankers have as to just

what

those

premises were.

At 9 O'clock on

the

morning of Saturday, Nov. 22, Mr. R. Lancaster Williams

delivered in person to some or all of the local banks the written guarantee of
the

Munsey Trust Co.,

signed by its

that the Munsey Trust Co.

president,

Mr. Frank A. Munoey,

the effect

would stand good for the deposit of *1,000,000 Govern-

ment funds advanced to it by the United States Treasury through the local banks.
It is understood that Mr. R. Lancaster Williams' efforts in negotiation with the

authorities of the United States Trust Co. were prolonged and arduous, and were
fully matched by the energies of the Assistant Secretary of the

John

Treasury, Ur.

Skelton Williams, in allaying this latest financial trouble in Washington.

The net result of these operations is that of the *6,000,000 deposits of
the United States Trust Co., from *4,000,000 to *5,000,000 have found lodgment
in the Munsey Trust Co. and have been obtained by that company without the use

of any money upon the part of Mr. Munsey or the use of any of the collateral of
the Munsey Trust Co. in securing the deposit of Government funds with that institution, a result
cooperation

which could only have been accomplished by extremely effective

between the United States Treasury authorities and the authorities

of the Munsey Trust Co.

In repudiating and discrediting the work of the officials of the office of

Comptroller of

to act

question has

Currency, the morale and spirit

been seriouslyeeffected.

ing corps has
ington

the

of the national bank examin-

In selecting one institution in Wash-

as liquidating agent under the circumstances

been raised as

to whether the

accomplished otherwise than through

been

Government officials and

In explanation

of the selection of

and the support given to it by the Treasury, the following

official statement was

Treasury, and is

indicated could have

collusion between

the authorities of the Munsey Trust Co.

the Munsey Trust Co.

results

above recited, grave

put

out by the office of the Assistant Secretary of the

to be found published in Mr. Munsey's paper, the Washington

Times, Saturday, Nov. 22, 1913:

The situation
"There is no need for apprehension.
over which the Department and financial interests have been
working has been fully met by the Munsey Trust Company.
The Munsey Trust Company was the best qualified bank in
This company had the
Washington to handle the situation.
largest reserve fund-- more cash on hand-- than perhaps any
The cash at hand is sufother Washington
situation,
the
Department is fully assured.
ficient to meet any
Approval has been given to the merger of the United States
Trust Company with the Munsey Trust Company and every dollar is
One million dollars in cash was deposited with the
safe.
eleven national banks of the city this morning, upon the receipt
of proper security by the Treasury, this money going through the
Clearing House .to meat the needs of the Munsey Trust Company.
This money was deposited by the Department in pursuance of the
Administration's policy to aid any inqitut,ion knome to be sound
Financial
and good in meeting an unwarranted or ed,igefe4SUWrun.
Money
affairs throughout the country are in the best of shape.
returning
crop
funds
ahead
the
banks
are
is comfortable and many of
of time."

institution.

AiL- rifb4.

et
An examination of the receipts and disbursements of
the Treasury Department of the United States Government during
the last ten years shows that the receipts average to run very
much the same throughout the four quarters, say about 4155,000,000,
but that the disbursements show heavier payments practically all
years in the first quarter by something like an average of
420,000,000 over the third quarter, which is the time of smallest disbursements. The second and fourth quarters seem to run
between the first and third in amount, the figures averaging say
about $170,000,000 of disbursements the first quarter, and
4150,000,000 the third. Of the receipts those from customs do
not vary during the quarters in sufficient amount to be worthy
of consideration. If the customs receipts, therefore, are reduced during the year 1914 by a round amount, say 467,500,000,
it would be safe to average the loss at about $17,000,000 a
quarter. The figures available at the present moment would seem
to warrant an estimate of $67,500,000 as being the probable
amount of decrease in customs receipts in 1914, everything being equal.
Speakers on the floor of Congress on the Democratic
side, when advocating the tariff reductions, claimed that imports would increase so largely under the new tariff that the
government would make up enough more on the extra amounts imported, where duties had only been decreased and the articles
had not been put upon the free list, that the total revenue received would not be reduced. The figures for November and December 1913 compared with those of November and December 1912,
and those of January 1914 compared with January 1913, would not
seem to bear out this theory, for they show as follows:
Total Imports.

November 1912
December 1912
January 1913

f153,000,000
f154,000,000
4163,000,000
$470,000,000

1913
1913
1914

1146,000,000
t184,000,000
154,000,000
4486,000,000

For these three months the increase in imports is $16,000,000,
oriabout 3.4%, whereas the increase in percentage of imports admitted free of duty is about 4%. In the year 1912 the percentage
of customs receipts to total imports was 39.22%. For the first
ten months of the year 1913, the percentage was 38.93%. Although the tariff law went into effect October 3, yet the collection of tariff on goods held in bond during October was so
great that it should be included on the old basis. The months
of November and December showed a percentage of collection of
customs to total dutiable imports of 34.42%. The percentage for
November and December 1912 was 38 1/2%. Due to the fact that
November and December imports contain special classes of goods
intended for the Christmas trade, it might be nearer correct to
figure the difference in percentage between those two sets of
months in 1913 and 1912 This would mean a loss on total dutiable
imports of 4.08%.

-2-

Will use 1912 for the comparison, as it is the last
full year bearing the old tariff. The total imports for 1912
were 41,818,000,000. If they should hold the percentage of increase shown during the three months under consideration, the
total imports for 1914 would be $1,880,000,000 in round figures.
Of this amount the percentage free under the new tariff, based
on the months of November and December 1913, would be about
60%, leaving a total of 4752,000,000 dutiable imports. If the
percentage of receipts against dutiable goods in November and
December 1913 of 34.42% is maintained, this will mean a total
collection of 4256,838,000 against $326,339,000 in 1912, or a
loss of$67,500,000 for the year.
Should there be no increase in total imports in 1914,
and the reports for January received this morning would make it
appear doubtful whether there will be much increase, figuring
the total about the same as that for 1912 and 1913, or say
41,800,000M,the loss in customs receipts in 1914 would be
480,000,00U. In applying this decrease to the financial arrangements of the Treasury Department of the United States, it must be
borne in mind that the appropriations for this year will undoubtedly be larger than they were last year, or estimates already
made are out of line. Should this be the case, if the income
tax does not yield more than $50,000,000 and the customs receipts
fall off $80,000,000, the Treasury will be depleted by 430,000,000,
plus or minus the difference in the disbursements for the two
years.
United States Treasury.
Net Balance in General Fund.
Deposits in National Banks.
January 1913
February
March
April
May
June

July
August
September
October
November
December
January 1914
February

833,000,000
44,000,000
42;000,000
42,000,000
46,000,000
97,000,000
57,000,000
64,000,000
78,000,000
91,000,000
92,000,000
85,000,000
76,000,000
66,000,000

Balance including deposits in
National Banks.
January 1913
February
March
April
May
June

July
August
September
October
November
December
January 1914
February

145,000,000
147,000,000
148,000,000
141,000,000
133,000,000
164,000,000
132,200,000
127,200,000
123,400,000
124,900,000
119,400,000
111,800,000
104,700,000
92,800,000

Suppose a man in New Orleans has a 60-day bill for cotton
which has been sent abroad.

He could send that bill abroad to

London, for collection, and, then, according to the rate
exchange, they would determine the question of whether or not it
was profitable to send the money over;

what does he do ?

but instead

of that,

He knows that in New York City there is a very

great anolunt due from importers to the countries to which the
as-

cotton is shipped, for which provision must be made;

so, inotcad

because New York is the leading importing city, has so very large
a share of our imports, instead of having his transaction with a
foreign country, he mates use of that city as a clearing house,

and balances off his draft against the debt which the importer in
New York

has

to pay.

That inevitably makes New York the leading

center in the matter of foreign exchange.
change it.

No legislation can

That is due to the conditions of trade.

Instead of

sending bills abroad to await the slow course of collection of
their exchange bills and perhaps deductions for shipments of gold,

bills are sent to New York, where they may be exchanged for bills
drawn for payment of imports.

But under such a plan as is

proposed, a regional bank in any center, if it is desired to make
a special4y of foreign exchange, would be under

such

constant

danger of demands from other sections of the country that it could
not make its calcUlations or make full provision for taking care
of the exchange market.

Without banks, a man, Ev.y in New Orleans, who sold cotton

abroad, would have to have the money shipped back to him in payment,
and would not have the use of it for many days.

Under our present

banking system, however, this would not be necessary, because New
York institutions would purchase a draft, drawn by the exporter of
the cotton on the foreign bankers of the party to whom he sold the
cotton, and would sell the exchange so made to importers who required
it.

New York City acts as the clearing house of the United States

for foreign items, because it is the principal city of import, and
so requires the exchange made by the exporter
it to the importer

in order to ftrnish

to pay for goods he has purchased abroad.

While

other cities have some foreign business, yet New York City is our
leading centre in foreign exchange.

No legislation can change it.

It is due entirely to conditions of trade.

Foreign exchange bankers either hold time bins purchased
by them to maturity or discount them, depending upon their requirements, and a regional system of banks would have to do the same, and
often in conflict

with each other.

A central bank, however, would

be able to base its operations upon the requirements of the country,
and so would at all times stand between our business interests and
those of foreign countries.

EXTRACTS FROM LETTLRS REGARDING

COTTON
Mr. Kent. -

August 31. 1914.

"Ordinarily we import a great amount of cotton
cloth from Great Britain, but as Germany will not take any of
our cotton this year, and as probably very little will go to
France, it will mean that a large part of our crop will be
retained in America, which will undoubtedly result in an increased production of cotton cloth in the States, which will
reduce the amount of our imports from Great Britain. Great
Britain, however, will need cotton in order to manufacture
war supplies, and as well to take care of the needs of her
Colonies, and her cotton mills will probably be left manned
sufficiently to take care of such requirements even as a war
We should therefore be called upon very soon to
measure.
supply a considerable amount of cotton to Great Britain. While
Russia had an unusually large wheat crop, yet it is going
to require more with her Arny in the field than is ordinarily
the case because due to destruction larger supplies are required
at such times. Then again, it is very difficult to get wheat
from Russia to England. Considerable has been coming through
Denmark up to date but the floating mines that the Germans have
placed in the North Sea have made such traffic very dangerous.
It seems true, however, that the shipments so far from Denmark
that originated in Russia, have been very great. Great Britain,
however, does need a tremendous amount of American wheat. The
amount of wheat and cotton that Britain will import between
now and January 1st, provided she can keep the German Fleet
bottled up, together with imports from the States of many
other miscellaneous articles required, should mean a large
balance in our favor based alone on exports and imports between
the United States and Great Britain from now until January 1st. "
Mr. Kent. -

September 7th. 1914.

" Regarding Birge Forbes, would say that their
drafts are ordinarily drawn on Kleinwort Sons & Co. or on Parrs
Bank. It would seem to me, however, that by confining them to the
latter institution, which is a member of the London Clearing House
freely in this market as well
and whose bills can be discounted
as being a safe name for us to purchase, that we can go on with our
business with Birge Forbes exactly as in the past. I do not believe
that their shipments will amount to enough to come anywhere near
the total that we will be justified in taking of acceptances upon
Parrs Bank. When in Liverpool, before I took my trip North, I
called upon the English Buyers of Birge Forbes cotton. They told

-2-

me that they had purchased cotton of them for something
over 15 years and that they never had the slightest friction
with them, and they considered them reliable in every particular.
This was most welcome information, for I have never had an
opportunity before of talking with the people here with whom
Birge Forbes have dealt. I understand that they sell all of their
cotton to this house. If we can obtain cotton bills on Parrs
Bank from Birgo Forbes it would seem a most excellent business
at the moment for it would give us a most satisfactory exchange.
The feeling here is that even if cotton acceptances are discounted
freely in this market, yet that there will be very little demand
from the States while the price of cotton remains as high as it
is today.
Many buyers of cotton here feel that because of the
inability of Germany and France to make purchases, it is going
to leave such a tremendous amount in America that the price must
inevitably fall off very materially. As the Spinners do not
need cotton for the moment they have apparently decided to wait
another 30 days or so unless in the meantime the price of cotton
drops materially. Of course the question of the amount which will
be used here depends upon a number of developments that are yet
impossible to foresee. For instance, England exports an immense
amount of cotton yarn and cotton cloth which is manufactured from
the raw cotton. A part of this ordinarily goes to America, but it
seems to me that with the large amount of cotton that is going to
be left on our hands, that we may manufacture our awn supplies
to a much greater extent than is ordinarily the case. While
England will need cotton for Army supplies and her own people
yet her ability to export even to India and other places is going to
be hampered because of the moratorium. Some accepting houses that
accept for raw cotton being shipped to England, also accept for
cotton goods that are exported to India and other British Colonies.
On this account the merchant who ordinarily buys the cotton cloth
and cotton yarn of the mills with the acceptances, is going to
have as much difficulty in getting his parer discounted as is true in
the case of the United Jtates buyers of English acceptances. The
result is going to be that while the situation is being worked out,
cotton will not be required by the mills. "
Mr. Kent. -

September 10. 1914.

" We now come to the Cotton Houses. Nugent is willing
to discount bills on all these houses with our endorsement and
suggested that I wire you to that effect the other night, which
I did. Yesterday, however, his Liverpool representative came down
to London and we had a chat with him after luncheon. He states
that the Cotton market in Liverpool is in such an upset condition
that he does not consider it safe to take any acceptances on Cotton

- 3-

As soon
Houses at present no matter what their wealth is.
as the Cotton market has been re-established on some sort of
satisfactory foundation, the names given in the list would
be safe provided no serious difficulties arise in the meantime
that affect them individually. "
Mr. Kent. -

September 21, 1914.

"Conditions in the Cotton trade in Lancashire are
India is not able to buy cotton roods of the
still impossible.
Spinners because its shipment of Jute and other commodities
have been so interfered with that they have nothing with which to
pay for it.
China is buying nothing and it looks as though
the Spinners are going to have a difficult time in placing their
This phase of the situation must work itself out a little
goods.
better before there will be much demand for cotton even at low
prices, and I do not anticipate much movementfrom the States until
a better market can be found for cotton goods and cotton yarn.
Great Britain exports three quarters of the cotton which she
manufactures, which
give you some idea of the necessity of
finding an outside market if they would keep their mills employed.

will

Mr. Hurlbut. -

St. Louis, Oct. 1, 1914.

" English houses are buying a few small lots of
cotton, but are holding back purchases and shipments until bankers
abroad give them adequate banking facilities for handling their
business. Recent letters from English houses to their American
partners indicate an optimistic feeling as to an early resumption
of usual activity in the cotton trade.
The big German houses are
not trying to handle cotton at present.
Mr. Marcus of Heineken
& Vogelsang representative at Dallas stated the head office in
Germany wrote him the German Government had strictly forbidden
business men from buying goods to be shipped from foreign ports,
unless such purchases were made against credits already in these
countries. Bankers in Memphis say firms with ausso-German affiliations are expecting to do a big amount of business later in
the season.
The "Buy-a-Bale" movement seems to be growing throughout the country. I note by newspapers a meeting is to be held in
New York to consider the advisabiliiry in joining in the scheme. It
is plain to me the plan will prove a "boomerang,' to the South. Not
alone will it draw money out of principal cemtersthere, but it
will postpone payments to country merchants. As compared to the

millions of bales which will have to be carried over, only an
infinitesimal proportion of total will be bought outside cotton
growing states. Mr. Thomas West? Jr., told me today the St. Louis
' Union Trust Co., acting as depository for Jt. Louis "Buy-a-bale"
Committee had in the rand to date 4250;000.00, $100,000 of which
was contributed by the Busch family.
Mr. Brinkley Snowden, the largest property owner and
richest man in Memphis, told me Monday he estimated the assured
In addition to the 2,800,000
cotton crop at 15,000,000 bales.
carried over from last season. He is thoroughly convinced that
cotton would have sold at 8 cts., per lb., even if there had been
no European war.
Mr. George R. James, banker, planter and manufacturer,
in Memphis, at the beginning of the Buy-a-bale movement, sent six
salesmen to visit territory in the Memphis Cotton Belt. These men
covered 20 towns per day and were on the road 10 days. He peru, mitted these 'salesmen to offer wagons and other farm implements
to cotton growers, either for cash or for cotton at 10 cts. per lb.
While sales were made by his solicitors he did not receive in
payment one pound of cotton. This shows the effect of Buy-a-bale
publicity on the farmers; naturally, the country merchants who
supply planters with necessities are the sufferers.
In years
1/Paat planters have sold cotton for 5 cts. and 6 cts. per lb. and
business people do not understand why farmers should not be expected
to bear their proportion of present price depression. I am writing
,,'you this information as the cotton buyingmovementseems to be general
It is a matter
and it is misunderstood throughout the North.
of fact that almost any planter in the South would be more than
glad to contract sale for his entire crops of cotton during the
next ten years at 10 cts. per lb., which would bring him a handsome

profit.

My personal opinion is that the agitation for carrying
If conditions in the
the cotton crop is a tempest in a tea-pot.
cottom situation were permitted to adjust themselves naturally,
the operation could take place more easily without those un-economic
and disturbing plans' for assisting cotton planters.
The St Louis bankers mentioned in above paragraphs told
me of the committee now vis'ting Vew York trying to arrange for a
pool to carry cotton at ;30.00 per bale. A number of Bankers gave
their approval to this plan in order to offset the Buy-&-bale
proposition. These men believe cotton purchased at c;;;30.00 per bale
will be good security, and think it would place the selling power
in the hands of country banks and country merchants, who in turn
would be able to restrict cotton planting this next season. "

-5-

Mr. Hurlbut.

Cincinnati, Oct. 5, 1914.

" Bankers in Memphis, Louisville and Cincinnati say
jobbers are worrying about collections in Georgia, Alabama and
Mississippi. The latter claim it is impossible to get payment
The cotton situation in
of accounts awing in those States.
States East of the Mississippi is different from that in Texas.
In Texas a majority of cotton planters own their farms and grow
to some extent, other crops. In Eastern cotton states a large
percentage of cotton planters are of the tenant class and grow
crops from year to year entirely through the assistance of country
merchants and country bankers. "

Mr. R. U.

Patton, Waco, Tex.

Oct. 10, 1914.

" In regard to the cotton situation in Texas, it is
simply this: A large crop without an adequate market. in
Central and South Texas the army worm has eaten the foliage
which affects the unmatured bolls and detracts from the quality
as well as quantity. In North and Western Texas, the crop is good.
I believe, however, the crop will come nearer four million bales
than five million bales estimated in the Government report. The
price on the small amount that is bought brings from 6 cts. to
Some merchants are taking it at a better price in
6: cts.,
payment of store accounts. Much of the cotton is being held for
as soon as any quantity is put on the market, the price goes down.
The farmer is spoiled by the politician. He has been taught to
accept too much. He is not willing to accept a loss for the year's
business as other business concerns sometimes have to do. He
feels at liberty to postpone payment of his own debts because the
politician tells him that the price of cotton will be fixed by
legislation, so it will enable him to sell at a profit. They are
trying to get a law passed to limit the planting of cotton next
year. This would have the effect of increasing the present crop
value and teach the farmer to diversify his products.
Texas is really not in such bad shape, as we have made
an excellent feed crop and the prices of livestock are high. Dut
everyone is talking hard times and the farmer believes that he is
worse off than actual conditions would warrant.
If they should by any means regulate the limited planting
of cotton next year, cotton at present prices would be a great
If any ti-re you need any information from Texas, I
speculation.
know you feel at liberty to write me and I will be glad to be of
use as far as my knowledge goes. "

A.H.Lindley & Co.,
Dealers in Everything
Lamesa,Texas,9/15,14
Sanger Bros.,
Dallas, Texas.
Gentlemen:

We are just in receipt of your favor in regard to placing cotton as credit on our account and we ere goad to see that you have
taken this step to try and relieve the situation and we are sure it
will help greatly though at this point and time we cannot see our way
out on account of the lask of money to pay for heading maize end picking cotton.

The banks here have been all in all the year and absolute

ly will not advance for head cutting or cotton picking. 7e have tried
to relieve this situation by offering to honor orders from farmers in
favor of their hands but the Mexicans will not accept this. If we were
able to pay cash for a part of the maize heading we could get a great
deal of it on account and turn to you and others or sell for cash and
get returns which would start the ball rolling and fix it so money
would be ready for the picking. We have an immense crop of both feed
and cotton enough of either one I am sure to meet every indebtedness
of the f4rmer but as it is now we are tied. Our customers are after us
every hour to pay cash for their feed which we cannot do. As a result
many headers are leaving and that leaves us in hard shape. The farmers
are all anxious to turn their cotton to2us on the holding basis if
they could

Dick it: The cotton factors only tender us 020.00 a bale
at

for immediate sale or discretion and if we do that the cotton will be
out of our hands and will do you no good. The writer attended several
conferences while in Dallas and heard many propositions worked out
but they all failed to make any allowance for the shortage of money
to pick the cotton, Usually the cotton pickers are our best trade at
this time now they are as scarce as other customers and we are at a
loss to know what to do. We will appreciate any assistance you may be

-2-

able to offer and will suggest that if you will allow us to make draft
for $15.00 a bale for picking, we can turn cotton over to you in a
hurry. Think this over and see how it appears to you.
We are trying our best to get maize to fill Mr.Berry's order
but under the present conditions it will take a month to get one car.
Assuring you that we appreciate your proposition and are doing
all in our power to carry it out,

Gentlemen:

We appreciate what you have agreed to do in regard to the
cotton. The reason we asked for 'the tickets to be left here was if

we should have a hhance to sell the cotton the tickets would be where
we could get them. I wish you would make out statement in full and attach a note due on or before Jan the first for the amt and I will attach cotton tickets at the rate of tV where they are owning us we are
handling it on that basis. The bonded warehouse will be in shape by
the first of next week and I will send wou the bonded warehouse tickets.

if this is satisfactory would be glad to hear from you by re-

turn mail.

Very truly yours,

L.B.Selman & Co.

Joseph .Floyd,
Dry Goods & Millinery
Madisonville, Texas, Sept.,17th,1914
Sanger Bros.,
Dallas, Texas.
Gentlemen:

ReferinR to the note that will mature on Oct.lst, I am forced
to ask you to please extend this note for a short time as we cannot collect anything now until cotton begins to move which I
trust will be real soon.
We

are

makeinR a fine crop and condions would be good in this

country if we had a market for our cotton and I trust we will have
this before many

more days.

I regret to have to ask you to hold this note after maturity
but I am forced under this condion to do so.
Trusting this will meet with. your

approval

as I am sure it

will and thtt this condion will soon be back normal, I am,

Yours truly,
J.W.Floyd

T.O.Stamps & Co.,
Furnishing Merchants
Ore City, Texas.
Sanger Brothers,
Dallas, Texas.
Gentlemen:

We are in receipt of your circular letter by your Mr.Connor concerning cotton and cotton warehouse receipts and we beg
to advise that we expect to get our warehouse ready for cotton
possibly before the 1st

the month and just as fast as cotton

can be gotten in on accounts we will take pleasure in complying

with your

equest by sending you some of our cotton warehouse re-

ceipts and we shall endeavor to divide them around so that the
most good can be accomplished.
In this connection we desire to express our thanks
the

favors

we have

received

for

at your hands andtrust that we may

be able to show our appreciation in a very substantial manner
which we are positive

of doing if

sonable price so that our

cotton will sell for any rea-

customers will

shape to help us.

Sincerely yours,

W.O.Stamps & Company
by W.O.Stamps,Jr.

Elmore Wright
Winnsboro, Texas,

September 18, 1914

Sanger Brothers,
Dallas, Texas
Gentlemen,

I wish to no if Dallas will advance money on cotton that is insured
on the weighing yard and have much on the bale.

And rate of interest charged.

am paying more than the market price and want to hold untill I can get even
if I can,

Thanking you in advance, I am
Yours very truly,

Elmore Wright.

M. H. HARRIS
General Store,
Kirven, Texas, Sept 15,1914
Sanger Bros.,
Dallas, Texas.
Dear Sirs,

Replying to yours, beg to state that I have practically made no collections of this year's accounts, and none have been made in our town.

crops he are late and operating slowly.

The cotton

Work began on our warehouse this

morning and will be rushed to completion.

am offering 100 per # for cotton on accounts.

10$ on my notes?

Would you give me

I intend doing all I can for you by the 1st of October.
Yours

truly M.H.Harris

W.0 .Wright

General Merchandise
Megargel,

Tex.

Sept 17,1914

Sanger Bros.
Dallas, Texas.
Gentlemen,

I hold tickets for about 20 bales of cotton that my customers have left

with me but they want more than 80, the prevailing price, hence they put them up
_

with me and ask me to hold for them.

Now can I place these tickets with you to hold the cotton for me and
them untill we think the price will warrant us to sell?

We want to hold about

60 days yet unless the price gets better.
Yours truly,

W.O.Wright.

Berwyn Mercantile Company
Berwin,

Okla.

Sanger Bros.
Texas
Gentlemen,

possibly will not be able to pay our note to you on the date that

it is due as the condition of the cotton market ( as you know) is very bad.

are getting cotton every day on account but the farmerw don't want to sell for
what they are offered, so they leave it with us -- but it does us very little
good as we can't sell it without their consent.
might work up to 9 or 100.

It looks as if the market

If it does we think most of our customers will be

willing to sell at that price ( some of their cotton anyway) and then it wouldn't
take long to raise a whole lot of money.

Hoping the market will get up to a

reasonablefigure.

Yours very truly,

Berwyn Mercantile Co.

Holcomb & Merriwether
General Merchandise
Alto, Texas.
Sanger Brothers
Dallis, Texas.

Sept 19, 1914

Gentlemen,
not

I ma just in receipt of yours in regards to note.

Now it is necessary

for me to explain to you our condition down here.
But, will assure you that I will do everything possible for you just as soon as
possible.

S. M. Holcomb

Brogoitti Bros.
Groceries
Gents Furnighings

Newsome, Texas, Sept 24,1914
Sanger Bros.
Dallas , Texas.
Gentlemen,

In regard to our note due with you on Oct let, for *480.14, we will say
that we will and are doing our best to adjust same at this time.

Now as condi-

tions are very bad it is impossible to give a definite answer--but you can de-

pend on us ding all we can under the present circumstances and conditions.
Yours very truly,

Brogoitti Bros.

Garrison, Texas. Sep 17,1914
Sanger Bros,
Dallas, Texas.
Dear Stirs,

In regard to what I owe you will say you understand the proposition
we are up against. We cant get money for anything at present so I hope you will
be lenient with me until times get better. I appreciate the fact that you have
been very patient, with me and I hope in the near future to pay you in full and do
some business with you.
Your friend,
M. P. Hamilton.

4RUCE ec CLYMER

General Merchandise,

Produce a Specialty

Lane, Texas, Sept 19, 1914
Sanger Brothers,
Dallas, Texas,

Gentlemen,
Your letter received in regards to our note due Oct let.

In reply

will say these farmers all up here are carrying their cotton back home holding for
a better price.

Everything and everybody advocated doing that mdthgljpve done it.
Its the hardest luck we have ever been up against.

However we are going to ask

our friends to sell same between now and the 1st, as we are bound to have some
relief.

Theyhave only sold enough to pay picking and live on.

If they get a

good price we will come out fairly good, but, it2.2,2112...come_too slow to make
payments like normal.

Will do our best.
Your friends,

BRUCE & CLYMER

C.L.Westmoreland,
Eustace, Texas.

Sept 18,1914

Sanger Bros.
Dallas, Texas.

GO4lemen,
Our account with yo li will soon be due.

If conditions don't change.

We cannot meet settlement.

As the cotton market is bad and the cotton is

being held in this part of the country.

We hope to see conditions better soon.

We wish to remain, as herebefore,

Yours truly,

C.L.Westmoreland.

G. W. TURPIN & COMPANY
Dry Goods, Groceries, Hardware, Shoes and Millinery
Graford, Texas.

Sept 18,1914

Sanger Brothers,
Dallas, Texas.
Gentlemen,

We have no warehouse, nor have we any cotton at present and there is but
little cotton out; there having been no stable price, the farmers are holding until
a market opens or they can borrow money.

We may not be able to meet our note

at maturity and will have to beg your leniency but we will pay it at the very
earliest moment.
Resp'y

G.W.Turpin & Company.

PICKENS & 'eTILSON

Dry Goods and Drugs, Newport, Texage.

Sept 18, 1914
Sanger Brothers,
Dallas, Texas.
Gentlemen,

Although our town is small, our gin does a good business, ginning on
an average of 2000 bales of cotton each season.
here while a part of it is sodl at Bowie.

Some of this cotton is brought

We have organized a buy a bale of cottoh

club and should like if possible to have you wholesale people buy through your
customers here, or through Mr: B.B.Bale, President of the Club, a bale of cotton.
The cotton can be properly stored and insured at Bowie, Texas.
If you wholesale people will buy a few bales to add to the few we local merchants
can buy and to the number we can get our farmers to agree to hold, it will help
that much.

If you will buy a bale and do not want to send check or draft, we will

send you weights, receipts and the growers affidavit that he received 100 for his
bale and that he agrees to hold a bale for each bale bought at 10¢ and then charge
your account with the price of the cotton.
Thusting that your interest in your customers here will justify you to buy
through them a bale of cotton and in this way help to handle the cotton situation
in this place, we remain,
Yours truly
Pickens & Wilson.

C.D. DeWitt
Dry Goods, Hats, Shoes, Men's Furnishings and Boy's Clothing
Alba , Texas.
Sept 18,1914

Sanger Bros,
Dallas, Texas.

In answer to your letter of the 17th, will say I carry blanket in-

Tentlemen,

surance on cotton.

I also expect to sell cotton by October first, provided it is

wprth 100 per pound.

I am paying this on accounts and the day I get out, I expect

to turn it loose, however, in case the market is not as good as ten cents I would
not want to sell as it would mean loss to me.

In case I don't sell I expect to

handle these tickets like I would money: prorate them around or anything that you
think is the best interests of all concerned.
I am,

Hoping this will be satisfactory,

Yours very truly,

C. D. DeWitt

Nat,

Texas.

Sept 17,1914
Sanger Bros.
Dallas, Texas.
Gentlemen,

In response to your letter in regard to my note, I cannot send you money
by Oct. 1st,

but can send you receipts against cotton -- but please send me details

as to how it will be worked

out,

and as to how much you will allow on the bale --

that is, how much will a bale cover, -- and, as to the interest on the note, and etc.
Yours

respectfully,
F. Bates.

E.G.Williamson
Dry Goods, Groceries and General Merchandise
Sacul, Texas,
Sanger Bros, Dallas, Texas,
Sept 18,1914
Gentlemen,
I am sorry but I cannot settle my account with you.
settle in a few days if cotton has a market.

Think I can

Thusting you will be lenient with

me; I assure you I mean to do the right thing. Now in case you think I mean otherour banker, I. Glenn, Cashier and J.T.Gregory, Merchant.
E G. Williamson.

wise, you write to
http://fraser.stlouisfed.org/
Federal Reserve Bank of St.Yours
Louis truly.

Barnes, Hambrick & Co.
Dry Goods & Furnishings,

Sept 17, 1914

sere. Sanger Brothers,
Dallas, Texas.
Gentlemen,

In reply to our letter of recent date regarding our note for 4640.27,
which falls due Oct 1st, will say with the present outlook it will be impossible
to meet this promptly, but will do the best we can.

You suggested that we send you

warehouse receipts or public weighmaster's tickets, but as we have only do ne a email
credit business we could not secure enough of these to be of material benefit.

are endeavoring to secure some of these however, also to secure others, and give our
customers credit for them, allowing them to trade this out with us.

This however

does not appeal to the farmers in our section; and the fact that cotton is selling
at a little better price than ten days ago, make them expect the market to go up
to about 100, and in case it does I think our business will soon enable us to meet
all our obligations.

It is not a question of collecting for what we have sold, but we will
have to sell some goods, and untill we can do this we are going to be handicapped.
Please advise us if you can suggest anything that we can do that will
assist us to stimulate trade and we will do all in our power to do as you

wish.

hoping that things will soon adjust themselves, and when this is done
we are confident things will come around 0.K.. We assure you we will do our best by
you, we can and will send you what money we can, and in this way will try and be as
prompt as possible.
Yours very-truly,
BarnesHambrick & Company.

W.N.Pruett,
General Merchandise,

Chico,

Texas.

Sept 18,1914

Sanger Brothers,
Dallas, Texas.
Gentlemen,
I am sorry I can't meet it
Yours to hand in regard to me note Oct let
but
think I will be able to
at once as cotton is one month late in our community,
just
began to come in this
Cotton
pay all my indebtedness this fall and winter.
Be
patient with me and
ee.
week, but the farmers are not selling it but very litt
all will be right.
""'"'"........icumermummaimmiumaromostmissa
Yours,
W. N. Pruett.

Tussy ,Oklahoma

9/18.1914
Sanger Brothers.
Dear Sirs:

I see that you have drafted on me gentlemen I have not got
the money if i did have i would send it to you i wrote you last

week and told you all my condission there is not know cotton selling
here and they have just cemance picking here goods and some has
not comance yet now if you all will just give me a little time
i can pay all i owe i think so hoping that you will give me
some days yet i think by that time i will be able to pay it so
hoping youall will be pasient with me as ever thing is tyde up
,kaw so i remain as ever yous

W.D.Upchurch

Lively & Son,
General Merchandise,

Maydelle, Texas, Sept.19th,1914
Sanger Brothers,

Dallas Texas.
Gentlemen:

Answering your letter of the 17th will say that we preoareing to build us a warehouse at this place to store cotton
so that we can apply cotton on our accounts but as we have always done we expect to take up our debts by installments along as
we get it as we have other debts to pay, but we are sure that
you understand this as you have always left it to our pleasure
as to that part.

We feel good over the situation rhile there is

no market practically for cotton we have a good crop here end we
are giving lOrl on account and believe that we will get very near

all phat we have out in.

Will begin to take care of our account

as soon as we get our warehouse built.

Thanking you for past favors, we are,
YOUTS truly,

Lively & Son.

Wmalvioeley & Sons, General Produce

Hickory, Oklahoma September 21st,1914
Sanger Brothers,
Dallas, Texas.
Gentlemen:

Your letter dated Septa?, requesting a check or cotton
warehouse receipts coverin3 our note due Oct.1, received.

Mile it is not necessary to refer to the prevailing conditions we would say that cotton is at least 20 to 30 days late
in maturing in our territory. However we have a good crop and
picking has begin in general this morning.

If we should have

open weather the balance of this month we cansee no reason now
why we should not be able to meet your wishes with reference to
the cotton receipts.

We have a good warehouse to care for all of

our cotton and we have complied with all of the legal requirements
with reference to cotton warehouses.

We will not be able to send

you insurance policies from the fact that we carry blanket insurance
on all of our cotton. We hope at no late date that the cotton market
will get in shape so that we may be able to sell same.

Thanking you for all past favors, we beg to remain,

Yours truly,

WM. MOSELEY & SONS
Per

74.Liosley, Sr .

W.P.Milligan,
Comthision Merchant

Allen,Texas, Sept., 19,1914

Sanger Brothers,
Dallas, Texas.
Gentlemen:

Owing to the price of cotton the farmers is not selling much
cotton they are hauling nearley all of their cotton back home and
holding it for 10c/ and it is maki4g collections awful dlik4
. )0,and

have not collected a cent from this years crop yet but I think
I will in a short time and as soon as I can I will pay you people
some business has ben awful dull the last month and

have not

done much

Yours resp,
W.P.Milligan
MIN

John S.Milton,
Staple and fancy groceries,dry goods, hats,caps,etc.

Direct,Texas, 9,17,14
Sanger Bros.,
Dallas, Texas.
Gentlemen:

In reply conserning my note on the 1st of Oct will say I aim
to do my best to meet this when it comes due or even before if
I possible can but we havent any warehouse hear or even a public
weigher hear. My customers have just begin picking cotton but I
think I will be able to meet this at least the most of it by than
hope I will anyway.

Yours resnectfuly
John S.Milton

Thompson Brothers,
Frost, Texas.
ay,

Sept .18 ,1914

Sanger Brothers,
Dallas, Texas.
Dear Sirs:

Refering to your notice of our note of $800.00 due Oct.lst
will say that we are going to

pay same

just as soon as possible

Would like to pay it when due however it depends on collections.
Collections so far have been very slow but expect them to be better
owing to better prices on cotton.

We do not deal in cotton at all but this year we are going
to

make an

exception and buy cotton where it is

placel

on accounts

ana can be bought reasonably. 7e find a good many people are obligated to landlord and bank for the first cotton they get out. Cotton
is much later this season than in former years.
We intend to cooperate in every way possible to make the
best of the conditions.
Yours truly,
Thompson Bros.

By R.R.Thompson

W.B.Eagl e & Co.
General Merchants
India,Texas, Sep.19,1914

Mess.Sanger Bros.,
Dallas ,Texas,

Gentlemen:

In reply to yours of 17th in regard to note that will be due
Oct 1st will say that we think now that we
check by the first covering this note,

willbe

able to send you

Yours truly,
W.B.E agle

Co.

Lacey & Wagnon,
General Merchandise

Mr.Enterorise,Texas, 9/18.14
Sanger Bros.,
Dallas.
Gentlemen:

Yours of the 17th inst to hand and will say in reply that we
cant buy this cotton for less than

and unless our creditors will

allow us 104 dont know what we are to do.

The merchants and farmers

have gone to the expense of building a warehouse and thought we could
draw some money but we have not been able to draw any on it yet. Last
year at this time we had bought over 100 bales, now we have 22 left
with us.

Can you help us any in handling this cotton.

Some towns

are paying 100' on accounts but we dont see how we can afford to pay
100' and take 8 or

The cotton is here if we could buy it.

Please let us hear from you again and help us all you can.
Thanks for all favors.

Lacey & Tagnon

Jordan & Blizzard,
Dry Goods & Groceries,

Alba,Texas, Sept.18th,1914
Sanger Brothers,
Dallas, Texas.
Gentlemen:

We are in receipt of your letter of recent date calling our
attention to our note due you on the first of October and in reply
will say that we shall do everything in our power to meet our obligations as quickly as we can treating all our creditors as nearly
alike as we can.

Uotton picking in this section is at least two weeks late
and farmers are not selling but very little cotton yet. -e are trying
to get as much cotton as we possibly can at 10r/ on accounts.

We realize that it is a great sacrifice unless the market gets better
We expect to help you some about the first, but unless conditions improve greatly, we do not think that we shall be able to meet all of
the note referred to in your letter.
Thanking you for past favors, we are,

Very truly yours,

Jordan & Blizzard.

W.H.Humphries,
General MerchPrdise

Edgewood,Texas.,Sept.18,1914
tess.Sanger Bros.,
Dallas, Texas.
Dear Sirs:

Yours of the 17th inst. received relative to my note due Oct.1
In reply will say that I have not been able to buy but one bale of
cotton and at that fate I will not be able to meet my note at that
time, however I will do the very best I can. The farmers here dont want

to turn their cotton loose most of them hauling it home. I believe
after Oct.lst we will have to force them to put it on the market.
-

I have offered my customers 10c/ per potnd on their account and they
refuse that.

Yours truly,

W.H.Humphries.

- COPYPOSTAL SAVINGS SYSTEM.
Third Assistant Postmaster General.

CWC -EMS

Washington.

September 15, 1914.
Bankers Trust Company,
New York City.
Gentlemen:-

In reply to your letter of the 8th instant, you are informed that
the new Federal Reserve Act provides that postal savings funds shall be deposited
only in banks belonging to the Federal Reserve System.

This restriction will

become effective when the System begins operation, which will probably be in the
near future, and no further applications to qualify for postal savings deposits
are being approved unless the banks concerned have applied for membership in the
Federal Reserve S7stem.

On receipt of information to the effect that the Bankers

Trust Company has applied to become a member bank it may be again included in the
apportionment for the New York post office as an active depositary for postal
savings funds.

Respectfully,
(Sgd.)A. M. Dockery,

Third Assistant Postmaster General

,41 A

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4-64-e

FORM 873

MEMORANDA
for
DEPARTMENT

August 20, 1914.

MR. CLOSE

I want to get information from the various note brokers of the amount
of purchasehaper now outstanding, so as to get an idea of the amount of renewals
that will have to be handled by the banks.
At the same time, if they will furnish
the information, I would like to know what amount of paper on their books has
matured from July 28th to Icagust 14th inclusive, and how much their sales have been
during that period. The latter information may be difficult to get, but you can
explain in each instance that their name will not be used, that the information will
be treated as absolutely confidential, and that it is desired for an important
purpose, to be used by responsible people.
It has already been furnished in strict
confidence by Hathaway, Smith, Folds & Co. and I feel certain that others will
furnish it without hesitation.
The attached list covers the principal dealers in
the various cities.
we have asked the Old Colony to get the information in Boston,
and suggest that you ask Waldeck to get it in Chicago, and McAllister of the Franklin
National, to get it in Philadelphia.
In the case of Goldman, Sachs & Co., I would
suggest using Mr. Wiggin.
The others on the New York list can probably all be
handled by you.
Should you encounter difficulty in any case please let me know.

B. S. Jr.

4 673

MEMORANDA
for

Sept. 16, 1914.

DEPAmTMENT

Mr. Strong.

Mr. Mills advises me that the compilation of railroad maturities
for the last four months of 1914 and for the calendar year 1915 included
neither equipment bonds nor other serial maturities.
In the compilation which I made up for the period from August 20,
1914, to January 1, 1915, the equipment maturities aggregated 416,135,000.
The City Bank's total of railroad maturities from September 1, 1914, to
My
exactly the
December 31, 1914, inclusive, was $43,831,100.
the
equipments
above
noted,
foots
up
$43,278,000.
same period, including

total for

Mr. Mills tells me that Mr. Trumbull furnished them with a list
that Mr. Trumbull already had (which, he assumes, was my list, as it came
This list the City Bank used as a basis,
from the Bankers Trust Company.)
Mr. Mills says that for the
checking up maturities and making additions.
past two years they have had one of their men keeping track of all maturities as news regarding them was obtainable in all sorts of publications.
The City Bank's facilities, as you can see, are vastly superior to ours,
for there is no accurate compilation of maturities extant.

I desire to make this explanation lest you should get the
should also like to remind
I
impression that my work was carelessly done.
you that, at the time, I told you verbally that, in the nature of things,
This is shown
my list was bound to be an understatement of the total.
to be correct, except in so far as my list included the equipments.

H. S. M.
C29 OLeA-4-'

21tj

A44

*'211'LQ-0

Complete

Agreement, dated the 10th day of September, 1914,
between

hereinafter termed the City,
acting by the Comptroller, party of the first part, and
THE CITY OF NEW YORK,

J. P. MORGAN & Co. and KUHN, LOEB & Co., each a copartnership doing business in the City of New York, hereinafter
called the Bankers, parties of the second part;

11111itnessetb:

PART I.

WHEREAS, The City has outstanding promissory obligations

maturing in various amounts and at various dates prior to
January 1, 1915, in London for the aggregate amount of

£13,494,327 : 16s : Od., and in Paris for the aggregate amount
of 61,500,000 francs, and desires to obtain moneys for the pay-

ment of such obligations and of other indebtedness and for
the discharge of its obligations under improvement contracts;
and

WHEREAS, The City has requested the Bankers to undertake
to form a Syndicate to purchase from the City its promissory
obligations hereinafter described for the aggregate principal

sum of $100,000,000:

'Row, Uberefore, It is agreed between the parties hereto as
follows:

The Bankers will use their best endeavors to form
FIRST.
a Syndicate for the purposes of this agreement upon the terms
of a Syndicate Agreement of which a copy is hereunto annexed,
the members of such Syndicate so to be formed being hereinafter termed "syndicate subscribers."

The Bankers will furnish to the Comptroller of the City
a statement setting forth the names of the corporations, firms
and persons proposed by them as syndicate subscribers, and
the amounts of the obligations to be assumed by such syndicate

subscribers, respectively, under the Syndicate Agreement;
and the Bankers shall not accept as a syndicate subscriber any
corporation, firm or person not approved by the Comptroller.

Subject to approval by the Comptroller as aforesaid, any
bank and any trust company in the City of New York, and
each of the copartnerships, parties hereto of the second part
and any other person, firm or corporation that the Bankers
shall designate, may become a syndicate subscriber.
When syndicate subscribers approved by the Comptrol-

of the City of New York, in anticipation of revenues of the City,

shall have been obtained by the Bankers for the
total amount of the aggregate syndicate obligation, the
ler

Bankers shall give notice in writing thereof to the Comptroller,
and thereupon this agreement shall become and be operative,

and then and thereafter the syndicate subscribers, severally
and respectively, shall become and be responsible to the City
for the amount of their several subscriptions, and the only
responsibility of the Bankers to the City under this agreement
shall be for the amount of their respective subscriptions as
syndicate subscribers. But in any event, the Bankers will
manage and conduct the operations of the syndicate under this
agreement.

The City agrees to sell, and, as provided in said
Syndicate Agreement, the syndicate subscribers severally shall
SECOND.

agree to purchase and to pay for, at par, plus any accrued
interest, promissory obligations to be issued by the City and
delivered to the syndicate subscribers in the several amounts
to which they are entitled, respectively at the office of J. P.
Morgan & Co., for the aggregate principal sum of $100,000,000,

all to be dated September 1, 1914, and to bear interest at the
rate of six per cent. per annum, payable semi-annually, both

of which $18,000,000 principal amount is to be payable
September 1, 1916, and $25,000,000 principal amount to be payable September 1, 1917.

Such promissory obligations of the City shall be designated
and known as notes or as bonds or as bills, or any thereof may
have any of such designations, respectively, as may be requested
by the Bankers.

The City agrees to issue such promissory obligations of the several classes and in the several amounts reTHIRD.

spectively above stated, and to make delivery thereof as
aforesaid as of September 11, 1914.
Pending the preparation of the definitive obligations the
City may deliver temporary receipts, or obligations in temporary form, entitling the holders thereof to receive, without
charge, the definitive obligations as herein provided so soon
as the same shall be ready for delivery.
The definitive obligations shall be in coupon and in registered

form, in such amounts of each as may be requested by the
Syndicate Managers. The coupon obligations are to be in
denominations of $500, $1,000, $5,000 and $10,000 and the
registered obligations in denominations of $500 and multiples
thereof. The coupon obligations and the registered obliga-

tions are to be interchangeable, and any obligation of a
denomination greater than 000 is to be subdivisible into
obligations of lower authorized denominations.

principal and interest being payable in gold coin of the

FOURTH. Upon delivery of the obligations, payment there-

United States of the present standard of weight and fineness,

for shall be made by the syndicate subscribers at par, plus

as follows:
$57,000,000 of promissory obligations issuable pursuant

any accrued interest, as follows:

to the provisions of Section 189 of the Charter of the City of
New York, payable September 1, 1915.

September 11, 1914, either (a) credit to the City, as a special
deposit, the full amount due from such subscriber in payment
for such obligations, or (b) make payment of said amount to
another City depositary as next hereinafter provided.

$43,000,000 principal amount of promissory obligations

issuable under the provisions of Section 187 of the Charter

If such subscriber be a City depositary, it shall, on

If such subscriber be not a City depositary, or if being

a City depositary it shall elect not itself to credit the City.
with such special deposit, such subscriber shall make payment

'Pow, 'Therefore, It is further agreed between the parties
hereto as follows:

on September 11, 1914, of the full amount due from such
Subscriber for such notes, to any City depositary designated
by the City, to be held by such depositary as a special de-

Of the special deposits of the City in banks and
trust companies, as provided for in Part I. of this agreement,

posit to the credit of the City of New York.

to be paid to the Bankers for the purpose of paying the said
outstanding obligations payable in London to the aggregate
amount of £13,494,327: 16s: Od., and in Paris to the aggregate amount of 61,500,000 francs, maturing in various instalments prior to January 1, 1915. From time to time the City

EIFTH.

The City agrees that pending the withdrawal

thereof, as hereinafter provided, any and all such deposits
shall be permitted by the City to remain on such special deposit
with each bank or trust company crediting the same as aforesaid, and that as from time to time withdrawals of such special
deposits shall be made by the City, such withdrawals from each
bank and trust company respectively shall be of such amount as
shall bear to the total amount of such special deposit with such

SIXTH.

the City shall reserve the aggregate amount of $80,243,940.47

shall pay to the Bankers, or upon their order, out of such sum of
$80,243,940.47, such amounts, at such times respectively, as the

bank or trust company, the same proportion that the aggre-

Bankers shall request, in ample time to enable the Bankers
to make proper provision for taking up said obligations of the
City payable by their terms in London or in Paris, at the rate
of $5.035 for each pound sterling of all such obligations pay-

gate of such withdrawals at such time shall bear to the

able in London, and 20 cents for each franc of all such obligations

aggregate amount of such special deposits with all of such
banks and trust companies.
The depositaries holding such special deposits shall allow
to the City interest on daily balances at the rate of two per

payable in Paris. The Bankers may request payments by
the City out of such sum of money to enable them to take up
said London and Paris obligations before maturity, in which
case the City, if providing the necessary funds, shall have

cent per annum.

the right to the benefit of the discount at the rate allowed by the
holders of such obligations. The Bankers in behalf of the

PART II.
AND WHEREAS, In view of the European war and the de-

rangement of international exchange caused thereby, the
City desires the assistance of the said Syndicate in making

payment of the said promissory obligations of the City payable in London to the amount of £13,494,327: 16s: Od., and
in Paris to the amount of 61,500,000 francs, and upon the
terms of this agreement hereinbelow set forth, and upon this
agreement becoming effective as hereinabove provided, the
Syndicate is to undertake to pay and discharge as hereinafter
provided the said London and Paris maturities, in consideration of the payment to the Bankers, for account of the Syndicate, of the aggregate sum of $80,243,940.47:

Syndicate undertake and agree that upon payment to them
from time to time as aforesaid of said aggregate sum of
$80,243,940.47, all of said London and Paris maturities - of
the City shall be duly paid and discharged , subject, however,

to the provisions of Article Eight of this contract. The
Bankers on behalf of the Syndicate shall have the right to effect
s, ch payment of such London and Paris maturities in any manner that the Bankers shall deem advisable, in their discretion.
SEVENTH.

For their services in so making such payment of

such London and Paris maturities, the Syndicate shall be
entitled to retain, and it may retain, out of said sums so to

0Q
6

be received from the City, the net profits which may be realized

superior force further proceedings shall become impracticable,

by the Syndicate in effecting such payment by shipping gold
or by acquiring exchange on London or Paris at rates other

then and in that event the provisions stated in this Part II. to
the extent not theretofore performed shall become and shall be

than $5.035 for each pound sterling and 20 cents for each

terminable at the election of the Bankers, so far as concerns the
obligations payable in the country to which traffic is so impeded.
In the event of any such termination by the Bankers the Syn-

franc, provided however, that in no event shall such net profits

so retained by the Syndicate exceed an amount equal to 2%
of such sum of $80,243,940.47, and that any such net profits
in excess of such 2% of such sum shall be accounted for and
be paid to the City. It is expressly understood, however,
that in case the performance by the Syndicate of its obligations under this Part II. of this agreement shall result in a loss
to the Syndicate, such loss shall be borne wholly by the Syndicate.
In determining the said net profits there shall be deducted from
the gross profit, if any, realized by the Syndicate under this Part

II. of this agreement, all of the expenses of the Syndicate and
the Bankers in the formation of the Syndicate and the completion of its transactions under the syndicate agreement and under
this contract, including all legal expenses, and the cost of advertising for sale the obligations of the City purchased by the
Syndicate; provided, however, that if any profits be realized
by the Syndicate upon such sale, there shall be deducted from
the gross profits of the transactions under this Part II. of this
agreement only the amount by which the cost of the said advertising shall exceed any such sale profits.
EIGHTH.

Inasmuch as the undertaking set forth in this

Part II. of this agreement has been negotiated under conditions
unprecedented and unforeseeable in their outcome, both Great

Britain and France being at war and Paris declared in a state
of siege, it is expressly understood that in the event that ocean
passage between New York and England or New York and
France shall not continue open to substantially the same extent as prevails at this date, and the shipment of gold or of
grain or other American products from New York to England
or to France shall be materially impeded, or if by reason of any

dicate shall be discharged and relieved from the provisions
indicated in this Part II. to the extent that the same shall not
have been performed prior to such determination. Nevertheless, the Syndicate shall continue under obligation to take and
pay for said $100,000,000 of the promissory obligations of the
City as aforesaid.

PART III.
The Bankers shall receive no compensation for
their services in forming or managing the Syndicate; but the
Bankers may become syndicate subscribers, as hereinabove
NINTH.

provided, and as such may share ratably with such subscribers
in any profits of the Syndicate.
TENTH.

The City further

agrees

that any and

all

banks and trust companies in the City of New York included

in the syndicate subscribers and approved by the Comptroller as hereinabove provided, shall be designated by the
fiscal authorities of the City of New York as City depositaries,

to the end that the amounts paid by such banks and trust
companies in the performance of their Syndicate obligations
respectively, may be deposited by them as special deposits of

the City as aforesaid to bear interest at the rate of 2% per
annum.
ELEVENTH. This agreement shall bind and be for the benefit

of the parties hereto, and the syndicate subscribers, and their
successors, survivors, executors and administrators, severally
and respectively.
TWELFTH.

All rights and powers of the copartnerships,

parties hereto of the second part, shall vest in the firms doing

business in the name of said parties of the second part respec-

tively, and without further act or assignment shall pass to
and vest in the successors of said firms, respectively, as from
time to time constituted.
THIRTEENTH. Nothing in this agreement contained shall
be construed as creating any trust or obligation whatever in

favor of any person or corporation other than the parties
hereto and the syndicate subscribers, nor any obligation on
the part of the Bankers except only as herein expressly provided.

IN WITNESS WHEREOF, This contract is executed by the

City of New York by the Comptroller, and the seal of
the City of New York has been hereunto affixed, under
and by authority of a resolution duly adopted by the
Board of Estimate and Apportionment of the City of New
York; and the Bankers, parties of the second part, have
hereunto subscribed their respective names, the day and year
first above written.
THE CITY OF NEW YORK,
By Wm. A. PRENDERGAST,

[L s. I

Comptroller.

Attest:

FRANK J. GOODWIN,

Deputy City Clerk.

J. P. MORGAN & CO.

KUHN, LOEB & CO.

BOARD OF ESTIMATE AND APPORTIONMENT
CITY OF NEW YORK

Whereas. The City of New York for the purpose of meeting its outstanding

temporary loans to the amount of $100,000,000, of which there are foreign obligations

to the amount of i13,310,000 and 61,500,000 francs, incurred through the issue of
corporate stock notes and revenue notes heretofore issued under and pursuant to
provisions of Sections 189 and 187 of the Greater New York Charter, and payable
between this date and January 1st next;
And Whereas, the extraordinary situation prevailing in the financial market, due
to the European War, makes it imperative to provide for the payment in gold or
purchase of exchange or other arrangement for settlement at this time for the full
amount of the foreign loan;
And Whereas, the City expects from time to time to become a_f_urther borrower in
the market for the purpose of financing itself through ensuing years as heretofore by
the issue of revenue bonds and revenue notes in anticipation of taxes and by the issue
of corporate stock notes and corporate stock for permanent improvements ;

And Whereas, at the present moment a world condition prevails in financial

markets making it exceptionally and extraordinarily difficult to secure loans in large
sums such as regularly required by the City to provide funds for the discharge of its
business in anticipation of collection of taxes and issue of corporate stock, and for
this reason it becomes desirable that the City of New York should maintain its credit
unimpaired in this period of financial stress and to that end to conform its practices
to the most conservative methods of financial management ;
And Whereas, The members of this Board have contemplated the necessity of
adopting a new policy with regard to the financing of permanent public improvements
looking to the payment of the expense thereof in increasing proportions out of the
budget of the city rather than through the issue of long term bonds, and have already
adopted such practice in part, which intent was further evidenced by the statenient
contained in the communication addressed by the Mayor to this Board in transmittal
of the executive budget on August the 14th last ;
And Whereas, The present is an appropriate time for the further extension of this
policy; now therefore be it
Resolved, That the Board of Estimate and Apportionment hereby declares that it

will pursue the following plan in financing public improvements :
(1) The cost of all improvements of the revenue-producing class, such as rapid
transit, docks, railway and water terminals and water supply, shall be defrayed by the
issue of fifty-year corporate stock as heretofore.
(2) The cost of all permanent improvements, other than those of the revenueproducing class, hereafter authorized by this Board, shall be financed as follows :
Those authorized subsequent to the passage of this resolution and during the
year 1915 shall be paid for, three-quarters by the issue of fifteen-year corporate stock.

The corporate stock so issued shall mature either in not more than fifteen years,

amortized as provided by law, or in equal annual installments, during a period of not
more than fifteen years. The remaining one-quarter of the cost of such improvements
shall be paid through the medium of a one-year bond payable from the next annual
tax budget.
Those authorized in the year 1916 shall be paid for, one-half by the issue of
corporate stock maturing as aforesaid. The remaining one-half of the cost of such
improvements shall be paid through the medium of a one-year bond payable from the
next annual tax budget.
Those authorized in the year 1917 shall be paid for, one-quarter by the issue
of corporate stock as aforesaid. The remaining three-quarters of the cost of such
improvements shall be paid through the medium of a one-year bond payable from the
next annual tax budget.
The foregoing statements of policy contemplate the financing of improvem.mts authorized during the year 1918 and subsequent years through the inclusion of
the entire cost thereof in the annual budget of the city, excepting the revenue-producinc improvements hereinbefore mentioned.
(3) In so far as corporate stock notes issued by The City of New York as a
part of the proposed loan of $100000000 shall be retired by issues of corporate stock,

the corporate stock so issued shall mature as provided in clauses (a), (b) and (c)

of paragraph 2 of these resolutions.
(4) The cost of public works already authorized, whether under contract or
not, but in respect of which new bonds are to be issued, is to be financed in the same

manner as above provided, with the exception of the cost of revenue-producing

improvements hereinbefore mentioned.
Nothing herein contained shall be deemed to affect either corporate stock or assessment bonds issued to replenish the street improvement fund or the fund for street and
park openings.

A true copy of resolution adopted by the Board of Estimate
and Apportionment, SEPTEMBER 11, 1914.
JOSEPH HAAG, Secretary.

J. P: .11011G.1.N* 4 CO.

KUHX, LOEB 4- CO.

H sII Stmt. rorner Broad

52 H7Biam Mrert

Xezt York, Septtnaber 14.194.
CONFIDENTIAL

$100,000,000
NEW YORK CITY LOAN SYNDICATE

Dear Sirs:

For your definite information, in the premises we hand you herewith:

.1 copy of the formal contract dated September 10, 1914, between

the City of Xew l'ork and the undersigned; and
.1 copy of the Resolutions of the Board of Estimate and .1pportionment adopted September 11, 1914, as to certain fiscal policies.

Very truly yours,
J. P. MORGAN 4- CO.

KUHX, LOEB 4- CO.

Syndicate Man,agers.
Enclosures.

PROPORTIONATE AMOUNT
AMOUNT EMERGENCY

CIRCULATION AVAILCIRCULATION OUTABLE TO EACH BANK
STANDING JUNE _7-14 BASED ON CAP. & SUR
AVERAGE AMOUNT

CAPITAL

NAVE

SURPLUS

TO WHICH -EACH INSTITUTION WOULD BE ENTITLED
UNDER THE TERMS OF
THE BILL.

$2,000,000

$3,000,000

$1,464,000

$3,536,000

$2,000,000

Merchants National Bank

2,000,000

1,500,000

1,930,000

1,570,000

1,397,000

Mech.& Metals Nat. Bank

6,000,000

2,976,000

9,024,000

4,626,000

Merchants Ex. Nat, Bank

600,000

400,000

467,000

513,000

361,000

American Ex.Nat. Bank

5,000,000

3,000,000

4,546,000

3,452,000

3,175,000

Nat. Bank of Commerce

25,000,000

10,000,000

9,403,000

24,597)000

14,000,000

2,250,000

1,000,000

1,162,000

2,066,000

1,270,000

Hanover National Bank

3,000,000

13,500,000

1,250,000

15,250,000

6,604,000

Citizens Cent.Nat. Dank

2,550,000

1,500,000

1,977)0°0

2,073,000

1,600,000

National Park Bank

5,000,000

10,000,000

3,443,000

11,557,000

6,000,000

Fourth National Bank

5,000,000

1,975,000

6,025,000

4,000,000

Second National Bank

1,000,000

2,000,000

654,000

2,346,000

1,200,000

10,000,000

15,000,000

6,143,000

18,657,000

10,000,000

4,000,000

3,000,000

1,566,000

5,414,000

2,600,000

500,000

1,700,000

196,000

2,002,000

669,000

1,000,000

654,000

1,146,000

600,000

250,000

243,000

257,000

200,000

Liberty National Bank

1,000,000

2,000,000

496,000

2,504,000

1,200,000

Coal & Iron Nat. Bank

1,000,000

200,000

396,000

602,000

506,000

Union Ex.Nat. Bank

1,000,000

700,000

395,000

1,305,000

696,000

$116,296,000

$ 63,546,000

Bank of New York, N.B.A.

Chatham &

Phenix

Nat.Bk.

First National Bank
Irving National Bank
N.Y. Co. Net. Bank
Lincoln National Bank
Fifth National Bank

,Amouirt of circulation

oustanding...

41,747,000

Total Capital & Surplus of banks...156,045,000

CONDITION OF NATIIONAL BANKS IN THE CITY
OF MTN Yam
ON
JUNE 30th, 1914.

BOROUGHS OF MANHATTAN
AND BRONX.

CAPITAL.

SURPLUS &
PROFIT

U. S. BONDS
MAXIMUM AMOUNT OF
TO SECURE
PRESENT
ADDITIONAL CIRCUCIRCULATION. CIRCULATION. LATION RE ALDRIESVREELAND BILL &
AffFNIELMT.

Bank of N. Y., N.B. Am
2,000,000.4
Merdhants National Bk.
2,000,000.
Mechanics & Metals Nat.Bk. 6,000,000.
National City Bank
25,000,000.
Chemical National Bank
3,000,000.
Merchants EXchange Nat.Bk. 1,000,000.
National Butchers & Drovers
300,300.
Ameiioan Exchange liat.Bk4
5,000,000.
National Bank of Commerce 25,000,000.
Chatham & Phenix Nat.Bk.
2,250,000.
Hanover National Bank
3,000,000.
Citizens Central Nat4Bk4
2,550,000.
Market & Fulton Nat.Bke
1,000,000.
Importers & Traders Nat.Bk4 1,500,030.
National Park Bank
5,000,000.
East River National Bank
250,000.
Second National Bank
1,000,000.
First National Bank
10,000,000.
Irving National Bank
4,000,000.
N. Y. County National Bk.
500,000.
Chase National Bank
5,000,000.
Lincoln National Bank
1,000,000.
Garfield National Bank
1,000,000.
Fifth National Bank
250,000.
Seaboard National Bank
1,000,000.
Liberty National Bank
1,000,000.
Coal sad Iron National Bk. 1,000,000.
Union Exchange National Bk. 1,000,000.
200,000.
Battery Park National Bk.
200,000.
Bronx National Bank
200,000.
GothamNational Bank
Harriman National Bank
500,000.
200,000.
Sherman National Bank

TOTAL BOROUGHS OF
MANHATTAN AND BRONX TOTAL Ati, OTHER BOROUGHS
TOTAL CITY OF NUN YORK -

4,346,800.4
2,097,700.
8,874,6004
32,916,900.
7,755,000.
761,800.
111,100.
40693,300.
16,690,600.
1,357,900.
15,051,800.
2,371,200.
1,948,100.
7,676,000.
14,344,700.
65,200.
2,870,500.
23,177,700.
3,468,600.
1,916,800.
9,645,70).
1,789,800.
1,290,100.
505,000.
2,598,500.
2,844,800.
604,800.
1,008,000.
116,800.
255,500.
163,000.
887,600.
79,900.

800,000.4
1,950,000.
5,000,000.
4,162,803.
450,000.
495,000.
50,000.
4,223,000.
8,200,000.
1,200,000.
50,000.
1,555,100.
240,000.
50,000.
3,550,030.
50,000.
685,000.
5,077,000.
1,600,000.
200,000.
450,000.
890,000.
350,003.
250,000.
440,000.
500,000.
400,000.
400,000.
200,000.
50,000.
200,000.
100,000.
175,000.

787,200.4 5,559,600.
2,218,200.
10,453,700.
51,445,700.

1,879,500.
4,420,900.
3,471,200.
425,000.
472,300.
47,000.
3,996,400.
7,707,300.
1,172,700.
50,000.
1,516,300.
59,600.
55,603.
3,494,400.
49,700.
669,300.
4,974,103.
1,562,400.
196,000.
444,203.
851,300.
311,900.
232,200.
365,100.
477,900.
391,500.
395,900.
195,400.
48,400.
199,800.
92,200.
170,600.

10,330,000.
1,289,500.
364,100.
5,696,900.
33,983,300.
2,435,200.
18,004,800.
3,404,900.
2,888,500.
9,120,400.
15,850,300.
265,500.
3,201,200.
28,203,600.
5,906,203.
2,220,800.
14,201,500.
1,938,500.
1,948,200.
522,800.
3,233,400.
3,366,900.
1,213,300.
1,612,100.
121,400.
407,100.
163,200.
1,295,400.
109,300.

4112,900,00041740188,800. 413,992,900. 411,213,300. 4245,975,500.
4,210,300.

1,677,000.

1,657,600.

5,954,700.

116,302,000.:178,499,100.

45,669,900.

42,870,900.

251,930,200.

3,402,000.

CONDITION OF NATIONAL BANKS IN THE CITY
OP NEW YORK
ON
JUNE 30, 1914.

MAXIMUM MUM OF
°TIMM BOROUGHS

CAPITAL

SURPLUS &
PROFITS

U. S. BONDS

TO MCURE
CIRCULATION

ADDITIONAL culcuL
TION RE ALDRICH7
CIRCULATION VIMLAITD BILL&
ilti!ISENT

ATUDMENT.
Nassau Natl. Bank,Bklyn 4 1,000,000,
7irst Natl. Bank
300,000.
Manfrs. Natl. Bank
252,000.
National City BRAr
300,000,
200,000.
Greenpoint Paint N.B.
et
200,000.
Peoples Natl. Bark
ft
ft
100,000.
lidgemood u
25,000,
Bayside
L.!.
"
200,000.
Commercial Natl.L.I.City
100,000.
First Natl.Corona,L.I.
100,000.
First Natl.Jamaica,L.I.
50,000.
First Nat1.0zone Park,L.I.
50,000.
First Natl.Whitestone,L.I.
100,000.
L.I.
Flushing Natl.
Natlaarik of Far RodkawayLI 50,000.
50,000.
Marine Harbor Natl. S.I.
100,000.
"
Port Richmond Natl.
100,000,
Richmond Borough Natl.
It
100,000.
Stapleton Natl.
25,000.
Tottenville Natl.

TOTALS

413,432,000.

1,121,700. 9
674,700.
943,500.
587,500.
138,700.
147,800.
50,100.
12,000.
107,400.
58,300.
27,000.
28,600.
27,200.
23,000.
42,700.
15,400.
86,500.
27,500.
75,900.
14,800.

44,210,300.

267,000.
300,000.
250,000.
120,000.
50,000.
50,000.
100,000.
25,000.
50,000.
45,000.
50,000.
50,000.
12,500.
100,000.
12,500.
20,000.
25,000.
40,000.
100,000.
10,000.

267,000.
300,000.
245,900.
120,000.
50,000.
50,000.
97,700.
22,600.
49,900.
44,500.
50,000.
47,200.
12,500.
100,000.
12,000.
19,300.
24,300.
38,300,
96,400.
10,000.

1,854,700.
674,700.
949,600.
767,500.
288,700.
297,800.
52,430.
14,430.
257,500.
113,800.
77,000.
31,400.
64,700.
23,000.
80,700.
46,100.
162,200.
89,200.
79,500,
29,800.

1,677,000.

$1,657,600.

$5,954,700.

NATIONAL BANKS.
dez-.

:
til
CD

d.4-

-igr-40oc30

40-,--i

0)
,-1

0 'CI

-I-)

0 0

c::,

..-I ,ti

-IA
-I-)

0) 0)
0 E-i

c- is
.1-1

4->

ro r-1

Reit-0571'611g--

;

d k : H

P-1

a).
P4 d 'id 0

Name of City

F-1

g a)

0
0

0 gi b0
H

fil

rip

Per cent: Per cent; Per cent: Per cent:

I-

29.

Oklahoma City

30.

16.
13.

Philadelphia

25.6

46.1

Pittsburg

22.05

47.
13.

72.2

:
:

42.

Amount

1,613,000
653,000

18.
14.

26,814,000

9.1

16,285,337.50 :

18.
-

.24

Portland, Ore

22.6

7.26

Pueblo

Not given

(In money)

Richmond

17.75

6.35

Salt Lake City .....

24.9

52.

Omaha

28.

52.50

24.96

7 .6 3

23.

39.

Sioux City

23.

50.

Spokane

34.8

St. Joseph

28.76

52.

59.65 :

19.70

St. Paul

23.50

48.

72.

21.

Tacoma

23.3

13.6

.22

945,000
9.40

2,980,000
990,000

73.

60.8

5,267,355

2,872,275

So. Omaha
San Antonio

......

San Francisco

9.63

3.32

1,135p00

97.

15,180,000

70.

883,000

1,736,947

Savannah
Seattle

14.3

7.7

7.6

Topeka

13.1

32.

20.

1.4

901,000
4,800,000
862,000

Waco

24.50

31.

38.

21.

381,000

Wichita

29.

57.

68.

19.

463,000

Chicago

24.

New

In money

York

St. Louis

38.1

156,704,000
In money

25.

a
b

Gold coin.

Of time deosits
" demand

Gold Certificates
It

30,821,960

" time
" savings It
" comnercial account
WHen acting as reserve agent.

343,531,221

STATE INSTITUTIONS.
111.

10.

111

3
..

.
-4-,

a)
(1)

(1)
..--1

F4 W

k
d

O)
ta 4-)

0.4

a) 0

:73 g

(0 +)

(00
u) o

a),g,

F-t W

rxi

o
u)
o

25.

1/3
7 1/2

12 1/2

P-i'

t>
-' Pi
cf)

a)
P4

w
(0

1=4

31.

29.

19.1

24.7

0 ..-4
gH
o
0 4-)

O) 0
..-1 0 'd ,-1

4. 0 0 C-+

H ,k-3 d ..-1
-P

.
0H

4.-1 g ,s1

-d

-3Q 9

t ) (c3 P:1

-HT

0 a) g
4-) 0 E-4
$.-i

-,a, d T1 H

0HH
Pi d d

F-1

C1-1

..
..

.
.
.
.

tri

0,0HO:
op to
000 . Pi IA

tO d .

.
.

o -,1

cf-1

-,--1 0 r-1 4-)
-Pp., d

...1

P4:1 r-i

Pd
o

.
..

23.

59.6

33.

22.

-4-,

.
..
..

39.

9.3

g
o

73.6

o (t o

: Per cent:. Per cent: Per cent: Per cent: Per cent:

17.

2/3

0 ,--I
$-1

cent :vault. : Agts.

k4-

I,-

: With

4-> ..

zi a)

.--1

g
0

(1)

.
..

4-,

.
..

Per

9.7

Amount

1,511,000
80,000

5,232,000

.32:

1,944,700

54,000

1.32:

22,500

No report
u

1/3

25
20

g 15

1/5

4/5

.63

b 8.4

11.86

.17:

.
°

14.3

6.60

1/8

23.

64.

2/5

33.

74.

ivie

336,000

43.50

25.

32.

35,000

10,000

4,79,000

.50.,

27 1/2
20

°.

12.

18.25
28.

61.

70.

16.
.

:
20

81'

25.

15.
20.

10.

20.

1/4

25.

3/4

32.

44.3

26.5

72.8

25.

60.

10.50

41.

48.

26.

6 1/4
°

25.

75.

23.2

25
25.

19.

14.1 :

6.4

60.

21.

24.

12.

40.

68.

12.4

5.8

25,000

7',.5:

1,021,120

18.

18.50:

55.

52,000

22.

18.

83,000

563,000

360,000

32.

42.

19.

20.

62.

14.

20.

26.

16.5

12.6:

64.
.

s
.

15,000
:

81,500
28,022,907.50
85,219,000

15.

144,699,557.50

STATE INSTITUTIONS.
1

H
+)

o
H
C.)

Cl)

1.4

4-)

:
In
nt :vault.

a)
1).

: With :

,--i
i--I

C.) 0

9-1

F-1

F-I

:19.

10:

20.

12 :

15.

6
6

15.

70.

14.15

24.5

27.

21.

99.

62.

29.50

14.7

3.2

3.50

15.

25.

32.

19.2

29.

61.

1/4

22.

60.

31.

58.

3/4

17.6
.

19.

2.7

15.

20.

TJ,-;0

5-i

04 0H
0 0
-P

d
.

16.

Amount

8,493,000

26.

70,000

12.

637)000

31.

1,974,000

1.7

.43

4-)

(I)

P.Z4

: Per cent : Per cent:

°.

d 4-,

70.

0 ri a)

i"--,4' ad ',1

12.50

0 pq -P

,0 bt)

124

3/4

H
0 t00
ri 0

15.

20.

ri r-i

H
o

,..

0 f)
o a)

5:',

:40.

Pi cd cd

: Agts.: Per cent: Per cent: Per cent

(1.)

H +) H
7-1 ell
P4r. M

0
w

4-4

tf2

0 H
..-1 0
a)

0
-P 4

*r-4

,4_,

274,870

5.1

100,885

5.8

770,000

30.

125,000

5.
O.

3/5

1/3

2/3

66.

42.98

34.

8.98

25.25

54.25

14.87

24.4

66.4

17.

28.7

19.7

1/3

2/3

11.

4.2

b.'E(
l;c%

31.

16.

21.

5.
5.

16.

2/5

29,600

30.

2.03
9.87
15.

1.8

30.

29,600

91,075

13.87

688,800

1,573,000

2.9

137,000

5,000

NATIONAL BANKS.

4.4

T1 La

cr-i

0 4 H a)
r-I 0 -1-)
4 403
C.)

-P Z

4-4

$-1

4-,

o
EA

-,--i 0 0.)
+)
E4

0HH

00 i
0

0 ,-0 r-1 (ll

F-1

P-1

r-i

pior:+4

rotti

Atlanta

22.8

10.

6.2

$.1

tec13

tD o

1-1

: Per cent:Per cent.: Per cent: Per cent:

Albany... .(See New York, clears through New York)

E)33 e'd

t.1)

P-I

4-,

b.o o

;.-1

cal (4 ..0 Pi

-P

c..-4

ii oi d -,-1

(-I

Name of City

0 Q)

cra

0 Z F-i
,--4 Q)
'd
0 Q) Z

,-1 c) T1 ..-i

r 5r

6.6

Amount

1,032,000

Baltimore
°
23.
.
9.06 .
6,98
2.78
4,402,21250:
Boston
.
.
: 16,847,000
Brooklyn .(Telegram undelivered. It is believed Brooklyn clears through N.
Cedar Rapids
45.
26.
72.
.
: 25.
290,000
Cincinnati
74.
24.90
4.
40.
. 6,100,000
Cleveland
42.
32.
10.50 : 5,828,000
Columbus, 0.
22.1
8.
6.8
3.4
.
1,696,145
Dallas
23.9
9.2
11.5
1.6
.
2,130,348
Denver
27.
28.50 : 50.
a.
:
5,668,000 ::
:

Des Moines

30.

Detroit

Dubuque

....:

Houston

23.6

37.

:
°

20.
21.

Louisville

24.72

Milwaukee

20.5

Minneapolis

20.8

26.05

20.6

700,000

13.

8.6

(N. B. and State

Lincoln
Los Angeles

Muskogee

18.

21.

25.

60.

money:

Fort Worth
Galveston

Indianapolis
Kansas City, Kans
Kansas City, Mo.

306,510

14.

1.5C

705,741

66.

2,970,000

combined)

In money:

a2 117,000
b1:914,000

379,000

6,462,200

1,956,825

3,157,000

3.6

6,189,000

392,366

49.
:

8.97

63.

23.

44.50

28.

47.6

33.8

9.5

4 M_
-a

52.

40.

.b 25.

11.25

11.

ft4vTi-t4; a41 a w Iry
(atecu.ctt4 rat thL)

ikerwia:f

eatti-hitaterdo Clot
fi

I,,

0.6 I

giL14 271LrOt,

b.,,,ark-Aeut

7Atheauf

-tttua.0 eet evt/)

7ititiritTit4

6i-C-Uft:

21\a-4W-e4

/tbalt\

Attiat aftuce
,

eikiVito

Distribution

Transportation and Car
Other general expenses

;301.00
34.40
;335.40
33.16
368.56

Commissary

Car, etc.

Strong
Benedict
Brown
Ryan
Chubb

03.85
83.85
83.85
41.93
41.92

Commissary
;8.29
8.29
8.29
8.29
..

Total

02.140'
92.14v
92.14i
50.22
41.92
368.56

IMO

NATIONAL BANKS, BANKS AN D TRUST COMPANIES
MEMBERS OF CLEARING ROUSE.

Net Deposits

80% of Previous

Aug. J. ,1914.

Column

Gold

Liability
4.?

Bank of New York, N. B A

00 ,668 1000.

820 ,000.

656,000.

658,000

Bank of Manhattan Company

,900 ,000.

1 ,662 ,000.

1,330,000.

2. ,333 ,654

Me roh ant s National Bunk

21,158 1000.

840,000.

672 ,000.

674,049

Meohanios & Metals National Bank

65 )528 ,000.

3,394,000.

2 ,715 ,000.

2 ,723 ,479

Bank of Ame ri oa

26 ,499,000.

1 ,052 ,000.

842 ,000.

644,166

196 ,234,000.

7 ,755 ,000.

6,230,000.

6 ,249 ,399

24,790 .000.

984,000.

787,000.

789,600

Me ro hant s Exohange National Bank

8,858,000.

352,000.

282 ,000.

282,459

& Drovers Bank

2 ,171 1000.

66 p 000.

69,000.

69,009

,822 ,000.

429,000.

343 ,000.

344,247

47 ,890 ,000.

1 ,900,000.

1,520 ,OOO.

1,524,635

117 1971 ,000.

4 ,682 1000.

3 ,746 ,000.

3 ,757 ,022

4,927 ,000.

196 ,000.

157,000.

157 ,278

21 ,852,000.

867 ,000.

694,000.

695,113

,313 ,000.

92,000.

P4,000.

73,824

86,412 ,000.

3 1509,000.

2 ,807 ,000.

2 ,815 ,760

21 ,819 )000.

866 ,000.

693 ,000.

694,913

9,257 ,000.

367 ,000.

294 ,000.

294,495

National City Bank
Chemical National Bank

National Butchers

Greenwich

Bank

National Bank.

Amerioan Exohange

National Bank of Commend

Paoi fio Bank
Chatham & Phenix

Peoples

National Bank

Bank

Hanover National Bank
Citizens

Cent ral

National Bank

Market &I Fulton National

Bank

Metropolitan Bank

1595 )000.

460 1000.

368 1000.

369,122

Corn Exohange Bank

75 ,814,000.

3 009 000.

2 ,4.07 ,000.

2,414,340

24,077 ,000.

955,000.

764000.

766 ,330

91 ,241 ANN.

3 ,621 ,000.

2 ,897 ,000.

2,905 ,633

1 ,766 ,000.

70,000.

56,000.

56 ,171

,625 ,OOO.

501,000.

401 ,000.

402,022

106 )457 ,000.

4,225 000.

3 ,380,000.

3,390,301

48 ,208 ,000.

1 ,913 ,000.

1,530,000.

1 ,535 ,067

Bowery Bank

3,403,000.

135 ,000.

108 ,000.

108,329

New York County National Bank

9 9127 ,000.

362,000.

290,000.

290,463

German Amerioan Bank

4,180,000.

166 ,000.

133 ,000.

133,2o5

115 ,201 ,000.

4,572 ,000.

3,657,000.

3 ,668 ,754

14,425 ,000.

572 000.

458 ,000.

456,995

Importers

Traders National Bank

National Park

East River

Bank

National Bank

Second National Bank.,.
First

National Bank

Irving National Bank

Chase National Bank

Fifth Avenue Bank

-2-

$ 3 ,431 ,000.

Liabi lit y

Co lunn

Aug. 1 *1914.

German Exchange Bank

Gold

isq$ of Previous

Net Deposits
$

133 ,000.

110 ,000.

110,131

5 ,562 ,000.

221 ,000.

177 ,000.

117,339

Lino() ln National Bank

15 ,522,000.

616 ,000.

493 1000.

494,303

Garfield National Bank

9 ,586 000.

330 ,000.

304,000.

304,927

Fifth National Bank.

4,241 ,000.

166 ,000.

134,000.

134,610

12 ,784 1000.

507 ,000.

406 ,000.

406 ,837

4,752,000.

189 ,000.

151 000.

151,661

Seaboard National Bank

29,267 ,000.

1,161,000.

929 ,000.

931,632

Liberty

1680 ,000.

1,059,000.

647 ,000 .

849,763

Nev York Produce Exchange Bank

10 ,795 ,000.

'128,000.

342,000.

343 444

State Bank

24,115 ,000.

951,000.

766 ,000.

161,935

Baourit y Bank

12 ,753 ,000.

506 ,000.

405 ,000.

406 ,034

6 ,987 ,000.

277,000.

222,000.

222 ,276

10,125,000.

402,000.

322 ,000.

322,561

6 ,720 1000.

267,000.

214,000.

214,251

Brooklyn Trust Company

20,78S ,000.

825,000.

660 ,000.

662,013

7-ankers Trust Company

102 ,559 ,000.

4,070 ,000.

3 ,256 ,000.

3 ,265 ,929

-J.S. Mortgage & Trust Company

28,179 ,000.

1,116 ,000.

894,000.

697,121

Astor Trust

15 ,590 ,000.

61,000.

495,000.

496 ,710

20 ,543 ,000.

827 000.

662 ,000.

663,611

141,511 ,000.

5,616 ,000.

4,493 1 000.

4,506 1500

,900 ,000.

234,000.

1157 ,000.

161,711

Tr. Co

11 ,883 000.

472,000.

316,000.

316,151

Columbia-Ehiokerbooker Trust Co

38 ,6 iss ,000.

1 ,535 000.

1 ,22ts 000.

1,231,144

Peoples Trust Company

15,156 ,000.

601 ,000.

451 ,000.

462,266

29 ,554,000.

1 ,173 ,000.

936,000.

941,261

Franklin Trust Company

7 ,541 ,000.

299,000.

239,000.

239,929

Lincoln Trust Co

8 1669 ,000.

344,000.

.276 ,000.

216,039

Metropolitan Trust Co

20 ,436 ,000.

511 ,000.

649 ,000.

650,116

Broadway Trust Co.

13 L? 40.000.

553 ,000.

442.440.

443,749

76 ,S20,000.

61 ,460 ,000.

61 1643 9396

Germania Bank

Ban/ of the Metropolis
West Side Bank

National Bank

Coal & Iron National Bank
Union Exo hangs National Bank

Nassau National Bank, Brooklyn

Company

Tit le Guarantee & Trust Co
Guaranty

Trust Company

Fidelity Trust Company

Lawyers Tit le Insuranoe

New York Trust Company

?..,

$1 ,935 ,521 ,000.

-3Net Eeposi ts

604 Previous

Aug. 1 .1914.

ki leering Non-Member Banks.

Gold

Liability

Column

;

Bank of Washington Heights

$ 1,253,000.

7,nttery Park National Bank

1 ,629 ,000.

73,000.

56,000.

56,516.

Century Bank

6 ,535,000.

259 ,000.

207 ,000.

207 ,631

Colonial Bank

7,060,000.

280,000.

224,000.

224,663

Columbia Bank

7 ,196 ,000.

266 ,000.

229 ,000.

229,491

Fidelity Bank

1 ,018 ,000.

40,000.

32,000.

32,096

Mutual Bank

5,494,000.

216 000.

174,000.

174,932

3 o571 ,000.

142,000.

114,000.

113,946

Yorkville Bank

5 ,063 ,000.

201 ,000.

161 ,000.

161,290

I, i rst National Bank, Brooklyn

3 ,336 ,000.

132 ,000.

106 ,000.

105,922

10 ,531 ,OOO.

416 ,000.

15 ,291 ,000.

607 ,000.

466,000.

467 ,081

National City Bank, Brooklyn

4,536 ,000.

160 1000.

144,000.

144,439

North Side Bank, Brooklyn

2 .638 .000.

105 .000,

8A20.,+

84.256

New Netherlard Bank

50,000.

40,000.

40,122.

Citi zens-Manufaoturers Trust CO. ,
Brooklyn

Meohanios Bank, Brooklyn

335,420

NON-MEMBERS OF CLEARING HOUSE

NET DEPOSITS AS OF JUNE 30 . 1914.

National Banks.
Bronx National Bank

Gotham National Bank

995 ,00o.

39,0000

31,000.

31,295

2 ,405 ,000.

95 ,000.

76 ,000.

76 ,232

Harriman National Bank

11 ,562 ,000.

459 ,000.

361,000.

366,320

Sherman National Bank.

2,139,000.

63,000.

66,000.

66,20?

823 ,000.

53,000.

26,000.

26,461

Peoples National Bank, Brooklyn

1 ,333 ,000.

53,000.

42,000.

*2,529

Ridgewood National Bank

1 095 Am.

43,000.

34,000.

34,505

Baysi de National Bank, Long Island.

221 ,000.

9 ,000.

7 ,000.

7 ,222

Commeroi al National Bank, L. I. Ci ty

441 ,000.

17,000.

14,000.

13,641

First National Bank, Corona

533 ,000.

21 ,000.

17,000.

16,651

Jamul oa

613,000.

24,000.

19,000.

19,259

Ozone Park

477 ,000.

19,000.

15,000.

15,246

Whi t est one

182 ,000.

7,000.

6,000.

5,611

Port Riohraond Nat. Bank , 5.1

746 ,000.

30,000.

24,000.

24,073

Stapleton National Bank, S. I

531 ,000.

11 ,000,

16 ,652.

Greenpoint Natl. Bank , Brooklyn

$ 2 ,031 ,375 "0.

211000.
60 ,612 ,000.

64,492 ,000.

6 4,686 ,2115

State Ba.nks.

Bank of the United States

4 1,936 ,000.

;

11,000,

62,000.

425 ,000.

11,000.

14,000.

13 ,6 41

1 ,956 $000.

76,000.

62 p OM

62,590

Bryant Park Bank

1 ,056 ,000.

2+2,000.

33 ,000.

33 1702

Chelsea Exo hangs Bank

2 ,280 ,000.

90,000.

72 ,000.

72,220

International Bank

1 ,461 ,000.

569000.

1+7,000.

46,541

Public Bank

8 ,960 ,000.

356 ,000.

264,000.

285,666

Twenty-third Ward Bank

1 ,722 ,OOO.

681090.

54,000.

54,566

Westchester Avenue Bank

566 $000.

23,000.

16,000.

18 ,4.56

Bank of Co ne y Island, Brooklyn

526,000.

21,000.

17 ,000.

16 ,651

Homestead Bank, Brooklyn

'+93,000.

19,000.

15,000.

15,246

Montauk Bank, Brooklyn

616 ,000.

24,000.

19,000.

19 ,259

629 )000.

33,000.

26,000.

460,000.

18,000,

14,0004.

j'+,4414

5,817 ,000.

231 .000.

165 .0004.

165,361+

$2,063 ,126 ,000.

61,612,000.

65,491 ,000.

65 ,697 016

75,430,000.

2,993,000.

2,394,000.

2 ,401 ,701

3 ,255 ,000.

129 )000.

103 ,000.

103 ,515

Empire Trust Company

17 ,431 ,000.

692 ,000.

554,000.

555 ,266

Equitable Trust Company

66 ,609,000.

2 ,651 ,000.

2,121,000.

2 ,127 ,267

Farmers Loan & Trust Co

96 ,179 ,000.

3,696 ,000.

3,117 ,000.

3 426 ,304

Fulton Trust Company

8 ,566 ,000.

340 ,000.

272 ,000.

272,629

Hudson Trust Company

2 , 477 ,000.

96,000.

76,000.

16,639

Mutual Alliance Trust Co

6,707 ,000.

346,000.

277 ,000.

277,642+

Transat 'anti° Trust Co,,,,,,,..,.,..

29054,000.

62,000.

66,000.

65,600

Union Trust Company

51,935 ,000.

2,461,000.

1,649 0400.

1 ,653 Mg

United States Trust Company

58 ,469 ,000.

2,320 1000.

1,656,00t.

1,661 ,659

Hamilton Trust Co. , Brooklyn

5 , 995 000.

236 ,000.

190,000.

190,961

Home Trust Co. , Brooklyn

2 9912 ,000.

116 ,000.

93,000.

93,083

Kings County Trust Co,, Brooklyn

15 ,536 ,000.

617 ,000.

494,000.

2+95,105

Queens Count y Trust Co. , Jamaioa

1 .997 .000.

79 ,CANA.

63,000.

63 .391

60,000,000.

80 )24-3 )940

Broadway Central Bank
Bronx Borough Bank

...

Bank of Flatbush , Brooklyn.... .
Hillside Bank, Richmond Hill

Bank of Long Island, Jamaioa

61,166

26,481

22.1_81 t Compani 0 s .

Central Truir.; Company

Comeroial Trust Company

Citizens Trust Co., Brooklyn

$2,519 ,936 ,000.

100,000 ,000.

Crossed Out.

Flushing National Bank

g,Ooc

6,420.

+ National Bank of Far Rookaway

2S1000.

22,46g.

+ Mariners Harbor National Bank

9,000.

7,222.

+ Richmond Borough Nat. Bank

13,000.

10,432.

+ Tottenville National Bank

9,000.

7,222.

Bank of Europe .........

67,000.

69,12.

Cosmopolitan Bank

16,000.

14,444.

1.249.000%

1.002.247.

1,421,000.

1,140,267.

15,000.

12,037.

Tottenville National Bank

3,000.

2,407.

Richmond Borough Nat. Bank

12,000.

9,629

Mariners Harbor Nat. Bank

5,000.

4,012.

J. F. Morgan & Co

693000.

556 091.

Kuhn, Loeb & Co

693.000.

556.091.

N. Y. life Insurance & Trust Co.

Agsled in plaoe of above.
National Bank of Far Rookaway

4 1,421,000.

1,140,267

These banks rare

unable to take
the proportionate

liability allott-

ad to them and

the amount was

reduced as indioated.

The fol1ouip00 otatement of Olaah Reoorves is based upon the report of the Comptroller

of tho Ourream, sliming the condition of National Banks on December 5. 1907.

Centre/ Resorvo OltioshOw York Olt.
Chicac0 .

3t.

Cash

Oash
On Hand

Reguired
0206,098,000 4180,448,000
54,792,000
56,591.000
21,826.000
26.774,0(X)

0289 463 000 '257.066.000

&woes
vsso

66o*

foo
606

Deficit
425,660,00t
1,797,000
4 948 000
102.397,000

Pereentage
Szeoes. Gash

-.
so
O.

Regorge CitiesSeston

Albany

Brooklyn ..

Philadelphia.
eitteburg
Baltinore

420 974 000
3 050 000
1 726 000
24 704 000

/8 056 000
6 026 000
2 705 000

Washington..Savannah..

170 000

aallas *****

2 489 000
2 400 000
1 499 000

Galveston..
Houston....

1 464 000

New Orleans....

Iondsville

Fort worth...
0an Antonio....
Waco

60 666

Cincinnati. .

966 ocla
201

907 000
383 000
6 141

indianapolis.

5 728 000
2 332 000
3 072 000

n1lwaukee

4 512 000

Cleveland
Columbus

Detroit ....

cedar Rapids
Des Minas
Dubuque

2 957 al°

697 000
1 296 000

us 000

Kansas City, ho.
St. Joseph

5 468 opo
5 726 000
1 044 000
518 000
4 990
1 199 000

Omaha... .....

4 086 000

hlunsapolis
St. Paul

Heneas Oity, Han.
Wichita

Denver

Pueblo ......

Salt Lake City..
'Axe enrolee

6an Francisco
Port/end

Seattle

703 000

15 062 000

1 019 000
1 209 000
4 051 poo
5 118 coo
1 979 000
2 893 000

417 468 000
2 000 000
2 046 000
18 807 000
17 030 000
5 879 000
4 785 000
261 000

3 000 000
2 468 000
1 683 000
2 162 000
486 000
2 077 000
1 957 000
655 000

6 046 000
5 156 000
2 508 000
6 118 000
2 471 000
4 264 000
535 000
1 162 000
323 000
6 092 000
4 640 000
1 033 000
635 000
3 799 000
1 072 000
.832 000
6 904 000
7 520 000
1 127 000
818 000
6 475 000
9 600 000
4 306 000
4 090 000

506 000

1 068 000

320 000

2,082,000
91 000
536 000
60 000
184 000
297 000
255 000
623 000

5 897 000
1 026 000
446 000

6.6
*66

77%

066

116.7

95 000
562 000
486 000
248 000
162 000
134 000
2 000

624 000
922 000
115 000

66.6
06

*5
*5

a*
II 0

1,191 000
120 000

129 000
2 848 000
2 459 000
108 000
609 000
2 422 000

69.7
48.5

59.7
87.7
117.5

4 4a2 000
2 327-000
1 197 000

7157 076 000 .00.2.0000 06 124 000

110.3

176 000

2 046 000

666
606
666

/ 050 000
272 000

Af..9.01Z2

2
Oash
Hard

mine ......
Bow Hampshire
Vermont.

Massadhusette
Rhode Island

Connecticut.New York

New Jersey
Pennsylvania
Delaware
0ary1and

Dist. of Columbia

41 876 000
1 211 000
926 000
6 748 000
1 200 000
3 123 000
415 004 000
14 066 000
7 720 000
20 253 000
553 000
1 650 000
64 000
44 506 opo

mississippi....

3 536 000
1 996 000
1 112 000
7/4 000
1 592 000
1 007 000
1 442 000
610 000

Texas

5 100 000

Kentudky

684 000
1 886 000

West Virginia
North Carolina.
South Carolina..
Georgia..

Florida

Alabama

Isolsiana .

765 000

Arkaneas .....

42 8010 000

1 908 000
1 499 000
10 707 000
1 946 000
5 697 000
424 557 000
20 424 000
10 666 000
52 796 000
1 057 000

2 3930X)
196000
67 532 000
6 852 000
3 551 000
2 418 000
1 444 000
4 582 000
1 836 000
5 879 000
1 000 000
1 212 000
12 528 000
1 456 000
3 440 000
4 734 000

&moss

4 924 000
797 °op

4..

716 000

0.0
*.o

2 674 000
49,553 000
6 558 000
2 946 000
22 543 000
504 000
743000
132 000
23 236 000

Oklahoma

Washington
Oregon

California
Idaho

titakomo
Nevada

Arizona
AlaStm

2 321 000
1 055 000
3 511 000
661 000
348 000
272 000
321 000
80 000
8 549 0(X)

704 000
748 000
65 000
3510 Coo

45.

206.2

0.
004444affaa.faa

77.9

187.7

0-4

2 437 000
630 000
447 000
7 418 000
772 000
1 655 000
2 520 000

25 283 /00
606 000
21 528 000

82.5
169.
103.2

04.

145.4
112.8
82.4
96.1

40
S..
04.

6 929 000

*0w
*ow

2 39.1 000
1 805 000

4.*

61.6
101.5
77.6

Os.

69.6
42.4
71.6

406

4205

90.3

930 000
1 098 000
1 739 000
2 757 000
2 054 000
926 000
3 466 000
717 000
2 907 000
674 000

66.5

*40
404

8405

3 027 000
1 639 000
4 365 000
699 000
233 000
432 000
427 000

O..
04.

150.4
159.9

12405

04.

105.7
66.9
168.8
233.

2 660 000
2 326 000
1.522 000

/0 80,2200
0149 037 000 0262 962 000 0113 940 000
/

61.9
91.1

829 000

5 248 000
2 674 000
0 6?6 000
1 360 000
582 000

Golorado
New 2exico

44.
O..

60 a

2 502 000
2 396 000
4 545 000
6 007 000
3 752 000
1 631 000
5 568 000
1 544 000
5 150 000
32 705 000

,".7-yering... ...

3801

O..

730 000

/ 402 000
1 298 000

Kansas
,ontana

45.2

2 989 000

28 582 0010

2 806 000
3 230 000
1 718-000
705 000
2 102 000
627 000
2 245 000
16 131 000

0.0

11702
10202

14 704 000
10 574 000
15 854 000
6 418 000
6 046 000
6 094 000
7 795 000
2 766 000
70 571 000

North Dakota
South Dakota
Nebra.m.

;

.04

9 096 000
5 246 000
8 925 000
4 020 000
4 245 000
726 000
5 469 000
1 464 000
42 189 OW

Iowa....
iiaaouri

5802
8204

65.

Ohlo....-...0..
Wisconsin.--

49.2
71.7
63.6
58.6

04.
0.0

48 14/ 000

POIrSentage

Faceso OaSh

2 296 000
1 565 000
1 205 000

2 414 000
22 858 000

Michigan

00.

683 000

5 959 000

Tennelsce......
Inalana

Deficit

0 46

a..
000

4..
0

61.9
80.0
118.5
131.5
164.6
114.3

/29.6

V00

15 000
/6-00o
5 9(34)

7G.

Cash

Required
206,098,M
New York City
56,591
Chicago
26
774
St. Louis
Central Reserve Citie s 0289 463 W
Boston
Albany
Brooklyn
Philadelphia.
Pittsburg
Baltimore....
Washington...
Savannah
New Orleans
Louisville...
Dallas

Fort Werth.
Galveston...
Houston

20
3
1
24
18
6
2

974 M
058
726
704
056 M
025
703
170
2 489 M
2 408
1 499
965
1

231M
464
907
383

San Antonio
Waco

Cincinnati

6 111 M

Cleveland....

5
2
3
2
4

Columbus...
Indianapolis.
Detroit

Milwaukee..
Cedar Rapids

Des Mines...
Dubuque
Minneapolis..
St. Paul
Kansas City,Kan.
Wichita

Kansas City, ED.
St. Joseph...

718
332
072
957 M
512
697
1 296
325 M
5 468
3

726

1 044
518 M
4 990
1 199

703

Linooln
Omaha

Denver
pueblo

1 019

086 M
5 061

Salt Lake City
Los Angeles
San Francisco
Portland
Seattle
Reserve Cities

Report of

1 209
4 051 M
5 118
1 979
2 893

rxoess

On Send
3.80,448,M

54 792
21 826
0257 066

17
2
2
18
17
5
4
3
2
1
1
2
1

6
5
2
5
2
4
1

468
000
046
807
030
579
785
261
025
468
683
162
486
077
957
655
046
156
508
118
471
264
535
162

Deficit
025,650,M
1 797
4 948
032 39711
.11.)

Cash

3,506 M
1 058

320,m
5 897
1 026
446

77.

2,082
91

536M

184
197
110.3

255i

613
1 050

115.7

272

95m

562
176
2 046

...

134
...

624

6 092
4 648
1 033

922

633M
3 799
1 07/
832
6 934 m
7 520
1 127
1 818
6 473 M
9 600
4 506
4 090

66.6

486 M
248
162

323!!

!'169_048

Percentage
Excess

115 M

1 191 M
128
129

69.7
48.5

2 &48 M
2 459
108
609

59.7
87.7
117.5

2 422 M
4 482
2 327
1 197

26 124 M

A'114 952 H

Comptroller of the Currency, showing the condition of

National Banks on December 3, 1907.

Cash

Maine

Required
4 1876L1

11U

'aw Hampshire

916
6 748 M

;e-

Massachusetts
Rhode Island
Connecticut

New York
New Jersey
Pennsylvania
Delaware
Maryland

2600M
1 908
1 499

10 707 LI

1 230
3 123

1 946
5 697

14 066
7 720

20 124
10 666
32 796

45 004M au 557 M
20 253
55311

District of Columbia.
Virginia

Cash
On Hand

1 650

64
044 306 LI

1 057 IL
2 393
196

067 532 11

West Virginia

3 536
1 996

North Carolina

113
714

5 832M
3 551
2 418
1 444

1
1

592M

4 581 11

South Carolina
Georgia
Florida

,Ilabama

Mississippi
Louisiana
Texas

Apkanclas

Kentucky
Tennessee
Ohio

Indiana
Illinois

Michigan
Wisconsin
Minnesota

Iowa

Missouri...

1 836
3 879
610
1 240
765 la
1 212M
5 100
12 518
1 456
684
1 885
3 440
4 734
2 414
42 858 M 048 141 hi
9 096M 14 704M
5 246
10 574
8 925
15 854

HXOB
583

3 959 11
716

2 574
9 553 M
6 358
2 946
12 543
743
132

730

2 989 it

042 189 M
1 402M

370 571 11

772

1 555
2 320
325 283

2 034

Wyoming

705

Oklahoma

Washington

627 Li

2 243

76-13111 5"2- 705M
2 321M
035

Oregon

California

3 511

Idaho

661

Utah

348 LI
272

Nevada.
arizona

laska

321

5 348
2 674
7 876
1 360

581 la
704

746
80
65
8 54911 319 35611
149 037 M 3262 962 M

61.6
101.5
77.6
59.6

42.4
71.6
42.5
90.3

1 803
2 668
2 326
1 322
6 302 II

2 757 11

New Mexico

96.1

2 398 M.

3 752
1 631
5 568
1 34411
5 150

2 102

82.4

5 328
6 929

6 087 LI

Colorado

***** I

5 608 11

3 230 IL

1 718

58.4
145.4
112.8

44711

2 806

298

82.3

169.
103.2

7 418

Kansas
Montana

00.0.0

630

2 332M
2 396
4 545

North Dakota
3outh Dakota
Nebraska

65.
77.9
117.2
102.2
187.7

1 555
1 305
829

6 046
6 394
7 795
2 786

2062.

323 236 M
2 296 11

2 437

6 416 IL

45.2
38.1
61.9
91.1
45.

504 11

007

4 243
3 726
5 469
1 464

Cash

49.2
71.7
63.6
58.6
58.2
82.4

24IL
797

1 442

4 020 M

Excess

Deficit

66.3
84.5
61.9
88.0
118.3
131.3
164.8
114.3
129.6

93011

1 098
1 739
926

3 466
717 Li

2 907
a16 674M
3 027
1 639
4 365

130.4
159.9
124.3
105.7
66.9
158.8

699
233 M

432
427
:)10 822 M
0113 940 M

133.
1511
1511
1511

76.

-2-

rew York, at tIne date of -VAG statement, showed. a Eofieit

Leserves of 45,650,000.; Chia,zo - 1,797,000.; St. Laais - 7,4,c148,030.

en,

"In explanation would say that I first figured the exact amount in cash
that central reserve city, reserve city, and country banks (by States) were required
to keep in their own vaults under the law, based on their deposits, as shown in the
Comptroller's report at the close of business December 3, 1907.
cash that all such banks held in their vaults.

I then took the actual

The results Show that, while New York

City banks were under their reserve to an amount exceeding $25,000,000., the reserve
cities as a whole were over their reserve, even though a few of them showed a shortage,

and that the State banks in every State and Territory in the United States, outside
of Alaska, showed an excess of cash required of 76%, or $113,840,000.

These country

banks could have carried an average excess reserve over requirements of 54%, and then
have divided the rest up among the three central reserve cities of New York, Chicago,

and St. Louis, which would have resulted

making up their entire deficit of

$32,000,000.

Instead, therefore, of the so-called "big interests", and particularly
the New York bankers, having brought on or purposely caused the panic, as has been so

kindly suggested by various members of Comgress, these figures show the whole trouble
to have been due to actual hoarding of money by country banks in all parts of the United
States, particularly in the west and South.
You will notice, in the enclosed tables, that many of the banks in the

Southern and Western states carried over 100% more cash in their vaults than the law
required.

The banks in Georgia held 187% more cash than was necessary; in Alabama

169%, in Texas 145%, in Colorado 164%, in Oregon 159%.

These figures clearly show that,

while New York was making every effort to protect the rest of the country and live up
to its position as a central reserve city, the country banks were all taking more than
their share'

and, further, that they could have carried an average excess cash reserve

of over 50% and still have left enough funds for the central reserve cities to do

business without

friction."

Name of Bank

Reserve

National Bank
of Commerce

17.6%

National City

Emergency
Currency
Outstanding

C. H. Ctfs.

among
Assets

C. H. Ctfs.
among
Liabilities

Other
Extraordinary
Liabilities

;-015,071,000

011,370,000

21%

12,206,000

13,430,000

Citizens Central 36%

1,143,000

02,000,000

Hanover

24%

7002,000

30,000

National Park

17%

5,127,000

Importers &
Traders

21%

1,060,000

1,310,000

American Exchange 17%

3,523,000

1,620,000

1,U97,000

Union Exchange

1,209,000

950,000

450,000

20%

04,484,740

4,810,000

2,735,000
2,662,000

ce"/
.

Amount of purchased paper now outstanding*

Amount of paper matured from July 28th to August 14th,
inclus IVO

Amount of sales, July 28th to AmgastAS:

Amount of paper maturing to December 37et,

Amount of ;grassed paper now

oatetandimg:/t=7.3

Amount of paper matured from July 28th to August 14th,ississive,

dad,

Amount of sales, July 28th to August

14t047:M44'v

Amount of paper maturing to Deossber

31sta7I`C;3

le/

4440-1,

# 3,965,000.00

Amount of purchased paper now outstanding,

Amount of paper matured from July 28th to August 14th,

inclusive,

1,250,000.00

Amount of sales, July 28th to August 14th,

C 290,000.00

nount of papor maturinc to Dow:lbw 310t,

$ 3,590,000.00

# (,44,90,r,

Amoant of purchased paper no mtstamdfmg,
ilunt of paper matured from July 28th to Azimut 14th,

Inclusive,

Amount of sales, July 29th to August 14th,
a7--fre-o-uce

-; eC 0

,4,2,4-767

7 ôo a.C c o.

PAPER OUTSTANDING - AUGUST 21, 1914.

On hand (G. S. & Co.)
Foreign Buyers
Private Buyers
New York City Banks
New York City Trust Companies

Arizona
Arkansas

1,647,500
4,532,000
855,000
25,322,312
17,464,000

5,000
25,000

California
Colorado
Connecticut

5,000
35,000
135,000

Delaware

25,000

Iowa
Indiana
Illinois

60,000
465,000
4,084,000

Kansas
Kentucky

10,000
40,000

Massachusetts
Minnesota
Missouri
Michigan

4,800,000
140,000
205,000
360,000

New York (Exclusive of N. Y. City)
New Jersey
Nebraska

1,736,000
1,474,000
103,000

Oregon
Ohio

190,000
1,092,000

Pennsylvania

6,125,000

Rhode Island

865,000

South Dakota

15,000

Texas

20,000
10,000
10,000

Utah
Vermont
WaShington, D. C.
Wisconsin
West Virginia
Washington

75,000
553,000
25,000
90,000
TOTAL

72,597,812

Leading Dealers in Commercial Paper.
NEW YORK

itteigt;,>, Goldman Sachs & Co.
Naumberg & Co.

Holbrook & Corey C.
Blake Bros. & Co. C.,
Hathaway, Smith, Folds & Co.
Bond & Goodwin
Bayne Hine & Co.

Campbell Heath & Co. Cs.

S. Moseley & Co. C.
klarkwald ec Springer c.
CHICAGO

\\_A.G.

Becker & Co.

George II. Burr & Co.
W. T. Rickards & Co.

C14 A-

4ad4C

BOSTON

Curtis ec Sager
W. 0. Gay & Co.

Well Farrell & Co.

jcA/6-tet)6Z Codpn4

PHILADaPHIA

Dunne Bros & Co.
Bodine Sons Co.

CtaA

dCtet:011

ST, LOUI

Moluney & Co.
RTFO

Stedman & ftedfi

4,00 .0*

kot -

-90 o0,t-kn.al

ca)(

ed/
ot_S

zoo_e .644

0 o-e

103.44.

(9de,

24_

arm #00

7./67,ssa_

Oil_ r/47 00 0

,csIrif)-0-0

0-4

s-00 .60 (>1i.

77T9%600
le :7? g
3164'

4 sotto

0 0-0
to-e-a

5 7 7.5-4,

1?.>lo,to.0

45-90
,

,0 4-6

ibra .0 0- 0
Chate_re-6-4

-01M90 li(n-arttee

IL9'ep

?a-Apo-4

.61,0

'Ft

tiO-d

MATURITIES TO DECEMBER

31,

PARI 3

L ONDO N

Maturing
Indebtedness

October

November
December

Coupons

0
NI)

August

September

1914.

10,286,395.

3,883,648.19

10,940,089

t,P

1,323,193.00

**747,617.50

1,976,260.00

29,719,088.

899,160.00

12,387,829.

6,762,953.00

1,616,865.00
log 4h

63,333,40l.
'

y4,762,808.19

$11,679,271.00

,p747,617.50

* Of this amount 0747,617.50 is payable also at Paris.
** This amount is included also in the (3,863,648 payable in London,
the coupons being payable at either city.

MATURITIES TO DECEMBER 31

1914.

PARIS

L ONDO N
Maturing
Indebtedness _Callyto_ns

Maturing
Indebtedness

Pcs.

Fes.

August

September 2,170,000
October 2,310,000
November

6,225,000

December

2,605,000

413,310,000

*793,182-7-4
184,327-16-0

Coupons

7,0004000.

13,865,094

10,450,000.
35,550,000

8,500,000.
g 977,510-3-4 Fes 61,500,000.

rcs.3,865,094

Of this amount £153,481:9:6 ie payable also at Parise
** This amount is included in the £793,182 payable in London, the
coupons being payable at either city.
*

4-CT-coo

)!
gi X
30

000
,

s&-6 0

,cco
0

4c;-,--0

441

91-/
7, tky,L6),
(caw

4-5 %ft"'

kg%

c4-tr
00-v.

04,660...

to--o

kd-eta *0-4

/5So-m. o et-to

c51,6eqp. 42-e-e ,

o-10-0

eltirribrit, 24,2,000 ,064,
LS-.afie

1 Se

larrlopoo.

i415-e

re , D-

'7 doe,

61)

186i 000i o e
ed.

04 It 04- tt.6

.a..tk5 0 . 0
114 cir.

eita,

co, r,0,90

14047

1,6140,90,0
?7Ce 0-0

7,64. etez

1064.4
f,c,87 tiC0d-41

073,6t/-191.61-4)

;/,c 9 9,

1,101

too-0,00-o

S:).re

fogLe

14-0 sef,

e -94 ,13.04
2.,

ot)

Jrt,

04--o
,6,0

7.1

Interest

466,064.00

Dr Int on money in use as per average balance sheet
Less
2201.74
Int on balance in Ch&se
0354.50
Int on balance abroad *1705

uet

10,656.24

interest cost to date

467,507.76

Dr Int on money bill Tov. 30th

7rom 28121 to say EUReual 1611L1 for 35 das
London 1MM 4s here) "
Int on 611U (

$93.333.00
2%

probable interest cost to Yov. 30

Grand total interest loss

11,600.

481,733.00

4139,240.76

SO:n:9C

;Goo Jo suTaccms pio0

'53uTq.uTaa 'soicro oq.e
nr$oo Jo arplaTqs O.

mot
2

000'I

evap

rel.oz
q.soo go

sasueaT

eq:u

2aTatTu rrITE
Ott) (un.uTad

4900 go o.2uTOITTIts /Aar, 31,107. ou q.L poTgT4ou
auTan2T1) t.,111102
Jed Fi ao '00g41 sset *OT."9"Ut

pwca-D T1.1.01:

*OTeTT

00eTC
OnO't

"CMg
CL9'02

//)

Recapitulation Pima (Est Nov 30, 1914).

;139,240.
30,670.

Total Interest loss
Total expense

169,910.

Total

Pounds .= equal g .03394 per E

Average cost of E equals
Interest and expenses
Total estimated cost

4.89309
,03398

4.92707

Reca-Ditulntion

(To date Oct. 26, 1914).

Total interest cost
Total other cost

41;0,600.

11,300.

Total

E ZMU

equals

3.44

Lverage cost of i
Cost

4.89309
.0344

4.92749

68,800.

Not Counting Interest.

To date

cost

2M
Rate

g11,310.
5,655.
4,893,093.
4,098,748.

Estimated to Nov. 30.17

6,134.
4,893,093.
4,099,227.

30,670.

Pra-Ck 6i. Ca q (1/0 -

17-tq

6-nt op Ci/m gad 6:9m--=

,s-G .=76,5 1/2. Jetta.

18, 6 C

&.6.046

q/aiku &LP reig,2ta 6; atifdaw.

aant)

9"?,-(cY

etuct,' P&L'

del& kozeg

piterr' -ta_eocvt, &trio_ 76

&Of

L'jzw che plQ(a_ 16 7,
.

erfatov.

cocusinaatoa ,
CO-0-

071-E es -

fia)10 b-ft

fervierit (14

cf_tdveri-e7;

(erfteiv
TILF-

641146ozrwi

croi "T--

tfava 01-0-Ah71.--

aufflea,net. (al xs4erict _

"_2=tax,ijccuzt latat-tio

Pne-kg 4-et) fScgt ,
01-11

ognt oforP/?,

f_tE) Vitutra,
e/x/947.-vatja

f709/-W,6-(;,

6,77)

43,9 Ito

traia-fr

tgataltel/0
eilkci,jh, 290 trit

&rotate,

de g-__01-4 L favAama

_15AUsti2tv5_

dO*L1(0.-74.

arce-co-

Fd, v

bece_ci, otidet,4_agelifeti

.,,

GcRraipeuct_

)(90-to (----7mt-bi 6'41c. 7xcda\---

ogrws bit. tarszatvitehat /ca

Ar. etwericettca,

actfcQ't- awl

)

cat r'-de 61t,i.

4,2/0 morikuti

_LLtat2.0229)(5-6tsi 5 r

'7)m

CdArso

&tc.c; /4knic # d2iaftec.

&ta-niftt ga,ww_rovffip

ent)

0
Ptex:

6465-14.

ExrAcitef
G-wmt

67-4-19Leetiztl_t\e-iro\cie

sgemcwww Gioad-±-

k(42_1;751-a

_foyz2i,t3

ela6C1/1-50
71;(7

awed:,_

fc3-

eXaCklitlits8 IC55g24".

kerAjaii-C -

G7SA7ii

Ot9CLUJC915-ere

_0X/6214414: edecte
_

dizo ce-eina-

CeteafTT au_a_ ,c-CMuLL__

(6gatt; e'3ceiattit

aul_7215ti Ateettlip

ffeci-vt,

fiak evxd

2tary7

Re?-:( 67,

6i----dozt.e_

a444---AFee.

etcYckaw

ata)t-

arrArdr-A--

Z2tate_ atc_thau ?mut._
CA4

gattf<
Po t:ett),

10.62(

/of/ ittpui ount4
R, Aziet

flyac; oRK

gal 01(a/tittle's

07k...,-Che4

Aga Bre& c
&way- etdrE Pcut ttZ Pttd cde conRa_c9fiviieu,

atire1-

digaSitLewv1,7Tiaaaht

toviar-t-ht:

avnikirso rt-

eattau9
(17.

eattx eakwirAtibx_ SEe9,0

eget'

ecvexceti_ scktara4;.,

Teilattte, I R0.6260810 OtattAC,

f?Ltitulit,Q

diurto;L___M110..r'

rt*aa

17i1t

Pr324462,

441tei-araciel_c"catti-

Etioltd-6.4

a-5

07.1ziJca

tt.)

exte aria

erx,t1144_
710 Olkett
eih)

C1.44

Cm-

'71as:40

CU/4AL

auto_ gato

Otal rierl
16-44

iti6t

-440444-

/A4p Thc44L

h_er;A:i

41214zetu:ititi,awkidiq

chttitia

at4.41,

at-,1( (Nr71/14,_412

0 (.4(

-7

,eirry Arta an

fifti/

emu'

-1?1 et.

11--fec

"A- t_t

t ft

t It. el

1-L-o

5-/c2(

(7'
X-& I

rt.,0

Z47- ,br

ilt,P-e-

aytt 7-eitcc,

4-7L1 A (--- a
(i70

e '&14

21,,t

77h

/1vvryx,

1:vAni-40

2
ItAr-zs

4I'Lx7

,V14.111:k,

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Azt,c7z

t4M

67/

VI-. 1-

.1,14

3 4

r.IX±

October 10, 1914.

R3: PRICES PAID BY BANK OF iNGLDD FOR GOLD BARS.

During the past four years, The Benk of England has paid between

77:9 and 77:9i- for Brs. A fair London price, under the present condtions,
would be about 77:9i, and if they desire to encourage Gold shipments, 77:9
Deducting normal ship-ping charges would make the Ottawa price 77:71 to 77:7:.

October 10, 1914.
RT: PRICES PAID BY BANK OF

TGLAND

OR GOLD COIN,

Diug thE past four years, The Bank of ngland has never paid
less than 76:3-i-, nor more than 76:5. A fair average price would probably
about 76:4,1'.

The Bank of England is now paying 76:34 in London

They are, therefore, charging about
per Mill for freijat and
insurance. This is about 1 per Mill above the usual cost of transportation

Ottawa.

and insur. mice.

The price, 76i'04 is
for Bars.

Penny less than the parity of 77:6, now paid

The prsent bar price is the legal minimum, and he additional reduction of -1"., Penny is, therefore, equivalent to raying less for coin than th
equivalent of the legal minimum for Bars.
Under the circumstances, The Bank of England should pay at least

1-4 Pence above the present price, fal d would be justified, if it desires to
attract Gold in parng 2 Pence ebove the present price. This would make the

Ottawa price 76:2-2-.

On e theoretical 'basis, it would appear that an Ottawa price of

76:2--i-T would be equivalent to a London price of 76:54. As a: matter of fact

ho-ver, it would not equal that, unless the Bank of .gland was compelled t
pay an abnormally hi ja premium rate for insurance, and in such case, the
qu.estion arises of whether they should not themselves bear the increase in
exrense.

etex.

Referring to statement No. 8 and to meet the conditions outlined therein the following tentative sugges-

tion is submitted for a credit of approximately twenty
million pounds sterling.
That ninety day sight bills of exchange should be
drawn on agreed acceptors in London or on the Bank of

England by a committee in New York representing strong
guarantors from among the National banks, trust companies
and private banking firms in the United States.

That

as and when required to supply an unusual demand for ex-

change these bills should be sold by the Committee and
the proceeds loandd against the obligation of stock exo
change houses secured by recognized, approved stock exchange collateral, accompanied by the guarantee of the
stock exchange firm to maintain a margin of at least
twenty-five percent.

At the maturity of the bill if the purpose for which
it was drawn was accomplished and axchange was available
at normal prives, payment for the stock exchange loan coilld

be remitted in payment of the acceptance.

If exchange

was not available at normal prices a request from the Committee for

renewal of the bill could be granted.

The

granting of this credit is predicated on the understanding
that the ninety day bill would be renewed but once, but
that if at the end of this period4settlement could be made

-2

in gold only, a further renewal would be granted.
This situation 'contemplates a corresponding credit

from this country to England if the international exchange situation should be reversed and we should be in
a position to draw gold from England to an extent that
would weaken England's financial position to our mutual
disadvantage.

Leading Dealers in Commercial Paper.
NEW YORK

tvt4q

Goldman Sachs & Co.
Naumburg & Co.

Holbrook & Corey

Blake Bros. & Co.
Hathaway, Smith, F01d3 & Co.
Bond & Goodwin
Bayne Hine & Co.

Campbell Heath & Co.
S. Moseley & Co.
Markwald & Springer
CHICAGO

A.G. Becker & Co.
George H. Burr & Co.
W. T. Rickards & Co.
BOSTON

Curtis & Sangr
W. O. Gay & Co.
Weil Fa ell &

S car

PHILADELPHIA

Dunne Bros i Co.
Bodine Sons Co.
ST. LOUIS

McCluney & Co.
HARTFORD

Stedman & Redfield

Leading Dealers in Commercial Paper.
NEW YORK

artgq

Goldman Sachs & Co.
Naumburg & Co.

Holbrook & Corey

Blake Bros. & Co.
Hathaway, Smith, Folds & Co.
Bond & Goodwin
Bayne Hine & Co.

Campbell Heath & Co.
S. Moseley & Co.
Markwald & Springer
cia CAGO

A.G. Becker & Co.
George H. Burr & Co.
W. T. Rickards & Co.
BOSTON

Curtis & Sangt,r
W. O. Gay & Co.

Well Fa roll & Co.
S.
PHILADELPHIA

Dunne Bros & Co.
Bodine Sons Co.
ST. LOUIS

McCluney & Co.
HARTFORD,

Stedman & Redfield

H. S. F.
October 1, 1913

January 1, 1914

8c CO.

84,400,200.
84,198,651.

April 1, 1914

103,429,645.

June 30, 1914

102,9641189.

CORPORATION

BOND

NOTE

AND

MATURITIES

August 20, 1914, to January 2,

1913,

inclusive.

.1.11111101.111.141111

RAILROADS
AUGUST:

Michigan Central RR 6 / Notes

0 .....

,000,000

cJ 000 COO.

SEPTEMBER:

1
1

1
15
13
15
15

13
/

Pennsylvania RR Equipment 4e, Series A . . .....
St.Louis & San Francisco RR 6 / Notes, 42,600,000.
(In default).
Wheeling and Lake Erie 5 1 Receivers Ctfs. . . . . .
New York Central & H R RR, 5 /. Notes
Chicago, Indianapolis & Louisville By Equipments. .
Frisco Construction Equipments
Georgia Southern & Florida Equipments
New Orleans, Texas & Mexico RR Equipments
Atlantic Coast Line Equipments
Canadian Northern Ry Equipments .. .. .... .. . .
Central of Georgia Ry Equipments
Chicago & Eastern Illinois RR Equipments

Denver & Rio Grande Equipments. ...... .

Lehigh Valley RR Equipments
Minneapolis, St.Paul & Sault Ste Marie Equipments .
New York, Ontario & Western By Equipments
St.Louis & San Francisco RR Equipments. . . . . ...
Seaboard Air Line Ry Equipments
.
.
Toledo, St.Louis & Western Equipments . . . .

2,459,000

101,000
5,000,000
21,000
112,000
25,000
56,000
225,000
255,000
38,000
165,000
73,000
230,000
60,000
35,000
18,000
26,000
50,000

Ay74.9o0

OCTOBER:

1
1
1

Erie RR 3 / Notes
Muscatine North & South Ry 6 / Notes
Red River & Eureka RR 1st Mtge 3 / Bonds
South Carolina & Pacific By let Mtge 6 / Bonds.

4,350,000
425,000
313,000
104,600

CORPORATION BOND AND NOTE MATURITIES

OCTOBER
15

(continued):

_471, tQc.

Chicago, Indianapolis & Louisville By Equipments.
Bangor & Aroostook Equipments
Buffalo & Susquehanna By Equipments
Canadian Northern By Equipments
Chesapeake & Ohio Ry Equipments
Chicago & Alton RR Equipments
Chicago & Eastern Illinois RR Equipments
Chicago, Rock Island & Pacific By Equipments
Cincinnati, Hamilton & Dayton Equipments
Colorado & Southern By Eqiipments
Erie RR Equipments
Ft.Worth & Denver City RR Equipments
Hocking Valley RR Equipments
Iowa Central RR Equipments
Mexican Central By Equipments
Minneapolis & St.Louis RR Equipments
Minneapolis, St.Faul & Sault Ste Marie Equipments
Mobile it Ohio RR Equipments
New York Central & H R RR Equipments
New York, Ontario & Western Ry Equipments
Pere Marquette RR Equipments
Rutland RR Equipments
St.Louis & San Francisco RR Equipments
Seaboard Air Line Ry Equipments
Texas & Pacific By Equipments
Wabash RR Equipments

$ 33,000
45,000
27,000
250,000
170,000
72,000
124,000
265,000
146,000
52,000
202,000
19,000
37,000
15,000
50,000
18,000
61,000
90,000
348,000
36,000
186,000
100,000
361,000
25,000
260,000
67,000
(r/9S-1'461)

NOVEMBER:

1
1
1
15

Hocking Valley By 3 /. Notes
Notes
New York Central & H R RR 5
Pennsylvania RR Equipments
Receiver's Ctfs
Oklahoma Central By 5
Alabama Great Southern RR Equipments
Ann Arbor RR Equipments
Atlanta, Birmingham & Atlantic RR Equipments
Central Vermont By Equipments
Chicago & Alton RR Equipments
Chicago, Rock Island & Pacific By Equipments. . . .
Cincinnati, New Orleans & Texas Pacific Ry Equipments
Erie BR Equipments.
Grand Trunk By of Canada Equipments . . .
Kansas City Southern Ry Equipments
Missouri Pacific By Equipments
New York Central Lines Equipments
Norfolk & Western By Equipments
Rock Island Improvement Co. Equipments
St.Leuis & San Francisco RR Equipments
StLouis, Iron Mtn & Southern Equipments
Seaboard Air Line By Equipments
Southern By Equipments
Virginia & Southwestern By Equipments
Virginian By Equipments

....

.....

4,000,000
12,000,000
2,000,000
450,000
74,000
33,000
30,000
50,000
180,000
225,000
162,000
47,000
365,000
72,000
147,000
2,000,000
100,000
280,000
26,000
145,000
65,000
440,000
25,000
187,000

CORPORATION BOND AND NOTE MATURITIES

DECEMBER:

New York, Ontario & Western Ry 3 1, Notes
Atlantic Coast Line ER Equipments
Bangor & Aroostook RR Equipments
Carolina, Clinchfiell & Ohio Ry Equipments
Chesapeake & Ohio Ry Equipments
Chicago & Alton RR Equipments
Cincinnati, Hamilton & Dayton RR Equipments
Erie RR Equipments
Ft.Worth & Denver City RR Equipments
Kansas City Southern Ry Equipments
Minneapolis, St.Paul & Sault Ste Maria Equipments
Missouri Pacific Ry Equipments
Norfolk & Western Ry Equipments

200,000
125,000
45,000
130,000
215,000
113,000
116,000
450,000
39,000
92,000

51,000
77,000
200,000

44,000

Pere Marquette RR Equipments
Pittsburgh, Shawmut & Northern RR Equipments
St.Louis & San Francisco RR Equipments
St.Louis, Iron Mtn & Southern Ry Equipments

11,000

5,000
67,000
253,000
292,000
185,000
43,000

Seaboard Air Line Ry Equipments
Southern Ry Equipments
Texas & Pacific Ry Equipments
Wabash RR Equipments

1913
JANUARY:

1
1

Richmond & Danville RR Consol. Mtge 6 1. Bonds .
New York Central & H R RR Equipments

St.Louis

& San Francisco 6 7, Receivers' ai.fs

4,122,000
2,000,000

3,000,000
702:21 019o.

Jea.16,04,

000

CORPORATION BOND AND NOTE MATURITIES

INDUSTRIALS
1914

SEPTEMBER:
1

1
1
1
1
2

Johnson Company of Pennsylvania 1st Mtge
Miami Paper Co. 1st Conv, 6s

National Fire Proofing Co. let & Coll.Tr.
St.Croix Paper Co. let 38
Studebaker Corporation 5 I Notes

1 100,000
26,000

6s
.

361

105,000
400,000
1,000,000
375,000

Huntington Land & Improvement Co. 6 % Notes
American Rolling Mill Co. 6% Notes. .

125,000

oli,1,512000

OCTOBER:

1
1
1
1

American Locomotive Co. 5 Notes
Canadian-Puget Sound Lumber Co., Ltd., 6

Indian Refining Co. 1st 6s
John Scullin Co. (St.Louis)

Bonds .

% Notes

1,000,000
125,000
200,000
900,000
0.

NOVEMBER:

1
1
1
1
1

Bishop-Babcock-Baker Co. Coll.Tr. 6 % Notes

200,000
500,000

Cleveland Cliffs Iron Co. Coll.Tr. 6 % Notes .
Federal Sugar Refining Co. 3 Notes

Long Bell Lumber Co. 1st & Refunding 6 % Bonds

Union Oil Co. of California Coll.Tr. 6 / Bonds

Pittsburgh Coal Co. Equipments

2,500,000
. .
. .

300,000
430,000
32,000
00,2, 000

DECEMBER:

1
1
1

1
1
1
1
1
1

Agricultural Credit Co. Coll.Tr. 5 % Notes) "B"
American Malting Co, lot 6s

Concordia Land & Timber Co. lot Mtge 6 Bonds . .
Empire Stool & Iron Co. Coll.Tr. 6 % Bonds
J.I.Case Threshing Machine Co. 6 % Bonds
Glidden Varnish Co. 1st Mtge 6 % Bonds

Iroquois Iron Co. let Mtge

% Bonds

Standard 011 Cloth Co. 6 % Notes
United States Envelope Co. 1st Mtge 5 % Bonds.
Tennessee Copper Co. let Mtge 6 Bonds

1,800,000
2,834,000
25,000
50,000
1,500,000
25,000
128,000
100,000
.50,000
200,000

4,7/,1#000

CORPORATION BOND AND NOTE MATURITIES

1915

JANUARY:

1
1
1

Texas Company 1st Mtge 6 Notes,
Montreal Tramways and Power Co. 6 % Notes
Wm. Cramp & Sons Ship & Engine Building Co. 5

$ 300,000
1,350,000
T.

Notes

140,000

CORPORATION BOND AND NOTE MATURITIES

PUBLIC

UTILITIES

1914

SEPTEMBER:

Union Natural Gas Cornoration Coll.Tr. 6,1

$ 300,000
46,000

Hudson & Manhattan RR Equipmenta

3)4 oov

OCTOBER:
1
1
1
1
1
1
1
I
1

American Gas Co. Coll.Tr. 6s
Boston-Virginia Transportation Co. 1st Marine Eq. 6s
California-Idaho Co. 1st Coll.Tr. 5s
Milwaukee Coke & Gas Co. let 5s
Niagara, Loc#port & Ontario Power Co. 6
Notes. .
Paterson (N.Z.) Ry Second Gera Mtge 6
Bonds. . .
Second Avenue RR (N.Y.) 5 cb Receiver's Ctfs
United Water & Light Co. Coll. 6 To Notes
West Side RR (Elmira,N.Y.) let Mtge 5 T. Bonds. . .
Chesapeake S. S. Co. Equipments

Cincinnati Traction Co. Equipments

1,300,000
30,000
400,000
80,000
900,000
300,000
3,140,000
200,000
355,000
30,000

27,0"

Hudson & Manhattan RR Equipments

Merchants & Miners Transportation Co. Equipments
/ /Area-J.,

23,000
100,000
too, coo

goem000

NOVEMBER:

Delaware County Gas Co. lst Mtge

Northern Ohio Traction & Light Co. Coll.Tr. 60

5s
.

20 Appalachian Power Co. Cony. 6 /. Notes

21- 1°,

,,to-.)

200,000
100,000
300,000
too, oo0

4+449.0i00

DECEMBER:
1

Sacramento Valley Irrigation Co. lot Mtge 6 T. Bonds.
American Refrigerator Transportation Co. Equipments.
Mather Humane Stock Transportation Co. Equipments. .

489,000
81,000
7,000

?4/ "D

dim4T

03.1-

cc
90 .9, Ge

fit

"rj r7q 00

,ORIV, 62

MEMORANDA
for Mr. Strong
DEPARTMENT

Nov. 10, 1914.

Miss Walker asks me to send you bill for getting out the additional
copies of the mort,of.'the,sgecial bankers' gpmmi,t09.
This work was died
in small sections among the stenographers
here and was completed on Saturday morning.
While the girls hustled pretty
lively, practically no extra time outside of regular hours was put in upon
it, except by Burrell and myself, who worked until about six o'clock S turday
evening, comparing, correcting and assembling the pages.
The job, if done by a commercial office, would cost about $40.00,
exclusive of stationery.
This is simply for information, in c6se you absolutely want it.
No one here knows of your inquiry, or expects any remuneratime
J.H.L.

(6)jatsl,_40ti_pf_t10 cieugant.

The issue of paper money, bearing the

Jaleation of the Government, must be exaedned in its historleal and economic aapects,

...zed, further, with reeard to the protection of the credit of the Government itself.

Discuseine enly the latter features of thie subject, ehat are the possibilitiee under
the Owen-Glees bill of difficulty or disaster as contrastedewith the aecepted plan
oommon to all the great enrapeaa nations, of a bank note issue under Government reeeeee
tian, but without the Government oblieation0 should this oyuntry boom involved in a

foreign war, a great economic disturbance, ose what is more possible, should our credit

situation be subjected to the deeturbing influenees of a great conflict between foreiem
nations, how may the demand obligationa of the Government created by the Owen bill affect

the credit at our Government?

The bill provides that the notes shall be reftemOble in gold, on amend, at
the Treaeury Ievertment of the UnItee Statee, or In gold or lawful money at any Federal
reserve bank. The bill permits the Federal *seem bank to authorize member bents to

use Federal reserve notes or notee of the National banks as reserves. Under these con,
ditions, any great enenamie disturbance in this eountry, or any worldewide disturbance

Of credit *doh num resat won this country's credit estateisbilemt, involves a dawn
to the credit of the Government, ao long as the Uovernmentfe obligation is attached to

the notes0 to the extent, in fact, that a suspension of the reserve requirements of the
regional banks as permitted by the bill might involve a suspension of epode payments
by the United States Government.

e great Airopeanemee, neseesitating huge expenditures,

would raise raga of interost in foreign countries that would reset in turn upon our banking
(system, requiring the exorcise of every possible measure, first, to retain our store of
gold; second., to the intent that it bosoms impaired, to enable the regional books to wee

their notes in laeful newt third, to

liable the eovernment to ream its lawf4 peeler

money- in gold. Will a system of reeional banks, which is the inetrument for issuing

untold millions of Govermnent obli time, be able to protect the Government in each sa

emergency, and is it nOb the duty of Ooneress to see that any legislation now enacted
'Li afford every nesse whit& can be devised to that end?' A drain upon the gold of the

teeetry in euoh anergmey woad be due to the necessary repurchase of foreiem investments,

to the interruption of our foreign oommeroe and the disturbance of the balance of inter-

national trade, to the floating of foreign loans in this market, to the withdrawal of
foreign bank credits now extended to this country, and to the imponitien upon our awn

credit establisnmeat of the berdenof financing trade which is nos lareely carried by
aesland.

sold, in this emereency, would be with:1mm through the presentation of

Federal reserve not

of the regiong banks, so lone as they were able to furnish gold

in payment, when unable to furniah gold, presumably they would exercise their right to
eay in lawful money. The demand for gold would thereby be transferred to the Gaited

Altos, by the preeontation of the leoveul money.

Thie proems might necessitate the

suspension of the reserve requirements as to the regional banks throuehont the oountry.
The ability of the eovernment to pay eold would be limited to 450,000,000 now held in

its trust fund reserve, end its ability to obtain gold from the regional banks.

whet progress night the Governnont redeem its notes in gold if the regional banks had
suapended their reserve recogremente and the Government were forged to rely upon its omn

ability to pnrehase gold by the use of its own obligatione? The eartets of Europe would
be closed. Oar gold supply at home would be subject to inflneneeo largely oorreoponding

to those whidh now arise in this country tat ime of panic. We will have possibly 20,000

state inetitutions, eho, influonoed bo the strain and shook to the credits of the country,
emote omditions eesoribed and to the ~pension of the reserve requiseients of the
aelonal banks, will et once endeavor to atrengthen their gold reserves, and to do so
no presenting Federal reserve notes to the regional banks and demanding gold for
ehould paoment be Imule in lawful money, the demen4 would be transferred to the Government.

se'

1114510

Our cistam for many years will be unable to overcome the influence of the prOOess of

beerding on the part of State institutions which are not edbjeot to Federal control or
to the influenoe of regional bunks.

As oontraeted with this condition, if the notes are the obligatio# Of a central
bank, the absolute saspension of reserve requiremonts Gould be made witheut involving

the *relit of the United Slates for the esdemption of the notes, sod the last wesort
of banking practice could be safely employed before ouspension of payment in gold would

be forced upon the eeverneent. The United States is alremq obligated for the redemption
on demand in gold of a eUm of paper monev Greater than the entire funded debt of the
Uoverunent.

Why add to the peel? Why offer gratuitous/y the credit of the United States

atm it is not required? Why create a note isame with a redemption fund hardly more than
one-half of the amount *doh experience allows to be required in Bumps, aild then attempt
to oure its defeats by the endormemeat of the Oeffernment?

..ahef"i
6423,4-Peer

eel Ic
SITUATIOR Ili THE FEDERAL RESERVE BOARD

The preeant membership in the Federal Reserve Board consists of:
Governor Harding - Birmingham (Atlanta Federal Reserve District)
Mr. Platt
- Poughkeepsie (New york Federal Reserve District)
Mr. Miller
- San Francisco (San Fran. Federal Reserve District)
MT. Hamlin
- Bost, (Boston Federal Reserve District)
Mr. Rich
Cleveland (Cleveland Federal Reserve District)
And Two ex-officio members, the
Secretary of the Treasury, and
Comptroller of the Currency.
The Secretary of the Treasury retires

The Comptroller

March 4,

of the Currency holds a recess appointment which has never

been confirmed by

the Senate, and a bill has recently been introduced and is now in committee
to abolieh the office of the Comptroller of

the Currency and

functions of that office to the Federal Reserve Board.

transfer the

Governor Harding, it

is stated, has expressed his willingnecs to accept the presidency of another
corporation.

Mr. Rich has been apeointed temporarily to fill a vacancy

and expects shortly to leave to fulfill his work as Federal Reserve Aeent
and Chairman

abolieh

of the Federal Reserve Bank of Cleveland.

the office of the Comptroller of

the

The legislation to

Currency eontemplatee appoint-

ing two new members of the Board in place of the Secretary of the Treasury
and the Comptroller of the

Currency, neither of shorn would,

thereafter,

be ex-officio members of the Board (thie I regard as a mistake as to the
Seoretary of the Treasury).

The situation in the Federal Reserve Board is, therefore, as
follows:

on March

There are likely to be three and possibly four vacancies

Of the

three members remaining,

Platt is a new member,

appointed during the past year, and, of course, less familiar

of the

with the

Board than others.

Appointments to the

Federal Reserve Eoard are required to be

work

Situation in the Federal Reserve Board.

repres,,ntative of the various sections of the country, geographically and
with due regard to the business and eoonomic interests of the different
karts of the country, and no two members may be apkointed from the same

Federal Reserve District.

Dictated but not Read.

ve C6,47 )?

SITUATIOB IN TUE TREASURY.

Since the ending of the war the organization of the Treaeury

has been gradually

disbanded, men who

were serving from motives of

patriotism having resigned to resume their regular occupations.

This

includes such men as Assistant Secretary Leffingwell, Astistant Secretary
Rathbone, Assistant Secretary Davis (now in the Department. of State), all
of the members of the -liar Loan Organization and the War Savings Organiza-

tion, and others who were there

The only two left

doing special work.

in the

Department, who were brought in to

assist during the war, are Usistant Secretaries Gilbert and Kelley
(salaries $5,000 each) whose promotions to the offices of Assistant
Secretaries resulted from the resignation of their superior officers,
Mr. Leffingwell and Mr. Hathbone, respectively.

These men, I

understand,

hold recess appointments.
In addition, Messrs Broughton and Hand (salaries $8,000 each)
who are old Treasury Department employee, are a..so likely to retire, as
they, together

with

Assistant Secretaries Gilbert

and Kelley have more

lucrative positions offered them in private life.

It may be that

Messrs Broughton and Hand could be retained if their appointments were
confirmed promptly.

regarded as

These four men are the only four who might be

indispenmable, by reason of their knowledge and experience

throughout the period of the war.

The Treasury Department has always been undermanned, and
particularly as to men in more important positions.

me, with the expiration of the
not only without a head, but

present

with

It will appear to

Congress, the Department

will

no responsible person there having a

Situation in the Treasury.

continuous knowledge of the affairs of the Treasury.

This is a serious

handicap to any new Secretary of the Treasury, and should be considered in
connection with the appointment.

(Dictated but not read)

FEDERAL RESERVE BOARD

Confidential,:

It seams desirable to elaborate an earlier memorandum on the subject of the
Federal Reserve Board.

The preeent membership of the board Consists of;
*HONORABLE DAVID F. HOUS1ON, Secretary of the Treasury,
March 4, 1921
Retires
*HONORABLE JOHN SKELTON WILLIAMS, Comptroller of the
March 4, 1921
Currency; Retires
contemplated that the office of
or earlier.
It
the Comptroller of the Currency may be abolished

under legielation now pending.
HONORABLE h. P. G. HARDING, Governor, Birmingham (Atlanta
Federal Reserve District), Democrat.
Term expires
August 10, 1922
Governor Harding now has under consideration an
important position with a new corporation just
organized.
HONORABLE EDMUND PLAIT, Poughkeepsie (New York Federal
Reserve District), Republican.
October 26, 1928
Term expires
Mr. Platt recently was a member of the Rou,_e of
Repreeentatives and served on the Committee on

Banking and Currency, his membership on the
Federal Reserve Board dating only from

May 28, 1920.
HONORABLE CHARLES S. HAMLIN, boeton (Boston Federal Reserve District), Democrat.

ettlblithiLeitt" 10, 1926
&rWRrteBad
HONORA
tSan Francisco, (San Francisco
Federal Reserve District), Democrat.
Term expires
AUgust 10, 1924
He been a member of the Federal Reserve boird
since its establishment.
HONORABLE D. C. WILLS, Cleveland (Cleveland Federal Rea
serve District), Republican.
Term expires
Interim Appointment
Mr. Wills was appointed temporarily to fill a
maeanoy in the Board and expects shortly to
resume his office of Federal Reserve Agent and
Chairman of the Board of Directore of the Federal Reserve Bank of Cleveland.
* These two are ex-officio membere of the board.
It will be observed that at an eariy date there will be three and possibly
four vacanoiee in the Federal Reserve

Board.

These vacancies must be filled by a

Federal Reserve Board

presioent

just

taking office, who will not have the benefit of the advioe of a

secretary of the treasury who has been conversant
Treasury Dopartment and the Federal Reserve Board.

with the policieo and ailfairs of the

Section 10 of the Federal

Reserve

Act contains the following provisions respecting the aepointment and qualifications of
the members of the Federal Reserve Board:
"A Federal Reeerve Board is hereby created which shall conthe Secretary of the Treasury and the
Comptroller of the Currency, who shall be members ex officio, and five
memb,ra appointed by the President of the United States, by and with
the advice and consent of the Senate.
In selectine the five appointive
members of the Federal Reserve Boara, not more than one of whom shall
be selected from any one Federal reserve diLtrict, the President shall
heve due raacI to 4 fair representation of the different commercial,
industrial and geographical divisions of the country.
The five members of the Federal Reserve Board aepointed by the President and confirmed as aforesaid shall devote their entire time to the business of
the Federal Reserve Board anc shall each receive an annual salary or
12,000 payable monthly together with actual neceeeary traveiine expenses, and the Comptroller of the Currency, as ex officio member of
the Federal Reserve boere, shall, in Weldon to the salary now raid
him as Comptroller of the Currency, receive We sum
annually for his servicee as a member of said boaro.
"The Secretary or the Treasury and the Comptroller of the
Currency shall be ineligible durine the time they are in office and
for two }Jean.; thereafter to hold any office, position, or ameloyment
The apeointive members of the Federal Reserve
in any member bank.
Board shall be ineligible, during the time they are in office and for
two years thereafter to hold any office, position, or emeloymunt in any
member bank, except that this restriction shall not seely to a member
who has served the full term for which he vies aekointed.
Of the
'five members the appointed by the President at least two shall be
persons experienced .in tanking or. finance.
One shall be deeieneted
by the President to serve for two, one for four, one for six, one for
eieht, and one for ten years, and thereafter each member so appointed
shall serve for a term of ten years unless sooner removeu for cause
by the President.
Of the five persons thus appointed, one shall
be designated by the President as eovernor and one as vice overnor
of the Federal Reserve hoard. The governor of the Federal Reserve Board,
subject to its supervision, shall be the active executive officer. The
Secretary of the Treasury may assign offices in the peeartment of the
Treasury for the use of the Federal Reserve board. &ach wester of the

sist of seven members, including

of 0,000

Federal Reserve board shall within fifteen days after notice of appointwent make and subscribe to the oath of office.
*

"The Secretary of the Treeeury shall be ex officio chairman of
the Federal Reserve Board. No member of the Federal Reserve board shall
be an officer or director of any Lank, bankine institution, truet company, or Federal reserve bank nor hold stock in any bank, Lankire inAitution, or trust comeany; and before enterine upon his duties as a member

Federal Reserve Board (i)

of the Federal Reserve Board he shall
Secreteryebf the Treeeury that he has

certify under oath to the
complied with this requirement.
Whenever 'a vacancy shall occur, other than by expiration of term,
among/the five members of the Federal Reserve board appointed by the
President, as above provided, a successor shall be appointed by the
President, with the advice and consent of the Senate, to fill such
Vacancy, and when appointed he shall bold office for the unexpired
term of the member whose place he is
"The President shall have poeer to
my happen on the Federal Reserve board during the recess of the
Senate, by granting commiezions which ehall expire thirty days after
the next session of the Senate convenes."

selected to fill.
fill ail vacancies that

The important considerations affecting appointmehte to fill vacancies in

the

Federal Reserve Board should be the following:

That the eppointees should be men of mature banking experience
Judgment, with knowledge of finance and economics, and in a

and

broader bens. than is general among our bankers.
That the appointees should be so 're of political activities as
to insure the continuance of the present policy contemplated
by the Federal Reeerve keet.that the Board should be strictly
nonepolitice4.
That the appointees should be representative of the whole
country, both geographically and economically.

As the President-Elect will have no opportunity to confer with a secretary

of the treasury who is familiar with the traditions of

the Beard and

the experience of

the war period, it seems most important that those who are familiar with these matters

be at least given opportunity to express their Oews, and more especially Governor
Harding.

His record has been so sound and courageous during his term of office as

governor, which is

doubtless as difficult a

period as the reserve system is likely

to meet for a long time, it is important that he should not only
the Board, but the

Governor of the

Board.

remain a member of

Ho has an important position under con-

sideration, but has not accepted it, and, I believe, would not accept

it could he be

assured of continuing his precent work for the balance of his term as a member of the
Board.

Inquiry just made discloses the same character of independence oi
in political matters

that he hae shown in

financial matters.

thought

Notwithstanding the

Federal Reserve Board (4)

fact that he was born and spent his life in the South, and might be classed as a
Democrat, he voted for McKinley in 1898 and 1900, for Palmer in 1904, in 1906 he was

unable to vote, he voted for Olson in 1912 and did not vote in 1916 ,)r 1920.
As Governor Harding will, in any event, remain a member of the Board, and

Governor, for some months after March 4, he will be in position to advise in these

important matters in case his advice is desired.

BS. ED

(2.8.21)

4.&i
(.71_
041,44_

"-pi?

Cice-1,

I "7

%).12.-17--,a
413

LAP"

0;1:0 a r.evt fittintl t 11rote in reeeruition

Ame:eica is to
4,1

1 I.

ther-

',1q,.-;;',41) tAZis

f7.,,r,

i1a1 hfwe conforzed, the highezt honvr

Tran-, Lelgium ana

tcv-tIrioalr.1 of the people
of hie OW3 CountrzFt -:4mbelir1rz their admiration 'anti etIteon. iz to

--non

taitatinpul,5heA cortt ana

Art-..crials

i.oh iz nertC;:t.ptain

tal::e an .orOzrinr, tnd. vont zuavioio3la f:exi

be moot rratc:fully tonroeiatea by hi,
s
il,
encr
toP'-t'1"1."1 ", PF%-ti l'art%.osi-fl

Linclberchls koart axi

it)

14'

S+

e .1. 4,t

wad ns a memorial to hint

the Iiborh Aviation Tollaation for tto

promotlea aad aevnlopNent of the solenee or aviation.

Lth erh

noeosflaZy to create tho

The funa

vintien ?ctIndfit.lon

pol7a15),r ciabzorition thrmhont the Vnited r,Stnter.0

rill be r2icet1 by

Cain Lialdbh .111 he trJnfjerea to ponition of General
Diroetw of the Fclxnat.len.

It is
Captain,

'IMnYld tk) have :2:r-eli1er,t Coon,forEn11:7

LI:,laborhs. 117:to-ahl2 retr4rns of the

eptabliment of the

Lind.bolk Avition Fcanatioll ae the szentane=7 roaonition by
the :people of the l'Atited,ten of his vl.!exvolous1 aac=plizkintl,
I f:31,7 Cf...

0 1,

',Li,

c.et.i.v," or t7Ae

Irhe-

Lianor4,11 Aviaticn

L1 be

It1C

i,r;ZiOOQe,

nyaelqi

eu;a buy.

7,31:1.n.c t'Aat

C.1.

E=;;;.41

Idoaa ana

Cevtain

aof th.o

fakItureil in ,,2)007-dawo
d

OT:31,,mesf,

'211-0 plaqe

IcA113

5t. 7,-oin Char:ler of

ad O.

vLo

at, 4-1.,
.

t.,14

"'"

11.-,-,

+7,

Lau1:1
13.

f)-

0
many ethez frienasc Captnin T,Inabergh, llon. Dwight il, Daylx,
CiLt.:::;e, oC tl:la cntire
eepatary of -Z4-.tr ltas 0011,0Cie,d;Wlto tilke
ry;ttQr0

solootion

Z te ecrotary

Thr fo7' this -11-,:r1.:cf..7ie i3

efi?e,31%l2y anil.roDriatc- in Vic; 0:r to
Of.fieer in the. Vaii.x.,d1

tat

A7;117
factROrVe

arid a

111.f.if3OUri :ZedOrtfa.

it,

b7 the 3ecretary oT

GOrtYlittiV, t121 be
1,:ar

to c,,oncrate

t"cs p

S.,

jcct

caotaile

to the, OlVatlift 1011 of the 2-i1neibc1T,-h .wlation rowT3,at1ona.

It Lo 1,11-e1y that the l'aztevlr.tioa will be-

5:f1C.)017.102T-7,11-ett bjCrteel,A1

Mt of Conzroal:i,ns 217,-on aa it convonoau

Az the Lind.berfil Aviation .Vaunatitinn: will reTrwont a testi.,
ii1t States
tionIQ.to Ga.7-itain lArtabore.11 by al tho pepit o

oontrPluticra of ur.al frlotintz from agrcat nmlber of mn, vonen
ana ol-,i1fIren aro aclAred rather tIL7-..'o, 1:1:000 al.a=nts- 171.,o1,.-1 a tow,
Captaka .1..,111(Iber4,71-1 !la:3 rfYfaisoll, my-zit t,,,:saLrtiri.I of-.SVra, to go into,

the FlaViC2 or Ca the tatc,77-;f:10 azya

hi,r3 1.-.".r.I13.15.,;:if.,17.-mz3,-to

hic inte112,r.4 irltOreZt

commerc1al:1,2:e hin

In ai2 titui,1 Ltn CATN:010142;tt,

It
life,

cl'Iginny to IltLvo
to

iit o

-it5 rtts,

wIth a
vf ar ti-zt
'

nc7:, br.inefit or 7=ri*-A.c.c:,

ktilaA

in6un,:t fro

infeled the

tl;

1:1v.'o the. if*cmc frc,n the

b4-,nZ!r1. ; hisr

cnitato

-tn,1

'ZI:1./111

.1-1

tLicabled

rtca,.-La a .z!:,4zilt3

az. vi:.q.1 as .g.oe

0.71-

4,1

coanilat of. fa-4,;;Deptl orv1. outri:ago Etri,t1

-1,rizes to provoto the devolont an a,vaneenDrit of tloronautis.
.:Tanee aIT'eaelyhrla a Glrdlar ft.tisai. in the Calane do .;ooeuro

1..q.c1 to that oratlitin that -Claptain
Linlborgh [3:1,ve tne 15-0,900 tx,o dontoa to tan in alanee for a
ou? in commonoration of his groat aahlavement dlioToxing ththe
do

A$ronautic.:ue.

vantea tho money.u.-.15ed, for tho bgaoVt cf t:re faTillis of Freneh
aviator o who ahave laUt '1o7.-21 their 1:7.vo3 fw, the progreau of
avilatiorV.

It in (leoted tbat a very tT;:tenntirl ano-=nt vi-171 bo ralsea
ia in ne sem* to ba
rithout any erearazea effort..
rt

ittyz.3c.-;.53 caly ,n,:!oefz=ry to v.rratra faeilltion to

f)mble the A.,,:leriean rif)opIo to erecla their deop wapreeistiou oZ

Captala Maaberel,aIrith1c ocuyao z="Jlolvonlortal aohlovent,
on t,f,-,.b1.4. r3!-'1,1 RI'

if3 P7,77,..7.1anent,

rt3ertOri al to Iliac

fz,--aCt

onliot the cooDa.ration of,tha Cavernevs
IZtvova4 Otha dift'oriat state-zi. z14a lar,sov

jthi

rze-

fr.,w Yor:i.**

o4orner of tho feaoral ronrvo

,conw7,,?1Sed to cot au uo;,.leral Trarsnrer of t!11;. ,. fond.o.

o-PfeetrA an rt..can

crY1

ana kee.ning

recor-1 efa71.1 :ffubzI]-17:)tiem..3.
ore_tayn.:;

bla

r..

y.a'!::.7-10 to '''Linntavo

7-z.;.'antionn an), t=t diret-"- to :Eon..
Oavernor

Yor:L7

;',nauT:gf.a mar
t720,

thl)IIC

f;ov.c.riLt'...;tv-on,7.7. or to lcaal

t-a ..,A7='2 trio t!amto

zrri jhn C p0crait

Almoanoer,ent vill 'aa.maae at onoe reupeating arranetmentz
.3(71rW7atnd with t.11.666.vrnol'n of othtvkorailieeorvo Dari154 givinp

the inamouof thoz who will. flot as Woasurol'a in the wArious oit1o3
au regara5 viulous otlaak"
vauro a 7i?caervo Ban? 13 loW2,dz
aotc,,,11

now being co:nsummatorl.

etttE2,-,

(111

r
C-t:

/4..12
-

(.7

uti_
.

U1? ," ,r)

-101_,C7,4

1,-,),

CZ-z,

a77..1

Full text of Papers of Benjamin Strong, Jr. : Correspondence with the Federal Reserve Bank of New York : Miscellaneous Memoranda, 1914-1927

FRASER